The following is a list of transactions that could affect different portions of the balance sheet: a. Purchased office furniture and fixtures partly for cash and partly on account. b. Rent on office and warehouse not paid for the past year. c. Rent on office and warehouse for 2012 and 2013 fully paid in March 2012. d. Received the sum of N20,000 from a customer who has placed an order, but the goods have not been dispatched and would not be dispatched for another six months. e. Collected cash of N50,000 on previous sales made on account. f. Sold goods on account. g. Paid a supplier for purchases made three months ago. h. Purchased goods on account. i. Sold goods for N40,000; received cash of N20,000 and the balance due in thirty days j. Purchased new office equipment on account. k. The sole proprietor makes a personal contribution of cash towards the running of his business. l. A loan of N400,000 is obtained from the bank to aid the business in a major project. Required: Draw up three columns (1,2and 3) on your answer sheet and put the headings: 1. Total assets 2. Total liabilities 3. Owners equity Put the number (a) to (l) on the margin of your answer sheet, then indicate the net effect of each transaction on each group of accounts by the use of any of these phrases: no change, increase, decrease. QUESTION 2 SOLUTION Total assets Total liabilities Owners equity a b c d e f g h i j k l