Question
The following transactions during January 2020 relate to County Traders: Date January Details Amount (R) 01 Paid for rental of equipment. 500 04 Purchased a
The following transactions during January 2020 relate to County Traders:
Date January | Details | Amount (R) |
01 | Paid for rental of equipment. | 500 |
04 | Purchased a vehicle on credit from Sevenoaks. | 24 000 |
06 | Received partial payment from debtor, Kent. | 2 000 |
08 | The owner pays with a business cheque for personal expenses. Withdraws money for personal use. | 1 200 800 |
10 | Paid creditors. | 12 000 |
12 | Rendered services on credit to Surrey. | 4 000 |
15 | Issued a credit note to Surrey for unsatisfactory services. | 200 |
20 | Cashed cheque 111 for: Telephone Wages for the month |
150 900 |
Required:
Show the effect of the above transactions of R Red on the accounting equation. Use + to denote an increase, - to denote a decrease and 0 to denote no change to the elements of the equation. Present the above transactions in the following format:
No. | Acc debit | Acc credit | Assets | = | Equity | + | Liabilities |
e.g. | Bank | Sales | +200 |
| +200 |
| 0 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started