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The trial balance of Ralf Traders for the current financial period ending 28 February 20.19, reflected salaries and wages to the amount of R130 000.
The trial balance of Ralf Traders for the current financial period ending 28 February 20.19, reflected salaries and wages to the amount of R130 000. The bookkeeper of Ralf Traders compared the salaries and wages of the previous financial year with the salaries and wages of the current financial year and noted that the salaries and wages for the current financial year have increased by R20 000. According to the bookkeeper's knowledge, there were no new appointment, no resignations, no salaries and wages increases, no leave days' pay-outs and no bonuses were paid during the current financial period. Therefore, salaries and wages for current financial period should be the same as the salaries and wages of the previous financial period. After a thorough investigation by the human resources manager, it was noted on the 28 February 20.19 payroll, that one employee was paid R22 500 instead of a monthly salary of R2500 for the month of February 20.19. Instead of requesting the employee to pay back the extra amount of R20 000, the human resource manager and employee agreed that the extra salary is the payment for the next eight months. No adjustment journal entry has been processed by the bookkeeper in the accounting books of Ralf Traders. The effect that the adjustment journal entry will have on the basic accounting equation of Ralf Traders for the year ended 28 February 20.19 will be? The trial balance of Ralf Traders for the current financial period ending 28 February 20.19, reflected salaries and wages to the amount of R130 000. The bookkeeper of Ralf Traders compared the salaries and wages of the previous financial year with the salaries and wages of the current financial year and noted that the salaries and wages for the current financial year have increased by R20 000. According to the bookkeeper's knowledge, there were no new appointment, no resignations, no salaries and wages increases, no leave days' pay-outs and no bonuses were paid during the current financial period. Therefore, salaries and wages for current financial period should be the same as the salaries and wages of the previous financial period. After a thorough investigation by the human resources manager, it was noted on the 28 February 20.19 payroll, that one employee was paid R22 500 instead of a monthly salary of R2500 for the month of February 20.19. Instead of requesting the employee to pay back the extra amount of R20 000, the human resource manager and employee agreed that the extra salary is the payment for the next eight months. No adjustment journal entry has been processed by the bookkeeper in the accounting books of Ralf Traders. The effect that the adjustment journal entry will have on the basic accounting equation of Ralf Traders for the year ended 28 February 20.19 will be
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