2. Practical bases questions (Basic Accounting Equation) The following information was obtained from the accounting records of Ace Traders Jan 2021 and the perpetual inventory system is in use 1. The owner deposited R100 000 to start off his business. R60 000 was from his savings and R40 000 from a loan he personally acquired from the bank 2. Bought a trailer for R40 000 paid a deposit of R10 000 and the balance is still payable 3. Purchased merchandise of R50 000 on credit from Bulk Traders. 4. Paid R2 000 carriage cost on merchandise bought from Bulk Traders 5. All merchandise acquired from Bulk Traders was sold for R80 000 and only R60 000 was received and balance receivable in 30 days 6. Paid R20 000 on his loan 7. Settled the money owed to Bulk Traders and received 10% early settlement discount 1.2 Show the Effect of these transactions on the basic accounting equation No. Assets = Owner's Equity + Liabilities
2. Practical bases questions (Basic Accounting Equation) The following information was obtained from the accounting records of Ace Traders Jan 2021 and the perpetual inventory system is in use 1. The owner deposited R100 000 to start off his business. R60 000 was from his savings and R40 000 from a loan he personally acquired from the bank 2. Bought a trailer for R40 000 paid a deposit of R10 000 and the balance is still payable 3. Purchased merchandise of R50 000 on credit from Bulk Traders. 4. Paid R2 000 carriage cost on merchandise bought from Bulk Traders 5. All merchandise acquired from Bulk Traders was sold for R80 000 and only R60 000 was received and balance receivable in 30 days 6. Paid R20 000 on his loan 7. Settled the money owed to Bulk Traders and received 10% early settlement discount 1.2 Show the Effect of these transactions on the basic accounting equation No. Assets = Owner's Equity + Liabilities
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1z
![2. Practical bases questions (Basic Accounting Equation)
The following information was obtained from the accounting records of Ace Traders Jan 2021 and
the perpetual inventory system is in use
1. The owner deposited R100 000 to start off his business. R60 000 was from his savings
and R40 000 from a loan he personally acquired from the bank
2. Bought a trailer for R40 000 paid a deposit of R10 000 and the balance is still payable
3. Purchased merchandise of R50 000 on credit from Bulk Traders.
4. Paid R2 000 carriage cost on merchandise bought from Bulk Traders
5. All merchandise acquired from Bulk Traders was sold for R80 000 and only R60 000
was received and balance receivable in 30 days
6. Paid R20 000 on his loan
7. Settled the money owed to Bulk Traders and received 10% early settlement discount
1.2 Show the Effect of these transactions on the basic accounting equation "
No.
Assets =
Owner's Equity +
Liabilities](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa680a0be-db6e-4163-bee7-701869cacca8%2F1bc19341-1897-44f5-aad8-add33a88411b%2Fnwdxlo4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. Practical bases questions (Basic Accounting Equation)
The following information was obtained from the accounting records of Ace Traders Jan 2021 and
the perpetual inventory system is in use
1. The owner deposited R100 000 to start off his business. R60 000 was from his savings
and R40 000 from a loan he personally acquired from the bank
2. Bought a trailer for R40 000 paid a deposit of R10 000 and the balance is still payable
3. Purchased merchandise of R50 000 on credit from Bulk Traders.
4. Paid R2 000 carriage cost on merchandise bought from Bulk Traders
5. All merchandise acquired from Bulk Traders was sold for R80 000 and only R60 000
was received and balance receivable in 30 days
6. Paid R20 000 on his loan
7. Settled the money owed to Bulk Traders and received 10% early settlement discount
1.2 Show the Effect of these transactions on the basic accounting equation "
No.
Assets =
Owner's Equity +
Liabilities
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education