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For each transaction show the double entry (debit and credit general ledger names), as well as the effect on the accounting equation in the columns

For each transaction show the double entry (debit and credit general ledger names), as well as the effect on the accounting equation in the columns

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Good day , please may you assist with this question , please also look at the second image , the +/- signs need to be shown
Question 1 Geranium Traders is a clothing store in Diepkloof. It is owned by Petunia Mokoena. Geranium Traders use the perpetual inventory system to record inventory transactions. Mark-up is 20% on selling price on all good sold. The business is a registered VAT vendor and trades only with registered VAT Vendors. A VAT rate of 15% applies where appropriate. The following transactions took place in the month of August 2020: NO DATE TRANSACTION 1.1 1 Owner contributed cash R200 000 1.2 3 Purchased goods for cash R10 000 excluding VAT 1.3 Credit sales to Mr Abdul R2 000 excluding VAT 1.4 Paid R345 in cash for an advert in the local newspaper 1.5 Petunia took clothing for personal use to the value of R5 000, being the cost price, excluding VAT 1.6 10 Purchased clothing on credit from PAM Clothing R6 000 excluding VAT 1.7 12 Cash sales R460 including VAT 1.8 14 Mr Ang, a debtor has been declared bankrupt. His balance owing is R3 500. Geranium Traders receives 50c in the rand owed by Mr Ang and the remaining outstanding balance must be written off. 1.9 17 Purchased clothing on credit from Cherry Clothing R4 025 including VAT 1.10 19 Debtor Mr Abdul paid R1 000 in part settlement of his account 1.11 24 Paid PAM Clothing the full amount outstanding of R12 000 and received a 10% settlement discount Q.1.1 Analyse each of the above transactions and complete the table as follows: Example: Paid R200 for Telephone Account NO ACCOUNT ACCOUNT ASSETS OWNER'S LIABILITIES DEBITED CREDITED EQUITY Example Telephone Bank -200 -200
Transcribed Image Text:Question 1 Geranium Traders is a clothing store in Diepkloof. It is owned by Petunia Mokoena. Geranium Traders use the perpetual inventory system to record inventory transactions. Mark-up is 20% on selling price on all good sold. The business is a registered VAT vendor and trades only with registered VAT Vendors. A VAT rate of 15% applies where appropriate. The following transactions took place in the month of August 2020: NO DATE TRANSACTION 1.1 1 Owner contributed cash R200 000 1.2 3 Purchased goods for cash R10 000 excluding VAT 1.3 Credit sales to Mr Abdul R2 000 excluding VAT 1.4 Paid R345 in cash for an advert in the local newspaper 1.5 Petunia took clothing for personal use to the value of R5 000, being the cost price, excluding VAT 1.6 10 Purchased clothing on credit from PAM Clothing R6 000 excluding VAT 1.7 12 Cash sales R460 including VAT 1.8 14 Mr Ang, a debtor has been declared bankrupt. His balance owing is R3 500. Geranium Traders receives 50c in the rand owed by Mr Ang and the remaining outstanding balance must be written off. 1.9 17 Purchased clothing on credit from Cherry Clothing R4 025 including VAT 1.10 19 Debtor Mr Abdul paid R1 000 in part settlement of his account 1.11 24 Paid PAM Clothing the full amount outstanding of R12 000 and received a 10% settlement discount Q.1.1 Analyse each of the above transactions and complete the table as follows: Example: Paid R200 for Telephone Account NO ACCOUNT ACCOUNT ASSETS OWNER'S LIABILITIES DEBITED CREDITED EQUITY Example Telephone Bank -200 -200
Q.1.1 Analyse each of the above transactions and complete the table as follows: Example: Paid R200 for Telephone Account NO ACCOUNT ACCOUNT ASSETS OWNER'S LIABILITIES DEBITED CREDITED EQUITY Example Telephone Bank -200 -200 © The Independent Institute of Education (Pty) Ltd 2021 21 20 For each transaction show the double entry (debit and credit general ledger names), as well as the effect on the accounting equation in the columns provided in your answer book. Ensure you use the + and – signs to show the effect on the equation as marks will be allocated for these. Round off to the nearest Rand.
Transcribed Image Text:Q.1.1 Analyse each of the above transactions and complete the table as follows: Example: Paid R200 for Telephone Account NO ACCOUNT ACCOUNT ASSETS OWNER'S LIABILITIES DEBITED CREDITED EQUITY Example Telephone Bank -200 -200 © The Independent Institute of Education (Pty) Ltd 2021 21 20 For each transaction show the double entry (debit and credit general ledger names), as well as the effect on the accounting equation in the columns provided in your answer book. Ensure you use the + and – signs to show the effect on the equation as marks will be allocated for these. Round off to the nearest Rand.
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