Show how the below transactions affect the financial position of the business as represented by A = E + L. You need to clearly indicate whether the element has increased or decreased and provide the relevant amount and account that would be affected. EG. The business pays R6 333 per month for the rental of some business premises. All rentals were paid in cash during the year. No. A E %3D EG. -75 996 Bank -75 996 Rent Expense _(6 333 x 12) Please use format of table above for the below transactions The following transactions occurred in the business during the year ended 31 December 2020: 1. The owner deposited R105 000 cash into the business's bank account on 1 January 2020. 2. The business bought R450 000 worth of inventory from various suppliers during the year. 80% of these purchases were on credit and the remaining 20% were paid for in cash. 3. During the year the business paid R96 900 cash in operating costs. These costs related to goods and services that had all been used during the year. 4. The employees earned R104 000 in salaries and wages during the year. These were paid in cash by the end of the year. 5. During the year the business paid creditors R400 000. 6. The business received R1 010 000 in payments from debtors during the year. 7. The business made cash sales of R410 400 and credit sales of R957 600 during the year. 8. The cost of the inventory sold during the year was R480 000. 9. A customer had returned goods on the 15 December 2020, selling price of R2 280. The cost price was R912. The original sale had been for cash, and so the customer was refunded R2 280 in cash. The item was returned to inventory. 10. The business rents the land out. The rental is R15 200 per month. All rentals owing by tenants had been received by year-end and no amounts had been paid in advance for 2021.
Show how the below transactions affect the financial position of the business as represented by A = E + L. You need to clearly indicate whether the element has increased or decreased and provide the relevant amount and account that would be affected. EG. The business pays R6 333 per month for the rental of some business premises. All rentals were paid in cash during the year. No. A E %3D EG. -75 996 Bank -75 996 Rent Expense _(6 333 x 12) Please use format of table above for the below transactions The following transactions occurred in the business during the year ended 31 December 2020: 1. The owner deposited R105 000 cash into the business's bank account on 1 January 2020. 2. The business bought R450 000 worth of inventory from various suppliers during the year. 80% of these purchases were on credit and the remaining 20% were paid for in cash. 3. During the year the business paid R96 900 cash in operating costs. These costs related to goods and services that had all been used during the year. 4. The employees earned R104 000 in salaries and wages during the year. These were paid in cash by the end of the year. 5. During the year the business paid creditors R400 000. 6. The business received R1 010 000 in payments from debtors during the year. 7. The business made cash sales of R410 400 and credit sales of R957 600 during the year. 8. The cost of the inventory sold during the year was R480 000. 9. A customer had returned goods on the 15 December 2020, selling price of R2 280. The cost price was R912. The original sale had been for cash, and so the customer was refunded R2 280 in cash. The item was returned to inventory. 10. The business rents the land out. The rental is R15 200 per month. All rentals owing by tenants had been received by year-end and no amounts had been paid in advance for 2021.
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter3: Journalizing Transactions
Section: Chapter Questions
Problem 3AP
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Question
Transcribed Image Text:Show how the below transactions affect the financial position of the business as represented
by A = E + L. You need to clearly indicate whether the element has increased or decreased
and provide the relevant amount and account that would be affected.
EG. The business pays R6 333 per month for the rental of some business premises. All
rentals were paid in cash during the year.
No.
A
E
+
L
%3D
EG.
-75 996 Bank
-75 996 Rent Expense
(6 333 x 12)
Please use format of table above for the below transactions
The following transactions occurred in the business during the year ended 31 December
2020:
1.
The owner deposited R105 000 cash into the business's bank account on 1
January 2020.
2.
The business bought R450 000 worth of inventory from various suppliers during
the year. 80% of these purchases were on credit and the remaining 20% were
paid for in cash.
3.
During the year the business paid R96 900 cash in operating costs. These costs
related to goods and services that had all been used during the year.
4.
The employees earned R104 000 in salaries and wages during the year. These
were paid in cash by the end of the year.
5.
During the year the business paid creditors R400 000.
6.
The business received R1 010 000 in payments from debtors during the year.
7.
The business made cash sales of R410 400 and credit sales of R957 600 during
the year.
8.
The cost of the inventory sold during the year was R480 000.
9.
A customer had returned goods on the 15 December 2020, selling price of R2
280. The cost price was R912. The original sale had been for cash, and so the
customer was refunded R2 280 in cash. The item was returned to inventory.
10.
The business rents the land out. The rental is R15 200 per month. All
rentals owing by tenants had been received by year-end and no amounts
had been paid in advance for 2021.
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