Show the effect of the following transactions for the month October, 2023 on the assets, liabilities and equity (accounting equation)
12. Show the effect of the following transactions for the month October, 2023 on the assets,
liabilities and equity (
Malcom Davis on October 1, 2023 at Business Bay, Dubai.
1. Started business with cash $200,000.
2. Deposited $50,000 in a bank.
3. Purchased office supplies on credit from Milton Traders for $30,000
4. Purchased office supplies for cash $5,000
5. Borrowed cash (loan) $40,000 from Fair Deal Financials.
6. Paid Milton Traders by cheque $6,000.
7. Paid back part of the loan (Fair Deal Financials) $ 10,000
8. Cash paid as salaries of employees $30,000.
9. Furniture purchased for $20,000, paid cash
10. Withdrawn $20,000 cash from business for personal use.
11. Provided consultancy services to Mr. David on account, $25,000
12. “Business Consultancy Services” buys land for $40,000.
13. Received $ 10,000 from Mr. David by cheque
14. Withdrawn $10,000 from bank for personal use.
15. “Business Consultancy Services” paid: wages, $2,700; rent, $2,000 and miscellaneous,
$500.
|
Statement showing effect of various transactionson Accounting Equation |
||||||||||
|
ASSETS = LIABILITIES+OWNERSEQUITY |
||||||||||
|
Trans. No. |
|
|
|
|
|
|
= |
|
|
|
|
1 bl. |
|
|
|
|
|
|
= |
|
|
|
|
2. bl. |
|
|
|
|
|
|
= |
|
|
|
|
|
|
|
|
|
|
|
= |
|
|
|
|
|
|
|
|
|
|
|
= |
|
|
|
|
|
|
|
|
|
|
|
= |
|
|
|
|
15 bl. |
|
|
|
|
|
|
|
|
|
|
|
Total = |
Step by step
Solved in 5 steps
