Ubuntu Enterprises is a budding business that has just been launched in the vibrant and bustling city of Durban, South Africa. The company, owned by the industrious and ambitious Mr. Mkhize, is stepping into the challenging but rewarding world of commerce with a vision to provide quality cleaning services to its customers. The journey begins in May 2023, the month the enterprise is formally established. The following are transactions that took place in the first month of operations. May 1, 2023: The owner, Mr. Mkhize, invests R500,000 into Ubuntu Enterprises. May 2, 2023: Ubuntu Enterprises takes a long-term loan from ABSA Bank for R700,000. May 3, 2023: Ubuntu Enterprises purchases office furniture for R120,000 cash. May 5, 2023: Ubuntu Enterprises purchases a van for R300,000, paying R50,000 upfront and promising to pay the rest in monthly instalments. May 8, 2023: Ubuntu Enterprises purchases equipment for R200,000 on credit from a supplier, Makro. May 9, 2023: Ubuntu purchases cleaning supplies worth R20, 000 via EFT from Takealot May 10, 2023: Ubuntu Enterprises makes a R20,000 down payment to Makro towards their account. May 31, 2023: Ubuntu Enterprises makes its first sales, providing cleaning services worth R60,000 for cash. Record the transactions above in the basic accounting equation. Show the account debited and credit. Use the format below. e.g Bought a vehicle for R 5 000 on credit. Assets Equity +5 000 Date June 30 2 Liabilities + 5000 Acc Debited Acc Credited Vehicles Creditors
Ubuntu Enterprises is a budding business that has just been launched in the vibrant and bustling city of Durban, South Africa. The company, owned by the industrious and ambitious Mr. Mkhize, is stepping into the challenging but rewarding world of commerce with a vision to provide quality cleaning services to its customers. The journey begins in May 2023, the month the enterprise is formally established. The following are transactions that took place in the first month of operations. May 1, 2023: The owner, Mr. Mkhize, invests R500,000 into Ubuntu Enterprises. May 2, 2023: Ubuntu Enterprises takes a long-term loan from ABSA Bank for R700,000. May 3, 2023: Ubuntu Enterprises purchases office furniture for R120,000 cash. May 5, 2023: Ubuntu Enterprises purchases a van for R300,000, paying R50,000 upfront and promising to pay the rest in monthly instalments. May 8, 2023: Ubuntu Enterprises purchases equipment for R200,000 on credit from a supplier, Makro. May 9, 2023: Ubuntu purchases cleaning supplies worth R20, 000 via EFT from Takealot May 10, 2023: Ubuntu Enterprises makes a R20,000 down payment to Makro towards their account. May 31, 2023: Ubuntu Enterprises makes its first sales, providing cleaning services worth R60,000 for cash. Record the transactions above in the basic accounting equation. Show the account debited and credit. Use the format below. e.g Bought a vehicle for R 5 000 on credit. Assets Equity +5 000 Date June 30 2 Liabilities + 5000 Acc Debited Acc Credited Vehicles Creditors
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ubuntu Enterprises is a budding business that has just been launched in the vibrant and bustling city
of Durban, South Africa. The company, owned by the industrious and ambitious Mr. Mkhize, is
stepping into the challenging but rewarding world of commerce with a vision to provide quality
cleaning services to its customers. The journey begins in May 2023, the month the enterprise is
formally established.
The following are transactions that took place in the first month of operations.
May 1, 2023: The owner, Mr. Mkhize, invests R500,000 into Ubuntu Enterprises.
May 2, 2023: Ubuntu Enterprises takes a long-term loan from ABSA Bank for R700,000.
May 3, 2023: Ubuntu Enterprises purchases office furniture for R120,000 cash.
May 5, 2023: Ubuntu Enterprises purchases a van for R300,000, paying R50,000 upfront and
promising to pay the rest in monthly instalments.
May 8, 2023: Ubuntu Enterprises purchases equipment for R200,000 on credit from a supplier,
Makro.
May 9, 2023: Ubuntu purchases cleaning supplies worth R20, 000 via EFT from Takealot
May 10, 2023: Ubuntu Enterprises makes a R20,000 down payment to Makro towards their account.
May 31, 2023: Ubuntu Enterprises makes its first sales, providing cleaning services worth R60,000
for cash.
Record the transactions above in the basic accounting equation. Show the account debited and
credit. Use the format below.
e.g Bought a vehicle for R 5 000 on credit.
Date
Assets
June 30 +5 000
2
Equity + Liabilities
+ 5000
Acc Debited Acc Credited
Vehicles Creditors
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