QUESTION 3 (10 Marks)
REQUIRED
For each of the transactions below, state how the accounting equation TG Traders will be affected. Follow the example provided. Assume that the bank balance is always favorable.
(5 Marks)
Example
A payment was made to Telkom for the telephone bill of R2 000.
Assets
Decrease by R2 000
TRANSACTIONS
3(a)
3.1 The proprietor increased her capital contribution by depositing R50 000 cash into the banking
account of the business.
3.2 A payment was made to Ken Bank for a part repayment of loan, R20 000.
3.3 Purchased a laptop on credit, R15 000.
3.4 The proprietor took stationery for her personal use, R200.
3.5 Received R600 from a debtor who settled his account.
Equity
Decrease by R2 000
3(b)
REQUIRED
State the double entries (Account Debit and Account Credit) for each of the following transactions of TG Traders: (5 Marks)
TRANSACTIONS
3.b1 The tenant paid the rent of R4 000 to BG Traders.
3.b2 An electronic funds transfer (EFT) was made to Kelly Suppliers for an office desk purchased, R2 000.
3.b3 An entry for a discount allowed to a debtor who settled his account in the previous month was omitted from the records of the business, R100.
3.b4 Stationery was purchased from petty cash, R50.
3.b5 The depreciation on vehicles amounted to R60 000.
Liabilities
No change
