The following transactions during January 2020 relate to County Traders: ...
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Accounting
The following transactions during January 2020 relate to County Traders:
Date
January
Details
Amount
(R)
01
Paid for rental of equipment.
500
04
Purchased a vehicle on credit from Sevenoaks.
24 000
06
Received partial payment from debtor, Kent.
2 000
08
The owner pays with a business cheque for personal expenses.
Withdraws money for personal use.
1 200
800
10
Paid creditors.
12 000
12
Rendered services on credit to Surrey.
4 000
15
Issued a credit note to Surrey for unsatisfactory services.
200
20
Cashed cheque 111 for: Telephone
Wages for the month
150
900
Required:
Show the effect of the above transactions of R Red on the accounting equation. Use + to denote an increase, - to denote a decrease and 0 to denote no change to the elements of the equation. Present the above transactions in the following format:
No.
Acc debit
Acc credit
Assets
=
Equity
+
Liabilities
e.g.
Bank
Sales
+200
+200
0
Answer & Explanation
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