Following transactions were recorded in the books of Kayumba Traders (KT) in February 2015:
a.
Stocks costing TZS 800,000 were sold to customers at a margin of 20%o on sales. 70 % of the sales were made to customers on one month's credit and the balance on cash.
b. Stocks worth TZS 60,000 were purchased on two months credit.
Bad debt of TZS 10,000 was written off. No provision had been made before the write-off.
C.
d. A new partner Mr Saitoti was admitted to KT's business. Mr Saitoti brought TZS 150,000 as his capital and TZS 65,000 as his share of goodwill.
e. Stocks bought from a supplier amounting to TZS 5,000 in January 2015 had been posted to the credit of his account as TZS 50,000. The difference in trial balance was entered in a
sUspense account. The error has now been rectified.
f.
Borrowed TZS 200,000 from the bank at a 12 % mark-up.
Required: Show the effect of each of the above transactions in the form of an accounting equation.

Answer rating: 100% (QA)

a Stocks worth TZS 800000 were sold to customers TZS 800000 w... View the full answer