Record the amounts resulting from these transactions on the accounting equation. Your entries must show the effect

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Record the amounts resulting from these transactions on the accounting equation. Your entries must show the effect on the accounting equation. Comment on the financial performance and financial position of Jumpa Taxis after one month of trading.

1. J. Jumper commenced a taxi business by investing R20 000.

2. Purchased a minibus on credit, R26 000.

3. Purchased premises for R80 000 by paying R15 000 in cash and taking out a bond for the remaining R65 000.

4. Paid for inventory of petrol, R2 500.

5. Paid wages and salaries, R1 200.

6. Banked the fares received for the month, R3 920.

7. Paid an amount of R1 000 on the bond of which R800 was towards interest while R200 was towards the bond capital.

8. Bought stationery on credit, R400.

9. Paid R150 for servicing the minibus.

10. J. Jumper withdrew R200 for private use.

11. At the end of the month, the unused petrol totalled R1 000 and the unused stationery totalled R300.

12. The minibus is valued at R25 800 at cost less depreciation.

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Related Book For  answer-question

Fundamental Accounting

ISBN: 9781485112112

7th Edition

Authors: David Flynn, Carolina Koornhof, Ronald Arendse, Anna C. E. Coetzee, Edwardo Muriro, Louise Christel Posthumus, Louise Mancy Smit

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