Indicate how the accounting equation of RT Repairs will be affected for the transactions provided below. Follow
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Question:
INFORMATION
Example
A payment was made to the municipality for the monthly rates, R1 500.
Assets Equity Liabilities
Decrease by R1 500 Decrease by R1 500 No change
Transactions
1. Services were rendered to the clients on credit, R3 000.
2. Purchased an office computer for cash, R15 000.
3. Received R2 000 cash from debtors who settled their accounts.
4. Purchased consumable items on credit, R500.
5. The proprietor of RT Repairs increased her capital contribution by providing a vehicle for business use,
R200 000.
6. Paid R900 to the "Daily News" for an advertisement.
7. Med Bank credited the bank account of RT Repairs with R200 for interest earned on the fixed deposit
account.
8. The loan account at Med Bank was settled by means of an electronic funds transfer, R10 000.
9. Fuel purchases for cash amounted to R600.
10. Received R4 000 cash from customers for services rendered.
Prepare the Asset Disposal account in the general ledger. Close off the account.
Calculate the carrying value of the equipment as at 28 February 2022.
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133255584
4th Edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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