Question 3 Marks: 30 Xolani is very creative; she decided to start a small business where she will be doing some face painting in order to keep children entertained at events and during shopping trips and restaurant visits. There is local market that runs on a monthly basis and she has decided that she will do her first face painting there as she previously noted that there were a lot of children and not much for them to do. She has decided to open a separate bank account but have asked you to assist her with keeping track of all the transactions. She incurred the following transactions in relation to the market day. Number Transaction 1 When she opened the bank account she deposited R3 000 as capital into the account to be used for business purposes. Bought face paint from Funky Art store for R2 500 and paid using the account debit card(cash). The face paint will be classified as purchases. In order to ensure that she has cash available if needed she withdrew R400 for petty cash the day before the market to be used for change and other expenses if needed. She asked two friends to assist her for the day, it was agreed that she will pay them a daily wage of R400 each via EFT after the market day. Payment was made accordingly. 5 On the day the 3 friends painted 150 faces and each kid was charged R30. This will be classified as service income in the accounting records. All transactions were cash transactions and banked on the same day. The organiser of the market charged Xolani a rental fee of R250 for the day for the stall. She paid this from petty cash. 2 3 4 6 The market day was a huge success and the friends had to call it a day when they ran out of paint in the afternoon. Q.3.1 Analyse the transactions into the accounting equation. Clearly indicate whether (25) the element will increase or decrease. Also, clearly indicate which account will be debited or credited Paying a telephone bill of R200 is used an example below: Assets Equity Liabilities EG. - 200 200 Nr + Cr Bank Dr Telephone Q.3.2 Calculate the total profit/ loss that was made. Clearly indicate profit or loss