QUESTION THREE

$[20]$

You learnt about double entry booking and the debits and credits in chapter $1.$ ?Assume that you are presented with the following information which represents the transactions that took place at Porsche $($Pty$)$ ?Ltd for the month of November $2023.$

Owner contributed an additional R$100000$ ?to the business.

Purchased inventory worth R$75000$ ?on credit.

Sold goods worth R$25000$ ?cash, the goods were previously bought for R$20000$

Paid for equipment worth R$12000.$

Sold goods worth R$45000$ ?on credit, the goods were bought for R$35000$

Bought office stationery worth R$5000$

Required

$3\mathrm{.}1.$ ?Briefly explain the double entry principle.

$3\mathrm{.}2.$ ?Record the above transactions based on the basic accounting equation.

Your answer to $3\mathrm{.}2$ ?should be in the following format:

e$.$g$.1.$ ?bought furniture worth R$15000$ ?on credit

$\backslash$table$[[$Number$,$Assets,$=,$Equity,$+,$Liabilities$],[1,+15000,=,0,,+15000]]$