2. Practical bases questions (Basic Accounting Equation) The following information was obtained from the accounting records of Ace Traders Jan 2021 and the perpetual inventory system is in use 1. The owner deposited R100 000 to start off his business. R60 000 was from his savings and R40 000 from a loan he personally acquired from the bank 2. Bought a trailer for R40 000 paid a deposit of R10 000 and the balance is still payable 3. Purchased merchandise of R50 000 on credit from Bulk Traders. 4. Paid R2 000 carriage cost on merchandise bought from Bulk Traders 5. All merchandise acquired from Bulk Traders was sold for R80 000 and only R60 000 was received and balance receivable in 30 days 6. Paid R20 000 on his loan 7. Settled the money owed to Bulk Traders and received 10% early settlement discount 1.2 Show the Effect of these transactions on the basic accounting equation No. Assets = Owner's Equity + Liabilities

2. Practical bases questions (Basic Accounting Equation) The following information was obtained from the accounting records of Ace Traders Jan 2021 and the perpetual inventory system is in use 1. The owner deposited R100 000 to start off his business. R60 000 was from his savings and R40 000 from a loan he personally acquired from the bank 2. Bought a trailer for R40 000 paid a deposit of R10 000 and the balance is still payable 3. Purchased merchandise of R50 000 on credit from Bulk Traders. 4. Paid R2 000 carriage cost on merchandise bought from Bulk Traders 5. All merchandise acquired from Bulk Traders was sold for R80 000 and only R60 000 was received and balance receivable in 30 days 6. Paid R20 000 on his loan 7. Settled the money owed to Bulk Traders and received 10% early settlement discount 1.2 Show the Effect of these transactions on the basic accounting equation No. Assets = Owner's Equity + Liabilities

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter1: The Role Of Accounting In Business

Section: Chapter Questions

Problem 1.26E: Accounting concepts Match each of the following statements with the appropriate accounting concept....

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Refer to the following transactions entered into by TH Traders during the year ended 30 June 2012 and answer the question that follow: Transaction 1. The owner deposited R 60 000 into business account as his contribution to the business 2. Sold goods on credit to F Meko, R 7 000 3. The business obtained a loan of R30 000 from FNB. 4. Bought stationery on credit, R300 5. Cash sales of goods, R6 500. The goods were bought for R4 000 6. Purchased furniture and equipment on credit from FBD Ltd R5 000 7. The owner used a business cheque to pay for his personal accounts, R4 000 8. Purchased Equipment worth R60 000. R42 000 was paid using cash and the remainder will be paid in 3 months’ time. REQUIRED: Record the above transactions using the Accounting Equation. Use the following format to answer this question: Example: Paid for advertising R300. TRANSACTION ASSETS =EQUITY + LIABILITIES Example -300 -300 0
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