Question 2.1
The following transactions were taken from the books of Dingo Dry Cleaners for the month of February 20.22
1. The owner paid his private telephone account of R900 with an EFT from the business’ bank account.
2. Services were rendered to Puma Wholesalers on credit at a value of R2 800.
3. Pay R470 to a payable.
4. The owner made an EFT from his private bank account to buy a delivery vehicle for the business to the amount of R350 000.
5. Receive R790 from a receivable as payment of his debt.
6. Make an EFT to Free State Bank for R3 300. R3 000 was for redemption of a loan and the balance for interest due.
7. Buy stationery on credit, R660.
8. Bank charges on the bank statement amounted to R195.
Required:
Write down the accounting equation and indicate the influence of the following transactions on the accounting equation as follows:
Show increases with a + and the amount
Show decreases with a – and the amount
Indicate no influence with a 0
Accounting Equation: Assets = Liabilities + Owner's Equity
1. - R900 (Assets decrease)
2. + R2 800 (Accounts Receivable increase, Owner's Equity increase)
3. - R470 (Assets decrease)
4. + R350 000 (Assets increase)
5. + R790 (Cash increase, Accounts Receivable decrease)
6. - R3 300 (Assets decrease)
7. 0 (No change)
8. - R195 (Assets decrease)