Accounting Equation_Basic Accounting Rules

A vehicle is a(n)

• Profit

• Expense

• Asset

• Owner's Equity

Sold goods for R8 125 on credit.

A profit markup of 25% on cost applies to all sales.

The accounts affected are:

• Debtors Control

  Sales

  Cost of Sales

  Trading Stock

• Bank

  Sales

  Cost of Sales

  Trading Stock

• Bank

  Sales

  Cost of Sales

  Creditors Control

• Bank

  Sales

  Cost of Sales

  Debtors Control

Sold goods for R8 125 on credit.

A profit markup of 25% on cost applies to all sales.

The cost of sales is:

• R32 500

• R8 100

• R6 500

• R10 156.25

Obtained a new loan from NBC Bank, R80 000.

• Debit Loan

  Credit Liabilities

• Debit Bank

  Credit Liabilities

• Debit Loan

  Credit Bank

• Debit Bank

  Credit Loan

The owner took stock with a selling price of R1 496 for personal use.

Profit is calculated at 70% on cost.

• Debit Drawings

  Credit Trading Stock

  Amount: R880

• Debit Capital

  Credit Trading Stock

  Amount: R770

• Debit Drawings

  Credit Trading Stock

  Amount: R1 047

• Debit Trading Stock

  Credit Drawings

  R880

• Debit Trading Stock

  Credit Drawings

  R1 047

Paid the monthly loan installment of R8 750, which included interest of 15% per annum. The capital outstanding is R300 000, which is repayable in equal installments over 5 years.

• Debit Loan

  Credit Bank

  R 8 750

• Debit Loan

  (R5 000)

  Debit Interest on Loan

  (R3 750)

  Credit Bank

  (R8 750)

• Debit Interest on Loan

  R 3 750

  Debit Bank

  3750

  Credit Loan

  R5 000

• Debit Bank

  (R8 750)

  Credit Interest on Loan

  (R3 750)

  Credit Loan

  R5 000)