Accounting Equation

The owner, Jane made a capital contribution of R 85 000 to her business.

Which accounts in the General Ledger will be affected ?

• Dr Bank , Cr Capital

• Dr Capital , Cr Bank

• Dr Cash , Cr Capital

Dr Bank R 85 000, Cr Capital R 85 000

What affect does the above transaction have on the Accounting Equation ?

Assets = Owner's Equity + Liabilities

• • Assets increase (+)

  • Owner's equity increase (+)

• • Assets decrease (-), Owner's equity decrease(-)

• Assets Decrease(-), Liabilities increase(+)

Purchased Trading inventory on credit for R 35 200.

The business uses the perpetual inventory system.

Which accounts in the General Ledger will be affected ?

• Dr Trading Inventory , Cr Creditors Control

• Dr. Creditors Control , Cr. Trading Inventory

• Dr. Trading Inventory , Cr. Debtors Control

Dr Trading Inventory R 35 200, Cr Creditors Control R 35 200

What is the effect of the above transaction on the Accounting Equation?

Assets = Owner's Equity + Liabilities

• Assets + 35 200, Liabilities + 35 200

• Assets - 35 200 ,Owner's equity + 35 200

• Assets - 35 200 , Liabilities + 35 200

Paid for repairs by EFT, R 1 500.

Identify which accounts in the General Ledger will be affected ?

• Dr. Expenses account , Cr. Bank account

• Dr. Bank account , Cr. Repairs account

• Dr. Repairs , Cr. Bank

Dr. Repairs R 1 500 , Cr Bank R 1 500

What is the affect of the above transaction on the Accounting Equation?

Assets = Owner's Equity + Liabilities

• Assets + 1 500, Liabilities + 1 500

• Assets + 1 500,Owner's equity + 1 500

• Assets - 1 500, Owner' Equity - 1 500

Sold merchandise for R 5 500 cash. The goods were originally bought for R 2 000.

Identify which accounts in the General ledger will be affected by the above transaction.

• Dr. Bank , Cr. Sales

  Dr. Cost of Sales , Cr. Trading Inventory

• Dr. Sales , Cr. Bank

  Dr. Trading Inventory , Cr. Cost of Sales

• Dr. Cash , Cr. Sales

  Dr. Cost of Sales , Cr. Trading Inventory

Dr Bank R 5 500, Cr Sales R 5 500

Dr Cost of Sales R 2 000, Cr Trading Inventory R 2 200

What is the affect of the above transactions on the Accounting Equation?

Assets = Owner's Equity + Liabilities

• Assets - 5 500 , OE - 5500

  OE + 2 000 , Liabilities + 2000

• Assets + 5 500, Owner's equity - 2 000

• Assets + 5 500 , OE + 5 500,

  Assets - 2 000 , OE - 2 000

Received rent income of R 4 000

Which General ledger accounts will be affected ?

• Dr. Rent Income, Cr. Bank

• Dr. Bank, Cr. Rent Income

• Dr. Bank, Cr. Income

Dr. Bank R 4 000, Cr. Rent Income R 4 000

What is the affect of the above transaction on the Accounting Equation?

Assets = Owner's Equity + Liabilities

• Assets + 4 000, OE + 4 000

• Assets - 4000 , OE - 4 000

• Assets + 4 000, Liabilities + 4 000