Accounting Equation - Grade 12

Which one from the list below doesn't represent the Accounting equation?

• A = OE + L

• A - L = OE

• A - OE = L

• OE = A + L

How many account groups will affect owners equity?

• 1

• 2

• 3

• 4

When the business receives a loan of R10 000 what will happen to bank?

• No effect on bank

• Bank will increase

• Bank will decrease

What will happen to liabilities when a business takes out a loan?

• Loans will increase

• No effect

• Loans will decrease

When the owner contributes capital in the form of a direct EFT, Capital and which other account will be affected and how?

• Bank will increase

• Bank will decrease

• Capital will increase

• Capital will decrease

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

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