Reference no: EM131215543
QUESTION :
ACCOUNTING EQUATION AND CREDITORS CONTROL
REQUIRED
1. Show the effect of the following transactions of Brentford Stores on the Accounting equation. Use "+"to denote an increase, "-" to denote a decrease and "0" to denote no change to the elements of the equation.
2. Assume that the bank balance is favourable at all times.
• Issued a cheque to Banned Suppliers for equipment purchased, R8 000.
• Received R3 000 from a debtor in settlement of his account.
• Obtained a loan of R150 000 from Volt Bank.
• Issued a receipt to the proprietor who increased his capital contribution by R200 000.
• Interest received on fixed deposit from Volt Bank, R1 000.
• Purchased a printer on credit, R6 000.
• Received R8 000 from AJ Venter for services rendered.
• Settled the account of a creditor by cheque, R2 500.
• Proprietor drew a cheque of R8 500 for personal use.
• Received rent from the tenant, R6 000.
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