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Question 1: Gizmo Traders bought a new electricity generator, to be used during load shedding, from Luna Lights for R50 000 and paid for it through an electronic funds transfer (EFT). What effect will the above transaction have on the accounting equation if Gizmo Traders has a favourable bank balance?
Equity = Assets - Liabilities
(1) +R50 000 +R50 000 0
(2) 0 ±R50 000 0
(3) +R50 000 0 +R50 000
(4) +R100 000 +R50 000 -R50 000
(5) 0 0 ±R50 000
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