Question

ai o Question 2 [36] ACCOUNTING EQUATION The following transactions occurred during January 2020 in the entity Andromeda Lynx Enterprises. The entity uses the perpetual inventory system and all inventory is marked up at 50% on cost. 1. A Hatman, the owner, increased his capital contribution from R50 000 to R250 000. Cash sales of goods, R18 225. Purchased a second-hand delivery vehicle on credit, R65 000. Paid R3 000 to Ram Motors for fuel for the delivery vehicle. Purchased stationery from Chips for R1 800 and paid per cheque. Bought merchandise from Nithercott, R16 500, and paid per cheque. Merchandise sold on credit to Claire Woodbead, R15 300. Paid the electricity account, R450. Issued a cheque to Nithercott, R8 250, being an instalment on the account. 10. Paid salaries for the month, R10 350. o o o o Required: Analyse the above transactions of Andromeda Lynx Enterprises for January 2020 in the accounting equation by using the following format: Assets Owner's equity Liabilities General Ledger No. Account Dr Account Cr E.g. Trading stock Bank + 1 520

Answer 1

No.	General Ledger		Assets	Owner's equity	Liabilities
	Account Dr	Account Cr
1)	Cash	Capital	+. R200,000	+. R200,000
2)	Cash	Sales Revenue	+. R18,225	+. R18,225
3)	Delivery Vehicle	Accounts Payable	+. R65,000		+. R65,000
4)	Fuel Expenses	Cash	-. R3,000	-. R3,000
5)	Stationary Expenses	Bank	-. R1,800	-. R1,800
6)	Merchandise Inventory	Bank	+. R16,500
7)	Accounts Receivable	Merchandise Inventory	+. R15,300
8)	Electricity Expenses	Cash	-. R450	-. R450
9)	Accounts Payable	Bank	-. R8,250		-. R8,250
10)	Salaries Expense	Cash	-. R10,350	-. R10,350