2023/02/21

Class Example B
The following are transactions which occurred during the month of February for
Bogani’s business:
02/02 Bongani deposited R14 000 into the business bank account
07/02 The business purchased inventory on account from Bailey Company, R1 200
12/02 The business sold inventory on account to Manny Company, R600 (Cost of
inventory R200)
21/02 Paid wages of R740, Cheque 2.
28/02 Issued cheque 3 to Bailey Company for Feb 7 purchase

YOU ARE REQUIRED TO:

Show how the above transactions affect the financial position of the business, using
the accounting equation. You need to indicate whether it is an increase of decrease
of the element and provide the amount and the account that would be affected.

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Class Example B
The following balances were in place before the transactions were taken into
account:
Trial Balance before transactions were taken into ac
Description Debit Credit
Bank 10 000
Accounts Receivable 3 000
Inventory 3 500
Accounts Payable 4 000
Capital 8 000
Sales 5 000
Wages 500
17 000 17 000