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    Basic Accounting Equation (BAE) (Comprehensive Explanations)

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    jasminet.arendse
    This 3-page document provides details of 14 transactions conducted by Amanda Traders, a grocery business, during its first month of operations in January 2022. It includes transactions for cash purchases and sales of goods, obtaining a loan, paying wages, purchasing assets, withdrawing cash for personal use, buying and selling on credit terms, and receiving payment from a debtor. The document aims to provide information needed to record these transactions using a perpetual inventory system of accounting.

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    Basic Accounting Equation (BAE) (Comprehensive Explanations)

    Uploaded by

    jasminet.arendse
    17 views4 pages
    This 3-page document provides details of 14 transactions conducted by Amanda Traders, a grocery business, during its first month of operations in January 2022. It includes transactions for cash purchases and sales of goods, obtaining a loan, paying wages, purchasing assets, withdrawing cash for personal use, buying and selling on credit terms, and receiving payment from a debtor. The document aims to provide information needed to record these transactions using a perpetual inventory system of accounting.

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    This 3-page document provides details of 14 transactions conducted by Amanda Traders, a grocery business, during its first month of operations in January 2022. It includes transactions for cash purchases and sales of goods, obtaining a loan, paying wages, purchasing assets, withdrawing cash for personal use, buying and selling on credit terms, and receiving payment from a debtor. The document aims to provide information needed to record these transactions using a perpetual inventory system of accounting.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    17 views4 pages

    Basic Accounting Equation (BAE) (Comprehensive Explanations)

    Uploaded by

    jasminet.arendse
    This 3-page document provides details of 14 transactions conducted by Amanda Traders, a grocery business, during its first month of operations in January 2022. It includes transactions for cash purchases and sales of goods, obtaining a loan, paying wages, purchasing assets, withdrawing cash for personal use, buying and selling on credit terms, and receiving payment from a debtor. The document aims to provide information needed to record these transactions using a perpetual inventory system of accounting.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 4

    BASIC ACCOUNTING

    EQUATION
    This document consists of a cover page and 3 pages

    MR TK CLASSES
    084 594 6050

    www.mrtkclasses.co.za
    1

    Tutorial videos for these transactions:

    Just click the link


    Tutorial 1: https://youtu.be/NQchW5Ixyws
    Tutorial 2: https://youtu.be/P3tbokEobvY
    Tutorial 3: https://youtu.be/Hz1zCYe-_aw

    Question
    Amanda Zulu started her business as Amanda Traders on 1 January
    2022. The business trades groceries. The following is a list of
    transactions entered into by the business during the month of January
    2022. The business uses perpetual inventory system.

    CASH TRANSACTIONS
    Transaction 1
    Amanda Zulu deposited R50 000 into the business’ bank account as opening
    Capital.

    Transaction 2
    Acquired a loan from PTA bank for R25 000.

    Transaction 3
    Bought goods for resale to the amount of R8 000 and paid by EFT.

    Transaction 4
    Sold goods to the amount of R20 000 for cash. These goods were previously
    bought for R8 000.

    Transaction 5
    Paid wages of R2 300 by EFT.

    Copyright reserved Scroll to next page


    2

    Transaction 6
    Bought a computer for R6 000 from SA Computer Traders and paid by cash.

    Transaction 7
    Amanda withdrew R150 from the business’ bank account for private use.

    CREDIT TRANSACTIONS
    Transaction 8
    Amanda Traders bought computer equipment for office use on credit
    from Digital Palace Worldwide for R5 500.

    Transaction 9
    Bought goods for resale to the amount of R7 500 on credit from Bulk
    Wholesalers.

    Transaction 10
    Sold goods to the amount of R15 000 on credit to C Nkosi. These goods
    were previously bought for R5 500.

    Copyright reserved Scroll to next page


    3

    GENERAL TRANSACTIONS AND A FEW CASH TRANSACTIONS


    Transaction 11
    The owner of the business, Amanda Zulu brought her private motor
    vehicle worth R30 000 to the business.

    Transaction 12
    Amanda Zulu took groceries with a cost price of R1 000 for private use.
    If these groceries have been sold, they could have been sold for R1 500.

    Transaction 13
    Paid R7 000 to Bulk Wholesalers on their account.

    Transaction 14
    Received payment from a debtor, C Nkosi, R10 000.

    Copyright reserved Scroll to next page

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