QUESTION TWO [20]
Show the effect of the following transactions of Mac Limited onthe accounting equation using the format provided. Use + if theelement increases, - if the element decreases and 0 if the elementremains unchanged. Also indicate the amount.
E.g. Mac bought stationery on credit, R900.No. | Assets | = Equity | + Liabilities |
E.g. | 0 | -900 | +900 |
Transactions:
2.1 Bought invoice books on credit, R1 300.
2.2 Bought a computer by cheque, R230 000.
2.3 Cash received for services rendered, R14 000.
2.4 Paid the annual fire insurance by cheque R22 400.
2.5 Received R2 000 from a debtor in part settlement of heraccount.
2.6 The tenant paid the monthly rental to Mac Limited, R15000
2.7 Received an account for repairs to the machinery, R17500.
2.8 Bought fuel for delivery vehicle by cheque, R400.
2.9 Mac took R1 800 drawings from the business.
2.10 Cash received for services rendered to Mr Harry who is avalued customer, R101 150.
