Answer Happy

Question 1 [10 marks] Complete the columns to show the effects of the following transactions: Effect upon: Assets Liabilities Capital Van Increase Example Bought van by cash. Cash Decrease a) b) c) d) h) i) j) Received part payment from Jack Furniture by cheque. Bought goods from Mary Enterprise by cash. Sold office equipment to Flint Supplies on time. Paid part payment of loan from John by cheque. Sold goods on time. Owner takes out money from business cash register for personal use. Purchase goods on credit. Debtors paid half of the amount due by online transfer. Returned defect goods to supplier whose bill we had not paid. We received returned goods from one of our debtor, Linda Spa.
Question 2 [10 marks] State the accounts to be opened based on the following business activities: Account to be Account to be debited credited a) Started business by opening business bank account, brought in cash, and used van for business use. b) Make payment by cheque for office cleaning service. c) Bought new computer by cheque. d) Withdrew cash from business bank account for business use. e) Paid office rent by online banking. f) Withdraw goods for personal use. g) Sold goods on credit. h) Received cheque from debtors. i) Owner withdraw cash at bank for personal use.