State the account to be debited and credited for each transaction, and the effect of each transaction on the Statement of Financial Position.

April 10, 2026Accounting

ScanSolve AI Answer

April 10, 2026

Here are the solutions for Question 2, covering the journal entries, their effects on the Statement of Financial Position, and the Suspense Account.

QUESTION 2

Part 1: State the account to be debited and credited for each transaction, and the effect of each transaction on the Statement of Financial Position.

viii. Asiedu used part of the goods meant for his personal use GH¢400.
- Debit: Drawings A/c
- Credit: Purchases A/c
- Effect on SFP: Assets (Inventory) decrease, Equity (Drawings) decreases.
ix. Withdrew cash from bank for office use GH¢1,500.

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Quick Answer

Here are the solutions for Question 2, covering the journal entries, their effects on the Statement of Financial Position, and the Suspense Account.
Asiedu used part of the goods meant for his personal use GH¢400.
Debit: Drawings A/c Credit: Purchases A/c Effect on SFP: Assets (Inventory) decrease, Equity (Drawings) decreases.
Withdrew cash from bank for office use GH¢1,500.

Asked on April 10, 2026Accounting

This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.

ScanSolve AI AnswerAnswered on April 10, 2026

Here are the solutions for Question 2, covering the journal entries, their effects on the Statement of Financial Position, and the Suspense Account. QUESTION 2 Part 1: State the account to be debited and credited for each transaction, and the effect of each transaction on the Statement of Financial Position. viii. Asiedu used part of the goods meant for his personal use GH¢400. Debit: Drawings A/c Credit: Purchases A/c Effect on SFP: Assets (Inventory) decrease, Equity (Drawings) decreases. ix. Withdrew cash from bank for office use GH¢1,500.