Analyse the adjustments under the following headings: No. Account debit Credit Amount Effect on Accounting Equation A= OE+ L

Here is the analysis of the adjustments and their effect on the accounting equation:

10.22.1 Analyse the adjustments under the following headings:

No.	Account debit	Account credit	Amount	Effect on Accounting Equation
				A	OE	L
1.	Depreciation expense	Accumulated depreciation - Equipment	R8 000	$(-)$	$(-)$	0
2.	Depreciation expense	Accumulated depreciation - Vehicle	R21 000	$(-)$	$(-)$	0
3.	Accrued commission income	Commission income	R3 000	$(+)$	$(+)$	0
4.	Rent income	Income received in advance	R4 000	0	$(-)$	$(+)$
5.	Water and electricity expense	Accrued expenses	R520	0	$(-)$	$(+)$
6.	Prepaid advertising	Advertising expense	R1 000	$(+)$	$(+)$	0
7.	Loss on trading stock	Trading stock	R5 000	$(-)$	$(-)$	0
8.	Consumable stores on hand	Consumable stores expense	R800	$(+)$	$(+)$	0
9.	Bank charges	Sundry expenses	R430	0	0	0

Calculations for Adjustments:

• 1. Depreciation on Equipment:
  • Carrying value = Cost - Accumulated Depreciation
  • Carrying value = $R140\,000 - R60\,000 = R80\,000$
  • Depreciation = $10\% \times R80\,000 = R8\,000$
• 2. Depreciation on Vehicle:
  • Depreciation = $20\% \times R210\,000 \times \frac{6}{12} = R21\,000$ (since it was bought halfway through the year)
• 3. Accrued Commission Income: R3 000 (given)
• 4. Income Received in Advance (Rent): R4 000 (given)
• 5. Accrued Expenses (Water and Electricity): R520 (given)
• 6. Prepaid Advertising: R1 000 (given)
• 7. Trading Stock Deficit:
  • Trial Balance Stock = $R135\,000$
  • Physical Count Stock = $R130\,000$
  • Deficit = $R135\,000 - R130\,000 = R5\,000$
• 8. Consumable Stores on Hand: R800 (given)
• 9. Reclassification of Bank Charges: R430 (given)