Create a Cash Receipts Journal for Habana Dry Cleaners for March 2026 and show the effect of transactions on the accounting equation.

Here are the solutions for the questions.

2.2: CASH RECEIPTS JOURNAL

Here is the Cash Receipts Journal for Habana Dry Cleaners for March 2026:

$$\begin{array}{|l|l|l|l|l|l|l|} \hline \textbf{Date} & \textbf{Details} & \textbf{Fol.} & \textbf{Bank (Dr)} & \textbf{Analysis of Receipts (Cr)} & \textbf{Sundry Accounts (Cr)} \\ \cline{5-6} & & & & \textbf{Service Income} & \textbf{Amount} & \textbf{Details} \\ \hline \text{2026 Mar 1} & \text{Capital: B. Habana} & & \text{R90 000} & & \text{R90 000} & \text{Capital: B. Habana} \\ \text{2026 Mar 17} & \text{Service Rendered} & & \text{R2 810} & \text{R2 810} & & \\ \text{2026 Mar 22} & \text{Service Rendered} & & \text{R3 090} & \text{R3 090} & & \\ \text{2026 Mar 26} & \text{Rent Income} & & \text{R5 000} & & \text{R5 000} & \text{Rent Income} \\ \hline \textbf{31 Mar} & \textbf{Totals} & & \textbf{R100 900} & \textbf{R5 900} & \textbf{R95 000} & \\ \hline \end{array}$$

QUESTION 3: ACCOUNTING EQUATION

3.1
Here is the effect of the transactions on the accounting equation:

1. Owner, W Wilson increased his capital contribution by 50 000, receipts 100 issued.

   • Assets: $\boxed{\text{+R50 000}}$ (Bank increases)
   • Owners' Equity: $\boxed{\text{+R50 000}}$ (Capital increases)
   • Liabilities: $\boxed{\text{0}}$ (No effect)

2. Service rendered amounted to R3500, as per cash register roll.

   • Assets: $\boxed{\text{+R3 500}}$ (Bank increases)
   • Owners' Equity: $\boxed{\text{+R3 500}}$ (Service Income increases, which increases Owners' Equity)
   • Liabilities: $\boxed{\text{0}}$ (No effect)