This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
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Here are the solutions to your questions. 1. Match column a to column b. 1. Asset: F 2. Debit: C 3. Credit: I 4. Capital: G 5. Liabilities: H 6. Accounting equation: J 7. Owner's equity: B 8. Transactions: E 2. TRADING BUSINESS: ACCOUNTING EQUATION The business sells goods with a profit markup of 50% on the cost price. Selling Price = Cost Price × 1.50 Transaction 1: Purchased stock from Simon Wholesalers for R8 000, paid with an EFT. Assets: Stock increases by R8 000, Bank decreases by R8 000. Owner's Equity: No effect. Liabilities: No effect. Assets (Stock + R8\,000, Bank - R8\,000) = Owner's Equity + Liabilities Transaction 2: Sold goods with a cost price of R500. Selling Price = R500 × 1.50 = R750. Assets: Cash increases by R750, Stock decreases by R500. Owner's Equity: Sales (Income) increases by R750, Cost of Sales (Expense) decreases by R500. Net increase of R250. Liabilities: No effect. Assets (Cash + R750, Stock - R500) = Owner's Equity (Sales + R750, Cost of Sales - R500) + Liabilities Transaction 3: Purchased equipment for cash from Heidi Traders for R9 000. Assets: Equipment increases by R9 000, Bank decreases by R9 000. Owner's Equity: No effect. Liabilities: No effect. Assets (Equipment + R9\,000, Bank - R9\,000) = Owner's Equity + Liabilities Transaction 4: Sold stock for cash, R1 500. Cost Price = R1 500 / 1.50 = R1 000. Assets: Cash increases by R1 500, Stock decreases by R1 000. Owner's Equity: Sales (Income) increases by R1 500, Cost of Sales (Expense) decreases by R1 000. Net increase of R500. Liabilities: No effect. Assets (Cash + R1\,500, Stock - R1\,000) = Owner's Equity (Sales + R1\,500, Cost of Sales - R1\,000) + Liabilities Transaction 5: Received cash from M Melby as rent for a spare office, R900. Assets: Cash increases by R900. Owner's Equity: Rent Income increases by R900. Liabilities: No effect. Assets (Cash + R900) = Owner's Equity (Rent Income + R900) + Liabilities Transaction 6: The owner withdrew R1 800 cash from the ATM for personal use. Assets: Cash decreases by R1 800. Owner's Equity: Drawings decrease by R1 800. Liabilities: No effect. Assets (Cash - R1\,800) = Owner's Equity (Drawings - R1\,800) + Liabilities That's 2 down. 3 left today — send the next one.