Record the transactions in the Cash Book and the General Journal for January 2018 and close off the book at the end of the month. Do the posting to the ledgers. Indicate what effect each of the following transactions has on the accounting equation (effect/reason).

Here is the effect of each transaction on the accounting equation: Transaction 2: Bought goods for N7 000 and paid by EFT, received 10% trade discount. Effect: Assets: No net effect (Inventory increases by N6 300, Bank decreases by N6 300). Liabilities: No effect. Equity: No effect. Reason: Purchase of inventory for cash, after a trade discount of N7 000 × 0.10 = N700. Transaction 3: Paid On Time Courier by debit card N700 for carriage on purchases to the business. Effect: Assets: Decrease by N700 (Bank). Liabilities: No effect. Equity: Decrease by N700 (Carriage expense). Reason: Payment of an expense. Transaction 5: Donated N2 000 cash to the Old Age Home. Effect: Assets: Decrease by N2 000 (Cash). Liabilities: No effect. Equity: Decrease by N2 000 (Donation expense). Reason: Payment of an expense. Transaction 7: EFT N70 000 to Standard Bank as a fixed deposit at 12% interest per annum receivable at the end of every month. Effect: Assets: No net effect (Fixed Deposit increases by N70 000, Bank decreases by N70 000). Liabilities: No effect. Equity: No effect. Reason: Transfer of funds to an investment. Transaction 9: Cash sales of goods N12 000 as per cash register roll CRR11. Effect: Assets: Increase by N12 000 (Cash). Liabilities: No effect. Equity: Increase by N12 000 (Sales revenue). Reason: Sale of goods for cash. Transaction 10: Received cash N900 from B Boss in full settlement of his account. Effect: Assets: Decrease by N100 (Cash increases by N900, Accounts Receivable decreases by N1 000). Liabilities: No effect. Equity: Decrease by N100 (Discount Allowed expense). Reason: Collection from a debtor with a discount allowed (N1 000 - N900 = N100). Transaction 12: S Simon was written off as a bad debt. Effect: Assets: Decrease by N500 (Accounts Receivable). Liabilities: No effect. Equity: Decrease by N500 (Bad Debts expense). Reason: Recognition of an uncollectible debt as an expense. Transaction 23: A customer bought goods for N990 and paid with his credit card. Effect: Assets: Increase by N990 (Bank). Liabilities: No effect. Equity: Increase by N990 (Sales revenue). Reason: Sale of goods via credit card. Transaction 26: Deposited all cash into the current bank account of the business. Effect: Assets: No net effect (Cash decreases by N12 900, Bank increases by N12 900). Liabilities: No effect. Equity: No effect. Reason: Transfer of cash to bank. Calculation of cash deposited: N2 000 (initial) - N2 000 (Tx 5) + N12 000 (Tx 9) + N900 (Tx 10) = N12 900. Transaction 30: EFT N2 000 to Great Suppliers to settle the business's account. Effect: Assets: Decrease by N2 000 (Bank). Liabilities: Decrease by N2 000 (Accounts Payable). Equity: No effect. Reason: Payment to a creditor. Transaction 31: Received an EFT from Standard Bank for interest on the fixed deposit. Effect: Assets: Increase by N700 (Bank). Liabilities: No effect. Equity: Increase by N700 (Interest revenue). Reason: Receipt of interest revenue (N70 000 × 0.12 ÷ 12 = N700). What's next? Send 'em! 📸