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Here is the analysis of the transactions and the balance sheet in English:

i) Show the effects of the above transactions on assets, capital and liabilities.

The following table shows how each transaction affects the accounting equation (Assets = Capital + Liabilities).

TransactionDescription of TransactionAssets (Sh.)Capital (Sh.)Liabilities (Sh.)
Start000
a)Deposited Sh. 50,000 in a bank from own saving.+50,000 (Bank)+50,0000
Balance50,00050,0000
b)Borrowed Sh. 100,000 from ICDC and deposited the same in a business bank account.+100,000 (Bank)0+100,000 (Loan)
Balance150,00050,000100,000
c)Bought premises worth Sh. 70,000 by cheque.+70,000 (Premises) -70,000 (Bank)00
Balance150,00050,000100,000
d)Withdrew Sh. 20,000 from bank for business use (cash).+20,000 (Cash) -20,000 (Bank)00
Balance150,00050,000100,000
e)Bought stock costing Sh. 5,000 on credit.+5,000 (Stock)0+5,000 (Creditors)
Balance155,00050,000105,000
f)Sold stock costing Sh. 5,000 for Sh. 8,000 and received Sh. 6,000 in cash.-5,000 (Stock) +6,000 (Cash) +2,000 (Debtors)+3,000 (Profit)0
Balance158,00053,000105,000
g)Converted a personal car worth Sh. 200,000 into a business asset.+200,000 (Car)+200,0000
Balance358,000253,000105,000
h)Paid wife's hospital bill Sh. 3,000 in cash from the business.-3,000 (Cash)-3,000 (Drawings)0
Balance355,000250,000105,000
i)Paid creditors Sh. 3,000 by cheque.-3,000 (Bank)0-3,000 (Creditors)
Final Balance352,000250,000102,000

ii) Prepare Aura's balance sheet on August 31, 2024.

Mrs. Aura’s Balance SheetAs at August 31, 2024\textbf{Mrs. Aura's Balance Sheet} \\ \textbf{As at August 31, 2024} AssetsSh.Non-Current AssetsPremises70,000Car200,000Total Non-Current Assets270,000Current AssetsBank57,000Cash23,000Debtors2,000Stock0Total Current Assets82,000Total Assets352,000‾‾Capital and LiabilitiesCapitalInitial Capital50,000Add: Profit3,000Add: Additional Capital (Car)200,000Less: Drawings(3,000)Total Capital250,000Non-Current LiabilitiesLoan from ICDC100,000Current LiabilitiesCreditors2,000Total Capital and Liabilities352,000‾‾\begin{array}{lrr} \textbf{Assets} & & \textbf{Sh.} \\ \textbf{Non-Current Assets} & & \\ \quad \text{Premises} & 70,000 & \\ \quad \text{Car} & 200,000 & \\ \quad \textbf{Total Non-Current Assets} & & \textbf{270,000} \\ & & \\ \textbf{Current Assets} & & \\ \quad \text{Bank} & 57,000 & \\ \quad \text{Cash} & 23,000 & \\ \quad \text{Debtors} & 2,000 & \\ \quad \text{Stock} & 0 & \\ \quad \textbf{Total Current Assets} & & \textbf{82,000} \\ & & \\ \textbf{Total Assets} & & \underline{\underline{\textbf{352,000}}} \\ & & \\ \textbf{Capital and Liabilities} & & \\ \textbf{Capital} & & \\ \quad \text{Initial Capital} & 50,000 & \\ \quad \text{Add: Profit} & 3,000 & \\ \quad \text{Add: Additional Capital (Car)} & 200,000 & \\ \quad \text{Less: Drawings} & (3,000) & \\ \quad \textbf{Total Capital} & & \textbf{250,000} \\ & & \\ \textbf{Non-Current Liabilities} & & \\ \quad \text{Loan from ICDC} & & \textbf{100,000} \\ & & \\ \textbf{Current Liabilities} & & \\ \quad \text{Creditors} & & \textbf{2,000} \\ & & \\ \textbf{Total Capital and Liabilities} & & \underline{\underline{\textbf{352,000}}} \\ \end{array}
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