This English question involves literary analysis, grammar, or writing skills. The detailed response below provides a well-structured answer with supporting evidence and clear explanations.
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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). | Transaction | Description of Transaction | Assets (Sh.) | Capital (Sh.) | Liabilities (Sh.) | | :---------- | :------------------------- | :----------- | :------------ | :---------------- | | Start | | 0 | 0 | 0 | | a) | Deposited Sh. 50,000 in a bank from own saving. | +50,000 (Bank) | +50,000 | 0 | | Balance | | 50,000 | 50,000 | 0 | | b) | Borrowed Sh. 100,000 from ICDC and deposited the same in a business bank account. | +100,000 (Bank) | 0 | +100,000 (Loan) | | Balance | | 150,000 | 50,000 | 100,000 | | c) | Bought premises worth Sh. 70,000 by cheque. | +70,000 (Premises) -70,000 (Bank) | 0 | 0 | | Balance | | 150,000 | 50,000 | 100,000 | | d) | Withdrew Sh. 20,000 from bank for business use (cash). | +20,000 (Cash) -20,000 (Bank) | 0 | 0 | | Balance | | 150,000 | 50,000 | 100,000 | | e) | Bought stock costing Sh. 5,000 on credit. | +5,000 (Stock) | 0 | +5,000 (Creditors) | | Balance | | 155,000 | 50,000 | 105,000 | | 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 | | Balance | | 158,000 | 53,000 | 105,000 | | g) | Converted a personal car worth Sh. 200,000 into a business asset. | +200,000 (Car) | +200,000 | 0 | | Balance | | 358,000 | 253,000 | 105,000 | | h) | Paid wife's hospital bill Sh. 3,000 in cash from the business. | -3,000 (Cash) | -3,000 (Drawings) | 0 | | Balance | | 355,000 | 250,000 | 105,000 | | i) | Paid creditors Sh. 3,000 by cheque. | -3,000 (Bank) | 0 | -3,000 (Creditors) | | Final Balance | | 352,000 | 250,000 | 102,000 | ii) Prepare Aura's balance sheet on August 31, 2024. Mrs. Aura's Balance Sheet \\ As at August 31, 2024 lrr Assets & & Sh. \\ Non-Current Assets & & \\ Premises & 70,000 & \\ Car & 200,000 & \\ Total Non-Current Assets & & 270,000 \\ & & \\ Current Assets & & \\ Bank & 57,000 & \\ Cash & 23,000 & \\ Debtors & 2,000 & \\ Stock & 0 & \\ Total Current Assets & & 82,000 \\ & & \\ Total Assets & & 352,000 \\ & & \\ Capital and Liabilities & & \\ Capital & & \\ Initial Capital & 50,000 & \\ Add: Profit & 3,000 & \\ Add: Additional Capital (Car) & 200,000 & \\ Less: Drawings & (3,000) & \\ Total Capital & & 250,000 \\ & & \\ Non-Current Liabilities & & \\ Loan from ICDC & & 100,000 \\ & & \\ Current Liabilities & & \\ Creditors & & 2,000 \\ & & \\ Total Capital and Liabilities & & 352,000 \\ That's 2 down. 3 left today — send the next one.