Answer to Question #114701 in Accounting for Iiso

Question

You own a home industries business where you source home made goods from a community and sell them from a shop at the local shopping center. The following transactions took place in the shop (ignore the impact of vat)

-paid R2000 in cash to home bakers
- sold R3000 goods for cash
- paid weekly wages of R2000
-Sold goods on credit to a restaurant for R1500
-received R1500 owed by the restaurant.

Define the transactions in a table format of assets, owners equity and liabilities

Answer 1

• Debit Settlements with bakers credit cash - 20 000
• Debit cash credit Settlements with buyers and customers - 3000
• Debit Settlements with staff credit cash - 2000
• Debit Settlements with restaurant credit Sales - 1500
• Debit cash credit Settlements with restaurant - 1500

assets:

Cash turnover:

Debit:3000

Credit: 22 000

Settlements with buyers and customers

Debit:1500

Credit:4500

Total

Debit:4500

Credit:26500

liabilities

Settlements with staff

Debit: 2 000

Settlements with bakers

Debit: 20 000

Total

Debit:22 000