One has been done for you. Assume that the bank balance is favourable at all times. Note and the effect on the Accounting Equation for each of the transactions provided. The first
Use the table provided to list the documents, journals, double entries in the General Ledger
You are provided with transactions relating to Bell Stationery Shop.
Required:
that some amounts and details have already been inserted on the table.
No.
Doc.
Journal
Entries in General Ledger
Effect on
Accounting
Equation
D
с
1.
Invoice
Dr
Equipment
CJ
Cr
Amount
Creditors control R600
A
E
+
+
Transactions:
1.
2.
3.
4.
5.
6.
7.
8.
Bought equipment on credit from Stevens Stationers, R600.
The bank statement reflected a transfer of a loan into the account from Sanlam
Lenders, R40 000.
Opened an account with a supplier, Bic Ltd, and bought stock on credit, R8 000.
Returned 20% of the stock bought from Bic Ltd.
Settled the account of Bic Ltd with a cheque for R6 400.
Paid R730 for paint. This paint is to be used in repairing the owner's home.
Sold goods to B. Foster on credit, R1 600. The cost price was R1 200.
B. Foster returned stock which had a selling price of R240 and a cost price of
R180.
B. Foster settled his account with a cheque for R1 360.
The bank statement reflected bank charges of R770.
9.
10.