2020 SMSS 3E POA EOY P2 Q2

2 The following transactions of Joyful Apparel took place in the month of August 2020.

2020

 

Aug 1

Jane started Joyful Apparel with $10 000 cash. 

        5

Sold $900 worth of apparel to Kelly on credit. The cost of the apparel was $450. 

        9

Kelly returned apparel worth $200. The cost of the apparel returned was $100.

       12

Received $680 cheque from Kelly for a full settlement of the amount owed by Kelly. 

       18 

The cheque received from Kelly on 12 August 2020 was dishonoured. 

REQUIRED

a. Copy and complete the following table. Show the effects (+ for increase, – for decrease), with amounts and accounts affected, of the above transactions on the accounting equation. If there is no effect, please indicate “No effect”. The first transaction has been completed as an example.

[14]

Date

2020

Effect on

Assets

Liabilities

Equities

Aug 1

Cash in hand +$10 000

No effect

Capital +$10 000

b. State the source document involved in the following transactions.

[4]

 

Transaction

Source Document 

(i)

Aug 5

 

(ii)

Aug 9

 

(iii)

Aug 12 

 

(iv)

Aug 18

 

[TOTAL 18]