2020 USS 3N POA EOY P1 Q4
4 The following transactions were extracted from the books of Orion Trading.
1. Owner contributed $5 000 cash into the business bank account.
2. Paid $1 800 utilities expenses by cheque
3. Returned damaged goods costing $400, bought previously on credit.
4. Owner paid $6 000 for his family holiday expenses using a business cheque.
5. Receive $200 commission income in cash.
6. Owner issued a personal cheque $5 000 to settle part of a business bank loan.
Complete the table below by showing the effects of each of the above transactions on the accounting equation.
[10]
The first one has been done as an example for you.
Effects on | |||
(i) | + $5 000 Cash at bank | No effect | + $5 000 Capital |
(ii) | |||
(iii) | |||
(iv) | |||
(v) | |||
(vi) | |||
[TOTAL 10]