2020 USS 3N POA EOY P1 Q4

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

 

Assets

Liabilities

Equity

(i)

+ $5 000 Cash at bank

No effect

+ $5 000 Capital

(ii)

   

(iii)

   

(iv)

   

(v)

   

(vi)

   

[TOTAL 10]

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