2020 BGSS 3N POA EOY P1 Q3

3 Mickey started his business on 1 August 2020. During the first week of trading, Mickey’s business transactions included the following:

1. Mickey contributed money into the business bank account from his personal funds.

2. Paid rent by cheque.

3. Purchased inventory on credit from supplier, Boon.

4. Purchased fixtures and fittings with a cheque.

REQUIRED

a. Complete the following table by naming the accounts to be debited and credited for each of the above transactions.

[8]

Transaction

Account Debited

Account Credited

1

  

2

  

3

  

4

  

[TOTAL 8]

SOLUTION
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a)

 

Transaction

Account Debited

Account Credited

1

Cash at bank

Capital

2

Rental expense

Cash at bank

3

Inventory

Trade payable – Boon

4

Fixtures and fittings

Cash at bank