Qs

3.1 c

3.2 b

3.3 c

3.41 a
3.42 c
BEA1007 Tutorial 2: Accounting Equation
Explanation
Opening equity + Profit + Contributions - Drawings = Closing equity

Closing equity + drawings - income - opening equity = expenses

Opening equity + Profit + Contributions - Drawings = Closing equity

Opening equity + Profit + Contributions - Drawings = Closing equity

Opening equity + Profit + Contributions - Drawings = Closing equity
 BEA1007 Tutorial 2: Accounting Equation
E3.3
Accounting Equation

1st March Transactions 31st March

ASSETS 1 2 3 4 5 6 7 8 9 10 11
Equipment
Supplies 1,200 500 -720 980
Accounts Receivable 4,200 -2,000 11,500 13,700
Insurance Asset 1,800 -150 1,650
Cash 8,000 -600 -3,600 2,000 -2,400 2,000 -180 -900 4,320
15,200 20,650
LIABILITIES
Accounts Payable 1,400 -600 500 1,300
1,400 1,300

ASSETS LESS LIABILITIES 13,800 19,350

EQUALS

OWNERS INTEREST 0
Capital 13,800 13,800
Income 11,500 2,000 13,500
Expenses -3,600 -2,400 -180 -720 -150 -7,050
Distribution -900 -900

TOTAL OWNER INTEREST 13,800 19,350

 BEA1007 Tutorial 2: Accounting Equation
E3.3
Accounting Equation

TRANSACTION ASSETS - LIABILITIES = OWNERSHIP INTEREST

C I E D
Opening Balance 15,200 1,400 13,800
1. Paid R600 on AP -600 -600
2. Paid March Rent R3600 -3,600 -3,600
3. Received R2000 on account from customers 0
4. Purchased supplies on account R500 500 500
5. Billed customers R11,500 11,500 11,500
6. Paid wages R2,400 -2,400 -2,400
7. Received R2000 for cash delivery services 2,000 2,000
8. Paid water and electricity expense R180 -180 -180
9. Distributed R900 cash to owner -900 -900
10. Counted supplies on hand at end March R980 -720 -720
11. R150 insurance premiums related to March -150 -150

Total 20,650 1,300 13,800 13,500 -7,050 -900

19,350 19,350
Income Statement for year ending 31 Dec 20X6

Opening Final Balance

1 2 3 4 5 6 7 8 9 10 11 Profit

Revenue 11,500 2,000 13,500

Cost of sales 720 720
Gross Profit 12,780

Expenses
Rent 3,600 3,600
Insurance 150 150
News Advertising 0
Water + Electricity 180 180
Wages 2,400 2,400
Asset Usage Expense 0
Total Expense 6,330

Profit 6,450
 BEA1007 Tutorial 2: Accounting Equation
E3.6
Accounting Equation

28 Feb X0 28 Feb X1
ASSETS
Office Equipment 28,000 62,500
Office Supplies 7,000 5,500
Land and Buildings 0 1,650,000
Vehicle 62,000 62,000
Accounts Receivable 12,000 6,000
Insurance Asset 0 0
Cash 23,000 5,000
132,000 1,791,000
LIABILITIES
Accounts Payable 7,500 10,500
Bank loan 0 1,125,000
7,500 1,135,500

ASSETS LESS LIABILITIES 124,500 655,500

OWNERS INTEREST
Opening Owners Interest 124,500
Add Capital 450,000
Add Profit 441,000
Less Distribution -360,000

CLOSING OWNERS INTEREST 124,500 655,500

 BEA1007 Tutorial 2: Accounting Equation
E3.3
Accounting Equation

Date TRANSACTION ASSETS = LIABILITIES + OWNERSHIP INTEREST

Rent Office Accounts Accounts
Law books prepaid supplies Rec. Cash Payable C I E D
Opening Balance 4,000 20,000 24,000
1st 1. Rent prepaid for month R9000 9,000 -9,000
2. Office supplies R250 250 -250
3. Bought law library R5000 cash R15000 credit 20,000 -5,000 15,000
5th 4. Legal work done - R500 cash collected 500 500
7th 5. Purchased office supplies on credit R400 400 400
10th 6. Completed legal work on credit R6000 6,000 6,000
12th 7. Purchased law books on credit R2000 2,000 2,000
15th 8. Paid bookkeeper salary R3000 -3,000 -3,000
17th 9. Paid for office supplies purcased 7th July -400 -400
18th 10. Completed legal work on credit R4000 4,000 4,000
20th 11. Received payment for work on 10th July -6,000 6,000
22nd 12. Additional work on credit R3500 3,500 3,500
27th 13. Received payment for work on 18th July -4,000 4,000
31st 14. Paid July phone bill R250 -250 -250
15. Paid electricity R200 -200 -200
16. Paid secretary salary R3000 -3,000 -3,000
31st 17. Recognised rent expense R9000 -9,000 -9,000

Total 26,000 0 650 3,500 9,400 17,000 24,000 14,000 -15,450 0

39,550 39,550
P3.2
Accounting Equation
Transactions
1st July 1st July
ASSETS 1 2
Law books 4,000
Office supplies 250
Accounts Receivable
Rent Asset 9,000
Cash 20,000 -9,000 -250
24,000
LIABILITIES
Accounts Payable
0

ASSETS LESS LIABILITIES 24,000

EQUALS

OWNERS INTEREST
Capital 24,000
Income
Expenses
Distribution

TOTAL OWNER INTEREST 24,000

 BEA1007 Tutorial 2: Accounting Equation

1st July 5th 7th 10th 12th 15th 17th 18th 20th
3 4 5 6 7 8 9 10 11
20,000 2,000
400
6,000 4,000 -6,000

-5,000 500 -3,000 -400 6,000

15,000 400 2,000 -400

500 6,000 4,000

-3,000
22nd 27th 31st July 31st July
12 13 14 15 16 17
26,000
650
3,500 -4,000 3,500
-9,000 0
4,000 -250 -200 -3,000 9,400
39,550

17,000
17,000

22,550

0
24,000
3,500 14,000
-250 -200 -3,000 -9,000 -15,450
0

22,550
 BEA1007 Tutorial 2: Accounting Equation
P3.2
Statement of Financial Position as at 31st July

31st July
ASSETS
Law books 26,000
Office Supplies 650
Accounts Receivable 3,500
Insurance Asset 0
Cash 9,400
39,550
EQUITY AND LIABILITIES
Capital 22,550
Accounts Payable 17,000
39,550

Income Statement for month ending 31st July

31st July

Revenue 14,000

Expenses
Rent -9,000
Telephone -250
Water + Electricity -200
Wages -6,000
Total Expense -15,450

Profit / (Loss) -1,450

Statement of Changes in Equity for month ending 31st July

Balance at 1st July 24,000

Profit / loss for the period -1,450
Balance at 31st July 22,550