Africa Traders is a business that sells furniture and equipment items to its customers. Due to an increase in demand of Africa Trader's furniture and equipment, Mr. A. Africa, who is the owner of Africa Traders, contributed his personal motor vehicle valued at R48 600 to the business to assist with deliveries in order to reduce the waiting period for deliveries to customers. Africa Traders is not a registered VAT vendor. What will be the effect of the motor vehicle contributed by Mr. A Africa on the accounting equation? Select one: O a. EQUITY = ASSETS - LIABILITIES Motor vehicle will increase non-current assets by No effect on equity R48 600 and Bank account No effect on Liabilities will decrease current assets by R48 600

Africa Traders is a business that sells furniture and equipment items to its customers. Due to an increase in demand of Africa Trader's furniture and equipment, Mr. A. Africa, who is the owner of Africa Traders, contributed his personal motor vehicle valued at R48 600 to the business to assist with deliveries in order to reduce the waiting period for deliveries to customers. Africa Traders is not a registered VAT vendor. What will be the effect of the motor vehicle contributed by Mr. A Africa on the accounting equation? Select one: O a. EQUITY = ASSETS - LIABILITIES Motor vehicle will increase non-current assets by No effect on equity R48 600 and Bank account No effect on Liabilities will decrease current assets by R48 600

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 11DQ

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