The following transactions took place in April 2020: 1. Mwale started his business with Cash 50,000 2. Purchased goods for cash 5,000 3. Purchased more goods for cash 10,000 4. Purchased goods from Mr Kuku on credit 15,000 5. Sold goods for cash 6,000 6. Sold more goods for Cash 12,000 7. Sold goods to Mr Phiri for 18,000 on account 8. Purchased goods on credit from Mr Kapalu 10,000 9. Purchased goods from Ms Chewe on credit 20,000 10. Sold goods for cash to Ms Mushiba 12,500 11. Sold goods to Mr Bbuku on account for 25,000 12. Mr Phiri returned goods worth 2,500 13. Returned goods to Ms Chewe 2,000 14. Received cash from Mr Phiri 9,900; allowed him discount 100 15. Paid Mr Kuku 7,880; discount allowed by him 120 16. Withdrew cash for personal use 1,000 17. Withdrew goods for private use (Cost ` 500, Selling Price ` 600) 18. Paid Salary to Mr Banda, an employee 500 19. Paid Rent for cash to Mr Limbani, landlord 500 Required: Demonstrate how the above transactions will affect the Accounting Equation. Prepare the respective books of original entry and record the transactions. Show the double entry for each transaction in the appropriate account.
The following transactions took place in April 2020:
1. Mwale started his business with Cash 50,000
2. Purchased goods for cash 5,000
3. Purchased more goods for cash 10,000
4. Purchased goods from Mr Kuku on credit 15,000
5. Sold goods for cash 6,000
6. Sold more goods for Cash 12,000
7. Sold goods to Mr Phiri for 18,000 on account
8. Purchased goods on credit from Mr Kapalu 10,000
9. Purchased goods from Ms Chewe on credit 20,000
10. Sold goods for cash to Ms Mushiba 12,500
11. Sold goods to Mr Bbuku on account for 25,000
12. Mr Phiri returned goods worth 2,500
13. Returned goods to Ms Chewe 2,000
14. Received cash from Mr Phiri 9,900; allowed him discount 100
15. Paid Mr Kuku 7,880; discount allowed by him 120
16. Withdrew cash for personal use 1,000
17. Withdrew goods for private use (Cost ` 500, Selling Price ` 600)
18. Paid Salary to Mr Banda, an employee 500
19. Paid Rent for cash to Mr Limbani, landlord 500
Required:
- Demonstrate how the above transactions will affect the
Accounting Equation. - Prepare the respective books of original entry and record the transactions.
- Show the double entry for each transaction in the appropriate account.
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