L3 (Fri) Recording of transactions in GJ ver 2.0

Question 1

What is the duality concept in accounting?

Answer 1

The duality concept states that every financial transaction affects at least two accounts, maintaining the accounting equation: Assets = Equity + Liabilities.

Question 2

On 12 February 2025, how much was received from debtor B Schaik?

Answer 2

R1 500.

Question 3

What accounts are affected by the cash receipt from B Schaik?

Answer 3

• Bank (Asset) = +1 500 (Dr) * Debtors control / B Schaik (Asset) = -1 500 (Cr)

Question 4

What is the journal entry for the cash receipt from B Schaik?

Answer 4

• Debit Bank: R1 500 * Credit Debtors control / B Schaik: R1 500

Question 5

What was paid on 2 February 2025?

Answer 5

Electricity account of R2 000 via EFT.

Question 6

What accounts are affected by the cash payment for electricity?

Answer 6

• Bank (Asset) = -2 000 (Cr) * Water and electricity (Expense) = -2 000 (Dr)

Question 7

What is the journal entry for the cash payment of electricity?

Answer 7

• Debit Water and electricity: R2 000 * Credit Bank: R2 000

Question 8

What was sold on 3 February 2025?

Answer 8

Goods to the value of R2 800 on credit.

Question 9

What accounts are affected by the credit sales transaction on 3 February?

Answer 9

• Debtors control / M Xxx (Asset) = +2 800 (Dr) * Sales (Income; Equity) = +2 800 (Cr)

Question 10

What is the journal entry for the credit sales transaction?

Answer 10

• Debit Debtors control / M Xxx: R2 800 * Credit Sales: R2 800

Question 11

What happens when goods are returned by the debtor?

Answer 11

• Debtors allowances (Expense) = +2 800 (Dr) * Debtors control / M Xxx (Asset) = -2 800 (Cr)

Question 12

What is the journal entry for a sales return?

Answer 12

• Debit Debtors allowances: R2 800 * Credit Debtors control / M Xxx: R2 800

Question 13

What was purchased on 5 February 2025?

Answer 13

A new laptop from CompX for R16 000 on credit.

Question 14

What accounts are affected by the credit purchase of the laptop?

Answer 14

• Equipment (Asset) = +16 000 (Dr) * Creditors control / CompX (Liability) = +16 000 (Cr)

Question 15

What is the journal entry for the credit purchase of the laptop?

Answer 15

• Debit Equipment: R16 000 * Credit Creditors control / CompX: R16 000

Question 16

What happens when a laptop purchased on credit is returned?

Answer 16

• Creditors control / CompX (Liability) = -16 000 (Dr) * Equipment (Asset) = -16 000 (Cr)

Question 17

What is the journal entry for the return of the laptop?

Answer 17

• Debit Creditors control / CompX: R16 000 * Credit Equipment: R16 000

Question 18

What does the perpetual inventory system track?

Answer 18

It tracks both sales price (SP) and cost price (CP) for inventory.

Question 19

In the perpetual inventory system, how is the influence of a sale recorded?

Answer 19

• Debtors control (SP) = + * Sales (SP) = + * Cost of sales (CP) = - * Inventory (CP) = -

Question 20

What is the total cost of sales if the sales price is R30 000?

Answer 20

R24 000.

Question 21

How do you record a credit sale in the general journal?

Answer 21

• Debit Debtors control: R30 000 * Credit Sales: R30 000 * Debit Cost of sales: R24 000 * Credit Inventory: R24 000

Question 22

What is the effect of recording a credit sales return on inventory?

Answer 22

• Debit Inventory: R1 200 * Credit Cost of sales: R1 200

Question 23

The formula for the accounting equation is ______.

Answer 23

Assets = Equity + Liabilities.