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- No 1: Source Document - Capital Contribution; ASSETS EFFECT - Increase R150,000; REASON - Cash deposited into business bank account; OWNER’S EQUITY EFFECT - Increase R150,000; REASON - Owner’s investment in the business; LIABILITIES EFFECT - No effect; REASON - Not a liability
- No 2: Source Document - Rent Payment; ASSETS EFFECT - Decrease R6,000; REASON - Cash paid by cheque for rent; OWNER’S EQUITY EFFECT - Decrease R6,000; REASON - Expense reduces equity; LIABILITIES EFFECT - No effect; REASON - Not a liability
- No 3: Source Document - Bank Statement; ASSETS EFFECT - Decrease R410; REASON - Bank charges deducted from account; OWNER’S EQUITY EFFECT - Decrease R410; REASON - Expense reduces equity; LIABILITIES EFFECT - No effect; REASON - Not a liability
- No 4: Source Document - Withdrawal Slip; ASSETS EFFECT - Decrease R900; REASON - Cash withdrawn by owner for personal use; OWNER’S EQUITY EFFECT - Decrease R900; REASON - Drawings reduce owner’s equity; LIABILITIES EFFECT - No effect; REASON - Not a liability
- No 5: Source Document - Vehicle Purchase Invoice; ASSETS EFFECT - Increase R60,000 (Vehicle) and Decrease R60,000 (Bank); REASON - Asset acquired via EFT payment; OWNER’S EQUITY EFFECT - No effect; REASON - Exchange of assets; LIABILITIES EFFECT - No effect; REASON - Not a liability
- No 6: Source Document - Cash Register Roll; ASSETS EFFECT - Increase R2,000; REASON - Cash received for services rendered; OWNER’S EQUITY EFFECT - Increase R2,000; REASON - Revenue increases equity; LIABILITIES EFFECT - No effect; REASON - Not a liability
- No 7: Source Document - Bank Statement; ASSETS EFFECT - Increase R180; REASON - Interest received on fixed deposit; OWNER’S EQUITY EFFECT - Increase R180; REASON - Income increases equity; LIABILITIES EFFECT - No effect; REASON - Not a liability