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Concept explainers
On 2 January 20.7, AC Entity commenced with activities and during January 20.7 the entity
incurred the following transactions:
1. On 2 January 20.7, the owner made the property that AC Entity utilises available for the
exclusive use of the entity. The property was registered in the owner’s name a few days before
2 January 20.7. The purchase price of the property was R1 200 000 (R200 000 for the land and
R1 000 000 for the buildings).
2. On 2 January 20.7, the owner opened a cheque account for the entity and deposited R1 800
000 in the account.
3. On 2 January 20.7, furniture and equipment to the amount of R225 000 was ordered. The
supplier, Payable K, delivered the furniture and equipment on 5 January 20.7 to AC Entity’s
premises. The invoice price is R225 000 and it was agreed with Payable K to pay the outstanding
amount on 30 January 20.7.
4. Trade inventories to the amount of R20 000 was ordered on 7 January 20.7 and it was agreed
with Payable L that the outstanding amount will be paid 30 days after delivery. On 25 January
20.7, Payable L delivered the trade inventories to AC Entity’s premises. The invoice price is R20
000 and the invoice reflects that the amount is payable on 24 February 20.7.
5. On 30 January 20.7, the amount due to Payable K was paid.
Required:
a) Open appropriate accounts and record the transactions into the accounts.
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%202%20Activity%201.pdf
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Unit 2 Double entry rules.pdf X
Unit 2-collaborate question sol X
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1 of 1 2
On 2 January 20.7, AC Entity commenced with activities and during January 20.7 the entity
incurred the following transactions:
Required:
UNIT 2 Activity 1.pdf
1. On 2 January 20.7, the owner made the property that AC Entity utilises available for the
exclusive use of the entity. The property was registered in the owner's name a few days before
2 January 20.7. The purchase price of the property was R1 200 000 (R200 000 for the land and
R1 000 000 for the buildings).
2. On 2 January 20.7, the owner opened a cheque account for the entity and deposited R1 800
000 the account.
A X P
3. On 2 January 20.7, furniture and equipment to the amount of R225 000 was ordered. The
supplier, Payable K, delivered the furniture and equipment on 5 January 20.7 to AC Entity's
premises. The invoice price is R225 000 and it was agreed with Payable K to pay the outstanding
amount on 30 January 20.7.
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4. Trade inventories to the amount of R20 000 was ordered on 7 January 20.7 and it was agreed
with Payable L that the outstanding amount will be paid 30 days after delivery. On 25 January
20.7, Payable L delivered the trade inventories to AC Entity's premises. The invoice price is R20
000 and the invoice reflects that the amount is payable on 24 February 20.7.
5. On 30 January 20.7, the amount due to Payable K was paid.
O
a) Open appropriate accounts and record the transactions into the accounts."
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