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Please help me answer this question, VAT - 15%

Please help me answer this question, VAT - 15%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help me answer this question, VAT - 15%
Damask Traders trades in roses. The business is owned by Rose Nasrin and started trading recently and on 1 September 2021, the following balances appeared in the trial balance. Capital R25 000 Bank (unfavourable) R4 000 Inventory R37 000 Loan R5 000 Sales R11 000 Cost of sales R8 000 Damask is not registered for VAT, uses a perpetual inventory system and entered into the following transactions during September 2021. Date Details 1 Sold some roses, with a cost price of R12 000 for R18 000. Customer paid in cash. 2 Paid rent for the premises via EFT, R6 000. Purchased some equipment on credit from Pavlon suppliers, R9 000 25 Paid the newly employed nursery manager her monthly salary, R6 500. 30 The bank statement reflected bank charges of R50, interest on the overdraft of R14 and interest on the favourable balance of R3 for the month. Required: Calculate Rose Nasrin's equity in her business on 30 September 2021, by calculating the opening balances and showing the effect of each individual transaction on the accounting equation. Clearly indicate whether the account will be debit/credited when analysing the transactions. Example: Owner deposit R5 000 directly into the bank account as additional capital contribution. Date Assets = Owner's Equity Liabilities е.g. Dr Bank Cr Capital + 5 000 + 5 000
Transcribed Image Text:Damask Traders trades in roses. The business is owned by Rose Nasrin and started trading recently and on 1 September 2021, the following balances appeared in the trial balance. Capital R25 000 Bank (unfavourable) R4 000 Inventory R37 000 Loan R5 000 Sales R11 000 Cost of sales R8 000 Damask is not registered for VAT, uses a perpetual inventory system and entered into the following transactions during September 2021. Date Details 1 Sold some roses, with a cost price of R12 000 for R18 000. Customer paid in cash. 2 Paid rent for the premises via EFT, R6 000. Purchased some equipment on credit from Pavlon suppliers, R9 000 25 Paid the newly employed nursery manager her monthly salary, R6 500. 30 The bank statement reflected bank charges of R50, interest on the overdraft of R14 and interest on the favourable balance of R3 for the month. Required: Calculate Rose Nasrin's equity in her business on 30 September 2021, by calculating the opening balances and showing the effect of each individual transaction on the accounting equation. Clearly indicate whether the account will be debit/credited when analysing the transactions. Example: Owner deposit R5 000 directly into the bank account as additional capital contribution. Date Assets = Owner's Equity Liabilities е.g. Dr Bank Cr Capital + 5 000 + 5 000
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