FAC1503 ASSIGNMENT 8 FOR 2024
EXPECTED QUESTIONS AND ANSWERS
Four things to consider when making a double-entry transaction - ANSWER-Think
about effect of entry on BAE
Identity components involved
Determine which increase and which decrease
Be sure amounts are equal
First step in accounting cycle - ANSWER-Completion of a source document
Two thing transactions may do - ANSWER-Create income or create expense
Affect assets/equity/liabilities
Transactions that affect only assets, equity and liabilities - ANSWER-Capital
contributions
Getting a loan
Purchase an asset for cash
Buying asset on credit
Payments to creditors
Withdrawals by owner
Transactions that affect income and expenditure - ANSWER-Income
Expenditure
Income in form of credit
Expenditure in form of credit
Transaction that only affects assets - ANSWER-Receiving payment from debtor
Subtract withdrawals from this category - ANSWER-Capital
General ledger - ANSWER-Contains transactions of assets, equity and liabilities
The contra ledger account - ANSWER-The other ledger account in the transaction
Steps to take when recording a transaction - ANSWER-Identify the amounts involved
Determine which accounts to involve and how
Ensure amounts are equal
Indicate the transaction's date
Identify the contra ledger account
Indicate folio number of subsidiary journal
Two transactions that decrease equity - ANSWER-Drawings
Expenditure
EXPECTED QUESTIONS AND ANSWERS
Four things to consider when making a double-entry transaction - ANSWER-Think
about effect of entry on BAE
Identity components involved
Determine which increase and which decrease
Be sure amounts are equal
First step in accounting cycle - ANSWER-Completion of a source document
Two thing transactions may do - ANSWER-Create income or create expense
Affect assets/equity/liabilities
Transactions that affect only assets, equity and liabilities - ANSWER-Capital
contributions
Getting a loan
Purchase an asset for cash
Buying asset on credit
Payments to creditors
Withdrawals by owner
Transactions that affect income and expenditure - ANSWER-Income
Expenditure
Income in form of credit
Expenditure in form of credit
Transaction that only affects assets - ANSWER-Receiving payment from debtor
Subtract withdrawals from this category - ANSWER-Capital
General ledger - ANSWER-Contains transactions of assets, equity and liabilities
The contra ledger account - ANSWER-The other ledger account in the transaction
Steps to take when recording a transaction - ANSWER-Identify the amounts involved
Determine which accounts to involve and how
Ensure amounts are equal
Indicate the transaction's date
Identify the contra ledger account
Indicate folio number of subsidiary journal
Two transactions that decrease equity - ANSWER-Drawings
Expenditure
