# Step-by-Step Solution Let's analyze each transaction, show its impact on the accounting equation, and specify the general ledger accounts affected. --- ## 1 SEP: Inventory bought on credit from a supplier for R25 000 - **Assets**: +R25,000 (Inventory increases) - **Liabilities**: +R25,000 ( Payable increases) - **Equity**: No effect **General Ledger:** - **Debit**: Inventory - **Credit**: Accounts Payable --- ## 3 SEP: Owner took inventory worth R5,000 for personal use - **Assets**: -R5,000 (Inventory decreases) - **Equity**: -R5,000 (Owner's Drawings decrease equity) - **Liabilities**: No effect **General Ledger:** - **Debit**: Drawings - **Credit**: Inventory --- ## 11 SEP: Bought furniture for cash, valued at R10,000 - **Assets**: No net effect (Furniture increases by R10,000; Cash decreases by R10,000) - **Equity**: No effect - **Liabilities**: No effect **General Ledger:** - **Debit**: Furniture - **Credit**: Cash --- ## 14 SEP: Money for services rendered for cash of R45,000 - **Assets: +R45,000 (Cash increases) - **Equity**: +R45,000 (Revenue increases) - **Liabilities**: No effect **General Ledger:** - **Debit**: Cash - **Credit**: Service Revenue --- ## 21 SEP: Sold materials valued at R70,000, 30% on credit - **Assets**: +R70,000 (Cash + Debtors/Accounts Receivable) - **Equity**: +R70,000 (Sales increases equity) - **Liabilities**: No effect **Calculation:** - Cash: 70% of 70,000 = R49,000 - Debtors (Accounts Receivable): 30% of 70,000 = R21,000 **General Ledger:** - **Debit**: Cash (R49,000), Accounts Receivable (R21,000) - **Credit**: Sales Revenue (R70,000) --- ## 25 SEP: Bought a new truck for the business valued at R250,000 - **Assets**: +R250,000 (Truck increases), -R250,000 (Cash decreases) — Net effect: - **Equity**: No effect - **Liabilities**: No effect **General Ledger:** - **Debit**: Truck - **Credit**: Cash --- # Summary Table | DATE | ASSETS | EQUITY | LIABILITIES | GENERAL LEDGER (DEBIT) | GENERAL LEDGER (CREDIT) | |--------|------------------------------------|-------------------|------------------|---------------------------|---------------------------| | 1 SEP | +R25,000 (Inventory) | | +R25,000 | Inventory | Accounts Payable | | 3 SEP | -R5,000 (Inventory) | -R5,000 | | Drawings | Inventory | | 11 SEP | +R10,000 (Furniture), -R10,000 (Cash) | | | Furniture | Cash | | 14 SEP | +R45,000 (Cash) | +R45,000 | | Cash | Service Revenue | | 21 SEP | +R49,000 (Cash), +R21,000 (Debtors)| +R70,000 | | Cash, Debtors | Sales Revenue | | 25 SEP | +R250,000 (Truck), -R250,000 (Cash)| | | Truck | Cash | --- ## **Final Summary** - **Assets:** Changed due to purchases, sales, and owner drawings. - **Equity:** Increased by revenue, decreased by owner drawings. - **Liabilities:** Increased due to credit purchases. - **General Ledger:** Every transaction affects at least two accounts, maintaining the accounting equation (**Assets = Equity + Liabilities**). Let me know if you want a running balance or further explanation for any transaction!

# Step-by-Step Summary of Transactions ## 1 SEP: Inventory bought on credit for R25,000 XYZ Construction Group increases its inventory asset by R25,000 while simultaneously incurring an accounts payable of R25,000. This transaction reflects a purchase made on credit, affecting both assets and liabilities. --- ## 3 SEP: Owner took inventory worth R5,000 for personal use The owner reduces the company’s inventory by R5,000, which is recorded as a drawing, thus decreasing equity by the same amount. This transaction highlights the personal use of business resources by the owner. --- ## 11 SEP: Bought furniture for cash, valued at R10,000 The company acquires furniture, increasing assets by R10,000, but this is offset by a decrease in cash by the same amount. There is no net effect on the overall assets, equity, or liabilities. --- ## 14 SEP: Money for services rendered for cash of R45,000 The business receives cash of R45,000, leading to an increase in both assets and equity due to the recognition of revenue. This transaction illustrates income generation through services provided. --- ## 21 SEP: Sold materials valued at R70,000, 30% on credit XYZ Construction records revenue of R70,000, with R49,000 received in cash and R21,000 as accounts receivable. This impacts both assets and equity positively, reflecting the sale of materials. --- ## 25 SEP: Bought a new truck for the business valued at R250,000 The company purchases a truck, increasing its asset value by R250,000 while decreasing cash by the same amount. This transaction results in no net effect on equity or liabilities. --- # Final Summary Each transaction affects the accounting equation, maintaining the balance between assets, liabilities, and equity. Key impacts include increases in assets and liabilities from credit transactions, revenue recognition enhancing equity, and the owner's withdrawals decreasing equity.

# Full Amount Calculation for XYZ Construction Transactions Here is a detailed breakdown of the calculations for each transaction, including the final amounts for assets, equity, and liabilities. ## 1 SEP: Inventory bought on credit for R25,000 - **Transaction:** Bought inventory on credit - **Assets:** - Inventory increased by R25,000 - **Liabilities:** - Accounts Payable increased by R25,000 ### Calculation: - Assets: +R25,000 - Liabilities: +R25,000 - **Net effect:** No change in equity. --- ## 3 SEP: Owner took inventory worth R5,000 for personal use - **Transaction:** Owner withdraws inventory - **Assets:** - Inventory decreased by R5,000 - **Equity:** - Owner's Drawings increased by R5,000 ### Calculation: - Assets: -R5,000 - Equity: -R5,000 - **Net effect:** Decrease in equity due to personal use. --- ## 11 SEP: Bought furniture for cash, valued at R10,000 - **Transaction:** Purchased furniture - **Assets:** - Furniture increased by R10,000 - Cash decreased by R10,000 ### Calculation: - Assets: +R10,000 (Furniture) - R10,000 (Cash) = R0 net effect - **Net effect:** No change in assets, equity, or liabilities. --- ## 14 SEP: Money for services rendered for cash of R45,000 - **Transaction:** Received cash for services - **Assets:** - Cash increased by R45,000 - **Equity:** - Revenue increased by R45,000 ### Calculation: - Assets: +R45,000 - Equity: +R45,000 - **Net effect:** Increase in both assets and equity. --- ## 21 SEP: Sold materials valued at R70,000, 30% on credit - **Transaction:** Sale of materials - **Assets:** - Cash received: 70% of R70,000 = R49,000 - Accounts Receivable: 30% of R70,000 = R21,000 - **Equity:** - Sales Revenue increased by R70,000 ### Calculation: - Assets: +R49,000 (Cash) + R21,000 (Accounts Receivable) = +R70,000 - Equity: +R70,000 - **Net effect:** Increase in both assets and equity. --- ## 25 SEP: Bought a new truck for the business valued at R250,000 - **Transaction:** Purchased a truck - **Assets:** - Truck increased by R250,000 - Cash decreased by R250,000 ### Calculation: - Assets: +R250,000 (Truck) - R250,000 (Cash) = R0 net effect - **Net effect:** No change in equity or liabilities. --- # Final Amounts ### Summary of Changes | Category | Total Change | |-----------------|----------------| | **Assets** | +R25,000 - R5,000 + R0 + R45,000 + R70,000 + R0 = +R140,000 | | **Equity** | R0 - R5,000 + R45,000 + R70,000 + R0 = +R110,000 | | **Liabilities** | +R25,000 + R0 + R0 + R0 + R0 = +R25,000 | ### Final Balances - **Assets:** Increased by R140,000 - **Equity:** Increased by R110,000 - **Liabilities:** Increased by R25,000 This maintains the accounting equation balance: \[ \text{Assets} = \text{Equity} + \text{Liabilities} \] \[ R140,000 = R110,000 + R25,000 \] Let me know if you need any further calculations or clarifications!