High School

Transactions for March 2020:

- **02:** Rented a building from Jones Estates and paid the rent per EFT no. 1, R6,000.
- **03:** Made a cash withdrawal at the bank for R15,000. Of this amount, R3,000 is for cash float, R11,000 is for consumable stores, and the rest is for repairs done to a window on the premises.
- **04:** Bought a delivery van per EFT from Quick Motors, R180,000.
- **05:** Bought stationery from LNA and paid by EFT, R1,200.
- **05:** Made an EFT payment to Micro for consumable stores, R2,800.
- **07:** Withdraw cash from the bank for the week's wages, R2,600.
- **10:** Paid the telephone account to MM Communications per EFT, R3,180.
- **12:** Made an EFT payment to Getty Suppliers for the purchasing of Equipment, R90,000 and stationery, R2,400.
- **18:** Bought consumable stores per EFT from Trutek, R3,000.
- **21:** Withdraw cash from the bank for the week's wages, R2,600.
- **30:** Paid salaries for the month per EFT, R6,000. The salary earner is W. Walterse.
- **30:** Paid Bhengu Municipality per EFT for water and electricity, R4,230.
- **30:** The owner withdraws R8,000 per EFT for his own use.
- **30:** The bank statement was received from Lume Bank. Bank charges, R580, were deducted.

Answer :

These transactions are representative of a business's financial activities for March 2020, and their recordings would be part of accounting tasks. We will go through each transaction step by step to understand their implications and how they could be recorded in a business's financial records.

  1. March 2: A building was rented from Jones Estates, and rent was paid by EFT (Electronic Funds Transfer) for R6,000. This would be recorded as a debit to the Rent Expense account and a credit to the Bank account, indicating that money was spent to cover rental costs.

  2. March 3: A cash withdrawal from the bank amounted to R15,000. From this, R3,000 was set aside for cash float, R11,000 for consumable stores, and R1,000 for repairs to a window. This transaction would involve a debit to the Cash on Hand (for cash float), Consumable Stores Expense, and Repairs Expense accounts, and a credit to the Bank account.

  3. March 4: A delivery van was bought from Quick Motors via EFT for R180,000. This would be recorded as a debit to the Delivery Vans account and a credit to the Bank account.

  4. March 5: Stationery was purchased from LNA with an EFT payment of R1,200. This would be recorded as a debit to the Office Supplies or Stationery Expense account and a credit to the Bank account.

    Additionally, another EFT payment to Micro for R2,800 related to consumable stores should be recorded as a debit to the Consumable Stores Expense account and a credit to the Bank account.

  5. March 7: Cash withdrawn from the bank for the week's wages was R2,600. This would be recorded as a debit to the Wages Expense account and a credit to the Bank account.

  6. March 10: An EFT payment of R3,180 was made to MM Communications for a telephone account. This would be a debit to the Telephone Expense account and a credit to the Bank account.

  7. March 12: An EFT payment of R90,000 was made to Getty Suppliers for equipment and R2,400 for additional stationery. This would involve a debit to the Equipment account (R90,000) and Stationery Expense account (R2,400) and a credit to the Bank account for the total payment amount, R92,400.

  8. March 18: Consumable stores were purchased per EFT from Trutek for R3,000. This transaction would be recorded as a debit to the Consumable Stores Expense account and a credit to the Bank account.

  9. March 21: Cash was withdrawn from the bank for the week's wages, totaling R2,600. Again, record this as a debit to the Wages Expense account and a credit to the Bank account.

  10. March 30: Various transactions occur on this date:

  • Paid salaries to W. Walterse totaling R6,000 via EFT, recorded as a debit to the Salaries Expense account and a credit to the Bank account.
  • Paid Bhengu Municipality for water and electricity via EFT for R4,230, recorded as a debit to the Utilities Expense account and a credit to the Bank account.
  • The owner withdrew R8,000 from the business for personal use (drawings), recorded as a debit to the Owner's Drawings account and a credit to the Bank account.
  • Bank statement showed R580 in charges, which is recorded as a debit to the Bank Charges Expense account and a credit to the Bank account.

These transaction recordings help in tracking the inflow and outflow of cash, ensuring accurate financial reporting and aiding in financial decision-making for the business.