We appreciate your visit to The following transactions relate to SASCO Ltd Determine which of the following possibilities occurred as a result of each transaction an asset increased an asset. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!
Answer :
Final answer:
The transactions and their impacts on assets, liabilities, and equity of SASCO Ltd.
Explanation:
The following transactions relate to SASCO Ltd:
- Owner invested SR 50,000 bank and SR 100,000 cash to start the business in return for stock (Equity increased).
- Purchased supplies from Dubai for SR 10,000 (Assets decreased).
- Purchased equipment for SR 15,000 cash and SR 20,000 on account (Assets decreased).
- Purchased supplies of SR 5,000 by cheque and equipment of SR 10,000 on account (Assets decreased).
- Borrowed SR 45,000 from Bank Al Bilad (Liability increased).
- Provided cleaning services and received SR 40,000 cash (Assets increased).
- Paid salaries of SR 30,000 to employees (Assets decreased).
- Dividends of SR 8,000 are paid to shareholders (Equity decreased).
- SR 15,000 amount paid to the creditor against equipment purchase (Liability decreased).
- Paid outstanding electricity bills SR 2,500 (Assets decreased).
- Accounts receivable SR 3,000 (Assets increased).
- Paid loan to Al Bilad SR 45,000 (Liability decreased).
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