Calculate jacob equity in his business on june

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Question - Jacob Smith started a new business called Smith's Trading on 1 June 2021.

Smith's Trading uses the perpetual inventory system.

Jacob Smith had the following funds available for the business:

R100 000 in the business's bank account of which R50 000 was from his personal funds and R50 000 was from a bank loan obtained.

He entered into the following transactions during June 2021:

Date - Transaction

02 June Purchased merchandise via EFT, R20 000

08 June Purchased computer equipment on credit, R15 000

21 June Withdraw R3 000 cash for the petty cash

30 June Paid R5 000 off the bank loan

Required - Calculate Jacob's equity in his business on 30 June 2021 by showing the effect of all transactions on the accounting equation. Ignore VAT.

Reference no: EM133157915

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