Analyse the following three transactions (including VAT) according to the headings given below. Show the effect of the transactions on the accounting equation and assume the bank balance to be favourable and VAT control account to be a liability at all times. 12.7.1 The credit sale to B. Botha for R13 570 on 16 May 20.1. Mark-up on cost was $$ 100 \% $$. 12.7.2 The amount of R9 200 received from B. Botha on 3 June 20.1 in part payment of his ac- count. 12.7.3 The amount of R4 370 written off from the account of debtor, B. Botha, on 31 August 20.1.

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- Transaction 12.7.1: Increased Accounts Receivable and VAT Control Account, increased Revenue. - Transaction 12.7.2: Increased Bank, decreased Accounts Receivable. - Transaction 12.7.3: Decreased Accounts Receivable, decreased Equity (Bad Debts Expense).

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