actions - April 20.5: Terry started his business by transferring R6 000 cash and a vehicle worth R50 into the business as capital. Paid R80 for cell-phone charges Bought 100 T-shirts on account from TS Manufacturers. Sold 30 T-shirts for cash and deposited this into the bank account. (Also enter the cost price of the T-shirts sold). Paid R80 for one advertisement in the Highway Mail. Sold 20 T-shirts for cash and deposited this into the bank account. (Also enter the cost price of the T-shirts sold). Paid R300 for petrol. Sold 30 T-shirts for cash. He deposited this money into the bank account. (Also enter the cost price of the T-shirts sold). Settled the amount owed to TS Manufacturers (refer to the 3rd). Terry withdrew R2 500 cash for personal use. Terry took 5 T -shirts home for personal use. Recelved a loan from JK Loans, R10 000. Bought another 200 T -shirts on account from TS Manufacturers. Placed 5 advertisements in the Highway Mail and paid R80 each. Paid R400 for petrol. Sold 90 T-shirts for cash. Deposited this money into the bank account. (Also enter the cost price of the T-shirts sold). JK Loans charged interest of R80 to the loan account. (This must be capitaliseo added to the loan account) Terry drew R8 000 cash plus a further 3 T-shirts for personal use. The bank statement reflected interest of R15 on the bank account, and bank charges of R70. Repaid R5 000 of the loan.

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To solve this problem, we will track Terry's business transactions step by step, recording the effects on cash, inventory, and liabilities. We will summarize each transaction and its impact on the accounting equation (Assets = Liabilities + Equity).

### Known Conditions:
1. Initial capital: R6,000 cash + R50 vehicle
2. Transactions involving cash, inventory (T-shirts), and liabilities (loan and accounts payable).

### Step-by-Step Transactions:

1. **Initial Capital Contribution:**
   - Cash: R6,000
   - Vehicle: R50
   - **Total Assets = R6,050**

2. **Paid R80 for cell-phone charges:**
   - Cash decreases by R80.
   - **Total Assets = R6,050 - R80 = R5,970**

3. **Bought 100 T-shirts on account from TS Manufacturers:**
   - Inventory increases by R100 (assuming each T-shirt costs R1).
   - Accounts Payable increases by R100.
   - **Total Assets = R5,970 + R100 = R6,070**

4. **Sold 30 T-shirts for cash:**
   - Cash increases by R30 (assuming selling price is R1 each).
   - Inventory decreases by R30 (cost price).
   - **Total Assets = R6,070 + R30 - R30 = R6,070**

5. **Paid R80 for one advertisement:**
   - Cash decreases by R80.
   - **Total Assets = R6,070 - R80 = R5,990**

6. **Sold 20 T-shirts for cash:**
   - Cash increases by R20.
   - Inventory decreases by R20 (cost price).
   - **Total Assets = R5,990 + R20 - R20 = R5,990**

7. **Paid R300 for petrol:**
   - Cash decreases by R300.
   - **Total Assets = R5,990 - R300 = R5,690**

8. **Sold 30 T-shirts for cash:**
   - Cash increases by R30.
   - Inventory decreases by R30 (cost price).
   - **Total Assets = R5,690 + R30 - R30 = R5,690**

9. **Settled the amount owed to TS Manufacturers:**
   - Cash decreases by R100.
   - Accounts Payable decreases by R100.
   - **Total Assets = R5,690 - R100 = R5,590**

10. **Terry withdrew R2,500 cash for personal use:**
    - Cash decreases by R2,500.
    - **Total Assets = R5,590 - R2,500 = R3,090**

11. **Terry took 5 T-shirts home for personal use:**
    - Inventory decreases by R5 (cost price).
    - **Total Assets = R3,090 - R5 = R3,085**

12. **Received a loan from JK Loans, R10,000:**
    - Cash increases by R10,000.
    - Loan (Liability) increases by R10,000.
    - **Total Assets = R3,085 + R10,000 = R13,085**

13. **Bought another 200 T-shirts on account from TS Manufacturers:**
    - Inventory increases by R200.
    - Accounts Payable increases by R200.
    - **Total Assets = R13,085 + R200 = R13,285**

14. **Placed 5 advertisements in the Highway Mail and paid R80 each:**
    - Cash decreases by R400 (5 x R80).
    - **Total Assets = R13,285 - R400 = R12,885**

15. **Paid R400 for petrol:**
    - Cash decreases by R400.
    - **Total Assets = R12,885 - R400 = R12,485**

16. **Sold 90 T-shirts for cash:**
    - Cash increases by R90.
    - Inventory decreases by R90 (cost price).
    - **Total Assets = R12,485 + R90 - R90 = R12,485**

17. **JK Loans charged interest of R80 to the loan account:**
    - Loan increases by R80.
    - **Total Liabilities = R10,000 + R80 = R10,080**

18. **Terry drew R8,000 cash plus a further 3 T-shirts for personal use:**
    - Cash decreases by R8,000.
    - Inventory decreases by R3 (cost price).
    - **Total Assets = R12,485 - R8,000 - R3 = R4,482**

19. **The bank statement reflected interest of R15 on the bank account, and bank charges of R70:**
    - Cash increases by R15 (interest).
    - Cash decreases by R70 (bank charges).
    - **Total Assets = R4,482 + R15 - R70 = R4,427**

20. **Repaid R5,000 of the loan:**
    - Cash decreases by R5,000.
    - Loan decreases by R5,000.
    - **Total Assets = R4,427 - R5,000 = -R573 (indicating a negative cash balance)**

### Summary of Final Balances:
- **Cash:** -R573
- **Inventory:** R200 (after accounting for T-shirts taken for personal use)
- **Vehicle:** R50
- **Loan:** R5,080 (after repayment)
- **Accounts Payable:** R200 (for T-shirts purchased on account)

This summary provides a clear view of Terry's financial position after all transactions.
After all transactions, Terry has: - **Cash:** -R573 (a deficit) - **Inventory:** R200 worth of T-shirts - **Vehicle:** R50 - **Loan:** R5,080 - **Accounts Payable:** R200 This indicates that Terry is operating with a negative cash balance and owes R200 to TS Manufacturers.

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