Question

Question 3 The following are the transactions of A. Sutherland for the month of January 2007: Type of Transaction Jan. 01 02 cash receipt credit purchase credit sale 03 04 cash payment credit sale credit purchase A. Sutherland paid R5 000 into a business bank account. Purchased goods for resale from W Co. Ltd. on credit, R900. Sold goods on credit to Arthur for R1 000 Purchased goods for resale and paid by cheque no. 901, R480. Sold goods on credit to Brown for R800 Purchased goods for resale from X Co. Ltd. on credit, R260 A cheque for R760 was received from Brown in full settlement of his account. Paid R234 to X Co. Ltd. by cheque no. 902 and received R26 discount Sold goods on credit to Cohen for R1 600. Purchased goods for resale from Y Co. Ltd. on credit, R520. Received a cheque from Cohen for R1 520 in full settlement of his debt. Paid wages by cheque no. 903, R240. Sold goods on credit to Doby for R600. Purchased goods for resale from Z Co. Ltd. on credit, R320. cash receipt cash payment credit sale credit purchase cash receipt cash payment credit sale credit purchase

Updated question.

Answer 1

1. a) Since the question is too lengthy, first 4 sub-parts of 1 a)have been attempted.

	Sales Journal (for recording Credit sales)
Date	Account Debited / Debtors	Sales - Cr (R)	VAT - Cr (R)	Accounts Receivable - Dr (R)
Jan-03	Arthur	877.19	122.81	1,000.00
Jan-08	Brown	701.75	98.25	800.00
Jan-15	Cohen	1,403.51	196.49	1,600.00
Jan-22	Doby	526.32	73.68	600.00
	Total	3,508.77	491.23	4,000.00
	Purchases Journal (for recording Credit purchases)
Date	Account Credited / Creditors	Purchases - Dr (R)	VAT - Dr (R)	Accounts Payable - Cr (R)
Jan-02	W Co.	789.47	110.53	900.00
Jan-09	X Co.	228.07	31.93	260.00
Jan-16	Y Co.	456.14	63.86	520.00
Jan-23	Z Co.	280.70	39.30	320.00
	Total	1,754.39	245.61	2,000.00

	Cash Receipts Journal
Date	Account Credited	Amount (R)
Jan-10	Brown	760
Jan-17	Cohen	1520
Jan-24	Sales	2320
	Total	4,600
	Cash Payment Journal
Date	Account Debited	Amount (R)
Jan-01	Bank (Contra entry of depositing cash in bank)	5000
Jan-04	Purchases	480
Jan-11	X Co.	234
Jan-18	Wages	240
Jan-24	Bank (Contra entry of depositing cash in bank)	2320
Jan-25	W Co.	810
	Total	9,084