Question

Question 1 (Amounts are 14% VAT inclusive, where applicable. All calculations are to be done to the nearest cent) Required Record the transactions in the correct subsidiary journals, post to the general ledger, debtors ledger and creditors ledger, and draw up a trial balance. On 1 January 2007, Pets Traders had the following balances: Stock R1 500 -Capital R2 287 Bank (favourable)R 1 200 - VAT control (Cr.) R900 Debtors: A. Adams R171 Debtors:B. Brown R855 Creditors: F.Farmell R1197 Creditors: P.Peters R342 Furniture R1 000 The following transactions took place during January 2007: Cash sales - Cash Register Date Jan. 7- R228 Jan.14- R342 Jan. 21 -R456 Jan. 28 -R 570 Original credit invoices received: Date Jan. 4- P. Smith for goods R684 Jan 8. -Lotz for stationery 57 Jan10 -S. Pretorius for office desk R285 Jan 16 - F. Farmell for goods R2 052 Duplicate credit invoices issued: Date Jan. 11- A. Adams for goods R1 026 Jan 17 - B. Snell for goods R1 482 Duplicates of receipts issued: Date Jan. 4- No. 10 - B. Brown in settlement less 5% discount Jan.10 - No 11 -H. Owner for rent of the shop R570 Jan.18- No 12 - A. Debt for an account written off as bad debt during November 1995 R 228 Jan.25 -13 - S. Swart for old furniture sold R57 Credit notes received for goods returned: Date Jan. 8- P. Peter R114 Cheques issued: Date Jan. 2 -No. 40 - F. Farmell in settlement less 5% discount Jan.4- No 41 Cash for petty cash imprest R100 Jan 5- No42 - Makro for goods R570 Jan.10- No 43 -SABC for advertising R342 Jan. 15- No 44 - P. Peter for goods R2 280 Jan. 20- No 45- City council for electricityR 228 Jan.20 - No 46 -SARS (VAT) R900 Jan.25 -No 47 -P. Flat for rent of private house of the owner R456 Sundry transactions: Jan. 31 Items on the bank statement, but not in the cash book: (a) Service fees R50 (b) Interest on savings account R30 (c) Cheque from S. Swart unpaid (refer January 25) Closing stock: Goods 4 500

Answer 1

In the books of Pet Date Particulars Dr Russian Rubble Cr Russian Rubble 7th Jan Cash 14th Jan Cash 21st Jan Cash 28th Jan Cash Sales (Being cash sales accounted) 228.00 342.00 456.00 570.00 1,596.00 4th Jan 600.00 84.00 Purchases Vat P.Smith (Being purchase of goods accounted for) 684.00 57.00 8th Jan Stationary Lotz (Being purchase of stationary accounted for) 57.00 10th Jan 285.00 Office Desk S. Pretorius (Being office desk purchased accounted for) 285.00

1,800.00 252.00 16th Jan Purchases VAT F.Farmell (Being purchases of goods from F.Farmell accounted) 2,052.00 11th Jan Adams 1,026.00 Vat 126.00 900.00 Sales (Being sales of goods on credit accounted for) 1,482.00 17th Jan Snell Vat Sales (Being sales of goods on credit accounted for) 182.00 1,300.00 4th Jan 812.00 43.00 Bank Dis A Adams (Being receipt of amount from A Adams ,receipt # 10) 855.00 570.00 10th Jan Bank Rent (Being rent receipt issued for the rent of the shop,receipt # 11) 570.00

228.00 18th Jan Bank Bad debt recovered (Being Bad debt recovered receipt # 12) 228.00 57.00 25 th Jan Bank Furniture (Being furniture sold ,receipt #13) 57.00 Sth Jan 114.00 P. Peter Purchase return (Being credit note received) 114.00 2,052.00 2nd Jan F.Farmell Bank Discount (Being invoice paid for goods of F.Farmell) 1,949.00 103.00 4th Jan 100.00 Petty Cash Bank (Being payment made for petty cash ) 100.00 5th Jan 570.00 Bank Makro (Beino pavment for goods made to Makro 570.00

342.00 10th Jan Advertising Bank (being amount paid for advertising) 342.00 2,280.00 15th Jan P.Peter Bank (Being amount paid for goods) 2,280.00 228.00 20 th Jan Electricity Bank (Being electricity bill for city council paid) 228.00 900.00 20 th Jan Vat Bank (Being amount piad for Vat) 900.00 25th Jan 456.00 Rent Bank (Being rent piad for the private house of owner) 456.00 Jan-31 50.00 Service Fees Bank (Being service fees charged accounted) 50.00