Question 5.8 You are the bookkeeper of Milano Traders. The business is a registered VAT vendor and frades only with regi

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Question 5 8 You Are The Bookkeeper Of Milano Traders The Business Is A Registered Vat Vendor And Frades Only With Regi 1 (79.54 KiB) Viewed 38 times

Question 5 8 You Are The Bookkeeper Of Milano Traders The Business Is A Registered Vat Vendor And Frades Only With Regi 2 (82.41 KiB) Viewed 38 times

Question 5 8 You Are The Bookkeeper Of Milano Traders The Business Is A Registered Vat Vendor And Frades Only With Regi 3 (67.11 KiB) Viewed 38 times

Question 5.8 You are the bookkeeper of Milano Traders. The business is a registered VAT vendor and frades only with registered VAT vendors. The business charges 15% VAT on all its sales. All amounts are inclusive of VAT unless VAT is not applicable. of October 20.9 necessary for the preparation of the journals specified below. The business price before any given trade discounts, le-the gross margin is 40% unless otherwise uses the perpetual wwentory system and trading inventory is marked up by 40% on selling original Invoices, re-numbered original credit notes, cheque counterfoils and Journal specified. W. OCT, 'CC and UR' are the source document codes for re-numbered vouchers respectively, Milano Traders does not expect to award any settlement discounts, nor does it expect to quality for any settlement discounts. All settlement discounts are therefore deemed to be incidental in nature. Source documents of Milano Traders for the month of October 20.9: Date Details Source document no 1201 Description Amount (R) 1 31 875.00 4 Igloo (Pty) Ltd Leak City Igloo (Pty) Ltd CC435 656.25 5 B Cash OCT173 CC436 2 868.75 24 375.00 9 Igloo (Pty) Ltd 27 030.00 11 11 Mad Suppliers Gorton CC Trading inventory purchased Payment for business plumbing services (repairs and maintenance) Trading inventory returned to the supplier Drow a cash cheque for petty cash. Payment on account to Igloo (Pty) Ltd. No settlement discount was received because the CCA37 account was not paid in full (Balance owing | at the beginning of the month: R 4781.00). CC438 Trading Inventory purchased. IV202 Trading inventory purchased, B. Moodley contributed furniture and fittings JR254 to the business. All legislative requirements have been met for the full VAT amount to be claimed CC439 Trading inventory purchased: R 48 250.00 less a 10% trade discount N203 Purchase of packing materials Cash purchase of printing paper (postage and CC440 stationery) OCT174 Trading brwventory returned to the supplier. Purchased a staff room coffee machine for 1204 the purposes of staff entertainment. 45 787.50 34 500.00 12 B. Moodley 13 Trent Traders 22 500.00 13 BURTON 14 The Paper Port ? 16 Gorton CC 1 275.00 16 Sony 1 350.00 3 450.00 7 012.50 178
arning Unit 5 16 Sony IV205 Southem Motors CC441 18 5362.50 78 750.00 20 Gorton CC CC442 Purchased a laptop for sales representative. Purchased a sedan vehicle for sales representative (motor vehicles). Settlement of account with Gorton CC, less 10% settlement discount. (Balance owing at the beginning of the month: R 4 140.00). 10% settlement discount received from Gorton CC for settlement of the account. (Refer to cheque no. CC442). 20 Gorton CC JR255 2 21 Cash CC443 21 B. Moodley 4500.00 JR256 21 Sony OCT175 179.52 Samuraai 21 Traders 24 EWC IV206 Drawings by the owner. Drawings of trading inventory with a selling price including VAT of R1 875.00. A rebate was granted on the laptop for sales representative purchased on 16 October 20.9. Trading inventory: R 5 911.76 less a 15% trade discount Delivery expenses charged on account. Cash purchase of a delivery motorcycle used in the production of taxable supplies (motor vehicles). 2 IV207 930.00 25 Southern Motors CC444 28 125.00 26 Durb Traders CC445 51 187.50 27 BURTON 280.50 OCT176 577.88 OCT177 Trading inventory purchased. Defective packing materials returned to the supplier Received for trading inventory returned to the supplier Petrol charged on account Payment for business office refreshments Paid K. Minaar his monthly salary by cheque. Samuraai 28 Traders 28 FG Motors 31 DAFAR 31 K Minaar 31 Samuraai Traders 1 537.50 562.50 IV208 CC446 CC447 9 600.00 375.00 JR257 ? 31 NA Interest charged by Samuraai Traders on the overdue account of Milano Traders. It was realised that equipment purchased for R841.50 during September 20.9 was erroneously debited to the Packing materials account. Correct the error. JR258
Required: Use the relevant transactions from those given above to complete (i) to (iv) below for the month of October 20.9. 0 (11) Creditors journal (CJ10) with analysis columns for creditors control, VAT, trading inventory and sundries. Mark clearly how the different amounts or totals will be posted to the general ledger at month-end. Creditors allowances journal (CAJ10) with analysis columns for creditors, VAT, trading inventory and sundries. Mark clearly how the different amounts or totals will be posted to the general ledger at the month-end. Cashbook payments (CBP10) with analysis columns for bank, creditors control, VAT, trading inventory and sundries. Mark clearly how the different amounts or totals will be posted to the general ledger month-end. Settlement discounts are recorded in the general journal. General journal (GJ10). (11) (iv) Note: • Clearly specify whether the VAT column is Input or output VAT. • Original invoices and original credit notes have been renumbered. All amounts are INCLUSIVE of VAT, unless VAT is not applicable