Question 1 Time left 1:08:17
Answer saved
Marked out of 10.00
Bongwa Traders is a registered VAT vendor and uses the periodic inventory system. Bongwa Traders sells custom made jewellery for cash or
on credit. The jewellery is made and sold to raise awareness for nature conservation and the importance of various indigenous animals and
plants for local communities. Each piece of jewellery is accompanied by a pamphlet explaining the importance of a specific plant or
animal linked to the piece.
On 1 March 2023, Bongwa Traders sold a custom set of earrings and necklace on credit to L Sakhe for R11 575 (VAT inclusive). On 27 April
2023, L Sakhe settled her account and received R575 (VAT exclusive) discount for early settlement.
Required:
Record the transaction that took place on 27 April 2023 in the applicable subsidiary journal.
Instructions for numeric responses:
1. Use a full stop to indicate any decimals (eg: 1000.01)
2. Round off to the second decimal after the full stop (eg: 50.56)
3. An amount which will affect a Dr entry in the general ledger must be indicated by using a negative sign in front of the amount (eg:
-1000.01) (This is not applicable for the Bank column)
4. When no amount needs to be entered in a column, then indicate this by entering "0" in the column.
Bongwa Traders
Cash receipts journal – April 2023
Day Details Analysis of receipt Bank Trade receivables Settlement VAT
discount Output
granted
R R R R R
27 L Sakhe 11000.00 11000.00 11575.00 500.00 75.00
,Question 2
Answer saved
Marked out of 2.00
Which one of the following accounts will be used to determine gross profit/loss if the inventory control system in use does not determine
the cost of sales each time a sale is recorded?
Select one:
a. Gross profit/loss account
b. Trading account
c. Profit or loss account
d. Income
Clear my choice
,Question 3
Answer saved
Marked out of 7.00
Africa Traders, a registered VAT vendor, manufactures and sells renewable energy equipment. The VAT rate is 15% and Africa Traders makes
use of the periodic inventory system.
Extract from the financial records of Africa Traders for the month of January 2023:
R
VAT Input account opening balance (1 January 12 450
2023)
VAT Output account opening balance (1 January 18 900
2023)
VAT column in Purchases journal 23 740
VAT column in Sales journal 25 860
VAT column in Purchases returns journal 1 660
VAT column in Sales returns journal 2 340
Required:
Complete the VAT Input account in the general ledger of Africa Traders for the month ending 31 January 2023.
Instructions:
1. Use a full stop to indicate any decimals (eg: 1000.01)
2. Round off to the second decimal after the full stop (eg: 50.56)
3. If no amount should be recorded in any of the numeric spaces, please indicate it by filling in a zero ("0")
Dr VAT Input B1 Cr
2023 R 2023 R
Jan 1 Balance b/d Jan 1 Balance b/d
12450.00 0
31 31
Trade payables PJ1 23740.00 Trade payables PRJ1 1660.00
Balance c/d Balance c/d
0 34530.00
36190.00 36190.00
Feb 1 Balance b/d Feb 1 Balance b/d
34530.00 0
, Question 4
Answer saved
Marked out of 2.00
Outstanding deposits or payments that were reflected on the previous month's bank reconciliation statement, will still be reflected in the
current month's bank reconciliation statement as long as ….?
Select one:
a. deposits or payments that were outstanding on the previous month's bank reconciliation statement will never be reflected in the
current month's bank reconciliation statement, regardless of the reasons as they were addressed on the previous month's bank
reconciliation statement.
b. deposits or payments are still not reflected in the current month's bank statement and have not lapsed or cancelled.
c. deposits or payments are now reflected in the current month's bank statement and not in the current month's cash journals.
d. deposits or payments are cancelled and recorded in the relevant cash journals.
Clear my choice
Question 5
Answer saved
Marked out of 5.00
The inexperienced bookkeeper of Africa Traders needs your assistance compiling the bank reconciliation of Africa Traders for the month
ending 28 February 2022. Please match the transaction provided with where it should be recorded whilst compiling the bank reconciliation.
A deposit to the amount of R7 600.00 that appears on the
bank statement, has correctly been recorded in the cash Credit column of the bank reconciliation statement
journal as R8 600.00.
A debit card payment in favour of SA Traders only appears
in the accounting records of Africa Traders Debit column of the bank reconciliation statement
A debit order for the repayment of Africa Traders’
mortgage loan only appears on the bank statement Cash payments journal
An outstanding deposit on the previous month’s bank
reconciliation statement has now been recorded on the Will not be recorded as part of the current month’s bank reconciliation
bank statement
Interest was debited to the account of Africa Traders by
the bank. Cash payments journal
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller oscardiura. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $5.89. You're not tied to anything after your purchase.
