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Question 2 (Marks: 35) You have been asked to assist in the bookkeeping for Camden Stores....

Question 2 (Marks: 35)

You have been asked to assist in the bookkeeping for Camden Stores.

  •  The business is a registered VAT vendor and trades only with registered VAT vendors.

  •  The business charges 15% VAT on all its sales. All amounts are inclusive of VAT, unless

    otherwise stated or not applicable.

  •  The business uses the perpetual inventory system and uses different mark‐ups for the

    different products they sell and all discount is incidental in nature.

  •  Cash is banked on a daily basis.

    Transactions for the month of April 2020 are as follows:

Date

Transaction

1

C. Camden, the owner contributed R70 000 cash to the business, issued receipt no. RC20.

2

Sold trading inventory (30 items @R300 each, VAT exclusive) to D. Daly on credit. The mark‐up applied is 35% on cost price. Credit invoice CI30 was issued.

4

Cash sales according to the cash register roll (CRR) was R25 600. A mark‐up of 25% on selling price was applied.

8

Received R9 450 from N. Khomo, a tenant, who sub‐lets office space from Camden Stores. Issued receipt RC21. Deposited all monies received into the current banking account.

10

Owner, C. Camden took inventory for his own use, R400, VAT exclusive (JV7)

15

Cash sales according to the cash register roll (CRR) for the day R22 100 exclusive of VAT. The cost of the goods was R17 000 (excluding VAT).

17

C. Camden contributed his personal couch to be used in the reception area of the business (JV8). The value of the couch was R7 500 (The legal requirements have not yet been met for the VAT amount to be claimed, thus no VAT will apply at this stage).

20

Sold trading inventory to M. Muhamed on credit, for R40 000. The mark‐up is 35% on cost price. Credit invoice CI31 was issued.

22

Sold trading inventory to L. Singh on credit, cost price was R15 000 (excluding VAT). The mark up on cost is 25%. CI32 was issued.

31

Charged 6% interest on M. Muhamed’s overdue account of R20 000, his account was overdue by 30 days (Assume a 365‐day year). JV9.

© The Independent Institute of Education (Pty) Ltd 2020

Page 5 of 8

20 2020

Required:

Complete the following journals in your answer booklet, by providing the missing information and/or calculating the missing amounts for letters A to T:

 Cashbook Receipts;  Debtors Journal;
 General Journal.

Note: The missing letters correspond to the transactions listed in date order. You do not have to write the answers to the “?”. You will use these in your workings only, to assist you in completing A to T. Show all workings.
Round to the nearest Rand.

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Expert Solution


ekkarill92 answered 1 year ago
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