Bongani, the owner Of Welcome Traders, presented the following transactions for the month ended 30 April 2020. Welcome Traders is registered as a VAT vendor:

No	Transaction details
	Purchased goods during the month for a total of R80 500 inclusive of VAT.
2	All the above goods were marked up at 50% on cost price and sold for cash.

All goods traded are subject to VAT at 15%. Assume that all the transactions for cash and that the above were the only trading transactions for the month of April. Show all workings and where necessary round off calculations to the nearest Rand.

Welcome Traders use the Perpetual Inventory Method to record trade transactions

1. Calculate the purchase price of the goods exclusive of VAT.

2. Calculate the selling price of the goods exclusive of VAT:

3. Calculate the selling price of the goods inclusive of VAT.

4. Record general journal entries to record the purchase and sale of the trading goods shown above. Accommodate VAT in the journal entries.

5. Calculate the amount of VAT payable. Show the formula used.

Answer rating: 100% (QA)

Purehese prte of geods enclusine f VAT Puehere prie a R80 ... View the full answer