Koo Traders uses the periodic inventory system to account for inventory. Opening inventory at the beginning of June 20x6 was
Koo Traders uses the periodic inventory system to account for inventory. Opening inventory at the beginning of June 20x6 was R3 600.
Transactions for June:
1 Bought inventory from D. Smith Manufacturers for R3 000.
2 Sold inventory to S. Franklin for R3 000 on credit.
3 Sold inventory to Bermuda Traders for R820 and received a cheque for the full amount.
4 Bought inventory from Pim Traders for R8 000 and paid by cheque.
5 S. Franklin returned inventory worth R20 as they were defective.
6 Sold inventory to J. Brown for R8 000 on credit.
7 Received an invoice for inventory bought from Ajay Manufacturers for R400.
• At the end of June was held and the cost of inventory on hand was R4 000 after an inventory count.
• Expenses for June (all paid by cheque) amounted to R4 200 and consisted of:
You are required to:
1. Enter the transactions into the general ledger.
2. Prepare all journal entries to the general ledger (including closing entries) and prepare the trading and profit and loss accounts.
3. Prepare the statement of profit or loss & other comprehensive income for the month ended 30 June 20x6.
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