AC Entity$$s records K$87$ Payable GH Date Contra accounts Document Dr Cr Balance $20\mathrm{.}71$ Jul Balance bd $1153001153003$ Jul Inventories and VAT$-$input GH $10801299602452607$ Jul Bank EFT $18111530012996014$ Jul Inventories and VAT$-$input GH $11098521521517516$ Jul Inventories and VAT$-$input GH $112113782635300122$ Jul Bank EFT $19913782621517525$ Jul Inventories and VAT$-$input GK $60275525290700$ On $3$ August $20\mathrm{.}7,$ the following statement was received electronically from Payable GH: GH Entity Street address Postal address Telephone Fax e$-$mail Statement of AC Entity $31$ July $20\mathrm{.}7$ Date Contra accounts Document Dr Cr Balance $1$ Jul Balance bd $3933003933002$ Jul Reversal of incorrect debit GH $1070969002964002$ Jul Bank EFT $1671811001153003$ Jul Sales and VAT$-$output GH $10801368002521009$ Jul Bank EFT $18111530013680014$ Jul Sales and VAT$-$output GH $11098521522201516$ Jul Sales and VAT$-$output GH $112114136036337523$ Jul Bank EFT $19913782622554931$ Jul Returns $($in$)$ and VAT$-$output GH$/$KN $8913794211755$ ADDITIONAL INFORMATION: $1$ The following information represents the reconciliation, as at $30$ June $20\mathrm{.}7,$ between the account for Payable GH with the statement for June $20\mathrm{.}7$ received from Payable GH: Payables reconciliation as at $30$ June $20\mathrm{.}720\mathrm{.}7$ Dr Cr Balance $30$ Jun Balance as per statement $39330039330030$ Jun Payment not accounted for $-$ EFT $16718110021220030$ Jun Incorrect debit Invoice GH$1070969001153002$ Invoice GH $1080$ reflects inter alia the following amounts: A listed price of R$120000$ and trade discount of R$6000($both amounts exclude VAT$).3$ Invoice GH $1121$ reflects inter alia the following amounts: A listed price of R$124000($excluding VAT$).$ Furthermore, a settlement discount of $2\mathrm{.}5\%$ will be granted if payment is received within $10$ days from the date of the invoice $(16$ July $20\mathrm{.}7).$ AC Entity$$s payment history indicates that the entity usually makes use of the settlement discount. $4$ Invoice GK $602$ does not relate to Payable GH$,$ but relates to Payable GK$.4$ ASSIGNMENT $6($QUESTION $$ CONTINUED$)5$ On $29$ July $20\mathrm{.}7,$ AC Entity returned some of the merchandise purchased on $14$ July $20\mathrm{.}7$ to GH Entity due to latent defects. $6$ AC Entity and GH Entity are both registered as vendors in accordance with the VAT$-$Act. REQUIRED: As at $31$ July $20\mathrm{.}7,$ compare the account of GH Entity, as it appears in the records of AC Entity, with the statement received from GH Entity, and: a$)$ If it appears that the account of GH Entity $($in the records of AC Entity$)$ is incomplete or contains errors: $($i$)$ Journalise the necessary entries in the records of AC Entity; and $($ii$)$ Open GH Entity$$s account $($in the records of AC Entity$)$ with the credit balance of R$290700$ and post the journals of a$($i$)$ to this account. If it appears that the statement from GH Entity is incomplete or contains errors: $($i$)$ Prepare a payables reconciliation as at $31$ July $20\mathrm{.}7.$