Neverland Traders, a children's book retailer, entered into the transactions below during February 2020. The business...

 

  

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Neverland Traders, a children's book retailer, entered into the transactions below during February 2020. The business is a registered VAT vendor and trades only with other registered vendors. All amounts include 15% VAT where applicable, except if otherwise indicated. They use a periodic inventory system and all goods are marked up at 40% above cost, before taking into account any trade discounts. The business does not expect to award any settlement discounts nor to qualify for any settlement discounts. All occurrences of settlement discounts are therefore incidental in nature. The following payments were made from the bank account: Day Transaction Purchased inventory from Suess traders and paid R13 800. Paid R10 000 (excluding VAT) to W Landlords for monthly rental of premises. Paid R4 000 towards settlement of a loan with BAC Bank. Purchased inventory from M&M traders for R8 050. M&M traders has allowed a 3 7. 9. 17 trade discount of 5% on the transaction that still needs to be accounted for. The bank statement from BAC bank showed bank charges of R57.50. Restored the petty cash to its imprest amount R1 638. Paid R14 000 to P. Pig towards settlement of an outstanding creditors account. 27 28 28 The following payments were made from the petty cash box: Day Transaction 4. R750 from Total for fuel for the delivery vehicle. RS00 for staff refreshments from the local bakery. 9. 12 R138 for paper reams from N&N stationers. 23 Paid a casual worker R250 for the day. The following transactions relate to debtors for the month. Transaction Sold goods to Sophia traders on credit for R9 660. Sophia traders returned 10% of the goods sold in the 2 due to inferior quality, a Day 4 credit note was issued in this regard. Sold goods to Olaf Traders on credit. The goods had an original cost price of 16 R13 000 (excluding VAT). Sold goods to Elsa traders on credit with an original selling price of R3 542. A trade discount of 5% was awarded and still needs to be taken into account. Elsa traders returned all the goods purchased on the 20 due to the fact that it 20 21 was the wrong colour and a credit note was issued. Required: Q.4.1 Prepare the following subsidiary journals for Neverland Traders for February 2020: Q.4.1.1 Cashbook Payments. (21) Q.4.1.2 Petty cash journal. (9) Q.4.1.3 Debtors journal. (10%) Q.4.1.4 Debtors allowances journal. (5%) Round to two decimal places. Ignore all source document numbers. You are not required to total the journals at the end of the month. Q.4.2 Assuming the perpetual inventory system was used and all goods are marked (4) up at 40% above cost, before taking into account any trade discounts, calculate the cost of sales amount with respect to the entry relating to debtors on the 2nd February 2020. Neverland Traders, a children's book retailer, entered into the transactions below during February 2020. The business is a registered VAT vendor and trades only with other registered vendors. All amounts include 15% VAT where applicable, except if otherwise indicated. They use a periodic inventory system and all goods are marked up at 40% above cost, before taking into account any trade discounts. The business does not expect to award any settlement discounts nor to qualify for any settlement discounts. All occurrences of settlement discounts are therefore incidental in nature. The following payments were made from the bank account: Day Transaction Purchased inventory from Suess traders and paid R13 800. Paid R10 000 (excluding VAT) to W Landlords for monthly rental of premises. Paid R4 000 towards settlement of a loan with BAC Bank. Purchased inventory from M&M traders for R8 050. M&M traders has allowed a 3 7. 9. 17 trade discount of 5% on the transaction that still needs to be accounted for. The bank statement from BAC bank showed bank charges of R57.50. Restored the petty cash to its imprest amount R1 638. Paid R14 000 to P. Pig towards settlement of an outstanding creditors account. 27 28 28 The following payments were made from the petty cash box: Day Transaction 4. R750 from Total for fuel for the delivery vehicle. RS00 for staff refreshments from the local bakery. 9. 12 R138 for paper reams from N&N stationers. 23 Paid a casual worker R250 for the day. The following transactions relate to debtors for the month. Transaction Sold goods to Sophia traders on credit for R9 660. Sophia traders returned 10% of the goods sold in the 2 due to inferior quality, a Day 4 credit note was issued in this regard. Sold goods to Olaf Traders on credit. The goods had an original cost price of 16 R13 000 (excluding VAT). Sold goods to Elsa traders on credit with an original selling price of R3 542. A trade discount of 5% was awarded and still needs to be taken into account. Elsa traders returned all the goods purchased on the 20 due to the fact that it 20 21 was the wrong colour and a credit note was issued. Required: Q.4.1 Prepare the following subsidiary journals for Neverland Traders for February 2020: Q.4.1.1 Cashbook Payments. (21) Q.4.1.2 Petty cash journal. (9) Q.4.1.3 Debtors journal. (10%) Q.4.1.4 Debtors allowances journal. (5%) Round to two decimal places. Ignore all source document numbers. You are not required to total the journals at the end of the month. Q.4.2 Assuming the perpetual inventory system was used and all goods are marked (4) up at 40% above cost, before taking into account any trade discounts, calculate the cost of sales amount with respect to the entry relating to debtors on the 2nd February 2020.

Answer rating: 100% (QA)

A41 CASH AC Date Particulars Amount Date Particulars Amount 3Feb To suess traders 13800 7Feb To Rent ... View the full answer