Assume a VAT rate of Rileys Traders is an entity that buys and sells paintings. All parties are registered VAT vendors, and all amounts include VAT unless otherwise stated. The business uses the perpetual system to record their inventory and a gross margin of to determine selling prices. Extract of the Statement of Financial Position of Rileys Traders as at December Inventory Stationery Accounts Payable SARS VAT The following transactions occurred during the month of January :

Maalik Riley, the owner, deposited a further R into the business bank account.

Paid the amount owing to SARS for the VAT for the previous period.

Purchased inventory on credit from Buco Traders, R

Cash sales for the week amounted to R

Issued a cheque amounting to R for the purchase of stationery.

Sold inventory on credit to Mr Ahmed, R and allowed a trade discount of

Mr Arendse returned goods to the value of R

Paid wages, R

Received half of the amount owing from Mr Ahmed.

The owner withdrew R for personal use.

Paid the full amount owing to Buco Traders.

On January the business had stationery amounting to R on hand.

You are required to: a Record the transactions in the general journal. marks

b Prepare a VAT Control Account in the general ledger. marks

Answer rating: 100% (QA)

Answer To calculate the new balances of the accounts after the given transactions we need to follow ... View the full answer