Bees Books $($Pty$)$ Ltd $($Bees Books$)$ is a bookstore in Cape Town with a $30$ November

financial year$-$end. Bees Books make use of the perpetual inventory system.

Bees Books is a registered VAT vendor.

Account Debit

$($R$)$

Credit

$($R$)$

Trade debtors $145000$

Bank $/($overdraft$)4500$

Inventory $755200$

Trade payables $226560$

VAT payable $12500$

The following transactions have not yet been recorded for the financial year ended $30$

November $2024$:

$1.$ Bees Books sold $100$ books on credit in October $2024$ with an invoiced amount

of R$36000($including VAT$).$ The cost price of these books sold was R$15000$

$($excluding VAT$).$

$2.15$ of the books sold in October had water damage and the customers returned

these books within one week of purchase.

$3.$ At the end of October $2024,$ Bees Books received R$28000$ cash from outstanding

debtors.

$4.$ In November $2024,$ Bees Books sold $250$ books on credit with a total selling price

of R$62500($excluding VAT$)$ and a cost price of R$150($excluding VAT$)$ per book.

Bees Books wanted to encourage debtors to pay the amount owing and offered

a settlement discount of $10\%$ if they pay within $10$ days of purchase. Bees Books

believes that all customers who bought books in November $2024$ will make use

of the discount.

$5.$ Within $10$ days of purchase all the customers who bought the $250$ books during

November $2024$ made use of the settlement discount.

$6.$ On $20$th of November $2024$ Bees Books received an email from a lawyer stating

that E Brooks, a debtor with an outstanding balance of R$3000,$ is insolvent and

that a settlement of $20$ cents in the Rand would be paid on the $15$th of November

$2024.$ The remaining balance should be written off as irrecoverable.

ANNEXURE F: FORMATIVE ASSESSMENT $1$

$64$ HFAC$132-1-$Jul$-$Dec$2024-$FA$1-$EDK$-$V$3-20240717$

$7.$ Management of Bees Books estimated that $5\%$ of the outstanding trade receivable balance on $30$ November $2024$ would be irrecoverable. There was no allowance for doubtful debt for the year ending $30$ November $2023.$

REQUIRED:

Prepare the general journal entries for all the transactions that occurred during the

$2024$ financial year in the accounting records of Bees Books $($Pty$)$ Ltd$.$

$$ Journal dates and narrations are not required.

$$ Show all calculations and references accordingly.

$$ Round off to the nearest Rand where applicable.

$(30$ marks$)$

SAICA Competency Framework Re