Megan's Salon is a beauty parlour that provides beauty related goods and services. The business is...

 

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Megan's Salon is a beauty parlour that provides beauty related goods and services. The business is registered for valued added tax. The VAT rate is 15%. The business uses the perpetual inventory system to record inventory and has a February year- end. On the 31 January 2021, the SARS VAT Account had a credit balance of R10 500. The following information has been extracted from the accounting records of the business for the month ended 28 February 2021 Output VAT per cash receipts journal 1 380 Output VAT per sales jounal 15 750 Input VAT per cash payments journal 2 400 Input VAT per purchases journal 7 800 The following additional financial information provided for the month of February 2021 has not been recorded in the accounting records a. A car was purchased for R345 000, including VAT. for the business in cash b. A credit sale for beauty products to the value of R1 500 exciuding VAT (original cost R750 excluding VAT) has not been recorded in the sales journal C. The owner, Megan paid the telephone account of RT 150 inclusive pf VAT trom her personal funds. d. On 28 February, Megan's Salon received a cheque from a deblor for R2 300 in tull settlement of his debt. His debt of R2 300 was previouly written olf and accounted for as irecoverable on 22 January 2021- No eniry has been processed for this recovery Megan's Salon is a beauty parlour that provides beauty related goods and services. The business is registered for valued added tax. The VAT rate is 15%. The business uses the perpetual inventory system to record inventory and has a February year- end. On the 31 January 2021, the SARS VAT Account had a credit balance of R10 500. The following information has been extracted from the accounting records of the business for the month ended 28 February 2021 Output VAT per cash receipts journal 1 380 Output VAT per sales jounal 15 750 Input VAT per cash payments journal 2 400 Input VAT per purchases journal 7 800 The following additional financial information provided for the month of February 2021 has not been recorded in the accounting records a. A car was purchased for R345 000, including VAT. for the business in cash b. A credit sale for beauty products to the value of R1 500 exciuding VAT (original cost R750 excluding VAT) has not been recorded in the sales journal C. The owner, Megan paid the telephone account of RT 150 inclusive pf VAT trom her personal funds. d. On 28 February, Megan's Salon received a cheque from a deblor for R2 300 in tull settlement of his debt. His debt of R2 300 was previouly written olf and accounted for as irecoverable on 22 January 2021- No eniry has been processed for this recovery

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Solution a Journal entries for the transaction Sno Particular Debit Credit 300000 ... View the full answer