Question 1 [9 Marks]

Indicate whether the following items are: A = Assets L = LiabilitiesE = Expenses I = Income 1.1 Owner's wife took irrecoverable inventory for birthday of grandson without owner's accord. No record was kept. ....... [2]1.2 VAT due since last year to SARS ....... [1]1.3 Allowances for credit losses decrease ....... [1]1.4 Petty Cash float ....... [1]1.5 Stationary returned by customer to us ....... [1]1.6 Donations to children's home by owner using business inventory. ....... [2] 1.7 Repairs of engine of a business vehicle ....... [1]

Question 2 [15 Marks]

GKS Traders is a registered VAT vendor. The following table is a summary produced by the Management Accountant as at 30 April 2020

Cost price % Mark-up on cost

Selling price VAT (15%) Marked price

A? 15%270 000 B?C?

286 000 20%D? E? F?

G? 25%H? I? 25 300

J? 30%K? 67 500.00 L?

40 000M ? 50 000 N O?