QUESTION $2(30$ MARKS$)$ Please review the questions below and provide the journal entries as required. Show all workings. Round your answers to the nearest Rand Bags Ltd is a company that manufactures and trades in bags and operates nationally in South Africa. The company$$s financial year runs from $1$ January $2024$ to $31$ December $2024.$ During the year the following transactions occurred: $($a$)$ During January $2024$ the company paid a supplier for bags purchased on credit in November $2023.$ The purchase price of the goods was R$150,000.$ Two issues surfaced before payment was made: $$ Bags Ltd managed to negotiate a $5\%$ discount on the purchase price of this particular batch of bags. $$ In January the warehouse clerk discovered that some of these bags contained defects and had to be returned. The total cost of these bags amounted to R$30,000.$ It was only after taking these two factors into account was the creditor paid in full. Show the journal entries that would be processed to account for the above as at the end of January $2024.(6)($b$)$ In the month of February, the company received monies in their bank account for a batch of bags sold in the previous year. The original credit sale value of this batch of bags was R$80,000.$ The customer took full delivery of these bags in the previous year and agreed to pay the full amount by end January $2024.$ Only $60\%$ of the sale was received in the bank account on $14$ February $2024.$ The agreement on the sale was that any amount outstanding post January would attract interest at a rate of $12\%$ p$.$a$.$ until the full debt is settled. Interest is calculated per day. Prepare the journal entries that would reflect the above transactions in the accounts as at $28$ February $2024($ignore any entries on cost of sales or trading stock$).(5)($c$)$ The March$$s bill for rent was paid on $1$ May $2024.$ This was paid for late. The lease agreement provides for rental to be paid in arrears by latest the $7$th of the following month. The same monthly rental amount was due between January to December $2024.$ The landlord applied interest charges at $10\%$ p$.$a$.$ for late payment. On $1$ May the company paid for the March and April rent at the same time. Any interest however remained outstanding as at $31$ May $2024.$ Interest is calculated daily, compounded monthly. No interest has been accounted for as yet. Prepare the journal entries that would reflect the above transactions in the accounts as at $31$ May $2024.(6)($d$)$ On $1$ August $2024$ the company signed a contract to supply Edgars Ltd a variety of bags to the value of R$680,000$ equally over the next $6$ months $($on the last day of every month$).$ The full amount was received in cash on $1$ August $2024.$ Delivery has been delayed as there was an issue with leather at Bag$$s supplier and the bags only arrived in September. The first batch of delivery took place at the end of September and included delivery for August and September. Furthermore, in September Edgars returned a batch of black bags worth R$50,000$ in exchange for brown bags. The black bags were received at the warehouse however the brown bags were not yet dispatched. Prepare the accounting entries for the books as at the end of September $2024.(5)($e$)$ See below details of trade receivables for Bags Ltd: Trade receivables at $31$ December $2024$ R$734,565$ Provision for doubtful debts at $1$ January $2024$ R$75,893$ Bad debts for the year ending $31$ December $2024$ were R$12,932.$ No entry has yet been passed. In addition to this the debtor in $($b$)$ has not paid any of his debt since the payment on $14$ February $2024.$ The company has been accruing interest until December $2024.$ Management have decided to write off this debt before year end close off. The company policy is to provide for a doubtful debt provision of $10\%$ on trade receivables. Please provide the adjusting journal entries to account for year$-$end closure. $(6)($f$)$ At year end the company had assets of motor vehicles on their balance sheet to the value of R$750,000.$ New vehicles of R$100,00$ was bought and came into use on $1$ October $2024.$ This has been accounted for in the books. The accumulated depreciation as at $31$ December $2023$ was R$350,763.$ The company$$s accounting policy is to depreciate motor vehicles at a rate of $20\%$ on the diminishing balance method. No depreciation entry for the year has been passed yet. Process the depreciation journal entry at year end in relation to motor vehicles. $(3$