QUESTION ONE $[25]$

Please review the questions below and provide the journal entries as required.

Show all workings.

Round your answers to the nearest Rand

Laptop Computers $($Pty$)$ Ltd is in the business of all thing$$s computers. Their financial year runs from $1$ January $2023$ to $31$ December $2023.$ During the year the following transactions occurred:

$($a$)$

In the month of January, the company sold $10$ computers of equal value for a gross sales value of R$200,000($all on credit$)$ to a customer XYZ Ltd at a discount of $10\%.$ However, $2$ of these computers were returned due to faulty software installed. A credit note was issued to the customer. XYZ Ltd paid R$150000$ in part settlement of this account on $31$ January $2023.(8)$

Prepare the journal entries that would reflect the above transactions in the accounts as at $31$ January $2023($ignore any entries on cost of sales or trading stock$).$

$($b$)$

As at the end of February the bill for water and electricity was received but not paid. This bill amounted to R$10,500.$

Prepare the journal entry that would reflect the above transaction in the accounts as at $28$ February $2023.(2)$

$($c$)$

The Februarys bill for water and electricity was paid in March.

Prepare the journal entry that would reflect the above transaction in the accounts as at $28$ February $2023.(2)$

$($d$)$

The company entered into a new rental agreement on $1$ April $2023.$ The agreement was for a period of $12$ months at a rate of R$20,000$ per month and required a $6-$ month payment in advance on $1$ April $2023.$

Prepare the accounting entry$/$entries in relation to the above for the books at end April $2023.(5)$