Section C

Value$-$added Tax and Journals

$25$ Marks

Question $3$

Study the scenario and complete the questions that follow:

Stoneridge Traders

Stoneridge Traders was formed by Mr Regis in $2020.$ The entity is a registered VAT vendor and applies the periodic inventory system. The following transactions occurred during August $2024.$ Amounts are inclusive of VAT were applicable. Mark$-$up of $\backslash (20\backslash \%\backslash )$ is charged when merchandise is sold.

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|\}$

$\backslash$hline Day & Details $\backslash \backslash$

$\backslash$hline $01$ & Mr Regis deposited R$100000$ via EFT to expand business operations. $\backslash \backslash$

$\backslash$hline $02$ & $\backslash$begin$\{$tabular$\}\{$l$\}$

Rash sales of R$145000$ excluding VAT were made. $\backslash \backslash$

Cee Traders.

$\backslash$end$\{$tabular$\}\backslash \backslash$

$\backslash$hline $04$ & Credit sales of R$172500$ were made to Charlie Zeyd. $\backslash \backslash$

$\backslash$hline $10$ & R$5750$ was received from a tenant occupying part of the business premises. $\backslash \backslash$

$\backslash$hline $13$ & Sold an old photocopier for R$4600$ on credit to the shop assistant James Sithole. $\backslash \backslash$

$\backslash$hline $17$ & Credit Sales of R$240000$ excluding VAT were invoiced to Simon Petling old furniture that was no longer in use to $\backslash \backslash$

$\backslash$hline $20$ & Received half of the money owed by Charlie Zeyd. $\backslash \backslash$

$\backslash$hline $23$ & Merchandise that had been bought for R$45000$ was sold cash. $\backslash \backslash$

$\backslash$hline $24$ & Received R$800$ interest on the bank favourable balance from FBN Bank. $\backslash \backslash$

$\backslash$hline $30$ &

$\backslash$end$\{$tabular$\}$

Source: Jemedze, S$.(2024)$

Required

$3\mathrm{.}1$ Prepare the Cash Receipts Journal.

$(17$ Marks$)$

$3\mathrm{.}2$ Prepare the Debtors Journal.

$(8$ Marks$)$

Note: Use the following templates

Cash Receipts Journal of Stoneridge Traders for August $2024$

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|$l$|$l$|$l$|$l$|$l$|\}$

$\backslash$hline Day & Details & Bank & Receivables & Output VAT & Sales & Amount & Details $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$