Question

Question 2 (15 martes) Furniture (Pty), a VAT red vendor registered in the words had the following transactions for the month of Jure 2020. morts are inclusive VAT (159), excepted otherwise we VAT applicable. The business uses the perpetual system when went to inventary a) b) c) on 9 June, the owner took home a coffee table, which was meant for sale for his personal use. This coffee table had a sing price of R10 525 (VAT-Inclusive and a margin (on sales) of 50% On 25 June, the business sold goods on credit. These goods had a co price (VAT inclusive) of R713 000 and a mark on cost of 125 (Both the cost of sales and sales need to be accounted for) On 29 June, the business bought tea, coffee and milk for offices The total cost was R$75 (VAT inclusive) and they were paid for trompetty cash. On 30 June, the business bank account showed a debit for a total amount of R2 472.50. of this amount, R2300 of this was for interest charges and the rest was for bank charges. d) Required: 2.1 Prepare the General Journal of Fine Furniture (Pty) Ltd for the month of June 2020 by copying and completing the table below. (15) NB: Workings are not required. No. Details Debit Credit b) c) d) Note: ignore folio column and narrations.

Answer 1

Requirement:- Prepare the General Journal of Fine Furniture (Pty) Ltd. for the month of June 2020 by copying and completing the table below.

No.	Details	Debit	Credit
a.	Drawings (10,925 * 100/115) * 50%	4,750
	Inventory		4,750
	(To records goods taken by proprietor)
b.	Account Receivables	1,604,250
	Sales {620,000 * (1+125%)}		1,395,000
	VAT Collected (1,395,000 * 15%)		209,250
	(To record sale on credit)
	Cost of Goods Sold	620,000
	Inventory		620,000
c.	Office Supplies (575 * 100/115)	500
	VAT paid (575 * 15/115)	75
	Cash		575
	(To record cost of sales)
d.	Interest expense	2,300
	Bank Charges (2,472.50 - 2,300)	172.50
	Cash		2,472.50

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