Question

Question 2 (15 marks) Fine Furniture (Pty) Ltd, a VAT-registered vendor registered on the w had the following transactions for the month of June 2000 are inclusive of VAT (15) except it stated there we VAT applicable. The business uses the perpem when worting to Inventory al b) c) On 9 lune, the owner took home coffee table which was meant for sale, for his personal use. This coffee table had a gre R10925 (VAT inclusive) and a margin (on sales of so On 25 June, the business sold goods on credit the goods had price (VAT-inclusive) of 713 000 and a make up foot of 1294 (Both the cost of sales and sales need to be accounted for) On 29 June, the business bought tea, coffee and milk for office. The total cost was R$75 (VAT-inclusive) and they were paid for from petty cash On 30 June, the business bank account showed a debit for a total amount of R2 472.50. Or this amount, R2300 of this was for interest charges and the rest was for bank charges 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. Details Debit Credit * No. a) b) c) d) Note: ignore folio column and narrations.

Answer 1

Credit sl No. a. Debit 4,750.00 (10,925 X 100-115 X 50%) 4,750.00 b. 1,604,250.00 620,000 X (1+125%) (1,395,000 X 15%) 1,395,000.00 209,250.00 (713,000 X 100-115) 620,000.00 General Journal Drawings Inventory (To record goods taken by the owner for personal use) Accounts Receivable Sales VAT Collected (to record goods sold on credit) Cost of Goods Sold Inventory (To record cost of goods sold) Office Supplies VAT Paid Cash (To record purchase of office supplies) Interest Expense Bank Charges Cash (To record interst Expenses and Bank Charges) 620,000.00 c. (575 X 100:115) (575 X 15+115) 500.00 75.00 575.00 d. 2,300.00 172.50 (2,472.50 -2,300) 2,472.50 If you have any doubt regarding this solution you can ask in the comment section otherwise kindly Thumps Up