Africa Traders, a registered VAT vendor, manufactures and sells gardening equipment. On 9 April 2021, Africa Traders sold gardening equipment of R8 050 (VAT exclusive) to SA Traders for cash. The VAT rate is 15%. SA Traders is a registered VAT vendor which buys and sells gardening equipment.   How will the above transaction be recorded in the applicable subsidiary journal of SA Traders?   Select one: a.     SA Traders Cash Receipts Journal – April 2021                                                                                                                                              CRJ04 Doc no   Day   Details Fol Analysis of receipts   Bank   Sales VAT output Sundry accounts Amount Fol Details   9 Africa Traders   R8 050 R8 050 R7 000 R1 050           b.     SA Traders Cash Receipts Journal – April 2021                                                                                                                                              CRJ04 Doc no   Day   Details Fol Analysis of receipts   Bank   Sales VAT output Sundry accounts Amount Fol Details   9 Africa Traders   R9 257,50 R9 257,50 R8 050 R1 207,50           c.     SA Traders Cash Payments Journal – April 2021                                                                                                                                            CPJ04 Doc no Day   Details Fol   Bank   Purchases VAT input Sundry accounts Amount Fol Details   9 Africa Traders   R8 050 R7 000 R1 050           d.     SA Traders Cash Payments Journal – April 2021                                                                                                                                            CPJ04 Doc no Day   Details Fol   Bank   Purchases VAT input Sundry accounts Amount Fol Details   9 Africa Traders   R9 257,50 R8 050 R1 207,50

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Africa Traders, a registered VAT vendor, manufactures and sells gardening equipment. On 9 April 2021, Africa Traders sold gardening equipment of R8 050 (VAT exclusive) to SA Traders for cash. The VAT rate is 15%. SA Traders is a registered VAT vendor which buys and sells gardening equipment.

 

How will the above transaction be recorded in the applicable subsidiary journal of SA Traders?

 

Select one:
a.

 

 

SA Traders

Cash Receipts Journal – April 2021                                                                                                                                              CRJ04

Doc no

 

Day

 

Details

Fol

Analysis of receipts

 

Bank

 

Sales

VAT output

Sundry accounts

Amount

Fol

Details

 

9

Africa Traders

 

R8 050

R8 050

R7 000

R1 050

 

 

 

 

 

b.

 

 

SA Traders

Cash Receipts Journal – April 2021                                                                                                                                              CRJ04

Doc no

 

Day

 

Details

Fol

Analysis of receipts

 

Bank

 

Sales

VAT output

Sundry accounts

Amount

Fol

Details

 

9

Africa Traders

 

R9 257,50

R9 257,50

R8 050

R1 207,50

 

 

 

 

 

c.

 

 

SA Traders

Cash Payments Journal – April 2021                                                                                                                                            CPJ04

Doc no

Day

 

Details

Fol

 

Bank

 

Purchases

VAT input

Sundry accounts

Amount

Fol

Details

 

9

Africa Traders

 

R8 050

R7 000

R1 050

 

 

 

 

 

d.

 

 

SA Traders

Cash Payments Journal – April 2021                                                                                                                                            CPJ04

Doc no

Day

 

Details

Fol

 

Bank

 

Purchases

VAT input

Sundry accounts

Amount

Fol

Details

 

9

Africa Traders

 

R9 257,50

R8 050

R1 207,50

 

 

 

 
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Revenue Recognition
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education