Construction Boys CC, a registered VAT vendor, purchased equipment for R92 000 (inclusive of 15% VAT) on credit from Jayzi Ltd. Arrangements were made to settle the account over a six month period. Which of the following statements is correct when recording the purchase of the equipment in the accounting records of Construction Boys CC? A) Debit equipment account (R105 800), credit VAT output (R13 800), credit creditors control: Jayzi Ltd (R92 000). B) Debit equipment account (R92 000), debit VAT input (R13 800), credit creditors control: Jayzi Ltd (R105 800). C) Debit equipment account (R80 000), debit VAT input (R12 000), credit creditors control: Jayzi Ltd (R92 000). D) Debit equipment account (R92 000), credit VAT output (R12 000), credit creditors control: Jayzi Ltd (R80 000).
Construction Boys CC, a registered VAT vendor, purchased equipment for R92 000 (inclusive of 15% VAT) on credit from Jayzi Ltd. Arrangements were made to settle the account over a six month period. Which of the following statements is correct when recording the purchase of the equipment in the accounting records of Construction Boys CC? A) Debit equipment account (R105 800), credit VAT output (R13 800), credit creditors control: Jayzi Ltd (R92 000). B) Debit equipment account (R92 000), debit VAT input (R13 800), credit creditors control: Jayzi Ltd (R105 800). C) Debit equipment account (R80 000), debit VAT input (R12 000), credit creditors control: Jayzi Ltd (R92 000). D) Debit equipment account (R92 000), credit VAT output (R12 000), credit creditors control: Jayzi Ltd (R80 000).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Construction Boys CC, a registered VAT vendor, purchased equipment for
R92 000 (inclusive of 15% VAT) on credit from Jayzi Ltd. Arrangements were
made to settle the account over a six month period. Which of the following
statements is correct when recording the purchase of the equipment in the
accounting records of Construction Boys CC?
A) Debit equipment account (R105 800), credit VAT output (R13 800), credit
creditors control: Jayzi Ltd (R92 000).
B) Debit equipment account (R92 000), debit VAT input (R13 800), credit
creditors control: Jayzi Ltd (R105 800).
C) Debit equipment account (R80 000), debit VAT input (R12 000), credit
creditors control: Jayzi Ltd (R92 000).
D) Debit equipment account (R92 000), credit VAT output (R12 000), credit
creditors control: Jayzi Ltd (R80 000).
debtor, in full settlement of her account of R5 000. Both Minajo and Grand are
not registered as VAT vendors. Which of the following is the correct option to
record the receipt in the accounting records of N Minajo?
A) Debit bank account (R5 000), credit debtors' control (R4 500), and credit
settlement discount granted account (R500).
B) Debit bank account (R4 500), credit debtors control (R5 000), and debit
settlement discount received account (R500).
C) Debit debtors' control (R5 000), credit bank account (R 4 500), and credit
settlement discount received account (R500).
D) Debit bank account (R4 500), credit debtors' control account (R5 000),
and debit settlement discount granted account (R500).
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