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Hint: Remember to total the journals. Document numbers are not required. Q.2.1.1 Debtors Journal Q.2.1.2 Debtors Allowances Journal Calculate the amount outstanding by Pinky Leshaba at the end of February

Hint: Remember to total the journals. Document numbers are not required. Q.2.1.1 Debtors Journal Q.2.1.2 Debtors Allowances Journal Calculate the amount outstanding by Pinky Leshaba at the end of February

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Nerina Traders, a gift shop, situated in Illovo is owned by Serena Lopez. The business is a registered VAT vendor and trades only with other registered vendors. All amounts including 15% VAT where applicable, except if otherwise indicated. They use a periodic inventory system and all goods are marked up at 20% above cost, before considering any trade discounts. The business does not expect to award any settlement discounts nor to qualify for any settlement discounts. All occurrences of settlement discounts are therefore incidental in nature. Debtors balances as at 31 January 2020: Pinky Leshaba R3 500. The following transactions took place in the month of February 2020 : DATE TRANSACTION 1 Sold goods on credit to Pinky Leshaba for R2 500 excluding VAT 4 The invoice provided to Pinky Leshaba on the 1st February was overcast by R230 including VAT. Pinky Leshaba has accepted this amount and the error needs to be corrected. Hint: this should be treated in a similar way as a rebate. 6 Goods sold on credit to Siya Khumalo for R920 including VAT 10 Siya Khumalo returned damaged goods R100 excluding VAT 15 Goods sold on credit to Pinky Leshaba R1 000 excluding VAT 21 Charged Pinky Leshaba interest on overdue account R50 27 Pinky Leshaba paid R1 000 in part settlement of her balance owing © The Independent Institute of Education (Pty) Ltd 2021 21 Q.2.1 Prepare the following subsidiary journals for Nerina Traders for February 2020: Hint: Remember to total the journals. Document numbers are not required. Q.2.1.1 Debtors Journal Q.2.1.2 Debtors Allowances Journal Q.2.2. Calculate the amount outstanding by Pinky Leshaba at the end of February 2020.
Transcribed Image Text:Nerina Traders, a gift shop, situated in Illovo is owned by Serena Lopez. The business is a registered VAT vendor and trades only with other registered vendors. All amounts including 15% VAT where applicable, except if otherwise indicated. They use a periodic inventory system and all goods are marked up at 20% above cost, before considering any trade discounts. The business does not expect to award any settlement discounts nor to qualify for any settlement discounts. All occurrences of settlement discounts are therefore incidental in nature. Debtors balances as at 31 January 2020: Pinky Leshaba R3 500. The following transactions took place in the month of February 2020 : DATE TRANSACTION 1 Sold goods on credit to Pinky Leshaba for R2 500 excluding VAT 4 The invoice provided to Pinky Leshaba on the 1st February was overcast by R230 including VAT. Pinky Leshaba has accepted this amount and the error needs to be corrected. Hint: this should be treated in a similar way as a rebate. 6 Goods sold on credit to Siya Khumalo for R920 including VAT 10 Siya Khumalo returned damaged goods R100 excluding VAT 15 Goods sold on credit to Pinky Leshaba R1 000 excluding VAT 21 Charged Pinky Leshaba interest on overdue account R50 27 Pinky Leshaba paid R1 000 in part settlement of her balance owing © The Independent Institute of Education (Pty) Ltd 2021 21 Q.2.1 Prepare the following subsidiary journals for Nerina Traders for February 2020: Hint: Remember to total the journals. Document numbers are not required. Q.2.1.1 Debtors Journal Q.2.1.2 Debtors Allowances Journal Q.2.2. Calculate the amount outstanding by Pinky Leshaba at the end of February 2020.
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