ICE ACTIVITY 2 Purple General Dealers, a registered VAT Vendor, has several debtors and creditors. All debtors and reditors are registered for VAT, and deal in standard rated supplies only. Vat is charged at 15%. The following balances appeared in the books of Purple General Dealers on 1ª August 2021 Debtor Mr Orange (D13): R12000 Creditor Miss Blue (C6): R8000 The following transactions took place during the month of August 2021 Transaction DATE 1 Sold goods to Mr Orange on credit R$750 (incl Vat) Mr Orange returned damaged goods R1150 (incl Vat) Purchased goods from Miss Blue R2300 (incl VAT) Sold goods to Mr Orange on credit R3450 (incl Vat) Bealised that the previous invoice was undercast by R230 (VT). Mr Orange was contacted in this regard and he has accepted the correct amount Purchased goods from Miss Blue R1000 (excl Vat) LASS 4 12 13 17 19 26 29 Returned damaged goods to Miss Blue R500 (excl Vat) Received a cheque from Mr Orange in full settlement of his account and granted him a 5% Settlement Discount ABC Bank informed us that Mr Orange's chequr has been diskeceused due to insufficient funds We have been informed that Mr Orange has been liquidated. We received a cheque from his lawyer constituting 50 cents in the rand Made an EFT to Miss Blue for R5000 in part settlement of the amount owing
ICE ACTIVITY 2 Purple General Dealers, a registered VAT Vendor, has several debtors and creditors. All debtors and reditors are registered for VAT, and deal in standard rated supplies only. Vat is charged at 15%. The following balances appeared in the books of Purple General Dealers on 1ª August 2021 Debtor Mr Orange (D13): R12000 Creditor Miss Blue (C6): R8000 The following transactions took place during the month of August 2021 Transaction DATE 1 Sold goods to Mr Orange on credit R$750 (incl Vat) Mr Orange returned damaged goods R1150 (incl Vat) Purchased goods from Miss Blue R2300 (incl VAT) Sold goods to Mr Orange on credit R3450 (incl Vat) Bealised that the previous invoice was undercast by R230 (VT). Mr Orange was contacted in this regard and he has accepted the correct amount Purchased goods from Miss Blue R1000 (excl Vat) LASS 4 12 13 17 19 26 29 Returned damaged goods to Miss Blue R500 (excl Vat) Received a cheque from Mr Orange in full settlement of his account and granted him a 5% Settlement Discount ABC Bank informed us that Mr Orange's chequr has been diskeceused due to insufficient funds We have been informed that Mr Orange has been liquidated. We received a cheque from his lawyer constituting 50 cents in the rand Made an EFT to Miss Blue for R5000 in part settlement of the amount owing
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:ICE ACTIVITY 2
Purple General Dealers, a registered VAT Vendor, has several debtors and creditors. All debtors and
kreditors are registered for VAT, and deal in standard rated supplies only. Vat is charged at 15%. The
following balances appeared in the books of Purple General Dealers on 1* August 2021
Debtor
Mr Orange (D13): R12000
Creditor
Miss Blue (C6): R8000
The following transactions took place during the month of August 2021
DATE
Transaction
1
Sold goods to Mr Orange on credit R$750 (incl Vat)
4
5
Mr Orange returned damaged goods R1150 (incl Vat)
Purchased goods from Miss Blue R2300 (incl VAT)
Sold goods to Mr Orange on credit R3450 (incl Vat)
8
9
12
13
17
19
26
29
Bealised that the previous invoice was undercast by R230 (ind). Mr Orange
was contacted in this regard and he has accepted the correct amount
Purchased goods from Miss Blue R1000 (excl Vat)
Returned damaged goods to Miss Blue R500 (excl Vat)
Received a cheque from Mr Orange in full settlement of his account and
granted him a 5% Settlement Discount
ABC Bank informed us that Mr Orange's cheque has been dishonoured due to
insufficient funds
We have been informed that Mr Orange has been liquidated. We received a
cheque from his lawyer constituting 50 cents in the rand
Made an EFT to Miss Blue for R5000 in part settlement of the amount owing
REQUIRED
Prepare the individual account of Mr Orange and Miss Blue in the debtors and creditors ledger
respectively from the information provided for the month of August 2021
NOTE: In the document number column in your answer booklet provide only the correct name of the
document, document numbers and transactions codes are not required
DEBTORS LEDGER OF PURPLE GENERAL DEALERS
MR ORANGE (D13)
DATE
DOCUMENT
NO
FOL
DEBIT
CREDIT
BALANCE
CREDITORS LEDGER OF PURPLE GENERAL DEALERS
MISS BLUE (C6)
DATE
DOCUMENT FOL
NO
DEBIT
CREDIT
BALANCE
Transcribed Image Text:Adjusting Entries
For ending inventory
Date
Dec. 31, 2021
Inventory
Dec. 31, 2021
Income Summary
For stationary expense
Date
Stationary Expense
Stationary
Account
Account
Recognition of stationary Expense
Stationary balance in unadjusted trial balance
Less Stationary on hand on December 31
Stationary Expense
VR Debit Credit
100 1,60,000
1,60,000
VR Debit Credit
101 40,000
50,000
10,000
40,000
40,000
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