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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

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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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: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
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
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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