YEARSYou are given the following transactions for an entity that uses the periodic inventory system:Transaction Details1Sold inventory on credit to Mr J Singh for R8 602(VAT inclusive).2Time left 1:59:36Received payment from debtor, L Letti, for R7 000 in full settlement of her account.Settlement discount of R575 was granted to her.3Credit note X567 was issued to Ms T Nkome, a debtor, for R6 670(VAT inclusive)Instructions:• For each transaction, you must indicate which subsidiary journal the transaction will be entered.• You must then indicate whether the VAT Input account or the VAT Output account in the general ledger must be debited or cre• You must then calculate the VAT amount and enter it in the amount column.TransactionSubsidiary journalGeneral ledger accountAmount12÷÷

Perpetual inventory and periodic inventory are two types of inventory systems chosen by the company…

Instructions: • For each transaction, you must indicate which subsidiary journal the transaction will be entered. • You must then indicate whether the VAT Input account or the VAT Output account in the general ledger must be debited or c • You must then calculate the VAT amount and enter it in the amount column.

Instructions: • For each transaction, you must indicate which subsidiary journal the transaction will be entered. • You must then indicate whether the VAT Input account or the VAT Output account in the general ledger must be debited or c • You must then calculate the VAT amount and enter it in the amount column.

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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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

YEARS
You are given the following transactions for an entity that uses the periodic inventory system:
Transaction Details
1
Sold inventory on credit to Mr J Singh for R8 602(VAT inclusive).
2
Time left 1:59:36
Received payment from debtor, L Letti, for R7 000 in full settlement of her account.
Settlement discount of R575 was granted to her.
3
Credit note X567 was issued to Ms T Nkome, a debtor, for R6 670(VAT inclusive)
Instructions:
• For each transaction, you must indicate which subsidiary journal the transaction will be entered.
• You must then indicate whether the VAT Input account or the VAT Output account in the general ledger must be debited or cre
• You must then calculate the VAT amount and enter it in the amount column.
Transaction
Subsidiary journal
General ledger account
Amount
1
2
÷
÷

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