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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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
÷
÷](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1cf7e750-47e8-418b-94fc-f7f04000f2ce%2Fabb3ace1-8d99-4662-8f07-52a9d3f5b953%2Fswh93zs_processed.png&w=3840&q=75)
Transcribed Image Text: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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