On 3 January 2019 Zandile's Boutique bought trade goods on credit from Nom's Wholesalers for R22 000, subject to a trade discount of 10%. A settlement discount of 5% is granted if the account is settled within 30 days from the date of purchase. If payment for this purchase is made on 1 March 2019, which one of the following is the amount that Zandile should pay Nom's Wholesalers in terms of the agreement of purchase and sale: (ignore VAT) A) R19 800. B) R22 000. C) R18 810. D) R20 790.
On 3 January 2019 Zandile's Boutique bought trade goods on credit from Nom's Wholesalers for R22 000, subject to a trade discount of 10%. A settlement discount of 5% is granted if the account is settled within 30 days from the date of purchase. If payment for this purchase is made on 1 March 2019, which one of the following is the amount that Zandile should pay Nom's Wholesalers in terms of the agreement of purchase and sale: (ignore VAT) A) R19 800. B) R22 000. C) R18 810. D) R20 790.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On 3 January 2019 Zandile's Boutique bought trade goods on credit from Nom's
Wholesalers for R22 000, subject to a trade discount of 10%. A settlement
discount of 5% is granted if the account is settled within 30 days from the date of
purchase. If payment for this purchase is made on 1 March 2019, which one of
the following is the amount that Zandile should pay Nom's Wholesalers in terms
of the agreement of purchase and sale: (ignore VAT)
A) R19 800.
B) R22 000.
C) R18 810.
D) R20 790.
Assume that Zandile's Boutique registered as a VAT vendor effective 1 March
2019. Zandile's Boutique had a VAT input total amount of R24 760 and a VAT
output total amount of R37 860 at 31 March 2019. Which one of the following
represents the balance of the VAT control account at 31 March 2019?
A) R13 100 debit.
B) R13 100 credit.
C) R62 620 debit.
D) R62 620 credit.
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