Question 2 Nerina Traders, a gift shop, situated in Ilovo is owned by Serena Lopez. The business is a registered VAT vendor and trades only with other registered vendors. All amounts including 15% VAT where applicable, except if otherwise indicated. They use a periodic inventory system and all goods are marked up at 20% above cost, before considering any trade discounts. The business does not expect to award any settlement discounts nor to qualify for any settlement discounts. All occurrences of settlement discounts are therefore incidental in nature. Debtors balances as at 31 January 2020: Pinky Leshaba R3 50o. The following transactions took place in the month of February 2020 : DATE TRANSACTION 1 Sold goods on credit to Pinky Leshaba for R2 500 excluding VAT The invoice provided to Pinky Leshaba on the 1" February was overcast by R230 including VAT. Pinky Leshaba has accepted this amount and the error needs to be corrected. Hint: this should be treated in a similar way as a rebate. Goods sold on credit to Siya Khumalo for R920 including VAT 10 Siya Khumalo returned damaged goods R100 excluding VAT 15 Goods sold on credit to Pinky Leshaba R1 000 excluding VAT
Question 2 Nerina Traders, a gift shop, situated in Ilovo is owned by Serena Lopez. The business is a registered VAT vendor and trades only with other registered vendors. All amounts including 15% VAT where applicable, except if otherwise indicated. They use a periodic inventory system and all goods are marked up at 20% above cost, before considering any trade discounts. The business does not expect to award any settlement discounts nor to qualify for any settlement discounts. All occurrences of settlement discounts are therefore incidental in nature. Debtors balances as at 31 January 2020: Pinky Leshaba R3 50o. The following transactions took place in the month of February 2020 : DATE TRANSACTION 1 Sold goods on credit to Pinky Leshaba for R2 500 excluding VAT The invoice provided to Pinky Leshaba on the 1" February was overcast by R230 including VAT. Pinky Leshaba has accepted this amount and the error needs to be corrected. Hint: this should be treated in a similar way as a rebate. Goods sold on credit to Siya Khumalo for R920 including VAT 10 Siya Khumalo returned damaged goods R100 excluding VAT 15 Goods sold on credit to Pinky Leshaba R1 000 excluding VAT
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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