The following information relates to Red Traders, who trade in glass vases. Red Traders is a registered VAT vendor and only deals with other VAT vendors. All amounts include VAT at 15%, where applicable, unless otherwise indicated. Question 2.1 The following information relates to Red Traders: Balances on 1 February 2019: Debtors Control R83 000 Creditors Control R72 500 The following totals appeared in the subsidiary journals as at 28 February 2019: Total cash sales of merchandise R567 000 Total credit purchases of goods R365 000 Total credit sales (including 15% VAT) of merchandise R485 000 Total payments to Creditors on account in Cashbook Payments R436 000 Total payments received from Debtors in Cashbook Receipts R378 000 Total settlement discount given to Debtors R15 000 Cheques dishonoured as per Cashbook Payments R81 000 Discount (previously granted to debtors) cancelled R7 000 Total returns of goods received from Debtors R56 000 Debtors declared insolvent and balances written off R82 000 Transfer of credit account balance in creditors ledger to account in debtors ledger R55 000 Transfer of credit account balance in debtors ledger to account in creditors ledger R76 000 Required: Q.2.1 Use the information given to draw up the Debtors Control account in the general ledger of Red Traders. DO NOT BALANCE THE ACCOUNT.
The following information relates to Red Traders, who trade in glass vases. Red Traders is a registered VAT vendor and only deals with other VAT vendors. All amounts include VAT at 15%, where applicable, unless otherwise indicated. Question 2.1 The following information relates to Red Traders: Balances on 1 February 2019: Debtors Control R83 000 Creditors Control R72 500 The following totals appeared in the subsidiary journals as at 28 February 2019: Total cash sales of merchandise R567 000 Total credit purchases of goods R365 000 Total credit sales (including 15% VAT) of merchandise R485 000 Total payments to Creditors on account in Cashbook Payments R436 000 Total payments received from Debtors in Cashbook Receipts R378 000 Total settlement discount given to Debtors R15 000 Cheques dishonoured as per Cashbook Payments R81 000 Discount (previously granted to debtors) cancelled R7 000 Total returns of goods received from Debtors R56 000 Debtors declared insolvent and balances written off R82 000 Transfer of credit account balance in creditors ledger to account in debtors ledger R55 000 Transfer of credit account balance in debtors ledger to account in creditors ledger R76 000 Required: Q.2.1 Use the information given to draw up the Debtors Control account in the general ledger of Red Traders. DO NOT BALANCE THE ACCOUNT.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following information relates to Red Traders, who trade in glass vases. Red Traders is a
registered VAT vendor and only deals with other VAT vendors. All amounts include VAT at 15%,
where applicable, unless otherwise indicated.
Question 2.1
The following information relates to Red Traders:
Balances on 1 February 2019:
Debtors Control R83 000
Creditors Control R72 500
The following totals appeared in the subsidiary journals as at 28 February 2019:
Total cash sales of merchandise
R567 000
Total credit purchases of goods
R365 000
Total credit sales (including 15% VAT) of merchandise
R485 000
Total payments to Creditors on account in Cashbook Payments
R436 000
Total payments received from Debtors in Cashbook Receipts
R378 000
Total settlement discount given to Debtors
R15 000
Cheques dishonoured as per Cashbook Payments
R81 000
Discount (previously granted to debtors) cancelled
R7 000
Total returns of goods received from Debtors
R56 000
Debtors declared insolvent and balances written off
R82 000
Transfer of credit account balance in creditors ledger to account in debtors ledger
R55 000
Transfer of credit account balance in debtors ledger to account in creditors ledger
R76 000
Required:
Q.2.1
Use the information given to draw up the Debtors Control account in the
general ledger of Red Traders.
DO NOT BALANCE THE ACCOUNT.
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