Trueman Traders applies the periodic inventory recording system and is registered as a VAT vendor. VAT invoices are received and supplied in respect of all transactions. The VAT period of the business ends on equal months (Feb, Apr, Jun, Aug, etc). The owner of Trueman Traders is T Trueman. Trueman Traders entered into the following transactions for July 2022 (Where VAT is applicable to a transaction, a 15% VAT inclusive amount is given, except where it is specifically indicated that a VAT exclusive amount is given): R Trueman Traders entered into the following transactions for July 2022 (Where VAT is applicable to a transaction, a 15% VAT Inclusive amount is given, except where it is specifically indicated that a VAT exclusive amount is given): T Trueman deposited capital into the bank account of the business... Paid Rent Lid for the rental fee of July (VAT exclusive amount) Purchased trading inventory an credit from RR Limited Purchased equipment per debit card from AM Suppliers 439 1 009 10 695 2 780 Sold trading inventory on credit to N Ntuli. 6 900 3 Cash sales of trading inventory.. 4 255 5 Issued a credit note to N Ntuli for trading inventory returned by him. (The inventory was purchased by N 1955 Ntuli on 2 July 2022.) 9 Paid RR Limited an account.. Received discount on the account from RR Limited due to the above repayment. 10 Purchased stationery from ABC Ltd on credit 11 Paid AM Suppliers for the purchase of equipment. 690 1035 Sold trading inventory to M Misty, who paid by debit card. 8 050 15 Received a payment from debtor N Ntuli in full settlement of his account 4 600 16 Purchased trading inventory on credit from C Columbus (VAT exclusive amount). 1 311 17 Sold trading inventory for cash (VAT exclusive amount) 4 640 22 Purchased trading inventory for cash from B Bald.. 805 23 Sold trading inventory on credit to M Misty (VAT exclusive amount). 24 The owner of Trueman Traders took trading inventory for personal use... 1840 25 Paid Med Pharm from the bank account of the business to settle the account of T Trueman's unemployed girlfriend... 345 28 Received a payment from debtor M Misty in partial settlement of her account Paid salaries by means of electronic transfers. Prepare the following subsidiary journals of Trueman Traders, properly totalled for July 2022 -Cash receipts journal (with analysis columns for bank, sales, debtors control, settlement discount granted, VAT input, VAT output and sundry accounts) -Cash payments journal (with analysis columns for bank, purchases, creditors control, settlement discount received, VAT input, VAT output and sundry accounts) -Saes journal (with analysis columns for debtors control, VAT output and sales) -Purchases journal (with analysis columns for creditors control, VAT input and purchases) -Sales returns journal (with analysis columns for debtors control, VAT output and sales returns) -General journal 9 890

Trueman Traders applies the periodic inventory recording system and is registered as a VAT vendor. VAT invoices are received and supplied in respect of all transactions. The VAT period of the business ends on equal months (Feb, Apr, Jun, Aug, etc). The owner of Trueman Traders is T Trueman. Trueman Traders entered into the following transactions for July 2022 (Where VAT is applicable to a transaction, a 15% VAT inclusive amount is given, except where it is specifically indicated that a VAT exclusive amount is given): R Trueman Traders entered into the following transactions for July 2022 (Where VAT is applicable to a transaction, a 15% VAT Inclusive amount is given, except where it is specifically indicated that a VAT exclusive amount is given): T Trueman deposited capital into the bank account of the business... Paid Rent Lid for the rental fee of July (VAT exclusive amount) Purchased trading inventory an credit from RR Limited Purchased equipment per debit card from AM Suppliers 439 1 009 10 695 2 780 Sold trading inventory on credit to N Ntuli. 6 900 3 Cash sales of trading inventory.. 4 255 5 Issued a credit note to N Ntuli for trading inventory returned by him. (The inventory was purchased by N 1955 Ntuli on 2 July 2022.) 9 Paid RR Limited an account.. Received discount on the account from RR Limited due to the above repayment. 10 Purchased stationery from ABC Ltd on credit 11 Paid AM Suppliers for the purchase of equipment. 690 1035 Sold trading inventory to M Misty, who paid by debit card. 8 050 15 Received a payment from debtor N Ntuli in full settlement of his account 4 600 16 Purchased trading inventory on credit from C Columbus (VAT exclusive amount). 1 311 17 Sold trading inventory for cash (VAT exclusive amount) 4 640 22 Purchased trading inventory for cash from B Bald.. 805 23 Sold trading inventory on credit to M Misty (VAT exclusive amount). 24 The owner of Trueman Traders took trading inventory for personal use... 1840 25 Paid Med Pharm from the bank account of the business to settle the account of T Trueman's unemployed girlfriend... 345 28 Received a payment from debtor M Misty in partial settlement of her account Paid salaries by means of electronic transfers. Prepare the following subsidiary journals of Trueman Traders, properly totalled for July 2022 -Cash receipts journal (with analysis columns for bank, sales, debtors control, settlement discount granted, VAT input, VAT output and sundry accounts) -Cash payments journal (with analysis columns for bank, purchases, creditors control, settlement discount received, VAT input, VAT output and sundry accounts) -Saes journal (with analysis columns for debtors control, VAT output and sales) -Purchases journal (with analysis columns for creditors control, VAT input and purchases) -Sales returns journal (with analysis columns for debtors control, VAT output and sales returns) -General journal 9 890

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 2CPP: Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account...

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