‐up is 20% on cost on all good sold. VAT can be ignored on all transactions. The following transactions took place in the month of August 2020: NO DATE TRANSACTION 2.1 1 Owner contributed a delivery vehicle valued at R200 000 2.2 4 Purchased goods for cash R10 000 and received a trade discount of 5% 2.3 6 Sold 10 Pecan Trees at R50 each for cash to Lilly Rogers 2.4 15 Paid R300 cash for an advert in the local newspaper 2.5 20 Violet took a rose tree as a birthday present for her si
Willow Traders is a nursery in Diepkloof. It is owned by Violet who is studying part‐time at
Rosebank College. Willow Traders uses the perpetual inventory system to record inventory
transactions. Mark‐up is 20% on cost on all good sold.
VAT can be ignored on all transactions.
The following transactions took place in the month of August 2020:
NO DATE TRANSACTION
2.1 1 Owner contributed a delivery vehicle valued at R200 000
2.2 4 Purchased goods for cash R10 000 and received a trade discount of
5%
2.3 6 Sold 10 Pecan Trees at R50 each for cash to Lilly Rogers
2.4 15 Paid R300 cash for an advert in the local newspaper
2.5 20 Violet took a rose tree as a birthday present for her sister. Rose trees
are sold at R75 each 2021
© The Independent Institute of Education (Pty) Ltd 2021
Page 4 of 6
Q.2.1 Analyse each of the above transactions and complete the table as follows:
Example: Paid R200 for Telephone Account
NO ACCOUNT
DEBITED
ACCOUNT
CREDITED
ASSETS OWNER’S
EQUITY
LIABILITIES
Example Telephone Bank ‐200 ‐200
Show the double entry (debit and credit general ledger names), as well as the
effect on the
provided. Ensure that you use the + and – signs to show the effect on the
equation as marks will be allocated for these.
Round to the nearest rand
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