15% VAT is included where it is applicable. The following transactions have taken place
during March 2023 at STATIONERY & SPORT SHOP:
REQUIRED:
Complete the Journals of STATIONERY & SPORT SHOP for the month March 2023. VAT
at 15% must be taken into account. The business uses the periodic stock system.
TRANSACTIONS FOR MARCH 2023:
1 The business received an additional loan of R30 000 at 18% interest per annum
from Africa Bank to be paid back in full on 1 March 2024. Interest on the loan,
however, must be paid on a monthly basis. The amount was paid directly into the
business current account.
Receive invoice XDC325 from Motor Mac Ltd for the purchase of goods, R 4 140
minus 20% trading discount. The invoice will be renumbered to nr.13.
3 Cash sales of trading stock amount to R18 055 for the week according to the cash
register roll nr.112-122.
Pay Boswell Traders R6 201 by EFT nr. 77 as settlement of the amount due after
4,6% allowance has been taken into consideration.
Receive an invoice XDC325 from Mona’s Garage for repair work done on credit,
R1 035.
4 Pay the weekly wages of employees by EFT nr. 78, R6 420.
Trading stock is bought on account from Cupid Traders for R 330 minus 10%
trading discount and is given to the Ferox Orphanage as a donation. These goods
have not been taken into stock because it was directly delivered to the Ferox
Orphanage at the request of the owner, A Lehman.
6 According to the bank statement received from ABSA Bank, the bank charges the
overdrawn bank account of Rainbow Traders with R180 interest.
Pay R14 582 by EFT nr. 79 to Zip Traders for goods purchased.
9 P. Crooks settled the amount owing of R 646 to date by depositing R600 by EFT
directly into the business bank account. Receipt nr. 211 was issued to him
Journal Entries for STATIONERY & SPORT SHOP for March 2023:
1. Loan Received from Africa Bank:
Dr Bank (Loan) R30,000
Cr Loan Payable R30,000
2. Purchase of goods from Motor Mac Ltd:
Dr Purchases R5,175 (R4,140 / 0.8)
Dr VAT Input R825 (R5,175 x 0.15)
Cr Accounts Payable R4,140
3. Cash Sales of Trading Stock:
Dr Cash R18,055
Cr Sales R18,055
4. Payment to Boswell Traders:
Dr Accounts Payable R6,440 (R6,201 / 0.964)
Cr Bank R6,201
Cr Discounts Allowed R239
5. Repair work done by Mona’s Garage:
Dr Repair Expense R1,035
Cr Accounts Payable R1,035
6. Payment of Wages:
Dr Wages Expense R6,420
Cr Bank R6,420
7. Donation to Ferox Orphanage:
Dr Donation Expense R330
Cr Purchases R330
8. Bank Charges:
Dr Bank Charges R180
Cr Bank R180
9. Payment to Zip Traders:
Dr Accounts Payable R14,582
Cr Bank R14,582
10. Partial Payment from P. Crooks:
Dr Bank R600
Cr Accounts Receivable R600
These are the journal entries for the transactions that took place at STATIONERY & SPORT SHOP for the month of March 2023.