Barry Blender, a renowned chef, stumbled across an eight-in-one blender while on holiday.
Upon his return, he decided to quit his current job at the Cape International Hotel to start a trading business called, Blender Craze Enterprises.

Barry bought blenders in bulk and sold it through a chain of retailers in Cape Town.

Blender Craze was immediately registered for VAT.

Blender Craze Enterprises uses the perpetual inventory system to account for inventory movements. Cost of sales is calculated using the first-in-first-out (FIFO) system.

Additional information:

• On 28 February 20x1, there were 30 units on hand at a cost of R200 per unit (VAT excl.).

• The VAT payable to the SARS on 28 February 20x1 was R11 335.

Note

• Blender Craze Enterprises uses a mark-up of 50% on the cost of goods sold.

• All amounts include VAT, unless stated.

Transactions for March:

4 Purchased 100 blenders at a cost of R228 per unit from Blender World on credit. Delivery charges were incurred that amounted to R285. The delivery charges were settled in cash.

5 Sold 60 blenders to Verimail on credit.

12 Sold 60 blenders to Glomark on credit.
Glomark returned 10 blenders as they claimed that the original order was for 50 and not 60 blenders.

13 Settled the VAT liability as shown at the beginning of the period.

18 Purchased 200 additional blenders from Blender World and issued cheque 383.

Blender World gave them a trade discount of 10% on the normal price.

(See transaction dated 4 March.)

23 Verimail settled the amount outstanding on their statement of account.

26 Sold 100 blenders to Glomark on credit.

30 Returned 25 defective blenders to Blender World. These blenders were bought on 18

March. Blender World paid out the amount in cash on the same day.

You are required to:
Prepare/record the above transactions in the general journal for the period ending 31 March 20x1.