Wonder Wholesalers buys fertiliser in bulk, packages it and supplies major nursery outlets with 10-kg bags of Wonder Lawn and Wonder Flower fertilisers.

Wonder Wholesalers had these accounts, amongst others, in their general ledger on 15 July (two weeks into the new financial year).

Transactions for July:

16 Received delivery of four tons of fertiliser and an invoice for R1 700 from Fedmis. Paid delivery charges of R200.

18 Paid R300 for plastic bags and packaging labour.

21 Sold 150 bags of Wonder Lawn to Biggs Nurseries on credit for R750. The cost was R600.

23 Biggs Nurseries returned 50 bags of Green Lawn as they claimed that the original order was for only 100 bags.

25 Sold 120 bags of Wonder Flower to Valley Nurseries for R8.50 per bag. The cost price was R7.25 per bag.

You are required to:

1. Enter the transactions into the general journal.

2. Post the transactions to the general ledger.

3. Draft the trading account as it would appear at the end of July.

Transcribed Image Text:

Inventory Sales Cost of sales Accounts receivable Accounts payable Bank 18 960 00 25 000 00 20 000 00 3 600 00 8 400 00 1 250 00