ANNEXURE F: FORMATIVE ASSESSMENT $1$

QUESTION $3$

$(30$ marks$)$

Bees Books $($Pty$)$ Ltd $("$Bees Books"$)$ is a bookstore in Cape Town with a $30$ November financial year$-$end. Bees Books make use of the perpetual inventory system.

Bees Books is a registered VAT vendor.

$\backslash$table$[[$Account$,\backslash$table$[[$Debit$],[($R$)]],\backslash$table$[[$Credit$],[($R$)]]],[$Trade debtors,$145000,],[$Bank $/($overdraft$),755200,4500],[$Inventory$,,226560],[$Trade payables,,$12500]]$

The following transactions have not yet been recorded for the financial year ended $30$ November $2024$:

Bees Books sold $100$ books on credit in October $2024$ with an invoiced amount of R$36000($including VAT$).$ The cost price of these books sold was R$15000($excluding VAT$).$

$15$ of the books sold in October had water damage and the customers returned these books within one week of purchase.

At the end of October $2024,$ Bees Books received R$28000$ cash from outstanding debtors.

In November $2024,$ Bees Books sold $250$ books on credit with a total selling price of R$62500($excluding VAT$)$ and a cost price of R$150($excluding VAT$)$ per book. Bees Books wanted to encourage debtors to pay the amount owing and offered a settlement discount of $10\%$ if they pay within $10$ days of purchase. Bees Books believes that all customers who bought books in November $2024$ will make use of the discount.

Within $10$ days of purchase all the customers who bought the $250$ books during November $2024$ made use of the settlement discount.

On ${20}^{th}$ of November $2024$ Bees Books received an email from a lawyer stating that E Brooks, a debtor with an outstanding balance of R$3000,$ is insolvent and that a settlement of $20$ cents in the Rand would be paid on the ${15}^{th}$ of November $2024.$ The remaining balance should be written off as irrecoverable.

$63$

HFAC$132-1-$Jul$-$DeC$2024-$FA$1-$EDK$-$V$3-20240717$