Assume a VAT rate of 15%. Rileys Traders is an entity that buys and sells paintings. All parties are registered VAT vendors, and all amounts include VAT unless otherwise stated. The business uses the perpetual system to record their inventory and a gross margin of 20% to determine selling prices. Extract of the Statement of Financial Position of Rileys Traders as at 31 December 2021 Inventory 157 900 Stationery 2 300 Accounts Payable 90 000 SARS (VAT) 30 000 The following transactions occurred during the month of January 2022:

1. Maalik Riley, the owner, deposited a further R300 000 into the business bank account.

2. Paid the amount owing to SARS for the VAT for the previous period.

5. Purchased inventory on credit from Buco Traders, R40 250.

8. Cash sales for the week amounted to R122 475.

9. Issued a cheque amounting to R2 875, for the purchase of stationery.

10. Sold inventory on credit to Mr. Ahmed, R78 660 and allowed a trade discount of 15%.

11. Mr. Arendse returned goods to the value of R5 750.

13. Paid wages, R8 050.

17. Received half of the amount owing from Mr. Ahmed.

20. The owner withdrew R11 500 for personal use.

25. Paid the full amount owing to Buco Traders.

31. On 31 January 2022, the business had stationery amounting to R900 on hand.

You are required to: a) Record the transactions in the general journal. (32 marks)

b) Prepare a VAT Control Account in the general ledger. (8 marks