Mr. Anza Budah is the owner of Anzero Enterprises. The business specializes in buying and selling bottles of Mphezu fruit juice – “Just Mphezu juice”. Anzero Enterprises accounts for inventory using perpetual inventory system on the Fist-In First-Out (FIFO) basis. The business is registered for VAT and VAT rate is 15%. Anzero Enterprises has a 31 December financial year end.

The following transactions took place during the financial year ended 2019.

1. Trade inventories on hand on 1 January 2019 amount to R112 000.
2. Credit purchases from suppliers during 2019 amount to R1 104 000 (VAT inclusive).
3. Returns to suppliers during 2019 amount to R36 800 (VAT inclusive).
4. Credit sales during 2019 amount to R1 642 200 (VAT inclusive) and cost of the sales is R816 000.
5. Returns by customers during 2019 amount to R32 200 (VAT inclusive), with a cost of sales of R16 000.
6. The system indicate that there should be R240 000 on hand on 31 December 2019.
7. Trade inventories on hand on 31 December 2019, as determined through a physical inventories count, amount to R220 000
8. REQUIRED:

9. Recognize the abovementioned transactions and events in the records (general journal) of Anzero Enterprises for the reporting period ended 31 December 2019.

10. Show the following accounts in the general ledger of Anzero Enterprises for the reporting period ended 31 December 2019:
11. Cost of sales
12. VAT control account