Mzansi Manufacturers is a manufacturing business that produces products for the motor industry. Mzansi Manufacturers uses a perpetual inventory system. Mzansi Manufacturers is a registered VAT vendor and only deals with other VAT vendors. VAT of $15\%$ applies to all applicable transactions.

The following information is available for a creditor, VBS Brakes, for the month of June $2024.$

Balance owing to VBS Brakes as at $01$ June $2024$ was R$28700.$

Transactions for the month of June $2024$ as recorded in the journals Credit purchases

Transaction date Document number R

$05$ June $2024$ Invoice V$45136248$

$23$ June $2024$ Invoice V$4657015$

Mzansi Manufacturers is a manufacturing business that produces products for the motor industry. Mzansi Manufacturers uses a perpetual inventory system. Mzansi Manufacturers is a registered VAT vendor and only deals with other VAT vendors. VAT of $15\%$ applies to all applicable transactions.

The following information is available for a creditor, VBS Brakes, for the month of June $2024.$

Balance owing to VBS Brakes as at $01$ June $2024$ was R$28700.$

Transactions for the month of June $2024$ as recorded in the journals Credit purchases

Transaction date Document number R

$05$ June $2024$ Invoice V$45136248$

$23$ June $2024$

Invoice V$4657015$

Credit returns

Transaction date Document number R

$09$ June $2024$ CN$215($Original invoice V$451)2875$

Payments

Transaction date

Document number

R

$02$ June $2024$

EFT#$547$

A $?$

The payment on $02$ June $2024$ was in settlement of the balance outstanding on $01$ June $2024.$ VBS Brakes gave Mzansi Manufacturers a $5\%$ discount on settlement of the balance $($JV$98).$

General Journal

Transaction date

Document number

R

$02$ June $2024$

JV$98$

B

Required

On $05$ July $2024,$ Mzansi Manufacturers received a statement dated $30$ June $2024,$ from VBS Brakes. The accountant of Mzansi Manufacturers reviewed the statement and noted that the balance per the statement did not agree to the account balance in the Creditors$$ ledger of Mzansi Manufacturers.

The accountant investigated the differences and found that:

$(9)$

$1.$

Invoice V$451$ was recorded at R$36428$ on the Creditor$$s Statement. The accountant double$-$checked the invoice and found that the invoice had been recorded incorrectly in the Creditors Journal as R$36248.$

$2.$

The settlement discount as per JV$98$ did not appear on the statement from VBS Brakes. Mzansi Manufacturers discussed this with VBS Brakes and VBS Brakes will adjust for it in July $2024.$

$3.$

Invoice V$470$ for R$51750(30$ June $2024)$ was recorded on the statement from VBS Brakes. The goods were only received by Mzansi Manufacturers on $03$ July $2024$ and therefore have not yet been recorded.

Required:

For each of the differences noted in Q$\mathrm{.}5\mathrm{.}3$ above write a brief description of the difference and then discuss how the difference affects the creditors reconciliation, i$.$e$.$ what action should be taken during the reconciliation process and why. Your answer should be set out as below $-$ an example is given