Question
Mzanzi Couture is owned by fashion designer Petro Stevens and is a registered VAT vendor. Mzanzi Couture only trades with other registered VAT vendors. The
Mzanzi Couture is owned by fashion designer Petro Stevens and is a registered VAT vendor.
Mzanzi Couture only trades with other registered VAT vendors.
The business charges 15% VAT on all its sales. All amounts are inclusive of 15% VAT unless VAT is
not applicable (or stated otherwise).
The business uses the PERPETUAL inventory system and marks up its inventory at 25% on sales
unless stated otherwise.
All cash received is deposited daily.
Transactions for the month of January 2023 are as follows:
Day 2: Petro stevens contributed 10000 cash
Day 4: cash sales is 17250
Day 6: paid 800 for petrol from petty cash
Day 10: received 2500 from abs bank for interest received on current account
Day 12: eft payment received for rent 2000 ( exempt supply as dwelling is for private use)
Day 17: purchased stationary from PAS stationers for 575 from petty cash
Balances at 31 December 2022
Bank(unfavourable)- 12000
Petty cash- 3500
The total of the bank column in the cash book payments for January 2023 was 18000
Required:
Q.4.1: Record the transactions given above in the cash book receipts for the month of January 2023. The columns you will need are: day, details, bank, output vat, sales, sundry accounts and cost of sales
Prepare the following general ledger accounts using the information provided above as well as the cash book receipts prepared in Q.4.1:
Bank
Petty Cash
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