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:

DATE. TRANSACTION

2. Petro Stevens contributed R10 000 cash

4. Cash sales R17 250

6. Paid R800 for petrol from Petty cash

10. Received R2 500 from ABS Bank for interest received on current account

12. EFT payment received for rent R2 000 (Exempt supply as dwelling is for private use)

17. Purchased stationery from PAS Stationers for R575 from petty cash

Balances at 31 December 2022

Bank (unfavourable) - R12 000

Petty Cash-R3 500

The total of the bank column in the cash book payments for January 2023 was R18 000

Required:

Record the transactions given above in the cash book receipts for the month of

Q.4.1

January 2023. The columns you will need are:

Day

Details

Bank

Output VAT

Sales

Sundry accounts

Cost of sales

No document numbers, folios or analysis of receipts columns are required. You need only total the Bank column.

Q.4.2

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