Question 1 [40] THE ACCOUNTING EQUATION M Juma started his own business, MJ Stores. He uses the continuous inventory system. The following transactions took place during April 2019: 1. M Juma withdrew R50 000 from the business's current bank account and deposited it in his personal bank account to reduce his capital contribution. 2. Invested R100 000 as a fixed deposit at NB Bank at 8% interest per annum. 3. Purchased merchandise on credit from JB Traders for R3 500 less 10% trade discount. JB Traders also charged a delivery fee of R420 on the invoice. 4. Sold goods on credit to N Costa, R9 100. The markup on cost was R2 600. 5. An allowance of R1 360 was given to N Costa for damaged goods supplied to him. The markup on cost was 25% 6. The owner took stock for his son's use. The selling price of the goods was R2 240 and the cost price was R1 600. 7. According to the bank statement received on 30 April 2019, bank charges for the month totalled R380. B. Received R800 from NB Bank as interest on fixed deposit. Interest is not capitalised. Required: Analyse and record the above transactions according to the format in the answer book provided. Note: Assume that the bank balance is always favourable.Question 2 [26] VAT 2.1. Choose a word/phrase from the list of alternatives provided below to complete statements 2.1.1-2.1.4. Write only the word/phrase next to the question number in the answer book. Alternatives: Evasion VAT zero-rated Input VAT Avoidance Output VAT VAT exempted2.1.1. is VAT collected from customers. 2.1.2. Fees payable for education is an example of a good or service. 2.1.3. Tax is illegal and punishable by law. 2.1.4. is VAT paid when goods are purchased by the business. NNNN 2.2. Calculate the amounts missing in the table below and then complete the table. Note: The VAT rate is 15%, Total amount Selling 20 paid to Actual Markup Selling price pals supplier price (VAT Input VAT price Output (VAT exclusive) percentage on cost (VAT VAT by consumer Inclusive) exclusive) (VAT inclusive) Example: 1 380 1 200 180 100% 2 400 360 2 760 ? 2 000 ? 60% ? ? ? ? ? 90 200%% ? ? 2 070 (18)