QUESTION 1

Hollow Oaks Dealers is run by Harry Hollow, a sole trader. Hollow Oaks Dealers is a general dealer who uses the perpetual inventory system. A constant mark?up of 20% on cost price is used.

The business is a registered VAT vendor and trades only with registered VAT Vendors. The business charges 15% VAT on all its sales. All amounts are inclusive of VAT unless VAT is not applicable.

They deposit any monies received on the same day. Hollow Oaks Dealers do not expect to award any settlement discounts, nor does it expect

to qualify for any settlement discounts. All settlement discounts are therefore deemed to be incidental in nature.

Transactions, amongst other for March 2020:

Date Details of the transactions 1 Sold inventory on credit to Nandi Traders Ltd, credit invoice (C103) for R 45 000 (excluding VAT). 3 Received business rent from G. Howard, R6 540. 8 Weekly cash sales of inventory, R258 000. Nandi Traders Ltd returned unwanted goods, R3 200 (excluding VAT) see 1 March 2020. 15 Owner took inventory for own use, cost R 15 400. 23 Sold Inventory on credit to R. Lathebe, R76 430. 27 Nandi Traders paid R 27 800 towards her outstanding account. 30 R. Lathebe has been declared insolvent. A cheque of 40 cents in the rand for the amount purchased on 23 March was sent by his lawyer on 30 March 2020. The balance will need to be written off.Debtors journal of Holly Oaks Dealers for March 2020 DJ Day Details Fol. Debtors Control Output VAT Sales Cost of salesDAJ Debtors allowances journal of Holly Oaks Dealers for March 2020 Day Details Fol. Debtors Control Input VAT Sales returns Cost of salesCashbook Receipts of Holly Oak Traders for March 2020 CBR Day Details Fol. Bank Debtors Output VAT Sales Sundry Accounts Cost of sales Control Amount Fol. DetailsDR Sales N10 CR Date Details Fol. Amount Date Details Fol. AmountDR Cost of Sales N11 CR Date Details Fol. Amount Date Details Fol. Amount