Question 1: This question provides evidence against CILO 1 (25 marks)

Almahari Trading is a VAT registered business that operates in Bahrain. It sells furniture to other business. The following are the sales invoices and credit notes of the business for the month of January 2021.

Jan 12, 2021	Sent an invoice to Alsaleh Ltd for BD 2,000 plus VAT.
Jan 15, 2021	Sent an invoice to Alnazhi co for BD 1,500 plus VAT.
Jan 18, 2021	Sent an invoice to Kazeronifor BD 8,000 plus VAT.
Jan 19, 2021	Sent a credit note to Alsaleh Ltd for BD 420 including VAT.
Jan 21, 2021	Sent an invoice to Alnazhi Ltd for BD 6,000 plus VAT.
Jan 27, 2021	Sent a credit note to Kazeroni for BD 840 including VAT.

As an accountant working for Almahari Trading, you are required to:

1. Prepare the sales daybook for January 2021 in the following format.(7.5 marks)

Sales Daybook
Date	Debtor	Net (BD)	VAT (BD)	Gross (BD)
Total

2. Prepare the sales returns daybook for January 2021 in the following format. (4.5 marks)

Sales Returns Daybook
Date	Debtor	Net (BD)	VAT (BD)	Gross (BD)
Total

The following are the purchases daybook, and the purchases returns daybook for the business for the month of January 2021.

Purchases Daybook
Date	Creditor	Net (BD)	VAT (BD)	Gross (BD)
Jan 02, 2021	Karama plc	500	25	525
Jan 23, 2021	Karama plc	360	18	378
Jan 24, 2021	Sabeel Ltd	840	42	882

Purchases Returns Daybook
Date	Creditor	Net (BD)	VAT (BD)	Gross (BD)
Jan 12, 2021	Karama plc	60	3	63
Jan 29, 2021	Sabeel Ltd	40	2	42

From the above daybooks, you are required to:

3. Prepare the following creditors accounts for the month of January in the provided format, showing the balance of the account at the end of the month. (7 marks)

Karama plc

Sabeel Ltd