Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 2 [28] Assets Owners Liabilities equity 1 520 Mr L Mactans runs a successful computer shop, Bishopi Dealers. All inventories are sold at a

Question 2 [28]
Assets Owners Liabilities equity
1 520
Mr L Mactans runs a successful computer shop, Bishopi Dealers. All inventories are sold at a 35% markup on cost. The following information is available for February 2021. Bishopi is not a registered VAT vendor.
Date Transaction
1. Mr L Mactans deposited R135 500 in the bank account of Bishopi Dealers as capital.
2. Paid rent to Funnel Properties for February 2021, R11 500 (cheque 37).
Bought inventory on credit from a new supplier, Tityus, R18 050 (invoice IN1099).
Page 2 of Assignment
TUTORIAL LETTER 1 (ASSIGNMENT 1) 2021 FIRST SEMESTER ACC101 ACCOUNTING
8. Sold inventory on credit to C Red, R20 925. Issued invoice no. 186.
9. Sold inventory for cash, R27 540 (receipt R142).
Received a cheque from C Red as payment on his account, R6 000. This amount was deposited with the cash sales. Issued receipt no. R143. (The balance owed by C Red on 1 February 2021 was R11 500.)
15. Cashed cheque no. 38 for wages, R8 500.
16. Sold inventory for cash, R23 220 (receipt R144).
Bought inventory on credit from Fattail, R31 500 (invoice M1068).
19. Issued cheque no. 39 to Bark Suppliers for inventory, R21 250.
22. Sold inventory on credit to Arizona, R24 975. Issued invoice no. 187.
Purchased inventory from Scorpion Suppliers, R62 600 (cheque no. 40).
23. Received a cheque from C Red as full settlement of his account. This was deposited with the cash sales. Issued receipt no. R145.
24. Issued cheque no. 41 to Tityus, being payment on the account in full. Sold inventory on credit to L Yellow, R21 600. Issued invoice no. 188.
25. Bought a computer for the office from Arabian on credit for R35 250, as well as inventory for R4 955. Received invoice 698.
Required:
Record the transactions for February 2021 in the following subsidiary journals:
2.1. Cash Receipts Journal (10)
2.2. Cash Payments Journal (7)
2.3. Debtors Journal (6)
2.4. Creditors Journal (5)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions