Question 2

The following accounting records show information regarding the debtors of funkytunes;

Cash receipt Journal for the month ended 31 January 2020.

Date (January)	Receipts	Details	Total	VAT	Debtors	Cash sales	Other
5	712	H Stoop	1 035	135	900
8	714 - 718	Cash	27 600	3 600		24 000
12	457	M Lubbe	1 150		1 150
21	923	B Zaba	575		515
27	418	S Ntondo	2 300		2 300
31		Interest received	150				150
		Total	32 810	3 735	4 865	24 000	150

Sales Journal for the month ended 31 January 2020.

Date (January)	Invoice	Details	Total	VAT	Sales
5	582	S Ntondo	966	126	840
6	583	M Lubbe	456	56	400
12	586	B Fouche	920	120	800
14	587	B Riley	1 000		1 000
22	590	S Ntondo	345	45	345
		Total	3 687	347	3 385

The accountant prepared the following debtors control account in the general ledger:

Debtors Control A/C

Date	Details	Amount	Date	Details	Amount
1 Jan 2020	Balance	14 800
31 Jan 2020	Sales (SJ)	3 340	31 Jan 2020	Bank (CRJ)
	VAT (SJ)	347
			31 Jan 2020	Balance	13 622
	Total	18 487		Total	18 487
1 Feb 2020	Balance	13 622

Additional information;

1. Assume there are no adding errors in the information provided

2. According to the agreement with debtors, interest of 2% per month is levied on all the outstanding debt at the beginning of each month, irrespective of when the sale took place or when the balance was settled, interest for january 2020 must still be recorded.

3. According to the duplicate deposit slip (receipt no; 923), the amount deposited was $575.

4. It was discovered that the accountant recorded sales transaction with Mr M Lubbe on 6 january 2020 at Vat rate of 14% in the sales journal. the correct vat rate was however used on invoice. the correct amount was $400 excluding vat.

5. A trade discount of 10% was granted on the sales transaction with Mr.s B Fouche on 12 January 2020, however the accountant forogot to take into account when he recorded it in the sales journal.

6. The sales transaction of $1 150 on 14 january 2020 was made to Mr.s B Riley, who is not registered for VAT.

7. Included in the debtors control account opening balance of $14 800, is an amount of $2 140 due by Mr. S Ntondo

REQUIRED:

a) Prepare the supplementary debtors control account in the general ledger of funkytunes for the month ended 31 january 2020.

b) Calculate the balance for Mr. S Ntondo as it would appear in the debtors list on 31 January 2020.