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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)

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.

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