question 2.1

Question 2 (15 marks) Fine Furniture (Pty) Ltd, a VAT-registered vendor registered on the invoice basis, had the following transactions for the month of June 2020. All amounts stated are inclusive of VAT (at 15%), except if stated otherwise or where VAT is not applicable. The business uses the perpetual system when accounting for inventory. a) b) c) On 9 June, the owner took home a coffee table, which was meant for sale, for his personal use. This coffee table had a selling price of R10 925 (VAT-inclusive) and a margin (on sales) of 50%. On 25 June, the business sold goods on credit. These goods had a cost price (VAT-inclusive) of R713 000 and a mark-up (on cost) of 125%. (Both the cost of sales and sales need to be accounted for.) On 29 June, the business bought tea, coffee and milk for office use. The total cost was R$75 (VAT-inclusive) and they were paid for from petty cash. On 30 June, the business bank account showed a debit for a total amount of R2 472.50. of this amount, R2 300 of this was for interest charges and the rest was for bank charges. d) Required: 2.1 Prepare the General Journal of Fine Furniture (Pty) Ltd for the month of June 2020 by copying and completing the table below. (15) NB: Workings are not required. No. Details Debit Credit a) b) d) Note: ignore folio column and narrations