Question $3($Marks: $5)$Select one correct answer for each of the following. Write down only the number of the questionand, next to it$,$ the letter of the correct answer.If you write down more than one answer, no marks will be awarded.Q$\mathrm{.}3\mathrm{.}1$ A $$debtor$$ is a business or a person $\_\_\_\_\_\_\_\_\_\_\_.(1)($a$)$ our business owes money to$($b$)$ who$($m$)$ owes money to our business$($c$)$ our business purchases on credit from$($d$)$ Sells merchandise to our business for cash$($e$)$ None of the above.

$242024$ The Independent Institute of Education $($Pty$)$ Ltd $2024$Page $6$ of $12$Q$\mathrm{.}3\mathrm{.}2$ A $\_\_\_\_\_\_\_\_\_\_$ is a statement that accompanies payment to a creditor, showing theadjustments necessary to the statement received from the creditor to arrive at thecorrect payment amount.$(1)($a$)$ Creditor$$s list$($b$)$ Creditors statement$($c$)$ Remittance advice$($d$)$ Bank reconciliation statement$($e$)$ EFT confirmation slipQ$\mathrm{.}3\mathrm{.}3$ Interest charged on a debtor's overdue account will be entered in the generalledger accounts as follows:$(1)($a$)$ Debit Bank; credit Interest income$($b$)$ Debit Debtors control; credit Interest income$($c$)$ Debit interest income; credit Debtors Control$($d$)$ Debit Debtors control; credit interest income and VAT$($e$)$ None of the aboveQ$\mathrm{.}3\mathrm{.}4$ The total of the debtors column in the Debtors journal was posted to the credit sideof the debtors control account. The effect of this error caused $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(1)($a$)$ The sales account to reflect an increased balance$($b$)$ The debtors control account to reflect an increased balance$($c$)$ The sales account to reflect a decreased balance.$($d$)$ The debtors control account to reflect a decreased balance$($e$)$ None of the aboveQ$\mathrm{.}3\mathrm{.}5$ A transaction duplicated in error on the statement received from a creditor will berecorded in the$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(1)($a$)$ Cash book payments$($b$)$ Creditors ledger$($c$)$ General journal$($d$)$ Creditors journal$($e$)$ Creditors reconciliation statement.

$242024$ The Independent Institute of Education $($Pty$)$ Ltd $2024$Page $7$ of $12$Question $4($Marks: $30)$Riley$$s Traders is a registered VAT vendor, and all transactions include $15\%$ VAT unless otherwisespecified. The accountant of Riley Traders is in the process of reconciling the Debtors Controlaccount balance with the Debtors List as at $30$ June $2024.$ The balance of the Debtors Controlaccount at $30$ June $2024$ is R$125435$ before any adjustments.The business has prepared the following Age Analysis at the end of June $2024$:Debtors Age Analysis of Riley$$s Traders as at $30$ June $2024$Terms $90$ days$+60$ Days $30$ days Current TotalAtlas Group $30$ days $161074751431023395$Benji Traders Current $0(1610)287501265$Dawson CC $30$ days $0239055201460022510$Ferndale Traders $30$ days $00517523007475$Magnolia Traders $30$ days $1840000018400$Rawson Stores $30$ days $016507800540014850$Rivers Wholesalers $30$ days $5602601543016250$TOTALS $1840046002910552040104145\%$ of total debt $18\%4\%28\%50\%$The accountant has discovered the following adjustments that still need to be processed:$1.$ The total of the Debtors Control column in the Debtors Journal $($R$345000)$ has beentotalled incorrectly and understated by R $2000\mathrm{.}2.$ A deposit of R$2390$ was received from Dawson CC but was recorded in the Cashbook receipts as being received from Rawson Stores. It was subsequently thenposted to Rawson Stores$$ account in the Debtors Ledger and has been aged as apayment of a current invoice$\mathrm{.}3.$ Rivers Wholesalers returned goods during the month and was issued Credit NoteCN$3256$ to the value of R$644.$ The credit note was captured in error in the DebtorsJournal and posted as a duplicate credit invoice.

$242024$ The Independent Institute of Education $($Pty$)$ Ltd $2024$Page $8$ of $124.$ The accountant queried the $60$ days balance outstanding in Atlas Group$$s account.She discovered that this related to a query from Atlas Group where they disputedreceiving the goods. She investigated further and discovered that the goods werefor the account of Benji Traders and that the invoice had been posted to theincorrect account in the Debtors Ledger$\mathrm{.}5.$ Riley Traders also makes credit purchases from Ferndale Traders. The balance ofFerndale Traders account in the Creditors Ledger at $30$ June $2024$ was R$8500.$Ferndale Traders has agreed that the balances in the Creditors and Debtors ledgercan be set off. This entry must still be recorded$\mathrm{.}6.$ Riley Traders was informed at the end of June $2024$ that Magnolia Traders has goneinto liquidation and only $20$ cents in the rand of the debt outstanding will berecoverable once the liquidation is finalised. The accountant has decided totherefore write off the irrecoverable portion at $30$ June $2024.$ This entry must stillbe processed$\mathrm{.}7.$ The total of the Debtors Control column of R$15295($before adjustments$)$ in theDebtors Allowance Journal was posted to the incorrect side of the DebtorsControl$\mathrm{.}8.$ A deposit of R$8395$ relating to a cash sale was recorded in error in the DebtorsControl column instead of the Sales column in the Cash book Receipts. VAT for thetransaction was recorded correctly.Required:Q$\mathrm{.}4\mathrm{.}1$ Riley Tr