Question 3 Steven owns and runs a store called Zodiac General Dealer He allows goods to be sold on credit Zodiac's year end is 28 February Steven went over all information pertaining to debtors to find out why the Debtors Control balance was not the same as the total of the Debtors List He discovered the following Invoice 209 for R4 270 made out to B Baker was entered into the account of C Baker in error The Debtors Allowances column in the Debtors Allowances Journal was added incorrectly as R21 790 The correct amount was R24 790 An invoice made out to Mr Asher was incorrectly recorded as R16 840 in the Debtors Journal The invoice was for R16 480 The incorrect amount was also posted to the Debtors ledger Interest of R270 should have been added to Miss Capricorns account The bookkeeper had forgotten to do this and had not made any entries for this Connor Davis paid R4 950 after receiving a 10 settlement discount These transactions were correctly recorded in the cashbook receipts and general journal respectively The bookkeeper posted the general journal entries to the general ledger, but not to the individual account of Connor Davis in the debtors ledger On the 25 February 2023 Zodiac received R8 300 from Michaela Walsh Michaela Walshs account was previously written off as a bad debt in December 2022 The receipt now received was entered into the Debtors Control column in the Cashbook receipts The total of the debtors control column was posted to the debtors control general ledger account The Debtors control balance on 28th February 2023 R42 640 The Debtors List Balance on 28th February 2023 R48490 Zodiac sent the following statement of account to a debtor, Antares Stores Q 3 9 Write down in which column on the bank statement (debit credit) the R10 000 will appear once it has been deposited Q 3 10 In which journal will the R10 000 be recorded Q 3 11 Zodiac General Dealers has come to the realisation that interest is not an effective way of getting their debtors to pay Do you agree or disagree that this has been an effective method to get debtors to pay on time Provide 2 reasons as to why you agree or disagree Provide 1 alternative method Zodiac General Dealers could use to ensure that Antares Stores pays within 60 days of the statement date 5 discount granted if paid within 30 days of statement date Debt must be paid within 60 days of statement date Interest charged at 2 per month on balances 90 days overdue 5 discount granted if paid within 30 days of statement date Debt must be paid within 60 days of statement date Interest charged at 2 per month on balances 90 days overdue

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Question 3 Steven owns and runs a store called Zodiac General Dealer. He allows goods to be sold on credit. Zodiac's year-end is 28 February.

Question 3

Steven owns and runs a store called Zodiac General Dealer. He allows goods to be sold on credit. Zodiac's year-end is 28 February. Steven went over all information pertaining to debtors to find out why the Debtors Control balance was not the same as the total of the Debtors List.

He discovered the following:

Invoice 209 for R4 270 made out to B Baker was entered into the account of C Baker in error.
The Debtors Allowances column in the Debtors Allowances Journal was added incorrectly as R21 790. The correct amount was R24 790.
An invoice made out to Mr Asher was incorrectly recorded as R16 840 in the Debtors Journal. The invoice was for R16 480. The incorrect amount was also posted to the Debtors ledger.
Interest of R270 should have been added to Miss Capricorns account. The bookkeeper had forgotten to do this and had not made any entries for this.
Connor Davis paid R4 950 after receiving a 10% settlement discount. These transactions were correctly recorded in the cashbook receipts and general journal respectively. The bookkeeper posted the general journal entries to the general ledger, but not to the individual account of Connor Davis in the debtors ledger.
On the 25 February 2023 Zodiac received R8 300 from Michaela Walsh. Michaela Walshs account was previously written off as a bad debt in December 2022. The receipt now received was entered into the Debtors Control column in the Cashbook receipts. The total of the debtors control column was posted to the debtors control general ledger account.
The Debtors control balance on 28th February 2023: R42 640
The Debtors List Balance on 28th February 2023: R48490

Zodiac sent the following statement of account to a debtor, Antares Stores:

Q.3.9 Write down in which column on the bank statement (debit/credit) the R10 000 will appear once it has been deposited.

Q.3.10 In which journal will the R10 000 be recorded?

Q.3.11 Zodiac General Dealers has come to the realisation that interest is not an effective way of getting their debtors to pay.

Do you agree or disagree that this has been an effective method to get debtors to pay on time?
Provide 2 reasons as to why you agree or disagree
Provide 1 alternative method Zodiac General Dealers could use to ensure that Antares Stores pays within 60 days of the statement date

- 5% discount granted if paid within 30 days of statement date. - Debt must be paid within 60 days of statement date. - Interest charged at 2% per month on balances 90 days overdue. - 5% discount granted if paid within 30 days of statement date. - Debt must be paid within 60 days of statement date. - Interest charged at 2% per month on balances 90 days overdue