QUESTION $4$

Trans Motors Ltd is the sole importer of rare, limited edition toy cars. Trans Motors Ltd

imports the toy cars and then supplies motor dealerships with these toy cars that are

an exact replica of the original car.

Trans Motors Ltd makes use of a periodic system of recording inventory and their

inventory is measured using the weighted average method.

On $1$ February $2023,$ Trans Motors Ltd bought $60$ VW Polos and $45$ VW Golfs from

their supplier in Germany. The total purchase price for all the toys were R$12750.$ The

cars were shipped FOB shipping point on $7$ May $2023$ and arrived in South Africa on

$29$ June $2023.$

When the toy cars arrived in South Africa, they needed to be painted with rust$-$proof

paint due to the South African climate being different than Germany. The painting was

performed on $29$ June $2023$ after arrival at the entity's premises. The paint were bought

and paid on $29$ June $2023.$

The following related to these transactions and are totals for all toys:

All purchases made and related costs incurred by Trans Motors Ltd are paid in cash

as soon as the toy cars arrive in South Africa.REQUIRED:

Prepare the general journal entries required to document the purchase of toy cars

for Trans Motors Ltd for the financial year ending $30$ June $2023.$ Journal dates are

required.

$(9$ marks$)$

SAICA Competency Framework Reference:

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