Question 5 (8 points)

EXOTIC HOMES

Exotic Homes CC wanted to extend their building to include a lapa and a braai

facility. They contracted Thatching Lapas (Pty) Ltd to build a new lapa and also to install a stainless steel braai when they are finish with the lapa

Exotic Homes CC agreed to pay a consideration of R100 000 for the lapa and R50 000 for the stainless steel braai. The contract was signed on 1 May 2017 The contract is cancellable in the event of non-performance by Thatching Lapas

(Pty) Ltd

Thatching Lapas (Pty) Ltd completed the lapa on 1 June 2017 and finished installing the stainless steel braai on 1 July 2017 and Exotic Homes CC took control of these on 1 August 2017 They paid Thatching Lapas (Pty) Ltd R150 000 on 1 October 2017 as per agreement

YOU ARE REQUIRED. To journalize the above in the books of Exotic Homes CC

ANSWER

Fill in the correct word(s) and/or amounts below DO NOT USE (space) (1) (RG)

3

6

G17C

A

40 ENG