Question $6$

$($Marks: $20)$

The following information relates to the accounting records of Li Yokohama who operates her business as Yokohama Trading. She uses the periodic inventory system. The business is a VAT registered vendor as defined. A stocktake held on $31$ May $2024$ revealed that the balance of stock on hand was R$85000.$

The following information was available for the financial year end May $2024$:

$\backslash$table$[[$Details$,$Journal,Amount $($R$)],[$Inventory opening balance $1$ June $2023,,$R$120000],[\backslash$table$[[$Total cash purchases of inventory for the $2024],[$year$]],$Cash book payments,$\backslash$table$[[638250],[($including VAT$)]]],[\backslash$table$[[$Total credit purchases of inventory for the $2024],[$year$]],$Creditors journal,$\backslash$table$[[695000],[($excluding VAT$)]]],[$Total purchases returns for the $2024$ year,$\backslash$table$[[$Creditors allowance$],[$journal$]],\backslash$table$[[7500],[($excluding VAT$)]]],[$Total inventory taken by Li Yokohama,General Journal,$\backslash$table$[[5500],[($excluding VAT$)]]],[\backslash$table$[[$Li Yokohama returned inventory she took home$],[$in error$]],$General Journal,$\backslash$table$[[1500],[($excluding VAT$)]]],[\backslash$table$[[$Total Import duties paid on inventory for the$],[2024$ year$]],$Creditors journal,$\backslash$table$[[65000],[($excluding VAT$)]]],[\backslash$table$[[$Total transport costs on purchases for the $2024],[$year$]],$Creditors journal,$\backslash$table$[[45000],[($excluding VAT$)]]],[\backslash$table$[[$Settlement discount received from creditors on$],[$prompt payment of accounts$]],$General Journal,$\backslash$table$[[4500],[($excluding VAT$)]]]]$

Required:

Q$\mathrm{.}6\mathrm{.}1$ Prepare the Purchases account in the General ledger at the year$-$end $31$ May $2024.$

$(5)$

Q$\mathrm{.}6\mathrm{.}2$ Calculate the cost of sales for Yokohama Trading as at $31$ May $2024.$

$(5)$

Q$\mathrm{.}6\mathrm{.}3$ Assuming the perpetual inventory system was used by Yokohama Trading, prepare

$(10)$

the Trading Inventory account in the General ledger at the year$-$end $31$ May $2024.$ Balance the account.