Ruby Traders deposit all money received daily and all payments are made by debit card. (a) Suggest two reasons why it is important for Ruby Traders to check invoices against delivery notes and purchase orders. (2 marks) (b) State two reasons why Ruby Traders returned inventory to their credit suppliers. (2 marks) The balances in the books of Ruby Traders included the following Transactions for August 2022 3 Bought inventory from W Whale for NS15 400 and received 15% trade discount (invoice was renumbered to no 41 ). 5 Sold inventory on credit to: C Chamelean N\$2 200 (involce no 20) LLion NS600 7 Bought inventory for N\$7 920 and stationery for NS2 530 from S Snake on credit. 10. Issued an invoice to E Elephant for inventory bought, NS10 200 16 Returned inventory. N\$1 320,10 S Snake and received credit note, renumbered no 9. 19 The following inventory was returned: L Lion N51 000 (credit note 11) E Elephant NS1 200 23 Purchased a new vehicle from WWarthog for N\$355 000 on credit Charged E Elephant NS150 interest on his overdue account 26 E Elephant settled N\$15 000 of the amount owed by a debit card payment after deducting 5% cash discount. 27 Paid NS2 350 to W Whale in settement of the amount owing on 1 August 2022 29 S Snake sent notification that he had charged N\$100 interest on overdue account REQUIRED (c) Prepare the following books of first entry. It is not necessary to total the books at the monthend (i) The debtors journat (4 marks) (ii) The debtors returns journal. (3 marks) (iii) The creditors journal. (4 marks) (iv) The creditors returns journal. (3 marks) (d) Draw up the following ledger accounts. Debtor ledger (i) C Chameleon (ii) E Elephant (4 marks) (4 marks) Creditors ledger (i) WWhale (ii) S Snake (4 marks) (4 marks) Ruby Traders issue statements monthly to their credit customers. REQUIRED (e) (i) State why Ruby Traders would issue statements of accounts. (3 marks) (ii) State why Ruby Traders do not enter statements of accounts in their ledger. (3 marks) TOTAL 50 MARKS