Answered step by step
Verified Expert Solution
Question
1 Approved Answer
South Attorneys (registered VAT vendor) sent the following account statement to the instructing attorneys, Africa Attorneys (registered VAT vendor) Account statement South Attorneys Africa Attorneys
South Attorneys (registered VAT vendor) sent the following account statement to the instructing attorneys, Africa Attorneys (registered VAT vendor) Account statement South Attorneys Africa Attorneys PO Box 12124 Tshwane PO Box 555 Stanger 31 May 2020 R R 24 500 285 520 210 49 Collection - A South vs West Sheriff costs Fee for receiving instruction Fee for preparation of summons Correspondence fee Fee for drafting of admission of guilt Collection commission Your , share of fees VAT @ 15% Electronic fund transfer to yourselves 70 1 000 616 2 2 The Bookkeeper of Africa Attorneys has recorded the above in the business cash receipts journal of Africa Attorneys as follows: Business cash receipts journal for May 2020 BCRJS Date Details Fol. Clients Bank R R 31/05 Trust bank account - transfer 616 (A South vs West) Which one of the following statements is correct regarding the recording of the transaction in the business cash receipts journal of Africa Attorneys? 500 285 520 210 49 Sheriff costs Fee for receiving instruction Fee for preparation of summons Correspondence fee Fee for drafting of admission of guilt Collection commission Your share of fees VAT @ 15% Electronic fund transfer to yourselves 70 1 000 616 2 2 ? The Bookkeeper of Africa Attorneys has recorded the above in the business cash receipts journal of Africa Attorneys as follows: Business cash receipts journal for May 2020 BCRJ5 Date Details Fol. Clients Bank R R 31/05 Trust bank account - transfer 616 (A South vs West) Which one of the following statements is correct regarding the recording of the transaction in the business cash receipts journal of Africa Attorneys? . A. The transaction is recorded incorrectly because it should have been recorded in the trust cash receipts journal . B. The transaction is recorded correctly. C. The transaction is recorded incorrectly because VAT of 15% was not taken into consideration D. The transaction is recorded incorrectly because it should have been recorded in the business cash payments journal Reset Selection
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started