The Flying Kite, owned by Josh String, sells kites and kite accessories. The Flying Kite uses the perpetual inventory system to account for inventory movements. The trial balance at 31 December 20X6, the end of the accounting period, is as follows:

THE FLYING KITE TRIAL BALANCE
AT 31 DECEMBER 20X6

Debit
Equipment: cost - 100 000
Accounts receivable - 45 550
Input VAT receivable - 4 950
Bank - 6 980
Inventory - 122 500
Cost of sales - 256 000
General expenses - 43 790
Salaries expenses - 57 360
Entertainment expenses- 3330
Total = 640 460

Credit

Capital - 200 000
Equipment: accumulated depreciation- 26 000
Accounts payable - 44 960
VAT control - 2 540
Output VAT payable - 8 360
Sales - 358 600
Total = 640 460

The following transactions for the month of December 20X6 have not yet been processed:

1. Bought kites on credit from Wild Sports. The cost price amounted to C12 800 (excluding VAT).
2 Paid C365 to Roads Transport for transporting inventory purchased to the store.
3. Sold inventory with a cost of C8 900 on credit to The Kite Club. This inventory is marked up at 50% on cost.
4. Bought inventory and paid by cheque, receiving a tax invoice for C4 560.
5. Sold inventory with a mark-up of 33,3% on cost for cash and received a cheque for C1 368.
6. The Kite Club returned faulty inventory, which had been recorded on the tax invoice for a total of C342.
7. Received the monthly statement from the Country Club in respect of December's entertainment expenses and an amount of C450, excluding VAT, was payable.
8. Sent a cheque for C2 540 to the tax authority in settlement of November's VAT liability.
9. Received a cheque from The Kite Club for C12 200.

Closing entries have not yet been recorded.
You are required to:

• a. Prepare the journal entries to record the above transactions in the accounting records of The Flying Kite.
  Round to the nearest whole number
• b. Prepare the input VAT receivable and output VAT payable accounts in the general ledger of The Flying Kite.
  C. Prepare the month end journal entries to transfer the balances in the output VAT payable and input VAT receivable general ledger accounts to the VAT control account.

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