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The sole proprietorship is a registered VAT vendor. Mr Peter De Zorzi is the owner of Zorzi and trades as a sole trader. Zorzi is
The sole proprietorship is a registered VAT vendor.
Mr Peter De Zorzi is the owner of Zorzi and trades as a sole trader. Zorzi is a sma business that sells wireless earphones. Zorzi's year end is June.
The accountant of Zorzi went on leave on May and Peter De Zorzi has approached you to help him with specific tasks relating to VAT transactions that tc place during June
On May the VAT control account had a debit balance of R made of input VAT receivable of R and output VAT payable of R
The following transactions relate to June :
On June it was discovered that a purchase of wireless earphones whict cost Rexcluding VAT was incorrectly recorded at an amount of Rexcluding VAT The VAT entry was also incorrectly recorded. The wireless earphones were bought on credit from Thrifty Suppliers on May
On June purchased wireless earphones for R from Jane's Suppliers for cash.
On June sold wireless earphones for R on credit to a debtor wi is not registered for VAT. The cost price was R
On June paid in cash relating to advertising in a local newspaper.
On June Zorzi ordered wireless earphones at a cost of from Technology Suppliers nonVAT vendor and paid a deposit on the same dat the balance is payable on July
Zorzi paid transport costs of R for delivery of the earphones to their premi on June from Technology Suppliers.
On June Peter sold wireless earphones for cash of R The cost pri was Rexcluding VAT
Zorzi sold earphones for cash of R to customers at a discount of T cost of these earphones amounted to R
On June Zorzi recognised of bank charges on its current account.
You are required to:
tabletableRecord the above entries in the general journal of Zorzi.Narrations are required marksatablePrepare the input VAT receivable and output VATpayable general ledger accounts for the month of Junex marksbtableMarks
Correct contraaccounts should be shown.
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