UESTION $2(20$ marks$)$

C Bridal $($Pty$)$ Ltd $($C Bridal$)$ is a company that makes unique wedding dresses. C Bridal

has a $31$ December financial year$-$end. C Bridal makes use of a perpetual inventory

system.

C Bridal and Sew Elegance have the following arrangement:

C Bridal makes use of a perpetual inventory system.

C Bridal makes credit purchases of lace material from Sew Elegance

C Bridal pays for credit purchases of a particular month on the first Friday of the

following month. Example, credit purchases for the month of October $2024$ will

be paid on $3$ November $2024.$

Sew Elegances will give a $10\%$ settlement discount on the outstanding amount if

C Bridal pay within $15$ days of purchase.

During the month of November $2024,$ the following transactions took place that have not

been recorded yet:

$1.$ On the $1$st of November $2024,$ C Bridal still owed Sew Elegance R$7500.$ They

paid the outstanding amount on the $2$nd of November $2024.$

$2.$ On the $5$th of November $2024,$ C Bridal purchased a large order of material of

R$12000$ from Sew Elegance.

$3.$ On the $10$th of November $2024,$ C Bridal paid Sew Elegance for the material purchased on the $5$th of November $2024.$

$4.$ On the $20$th of November $2024,$ C Bridal made another purchase of R$6500.$ C

Bridal received a $5\%$ trade discount on the purchase.

$5.$ Some of the material purchased on the $20$th of November $2024$ was damaged

and C Bridal returned material worth R$750$ on the $25$th of November $2024.$

On $1$ December $2024$ Sew Elegance sent C Bridal a debtors statement as of $30$

November $2024.$ The balance on this statement was R$8325.$ When C Bridal compared

the statement with the Sew Elegance general ledger account in their accounting records

at the same date, the following discrepancies were found:

$1.$ The return of products on the $25$th of November

C Bridal and Sew Elegance have the following arrangement:

C Bridal makes use of a perpetual inventory system.

C Bridal makes credit purchases of lace material from Sew Elegance

C Bridal pays for credit purchases of a particular month on the first Friday of the

following month. Example, credit purchases for the month of October $2024$ will

be paid on $3$ November $2024.$

Sew Elegances will give a $10\%$ settlement discount on the outstanding amount if

C Bridal pay within $15$ days of purchase.

During the month of November $2024,$ the following transactions took place that have not

been recorded yet:

On the $1^{st}$ of November $2024,$ C Bridal still owed Sew Elegance R$7500.$ They

paid the outstanding amount on the $2^{nd}$ of November $2024.$

On the $5^{th}$ of November $2024,$ C Bridal purchased a large order of material of

R$12000$ from Sew Elegance.

On the ${10}^{th}$ of November $2024,$ C Bridal paid Sew Elegance for the material pur$-$

chased on the $5^{th}$ of November $2024.$

On the ${20}^{th}$ of November $2024,$ C Bridal made another purchase of R$6500.$ C

Bridal received a $5\%$ trade discount on the purchase.

Some of the material purchased on the ${20}^{th}$ of November $2024$ was damaged

and C Bridal returned material worth R$750$ on the ${25}^{th}$ of November $2024.$

On $1$ December $2024$ Sew Elegance sent C Bridal a debtor's statement as of $30$

November $2024.$ The balance on this statement was R$8325.$ When C Bridal compared

the statement with the Sew Elegance general ledger account in their accounting records

at the same date, the following discrepancies were found:

The return of products on the ${25}^{th}$ of November was not reflected on the state$-$

ment.

ANNEXURE F: FORMATIVE ASSESSMENT $1$

An invoice to the value of R$1500,$ to C Brooks, has been incorrectly reflected on

the statement.

The trade discount received on the purchase made on the $20$th of November

$2024$ was omitted from the statement.

REQUIRED:

$2\mathrm{.}1$ Prepare the Sew Elegance $($Pty$)$ Ltd trade payables general ledger account for the

month of November $2024$ in the accounting records of C Bridal $($Pty$)$ Ltd$.$

No dates are required.

Close off the account at the month$-$end.

$2\mathrm{.}2$ Describe what a remittance advice is and why it is import

supplier.

$2\mathrm{.}3$ Prepare a remittance advice that C Bridal $($Pty$)$ Ltd will send to Sew Elegance $($Pty$)$

Ltd with the payment made on the ${15}^{th}$ of December $2024.$was not reflected on the statement