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Total Marks $50$

Due Date $,$:$,10$ May $23$:$59$pm

QUESTION $1$

$(25$ Marks$)$

Question $1$

$(15$ marks$)$

The following information was obtained from the records of Jamaica Traders for January $2007.$ All items include VAT where applicable

Jan $1$ Credit sales to: B Bombetsi, R$102,60$

F Hudson, R$148,20$

$6$ B Bombetsi returned damaged goods, $R17,10$

$17$ F Hudson paid his account by cheque less $R5,70$ discount

$25$ Paid salaries, R$1140,00.$

Required:

$1\mathrm{.}1$ Record the transactions in the general joumal of Jamaica Traders for January $2007.$

Note: VAT is calculated at $15\%.$

$1\mathrm{.}2$ Discuss the recent changes in the Vat rate and legislation and the impact it has on business.

$(10)$

QUESTION $2$

$(25$ Marks$)$

The following balances have been extracted from the accounting records of Seinfeld Traders at $28$ February $2006$

$\backslash$table$[[,\backslash$table$[[$Debit$],[$R$]],\backslash$table$[[$Credit$],[$R$]]],[\backslash$table$[[$Equipment$]],56000,],[\backslash$table$[[$Accumulated depreciation: Equipment$],[$Vehicles$]],,28000],[$Accumulated depreciation: Vehicles,$122000,]]$

The following transactions were concluded by Seinfeld Traders during the financial year ended $28$ February $2007$:

$2006$ April $30$ Bought equipment on credit from Bush Traders for R$23000.$

$2006$ July $1$ A vehicle with a cost price of R$70000$ and for which the accumulated depreciation amounted to $R46000$ on $28$ February $2006,$ was sold for R$23100$ cash.

$2007$ January $1$ A new vehicle was purchased for R$36000$ cash.

Seinfeld Traders have the following accounting policies

Depreciation is provided on:

Equipment at $15\%$ per annum on the straight$-$line method.

Vehicles at $20\%$ per annum on the diminishing balance method.

Required:

Record the above$-$mentioned transactions of Seinfeld Traders in the following ledger accounts for the year ended $28$ February $2007$ :

a$)$ Equipment

b$)$ Vehicles

c$)$ Accumulated depreciation: Equipment

d$)$ Accumulated depreciation: Vehicles

e$)$ Depreciation

f$)$ Asset disposal

Note: Seinfeld Traders is not registered for VAT and show all calculations!