Invoice V470 for R51 750 (30 june 2024) was recorded on the statement from VBS Brakes. The goods were only received by Mzansi Manufacturers on 03 July 2024 and therefore have not yet been recorded. Explain how this affects creditors reconciliation and what action should be taken
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Zack's Hardware, a registered VAT vendor, makes use of the periodic inventory system. The VAT rate is 15%. The following is an extract from the financial records of Zack's Hardware for January 2023: Trade receivables: opening balance (1 January) 33 000 Credit sales 131 200 Cash receipts journal: Trade receivables column total (31 January) 64 600 Sales returns journal: Trade receivables column (31 January) 6 200 On month end, the auditors completed a debtors reconciliation and found the following: 1. On 10 January, Mr Zack returned goods sold to him for cash to the amount of R550. This transaction was incorrectly recorded in the sales returns journal 2. The trade receivables column in the cash receipts journal were overcast by R400. 3. On 18 January, goods sold on credit to the amount of R8 500 was recorded in the sales joumal as R5 300. No journal entry has been made to correct this error. Required: Complete the trade receivables account in the general ledger of Zack's Hardware for the month ending 31 January 2023. Instructions: 1. Use a full stop to indicate any decimals (eg: 1000.01) 2. Round off to the second decimal after the full stop (eg: 50.56) 3. If no amount should be recorded in any of the numeric spaces, please indicate it by filling in a zero ("0")
Breanna O.
Akash M.
Anand J.
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