Purchased inventory from M&M traders for R8,050. M&M traders has allowed a trade discount of 5% on the transaction that still needs to be accounted for. The bank statement from BAC bank showed bank charges of R57.50. Restored the petty cash to its imprest amount of R1,638. Paid R14,000 to P. Pig towards settlement of an outstanding creditor's account.
The following payments were made from the petty cash box:
Day Transaction 4 - R750 for fuel for the delivery vehicle.
Day Transaction 9 - R500 for staff refreshments from the local bakery.
Day Transaction 12 - R138 for paper reams from N&N stationers.
Day Transaction 23 - Paid a casual worker R250 for the day.
The following transactions relate to debtors for the month:
Day Transaction 2 - Sold goods to Sophia traders on credit for R9,660.
Day Transaction 4 - Sophia traders returned 10% of the goods sold on the 2nd due to inferior quality. A credit note was issued in this regard.
Day Transaction 16 - Sold goods to Olaf Traders on credit. The goods had an original cost price of R13,000 (excluding VAT).
Day Transaction 20 - A trade discount of 5% was awarded and still needs to be taken into account.
Day Transaction 21 - Elsa traders returned all the goods purchased on the 20th due to the fact that it was the wrong color and a credit note was issued.
Required:
Q.4.1
Prepare the following subsidiary Journals for Neverland Traders for February 2020:
Q.4.1.1 Cashbook Payments.
Q.4.1.2 Petty cash journal.
Q.4.1.3 Debtors journal.
Q.4.1.4 Debtors allowances journal.
Round to two decimal places. Ignore all source document numbers. You are not required to total the journals at the end of the month. Periodic Q.4.2 up at 40% above cost, before taking into account any trade discounts.
