Africa Traders is a registered VAT vendor and uses the perpetual inventory system. Africa Traders buys and sells gym equipment for cash or on credit. All goods of Africa Traders are sold at a gross profit percentage on the cost price of 15%. Upon receipt of the debit note and the exercise yoga gym balls on 15 February 2021 from Africa Traders, SA Dealers issued the following credit note: SA Dealers 7 Smart Street P O Box 3336 PRETORIA VAT registration number PRETORIA 0001 Tel (012) 429–3931 2277227756 Fax (012) 429–3424 Date: 15 February 20.21 CREDIT NOTE No: 1515 To: Africa Traders, 499 Tshwane Drive Pretoria Code Description Qty Amount credited (R) EYGB01 Exercise yoga gym balls 10 1 450,00 Subtotal 1 450,00 VAT @ 15% 217,50 Total credit due 1 667,50 E & OE How will the above source document be recorded in the applicable subsidiary journal of Africa Traders? Select one: a. PURCHASES RETURNS JOURNAL – February 2021 PRJ1 Doc no Day Details Fol. Trade payables VAT input Purchases returns 1515 15 SA Dealers CL1 R1 450,00 R217,50 R1 667,50 b. SALES RETURNS JOURNAL – February 2021 SRJ1 Doc no Day Details Fol. VAT output Sales returns Trade receivables 1515 15 SA Dealers CL1 R217,50 R1 450,00 R1 260,86 c. PURCHASES RETURNS JOURNAL – February 2021 PRJ1 Doc no Day Details Fol. Trade payables VAT input Inventory 1515 15 SA Dealers CL1 R1 667,50 R217,50 R1 450,00 d. SALES RETURNS JOURNAL – February 2021 SRJ1 Doc no Day Details Fol. VAT output Sales returns Trade receivables Cost of sales 1515 15 SA Dealers CL1 R217,50 R1 450,00 R1 667,50 R1 260,86

Africa Traders is a registered VAT vendor and uses the perpetual inventory system. Africa Traders buys and sells gym equipment for cash or on credit. All goods of Africa Traders are sold at a gross profit percentage on the cost price of 15%. Upon receipt of the debit note and the exercise yoga gym balls on 15 February 2021 from Africa Traders, SA Dealers issued the following credit note: SA Dealers 7 Smart Street P O Box 3336 PRETORIA VAT registration number PRETORIA 0001 Tel (012) 429–3931 2277227756 Fax (012) 429–3424 Date: 15 February 20.21 CREDIT NOTE No: 1515 To: Africa Traders, 499 Tshwane Drive Pretoria Code Description Qty Amount credited (R) EYGB01 Exercise yoga gym balls 10 1 450,00 Subtotal 1 450,00 VAT @ 15% 217,50 Total credit due 1 667,50 E & OE How will the above source document be recorded in the applicable subsidiary journal of Africa Traders? Select one: a. PURCHASES RETURNS JOURNAL – February 2021 PRJ1 Doc no Day Details Fol. Trade payables VAT input Purchases returns 1515 15 SA Dealers CL1 R1 450,00 R217,50 R1 667,50 b. SALES RETURNS JOURNAL – February 2021 SRJ1 Doc no Day Details Fol. VAT output Sales returns Trade receivables 1515 15 SA Dealers CL1 R217,50 R1 450,00 R1 260,86 c. PURCHASES RETURNS JOURNAL – February 2021 PRJ1 Doc no Day Details Fol. Trade payables VAT input Inventory 1515 15 SA Dealers CL1 R1 667,50 R217,50 R1 450,00 d. SALES RETURNS JOURNAL – February 2021 SRJ1 Doc no Day Details Fol. VAT output Sales returns Trade receivables Cost of sales 1515 15 SA Dealers CL1 R217,50 R1 450,00 R1 667,50 R1 260,86

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 3PB: Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc....

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Africa Traders is a registered VAT vendor and uses the perpetual inventory system. Africa Traders buys and sells gym equipment for cash or on credit. All goods of Africa Traders are sold at a gross profit percentage on the cost price of 15%. Upon receipt of the debit note and the exercise yoga gym balls on 15 February 2021 from Africa Traders, SA Dealers issued the following credit note:

SA Dealers
7 Smart Street P O Box 3336 PRETORIA VAT registration number PRETORIA 0001 Tel (012) 429–3931 2277227756 Fax (012) 429–3424

Date: 15 February 20.21	CREDIT NOTE	No: 1515
To: Africa Traders, 499 Tshwane Drive Pretoria
Code	Description	Qty	Amount credited (R)
EYGB01	Exercise yoga gym balls	10	1 450,00
Subtotal	1 450,00
VAT @ 15%	217,50
Total credit due	1 667,50
E & OE

How will the above source document be recorded in the applicable subsidiary journal of Africa Traders?

Select one:

PURCHASES RETURNS JOURNAL – February 2021 PRJ1

Doc no	Day	Details	Fol.	Trade payables	VAT input	Purchases returns
1515	15	SA Dealers	CL1	R1 450,00	R217,50	R1 667,50

SALES RETURNS JOURNAL – February 2021 SRJ1

Doc no	Day	Details	Fol.	VAT output	Sales returns	Trade receivables
1515	15	SA Dealers	CL1	R217,50	R1 450,00	R1 260,86

PURCHASES RETURNS JOURNAL – February 2021 PRJ1

Doc no	Day	Details	Fol.	Trade payables	VAT input	Inventory
1515	15	SA Dealers	CL1	R1 667,50	R217,50	R1 450,00

SALES RETURNS JOURNAL – February 2021 SRJ1

Doc no	Day	Details	Fol.	VAT output	Sales returns	Trade receivables	Cost of sales
1515	15	SA Dealers	CL1	R217,50	R1 450,00	R1 667,50	R1 260,86

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