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Instructions: All answers must be typed in and all workings must be shown. ...

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Accounting

Instructions: All answers must be typed in and all workings must be shown.

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QUESTION FIVE Sizwe General Dealers is a business engaged in the retail of household cleaning products. The business is a registered VAT vendor. The perpetual inventory system is used to record all trading stock transactions. VAT is applicable at 15%. The following transactions took place during July 2020: 1. Purchased trading stock for R38 00 (exclusive of VAT) and paid by EFT. 2. Sold trading stock for R34 500 (inclusive of VAT) to a customer who had already paid by EFT. The cost price of the goods sold was R20 000. 3. A Stock take revealed that trading stock on hand on 31 July 2020 was valued at R18 600. There was no stock on hand at 1 July 2020. 4. You may assume that the above were the only trading stock transactions that took place during July 2020. Required: Record the above transactions in the general journal of Sizwe General Dealers for July 2020. Show workings for all calculations. A brief narration is required

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