$\backslash$table$[[$Purchases$,800000,],[$Purchases Returns,,$20000],[$Repair and maintenance,$7600,],[$Salaries and wages,$288000,],[$Sales$,,1560000],[$Sales Returns,$30000,],[$Telephone$,20000,],[$Vehicle expenses,$51600,],[,3245000,3245000]]$

The following transactions took place:

Inventory on $28$ February $2023$ amounted to R$166000.$ No vehicles were purchased during the year, but a new computer system was bought on

credit from Delta Computers on $1$ February $2023$ for R$120000.$ The old computer system

was traded in for R$30000.$ The trade$-$in will take place when the new computer system

is fully operational. The cost price of the old system was $R60000$ and the book value on

$\frac{1}{3}\frac{?}{2022}$ was R$48000.$ This transaction was not yet recorded in the records at yearend

since the installation of the new computer was only completed on $28$ February $2023.$ The

owner paid the outstanding amount to Delta on $1$ March $2023.$

The long$-$term borrowing is from $xYZ$ Bank and was acquired on $1$ January $2023.$ It is

re$-$payable in four equal annual payments, with the first payment on $28$ February $2024.$

The interest rate is $5\%$ per annum and is secured by a personal guarantee of the owner.

Mr Badboy, a debtor from Milan Traders, was declared insolvent and the outstanding

amount of R$2280$ on his account must be written off.

After inspecting the outstanding debtor's list at year$-$end, Mila decided that there is a

possibility that one of the debtors, Bali Traders, won't be able to pay their account. The

allowance for credit losses must be adjusted to make provision for the possible loss.

The outstanding balance on Bali Traders' account is R$7500.$

The owner made an additional capital contribution of $R10000$ during the year.

Depreciation on computer equipment and vehicles is calculated at $20\%$ per annum on

the straight$-$line method at year$-$endye.

The fixed deposit is with ABC Bank from $1$ March $2022$ for $24$ months and carries interest

at $10\%$ per annum. This amount has not yet been received.QUESTION $2$

$(15$ Marks$)$

The newly appointed accountant of Ringwood Traders asked you to help him with the calculation of the following transaction:

Ringwood bought steel $(10000$ units$)$ from Unitrans and received an invoice for R$540000.$ Ringwood paid cash in order to make use of the $7\%$ cash discount offered by the supplier. The steel was transported by rail for which Ringwood Traders paid R$35000.$ Costs to insure the steel while in transit amounted to R$1000.$ On inspection of the steel by the foreman, it was found that $1000$ units amounting to R$54000($before cash discount$)$ were damaged. Following negotiations with Unitrans, it was agreed that these steel units will be returned to the supplier.

During the same month, Ringwood sold $4000$ units to Unilever Dealers on account. A $30\%$ mark$-$up on cost is applicable. It may be assumed that Ringwood Traders and Unitrans both make use of the perpetual inventory system.

$\backslash$table$[[$REQUIRED $-$ QUESTION $2,\backslash$table$[[$Sub$-],[$total$]],$Total$],[1.,\backslash$table$[[$Calculate the cost per unit of the steel inventory.$],[-$ Show all calculations.$],[$R Round off to the nearest Rand.$]],8\mathrm{.}0,8\mathrm{.}0],[2.,\backslash$table$[[$Prepare the applicable general journal entry for the original payment$],[$made by Ringwood Traders to Unitrans.$],[$e Journal narrations are not required.$]],2\mathrm{.}5,10\mathrm{.}5],[3.,\backslash$table$[[$Prepare the applicable general journal entry for the $4000$ units sold to$],[$Unilver$.]],4\mathrm{.}5,15\mathrm{.}0],[$TOTAL MARKS,$15\mathrm{.}0]]$QUESTION $1$

$(35$ MARKS$)$

Milan Traders is a sole proprietor in Silverlakes Pretoria, who deals with importing and selling

of French furniture. The owner, Mila Nel, started the business on $1$ March $2010.$ The following

pre$-$adjustment trial balance of Milan Traders at $28$ February $2023$ was provided to you by

Mila since she asked for your assistance.

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