Homework Help is Here – Start Your Trial Now!
Business
Accounting
1 MR A INTRODUCES CASH OF 1000 AS SHARE CAPITAL 2 MR B INTRODUCES PLANT AND EQUIPMENT AT MARKET VALUE OF 500 AS SHARE CAPITAL. 3 STOCK FOR RESALE IS BOUGHT FOR CASH AT 400 PLUS VAT OF 60 4 STOCK FOR RESALE IS BOUGHT FROM TRADE CREDITORS AT A COST OF 600 PLUS VAT OF 90 5 A TOTAL OF 450 IS SUBSEQUENTLY PAID TO THE CREDITOR

1 MR A INTRODUCES CASH OF 1000 AS SHARE CAPITAL 2 MR B INTRODUCES PLANT AND EQUIPMENT AT MARKET VALUE OF 500 AS SHARE CAPITAL. 3 STOCK FOR RESALE IS BOUGHT FOR CASH AT 400 PLUS VAT OF 60 4 STOCK FOR RESALE IS BOUGHT FROM TRADE CREDITORS AT A COST OF 600 PLUS VAT OF 90 5 A TOTAL OF 450 IS SUBSEQUENTLY PAID TO THE CREDITOR

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Please help me to solve this question
PLEASE WRITE UP THE JOURNAL ENTRIES FOR EACH OF THE FOLLOWING TRANSACTIONS FOR THE ACCOUNTING PERIOD, which is for a year, FOR A GROCERY STORE BUSINESS, IN RANDS AND CENTS 1 MR A INTRODUCES CASH OF 1000 AS SHARE CAPITAL 2 MR B INTRODUCES PLANT AND EQUIPMENT AT MARKET VALUE OF 500 AS SHARE CAPITAL. 3 STOCK FOR RESALE IS BOUGHT FOR CASH AT 400 PLUS VAT OF 60 4 STOCK FOR RESALE IS BOUGHT FROM TRADE CREDITORS AT A COST OF 600 PLUS VAT OF 90 5 A TOTAL OF 450 IS SUBSEQUENTLY PAID TO THE CREDITOR 6 CREDIT SALES OF 420 PLUS VAT OF 63 TAKE PLACE 7 THE COST OF SALES (STOCK VALUE SOLD) IS 335 8 CASH SALES OF 300 PLUS VAT OF 45 TAKE PLACE. 9 THE COST OF SALES (STOCK VALUE SOLD) IS 250 10 THE DEBTOR ARISING FROM CREDIT SALES PAYS 180 ON ACCOUNT 11 DEPRECIATION AT 16% IS RAISED FOR THIS ACCOUNTING PERIOD 12 THE VAT PAID (TO SARS/BY SARS) 13 CASUAL WAGES OF 8 ARE PAID IN CASH 14 THERE IS REPAIRS AND MAINTENANCE OF 10 INCURRED ON CREDIT, WHICH DOES NOT ATTRACT VAT.
Transcribed Image Text:PLEASE WRITE UP THE JOURNAL ENTRIES FOR EACH OF THE FOLLOWING TRANSACTIONS FOR THE ACCOUNTING PERIOD, which is for a year, FOR A GROCERY STORE BUSINESS, IN RANDS AND CENTS 1 MR A INTRODUCES CASH OF 1000 AS SHARE CAPITAL 2 MR B INTRODUCES PLANT AND EQUIPMENT AT MARKET VALUE OF 500 AS SHARE CAPITAL. 3 STOCK FOR RESALE IS BOUGHT FOR CASH AT 400 PLUS VAT OF 60 4 STOCK FOR RESALE IS BOUGHT FROM TRADE CREDITORS AT A COST OF 600 PLUS VAT OF 90 5 A TOTAL OF 450 IS SUBSEQUENTLY PAID TO THE CREDITOR 6 CREDIT SALES OF 420 PLUS VAT OF 63 TAKE PLACE 7 THE COST OF SALES (STOCK VALUE SOLD) IS 335 8 CASH SALES OF 300 PLUS VAT OF 45 TAKE PLACE. 9 THE COST OF SALES (STOCK VALUE SOLD) IS 250 10 THE DEBTOR ARISING FROM CREDIT SALES PAYS 180 ON ACCOUNT 11 DEPRECIATION AT 16% IS RAISED FOR THIS ACCOUNTING PERIOD 12 THE VAT PAID (TO SARS/BY SARS) 13 CASUAL WAGES OF 8 ARE PAID IN CASH 14 THERE IS REPAIRS AND MAINTENANCE OF 10 INCURRED ON CREDIT, WHICH DOES NOT ATTRACT VAT.
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS