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Question 1
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Florence Mohale started a new business after qualifying as a Biomedical Engineer. The business named Floral Medical
Equipment, is a registered VAT vendor. The applicable VAT rate is 15%.
On 31 July 2024, the following provisional balances appeared in the general ledger of Floral Medical Equipment after all cash
transactions were recorded:
Account Total
R
VAT Input 9 330
VAT Output 7 450
Florence does have limited accounting knowledge after taking the subject in high school up to grade 12. She came to you for
assistance relating the recording of the following transactions for July 2024 that do not adhere to the requirements of the
cash journals.
Date Transaction
5 Purchased cleaning supplies for office use on account from Sparkling Clean for
R1 380 (VAT inclusive)
23 Entered into a financing agreement with ABC Bank for 100% finance on the cost
to purchase equipment. The loan bears interest at 10% per annum and is
repayable in equal monthly instalments. The bank paid for the equipment on the
same day and the supplier delivered it to the business premises later in the
afternoon. On the invoice received the VAT exclusive amount was indicated as
R114 000.
Required:
Record the following in the general journal of Floral Medical Equipment:
a) Purchase transaction of the stationery on 5 July 2024
b) Purchase transaction of the equipment on 23 July 2024
c) The closing transfers for the VAT Input and VAT Output accounts on 31 July 2024 after taking the above two transactions
into account
Instructions:
1. Use a full stop to indicate any decimals (eg: 1000.01)
2. Round off to the second decimal after the full stop (eg: 50.56)
3. Do not type in “R” for Rand in the numeric block
4. If any debit or credit line item is not applicable indicate the account name by choosing N/A from the list and complete the
amount as zero "0"
Floral Medical Equipment
General journal – 31 July 2024
Day Details Debit Credit
R R
5
Cleaning material 1200.00
VAT Input 180.00
Trade and other payables control 1380.00
N/A 0
Cleaning material purchased on credit
Downloaded by: TogetherWeGraduate | Want to earn
Distribution of this document is illegal R13,625 per year?
Question 1
Answer saved
Marked out of 25.00
Florence Mohale started a new business after qualifying as a Biomedical Engineer. The business named Floral Medical
Equipment, is a registered VAT vendor. The applicable VAT rate is 15%.
On 31 July 2024, the following provisional balances appeared in the general ledger of Floral Medical Equipment after all cash
transactions were recorded:
Account Total
R
VAT Input 9 330
VAT Output 7 450
Florence does have limited accounting knowledge after taking the subject in high school up to grade 12. She came to you for
assistance relating the recording of the following transactions for July 2024 that do not adhere to the requirements of the
cash journals.
Date Transaction
5 Purchased cleaning supplies for office use on account from Sparkling Clean for
R1 380 (VAT inclusive)
23 Entered into a financing agreement with ABC Bank for 100% finance on the cost
to purchase equipment. The loan bears interest at 10% per annum and is
repayable in equal monthly instalments. The bank paid for the equipment on the
same day and the supplier delivered it to the business premises later in the
afternoon. On the invoice received the VAT exclusive amount was indicated as
R114 000.
Required:
Record the following in the general journal of Floral Medical Equipment:
a) Purchase transaction of the stationery on 5 July 2024
b) Purchase transaction of the equipment on 23 July 2024
c) The closing transfers for the VAT Input and VAT Output accounts on 31 July 2024 after taking the above two transactions
into account
Instructions:
1. Use a full stop to indicate any decimals (eg: 1000.01)
2. Round off to the second decimal after the full stop (eg: 50.56)
3. Do not type in “R” for Rand in the numeric block
4. If any debit or credit line item is not applicable indicate the account name by choosing N/A from the list and complete the
amount as zero "0"
Floral Medical Equipment
General journal – 31 July 2024
Day Details Debit Credit
R R
5
Cleaning material 1200.00
VAT Input 180.00
Trade and other payables control 1380.00
N/A 0
Cleaning material purchased on credit
Downloaded by: TogetherWeGraduate | Want to earn
Distribution of this document is illegal R13,625 per year?
