QUESTION 1 (80 marks / 95 minutes)
The following information relates to Game Dealers:
1. Trial balance at 30 November 2007
Dr Cr
R R
Capital 25 380
Bank 8 500
Inventory – merchandise 14 036
Debtors 7 524
Creditors 15 140
VAT control 1 560
General expenses 2 900
Sales 26 400
Sales returns 700
Discount received 1 200
Purchases 15 340
Purchase returns 600
Discount allowed 720
Railage on purchases 1 680
Railage on sales 2 280
Rent expense 6 000
Salaries 10 600
70 280 70 280
2.
Debtors list: R Creditors list: R
Bob James 2 177 XYZ Ltd 8 415
David Sanborn 1 585 Ringo (Pty) Ltd 5 610
Marcus Miller 3 212 Blow-by-Blow Ltd 1 115
Lee Ritenour 550
7 524 15 140
3. Transactions for December 2007:
(Where applicable, VAT is included at 10%)
Dec 1 Paid rent of R880 for December to DBN Agencies
2 Received a cheque from D Sanborn, R1 530, in full settlement of his
account on 30 November 2005.
3 Paid XYZ Ltd R8 118 in full settlement of the amount owed.
4 Purchased goods on credit from XYZ Ltd, R3 300.
5 Paid Spoornet R110 for railage on goods received from XYZ Ltd.
6 Cash sales, R2 486.
8 Sold goods on credit to D Sanborn, R1 650.
9 Paid Expo Deliveries R165 for freight on goods delivered to
D Sanborn.
10 Accepted damaged goods returned by D Sanborn and issued a
credit note for R99.
12 Received R2 200 on account from M Miller.
13 Sold goods on credit to L Ritenour, R220.
, 15 Received a cheque for R44 from Grant Ltd for discount not deducted
on a payment made on 26 November 2005.
17 Paid the amount due to Blow-by-Blow Ltd.
19 Paid SA Revenue Services that VAT owing for November.
20 Sold goods on credit to M Miller, R1 012.
23 Cash sales, R3 355.
24 Purchased goods on credit from Ringo (Pty) Ltd, R935.
25 Paid cash for goods purchased from PBK, R979.
30 Paid salaries, R2 000.
Required:
1. Prepare the following subsidiary journals of Game Dealers, properly totalled,
for December 2007:
1.1 Cash receipts journal (analysis columns for bank, sales, debtors,
discount allowed, VAT (Dr/Cr) and sundries) (11)
1.2 Cash payments journal (analysis columns for bank, purchases, creditors,
discount received, VAT (Dr/Cr) and sundries) (14½)
1.3 Sales journal (analysis columns for VAT, sales and debtors) (6)
1.4 Purchases journal (analysis columns for VAT, purchases and creditors)
(4½)
1.5 Sales returns journal (analysis columns for VAT, sales returns and
debtors) (3)
1.6 Post the entries recorded above to the relevant accounts in the general
ledger of Game Dealers. The accounts must be properly
balanced/totalled at 31 December 2007. Use control accounts for debtors
and creditors. (32)
NB: (i) Remember to enter the balances at 30 November 2007 in the
applicable general ledger accounts.
(ii) The first word(s) of each entry must indicate the contra ledger
account.
2. Prepare the trial balance of Game Dealers at 31 December 2007. (9)
2
The following information relates to Game Dealers:
1. Trial balance at 30 November 2007
Dr Cr
R R
Capital 25 380
Bank 8 500
Inventory – merchandise 14 036
Debtors 7 524
Creditors 15 140
VAT control 1 560
General expenses 2 900
Sales 26 400
Sales returns 700
Discount received 1 200
Purchases 15 340
Purchase returns 600
Discount allowed 720
Railage on purchases 1 680
Railage on sales 2 280
Rent expense 6 000
Salaries 10 600
70 280 70 280
2.
Debtors list: R Creditors list: R
Bob James 2 177 XYZ Ltd 8 415
David Sanborn 1 585 Ringo (Pty) Ltd 5 610
Marcus Miller 3 212 Blow-by-Blow Ltd 1 115
Lee Ritenour 550
7 524 15 140
3. Transactions for December 2007:
(Where applicable, VAT is included at 10%)
Dec 1 Paid rent of R880 for December to DBN Agencies
2 Received a cheque from D Sanborn, R1 530, in full settlement of his
account on 30 November 2005.
3 Paid XYZ Ltd R8 118 in full settlement of the amount owed.
4 Purchased goods on credit from XYZ Ltd, R3 300.
5 Paid Spoornet R110 for railage on goods received from XYZ Ltd.
6 Cash sales, R2 486.
8 Sold goods on credit to D Sanborn, R1 650.
9 Paid Expo Deliveries R165 for freight on goods delivered to
D Sanborn.
10 Accepted damaged goods returned by D Sanborn and issued a
credit note for R99.
12 Received R2 200 on account from M Miller.
13 Sold goods on credit to L Ritenour, R220.
, 15 Received a cheque for R44 from Grant Ltd for discount not deducted
on a payment made on 26 November 2005.
17 Paid the amount due to Blow-by-Blow Ltd.
19 Paid SA Revenue Services that VAT owing for November.
20 Sold goods on credit to M Miller, R1 012.
23 Cash sales, R3 355.
24 Purchased goods on credit from Ringo (Pty) Ltd, R935.
25 Paid cash for goods purchased from PBK, R979.
30 Paid salaries, R2 000.
Required:
1. Prepare the following subsidiary journals of Game Dealers, properly totalled,
for December 2007:
1.1 Cash receipts journal (analysis columns for bank, sales, debtors,
discount allowed, VAT (Dr/Cr) and sundries) (11)
1.2 Cash payments journal (analysis columns for bank, purchases, creditors,
discount received, VAT (Dr/Cr) and sundries) (14½)
1.3 Sales journal (analysis columns for VAT, sales and debtors) (6)
1.4 Purchases journal (analysis columns for VAT, purchases and creditors)
(4½)
1.5 Sales returns journal (analysis columns for VAT, sales returns and
debtors) (3)
1.6 Post the entries recorded above to the relevant accounts in the general
ledger of Game Dealers. The accounts must be properly
balanced/totalled at 31 December 2007. Use control accounts for debtors
and creditors. (32)
NB: (i) Remember to enter the balances at 30 November 2007 in the
applicable general ledger accounts.
(ii) The first word(s) of each entry must indicate the contra ledger
account.
2. Prepare the trial balance of Game Dealers at 31 December 2007. (9)
2
