Reference no: EM132671224

Neverland Traders, a children's book retailer, entered into the transactions below during February 2020. The business is a registered VAT vendor and trades only with other registered vendors. All amounts include VAT where applicable, except if otherwise indicated. They use a perpetual inventory system and all goods are marked up at 40% above cost, before taking into account any trade discounts. The business does not expect to award any settlement discounts nor to qualify for any settlement discounts. All occurrences of settlement discounts are therefore incidental in nature.

The following payments were made from the bank account:

Day     Transaction
3      Purchased inventory from Suess traders and paid R13 800.
7      Paid R10 000 (excluding VAT) to W Landlords for monthly rental of premises.
9      Paid R4 000 towards settlement of a loan with BAC Bank.
17    Purchased inventory from M&M traders for R8 050. M&M traders has allowed a trade discount of 5% on the transaction that still needs to be accounted for.
27   The bank statement from BAC bank showed bank charges of R57.50.
28    Restored the petty cash to its imprest amount R1 638.
28    Paid R14 000 to P. Pig towards settlement of an outstanding creditors account.

The following payments were made from the petty cash box:
Day            Transaction
4               R750 from Total for fuel for the delivery vehicle.
9              R500 for staff refreshments from the local bakery.
12            R138 for paper reams from N&N stationers.
23             Paid a casual worker R250 for the day.

The following transactions relate to debtors for the month.

Day            Transaction
2               Sold goods to Sophia traders on credit for R9 660.
4              Sophia traders returned 10% of the goods sold in the 2nd due to inferior quality, a credit note was issued in this regard.
16              Sold goods to Olaf Traders on credit. The goods had an original cost price of R13 000 (excluding VAT).
20              Sold goods to Elsa traders on credit with an original selling price of R3 542. A trade discount of 5% was awarded and still needs to be taken into account.
21           Elsa traders returned all the goods purchased on the 20th due to the fact that it was the wrong colour and a credit note was issued.

Required:

Problem 1: Prepare the following subsidiary journals for Neverland Traders for February 2020. Round to two decimal places.
Ignore all source document numbers.

1. Cashbook Payments.
2. Petty cash journal. 
3. Debtors journal. 
4. Debtors allowances journal.