Reference no: EM132617281

Obama Ltd imports promotional items, such as caps, cushions, and scarves, from Zud Africa Ltd, which is Obama Ltd's only supplier. Zud Africa Ltd's account is kept in the general ledger of Obama Ltd because it is the only creditor. Obama Ltd uses the periodic method of recording inventory.

Payments made to Zud Africa Ltd are transferred directly from Obama Ltd's bank to Zud Africa Ltd's bank. These payments are made on the last day of each month and equal the balance at the end of the previous month on Zud Africa Ltd's account in the general ledger. Zud Africa prepares its statements up to the 25th of each month.

The following additional information has been drawn to your attention:

1. Balance per Zud Africa Ltd's statement at 25 September 2015 is R86 445.
2. Balance per Zud Africa Ltd's account in the general ledger of Obama Ltd at 31 August 2015 is R108 000.
3. Included on the wrong side of the September statement is invoice A10 dated 28 August 2015 amounting to R12 600. This was the only invoice for the period 25 August to 31 August and was correctly recorded in Obama Ltd's books on 30 August.
4. A credit note for R18 910 appears on the statement as R18 190. This credit note has been correctly recorded by Obama Ltd in September. This is the only entry in the purchases returns journal for September.
5. An invoice on the September statement amounting R13 400 is for Osama Ltd, not Obama Ltd.
6. Invoice S21 on the September statement dated 12 September 2015 reflected 850 items at R60, whereas the delivery made in respect of this invoice contained 580 items. Obama Ltd recorded the invoice amount in the purchases journal on 16 September 2015.
7. Invoice S24 on the September statement totaling R900 in respect of goods sent by Zud Africa Ltd (FOB - shipping point) on 24 September has not been recorded in Obama Ltd's books.
8. The bookkeeper incorrectly posted the total column in the purchases journal for September amounting to R110 610 as R101 610.

You are required to:

Problem 1: Prepare the remittance advice at 30 September 2015 to reflect the amount to be paid to Zud Africa Ltd on 31 October 2015.