Reference no: EM132614245

You have recently been appointed as Intern in Rambuda Traders. In your first month of employment, January, Mrs. Tshivhase, the bookkeeper, went on a maternity leave. The owner asked you to assist him in recording the transactions for the month of January.

The following transactions took place in Rambuda Traders for January 2019. Rambuda Traders is registered as a VAT vendor (the applicable VAT rate is 15%). The periodic inventory system and control account are in use in the entity.

Transactions:

1. Mr. Sinthumule, a debtor, was declared insolvent and his outstanding account of R2 200 must be written off as irrecoverable.
2. Ms. Matamela's account of R3 300 was five months overdue and interest was charged at 10% per annum.
3. It was found that repairs done to the delivery vehicle for R800 was incorrectly debited to the stationery account. This error must be corrected.
4. Paid for printing done by CompuWare Traders, R2 200 by cheque no: 19
5. The owner, T Rambuda, increased his capital contribution with R15 000. The bookkeeper issued receipt no: 101 to him.
6. Purchased cleaning material from Clean4U for R1 500. Issued receipt no: 101 to him.
7. The total cash sales as per cash register roll no:15 amounted to R7 800.
8. Purchased merchandise from Good Prices Traders for R8 000 and paid by cheque no: 21.
9. Drew cash cheque (no: 22) for R2 500 to pay the week's wages.
10. Received a cheque from Z Mabasa in payment of his account of R5 600. Issued receipt no: 104
11. Issued cheque no:23 for R7 000 to settle the account of Best suppliers.
12. The total cash sales as per cash register roll no:16 amounted to R9 800

You are required to:

Question 1: Record the above transactions in the following subsidiary journals of Rambuda Traders for January 2019:

a. _{Cash Receipts Journal} (analysis columns for Bank, Sales, VAT Output, Debtors and Sundry Account);

b. Cash Payments Journal (analysis columns for Bank, Purchases, Creditors, Wages, VAT Input and Sundry Accounts)

c. General Journal