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SA Traders operates as a hardware store and is a registered VAT vendor. The applicable tax rate is 15%. SA Traders makes use of the periodic inventory system, as well as control accounts. The transaction amounts are VAT inclusive where applicable.
Problem 1: On 4 August 2020, Rod Traders purchased stationery for use in the office and paid R1 120 in cash. The transaction will be entered into the as book of first entry.
A. cash payments journal
B. cash receipts journal
C. purchases journal
D. general journal
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