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Question 3 The following are the transactions of A. Sutherland for the month of January 2007: Type of Transaction Jan. 01 02 cash receipt credit purchase credit sale 03 04 cash payment credit sale credit purchase A. Sutherland paid R5 000 into a business bank account. Purchased goods for resale from W Co. Ltd. on credit, R900. Sold goods on credit to Arthur for R1 000 Purchased goods for resale and paid by cheque no. 901, R480. Sold goods on credit to Brown for R800 Purchased goods for resale from X Co. Ltd. on credit, R260 A cheque for R760 was received from Brown in full settlement of his account. Paid R234 to X Co. Ltd. by cheque no. 902 and received R26 discount Sold goods on credit to Cohen for R1 600. Purchased goods for resale from Y Co. Ltd. on credit, R520. Received a cheque from Cohen for R1 520 in full settlement of his debt. Paid wages by cheque no. 903, R240. Sold goods on credit to Doby for R600. Purchased goods for resale from Z Co. Ltd. on credit, R320. cash receipt cash payment credit sale credit purchase cash receipt cash payment credit sale credit purchase 24 25 cash receipt Sold goods for cash R2 320 and banked this sum. Paid R810 to W Co. Ltd, by cheque no. 904 and received R90 discount cash payment All amounts are 14% VAT inclusive, where applicable. Do all calculations to the nearest cent. Required 1. (a) Record the above transactions in the following specialised journals: sales journal/debtors journal purchases journal/creditors journal cash receipts journal; and cash payments journal. Total the journals after the last transaction for the month. (b) Post the relevant transactions from the journals to the debtors ledger and creditors ledger (e) (ay Post from the journals to the relevant accounts in the general ledger. Prepare the trial balance at 31 January as well as lists of balances from the debtors ledger and creditors ledger. (e) Agree the totals of the list of subsidiary ledger balances with the relevant control account totals on the trial balance. 2. Record the cash receipt and cash payment transactions in the cash book and compare this with cash receipts and cash payments journals. 120] 3D

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