QUESTION 2 a) The following transactions took place during the month of April in
ID: 2539654 • Letter: Q
Question
QUESTION 2 a) The following transactions took place during the month of April in the books of account of Mr Majeta, a sole trader for April 2016 April 1 Mr. Majeta opened a business bank account and deposited a cheque of (12 MARKS) 6 10 11 25 N$200 000 He purchased a motor vehicle for N$120 000 on credit from Mayo Vehicle Cc He bought goods on credit from Paul for N$5 000. He sold goods on credit to Matina for N$3 000 Mr. Majeta settled his account with Paul by cheque and was given a settlement discount of 10%. The business uses a periodic inventory system. Required: Identify the Journal book of prime entry and source document (s) used by Mr. Majeta to record each of the above transactions. Present in this format: (12 Marks) Journal e.g. 1 March Source document Sales journal Receipt END OF ASSIGNMENT 01 (50 MARKS)Explanation / Answer
Solution to above question DATE JOURNAL SOURCE DOCUMENT April 1st Cash Receipt Journal Deposite Cheque in Bank (Receipt) April 6 Journal Proper Credit Purchase of Assets (amout for assets is payable in future ) April 10 Purchase Journal Purchase bill (Payable) April 11 Sales Journal Sales Invoice (Receivable) April 25 Cash Payment Journal Payment