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No. EG. E -76 996 Rent Expense -76 996 Bank (6 333 x 12) L Please use format of table above for the below transactions The following transactions occurred in the business during the year ended 31 December 2020 1. 2 The owner deposited R105 000 cash into the business's bank account on 1 Jan 2020 The business purchased R450 000 worth of inventory from various suppliers during the year. 80% of these purchases were on credit and the remaining 20% were paid for in cash. During the year the business paid R96 900 cash in operating costs. These costs related to goods and services that had all been used during the year The employees earned R104 000 in salaries and wages during the year. These were paid in cash by the end of the year 3 4.
5. 6. During the year the business paid creditors R400 000. The business received R1 010 000 in payments from debtors during the year. The business made cash sales of R410 400 and credit sales of R957 600 during the year. 8. 9. The cost of the inventory sold during the year was R480 000. A customer had retumed goods on the 15 December 2020, selling price of R2 280. The cost price was R912. The original sale had been for cash, and so the customer was refunded R2 280 in cash. The item was returned to inventory The business rents the land out. The rental is R15 200 per month. All rentals owing by tenants had been received by year-end and no amounts had been paid in advance for 2021 10
| NO | A | = | E | + | L |
| 1 | 105000 Bank | 105,000 owner Cash deposit in Bank | |||
| 2 | 360,000 Inventory Purchase (450,000 inventory - 90,000 Cash paid) | 360,000 Credit Purchase | |||
| 3 | -90,000 Cash | -90,000 operating cost | |||
| 4 | -104,000 Cash | -104,000 Salary and Wages | |||
| 5 | -400,000 paid creditor | -400,000 paid creditor | |||
| 6 | 0 (1,010,000 cash received from debtors - Debtor balance reduced by 1,010,000) | ||||
| 7 | 410,400 Cash sales | 410,400 sales revenue | |||
| 957,600 Debtors for credit sales | 957,600 sales revenue | ||||
| 8 | -480,000 inventory reduced | -480,000 Cost of good sold | |||
| 9 | -2280 Cash return to customer | -2,280 Sales return | |||
| 912 Cost adjusted to Inventory | +912 Cost of sales return | ||||
| 10 | 182400 Cash Received | +182400 Rent Income | |||
| (15600*12) | |||||
| Total | 940032 | = | 980032 | + | -40000 |
