Section D Companies 20 M Question 6 Study the scenario and complete the questions that follow Steel Traders Steel Traders has a head office in Potchefstroom and a branch in Verderbijlpark

Section D Companies 20 M Question 6 Study the scenario and complete the questions that follow Steel Traders Steel Traders has a head office in Potchefstroom and a branch in Verderbijlpark. All branch transactions are sent electronically to the head office, where a branch inventory, 'branch gross profit branch profit or loss' and 'branch receivables' accounts are kepl. Goods are sent to the branch at cos plus 20%. The head office is registered for VAT. Source De Vliers, C. 20 Required Journalise each of the following transactions. No narrations are required 6.1 The head office sends goods with a cost price of R6 550 and a selling price of R7 380 (including VAT) to its branch. (3 Mar 6.2 The branch returns goods with a cost price of R1 600, to the head office. (3 Mar- 6.3 The branch sells goods at a selling price of R7 340 cash (including VAT) to the public. (3 Mark 6.4 Cash sales of obsolete goods, R250 (including VAT). This amount is after a discount of 25% has been considered. (8 Mark 6.5 A receivable is not able to pay his debt of R500 and it was written off as irrecoverable. (3 Mark End of Section D