BACKGROUND INFORMATION AND REQUIREMENTS:

You are provided with the source documents of Muzi Traders (owner M Muzi) for May 2022. Anele Mxinwa has been recently employed as the bookkeeper. The previous bookkeeper completed the subsidiary books until the 20 May 2022. You are required to assist Anele Mxinwa to complete the subsidiary journals and the subsidiary ledgers, prepare the General ledger accounts and Trial balance of Muzi Traders for May 2022. The business sells goods at a mark-up of 25% on cost price. The Guidelines below will assist you in the completion of project.

TRANSACTIONS:

JOURNALS, LEDGERS AND TRIAL BALANCE

• Complete the following subsidiary journals:
o Cash Receipts Journal
o Cash Payments Journal
o Accounts Receivable Journal
o Debtors Allowances Journal
o Accounts Payable Journal
o Creditors Allowances Journal
o General Journal
Ensure that the dates are in consecutive sequences (in order) when completing the Journals.

• Prepare the following ledger accounts in the General Ledger
o Inventory Account
o Debtors’ Control Account
o Creditors’ Control Account

• Prepare the following in the subsidiary ledgers
o B Brits (Accounts Receivable ledger)
o L Lukas (Accounts Receivable ledger)
o Qubeka Traders (Accounts Payable Ledger)

• Complete the Trial Balance. (Some figures have been entered already in the Trial Balance.)
SOURCE DOCUMENTS:

RECEIPT
No. 903 21 May 2022
Received from Dizzy Dazzle
The sum of Twenty-two thousand and
Five hundred rands only
R22 500
For Rent
A Mxinwa
MUZI TRADERS

Cash Register Roll 701
22 May 2022

RECEIPT
No. 904 31 May 2022
Received from B Brits
The sum of One thousand and
Eight hundred rands only
R 1 800
For payment of account/received 60c in the rand
A Mxinwa
MUZI TRADERS
Notes
Coins
Debit/Credit cards
32 000

6 100
Total R38 100

Cash handling fees
ATM fees
Debit/Credit card levies

Bank Statement (extract) RAND BANK

24 May 2022
2 000
127
573
Total R2 700

EFT requisition voucher No. 1104
25 May 2022
To: Telkom
For: Telephone
Amount: R4 260

EFT requisition voucher No. 1105
29 May 2022
To: Pen Stationers For: Stationery Amount: R682

ATM slip No.118
30 May 2022
To:
For: Wages
Amount: R3 300
EFT requisition voucher No. 1106
30 May 2022
To: Lethu Mbasi For: Salary Amount: R15 000
EFT requisition voucher No. 1107
30 May 2022
To: M Muzi
For: Personal use
Amount: R4 350

EFT requisition voucher No. 1108
31 May 2022
To: Shinny Traders For: Trading Stock Amount: R19 800

EFT requisition voucher No. 1109
31 May 2022
To: Qubeka Traders
For: Part Payment of account balance
Amount: R19 800

EFT requisition voucher No. 1110
31 May 2022
To: Rand Bank
For: Loan Payment
Amount: R75 000

INVOICE MUZI TRADERS
NO. 801 21 May 2022
TO: L Lukas
223 Rose Street
Johannesburg
Number Description Price Amount
7 Deep fryers R1 800 R12 600

INVOICE MUZI TRADERS
NO. 802 25 May 2022
TO: M Middy
223 Rose Street
Johannesburg
Number Description Price Amount
5 Deep fryers R1 800 R9 000
20 Frying Pans R75 R1 500

CREDIT NOTE MUZI TRADERS
NO. 434 23 May 2022
TO: L Lucas
223 Rose Street
Johannesburg
Number Description Price Amount
1 Fry pan R75 R75
2 Deep fryers R1 800 R3 600

INVOICE
QUBEKA TRADERS
NO. MM2346 24 May 2022
TO: Muzi Traders
116 Redham Street
Johannesburg
Number Description Price Amount
21 Air fryers R2 520 R51 300
2 Office copiers R11 259 R22 600
5 Reams office printing paper R265,40 R1 282

DEBIT NOTE MUZI TRADERS
NO. 452 27 May 2022
TO: Qubeka Traders
223 Rose Street
Johannesburg
Number Description Price Amount
1 Air fryer R2 520 R2 520

JOURNAL VOUCHER*
NO. 2 22 May 2022
TO: Childcare Welfare FOR Donation AMOUNT: R1 500
A Mxinwa
MUZI TRADERS

JOURNAL VOUCHER
NO. 3 29 May 2022
TO: Qubeka Traders
FOR Interest on late payment
AMOUNT: R450
A Mxinwa
MUZI TRADERS

JOURNAL VOUCHER
NO. 4 30 May 2022
TO: L Lukas
FOR Interest on overdue debtor’s account
AMOUNT: R25
A Mxinwa
MUZI TRADERS

JOURNAL VOUCHER
NO. 5 31 May
2022
TO: B Brits
FOR Bad Debts
AMOUNT: R1 200
A Mxinwa
MUZI TRADERS

* Journal Voucher No 2 relates to the correction of a CPJ entry, where Drawings was debited.

Answers to Above Questions on Financial Management

Answer 1: On the basis of above transactions of Muzi Traders, the subsidiary journals are prepared as follows:

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