Answer to Question #182302 in Accounting for Prince

Question

Willow Traders is a nursery in Diepkloof. It is owned by Violet who is studying part‐time at

Rosebank College. Willow Traders uses the perpetual inventory system to record inventory

transactions. Mark‐up is 20% on cost on all good sold.

VAT can be ignored on all transactions.

The following transactions took place in the month of August 2020:

NO DATE TRANSACTION

2.1 1 Owner contributed a delivery vehicle valued at R200 000

2.2 4 Purchased goods for cash R10 000 and received a trade discount of

5%

2.3 6 Sold 10 Pecan Trees at R50 each for cash to Lilly Rogers

2.4 15 Paid R300 cash for an advert in the local newspaper

2.5 20 Violet took a rose tree as a birthday present for her sister. Rose trees

are sold at R75 each

Answer 1

The answer to your question is provided in the image: