Prepare the Creditors Journal for Cream Traders using a periodic inventory system, with all amounts inclusive of 15% VAT.

Here are the solutions to the questions based on the provided transactions.

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Q.2.1. Creditors Journal (using a periodic inventory system)

When using a periodic inventory system, purchases of merchandise are recorded in the Purchases account. All amounts are inclusive of 15% VAT.

Calculations for Creditors Journal:

• Date 12 (Cream Traders):
  • Amount (incl. VAT): R6 000
  • Purchases (excl. VAT): $\frac{\text{R}6\,000}{1.15} = \text{R}5\,217.39$
  • VAT Input: $\text{R}6,00