Prepare the Debtors Journal and Creditors Journal for the following transactions, assuming a 60% mark-up on cost.

Here are the required journals:

1.1.1 Debtors Journal (DJ)

The Debtors Journal records all credit sales. The profit mark-up is 60% on cost, meaning Selling Price = Cost Price $\times$ 1.6.

Step 1: Calculate sales and cost of sales for credit transactions.

• March 1: Sold merchandise to M Minnie for R 3 800.
  • Sales: $\text{R } 3800$
  • Cost of Sales: $\frac{\text{R } 3800}{1.6} = \text{R } 2375$
• March 8: Sold goods to L Lulu with a cost price of R 1 600.
  • Cost of Sales: $\text{R } 1600$
  • Sales: $\text{R } 1600 \times 1.6 = \text{R } 2560$

Step 2: Prepare the Debtors Journal.

$$\begin{array}{|l|l|l|l|r|r|} \hline \textbf{Date} & \textbf{Debtor} & \textbf{Invoice No.} & \textbf{Folio} & \textbf{Sales (Dr Debtors Control / Cr Sales)} & \textbf{Cost of Sales (Dr Cost of Sales / Cr Trading Stock)} \\ \hline \text{Mar 1} & \text{M Minnie} & \text{51} & \text{DL1} & \text{R } 3800 & \text{R } 2375 \\ \text{Mar 8} & \text{L Lulu} & \text{52} & \text{DL2} & \text{R } 2560 & \text{R } 1600 \\ \hline & \textbf{Total} & & & \boxed{\textbf{R } \mathbf{6360}} & \boxed{\textbf{R } \mathbf{3975}} \\ \hline \end{array}$$

1.1.2 Creditors Journal (CJ)

The Creditors Journal records all credit purchases.

Step 1: Calculate amounts for each credit purchase.

• March 3: Consumable stores from Barney Traders: $\text{R } 450$
• March 7: Goods from Teddy Suppliers: $\text{R } 7500$
• March 14: From Queen Suppliers:
  • Laptops: $2 \times \text{R } 4350 = \text{R } 8700$ (Equipment)
  • Merchandise: $\text{R } 18000$ (Trading Stock)
  • Stationery: $\text{R } 855$
  • Total for Queen Suppliers: $\text{R } 8700 + \text{R } 18000 + \text{R } 855 = \text{R } 27555$
• March 20: Goods from Ziggy Suppliers with 10% trade discount:
  • $\text{R } 3400 \times (1 - 0.10) = \text{R } 3400 \times 0.90 = \text{R } 3060$
• March 25: Delivery van from Reasonable Cars:
  • Total cost: $\text{R } 80000$
  • Cash paid (25%): $\text{R } 80000 \times 0.25 = \text{R } 20000$ (This is not a credit purchase)
  • Credit portion (balance): $\text{R } 80000 - \text{R } 20000 = \text{R } 60000$ (Vehicles)

Step 2: Prepare the Creditors Journal.

$$\begin{array}{|l|l|l|l|r|r|r|r|r|r|l|l|} \hline \textbf{Date} & \textbf{Creditor} & \textbf{Invoice No.} & \textbf{Folio} & \textbf{Creditors Control (Cr)} & \textbf{Trading Stock (Dr)} & \textbf{Equipment (Dr)} & \textbf{Stationery (Dr)} & \textbf{Consumable Stores (Dr)} & \textbf{Vehicles (Dr)} & \textbf{Sundries (Account)} & \textbf{Sundries (Amount)} \\ \hline \text{Mar 3} & \text{Barney Traders} & \text{X21} & \text{CL1} & \text{R } 450 & & & & \text{R } 450 & & & \\ \text{Mar 7} & \text{Teddy Suppliers} & & \text{CL2} & \text{R } 7500 & \text{R } 7500 & & & & & & \\ \text{Mar 14} & \text{Queen Suppliers} & & \text{CL3} & \text{R } 27555 & \text{R } 18000 & \text{R } 8700 & \text{R } 855 & & & & \\ \text{Mar 20} & \text{Ziggy Suppliers} & & \text{CL4} & \text{R } 3060 & \text{R } 3060 & & & & & & \\ \text{Mar 25} & \text{Reasonable Cars} & & \text{CL5} & \text{R } 60000 & & & & & \text{R } 60000 & & \\ \hline & \textbf{Total} & & & \boxed{\textbf{R } \mathbf{98565}} & \boxed{\textbf{R } \mathbf{28560}} & \boxed{\textbf{R } \mathbf{8700}} & \boxed{\textbf{R } \mathbf{855}} & \boxed{\textbf{R } \mathbf{450}} & \boxed{\textbf{R } \mathbf{60000}} & & \boxed{\textbf{R } \mathbf{0}} \\ \hline \end{array}$$

1.1.3 Creditors Allowances Journal (CAJ)

The Creditors Allowances Journal records all returns to suppliers.

Step 1: Calculate amounts for each return.

• March 16: Damaged goods returned to Teddy Suppliers (cost price): $\text{R } 400$ (Trading Stock)
• March 27: One laptop returned to Queen Suppliers (from March 14 transaction): $\text{R } 4350$ (Equipment)

Step 2: Prepare the Creditors Allowances Journal.

\begin{array}{|l|l|l|l|r|r|r