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 × 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: R 3800 Cost of Sales: R 38001.6 = R 2375 March 8: Sold goods to L Lulu with a cost price of R 1 600. Cost of Sales: R 1600 Sales: R 1600 × 1.6 = R 2560 Step 2: Prepare the Debtors Journal. |l|l|l|l|r|r| Date & Debtor & Invoice No. & Folio & Sales (Dr Debtors Control / Cr Sales) & Cost of Sales (Dr Cost of Sales / Cr Trading Stock) \\ Mar 1 & M Minnie & 51 & DL1 & R 3800 & R 2375 \\ Mar 8 & L Lulu & 52 & DL2 & R 2560 & R 1600 \\ & Total & & & R 6360 & R 3975 \\ 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: R 450 March 7: Goods from Teddy Suppliers: R 7500 March 14: From Queen Suppliers: Laptops: 2 × R 4350 = R 8700 (Equipment) Merchandise: R 18000 (Trading Stock) Stationery: R 855 Total for Queen Suppliers: R 8700 + R 18000 + R 855 = R 27555 March 20: Goods from Ziggy Suppliers with 10% trade discount: R 3400 × (1 - 0.10) = R 3400 × 0.90 = R 3060 March 25: Delivery van from Reasonable Cars: Total cost: R 80000 Cash paid (25%): R 80000 × 0.25 = R 20000 (This is not a credit purchase) Credit portion (balance): R 80000 - R 20000 = R 60000 (Vehicles) Step 2: Prepare the Creditors Journal. |l|l|l|l|r|r|r|r|r|r|l|l| Date & Creditor & Invoice No. & Folio & Creditors Control (Cr) & Trading Stock (Dr) & Equipment (Dr) & Stationery (Dr) & Consumable Stores (Dr) & Vehicles (Dr) & Sundries (Account) & Sundries (Amount) \\ Mar 3 & Barney Traders & X21 & CL1 & R 450 & & & & R 450 & & & \\ Mar 7 & Teddy Suppliers & & CL2 & R 7500 & R 7500 & & & & & & \\ Mar 14 & Queen Suppliers & & CL3 & R 27555 & R 18000 & R 8700 & R 855 & & & & \\ Mar 20 & Ziggy Suppliers & & CL4 & R 3060 & R 3060 & & & & & & \\ Mar 25 & Reasonable Cars & & CL5 & R 60000 & & & & & R 60000 & & \\ & Total & & & R 98565 & R 28560 & R 8700 & R 855 & R 450 & R 60000 & & R 0 \\ 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): R 400 (Trading Stock) March 27: One laptop returned to Queen Suppliers (from March 14 transaction): R 4350 (Equipment) Step 2: Prepare the Creditors Allowances Journal. |l|l|l|l|r|r|r