Reference no: EM132592598

Big Boy Traders uses the perpetual inventory system and maintains a constant mark-up of 25% on selling price. Amounts are inclusive of VAT of 15% where applicable.

The following transactions took place during March 2020:

1.? Received R20 000, being a loan granted by ASTRA BANK at an interest rate of 12% p.a.

2.? Sold the following on credit to S Maree:

?2 chairs @ R500 each, and

?1 table @ R1 500.

3.? Received R3 000 from S Baloyi, a debtor, after allowing a discount of 5% for prompt payment.

4.? Received an invoice from All-in-one-Store for :

?10 boxes of paper @ R100 each and

?10 boxes of milk @ R60 each for the staff canteen.?

5.? S Maree returned one the chairs, as the colour is not according to the sample.

You are required to:

Question 1: Record the above transactions in the General journal of Big Boy Traders for March 2020.?Narrations are required.