grade 10 preparation - western cape
TRANSCRIPT
Directorate: Curriculum FET
ACCOUNTING
PREPARATION FOR GRADE 10
2 Accounting: Preparation for Grade 10
Dear Accounting Learner
Congratulations on choosing Accounting as one of your Grade 10 subjects.
Your subject choice will no doubt open doors for you. With this subject you will be equipped with
valuable skills which include:
orderliness thoroughness meticulousness accuracy financial literacy ethical behaviour sound judgement organisation critical, logical and analytical abilities neatness
You will learn skills that will prepare you for life, skills that you will be able to apply in any career
and very importantly in your own personal life.
This is an exciting, interesting and dynamic subject. Decide today, right now to enjoy this subject
and even better, to love it!
You will need to work regularly, every day; at this subject and I can assure you that if you are
prepared to work diligently you will enjoy success.
Enjoy this course that has been specially designed for you to prepare you for Grade 10 next year.
Have fun.
“PASSION + VISION + ACTION is the equation for success” by Marilyn King, US Olympic
Pentathlete.
Be passionate about Accounting, have a vision of what you would like to achieve with it and act
upon your passion and vision by working hard at the subject and you will succeed.
Dr GR Schreuder
Senior Curriculum Planner: Accounting
3 Accounting: Preparation for Grade 10
MODULE 1: CONCEPTS AND ACCOUNTING CYCLE
In Accounting you will come across terminology relating to a business. It is very important that you
understand these basic concepts.
In your workbook there are two activities that will assess your understanding of basic accounting
concepts and terminology.
Complete Activities 1.1 and 1.2 in your workbook.
The Accounting Cycle
Step 2:
Source documents
Step 1:
Transactions
Step 3:
Journals
Step 4:
Ledgers
Step 5:
Trial Balance
Step 6:
Financial Statements
4 Accounting: Preparation for Grade 10
MODULE 2:
THE ACCOUNTING EQUATION
ASSETS = OWNER’S EQUITY + LIABILITIES
CLASSIFICATION OF ACCOUNTS
ASSETS
Fixed assets Financial assets Current assets
Land and buildings Equipment Vehicles
Fixed deposits/Investments
Trading stock Debtors’ control Bank Cash float Petty cash Savings account Accrued income (still to be
dealt with) Prepaid expenses (still to be
dealt with) Consumable stores on hand
(still to be dealt with)
LIABILITIES
Non-current liabilities Current liabilities
Loans (> 12 months) Creditors’ control Bank overdraft Loans (< 12 months) Accrued expenses (still to be dealt with) Income received in advance (still to be dealt
with)
OWNERS EQUITY
Drawings Capital
Expenses Income
Cost of sales Rent expense Salaries and wages Stationery Rates Insurance Water and electricity Advertising Bank charges Telephone Repairs Packing material Interest on bank overdraft Donations Interest on loan
Sales Current income Rent income Commission received Interest on current bank account Interest on savings account Interest on fixed deposit
5 Accounting: Preparation for Grade 10
ACCOUNTING PRINCIPLES
Dr ASSETS Cr Dr LIABILITIES Cr
Balance b/d X
+
-
-
Balance b/d X
+
Dr OWNERS EQUITY Cr
-
(Expenses decrease Owners Equity)
Balance b/d X
+
(Income increases Owners Equity)
Steps when analysing transactions according to the Accounting Equation
1. Identify the accounts 2. Classify the accounts 3. Analyse the effect on the accounting equation by applying the Accounting principles.
The expanded accounting equation
Owner’s equity = Capital – Drawings + Income – Expenses
Therefore Assets = (Capital – Drawings + Income – Expenses) + Liabilities OR
Assets + Drawings + Expenses = Capital + Income + Liabilities
This expanded equation is very important for your studies in Accounting. It is important that you
understand this formula.
6 Accounting: Preparation for Grade 10
Activity 2.1
Enter the following transactions for June 2015 in the columns, indicating an increase with a ‘+’ and
a decrease with a ‘-‘: Total the columns.
Transactions for June 2015
2 Bought equipment from Tradeau Traders for R10 000 and paid by cheque.
3 The owner increased her capital by depositing R15 000 into the bank account of the business.
5 Paid for consumable stores purchased from Wonderful Wholesalers by cheque, R4 000.
8 Received fee income of R7 800 for services rendered.
12 Paid R6 500 to Winter Estates for rent of property.
18 Paid wages, R6 800
20 Donated a cheque to the value of R1 000 to the local high school.
22 Bought a vehicle for R105 000 and paid by cheque.
25 Received cash from customers for services rendered, R12 400 30 The owner cashed a cheque for his personal use, R5 000.
7 Accounting: Preparation for Grade 10
Activity 2.2
Lou Chang started a laundry business on 1 January 2015 called Lang Cleaners.
REQUIRED:
Record the transactions for September in the table provided in your workbook.
The totals at the end of August 2015 are as follows:
Assets Bank, R112 000 Equipment, R34 000
Expenses R132 000
Drawings R96 000
Liabilities Creditors, R4 000
Capital R150 000
Income R220 000
Transactions: September 2015
5 Issued a cheque to Fast Motors for a new vehicle purchased, R90 000.
7 Cashed a cheque to pay for wages, R1 600.
9 Issued receipts for fee income received from customers, R6 000.
11 Lou Chang cashed a cheque for personal use, R4 000.
15 Settled the account of one of the creditors, R2 000
17 Repairs done to equipment on credit, R3 400.
17 Issued receipts for fee income received from customers, R10 800.
20 Cashed a cheque for wages, R1 600.
25 Issued a cheque for stationery bought, R800.
28 Issued a receipt to Lou Chang for capital contributed, R50 000.
29 Issued a cheque to Pelican Properties to pay for rent, R3 000.
Activity 2.3
Complete the table in your workbook by inserting the missing figures as denoted by an *.
8 Accounting: Preparation for Grade 10
DOUBLE ENTRY PRINCIPLE
Double Entry Principle
THE GENERAL LEDGER
Assets + Drawings + Expenses = Capital + Income + Liabilities: This formula forms the basis
of the General Ledger.
Assets, Drawings and Expense accounts increase on the debit side of the general ledger while
Capital, Income and Liability accounts increase on the credit side.
The General Ledger consists of three sections, viz. the Balance Sheet Accounts Section, the
Nominal Accounts Section and the Final Accounts Section.
Balance Sheet Accounts Section
Nominal Accounts Section Final Accounts Section (end of accounting period)
Capital Drawings Assets Liabilities
Income Expenses
Trading account Profit and loss
account
Dr. GENERAL LEDGER OF XXXXXX Cr.
Name of account Fol.
Date Details Fol Amount Date Details Fol Amount
For every debit entry there must be an equal and
corresponding credit entry.
9 Accounting: Preparation for Grade 10
Activity 2.4
Goofy Gardener started a gardening service business on 1 January 2015, called Goofy Gardening.
REQUIRED:
Open the general ledger accounts with the balances/totals on 1 November 2015. Enter the
transactions of Goofy Gardening for November 2015 in the General Ledger. Balance the balance
sheet accounts and total the nominal accounts on 30 November 2015.
The following balances/totals appeared in the General Ledger on 1 November 2015.
Assets Bank
R24 000 Savings R80 000 Equipment R68 000 Vehicles R140 000 Equity Capital R300 000 Drawings R52 000 Liabilities Creditors’ control R8 000 Income Interest income R20 000 Fee income R420 000 Expenses Wages R133 640 Insurance R12 800 Rent expense R36 000 Bank charges R1 960 Fuel R34 000 Motor vehicle expenses R45 600
Transactions – November 2015
2 Transferred R60 000 from the savings account to the current account.
6 Issued a cheque in favour of Best Motors for a new vehicle purchased, R175 000.
7 Cashed a cheque to pay wages, R3 200.
10 Issued receipts for fee income received from customers, R12 000.
11 Issued a cheque for insurance premium, R2 400.
14 Goofy cashed a cheque for his personal use, R8 000. Cashed a cheque to pay wages, R3 200.
16 Settled a creditor’s account by cheque, R2 800.
18 Purchased equipment on credit from Power Tools and Hardware, R138 000.
17 Issued receipts for fee income received from customers, R20 800.
19 Motor vehicle repairs done on credit by Perfect Motors, R4 800.
21 Cashed a cheque to pay wages, R3 200.
23 Issued receipt to Goofy for extra capital contributed, R220 000.
25 Issued a cheque to Penn Properties for monthly rent, R6 000.
27 Issued a cheque to Apex Garage for petrol, R1 400.
28 Cashed a cheque to pay wages, R3 600.
30 The bank statement reflected bank charges of R670 and interest on current account, R260.
10 Accounting: Preparation for Grade 10
Activity 2.5 You are provided with information relating to Yusuf’s Cellphone Repairs for the month of May 2015. REQUIRED: Analyse the following transactions by completing the table in your workbook. The first entry has been done for you as an example. 1. Paid wages by cheque, R1 500.
2. Bought paper for the office computer, R450 and paid for it by cheque.
3. Transferred R10 000 from Yusuf’s personal banking account to the bank account of the business.
4. Paid for insurance of the business equipment, R2 300.
5. Received R6 000 from clients for services rendered.
6. Paid Home Properties for rent of property, R4 000.
7. Bought equipment from Cell Warehouse and paid by cheque, R6 000.
8. Purchased consumable stores and paid by cheque, R8 300.
9. The owner paid his personal telephone account by cheque, R550.
10. Paid the business telephone account, R1 200.
11 Accounting: Preparation for Grade 10
TRADING BUSINESS: COST OF SALES CALCULATIONS
Cost Price: The amount the business pays for the goods.
Selling Price: The amount the business charges when the goods are sold.
Mark-up: The percentage the business adds to the cost price.
Cost of sales = Sales x 100 100 + mark-up% Sales = Cost of sales x 100 + mark-up% 100
Activity 2.6
REQUIRED:
Calculate the missing figures in the table below that are indicated by a ‘?’.
No. Cost price Profit mark up (%) Selling price
1 R3 000 ? R4 500
2 R3 000 150 ?
3 ? 80 R360
4 ? 20 R4 500
5 R1 800 33⅓ ?
6 R2 500 ? R7 500
7 R16,80 16 ?
8 R1 400 ? R1 680
9 R1 960 ? R2 450
10 R900 66⅔ ?
12 Accounting: Preparation for Grade 10
Activity 2.7 Martin Meyer is the owner of MM Superette. All merchandise is sold at a mark-up of 60% on cost price. The following balances/totals appeared in the General Ledger on 1 July 2015.
Capital R755 700 Drawings R15 000 Vehicles R196 500
Equipment R41 250 Trading stock R133 050 Bank (Cr.) R3 000
Cash float R750 Rent expense R120 000 Sales R241 200
Cost of sales R150 750 Salaries and wages R315 000 Stationery R27 600
REQUIRED: Open the general ledger accounts with the balances/totals on 1 July 2015. Enter the transactions
of MM Superette for July 2015 in the General Ledger. Balance the balance sheet accounts and
total the nominal accounts on 31 July 2015.
3 Cashed a cheque for R750 to increase the cash float. 4 Issued a cheque for R7 800 to Makro for a computer and printer. 6 Bought merchandise from Ray Wholesalers and issued a cheque for R78 000 less 10%
trade discount. Cashed a cheque to pay wages, R8 000. 10 Cash sales, R36 000. 12 Paid insurance to Metropolitan as follows:
On the owner’s private assets, R1 650 On the business assets, R7 000
15 The owner increased his capital by depositing R97 000 in the bank account of the business. 17 Bought stationery from PNA for R630 and paid by cheque. 20 Paid the following charges:
Water and electricity to the Municipality, R3 350 Telephone to Telkom, R2 150
24 Cash sales, R24 000. 26 Paid the salary of the manager, R13 200. 30 The owner cashed a cheque for his personal use, R9 000.
13 Accounting: Preparation for Grade 10
Activity 2.8 You are provided with information relating to Thabo’s Gold Shop for June 2015. REQUIRED: Analyse the following transactions by completing the table in your workbook. The first entry has been done for you as an example. 1 Thabo increased his capital contribution by depositing R100 000 in the bank account of the
business. 3 Thabo bought a vehicle and paid by cheque, R180 000. 5 Purchased merchandise from Excellent Wholesalers, R25 000. 8 Paid R350 by cheque for one advertisement in the local newspaper. 10 Sold goods for cash, R15 000 (cost price, R7 500) 12 Thabo cashed a cheque for his personal use, R2 000. 14 Paid wages by cheque, R12 600. 18 Purchased fuel from Diep River Motors, R850. 21 Received rent from a tenant, R4 800. 24 Sold goods for cash, R22 000 (Cost price, R11 000) 28 Paid Thabo’s gym membership fee, R600.
14 Accounting: Preparation for Grade 10
MODULE 3: CASH TRANSACTIONS
Journals (also called subsidiary journals) are books of first entry.
It helps to organise transactions in different types (cash receipts and cash payments) and to
simplify the orderly transfer information to the next step in the accounting cycle.
The first few steps in the accounting cycle: transactions, source documents, journals and ledger.
® Cash Receipts Journal: to record all cash received
® Cash Payments Journal: to record all cash payments
Documents used in cash transactions by the business:
® Original Receipt: issued when cash is received for goods or services.
® Cheque: issued when a “cash” payment is made for goods or services
® Cash register slip: issued by the cashier for cash sales
® Deposit slip: to deposit cash and verify deposits
Source documents are used to record cash transactions in the books of the business:
® Duplicate receipt: to record cash received
® Cheque counterfoil: to record cash payments
® Cash register tape: to record cash sales
® Bank Statement: to record and verify electronic fund transfers (EFTs).
EXAMPLES OF SOURCE DOCUMENTS:
RECEIPT 001
……………….20….
Received from ………………………………………….
the sum of …………………………………………………………………….
For …………………………………………………………………………….
…………………………
for Cornel Stores
15 Accounting: Preparation for Grade 10
STANDARD BANK CREDIT:
5 0059 (V.2) Address:
/ /20
Please ensure that your account number is correctly
filled in as Standard Bank Ltd. cannot be held
responsible for errors resulting from in-correct
information furnished. Cheques etc. handed in for
collection will be available as cash after payment.
While acting in good faith and exercising reasonable
care, Standard Bank Ltd. will not accept responsibility
for ensuring that depositors / account holders lawful title
to cheques etc. collected.
Note
Nikkel
Bronzes
Postal orders
Total cash
Drawer’s name
Branch clearing number
1. 2. 4.
Paid in by
Account number
For Bank use only
Effects not cleared
Total
______________20__
TO
__________________
__________________
FOR
_________________
__________________
R
001
32-87-41-64
Standard Bank
Parow Branch
Date ____________________20____
Pay _________________________________________ or Bearer
R_____________________________________________________
______________________________________
___________________
THEMBI STORES
001 3456789012
CHEQUE ACCOUNT DEPOSIT
Teller’s date
stamp and
signature
16 Accounting: Preparation for Grade 10
CASH RECEIPTS JOURNAL OF ABEL TRADERS – MAY 2015 CRJ5
Doc
no
Day Details Fol Analysis of
receipts
Bank Sales Cost of
sales
SUNDRY ACCOUNTS
Amount Fol Details
CRR 15 Sales 350 00 350 00 350 00 200 00
CRR 25 Sales 840 00 840 00 840 00 480 00
CRR 30 Sales 315 00 315 00 180 00
01 Alma Smit 10 000 00 10 315 00 10 000 00 B1 Capital
11 505 00 1 505 00 860 00 10 000 00
B3 N1 B2/N2
WHAT DOES THIS JOURNAL TELL US?
Money was received.
WHAT IS THE MAIN COLUMN CALLED?
Bank
WHAT HAPPENS TO THIS ACCOUNT (MAIN
COLUMN)?
The money in the bank increases
WHAT TYPE OF ACCOUNT IS BANK?
An Asset
WHAT IS THE RULE FOR ASSETS?
It increases on the debit side and decreases on
the credit side
JINGLE: BANK IS DEBITED (with the words
“Total receipts’) AND THE REST IS CREDITED
(with the word ‘Bank’),
EXCEPT COST OF SALES!!!!
COST OF SALES HAS ITS OWN JINGLE…
COST OF SALES AND TRADING STOCK ALWAYS GOES TOGETHER (BFF’S)!!
WE ALWAYS REASON FROM THE POINT OF VIEW OF WHAT IS HAPPENING TO TRADING
STOCK
WHAT DOES THIS JOURNAL TELL US AGAIN?
Money was received. In this case, we received money for Trading stock sold.
WHAT HAPPENS TO TRADING STOCK IF WE SOLD SOME OF IT?
Trading Stock decreases.
WHAT TYPE OF AN ACCOUNT IS TRADING STOCK?
An Asset
WHAT IS THE RULE FOR ASSETS?
It increases on the debit side and
decreases on the credit side
JINGLE: Trading stock is credited (decreases) and Cost of Sales (its best friend) is debited (the
opposite is done in the contra account-best friend account).
Dr(+) TRADING STOCK B.. Cr(-)
860
Dr(-) COST OF SALES N.. Cr(+)
860
17 Accounting: Preparation for Grade 10
CASH PAYMENTS JOURNAL OF ABEL TRADERS – MAY 2015 CPJ5
Doc
no
Day Details Fol Bank Stationery Trading
stock
SUNDRY ACCOUNTS
Amount Fol Details
12 10 B&B Books 350 00 350 00
13 14 XYZ Stores 1 500 00 1 500 00
14 17 Telkom 550 00 550 00 N4 Telephone
15 22 Fine Foods 900 00 900 00
3 300 00 350 00 2 400 00 550 00
B3 N3 B2
WHAT DOES THIS JOURNAL TELL US?
Money was paid. The business spent money.
WHAT IS THE MAIN COLUMN CALLED?
Bank
WHAT HAPPENS TO THIS ACCOUNT (MAIN COLUMN)?
The money in the bank decreases – becomes less.
WHAT TYPE OF ACCOUNT IS BANK?
An Asset
WHAT IS THE RULE FOR ASSETS?
It increases on the debit side and decreases on the credit side
JINGLE: BANK IS CREDITED (with the words: “Total payments”) AND THE REST IS DEBITED (with the word “Bank”).
18 Accounting: Preparation for Grade 10
. Activity 3.1
You are provided with information relating to Purdon Tyre Shop for the month of September 2015. REQUIRED: Analyse the following transactions in your workbook. The first entry has been done for you as an example. 01 Paid the wages by cheque, R3 250. 03 The owner increased his capital contribution from R130 000 to R175 000 and received a receipt from the bookkeeper. 04 Sold goods according to the cash register roll, R3 000. Profit mark-up on cost price was 50 %. 06 Paid the office rent of R4 050. 11 Paid the telephone account to Telkom, R4 500. 13 Placed an advertisement in Country Post and pay, R427 by cheque. 17 Bought goods from Audrey Suppliers, R3 700, as well as equipment to the amount of R1 800. 19 Issued a cheque to Dean Repairs for repair work to equipment, R2 500. 20 Cashed a cheque for cash float, R550. 21 Bought an invoice book and other necessities at Paper & Books, R345 and paid by cheque. 25 Paid the water and electricity account to the municipality, R3 283. R1 904 was for the water and electricity account of the business and the rest was for the owner’s home. 28 Issued a receipt to A van Vuuren for rent of part of the building, R4 800.
19 Accounting: Preparation for Grade 10
Activity 3.2
Mary Mürtz is the owner of Mürtz Stores. During April 2015 the following transactions took place: REQUIRED:
Record the following transactions in the Cash Receipts Journal and Cash Payments Journal - Activity 3.2 in your workbook. You must cast the journals at the end of the month.
Transactions
April 2015
1 Cash sales of merchandise, R8 000 (cost price R6 000).
3 Mary Mürtz increased her capital contribution by paying R30 000 to the cashier. Issued
receipt 10.
5 Issued cheque 37 to Total Insurers for the annual insurance premium, R3 444.
6 Paid the weekly wages, R1 500.
15 Received a cheque from E Joubert, R4 800 for rent of offices in the building.
18 Issued a cheque to Suzaan Traders for the following: trading stock, R3 500; equipment,
R5 000 and stationery, R400.
27 The owner took R1 500 for personal use.
20 Accounting: Preparation for Grade 10
Activity 3.3
Talitha Stores sells their products at a mark-up of 25% on cost price.
REQUIRED:
3.3.1 Record the following transactions in the Cash Receipts Journal and Cash Payments Journal.
3.3.2 Post from the cash journals to the General Ledger.
Transactions – March 2015
1 Received R120 000 from the owner, Talitha Venter as her capital contribution. Issued receipt no. 001
5 Purchased a computer and filing cabinet from Anina Furnishers and paid by cheque no. 001, R9 000.
6 Purchased goods from Lianie Suppliers for R7 000 less 10% trade discount and paid by cheque.
8 Issued cheque for R300 to Mirrah Stationers for stationery purchased.
12 Sold goods for cash R2 500.
19 Purchased a second-hand delivery vehicle from Nettie Garage and paid by cheque, R34 000. Cash a cheque to pay wages, R750.
23 Purchased packing material from Pacmar Ltd for R200 and paid by cheque.
25 Received a cheque from X Factor Travel Agency for rent for the month, R2 500. Received cash for merchandise sold, R1 500.
28 Cashed a cheque to pay wages, R750.
31 Issued a cheque to City Treasurer to pay water and electricity, R400 and rates, R300.
Paid the salary of the manager, G Schreuder, R5 500.
21 Accounting: Preparation for Grade 10
Activity 3.4
You are provided with information relating to Larah Traders, owned by Larah Fernandez.
REQUIRED:
3.4.1 Use the information provided to post to the accounts in the General Ledger.
3.4.2 Prepare a Trial Balance on 31 May 2015.
Balances/Totals on 1 May 2015
Capital R75 000 Drawings R23 500
Trading stock R15 800
Bank R50 100 Sales R72 000
Cost of sales R57 600
CASH RECEIPTS JOURNAL OF LARAH TRADERS - MAY 2015 CRJ 5
Doc.
No. D Details
F
Analysis
of Receipts Bank Sales
Cost
Of
Sales
Sundry Accounts
Amount Fol Details
121 1 Larah Fernandez 140 000 140 000 140 000 Capital
CRT
11 16 Sales/Cash 9 600 9 600 9 600 7 680
CRT
12 27 Sales/Cash 2 400 2 400 1 920
122 Capricorn Traders 5 000 7 400 5 000 Rent income
157 000 12 000 9 600 145 000
22 Accounting: Preparation for Grade 10
CASH PAYMENTS JOURNAL OF LARAH TRADERS - MAY 2015 CPJ 5
Doc D Details F Bank Trading
Stock Wages Stationery
Sundry Accounts
Amount Fol Details
181 5 Cash 8 000 8 000
182 12 Leo Traders 8 000 8 000
183 Virgo Transport 6 540 6 540
184 24 Eskom 2 120 1 400 Water and electricity
720 Drawings
185 29 Pisces Motors 65 000 65 000 Vehicles
186 30 M Moon 7 600 7 600 Salaries
Mill Stationers 548 548
97 808 14 540 8 000 548 74 720
23 Accounting: Preparation for Grade 10 – Training Manual
MODULE 4: CREDIT TRANSACTIONS Credit transaction: the exchange of goods or services where the payment is postponed to a
date in the future. Debtor: The customer/ person TO whom the business sells goods or services on credit. Creditor: The person / business / supplier FROM whom the business purchases goods or
services on credit. Source documents and Journals used to record credit transactions
Debtors
Source documents Journals Type of transaction
Duplicate invoice Debtors Journal Credit sales
Duplicate receipt Cash Receipts Journal Payments received from debtors
Duplicate Credit Note Debtors Allowances Journal Returns from and allowances to debtors
Creditors
Source documents Journals Type of transaction
Original Invoice Creditors Journal Credit purchases
Cheque counterfoil Cash Payments Journal Payments made to creditors
Dupliate debit note/
Original credit note
Creditors Allowances Journal
Returns to and allowances from creditors
General Ledger
Debtors' Control account: records the total owing by debtors
Creditors' Control account: records the total owing to creditors
Subsidiary Ledgers
Debtors' Ledger: a collection of the individual accounts of the debtors. The sum of the final balances of the individual debtors equals the balance of the Debtors' control account. Final balances of each debtor is captured in a Debtors List.
Creditors' Ledger: a collection of the individual accounts of the creditors. The sum of the balances of the individual creditors equals the balance of the Creditors' control account. Final balances of each ceditor is captured in a Creditors' list.
24 Accounting: Preparation for Grade 10 – Training Manual
Activity 4.1: Analysis of transactions
You are provided with transactions from the books of Kenyon Stores for October 2015. Analyse these transactions according to the columns provided. Example: Bought stationery from PNA and paid R500 by cheque. TRANSACTIONS: 1. Purchased goods on credit from Sharks Traders for R3 000. 2. Received a cheque from B. Bull, a debtor, in full settlement of his account of R600. 3. Merchandise sold on credit to Y. Tale, R2 400. The business uses a profit mark-up of 33 ⅓
% on cost. 4. Y. Tale claimed an allowance for an overcharge on the credit sales, R200. 5. Returned goods not according to order to Sharks Traders, R900. 6. Issued a cheque to Whale Stores, a creditor, for payment on their account, R5 800.
25 Accounting: Preparation for Grade 10 – Training Manual
Activity 4.2: Journals
Lucky Star owns a business, Lucky Traders, that buys and sells household appliances. They sell merchandise for cash and on credit and use a profit mark up of 25% on cost price. Debtors' and Creditors' List on 1 March 2015:
Debtors Creditors
S. Sardien R3 450 Bocom Wholesalers R8 250 H. Harder R2 890 Prawn Traders R4 500 REQUIRED:
4.2.1 Record the following transactions in the DJ, DAJ, CRJ, CJ, CAJ, CPJ. Use the journals provided for Activity 4.2 in the work book.
4.2.2 Close off the journals at the end of the month. TRANSACTIONS for March 2015 3 Purchased trading stock, R2 400 on credit from Bocom Wholesalers. Received invoice
A533 (renumbered 113) together with the consignment. 5 Trading stock not according to order, was returned to Bocom Wholesalers, together with a
debit note for R300. Bocom Wholesalers issued a credit note no CN56 (renumbered 42). 6 Bought consumable stores, R320 and trading stock, R2 120 from Bocom Wholesalers and
paid by cheque no. 345. These goods are subject to 10% cash discount. 7 Sold goods on credit to S. Sardien, R1 525. Issued invoice 201. 8 Received invoice 908 from Prawn Traders for consumable stores, R470. 10 Cash a cheque to pay wages, R8 200.
S. Sardien claimed an allowance for damaged items, R125. Sardien agreed to keep the items. Issued credit note no 54 to him.
13 Issued an invoice to H. Harder for goods sold to her, R840.
Returned consumable stores, R150 to Prawn Traders, together with a debit note. Prawn Traders confirmed these returns by issuing credit note BN891.
14 Received a cheque from H. Harder to settle her account as on 1 March 2015. Issued
receipt no 37. 16 The owner increased his capital from R55 000 to R80 000. Issued a receipt.
26 Accounting: Preparation for Grade 10 – Training Manual
18 Paid Bocom Wholesalers R900 by cheque in part payment of our account. 19 Issued cheque to Prawn Traders to settle the amount owing to date
Sold goods for cash to H. Harder, R600. (CRT 9) 22 Purchased a new cash register on credit from Bocom Wholesalers for R6 500, subject to a
trade discount of 5%. 27 Bought the following on credit from Prawn Traders:
merchandise, R1 200 consumable stores, R800.
28 S. Sardien paid R1 200 in part payment of his account.
Received a cheque from K Powell for office space let to him for the month. Annual rental amounts to R36 000.
30 H. Harder purchased goods to the value of R1 800 on credit.
Paid electricity by cheque to the municipality, R650. 31 H. Harder returned damaged items, R400. Issued a credit note to her.
27 Accounting: Preparation for Grade 10 – Training Manual
Activity 4.3: Post to Ledgers; Trial Balance
The information below relates to Sushi Traders, who buy and sell for cash and on credit. REQUIRED:
4.3.1 Use the relevant information from the journals below to post to the accounts in the General, Debtors' and Creditors' Ledgers. Balance or close off all the accounts in the General Ledger.
4.3.2 Prepare a Trial Balance on 30 April 2015. INFORMATION
The following journals were taken from the books of Sushi Traders after their first month of trading.
Cash Receipts Journal of Sushi Traders – April 2015 CRJ1
Doc no
D Details Fol Analysis of
Receipts
Bank Debtors Control
Sales Cost of Sales
Sundry Accounts
Amount Fol Details
001 1 Mr Nigiri 200 000 200 000 200 000 Capital
CRT1 6 Sales 6 960 6 960 4 640
002 S. Rose 750 7 710 750
003 12 Mr Nigiri 70 000 70 000 70 000 Capital
CRT2 14 Sales 18 160 18 160 18 160 12 107
CRT3 22 Sales 5 360 5 360 5 360 3 573
004 26 H. Meyer 2 300 2 300
005 Rita Estates 8 000 10 300 8 000 Rent Income
311 530 3 050 30 480 20 320 278 000
Debtors Journal of Sushi Traders – April 2015 DJ1
Doc no
D Details Fol Sales Cost of Sales
01 4 S. Rose 1 470 980
02 16 H. Meyer 1 565 1 043
03 25 H. Meyer 1 452 968
4 487 2 991
Debtors Allowances Journal of Sushi Traders – April 2015 DAJ1
Doc no
D Details Fol Debtors Allowances
Cost of Sales
C1 10 S. Rose 244 163
C2 18 H. Meyer 345 230
589 393
28 Accounting: Preparation for Grade 10 – Training Manual
Cash Payments Journal of Sushi Traders – April 2015 CPJ1
Doc no
D Name of Payee Fol Bank Trading Stock
Wages Creditors Control
Sundry Accounts
Amount Fol Details
0001 1 Gordon Traders 8 900 8 900 Equipment
0002 2 PD Wholesalers 12 100 12 100
0003 5 Municipality 850 850 Rates
0004 10 Shaun Traders 2 400 2 400
0005 16 Safe Insurance 2 650 1 450 Insurance
1 200 Drawings
0006 Cash 9 800 9 800
0007 22 Snowy Traders 600 600 Stationery
0008 24 Cash 9 800 9 800
0009 26 AB Stores 5 152 5 152
0010 28 Waqa Stores 1 932 1 932
0011 30 MJ Simba 12 600 12 600 Salaries
0012 Municipality 3 890 3 890 Electricity
0013 Terry Traders 3 440 3 440
74 114 20 692 19 600 4 332 29 490
Creditors’ Journal of Sushi Traders – April 2015 CJ1
Doc no D Details Fol Creditors’
control Trading Stock
Stationery Sundry Accounts
Amount Fol Details
N1 8 Shaun Traders 4070 4070
N2 13 Waqa Stores 2 176 2 176
N3 21 Gordon Traders 4 200 4 200 Equipment
N4 24 Waqa Stores 300 300
10 746 6 246 300 4 200
Creditors’ Allowances Journal of Sushi Traders – April 2015 CAJ1
Doc no D Details Fol Creditors’
control Trading Stock
Stationery Sundry Accounts
Amount Fol Details
E1 11 Shaun Traders 104 104
E2 29 Waqa Stores 40 40
144 104 40
29 Accounting: Preparation for Grade 10 – Training Manual
Activity 4.4: Posting to selected General Ledger accounts
REQUIRED
Use the given information to post to the following accounts in the General Ledger of Eddy Traders.
Close off the accounts in the balance sheet section.
Balances on 1 May 2015:
Trading Stock B6 10 500
Debtors' Control B7 6 250
Creditors' Control B8 8 440
Sales N1 13 230
Cost of Sales N2 8 820
Debtors' Allowances N3 2 300
Stationery N4 800
Note: Goods are sold at cost plus 50%. The following totals appeared in the journals as on 31 May 2015:
Cash Receipts Journal of Eddy Traders – May 2015 CRJ 10 Bank Sales Cost of Sales Debtors control Sundry accounts
R14 600 R4 500 ? R2 190 R7 910
Cash Payments Journal of Eddy Traders – May 2015 CPJ 10 Bank Trading Stock Stationery Creditors control Wages
R14 600 ? R240 R7 500 R2 400
Debtors Journal of Eddy Traders – May 2015 DJ 10 Sales Cost of sales
? R2 100
Debtors Allowances Journal of Eddy Traders – May 2015 DAJ 10 Debtors Allowances Cost of sales
R780 ?
Creditors Journal of Eddy Traders – May 2015 CJ 10 Creditors Control Trading Stock Stationery Sundry Accounts
? R5 000 R350 R2 450
Creditors Allowances Journal of Eddy Traders – May 2015 CAJ 10 Creditors Control Trading Stock Stationery Sundry Accounts
R1 415 ? 90 R475
30 Accounting: Preparation for Grade 10 – Training Manual
Activity 4.5: Final assessment
You are provided with information relating to Easy Traders for July 2015. REQUIRED: Analyse the following transactions by completing the table in Activity 4.5 in your workbook. The first entry has been done for you as an example. 1. Paid the telephone account to Telkom, R2 800.
2. Bought stock on credit from PT Traders, R24 000.
3. Cash sales amounted to R18 000. (Cost of sales, R9 000)
4. Returned unsatisfactory goods to PT Traders, R1 300.
5. D. Dean bought goods on credit from Easy Traders for R3 600. A mark up of 20% on cost applied to these goods.
6. Paid R8 300 to PT Traders as part payment on their account.
7. D. Dean returned goods with which he is dissatisfied, R120. See transaction no. 5.
8. Paid R240 000 to Moby Motors for a new delivery vehicle.
9. Received a cheque from D. Dean in settlement of his account.