NAME: _______________ CLASS: 8____
GRADE 8
EMS
ACCOUTING
0
ACCOUTING CONCEPTS
SOLE TRADE
•
•
•
•
AKA Sole Proprietor
A business that is owned by only ONE person - Entrepreneur is the only owner and
manager
Simplest and least expensive form of ownership
Few/no legal requirements
The Accounting Equation
Assets = Owner’s Equity + Liabilities
CAPITAL
•
•
•
Owners’ investment in the business.
The money used to start up a business or to help the business continue operating.
eg. You put R50 000 towards starting/maintaining your business.
OWNER’S EQUITY
•
•
•
•
Total investment the owner has in the business.
OE increases if the business makes a profit.
OE decreases if the business makes a loss.
eg. You invest R50 000 in your business and make a profit of R20 000. OE = R70 000
ASSETS
•
•
•
Owned by the business and has value and can be converted into cash.
Non-current / Fixed-Assets: help the business make money and aren’t exchanged for
money (land, buildings, machinery, equipment, vehicles)
Current assets: items that can be converted into cash (Stock, debtors, cash)
LIABILITIES
•
•
•
•
Long Term:
• Only payable after a period of one year (i.e) payment is made over many years.
• Mortgage loan / Bond on a house
Current:
• Must be paid within one year.
• Money owed to creditors.
Creditor: Business owes money to another business
Debtor: Money is owed to the business
1
Profit = Income - Expense
INCOME
•
•
•
Money earned by the business.
For selling goods/providing services
eg. Current Income, Sales, Rent Income.
EXPENSES
•
•
•
•
Costs for running the business.
Unlike assets, have no lasting value.
Expenses are used up and consumed.
Eg. Rent, water, electricity, phone calls, stationery, advertising, wages, supplies
PROFIT
•
•
•
•
Money left over after all expenses have been paid.
Profit = income – expenses
How do you increase profit?
• Increase income
• Reduce expenses
Increase OE = business is worth more
LOSS
•
•
•
•
Shortfall that occur when
• Expenses greater than income
Sole Trader responsible for loss
Too much loss = business closes down
Decreases OE = business is worth less
BANKING
•
•
•
•
Open bank account in business’ name
All money received/paid should flow through this account
Separate from owner’s personal account
Current account (day-to-day activities)
TRANSACTIONS
•
•
•
When a product or service is offered in exchange for money
Incoming transaction
• Cash from customers
• Receiving interest
Outgoing transaction
• Pay for stock
• Paying expenses (eg. Rent, salaries, transport)
• Repay loan
2
CASH RECEIPTS JOURNAL
•
•
•
•
Every transaction begins with a source document.
Business received money from the customer using:
• Cash
• Credit Card
• Debit Card
• EFT
Depositing money into the business account at the bank – receive a Receipt as proof.
Receipt should contain:
• Receipt number
• Name of business
• Details of goods/services sold
• Date
• Amount paid
CASH PAYMENT JOURNAL
•
Business makes payments using:
• Internet Banking (EFT)
• Debit card
• Credit Card
SUBSIDIARY JOURNAL
•
•
CRJ – Cash Receipts Journal
• Record all receipts of cash / all money going INTO the business
CPJ – Cash Payments Journal
• Record of all payments of cash / all money going OUT of the business
BANK STATEMENT
Fill in the answers on the table below
Transaction
Opening Balance
Debit
Interest Earned
Car Service
Income / Salary
800
Rent Expense
Water
Petrol
550
?
?
Credit
Date
1/03/2021
Balance
1200
450
8/03/2021
?
?
17/03/2021
25/03/2021
850
2050
26/03/2021
29/03/2021
31/03/2021
?
800
680
3
GOODS AND SERVICES
Sell products/merchandise/trading stock = SALES
Offer a service for money = CURRENT INCOME
4
PROFIT AND LOSS
Sally decides to start a dog grooming business. She rents a room in her grandmother’s house
and agrees to pay her rent. At the start of the first month she invested R5 000 into the business
bank account. At the end of the first month she draws up the following list of money she
received and paid (all transactions were via her bank account). Use the list to answer the
questions that follow:
Rent paid to grandmother
Transport costs
Advertising
Money received from customers
Cleaning products
Interest received on bank account
Loan received
Telephone account
a)
b)
c)
d)
e)
R2 000
R1 000
R500
R5 000
R450
R80
R10 000
R 300
Calculate the income that Sally’s business has made for the first month.
Calculate Sally’s business expenses for the first month.
Calculate Sally’s business’s Profit for the first month.
Suggest 3 ways in which the business could improve their profitability.
Calculate the amount of money that Sally will have in her bank account at the end of
the first month.
a)
b)
c)
d)
e)
5
SOURCE DOCUMENTS
Proof that a payment was made to/by the business
If the business RECEIVES money, it goes into the CRJ (Cash Receipts Journal)
If the business PAYS money, it goes into the CPJ (Cash Payments Journal)
Cash Sales / Cash
Register
Debit/Credit Card
EFT / Internet
banking / Directly
into bank account
Interest
Loan
Deposited money at
the bank
CRJ (Received Money)
Cash Register Roll
(CRR)
Cash Register Roll
(CRR)
CPJ (Paid Money)
Cash Register Roll
(CRR)
Cash Register Roll
(CRR)
Bank Statement (B/S)
Bank Statement (B/S)
Bank Statement (B/S)
Bank Statement (B/S)
Bank Statement (B/S)
Bank Statement (B/S)
Receipt (REC)
Deposit Slip
6
Owners’
Equity
Assets
Current
Trading Stock
Money owed by customers
(debtors)
Money in bank account
Cash in cash register
Petty Cash
Non-current / Fixed
Land and Buildings
Vehicles
Equipment
Liabilities
Current
Total investment
the owner has in
the business
Money business owes to
other businesses (creditors)
Overdraft
Non-current
Bond / Mortgage
Loan
DEBIT
D
CREDIT
Debtors
Money is owed to the business from a
person who buys on account/credit
(Affects a business’s liabilities)
E
Expenses
Rent expense
Electricity
Water
Stationery
Salary
A
D
L
Personal Use
eg. Owner takes trading stock for
personal use.
Liabilities
Bond / Mortgage
Loan
I
Income
Current Income
Sales
Rent Income
Interest Received
Vehicle
Land & Buildings
Computers
Drawings
Creditors
Business owes money to another
business that was bought on credit
(Affects a business’s liabilities)
Wages
Maintenance
Repairs
Interest Paid
Consumables
Assets
Bank
Equipment
Trading Stock
Machinery
C
C
Capital
Money used to start/maintain a business
7
AFFECTS OF THE ACCOUNTING EQUATION
Steps:
1. Identify the two accounts
2. Identify the asset
3. Is the asset going up (debit) or down (credit)
4. Fill the asset into the correct account column (Debit OR Credit)
5. Fill in the other account column
6. Fill in the asset column (asset going up +, asset going down -)
7. The other account, which column does it belong in? A? L? OE?
ACTIVITY 1
•
K. Smith deposited R15 000 into the business as capital contribution
•
The business made R700 from services rendered
•
Paid off a loan to the amount of R400
•
Paid salaries to the workers to the value of R1500
•
Received a new loan to the value of R10 000
•
Paid R200 to the municipality for electricity
•
Received R600 for offering a service
Journal
Account
Debited
Account
Credited
Asset
OE
Liabilities
8
Activity 2
a) P Mhlantla paid R150 000 into the business bank account as
capital contribution
b) Sparks’ Store sold R650 worth of merchandise.
c) P Mhlantla took trading stocking to the value of R1200 for personal
use.
d) Sparks’s Store paid the municipality R190 for electricity and water
e) The business bought R3000 worth of stationery
f) Sparks store bought a new business vehicle to the value of
R400 000
g) The business made R650 from services rendered.
h) P Mhlantla took R450 worth of trading stock for his personal use
i) The business bought equipment to the value of R9000
j) The business bought trading stock for R90 000.
k) The business received money from rent of property, tenant paid
R2500.
l) Business paid rent to owner for R4500
Journal ACCOUNT
DEBIT
ACCOUNT
CREDIT
Assets
Steps:
1. Identify the two accounts
2.
Identify the asset
3.
Is the asset going up
(debit) or down (credit)
4.
Fill the asset into the
correct account column
(Debit OR Credit)
5.
Fill in the other account
column
6.
Fill in the asset column
(asset going up +, asset
going down -)
7.
The other account, which
column does it belong in?
A? L? OE?
Owner’s
Equity
Liabilities
A
B
C
D
E
F
G
H
I
J
K
L
9
ACTIVITY 3
a) H Reen, owner of Aunty Holly’s Bakery, deposited R240 000 directly
into the bank account as her capital contribution
b) Cash sales worth R200 for cakes
c) Paid R9000 for rent via EFT
d) Paid salaries to staff via EFT worth R6500
e) Sales of breads to the value of R100. Customer paid my debit card.
f) Paid R2150 to the municipality for electricity via internet banking
g) Bought a new oven for R8600 via EFT
h) Cash sales worth R300.
i) Received R1600 for rent of a store room. Received payment via
EFT
j) H Reen took trading stock worth R240 for personal use.
k) Bought stationery worth R475 and paid via internet banking
Journal
Source
Document
Account
DEBIT
Account
CREDIT
Assets
Steps:
1. Identify the two
accounts
2. Identify the asset
3. Is the asset going up
(debit) or down (credit)
4. Fill the asset into the
correct account column
(Debit OR Credit)
5. Fill in the other account
column
6. Fill in the asset column
(asset going up +,
asset going down -)
7. The other account,
which column does it
belong in? A? L? OE?
Owner’s
Equity
Liabilities
a)
b)
c)
d)
e)
f)
g)
h)
i)
J)
k)
l)
REMEMBER:
Journal
If the business RECEIVES money, it goes into the CRJ (Cash Receipts Journal)
If the business PAYS money, it goes into the CPJ (Cash Payments Journal)
Source Documents
Cash Register
Debit / Credit Card
EFT / Internet banking / Direct
deposit
Interest
Loan
Deposit money at bank
CRJ (Receiving Money)
Till Slip / Cash Register Roll (CRR)
Till Slip / Cash Register Roll (CRR)
CPJ (Payments)
Till Slip / Cash Register Roll (CRR)
Till Slip / Cash Register Roll (CRR)
Bank Statement (B/S)
Bank Statement (B/S)
Bank Statement (B/S)
Bank Statement (B/S)
Receipt (REC)
Bank Statement (B/S)
Bank Statement (B/S)
Deposit Slip
10
ACCOUNTING CYCLE
1.Transactions
Financial
Statements
2. Source
Document
Trial Balance
3. Subsidiary
journals
General
Ledger
11
CRJ – CASH RECEIPTS JOURNAL
CRJ – ACTIVITY 1
Transactions for April 20.2
Using the template provided, complete the Cash Receipts Journal for Watch it DVD Hire for
April 20.2
4
The owner, Mr Vue, deposited R5000 directly into the business as his capital
contribution.
10
Cash of R450 was received into the cash register from various customers hiring DVDs.
15
Mr Sly paid R200 with his debit card in respect of a month’s DVD hire contact.
20
Action Movies Limited paid R300 by EFT into the business bank account as payment for
rent.
30
An amount of R80 interest was deposited directly into the bank account by Giant Bank.
CASH RECEIPTS JOURNAL OF____________________________________________________
ANALYSIS
SUNDRY ACCOUNTS
CURRENT
DOC. DAY
DETAILS
OF
FOL. RECEIPTS
BANK
INCOME AMOUNT FOL.
DETAILS
12
CRJ – ACTIVITY 2
Using the template provided, complete the Cash Receipts Journal for Flair Florists for May
20.4.
Transactions for May 20.4
1
R10 000 was deposited into the bank account by Gold and Silver Bank in the form of a
loan. Receipt number 51 was issued.
4
Cash register amounted for R450 for services provided.
6
Cash register showed R800 for services provided.
6
The owner, Busi Nkosi, deposited R2000 into the bank account as capital contribution.
15
A customer, Lucy Fairhead, paid R500 by electronic funds transfer for services
rendered.
CASH RECEIPTS JOURNAL OF ____________________________________________________
ANALYSIS
SUNDRY ACCOUNTS
CURRENT
DOC. DAY
DETAILS
OF
FOL. RECEIPTS
BANK
INCOME AMOUNT FOL.
DETAILS
13
CRJ – ACTIVITY 3
Using the template provided, complete the Cash Receipts Journal for Dizzy Dancing, a dance
studio, for July 20.9.
Transactions for July 20.9
10
Five students paid R200 each for dance classes for the month, Receipt number 501 to
505 were issued.
17
Received R1000 via EFT from Get Active gym for a dance workshop.
24
Received R200 via internet banking from M Jackson for dance classes.
26
Received R2300 via EFT for rent of a dance room from Dance Divas.
31
Received R50 interest deposited directly into the bank account by ABC Bank.
CASH RECEIPTS JOURNAL OF ____________________________________________________
ANALYSIS
SUNDRY ACCOUNTS
CURRENT
DOC. DAY
DETAILS
OF
FOL. RECEIPTS
BANK
INCOME AMOUNT FOL.
DETAILS
14
CRJ – ACTIVITY 4
Using the template provided, complete the Cash Receipts Journal for Priscilla’s Pet Parlour
for June 20.7.
Transactions for June 20.7
5
Cash register takings of service fees, R6500
12
Cash register takings of service fees, R3200
19
Direct deposit into the bank account of R500 from C de Villiers in payment of her
account.
25
R5000 received from the owner, Priscilla Poodle, as a capital contribution. Receipt 161
was issued.
30
R80 interest received into the bank account from Glass Bank
30
R900 received via EFT for services.
CASH RECEIPTS JOURNAL OF ____________________________________________________
ANALYSIS
SUNDRY ACCOUNTS
CURRENT
DOC. DAY
DETAILS
OF
FOL. RECEIPTS
BANK
INCOME AMOUNT FOL.
DETAILS
15
CRJ – ACTIVITY 5
Using the template provided, complete the Cash Receipts Journal for Basic Bookkeeping for
June 20.7.
Transactions for June 20.7
1
R10 000 received from the owner, B Brown, to increase her capital contribution. Receipt
67 was issued.
3
R2500 received via internet banking for bookkeeping services provided to Get Rich
Quick car dealers.
7
R4000 received via EFT from Freddy’s Fast Foods for bookkeeping serviced
provided.
7
R1000 cash received from Sweet Treats, a cupcake business, in payment of services.
10
R5000 received from ABC bank in the form of a loan
14
R7000 received from Accurate Accounts for rent of a property. Paid via EFT
CASH RECEIPTS JOURNAL OF ____________________________________________________
ANALYSIS
SUNDRY ACCOUNTS
CURRENT
DOC. DAY
DETAILS
OF
FOL. RECEIPTS
BANK
INCOME AMOUNT FOL.
DETAILS
16
CRJ – ACTIVITY 6
Using the template provided, complete the Cash Receipts Journal for Ms H Shabalala, who
opened his own recycling business, for month end Oct 2.14
Transactions for October 2.14
1
Ms H Shabalala deposited R80 000 into the bank account of the business as her capital
contribution. The business issued a receipt 001.
8
According to the Bash Register Roll, the business received R20 000 for services
rendered.
Mr Peters paid the business R6 500 for services rendered via EFT.
14
Fees received for services rendered according to the Cash Register Roll amounted to
R13 000
Mr H Shabalala invested another R25 000 as part of her capital contribution and the
business issues her with receipt number 002.
21
The business received R19 000 according to the Cash Register Roll for services
rendered
22
Mr S Jabulani paid the business R7 000 via EFT for services rendered.
29
The Cash Register Roll showed a total of R14 000 for services rendered.
CASH RECEIPTS JOURNAL OF ____________________________________________________
ANALYSIS
SUNDRY ACCOUNTS
CURRENT
DOC. DAY
DETAILS
OF
FOL. RECEIPTS
BANK
INCOME AMOUNT FOL.
DETAILS
17
CRJ – ACTIVITY 7
Using the template provided, complete the Cash Receipts Journal for Mr D Kiwi for April 2.14.
Transactions for April 2.14
1
The owner, Mr D Kiwi, directly deposited R150 000 as his capital contribution into the
bank account of the business.
The Cash Register Roll had a total of R22 000 for services rendered.
11
Ms A Pillay paid the business R11 500 via EFT for services rendered.
According to the Cash Register Roll, a total of R50 000 had been received for serviced
rendered.
15
Mr D Kiwi increased his capital contribution by another R20 000. The business issues
him with a receipt.
21
The Cash Register Roll showed a total of R29 000 for services rendered.
CASH RECEIPTS JOURNAL OF ___________________________________________________
ANALYSIS
SUNDRY ACCOUNTS
CURRENT
DOC. DAY
DETAILS
OF
FOL. RECEIPTS
BANK
INCOME AMOUNT FOL.
DETAILS
18
CRJ – ACTIVITY 8
Using the template provided, complete the Cash Receipts Journal for Mrs K Shabangu, who
owns her own management company named Future Management, for month end Jan 2.14.
Transactions for January 2.14
2
The owner, Mrs K Shabangu, deposited R300 000 as her capital contribution directly
into the bank account of the business.
9
The Cash Register Roll had a total of R49 000 for services rendered.
Ms Gunther paid the business via EFT for services rendered to her to the amount of
R25 000.
14
The Cash register Roll had a total of R90 000 for services rendered.
Mrs K Shabangu increased her capital contribution by another R120 000. The business
issued her with a receipt.
20
Mr Evans paid the business for services rendered via EFT to the amount of R104 000.
CASH RECEIPTS JOURNAL OF ____________________________________________________
ANALYSIS
SUNDRY ACCOUNTS
CURRENT
DOC. DAY
DETAILS
OF
FOL. RECEIPTS
BANK
INCOME AMOUNT FOL.
DETAILS
19
CRJ – ACTIVITY 9
Using the template provided, complete the Cash Receipts Journal for Ms Mkwanazi who owns
her own scrapbooking company named Immortalise Your Memories for the month end May
2.18.
Transactions for May 2.18
1
The owner, Ms Mkwanazi, deposited R30 000 as her capital contribution into the bank
account of the business. The business issues her with receipt number 01.
7
The Cash Register Roll had a total of R12 000 for services rendered.
Mr Janet paid the business via EFT for services rendered to him for the amount of
R2 000.
15
The Cash Register Roll had a total of R4 500 for services rendered.
22
Ms Trim paid the business via EFT for services rendered
The total of the Cash Register Roll for services rendered was R6 400
CASH RECEIPTS JOURNAL OF
____________________________________________________
ANALYSIS
SUNDRY ACCOUNTS
CURRENT
DOC. DAY
DETAILS
OF
FOL. RECEIPTS
BANK
INCOME AMOUNT FOL.
DETAILS
20
CRJ – ACTIVITY 10
Using the template provided, complete the Cash Receipts Journal for J Struben the month end
July 2.18.
Transactions for July 2.18
1
Mr J Struben deposited R95 000 into the bank account of the business as his capital
contribution. The business issued him with receipt 01.
8
According to the Cash Register Roll, the business received R17 000 for services
rendered.
Mr E Solomon paid the business R4 200 for services rendered and paid via EFT
14
Fees received for services rendered according to the Cash Register Roll totalled
R21 000
Mr J Struben invested another R30 000 as part of his capital contribution and the
business issues him with receipt.
21
The business received R45 000 according to the Cash Register Roll for services
rendered.
26
Ms R Powell paid the business R3 300 via EFT for services rendered.
29
The Cash Register Roll showed a total of R29 000 for services rendered.
30
The business received cash from E Samuels for rent of part of a building. The rent was
R7 500.
CASH RECEIPTS JOURNAL OF ____________________________________________________
ANALYSIS
SUNDRY ACCOUNTS
CURRENT
DOC. DAY
DETAILS
OF
FOL. RECEIPTS
BANK
INCOME AMOUNT FOL.
DETAILS
21
CPJ - CASH PAYMENT JOURNAL
CPJ – ACTIVITY 1
Using the template provided, complete the Cash Payments Journal for AB Legal Services for
month ended April 2.14.
Open up the following columns: Bank, Stationery, Wages and Sundry Account
Transactions for April 2.14
1
Issued payment via EFT to the owner of the building, Mrs Pretorius, for the monthly rent
of R10 000
Stationery purchased from XYZ Stationers of R3 000
5
Paid via EFT for wages of R7 000
12
Paid KIA Motors R40 000 for a business vehicle. Paid via internet banking.
CASH PAYMENTS JOURNAL OF _______________________________________________
SUNDRY
ACCOUNTS
DOC. DAY
DETAILS
FOL.
BANK
AMOUNT FOL.
DETAILS
22
CPJ – ACTIVITY 2
Using the template provided, complete the Cash Payments Journal for P van Jaarsveld, who
opened her own coffee shop, for month ended November 2.14.
Open up the following columns: Bank, Stationery, Equipment, Sundry Account
Transactions for November 2.14
1
P van Jaarsveld paid rent of the building via EFT to Mr Bull. Paid R8 000
8
Paid Municipality for water and electricity, R2 000, via EFT.
Paid K Williams R5 0000 via debit card for repairs.
14
Paid PP Stationers for stationery purchased to the amount of R500.
Bought equipment of R7 500 via credit card
21
Paid for wages, R4 500, via EFT
CASH PAYMENTS JOURNAL OF _______________________________________________
SUNDRY
ACCOUNTS
DOC. DAY
DETAILS
FOL.
BANK
AMOUNT FOL.
DETAILS
23
CPJ – ACTIVITY 3
Using the template provided, complete the Cash Payments Journal for Ms S Kumalo for month
ended January 2.14.
Open up the following columns: Bank, Materials, Wages and Sundry Account
Transactions for January 2.14
1
The owner, Ms S Kumalo, paid the owner of the building, Mr Botha, R15 000 for rent of
part of the building. Paid via EFT
Purchased materials from HH Hardware. Paid R16 000 via debit card
11
Paid AA Stationers for stationery purchased. Paid R1 500 cash.
Issued EFT payment to D Hill for repairs made to the shop of R3 000
Paid BIG Hardware for materials purchased and paid R4 000 via EFT
15
Paid wages of R6 500 via EFT
28
Paid the manager, H Venter, his salary of R18 000 and paid via EFT
Paid for wages of R6 500 via EFT
CASH PAYMENTS JOURNAL OF _______________________________________________
SUNDRY
ACCOUNTS
DOC. DAY
DETAILS
FOL.
BANK
AMOUNT FOL.
DETAILS
24
CPJ – ACTIVITY 4
Using the template provided, complete the Cash Payments Journal for Mr Bird who owns an
import and export shop called Shop Till You Drop, for month ended February 2.14.
Open up the following columns: Bank, Wages, Materials, Sundry Account
Transactions for February 2.14
1
The owner, Mr Bird, paid the owner of the building, Ms Ngcobo, R11 000 for rent of the
building. Paid via EFT
Purchased materials from Importers4All. Paid R5 500 via credit card.
10
Paid Stad Stationers for stationery purchased. R900 cash.
Materials purchased from N Lauda via debit card for R2 500
Paid B&B for repairs made to the building to the value of R12 000. Paid via internet
banking.
13
Paid for wages, R2 800 via EFT
26
Paid the manager, L Jantjes, his salary of R7 300, via EFT.
Paid for wages of R2 800 via EFT.
CASH PAYMENTS JOURNAL OF _______________________________________________
SUNDRY
ACCOUNTS
DOC. DAY
DETAILS
FOL.
BANK
AMOUNT FOL.
DETAILS
25
CPJ – ACTIVITY 5
Using the template provided, complete the Cash Payments Journal for Mr Sharp for his own
private surgery, for June 20.14.
Open up the following columns: Bank, Wages, Consumables, Sundry Account
Transactions for June 2.14
1
The owner, Mr Sharp, paid the owner of the building, Mr Jacob, R6 700 for rent of a
building. Paid via EFT
Purchased consumables from SurgeonsRUs via debit card. Paid R15 000.
8
Paid Cottons for consumables purchased for R8 700. Paid using credit card.
Paid KK Stationers for stationery purchased. Paid cash for R500.
Paid R3 000 for wages via EFT.
17
Paid R3 000 for wages via EFT.
27
Paid the secretary, A Lucky, her salary of R5 000, via EFT.
Paid R3 000 for wages via EFT.
CASH PAYMENTS JOURNAL OF _______________________________________________
SUNDRY
ACCOUNTS
DOC. DAY
DETAILS
FOL.
BANK
AMOUNT FOL.
DETAILS
26
COMBINE CRJ & CPJ
CRJ & CPJ – ACTIVITY 1
Enter the following transactions into the Cash Receipts Journal and the Cash Payment Journal
of Ms H Moolla who started her own organic shampoo and hairdresser shop, Organo Hair, for
the month ended February 2.14.
All columns should be added up and the totals should be written down in each column at the
end of the moth Make sure that all columns balance at the end of the month.
CRJ: Analysis of receipts, Bank, Current Income, Sundry Account
CPJ: Bank, Stationery, Materials, Wages, Sundry Account
Transactions for February 2.14
1
Ms H Moolla deposited R150 000 into the bank account of the business as her capital
contribution. The business issued her with receipt 01.
The owner, Ms H Moolla, paid the owner of the building, Mr Hunter, R15 000 for rent of
part of the building. Paid via EFT
Purchased materials from SAEquipment. Paid R12 000 via EFT
8
According the to Cash Register Roll, the business received R4 000 for services
rendered.
Mr D Steyn paid the business R1 200 for services rendered and paid cash.
11
Paid Gary’s Stationers for stationery of R800 via EFT
Paid B Els for repairs made to the shop of R2 000 via internet banking
Paid ES Hardware for materials purchased and paid R9 000 via debit card
14
Fees received for services rendered, according to the Cash Register roll, totalled R9000
Ms H Moolla invested another R50 000 as part of her capital contribution and the
business issued her with a receipt.
15
Paid wages of R15 000 in cash.
21
Fees received for services rendered, according to the Cash Register Roll, were R5 500.
Purchased Material from W Parnell for R2 000 and paid via credit card.
28
Paid the manager, J Strauss, his salary of R16 000, via internet banking.
Paid wages of R15 000 via EFT.
27
CASH RECEIPTS JOURNAL OF ____________________________________________________
ANALYSIS
SUNDRY ACCOUNTS
CURRENT
DOC. DAY
DETAILS
OF
FOL. RECEIPTS
BANK
INCOME AMOUNT FOL.
DETAILS
CASH PAYMENTS JOURNAL OF _______________________________________________
SUNDRY
ACCOUNTS
DOC. DAY
DETAILS
FOL.
BANK
AMOUNT FOL.
DETAILS
28
CRJ & CPJ – ACTIVITY 2
Enter the following transactions into the Cash Receipts Journal and the Cash Payment Journal
of Mr B Khune who owns his own furniture restoration business, FabFurniture, for month end
August 2.19
All columns should be added up and the totals should be written down in each column at the
end of the moth Make sure that all columns balance at the end of the month.
CRJ: Analysis of receipts, Bank, Current Income, Sundry Account
CPJ: Bank, Equipment, Consumables, Wages, Sundry Account
Transactions for August 2.19
1
Mr B Khune deposited R100 000 into the bank account of the business as his capital
contribution. The business issued him with receipt 78.
Mr P Khune paid the owner of the building, Ms du Randt, R4 000 for rental of the
building and paid via EFT.
Purchased consumables from Derek’s Shoppe via EFT, R12 000.
According to the Cash Register Roll, the business received R59 000 for services
rendered.
Mr C Cullinan paid the business R31 500 for services rendered. Paid via EFT.
10
Paid JD Eden for equipment purchased. Paid R2 300 via EFT.
Paid CC Furniture for consumable purchased for the shop for R5 000 via credit card.
Paid R Bobby for materials purchased and paid R500. Paid via internet banking.
16
Paid wages of R6 000 in cash.
19
Fees received for services rendered, according to the Cash Register Roll, R28 000.
Mr B Khune invested another R65 000 as part of his capital contribution and the
business issued him with a receipt.
24
Fees received for services rendered, according to the Cash Register Roll, R42 000.
Purchased consumables from G Smith for R60 000 and paid via debit card.
29
Paid cash for wages of R6 000.
Paid the manager, A Bill, hi salary of R9 000 via EFT.
29
CASH RECEIPTS JOURNAL OF ____________________________________________________
ANALYSIS
SUNDRY ACCOUNTS
CURRENT
DOC. DAY
DETAILS
OF
FOL. RECEIPTS
BANK
INCOME AMOUNT FOL.
DETAILS
CASH PAYMENTS JOURNAL OF _______________________________________________
SUNDRY
ACCOUNTS
DOC. DAY
DETAILS
FOL.
BANK
AMOUNT FOL.
DETAILS
30
CRJ & CPJ – ACTIVITY 3
Enter the following transactions into the Cash Receipts Journal and the Cash Payment Journal
of Mr J du Plessis, who owns his own glass recycling business, EconoGlass, for month end
December 2.19
All columns should be added up and the totals should be written down in each column at the
end of the moth Make sure that all columns balance at the end of the month.
CRJ: Analysis of receipts, Bank, Current Income, Sundry Account
CPJ: Bank, Equipment, Consumables, Wages, Sundry Account
Transactions for December 2.19
1
Mr J du Plessis deposited R500 000 into the bank account of the business as his capital
contribution. Issued receipt 01.
The owner, Mr J du Plessis, paid the owner of the building, Ms Naidoo, R7 000 for rental
of part of the building and paid via EFT.
Purchased consumable from KK Works. Paid R85 000 via EFT.
6
According to the Cash Register Roll, the business received R60 000 for services
rendered.
Mr D Steyn paid cash to the business R1 200 for services rendered.
10
Paid Earthworks for equipment purchased totalling R8 500 via EFT.
Paid JJ Daniels for consumables purchased from the shop of R20 000. Paid via debit
card.
Paid R Ricky for materials purchased and paid R100 000 via EFT.
16
Paid wages of R70 000 via EFT
19
Fees received for services rendered, according to the Cash Register Roll, amounted to
R56 000.
Mr J du Plessis invested another R250 000 as part of his capital contribution and the
business issued him with a receipt.
24
Fees received for services rendered, according to the Cash Register Roll, totalled
R22 000.
Purchased consumables from H Gibb for R60 000 and paid via debit card.
31
CASH RECEIPTS JOURNAL OF ____________________________________________________
ANALYSIS
SUNDRY ACCOUNTS
CURRENT
DOC. DAY
DETAILS
OF
FOL. RECEIPTS
BANK
INCOME AMOUNT FOL.
DETAILS
CASH PAYMENTS JOURNAL OF _______________________________________________
SUNDRY
ACCOUNTS
DOC. DAY
DETAILS
FOL.
BANK
AMOUNT FOL.
DETAILS
32
GENERAL LEDGER
GL – ACTIVITY 1
Using the information below to complete the following general ledger accounts for July 2.18 for
Total Sports:
Note: All accounts must be closed off properly at the end of the month.
Cash Receipts Journal (CRJ6):
Cash Payments Journal (CPJ6):
Bank
Current Income
Equipment
Bank
Equipment
Trading Stock
Wages
Date
Day
Details
R36 000
R24 000
R12 000
Fol
Amount
Date
R15 700
R 3000
R10 500
R2 200
Day
Details
Fol
Amount
BALANCE SHEET ACCOUNTS SECTION
BANK
B1
EQUIPMENT
B2
TRADING STOCK
B3
NOMINAL SHEET ACCOUNTS SECTION
CURRENT INCOME
WAGES
N1
N2
33
GL – ACTIVITY 2
Using the information below to complete the following General ledger accounts for January
2.18 for Newton Park Spar:
Note: All accounts must be closed off properly at the end of the month.
The following balances (amongst others) appeared in the books of Newton Park Spar on 1 January
2018:
Trading Stock
R9 200
Bank (favourable)
R14 000
Favourable means positive
Extracted Totals of Journals on 31 January 2018:
Cash Receipts Journal (CRJ16):
Cash Payments Journal (CPJ16):
Bank
R31 500
Bank
R13 500
Current Income
R22 000
Trading Stock
R11 500
Rent Income
R 7 500
Water & Electricity
R2 000
Date
Day
Details
Fol
Amount
Date
Day
Details
BANK
TRADING STOCK
Fol
Amount
B1
B2
NOMINAL SHEET ACCOUNTS SECTION
CURRENT INCOME
RENT INCOME
WATER & ELECTRICITY
N1
N2
N3
34
AOEL, CRJ, CPJ and GL
EXERCISE 1:
Read the following transaction and complete a Cash Receipts Journal and a Cash Payments
Journal for Tracy Victor. Nail Salon. The Salon is called Tracy V Nail Salon.
1. Accounting equation
2. Cash Receipts Journal should have the following columns: analysis or receipts, bank,
Current Income and Sundry account.
3. Cash Payments Journal should have the following columns: bank, stationery, wages and
Sundry Account.
4. Post from the journals to the general ledger.
Transactions for November 2015
1
Paid cash of R200 to SGA stationers to pay for stationery.
4
The owner, Tracy Victor, deposited R50 000 directly into the business bank
account as her capital contribution.
5
Purchased Equipment from Afro Stores and paid by credit card, R2 800
7
Paid the cleaners wages, R1 500, via EFT.
9
Cash received for services rendered, R5 000.
14
Paid the employees’ wages, R1 700, cash
18
Received payment from J. Smith for rent of R2 000 via EFT.
25
Bought a vehicle from GM Stores and paid by EFT, R30 000.
27
Cash received for services rendered, R1 700.
Received R1000, from Peter Pott for the sale of a chair. Peter paid by credit card.
28
Paid for Tracy V’s doctor’s bill, R800 using a debit card
30
Paid the salary of manager, Jason Reid, by internet banking for R10 000.
35
AFFECTS OF THE ACCOUNTING EQUATION
Journal
Source
Document
Account
DEBIT
Account
CREDIT
Assets
Owner’s
Equity
Liabilities
36
CASH RECEIPTS JOURNAL OF ____________________________________________________
ANALYSIS
SUNDRY ACCOUNTS
CURRENT
DOC. DAY
DETAILS
OF
FOL. RECEIPTS
BANK
INCOME AMOUNT FOL.
DETAILS
CASH PAYMENTS JOURNAL OF _______________________________________________
SUNDRY
ACCOUNTS
DOC. DAY
DETAILS
FOL.
BANK
AMOUNT FOL.
DETAILS
37
General Ledger of _______________________
Dr
Date
Day
Details
Fol
Amount
Date
Day
Details
Fol
Cr
Amount
BALANCE SHEET ACCOUNTS SECTION
38
Dr
Date
Day
Details
Fol
Amount
Date
Day
Details
Fol
Cr
Amount
NOMINAL SHEET ACCOUNTS SECTION
39
EXERCISE 2:
Read the following transaction and complete a Cash Receipts Journal and a Cash Payments
Journal for ComputerFIX, a computer Repair store, Thandi Mdini is the owner.
1. Accounting equation
2. Cash Receipts Journal should have the following columns: analysis or receipts, bank,
Current Income and Sundry account.
3. Cash Payments Journal should have the following columns: bank, equipment, electricity,
wages and Sundry Account.
4. Post from the journals to the general ledger.
ComputerFIX had balances on the 1st March 2018
Capital R 50 000, Equipment R 10 000, Vehicles R20 000, Bank R55 000, Services
Rendered R 40 000, Wages R 5 000
Transactions for March 2018
1
The owner, Thandi Mdini, deposited R500 000 into the current banking account, as
capital. Issued receipt.
5
Purchased equipment form Tech Stores and paid by debit card, R36 000
7
Purchased spare parts (Material Cost) from Hennie Suppliers for R15 000 and paid EFT.
8
Paid Progress Stationers for stationery purchased. R650 cash.
12
Services rendered for cash R18 000. According to the Cash Register Roll.
19
Purchased a vehicle from Desai Garage and paid by EFT, R180 000.
19
Paid wages, R4 500, via EFT.
23
R12 000 was drawn by the owner, Thandi Mdini for personal use, via EFT
25
Issued cash payment to Super Nails for rent for the month R8 500.
Received R 2 500 rent from tenant, VIRTUALLY U, that rents a room in the office. Paid
via internet banking.
31
Paid Joburg City Municipality for electricity, R3 500 and rates, R 2 400. Via EFT
40
AFFECTS OF THE ACCOUNTING EQUATION
Journal
Source
Document
Account
DEBIT
Account
CREDIT
Assets
Owner’s
Equity
Liabilities
41
CASH RECEIPTS JOURNAL OF ____________________________________________________
ANALYSIS
SUNDRY ACCOUNTS
CURRENT
DOC. DAY
DETAILS
OF
FOL. RECEIPTS
BANK
INCOME AMOUNT FOL.
DETAILS
CASH PAYMENTS JOURNAL OF _______________________________________________
SUNDRY
ACCOUNTS
DOC. DAY
DETAILS
FOL.
BANK
AMOUNT FOL.
DETAILS
42
General Ledger of _______________________
Dr
Date
Day
Details
Fol
Amount
Date
Day
Details
Fol
Cr
Amount
BALANCE SHEET ACCOUNTS SECTION
43
Dr
Date
Day
Details
Fol
Amount
Date
Day
Details
Fol
Cr
Amount
NOMINAL SHEET ACCOUNTS SECTION
44
EXERCISE 3:
Read the following transaction and complete a Cash Receipts Journal and a Cash Payments
Journal for Hulley Super Motors Repairs, a car repair sho. J Hulley is the owner.
1. Accounting equation
2. Cash Receipts Journal should have the following columns: Analysis or Receipts, Bank,
Current Income and Sundry account.
3. Cash Payments Journal should have the following columns: Bank, Stationery, Wages,
Water & Electricity and Sundry Account.
4. Post from the journals to the general ledger.
Hulley Super Motors Repairs had balances on the 1st October 2013
Capital R 100000, Equipment R 30 000, Vehicles R50 000, Bank R35 000, Services
Rendered R 10 000, Rent Income R10 000 Wages R 5000
Transactions for October 2.13
1
The owner, J. Hulley, invested R600 000 into her business Hulley Super Motor Repair.
Issued receipt no. 51.
Services Rendered as per CRR for cash, R16 800.
4
Purchased laptop from MM Connections and paid by credit card, R18 000.
7
Purchased consumables from Mandla Stores for R14 000 less 10% trade discount and
paid by debit card.
13
Paid for wages, R2 800, using cash.
13
Purchased packing material for R400 from Eveline Papers and paid by EFT.
16
Purchased a new vehicle from Evan Motors and paid by internet banking, R340 000
19
Paid Telkom for the owners personal telephone account, R650.
22
Paid wages, R2 800, via EFT
22
Purchased consumables Mandla Stores for R24 000. Paid using credit card.
22
Cash received R6 000 from Cash Register Roll.
25
Received cash as per CRR for services rendered, R32 000
25
Received payment from Winnie Gifts for equipment sold, cash R12 000.
31
Paid Joburg City Municipality for water and electricity R2 400 and rates and taxes
R1 100. Paid via EFT
31
Paid the salary of the manager, J Matata, R15 000, via internet banking
45
AFFECTS OF THE ACCOUNTING EQUATION
Journal
Source
Document
Account
DEBIT
Account
CREDIT
Assets
Owner’s
Equity
Liabilities
46
CASH RECEIPTS JOURNAL OF ____________________________________________________
ANALYSIS
SUNDRY ACCOUNTS
CURRENT
DOC. DAY
DETAILS
OF
FOL. RECEIPTS
BANK
INCOME AMOUNT FOL.
DETAILS
CASH PAYMENTS JOURNAL OF _______________________________________________
SUNDRY
ACCOUNTS
DOC. DAY
DETAILS
FOL.
BANK
AMOUNT FOL.
DETAILS
47
General Ledger of _______________________
Dr
Date
Day
Details
Fol
Amount
Date
Day
Details
Fol
Cr
Amount
BALANCE SHEET ACCOUNTS SECTION
48
Dr
Date
Day
Details
Fol
Amount
Date
Day
Details
Fol
Cr
Amount
NOMINAL SHEET ACCOUNTS SECTION
49