MODULE 6 GENERAL JOURNAL NOTE TO THE TEACHER: The purpose of this series of activities is for the learners to determine the double entries that are needed for journal entries. While it would be best if all learners engaged in all 5 activities, you can split them between the groups if you are short of time. The learners are to come up with the necessary entries. You are not to assist them at this stage. The report back, however, is critical to ensure that all learners understand. Allow different groups to report back on the different activities and make the necessary entries. You can even ask different groups to ‘crit’ each other. At this stage, the emphasis is on determining the double entry for the general ledger and the necessary entry(ies) for the debtors ledger. Do not worry about the names of the accounts. This can be sorted out later. The learners are also encouraged to draw up rough T-accounts, concentrating on the double entry. Make sure all learners have the necessary columns for the accounting equation. Following this task, you can lead them into the General Journal by highlighting the roles of the different journals already learnt and that those entries do not fit in. Hence the need for a new journal. TASK 6.1 Source documents/Transactions 6.1.1 Learners are to complete the following table. Various answers are acceptable. Journal Source document Examples of entries CRJ Cash Register Tape (CRT) 1. Cash sales Receipt 2. Received rent Bank Statement (B/S) 3. Interest received Receipt 4. Capital deposited Receipt 5. Commission received Receipt 6. Payment received from a debtor, etc. CPJ Cheque counterfoil (C/C) 1. Trading stock bought and paid by cheque C/C 2. Paid rent C/C 3. Paid creditor’s account Direct deposit 4. Paid salaries B/S 5. Bank charges, etc. PCJ Petty Cash Voucher (PCV) 1. Bought stamps PCV 2. Bought milk PCV 3. Paid casual wages PCV 4. Bought stationery PCV 5. Bought refreshments, etc. DJ Invoice (Inv) 1. Goods sold on credit DAJ Credit Note (C/N) 1. Goods returned by debtor C/N 2. Debtor was given an allowance CJ Invoice 1. Trading stock bought on credit Invoice 2. Stationery bought on credit Invoice 3. Equipment bought on credit Invoice 4. Repairs done on credit Invoice 5. Petrol bought on credit, etc. CAJ Debit Note (D/N) 1. Trading stock returned D/N 2. Stationery returned D/N 3. Claimed a reduction in price of equipment D/N 4. Claimed a reduction in charges for repairs D/N 5. Was overcharged for the petrol and claimed a reduction, etc. 6.1.2 Learners are to come up with as many other entries as they can and justify why they do not fit into the above journals. New Era Accounting: Grade 10 141 Teacher’s Guide TASK 6.2 Revision on journals NOTE TO THE TEACHER: This task can be used to revise the journals learnt up to this point. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Document Receipt Cash Register Tape (CRT) Receipt Bank statement Cheque counterfoil Bank statement Petty cash voucher Invoice Credit note Invoice Debit note Cheque counterfoil TASK 6.3 Journal CRJ CRJ CRJ CRJ CPJ CPJ PCJ DJ DAJ CJ CAJ CPJ Big & Tall: Transaction analysis, Equation, Ledger Learners are to complete these tasks in their groups and report back. They do not need to draw up formal ledger accounts – rough T-accounts are sufficient at this stage. The suggested answers are for your use only. 6.3.1 Dr May 1 Balance b/d DEBTORS CONTROL 1 000 Bad debts BAD DEBTS 100 Debtors control DEBTORS LEDGER: J. SMITH Date Details May 1 Balance Bad debt written off Fol b/d Account credit Bad debts Bank Debtors control (J. Smith) Bad debts recovered Bad debts recovered Cr 100 N Debit Credit 100 Account debit Dr Aug B Assets (A) -100 +100 BANK 100 BAD DEBTS RECOVERED Aug Bank DL Balance 100 - Owner’s Equity (OE) -100 +100 Liabilities (L) B Cr N 100 Note: Allow learners to come up with their own name for bad debts recovered. You might even find that some groups credit the Bad Debts account – which is not wrong as it is what we are doing. The concept of materiality, however, dictates that we draw up separate account. New Era Accounting: Grade 10 142 Teacher’s Guide 6.3.2 Dr May 1 DEBTORS CONTROL 5 000 15 Balance Interest on overdue a/c B INTEREST ON OVERDUE ACCOUNT May Debtors control DEBTORS LEDGER J. BROWN Date Details May 1 Balance Interest on overdue account Fol b/d Account credit Debtors control (J. Brown) Interest on overdue account Balance Bank Discount allowed b/d Fol b/d Debtors control (A. Jones) Debtors control (A. Jones) Bank Discount allowed New Era Accounting: Grade 10 b/d Debtors control TRADING STOCK 3 000 STATIONERY 800 143 Cr 100 20 B 100 N 20 DL Balance 120 20 100 120 Credit 100 20 Bank Discount allowed Debtors control (A. Jones) Debtors control (A. Jones) Liabilities (L) B 100 20 Account credit Total +15 Debit Account debit 1 Owner’s Equity (OE) +15 DISCOUNT ALLOWED 20 Debtors control DEBTORS LEDGER A. JONES Date Details May 1 Balance Receipt Discount allowed Cheque dishonoured Discount allowed May DL Balance 500 515 Credit Assets (A) BANK 100 Debtors control Balance 15 DEBTORS CONTROL 2 000 Bank 100 Discount allowed 20 Debtors control 6.3.4 Dr May 1 N 15 Account debit 6.3.3 Dr May 1 Debit Cr Assets (A) ±100 -20 ±100 +20 Owner’s Equity(OE) Liabilities (L) -20 +20 B Drawings Cr 200 N Drawings 50 Teacher’s Guide Dr DRAWINGS 200 50 Trading stock Stationery Account debit Account credit Drawings Drawings Trading stock Stationery 6.3.5 Dr May 1 Balance B -200 EQUIPMENT 6 000 b/d B May 1 Total Equipment b/f May 1 Balance Carriage on goods b/d TRADING STOCK 4 000 550 May 1 Total b/d Total Stationery PACKING MATERIALS b/d 300 60 1 B. JABU Date May 1 Fol b/d Fol b/d Account credit Stationery Trading stock Packing materials Debtors control (B. Jabu) Equipment Carriage on goods Stationery Debtors control (A. Jabu) 60 N N 550 N Debit Credit Debit Credit 50 Account debit TASK 6.4 Packing materials 50 Details Balance Good sold / Error corrected Cr 100 N CARRIAGE ON GOODS 550 Trading stock DEBTORS LEDGER A. JABU Date Details May 1 Balance Error corrected Liabilities (L) Stationery STATIONERY 600 100 May Owner’s Equity(OE) -200 ±50 Assets (A) Cr Assets (A) -100 +550 DL Balance 150 100 DL Balance 200 250 Owner’s Equity(OE) -100 +550 ±60 Liabilities (L) ±50 Discussion The purpose of this task is for learners to realise that the above entries cannot fit into any of the journals already learnt and listed prior to this task. New Era Accounting: Grade 10 144 Teacher’s Guide TASK 6.5 Interest calculations Required: Complete the following table by filling in the missing amount, percentage or months. Amount R 120 400 1 500 2 000 3 000 800 1 200 6 000 5 600 No. E.G. 1. 2. 3. 4. 5. 6. 7. 8. TASK 6.6 Percentage interest rate % p.a. 10 5 10 6 2.5 4 5 2.5 7.5 Period Months 3 3 2 1 4 3 2 6 5 Interest amount R 3 5 25 10 50 8 10 75 175 Journal transactions Note to the Teacher: This task will re-enforce the General Journal entries before the learner begins to write up the actual entries, NO. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. DOCUMENT Journal voucher (JV) JV JV JV JV Bank statement Bank statement Petty cash voucher Bank statement Bank statement TASK 6.7 JOURNAL GJ GJ GJ GJ GJ GJ GJ PCJ CRJ CPJ Joubert Stores: General Journal GENERAL JOURNAL OF JOUBERT STORES – AUGUST 20.1 J/V 1 2 3 4 D Details 4 F. Lourens Interest income Interest charged on overdue account at 16% p.a. 8 Bad debts J. Shadie Account written off on authorisation of owner 15 M. Roelof Interest income Interest charged on overdue account at 16% p.a. for 10 months 20 Drawings Trading stock Merchandise taken by owner for own use New Era Accounting: Grade 10 Fol Debit Credit 12 Debtors control Debit Credit 12 GJ Creditors control Debit Credit 12 128 128 45 128 45 45 144 144 145 Teacher’s Guide GENERAL JOURNAL OF JOUBERT STORES (Continued) J/V 5 6 7 8 D Details Fol 25 M. Rossouw C. Mossie G. Gudarson M. Velaphi Interest income Interest charged on overdue accounts at 16% p.a. 27 Drawings Trading stock Merchandise taken by owner for own use 28 Bad debts M. Spick K. Span R. Neat P. Tidy Bad debts written off 30 Drawings Trading stock Goods taken for own use Debit Credit 24 25 23 120 Debtors control Debit Credit 24 25 23 120 Creditors control Debit Credit 192 200 200 2 115 220 420 375 1 100 220 420 375 1 100 280 280 249 2 243 Note to Teacher: The second line of a journal entry, i.e. the credit entry may be indented as above or it may be blocked as shown below: GENERAL JOURNAL OF JOUBERT STORES – AUGUST 20.1 J/V 1 D Details Fol 4 F. Lourens Interest income Interest charged on overdue account at 16% p.a. TASK 6.8 Debit Credit 12 1 2 3 D GJ Creditors control Debit Credit 12 Palan Stores: General Journal GENERAL JOURNAL OF PALAN STORES – AUGUST 20.6 J/V Debtors control Debit Credit 12 Details 4 J. Jones Interest income Interest charged on overdue account at 16% p.a. for 6 months 6 Bad debts J. Roberts Account written off on authorisation of owner 10 Drawings Trading stock Merchandise taken by proprietor for own use New Era Accounting: Grade 10 Fol Debit Credit 20 GJ Debtors control Creditors control Debit Credit Debit Credit 20 20 678 678 678 350 350 146 Teacher’s Guide GENERAL JOURNAL OF PALAN STORES (Continued) J/V 4 5 6 D Details Fol 26 Bad debts K. Fortune M. Sebola R. Louw Accounts written off on authorisation of owner 30 Drawings Stationery Stationery taken by proprietor for own use 31 R. Moss D. Modi K. Lawson Interest income Interest charged on overdue accounts Debit Debtors control Creditors control Debit Credit Debit Credit Credit 1 054 254 456 344 254 456 344 17 17 70 50 256 70 50 256 376 396 TASK 6.9 No. 1 2 3 4 5 6 7 8 9 10 11 12 Pik Stores: General Journal Account debit Wages M. Mnchune/Debtors control Trading stock B. Paolo /Debtors control Telephone Rino Wholesalers/Creditors control Drawings M. Morton/Creditors control M. Bruno/Debtors control Repairs Trading stock Bingo Wholesalers/Creditors control TASK 6.10 1 732 Account credit Salaries M. Mchunu/Debtors control Consumable stores Sales Rates and taxes Rhino Wholesalers/Creditors control Sundry expenses Discount received J. Bruno/Debtors control Equipment GG Traders/Creditors control Bingo Stores/Creditors control NM Traders: General Journal GENERAL JOURNAL OF NM TRADERS – MAY 20.9 J/V 1 2 3 Amount 1 200 800 110 9 74 340 60 10 55 900 91 200 D Details 4 Equipment Trading stock Correction of error in posting of cheque no. 1236 8 Regent Wholesalers Regal Wholesalers Correction of error in posting invoice no. X397 12 Telephone Consumable stores Correction of error in posting of cheque no. 1245 New Era Accounting: Grade 10 Fol Debit Credit Debtors control Debit Credit GJ Creditors control Debit Credit 1 845 1 845 154 154 154 154 534 534 147 Teacher’s Guide GENERAL JOURNAL OF NM TRADERS (Continued) J/V 4 5 6 7 8 9 10 D Details 13 Trading stock Delivery charges Correction of error in posting petty cash voucher 15 L. Lane L. Lyon Correction of error in posting of invoice no. 277 17 Sales/Debtors allowances J. Jones Correction of error on invoice no. 245* 19 W. Bite B. White Correct of error in posting of C/N no. 88 21 Trading stock Drawings Correction of error in recording 27 LW Traders LW Wholesalers Correction of error in posting D/N no. 48 31 Wages Salaries Correction of error in posting from CPJ Fol Debit Credit Debtors control Debit Credit Creditors control Debit Credit 370 370 142 142 142 142 50 50 50 575 575 575 575 100 100 188 188 188 188 1 842 1 842 717 767 342 342 *Can also be entered in the DAJ New Era Accounting: Grade 10 148 Teacher’s Guide TASK 6.11 Mariam’s Supermarket: General Journal GENERAL JOURNAL OF MARIAM’S SUPERMARKET – MAY 20.8 Debtors control J/V D 1 2 Details Fol Debit Credit Debit 2 3 4 5 6 7 8 9 6 8 11 13 19 24 28 30 Drawings Trading stock Merchandise taken by proprietor for own use F. Ford Interest Income Interest charged on overdue account at 16% Bad debts W. Wilson Balance of account written off on authorisation of owner S. Sloan Discount allowed Discount cancelled on R/D cheque K. King Interest income Interest charged on overdue account at 18% p.a. Drawings Trading stock Merchandise taken by proprietor for own use Bad debts M. Moses Account written off on authorisation of owner P. Thomas T. Thomas Correction of error in posting Motor expenses Vehicles Correction of error in posting B2 B4 269 269 DL1 N7 9 N8 DL2 216 DL3 N9 13 DL4 N7 30 B2 B4 60 9 9 216 216 13 13 30 30 60 N8 DL5 150 DL6 DL7 25 N10 B3 1 480 150 150 25 25 25 1 480 77 New Era Accounting: Grade 10 Credit GJ Creditors control Debit Credit 149 391 Teacher’s Guide Document JV JV Rec Journal GJ GJ CRJ Error corrected 5 Y. Shelley Interest on overdue a/c Interest charged on overdue account 9 S. Strew S. Straw Error corrected 16 Y. Shelley Y. Shallow Details New Era Accounting: Grade 10 3 2 1 J/V D Fol 6.12.2 CORVET BUDGET STORES GENERAL JOURNAL – JULY 20.7 200 500 40 Debit 200 500 40 Credit 200 500 150 200 500 Debtors control Debit Credit 40 GJ Creditors control Debit Credit Account credit Interest on overdue account Debtors control (S. Straw) Debtors control (Y. Shelley) Debtors control (Y. Shelley) Debtors control (Y. Shallow) Bank Discount allowed Stationery Trading stock Stationery Bank Equipment Debtors control (Y. Shelley)* Debtors control (Y. Shelley) Bad debts recovered Creditors control (Wrappe Dealers) Corvet Budget Stores: Accounting equation Account debit Debtors control (Y. Shelley) Debtors control (S Strew) Bank Discount allowed 16 JV GJ Debtors control (Y. Shelley) 17 B/S CPJ Debtors control (Y. Shelley) JV GJ Debtors control (Y. Shelley) 19 JV GJ Creditors control (Nasbil) 20 JV GJ Drawings Drawings C/C CPJ Drawings 21 JV GJ Repairs 24 Rec CRJ Bank JV GJ Bad debts 28 Rec CRJ Bank 29 JV GJ Discount received *(800 + 40 – 819 – 21 + 819 + 21 + 200) x 40c 6.12.1 No. 5 9 14 TASK 6.12 -800 -646 ±416 -624 +230 -320 A= +40 ±500 ±819 -21 ±200 ±819 +21 -624 +230 -9 +21 +540 -320 ±48 -800 -646 -21 O + +40 Teacher’s Guide +9 -540 L GENERAL JOURNAL (Continued) J/V D 4 5 6 7 8 9 Details Fol Debit 17 Y. Shelley Discount allowed Discount cancelled on R/D cheque 19 Nasbill & Co. Stationery Error corrected 20 Drawings Trading stock Stationery Items taken by owner for personal use 21 Repairs Equipment Error corrected 24 Bad debt Y. Shelley Bad debt written off 29 Discount received Wrappe Dealers Error corrected Debtors control Debit Credit 21 Credit 21 Creditors control Debit Credit 21 540 540 540 448 400 48 646 646 624 624 624 9 9 9 761 1 324 540 9 6.12.3 CORVET BUDGET STORES CASH RECEIPTS JOURNAL – JULY 20.7 CRJ5 Debtors control Sundry accounts AnalyCost Doc D Details Fol sis of Bank Sales of Discount no receipts sales Receipts* allowed Amount Fol Details 08 14 Y. Shelley 819 819 819 21 24 Y. Shelley 416 416 416 09 28 N. Seedy 230 230 230 Bad debts recovered * Alternative method: Debtors control R840 CASH PAYMENTS JOURNAL FOR JULY 20.7 Doc D Details no B/S 17 Y. Shelley C 20 J Corvet ………… Fol Bank 819 800 CPJ5 Creditors control Sundry accounts Trading Debtors stock control Payments Discount Amount Fol Details received 819 800 Drawings 6.12.4 DEBTORS LEDGER: Y. SHELLEY Date Details 20.7 July 1 Balance 5 Interest on overdue account 14 Receipt Discount allowed 16 Error corrected 17 Cheque dishonoured Discount cancelled 24 Receipt Bad debt written off New Era Accounting: Grade 10 Fol Debit b/d GJ CRJ CRJ GJ CPJ GJ CRJ GJ 151 Credit 40 819 21 200 819 21 416 624 DL Balance 800 840 21 200 1 019 1 040 624 - Teacher’s Guide Transaction New Era Accounting: Grade 10 Debtors control Drawings Creditors control Trading stock Trading stock Cash float Insurance Bad debts Bank Interest expense Bank GJ PCJ GJ GJ PCJ CPJ GJ GJ CRJ CPJ CRJ 152 Debtors control CPJ DAJ 12. Restored the petty cash imprest amount by cheque 13. Allowance made to a debtor Debtor’s cheque returned by bank marked ‘r/d - insuffi14. cient funds’ 15. Cancellation of discount on a ‘r/d’ cheque 16. Owner took petty cash for his own use Equipment bought on credit from WW Stores was wrongly 17. entered as R816 instead of R618. Owner returned stock which he had previously taken for 18. his own use 19. Paid for carriage on stock purchased from petty cash 20. Cashed a cheque for cash float Insurance premium paid was mistakenly charged to re21. pairs 22. Write off the account of a credit customer 23. Received interest on fixed deposit. 24. Paid interest on loan by cheque Received a cheque from a debtor whose account was 25. previously written off Bad debts recovered Debtors control Interest income Bank Repairs Petty cash Bank Drawings Equipment Discount allowed Petty cash Bank General Ledger Account debit Account credit Trading stock Creditors control Bank Sales Cost of sales Trading stock Bank Debtors control Creditors control Discount received Debtors allowances Debtors control Trading stock Cost of sales Creditors control Trading stock Drawings Creditors control Discount allowed Debtors control Creditors control Bank Debtors control (Jane) Debtors control (Jean) Debtors control Sales Cost of sales Trading stock Petty cash Bank Debtors allowances Debtors control CPJ DJ 11. Stock sold on credit R500 (mark-up is 150%) CAJ CJ CRJ CPJ GJ DAJ 5. Stock returned by a debtor, R184 (mark-up is 60%) Stock returned to a creditor Owner’s private vehicle repaired (not yet paid for) Discount allowed to a credit customer Payment made to a credit supplier by cheque Goods sold on credit to Jane incorrectly charged to Jean CRJ CPJ 3. Payment made by a debtor by electronic transfer 4. Discount received from a supplier (creditor) 6. 7. 8. 9. 10. CRJ CJ Journal 2. Cash sales of stock R413 (mark-up 133 /3%) 1 Transaction analysis 1. Purchased stock on credit No. TASK 6.13 198 500 200 184 115 413 177 Amount Teacher’s Guide TASK 6.14 Wishtree Stores: General Journal, Transaction analysis 6.14.1 WISHTREE STORES GENERAL JOURNAL – APRIL 20.7 J/V 1 2 3 4 5 6 7 8 9 10 11 D Details Fol 1 B. Hopeful Interest on overdue acc Interest charged on overdue account at 16% p.a. for 3 months 3 Stationery Consumable stores Error corrected 8 Drawings Trading stock Consumable stores Items taken for personal use 12 V. Hupeful B. Hopeful Error corrected 13 V. Hupeful B. Hopeful Error corrected 14 Bad debts Ms Wishful Bad debts written off 20 Repairs/ Motor expenses Vehicles Error corrected 24 B. Hopeful Discount allowed Discount cancelled on R/D cheque 25 Trading stock Drawings Owner returned stock 27 J. Hapfort V. Hupeful Error corrected 28 B. Badger Wholesalers Discount received Error corrected Debit Credit 130 GJ Debtors control Creditors control Debit Credit Debit Credit 130 130 323 323 900 600 300 800 800 800 60 800 60 60 60 400 400 400 980 980 126 126 126 200 200 90 90 90 90 100 100 100 1 206 1 350 100 - 6.14.2 Date Journal 8 14 17 CPJ CRJ CRJ 18 21 CPJ DJ 24 26 CPJ CRJ General Ledger Account debit Account credit Drawings Bank Bank Debtors control Bank Debtors control Discount allowed Debtors control Equipment Bank Debtors control Sales Cost of sales Trading stock Debtors control Bank Bank Debtors control Discount allowed Debtors control New Era Accounting: Grade 10 153 Amount 500 100 2 394 126 1 999 4 320 2 880 2 394 2 500 120 Teacher’s Guide 6.14.3 Dr 20.7 Apr 20.7 Apr GENERAL LEDGER OF WISHTREE STORES NOMINAL ACCOUNTS SECTION STATIONERY 1 Total 3 Consumable stores 1 Total b/f GJ b/f 27 CONSUMABLE STORES 20.7 1 234 Apr 3 Stationery 8 Drawings 1 234 Fol Debit b/d GJ GJ GJ CRJ CRJ CPJ GJ Details Fol Balance Goods sold / error corrected Error corrected Receipt Discount allowed Error corrected b/d GJ GJ CRJ CRJ GJ TASK 6.15 Cr 490 323 813 WISHTREE STORES OF DEBTORS LEDGER B. HOPEFUL Date Details 20.7 Apr 1 Balance Interest on overdue account 12 Error corrected 13 Good returned / error 17 Receipt Discount allowed 24 Cheque dishonoured Discount cancelled V. HUPEFUL Date 20.7 Apr 1 12 13 26 N Credit N GJ GJ DL Balance 2 394 126 3 250 3 380 2 580 2 520 126 2 394 2 520 Debit Credit DL Balance 2 500 120 90 4 320 5 120 5 180 2 680 2 560 2 470 130 800 60 2 394 126 800 60 323 300 623 Jim: Advice The purpose of this task is for the learners to consider internal control measures that are needed to control the staff. Allow the learners to come up with their own suggestions but some form of division of duties should be discussed. New Era Accounting: Grade 10 154 Teacher’s Guide D Details DL1 DL3 Fol 2 700 520 400 2 400 4 200 800 Analysis of receipts 5 000 31 020 20 000* 2 700 520 400 2 400 Bank 920 520** 400** 4 7 12 14 18 21 22 24 25 28 30 2001 2002 2003 2004 D/N 2005 2006 2007 2008 2009 BS Ace Wholesalers Cash Max Wholesalers Cash S Stephen (R/D) Cash Dallas Traders OP Traders Max Wholesalers K. Kashir PQ Bank Details New Era Accounting: Grade 10 *Alternative format: 1 160 / 1 290 D Doc no CL2 CL1 DL1 CL1 Fol 4 520 B6 B8 720 3 800 Trading Stock 4 050 1 450 1 100 1 450 520 1 450 720 1 200 300 750 60 13 050 Bank CASH PAYMENTS JOURNAL – APRIL 20.4 B7/N6 75 40 35 B9 2 600 1 200* 300 1 100* 155 B9/N7 150 90 - 60 Creditors control Discount Payments received B8 B7 *If amount was given to the business then it would appear in the analysis column **Alternative format: 560 / 435 101 1 K. Kashir CRT101 6 Sales 102 9 S. Stephen 103 14 R. Rogers CRT102 16 Sales CRT103 25 Sales 104 D. Singh Doc No Debtors control Discount Receipts allowed N4 4 350 1 450 1 450 1 450 Wages N1 9 300 2 400 4 200 2 700 Sales B7 520 520 Debtors control B6/N2 6 200 1 600 2 800 1 800 Cost of sales Fol Fol 750 B2 60 N10 1 060 250 N5 Amount CRJ1 Teacher’s Guide Drawings Bank charges Stationery Details CPJ1 Details Rent income Capital Sundry accounts 800 N9 20 800 20 000 B1 Amount Sundry accounts Kashir Stores (Combined exercise): Journals, Ledgers, Debtors/Creditors List, Trial Balance KASHIR STORES CASH RECEIPTS JOURNAL – APRIL 20.4 TASK 6.16 Fol DL1 DL2 DL3 DL1 DL2 DL3 10 20 10 11 R. Rogers S. Stephen Debtor New Era Accounting: Grade 10 D C/N No. DL3 DL4 Fol DEBTORS ALLOWANCES JOURNAL – APRIL 20.4 DEBTORS JOURNAL – APRIL 20.4 Inv. No. D Debtor 1001 3 S. Stephen 1002 N. Noel 1003 R. Rogers 1004 17 S. Stephen 1005 N. Noel 1006 R. Rogers N3/B7 B6/N2 100 80 180 156 Cost of sales DAJ1 B7/N1 Debtors allowances 150 120 270 N2/B6 Sales 280 450 600 300 240 330 2 200 B6 B9 B5 50 50 Equipment B5 1 800 950 2 750 Equipment DJ1 Cost of sales 150 300 400 200 160 220 1 430 Trading stock 90 125 215 Max Wholeslaers OP Traders Max Wholesalers CL1 CL2 CL1 CREDITORS ALLOWANCES JOURNAL – APRIL 20.4 Creditors D/N no D Creditor Fol control 55 15 Max Wholesalers CL1 130 56 28 Max Wholesalers CL1 175 305 Fol B6 11 19 27 MW5354 T1575 MW5458 Creditor B9 D Inv no Trading stock 900 650 725 2 275 Creditors control 1 300 2 570 1 675 5 545 CREDITORS JOURNAL – APRIL 20.4 N5 25 Stationery & printing 25 N5 370 Stationery & printing 250 120 N8 15 Consumable stores 15 N8 150 Consumable stores 150 Sundry accounts Amount Fol Details Sundry accounts Amount Fol Details Teacher’s Guide CAJ1 CJ1 GENERAL JOURNAL – APRIL 20.4 No. D Details Fol 1 18 S Stephen Discount allowed Discount cancelled on R/D cheque 23 Bad debts G. Gansen Account written off 24 S. Stephen Interest income Interest charged on overdue account 29 Interest expense Max Wholesalers Interest charged on overdue account DL1 N9 40 N11 DL3 200 DL1 N12 20 N13 CL1 30 2 3 4 Debit Credit Debtors control Debit Credit 40 40 200 200 20 20 30 30 60 Dr 20.4 Apr 30 Balance May 1 Balance 28 Bank 1 Balance 200 GENERAL LEDGER OF KASHIR STORES BALANCE SHEET ACCOUNTS SECTION CAPITAL 20.4 c/d 100 000 Apr 1 Balance Bank 100 000 May 20.4 Apr b/d CPJ b/d 1 Balance DRAWINGS 20.4 1 900 Apr 30 Balance 750 2 650 1 Balance b/d 20.4 Apr May 1 Balance 1 Balance 30 Creditors control 1 Balance New Era Accounting: Grade 10 b/d b/d CJ b/d B1 30 Cr b/d CRJ 80 000 20 000 100 000 b/d 100 000 B2 c/d 2 650 2 650 B3 40 000 MOTOR VEHICLES 20.4 Apr - 2 650 LAND AND BUILDINGS 20.4 Apr GJ1 Creditors control Debit Credit B4 19 000 EQUIPMENT 20.4 10 500 Apr 30 Creditors control 2 750 Balance 13 250 B5 CAJ c/d 50 13 200 13 250 13 200 157 Teacher’s Guide Dr 20.4 Apr May 20.4 Apr 1 Balance 30 Bank Cost of sales Creditors control 1 Balance 1 Balance 30 Bank (R/D) Sales Sundry accounts b/d CPJ DAJ CJ b/d b/d CPJ DJ GJ TRADING STOCK 20.4 4 950 Apr 30 4 520 180 2 275 11 925 B6 Creditors control Cost of sales Cost of sales Balance Cr CAJ DJ CRJ c/d 4 080 DEBTORS CONTROL 20.4 2 010 Apr 30 520 2 200 60 B7 Bank Discount allowed Debtors allowances Sundry accounts Balance CRJ CRJ DAJ GJ c/d 4 790 May 20.4 Apr May 20.4 Apr 1 Balance 1 Balance 30 Sundry accounts 1 Balance 30 Bank Discount received Sundry accounts Balance b/d b/d CRJ b/d BANK 20.4 4 200 Apr 31 020 35 220 B8 30 Sundry accounts Balance CREDITORS CONTROL 20.4 CPJ 2 600 Apr 1 Balance CPJ 150 30 Sundry accounts CAJ 305 Sundry accounts c/d 6 030 9 085 New Era Accounting: Grade 10 b/f CRJ DJ CPJ c/d 13 050 22 170 35 220 22 170 1 Balance NOMINAL ACCOUNTS SECTION SALES 20.4 Apr 1 Total 30 Debtors control Bank 1 Total 30 Trading stock Trading stock 920 75 270 200 3 325 4 790 3 325 May 20.4 Apr 215 1 430 6 200 4 080 11 925 COST OF SALES 20.2 10 400 Apr 30 Trading stock 6 200 1 430 18 030 158 B9 b/d CJ GJ 3 510 5 545 30 9 085 b/d 6 030 N1 b/f DJ CRJ 15 600 2 200 9 300 27 100 N2 DAJ 180 180 Teacher’s Guide Dr 20.4 Apr DEBTORS ALLOWANCES 1 Total 30 Debtors control b/f DJ 20.4 Apr 20.4 Apr 20.4 Apr 1 Total 30 Bank 1 Total 4 Bank 30 Creditors control 1 Total 30 Debtors control 30 Creditors control b/f CPJ b/f CPJ CJ STATIONERY 20.4 1 150 Apr 30 Creditors control 250 370 1 770 CPJ 23 Debtors control New Era Accounting: Grade 10 GJ 25 25 N6 GJ 40 40 CONSUMABLE STORES 20.4 150 Apr 30 Creditors control N8 b/f CPJ CAJ 340 150 490 15 N9 CRJ 800 N10 60 BAD DEBTS 20.4 Apr CAJ N7 BANK CHARGES 30 Bank N5 DISCOUNT RECEIVED 20.4 Apr 1 Total 30 Creditors control RENT INCOME 20.4 Apr 30 Bank 20.4 Apr N4 3 800 4 350 8 150 DISCOUNT ALLOWED 20.4 b/f 390 Apr 18 Debtors control CRJ 75 465 CJ Cr 1 150 270 1 420 WAGES 20.4 Apr N3 N11 200 159 Teacher’s Guide Dr INTEREST INCOME 20.4 Apr 24 Debtors control INTEREST EXPENSE 20.4 Apr 29 Creditors control GJ DEBTORS LEDGER S. STEPHEN Date Details 20.4 Apr 1 Balance 3 Inv 1001 9 Receipt No 102 Discount allowed 17 Invoice 1004 18 Cheque dishonoured Discount cancelled 20 Credit note 11 24 Interest income N. NOEL Date 20.4 Apr 1 3 17 G GANSAN Date 20.4 Apr 1 28 R. ROGERS Date 20.4 Apr 1 3 10 14 17 Fol Debit b/d DJ CRJ CRJ DJ CPJ GJ DAJ GJ Fol Balance Invoice 1002 Invoice 1005 b/d DJ DJ Details Fol Balance Bad debts b/d GJ Details Fol Balance Invoice 1003 Credit note 10 Receipt 103 Discount allowed Invoice 1006 b/d DJ DAJ CRJ CRJ DJ New Era Accounting: Grade 10 Cr GJ 20 N13 30 Details DEBTORS LIST AS AT 30 APRIL 20.4 Debtor Fol S. Stephen DL1 N. Noel DL2 G. Gansen DL3 R. Rogers DL4 N12 Credit 280 520 40 300 520 40 120 20 Debit Credit Credit 200 Debit Credit 600 150 400 35 330 560 840 320 280 580 1 100 1 140 1 020 1 040 DL2 Balance 390 840 1 080 450 240 Debit DL1 Balance DL3 Balance 200 DL4 Balance 860 1 460 1 310 910 875 1 205 Amount 1 040 1 080 1 205 3 325 160 Teacher’s Guide CREDITORS LEDGER OF KASHIR STORES MAX WHOLESALERS Date Details 20.4 Apr 1 Balance 11 Invoice MW 5354 12 Cheque 2003 Discount received 15 Debit note 55 25 Cheque 2008 27 Invoice MW 5453 28 Debit note 56 29 Interest expense OP TRADERS Date Details 20.4 Apr 1 Balance 19 Invoice T1575 24 Cheque 2001 Discount received Fol Debit b/d CJ CPJ CPJ CAJ CPJ CJ CAJ GJ Credit 1 300 1 100 60 130 300 1 675 175 30 Fol Debit b/d CJ CPJ CPJ Credit 2 570 1 200 90 CL1 Balance 2 160 3 460 2 360 2 300 2 170 1 870 3 545 3 370 3 400 CL2 Balance 1 350 3 920 2 720 2 630 CREDITORS LIST AS AT 30 APRIL 20.4 Creditor Fol Amount Max Wholesalers CL1 3 400 OP Traders CL2 2 630 6 030 TRIAL BALANCE ON 30 APRIL 20.4 BALANCE SHEET ACCOUNTS SECTION Capital Drawings Land and buildings Motor vehicles Equipment Trading stock Debtors control Bank Creditors control NOMINAL ACCOUNTS SECTION Sales Cost of sales Debtors allowances Wages Stationery Discount allowed Discount received Consumable stores Rent income Bank charges Bad debts Interest income Interest expense New Era Accounting: Grade 10 Fol B1 B2 B3 B4 B5 B6 B7 B8 B9 Debit Credit 100 000 2 650 40 000 19 000 13 200 4 080 3 325 22 170 6 030 N1 N2 N3 N4 N5 N6 N7 N8 N9 N10 N11 N12 N13 27 100 17 850 1 420 8 150 1 745 425 490 135 800 60 200 20 30 134 440 161 134 440 Teacher’s Guide TASK 6.17 Project Suggested rubric: CRITERIA LEVEL 1 LEVEL 2 LEVEL 3 Transactions Inadequate transactions drawn up Journals No understanding of journals Ledgers Posting is not understood Some attempt to post correctly Posting completed accurately Lists and Trial Balance No idea of presentation Some attempt to record this information Lists and trial balance completed Spreadsheet No idea of completing a spreadsheet Some attempt to complete a spreadsheet All entries correctly completed TASK 6.18 Some attempt to draw up transactions Some attempt to complete the journals LEVEL 4 Correct transactions drawn up Transactions are linked together Correct drawing up of journals Journals professionally presented All ledger accounts accurate and balanced / totaled Lists and trial balance accurate and correctly presented Spreadsheet completed and in balance Ethical & internal control scenarios affecting the General Journal Before undertaking this task, it is advisable to inform the learners about what is meant by ethics in business, fraud and internal control (you may refer to Modules 13 and 14). 6.18.1 6.18.2 6.18.3 6.18.4 A GJ is necessary to cater for all entries that are not covered by any other journal. Because the GJ can contain any type of entry, including correction of entries, it is possible for a disreputable bookkeeper or accountant to cover up errors, omissions, theft and fraud by making entries in the GJ. The document is the Journal Voucher. Additional vouchers can be attached to the JV to provide evidence of why the entry is needed. The JV should be signed by two senior persons in the business (e.g. the owner and the accountant) so that the entries are properly authorised and to reduce the possibility of fraud and unethical conduct. (a) The employee could persuade the bookkeeper to put through an entry to Debit Fixed Assets Written Off and Credit Equipment. (b) The bookkeeper could write of the account with an entry to Debit Bad debts and Credit Debtors Control (and the Debtor’s personal account in the Debtor’s Ledger), and then not send the statement to the debtor. (c) The bookkeeper could put an entry through to Credit Trading stock and Debit any other account, to reduce the value of Trading stock so that a deficit will not be detected when the stock is counted. CHECKLIST Yes – proficient Skills Requires more attention Complete Analysis of transactions in the Accounting Equation. Identification of entries relevant to the General Journal. Completion of the General Journal. Posting to the ledgers from the General Journal. Completion of tasks involving all the journals. Posting tasks with all the journals to the ledgers. Analyse ethical & internal control scenarios affecting the General Journal. New Era Accounting: Grade 10 162 Teacher’s Guide