Grade Nine EMS:
Recording the Transactions of a retailer
Name:
Class
Grade 9 EMS – Booklet One
Topics covered in this booklet:
1.
The difference between a Service Rendering concern and a retailer
2.
Trading Stock
3.
Working with mark-up percentage
4.
Source documents used by a retailer
4.
Recording the purchase and sale of Trading Stock in the Cash Journals.
5.
Recording the purchase and sale of Trading Stock on the Accounting Equation.
6.
Posting the Cash Journals to the General Ledger.
7.
The Trial Balance
2
"Give the trader without delay information as to his assets
and liabilities."
Luca Pacioli – ‘the father of accounting’
In this section of accounting we look at the differences between a
business that provides a service and a business that buys goods in
order to sell the goods at a profit (a retailer).
Words and
terms
You have already learnt about businesses that generate income by performing
a service, we call the main income earned by these businesses current income.
The main expense that a service business has when performing their service is
referred to as materials.
Current
Income: This is
the income
earned by
service
providers.
As a retailer, you have a different focus to a service business. You buy trading
stock from a wholesaler. You then add a profit to the cost of the stock and sell
the stock at the higher price to your customers. All other aspects of the
accounting process remain the same.
Words and
terms
What accounting books are used to record cash transactions?
Materials:
The
resources
used up
when
providing a
The Cash Receipts Journal and the Cash Payments Journal
service.
All your cash purchases (bought for cash) are recorded in the Cash Payments
Journal, and all money received is recorded in the Cash Receipts Journal.
Words and
terms
Wholesaler:
A business
that sells stock
to retailers.
3
Activity 1.1
NO. Business
1
2
3
4
5
6
7
8
Service
Trading
Nu Metro
Pick n Pay
Pep Stores
Takkie Town
Jabo’s Taxi
Old Mutual Life Insurance Co
Capitec Bank
Cash and Carry wholesalers
THE DIFFERENCE BETWEEN SERVICE PROVIDER AND A TRADER:
Words and
terms
Sales:
This is the
SERVICE RENDERING CONCERN:
Income earned: (examples)
Current Income
Rent Income
RETAILER:
Income earned: (examples)
Sales
Rent Income
Running costs (Expenses):
Materials
Wages
Rent
Electricity
Advertising, etc.
Running costs (Expenses):
Cost of Sales
Wages
Rent
Electricity
Advertising, etc.
You provide a service and charge a
price that covers the above costs as
well as providing you with a
reasonable profit.
When you own a trading business,
there is an additional cost; this is the
cost price of the article that is sold!
You, the owner, must therefore
charge an amount greater than the
cost price. This must cover the cost
price as well as the running costs,
and ensure that you make a
reasonable profit.
main source
of income
earned by a
retailer. It is
calculated by
adding profit
to the cost
price of an
article sold.
4
As you can see from the above comparison, the accounts used in the
accounting of a trader are very similar to those used in a service rendering
concern.
It is almost the same, except for three new General Ledger accounts. These are:
 Trading Stock
 Sales
 Cost of Sales
Words and
terms
Trading Stock:
This is an asset
that is
Did you know?
Because you have new ledger accounts, you also have three new
columns in your Cash Journals for these accounts.
purchased
with the
intention of
selling it at a
profit.
The effect of TRADING STOCK on the Accounting Equation:
The accounting equation
Assets =
OE +
Purchase Trading Stock for Cash, R8 000
+ R8 000 Trading Stock
- R8 000 Bank
0
Liabilities
Words and
terms
0
Profit:
This is the
difference
between the
The asset, Trading Stock, increases as more is purchased, while
Bank decreases.
cost price of
an item and
the selling
price.
The accounting equation
Assets =
OE +
Sold Trading Stock that cost R500 for R750
- R500 Trading Stock
- R500 Cost of Sales
+ R750 Bank
+ R750 Sales
Liabilities
0
Trading stock is USED UP and therefore becomes and expense, Cost
of Sales.
The income earned is recorded as Sales (R750), and the money
increases the Bank by R750.
5
Activity 1.2
Assets =
Effect
Reason
+ 200 000
Vehicles
-200 000
Bank
-8 500
The accounting equation
OE +
Effect
Reason
Bank
-8 500
Wages
+ 500
Bank
+ 500
Current
Income
+ 8 000
Trading
Stock
-8 000
Bank
-1 000
Trading
Stock
-1 000
Cost of
sales
+1 500
Bank
+1 500
Sales
6
Liabilities
Effect
Reason
WORKING WITH MARK-UP PERCENTAGES:
As a retailer, you buy trading stock from a wholesaler. The price that you pay
them is called the cost price of the trading stock. You then have to add a profit
mark-up to the cost price to get the selling price.
Profit mark-up is expressed as a percentage of the cost price. Most businesses
use a standard profit mark-up for all similar products.
For example, most clothing retailers use a mark-up of 100 %; businesses that
specialise in the sale of sports shoes normally use a mark-up of 66 %.
Let’s look at an example:
Topshoes CC buys sport shoes from wholesalers and sells them at a profit
mark-up of 66 % on cost.
Here is one of their invoices:
Invoice no. 3431
Nike South Africa
Order number: 34/2012
Customer: Topshoes CC
Model
Swoosh
Price
R499
Subtotal
VAT @ 14 %
Quantity
10
Price
4990
4990
698,60
Total
5688,60
5 % discount for accounts settled within 30
days.
Topshoes CC now needs to add a 66 % profit mark-up to their
cost price of R499 per unit.
7
To determine Topshoes CC’s selling price we use the following formula:
Cost Price/100 x (100 + profit %)
Therefore: 499/100 x 166 = R828,34
Sometimes we need to use the Selling Price to calculate the Cost Price.
Then we need to use the following formula:
Selling Price/(100 + profit %) x 100 = Cost Price
Therefore: R828,34/166 x 100 = R499
Sometimes it is necessary to calculate the profit percentage.
To do this we use the following formula:
Profit in Rand/Cost Price x 100 = Profit % (mark-up)
e.g. R828,34 – R499 = R329,34 profit
Therefore: R329,34/499 x 100 = 66 % mark-up
Activity 1.3
No.
1
2
3
4
5
6
7
8
9
10
Cost Price
R500
R2 600
R3 400
R2 200
R750
R1 800
R5 400
R900
R6 300
R2 222
Mark-Up
R30
R400
25 %
50 %
75 %
80 %
100 %
30 %
50 %
25 %
8
Selling Price
R530
R3 000
R4 250
R3 300
R1 312.50
R3 240
R10 800
R1 170
R9 450
R2 777.50
Activity 1.4
No.
1
2
3
4
5
6
7
8
Cost Price
R300
R1 400
R2 800
R4 700
R11 000
R23 500
R17 200
R4 850
Mark-Up
50%
75%
25%
100%
80%
40%
10%
20%
Selling Price
R450
R2 450
R3 500
R9 400
R19 800
R32 900
R18 920
R5820
Activity 1.5
No.
1
2
3
4
5
Cost Price
R1 400
R373
R2 320
R850
R7 100
Mark-Up %
50 %
40.75 %
75 %
100 %
20 %
Selling Price
R2 100
R525
R4 060
R1 700
R8 520
Activity 1.6
No.
1
2
3
4
5
Cost Price
R3 000
R400
R2 500
R900
R9 600
Mark-Up
50%
25%
20%
100%
33.3%
9
Selling Price
R4 500
R500
R3 000
R1 800
R1 2796.80
Source Documents used by a retailer:
Activity 1.7
No.
1
Analysis of Source Document
Chlorine, French loaf, Cauliflower, Sweetcorn, Butterspread,
Parmalat milk (Any two)
2
3
4
5
6
7
VAT Zero rated
R136.04
The exact amount was paid for with a card.
None
No
Cash purchases do not need to be followed up.
The customer has paid and does not need to be tracked in the
future.
No – no proof of where the items were bought.
The date of purchase may have been several months ago
(expiry dates).
8
Activity 1.8
No.
1
2
3
4
5
Transaction
Received money straight into the bank account
Received money for sale of stock
Paid a supplier money for stationery
Received money for rent
Bought equipment and paid via the internet
10
Source document
Bank statement
Cash Register Roll
Cheque counterfoil
Receipt
EFT/Bank statement
Recording cash transactions in the Cash Receipts and Cash Payments Journals.
As you already know, the accounting system uses a double entry system; for
every debit entry there is an equal credit entry. This double entry system starts
in the books of first entry, the journals.
We start off looking only at the cash journals, the cash receipts and the cash
payments journals. Because we use a double entry system, we need to record
the amount of each transaction twice in the journal. There is of course an
exception to this rule, and that is recording the cost of sales portion of a sales
transaction. This is explained in detail below.
Recording in the Cash Receipts Journal
Transactions for June 2012
3
Sold goods with a cost price of R200 for R300 cash.
31
Received this month’s rent from our tent, I.O. Yoo, R3500, issued receipt
23 R3 500.
Received an amount of R34 from ABC bank for interest received, issued
receipt 24.
Doc
23
24
Day
Details
3
Cash
31
I. O. Yoo
ABC Bank
Analysis
300
Bank
Sales
300
3 500
34
300
Amount
Details
This is the
cost of
money.
Interest is
invested. It is
also charged
when money
200
34
Rent Income
Interest Received
The first transaction on the 3rd is an example of a sale, we can use a tick mark in
the document column as we don’t issue a receipt for a sale, but rather record
sales on the cash register roll. In details we write cash, as it is a cash transaction
and we don’t really know the name of the customer! The analysis column is a
part of the bank column, it is used to total cash amounts received on a
particular day. Each amount received is recorded in the analysis column, but
only the day’s total is shown in the bank column (as we deposit money once a
day, the amount in the bank column must be the same as our daily deposit).
You will notice that we underline the last amount received on a day, and put
the total in the bank column.
11
Interest:
money is
Sundry accounts
3 500
3 534
terms
earned when
Cash Receipts Journal of EX ample Traders for June 2012
Cost of
Sales
Words and
is owed to a
creditor.
Words and terms
Contra
account:
If study the transaction on the 3rd, the new sales transaction, you will notice
that the R300 sales amount is shown in the Bank Column (Debit) and the Sales
Column (Credit) – this is a double entry. However the R200 cost price is only
recorded once, in the Cost of Sales Column (Debit) – only one half of the double
entry. This is because it is assumed that we know that the contra account is
Trading Stock and because that account is getting smaller, it will be credited
with whatever is in the Cost of Sales Column.
The two
accounts that
are involved in
a double entry
are known as
each other’s
contra
accounts.
Activity 1.9
No.
1
Analysis of a Cash Receipts Journal
The owner increased his capital contribution and goods were sold.
2
Cash Register Roll
3
Bank statement
Receipt
4
Goods were sold for cash.
5
This indicates the value of the stock sold.
6
No – it is not money received in the bank.
7
92 225 – 52 700 = 38 525
38 525 / 52 700 x 100 = 75%
8
Cost of Sales
Activity 1.10
(a)
(b)
(c)
(d)
I
(f)
(g)
(h)
(i)
(j)
(k)
(l)
25 000
15 625
2 000
Rent income
20 000
18 000
11 250
Cash
22 600
22 600
250
026
(m)
(n)
(o)
(p)
(q)
I
(s)
(t)
(u)
(v)
(w)
4 000
4 000
Capital
20 400
24 650
20 400
12 750
92 250
86 000
53 750
6 250
12
Activity 1.11
Cash Receipts Journal of Motaung Stores – June 20.6
Doc
Day
CRR5663
6
Cash
231
8
A.Ncgobo
CRR6474
11
Cash
11 300
Babba Bank
40 000
Cash/Babba
Bank
50
232
B/S
CRR7590
CRR9199
14
28
Details
Analysis
Bank
Sales
18 500
18 500
18 500
3 250
3 250
11 300
Cost of
Sales
Sundry accounts
Amount
Details
14 800
3 250
Rent income
40 000
Loan
9 040
51 300
50
Cash
26 400
26 450
26 400
21 120
Cash
22 000
22 000
22 000
17 600
121 500
78 200
62 560
Interest
income
43 300
Activity 1.12
1
Source
Journal
Acc 1
Document
CRR
CRJ
Bank
2
Duplicate
receipt
CRJ
Cost of
sales
Bank
3
B/S
CRJ
Bank
4
B/S
CRJ
Bank
5
Duplicate
receipt
CRJ
Bank
No.
Acc 2
Sales
Accounting Equation
A
OE
L
+8 300
+8 300 0
Trading
-5 533
Stock
Rent
+4 200
income
(received)
Loan
+10 000
-5 533
0
+4 200
0
0
+10 000
Interest
received
Capital
+500
+500
0
+25 000
+25 000 0
13
Activity 1.13 (Transactions from activity 1.10 and 1.11)
No.
Source
Document
Journal
Acc 1
Acc 2
1.10
6
CRR
CRJ
Bank
Sales
Cost of
sales
Trading
stock
Rent
income
Sales
Trading
stock
Sales
Trading
stock
Sales
Trading
stock
13
20
27
1.11
6
8
11
14
28
Duplicate
Receipt
CRR
CRR
CRJ
Bank
CRJ
Bank
Cost of
sales
Bank
Cost of
sales
Bank
Cost of
sales
CRJ
CRR
CRJ
CRR
CRJ
CRR
CRJ
Duplicate
receipt
CRR
CRJ
Bank
Cost of
sales
Bank
CRJ
Bank
Sales
Trading
Stock
Rent
income
Sales
B/S
CRJ
Cost of
sales
Bank
Trading
stock
Loan
B/S
CRJ
Bank
CRR
CRJ
Bank
Interest
received
Sales
CRJ
Cost of
sales
Bank
Trading
stock
Sales
Cost of
sales
Trading
stock
CRR
14
Accounting Equation
A
OE
L
+25 000 +25 000
0
-15 625
-15 625
0
+2 000
+2 000
0
+18 000 +18 000
0
-11 250
-11 250
0
+22 600 +22 600
0
-14 125
-14 125
0
+20 400 +20 400
0
-12 750
-12 750
0
+18 500 +18 500
-14 800 -14 800
0
0
+3 250
+3 250
0
+11 300 +11 300
0
-9 040
-9 040
0
+40 000
0
+40 000
+50
+50
0
+26 400 +26 400
0
-21 120
-21 120
0
+22 000 +22 000
0
-17 600
0
-17 600
Recording in the Cash Payments Journal
Transactions for June 2012.
7
Cashed cheque 345 for R550 to pay for wages.
9
Bought R400 worth of merchandise from TT Wholesalers, paid with
cheque 346
Cash Payments Journal of EX ample Traders for June 2012
Details
Trading
Stock
Doc
Day
Bank
345
7
Cash
550
346
9
TT Wholesalers
400
Wages
Sundry accounts
Amount
Details
550
400
Words and terms
Cheque
Counterfoil:
This is the
source
document for
the CPJ. It is the
part of the
cheque that
remains in the
As you can see above, we extract important information from the transaction
and record it on the journal. This includes the cheque number, the date of the
transaction, who we paid, or we write ‘cash’ if we wrote a cash cheque. We
then record the amount in the bank column – this is eventually credited to the
bank account. We complete the double entry by showing what we bought or
paid for – this will eventually be debited to the relevant account. The source
document for these transactions is the cheque counterfoil, the part of the
cheque that gets filled in when a cheque is issued, this remains in the cheque
book.
Cheque Counterfoil
Actual Cheque
15
book once the
cheque has
been removed.
all the
information
that is written
on the cheque,
is also recorded
on the
counterfoil.
Activity 1.14
Cash Payments Journal of Xulu Stores for June 20.0
Doc
Day
Details
001
1
Young Stationers
002
2
003
004
Trading
Stock
Bank
Sundry accounts
Amount
Details
165
165
Stationery
ATL Furnishers
4 244
4 244
Equipment
5
Waterhouse
Property
1 800
1 800
Rent expense
7
Cash
9 000
A4 Wholesalers
7 655
196
196
Consumable
stores
98
98
Stationery
223
Consumable
stores
005
006
10
Hero Dealers
007
12
Young Stationers
008
14
Cash
9 000
009
16
A4 Wholesalers
4 999
110
Wages
18
Geza Dealers
9 000
7 655
9 000
4 999
223
9 000
111
21
Cash
112
22
Zuma Stationers
160
160
Stationery
113
26
Mr Fix-It
548
548
Repairs
28
Cash
9 000
30
Mr Lewis
6 700
6 700
Salaries
116
Vodacom
629
629
Telephone
117
Municipality
498
498
Water and
electricity
118
Ace High
2 500
2 500
Drawings
114
115
9 000
66 415
9 000
36 000
12 654
17 761
Activity 1.15
No.
1
2
3
4
5
Source
Journal
Document
Cheque
counterfoil
Cheque
counterfoil
Cheque
counterfoil
Cheque
counterfoil
Cheque
counterfoil
Acc 1
Acc 2
Accounting Equation
A
OE
L
CPJ
Bank
Stationery
-6 400
-6 400
0
CPJ
Bank
Telephone
-500
-500
0
CPJ
Bank
0
Bank
+12 000
- 12000
-7 500
0
CPJ
Trading
stock
Drawings
-7 500
0
CPJ
Bank
Trading
stock
0
0
-
16
+8 550
8 550
Activity 1.16
No.
01
05
07
22
26
Source
Journal
Document
Cheque
counterfoil
Cheque
counterfoil
Cheque
counterfoil
Cheque
counterfoil
Cheque
counterfoil
Cheque
counterfoil
Acc 1
Acc 2
Accounting Equation
A
OE
L
CPJ
Stationery
Bank
-165
-165
0
CPJ
Rent
expense
Wages
Bank
-1 800
-1 800
0
Bank
-9 000
-9 000
0
Bank
0
Bank
+7 655
-7 655
-160
0
CPJ
Trading
stock
Stationery
-160
0
CPJ
Repairs
Bank
-548
-548
0
CPJ
CPJ
17
Summary of new transactions:
1.
2.
3.
18
Additional Activity
Record the following transaction of Muster Traders in the cash journals for
June 2012. You will need a Wages and Trading Stock columns in the Cash
Payments Journal, and Sales and Cost of Sales columns in the Cash Receipts
Journal. (Muster Traders uses a mark-up of 50 % on cost)
Transactions for June 2012
1
C. Muster invested R100 000 Capital in his new business, Muster Traders,
he issued himself receipt 001.
Bought Equipment from Action Stores paid R1 500 with cheque 001.
Bought merchandise to the value of R900 from Ndlovu Wholesalers, paid
with cheque 002.
3
Sold stock with a cost price of R400 at a mark-up of 20 %
5
Cashed cheque 003 for Wages, R950.
8
Paid R2000 to Yellow Onion Adverts for Advertising, paid with cheque
004.
10
Bought stock from Polokwane Ltd, paid R5000 with cheque 005.
12
Sold stock for R2 100.
14
Paid wages, R950, cashed cheque 006.
Bought Stationery from Draw Strores, issued cheque 007 for R500.
20
Sold stock for R1920 cash.
Received a cheque from NBK Bank for R25 for interest, issued receipt
002.
27
Sent cheque 008 to the Polokwane Municipality for Water and
Electricity, R340.
Sent cheque 009 to our landlord, Peerless Properties, R3 500.
30
Sold stock with a cost price of R800.
19
Cash Payments Journal of Muster Traders for June 2012
Sundry accounts
Doc
Day
001
1
002
Details
Bank
Action Stores
Trading Stock
Wages
Amount
1 500
Ndlovu Wholesalers
900
950
Details
1 500
Equipment
2 000
Advertising
900
003
5
Cash
004
8
Yellow Onion Adverts
2 000
005
10
Polokwane Ltd
5 000
006
14
Cash
950
Draw Stores
500
500
Stationery
Polokwane Municipality
340
340
Water and Electri
3 500
3 500
Rent Paid
007
008
27
009
Peerless Properties
950
5 000
950
15 640
5 900
1 900
7 840
Cash Receipts Journal of Muster Traders for June 2012
Doc
Day
001
1
C. Muster

3


Analysis
Bank
Sales
Cost of Sales
100 000
100 000
Cash
480
480
480
400
12
Cash
2 100
2 100
2 100
1 400
20
Cash
1 920
1 920
1 280
002

Details
NBK Bank
30
Cash
Amount
Details
100 000
25
1945
1 200
1 200
1 200
800
105 725
5 820
3 880
20
Sundry accounts
25
100 025
Capital
Interest Receiv
Additional Activity two
Record the following transactions for JP Mokgethi Coffee Traders , for the
month of July 2012. In the Cash Payments Journal you will need columns for
Wages and Trading Stock, and in the Cash Receipts Journal you will need
columns for Sales and Cost of Sales. JP has decided to use a 100 % mark-up.
1
3
4
7
10
11
14
17
21
25
27
28
29
30
JP Mokgethi after finishing his accounting studies opened a coffee
roasting business and invested R200 000 into the bank account of the
business, he issued himself receipt 001
JP went to Roasters Direct and bought R40 000’s worth of roasting
equipment, he paid with cheque 001.
After organizing his factory, JP paid Jimmy Tabasco R7000 for advertising
with cheque 002.
Bought stock from Beanery, R4 500
The first client arrived, JP earned R5000.
JP Paid his assistant R800 for the week, cash.
Bought stationery from PNA R230.
Earned R1300 selling freshly roasted coffee.
Paid the secretary, R800 for the week, cash.
JP withdrew R2000 for his own use.
Bought additional stationery from Clicks stationers, R67
Paid the weeks wages, R800.
Purchased fresh beans from Colombia CC, R2 200.
JP paid Telkom R900, of which R300 was for his personal home
telephone.
Paid the Month’s rent R5000 to Top Prop.
Paid the secretary R800 plus an additional 7,5 % monthly bonus.
Received R1000 for the sub-letting of a portion of the office.
Earned R12 interest from ABSA on the money in the bank.
21
Cash Payments Journal of JP Mokgethi Coffee Traders for July 2012
Sundry accounts
Doc
Day
Details
Bank
Trading Stock
Wages
Amount
Details
001
1
Roasters Direct
40 000
40 000
Equipment
002
3
Jimmy Tabasco
7 000
7 000
Advertising
The Beanery
4 500
230
Stationery
003
4 500
004
7
Cash
800
005
10
PNA
230
006
14
Cash
800
007
17
Cash
2 000
2 000
Drawings
67
67
Stationery
600
Telephone
300
Drawings
008
009
Clicks Stationers
21
010
011
Cash
27
Top Prop
013
28
Cash
800
2 200
Telkom
012
800
800
Columbia CC
25
800
2 200
900
5 000
5 000
860
Rent Expense
860
65 157
6 700
3 260
55 197
Cash Receipts Journal of JP Mokgethi Coffee Traders for July 2012
Doc
Day
Details
001
1
JP Mokgethi

4

Analysis
Bank
Sales
Cost of
Sales
Sundry accounts
Amount
200 000
200 000
Cash
5 000
5 000
5 000
2 500
11
Cash
1 300
1 300
1 300
650
002
29
Tenant
1 000
1 000
1 000
003
30
ABSA
12
12
12
207 312
22
200 000
6 300
3 150
201 012
Details
Capital
Rent Income
Interest Received
Topic Three: General Ledger and Trial Balance
The accounting equation states the following:
Assets = Owner’s Equity + Liabilities
Let’s look at this in more detail…
ASSETS
Owner’s Equity
Liabilities
Assets are what
This is the
Liabilities are
the business
owner’s money
what the
owns, for
invested in the
business owes.
example Vehicles,
business.
=
+
Equipment , and
We will learn
in the case of a
Incomes increase
about liabilities
retailer, Trading
owner’s equity,
later on in the
Stock.
and expenses
book
decrease it.
This is where the
These two show us where the money has
business has
come from and how much the business
spent its money.
has to spend.
Example 1:
Buy Trading Stock (which is an asset) for R500, paid with cheque 098.
The double entry for this is as follows:
We credit this account to show that it is decreasing
We debit this account to show that it is increasing
Bank Account
Trading Stock Account
Trading Stock
500
Bank
500
We can also show this transaction on the accounting equation table:
Assets =
Owner’s Equity +
Liabilities
Effect
Reason
Effect
Reason
Effect
Reason
- R500
Bank decreases
+ R500
Trading Stock
Increases
0
0
0
0
As you can see from the previous example, there is no change to the owner’s
equity, or liabilities. This is because one asset (money reflected in the bank
account) is simply traded for another asset, Trading Stock.
23
Example 2:
Trading Stock which was bought for R300 is sold at a mark-up of 40 %.
Step one: calculate the Selling Price
R300/100 x 140 = R420
The double entry for this is as follows:
Although there is only one transaction taking place here, you will notice that
there is more than one double entry. This is because we need to record two
effects, these are:
 The Sale (earning an income)
 The loss of the asset Trading Stock
Trading Stock is used to make the sale. Things that we use up in the running of
the business are classified as expenses. So when the stock is in our storeroom,
it is classified as an asset (something we own that is of value to us), but when
we sell the stock, we use it to make a profit, and thus need to convert it to the
expense account Cost of Sales.
We credit this account to show that it is decreasing
We debit this account to show that it is increasing
Bank Account
Sales
Sales Account
420
Bank
We credit this account to show that it is decreasing
We debit this account to show that it is increasing
Trading Stock
Cost of Sales
Cost of Sales Account
300
Trading Stock
300
How much profit did the business make in the above example?
R420 – R300 = R120 profit. (Which is 40 % of the cost price)
24
420
We can also show this transaction on the accounting equation table:
Assets =
Owner’s Equity +
Liabilities
Effect
Reason
Effect
Reason
Effect
Reason
-R300
Trading Stock
Decreases
-R300
Cost of Sales
increases
+R420
Bank Increases
+R420
Sales Increases
Did you know?
There is an inverse relationship between owner’s equity and
Expenses. As expenses increase, owner’s equity decreases.
Sales, Cost of Sales and Trading Stock – the new columns!
1. Sales
Dr (-)
The Sales Account
Cr (+)
This is an INCOME account. It replaces the
Current Income account, as that applies to
businesses that render a service. Retailers
sell stuff and therefore their main source of
revenue is from SALES.
Revenue is another word for income!
Being an INCOME the account increases on
the CREDIT side. Therefore when we post,
we post the total of the SALES COLUMN to
the CREDIT side of the SALES ACCOUNT
2. Cost of Sales
Dr (+)
The Cost of Sales Account
Cost of Sales is an EXPENSE account. It
is the cost of the stock USED to make a
profit by selling it.
NB! When stock is in the storeroom it is an
ASSET, when we USE IT (i.e. Sell it) it
becomes an EXPENSE. Therefore we take
the stock out of Trading Stock (minus side)
and put it into the Cost of Sales account.
25
Cr (-)
3. Trading stock
Dr (+)
The Trading Stock Account
Trading Stock is an ASSET. It represents
the stock that we have in our storeroom.
When stock is in the storeroom, it is of
value to us, therefore it is an ASSET.
When we buy stock, we DEBIT the Trading
Stock account as our ASSET is getting
bigger (on the DEBIT side).
The Buy stock side!
26
Cr (-)
When a business sells something, in reality
they remove it from the storeroom, and give
it to the customer. They are therefore using
the stock UP.
The stock therefore changes from being an
ASSET (as it is no longer ours) and
becomes and EXPENSE (because we use it
up). On paper (in our accounting books) we
therefore need to take it out of Trading Stock
account (CREDIT) and put it into the Cost of
Sales account (DEBIT.)
The sell stock side!
Posting the Cash Journals to the General Ledger.
‘Try a thing you haven’t done three times. Once, to get over
the fear of doing it. Twice, to learn how to do it. And a third
time, to figure out whether you like it or not.’
Virgil Garnett Thomson
The focus of this lesson is the posting of the Cash Receipts Journal to
the General Ledger.
Words and
Previously we focused on recording transactions in the books of first entry,
more specifically, the cash journals. The process of journalizing transactions
organizes similar transactions into a specific format. The next step is to
summarise the information, this is done by posting the information contained
within journals to the General Ledger.
The process of
terms
Posting:
transferring
information in
the subsidiary
journals to the
General
Ledger. The
intention of
In the Cash Receipts Journal, we record every transaction individually, thus the
need to eventually summarise the information. We do this by posting or
transferring the total of each column, and not each transaction. The only items
that get posted individually are the entries in the Sundry Accounts section.
To make posting easier, we will make use of some easy posting rules and a
simple posting method.
Posting Rule: Debit the Bank Account and Credit all other accounts, except for
Cost of Sales. Debit Cost of Sales and Credit Trading Stock.
Posting Method: Start by posting the Bank Column to the Bank Account, then
move from left to right posting the columns to their accounts. Once that is
done, post the sundry accounts column from top to bottom.
(This way you won’t forget to post something.)
27
this is to
summarise the
information.
Example 1:
Cash Receipts Journal of EX Ample Traders for June 2012
Doc
22
23
Day
Details
Analysis
Bank
Cost of
Sales
Sales
3
Cash
300
300
300
200
7
Cash
600
600
600
400
14
E. Ample
25 000
25 000
24
Cash
1 200
1 200
30
I. O. Yoo
3 500
24
ABC Bank
34
1 200
Sundry accounts
Amount
25 000
Capital
3 500
Rent Income
800
3 534
34
30 634
2 100
Dr
Cr
Details
1 400
Dr Cost of
Sales and
Cr Trading
Stock
Interest Received
28 534
Cr all these accounts
General Ledegr of EX Ample Traders for the Month of July 2012
Balance Sheet Section
Capital B1
Month
Day
Details
Fol
Amount
Month
June
Day
22
Details
Bank
Fol
CRJ
Amount
25 000
Trading Stock B2
Month
Day
Details
Fol
Amount
Month
June
Day
30
Details
Cost of Sales
Fol
CRJ
Amount
1 400
Bank B3
Month
June
Day
30
Details
Total Receipts
Fol
CRJ
Amount
Month
Day
Details
Fol
Amount
Day
Details
Fol
Amount
30 634
Nominal Section
Sales N1
Month
Day
Details
Fol
Amount
Month
June
30
Bank
CRJ
2 100
Cost of Sales N1
Month
June
Day
30
Details
Fol
Trading Stock
CRJ
Amount
Month
1400
28
Day
Details
Fol
Amount
Rent Income N3
Month
Day
Details
Fol
Amount
Month
June
Day
30
Details
Bank
Fol
CRJ
Amount
3 500
Interest Received N4
Month
Day
Details
Fol
Amount
Month
June
Day
30
Details
Bank
Fol
CRJ
Amount
34
The total of the bank column is posted to the debit side of the bank account. Money is being
received and therefore the account is increasing. Assets increase on the debit side.
The total of the sales column is posted to the credit side of the income account ‘sales’ more
has been sold, therefore the account must be increased. Income accounts increase on the
credit side.
The total of the Cost of Sales column is posted to the debit side of the Cost of Sales account
and the credit side of the Trading Stock account. The asset trading stock is being ‘used’ and
must therefore be removed from the asset account on the credit (minus )side, and
transferred to the Cost of Sales account on the debit (plus) side.
The income amounts recorded in the sundry accounts section are posted to the credit side
of the relevant account. These are income accounts that are increasing and therefore
posted to the credit (plus)side of the account.
Additional Activity Three
Answer the following questions relating to posting:
1.
2.
3.
4.
5.
6.
1
2
Why is it necessary to post from the journals to the ledger?
What is the posting rule for posting the Cash Receipts Journal of a
retailer.
What is the posting method for the Cash Receipts Journal?
Why is necessary to use the posting method.
What two sections is the General Ledger divided up into?
Complete the following: ‘the double entry principle states that…’
Answers
To summarise the information, this is done by posting the information
contained within journals to the General Ledger.
Debit the Bank Account and Credit all other accounts, except for Cost of
Sales. Debit Cost of Sales and Credit Trading Stock.
29
3
Posting Method: Start by posting the Bank Column to the Bank Account,
then move from left to right posting the columns to their accounts.
Once that is done, post the sundry accounts column from top to
bottom.
4
This way you won’t forget to post something.
5
Balance Sheet Section
Nominal Section
For every Debit entry there is a Credit entry.
6
Activity 7
You are provided with information from the books of Croxley Traders for the
month of January 2012.
Instructions:
Post the Cash Receipts Journal of Croxley Traders to the General Ledger of
Croxley Traders for the month of January 2012.
Cash Receipts Journal of Croxley Traders for January 2012
Doc
Day
001
3
J. Croxley
7
003
004
Details
Analysis
Bank
Sales
Cost of
Sales
100 000
100 000
Cash
1 700
1 700
1 700
850
14
Cash
24 000
24 000
24 000
12 000
24
Cash
9 200
9 200
9 200
4 600
30
S. Coe
4 500
Barclays Bank
56
Sundry accounts
Amount
100 000
4 500
4 556
139 456
Dr
56
34 900
Cr
30
17 450
Dr Cost of
Sales and
Cr Trading
Stock
Details
Capital
Rent Income
Interest Received
104 556
Cr all these accounts
General Ledegr of Croxley Traders for the Month of January 2012
Balance Sheet Section
Capital B1
Month
Day
Details
Fol
Amount
Month
Jan
Day
3
Details
Bank
Fol
Amount
CRJ
100 000
Fol
Amount
Trading Stock B2
Month
Day
Details
Fol
Amount
Month
Jan
Day
31
Details
Cost of Sales
CRJ
17 450
Bank B3
Month
Jan
Day
31
Details
Total Receipts
Fol
Amount
CRJ
139 456
Month
Day
Details
Fol
Amount
Day
Details
Fol
Amount
Nominal Section
Sales N1
Month
Day
Details
Fol
Amount
Month
Jan
31
Bank
CRJ
34 900
Cost of Sales N1
Month
Jan
Day
31
Details
Fol
Trading Stock
CRJ
Amount
Month
Day
Details
Fol
Day
Details
Fol
Amount
17 450
Rent Income N3
Month
Day
Details
Fol
Amount
Month
Jan
31
Bank
CRJ
Amount
4 500
Interest Received N4
Month
Day
Details
Fol
Amount
Month
Jan
31
Day
31
Details
Bank
Fol
CRJ
Amount
56
Psting of the Cash Payments Journal to the General Ledger.
The double entry principle states that for every DEBIT there must be a CREDIT,
we need to keep this in mind when posting the CPJ to the General Ledger. The
bank account which is an asset is getting smaller, and therefore needs to be
credited with the total of the bank column. All the other accounts involved are
either expenses or assets, they are getting bigger because we are buying or
paying for more of them, and therefore must be debited. (Assets and expenses
get bigger on the debit side.)
Balance Sheet Section
Asset Accounts
Get bigger on the
DEBIT side.
Nominal Section
Income Accounts
Get smaller on the
CREDIT side
Get smaller on the
DEBIT side.
Liability Accounts
Get smaller on the
DEBIT side.
Get Bigger on the
CREDIT side
Expense Accounts
Get Bigger on the
CREDIT side
Get bigger on the
DEBIT side.
Get smaller on the
CREDIT side
Once again we use a rule to make posting easier:
Posting Rule: Credit the Bank Account and Debit all other accounts.
Posting Method: Start by posting the Bank Column to the Bank Account, then
move from left to right posting the columns to their accounts. Once that is
done, post the sundry accounts column from top to bottom.
(This is exactly the same method as used when posting the Cash Receipts
Journal).
32
Cash Payments Journal of EX Ample Traders for June 2012
Details
Trading
Stock
Doc
Day
Bank
001
1
M.mart
002
5
Pens n stuff
003
6
Cash
1 500
004
9
M.mart
4 500
005
14
Cash
1 500
006
19
E-Quip
1 850
007
23
PNA
250
008
25
Cape Lines
009
30
Peer & Co
6 000
Wages
Stationery
Sundry accounts
Amount
Details
6 000
156
156
1 500
4 500
1 500
1 850
Equipment
500
500
Advertising
2 000
2 000
Rent Expense
250
16 406
10 500
CR
DR
3 000
DR
406
DR
2 500
DR all of these accounts
General Ledegr of EX Ample Traders for the Month of July 2012
Balance Sheet Section
Equipment B1
Month
June
Day
19
Details
Bank
Fol
CPJ
Amount
Month
Day
Details
Fol
Amount
Day
Details
Fol
Amount
Day
Details
Fol
Amount
Total Payments
CPJ
Details
Fol
1 850
Trading Stock B2
Month
June
Day
30
Details
Bank
Fol
CPJ
Amount
Month
10 500
Bank B3
Month
Day
Details
Fol
Amount
Month
June
30
16 406
Nominal Section
Wages N4
Month
June
Day
30
Details
Bank
Fol
Amount
Month
CPJ
33
Day
Amount
Stationery N5
Month
June
Day
30
Details
Bank
Fol
Amount
Month
Day
Details
Fol
Amount
Day
Details
Fol
Amount
Day
Details
Fol
Amount
CPJ
Advertising N6
Month
June
Day
25
Details
Bank
Fol
CPJ
Amount
Month
500
Rent Expense N7
Month
June
Day
30
Details
Bank
Fol
CPJ
Amount
Month
2 000
The total of the bank column which represents money spent is posted to the credit or minus
side of the bank account. All assets get smaller on the credit side.
The total of the trading stock column represents the total trading stock bought during the
month. This total is posted to the debit (plus) side of the asset Trading Stock.
The total of the wages column records the total wages (expense) for the month. This is
posted to the wages account on the debit side. Expense accounts get bigger when more is
paid.
The total of the stationery column records the total stationery (expense) bought during the
month. This is posted to the debit (plus) side of the stationery account, an expense. Expense
accounts get bigger when more is paid, this is recorded on the debit side of the account.
In the sundry column we record both the purchase of expenses and assets that do not have
a column of their own. The amounts in the sundry column are all posted to the debit side of
the relevant account. Both asset and expense accounts get bigger on the debit side.
Additional Activity five
1.
2.
3.
4.
5.
6.
7.
What is the common abbreviation for the Cash Payments Journal?
What is the posting rule for posting the Cash Payments Journal of a
retailer.
What is the posting method for the Cash Payments Journal?
What is the definition of an Asset?
What type of accounts make up the Balance Sheet Section in the General
Ledger?
What type of accounts make up the Nominal Section in the General
Ledger?
What is the source document for the Cash Payments Journal?
Answers
1
CPJ
34
2
Credit the Bank Account and Debit all other accounts.
3
Start by posting the Bank Column to the Bank Account, then move from
left to right posting the columns to their accounts. Once that is done,
post the sundry accounts column from top to bottom.
4
Things that belong to a business – have value.
5
Assets, Capital, Drawings, Liabilities
6
Income, Expenses
7
Cheque counterfoil
Additional Activity Six
Instructions:
Post the Cash Payments Journal of Croxley Traders to the General Ledger of
Croxley Traders for the month of January 2012.
Cash Payments Journal of Croxley Traders for January 2012
Doc
Day
001
1
002
Details
Sooper Supplies
Bank
5 000
Kantoor King
003
3
Steer Properties
004
5
DKMY Agents
005
7
Jiang Ming Exports
006
Cash
Trading
Stock
Wages
Stationery
Sundry accounts
Amount
Details
5 000
300
300
80 000
80 000
Land and Buildings
1 500
1 500
Advertising
Equipment
10 000
10 000
8 000
8 000
007
12
Office Suppliers
250
250
008
19
Sooper Supplies
6 500
009
25
Business Partners
2 500
2 500
010
27
Municipality
450
450
011
30
Cash
6 500
8 000
122 500
CR
Water and
Electricity
8 000
21 500
16 000
DR
DR
35
550
DR
84 450
DR all of these accounts
General Ledegr of Croxley Traders Month of January 2012
Balance Sheet Section
Land and Buildings B3
Month
Jan
Day
3
Details
Bank
Fol
CPJ
Amount
Month
Day
Details
Fol
Amount
Day
Details
Fol
Amount
Day
Details
Fol
Amount
Day
Details
Fol
Amount
Total Payments
CPJ
122 500
Day
Details
Fol
Amount
Day
Details
Fol
Amount
Day
Details
Fol
Amount
Details
Fol
Amount
80 000
Equipment B4
Month
Jan
Day
25
Details
Bank
Fol
CPJ
Amount
Month
2 500
Trading Stock B5
Month
Jan
Day
31
Details
Bank
Fol
CPJ
Amount
Month
21 500
Bank B6
Month
Day
Details
Fol
Amount
Month
Jan
31
Nominal Section
Wages N4
Month
Jan
Day
31
Details
Bank
Fol
CPJ
Amount
Month
16 000
Stationery N5
Month
Jan
Day
31
Details
Bank
Fol
CPJ
Amount
Month
550
Advertising N6
Month
Jan
Day
5
Details
Bank
Fol
CPJ
Amount
Month
1 500
Water and Electricity N7
Month
Jan
Day
27
Details
Bank
Fol
CPJ
Amount
Month
450
36
Day
Posting to the General Ledger from both the Cash Receipts and Cash
Payments Journals.
In the real world, a business would post both the Cash Receipts Journal and the
Cash Payments Journal to the same General Ledger each month. This monthly
posting accumulates into annual totals for each of the accounts. This will be
explored in detail in the coming chapters.
There is no real difference when posting both journals, we simply post one
journal to completion, and then post the other. The same posting rules and
methods apply.
Study the example below, take note that the Bank and Trading Stock accounts
have entries on both the debit and the credit sides. These entries will be shown
opposite one another, on the same line. Both accounts are assets, and thus the
debit entry shows an increase and the credit entry a decrease.
Dealing with Cost of Sales and Trading Stock:
This is one area of posting that learners often struggle with, but if you
remember the basics and think about what is happening in the real world, you
will be fine. In the real world, stock goes into the store room (when it is
bought) and leaves the store room (when it is sold). This needs to be shown as
a plus and a minus on the Trading Stock account.
Trading Stock B5
Month
June
Day
30
Details
Bank
Fol
CPJ
Amount
Month
12 000 June
Day
30
Details
Fol
Cost of Sales
CRJ
Amount
8 540
Stock Sold
Stock Bought
The stock that is sold, is being used to make a profit, it therefore needs to be converted from
an asset (Trading Stock) into the expense, Cost of Sales
Cost of Sales N2
Month
June
Day
30
Details
Fol
Trading Stock
CRJ
Amount
Month
8 540
37
Day
Details
Fol
Amount
Worked Example:
Cash Receipts Journal of EX Ample Traders for July 2012
Doc
22
23
Day
Details
Analysis
Bank
Sales
Cost of
Sales
3
Cash
300
300
300
200
7
Cash
600
600
600
400
14
E. Ample
25 000
25 000
24
Cash
1 200
1 200
30
I. O. Yoo
3 500
24
ABC Bank
34
1 200
Sundry accounts
Amount
25 000
Capital
3 500
Rent Income
800
3 534
34
30 634
2 100
Dr
Cr
Details
1 400
Dr Cost of
Sales and
Cr Trading
Stock
Interest Received
28 534
Cr all these accounts
Cash Payments Journal of EX Ample Traders for 2012
Details
Trading
Stock
Doc
Day
Bank
001
1
M.mart
002
5
Pens n stuff
003
6
Cash
1 500
004
9
M.mart
4 500
005
14
Cash
1 500
006
19
E-Quip
1 850
007
23
PNA
250
008
25
Cape Lines
009
30
Peer & Co
6 000
Wages
Stationery
Sundry accounts
Amount
Details
6 000
156
156
1 500
4 500
1 500
1 850
Equipment
500
500
Advertising
2 000
2 000
Rent Expense
250
16 406
10 500
CR
DR
3 000
406
DR
DR
2 500
DR all of these accounts
General Ledegr of EX Ample Traders for the Month of July 2012
Balance Sheet Section
Capital B1
Month
Day
Details
Fol
Amount
Month
June
Day
14
Details
Bank
Fol
CRJ
Amount
25 000
Equipment B3
Month
June
Day
19
Details
Bank
Fol
CPJ
Amount
Month
1 850
38
Day
Details
Fol
Amount
Trading Stock B2
Month
June
Day
30
Details
Bank
Fol
CPJ
Amount
10 500
Month
June
Day
30
Details
Cost of Sales
Fol
CRJ
Amount
1 400
Bank B3
Month
June
Day
30
Details
Total Receipts
Fol
CRJ
Amount
30 634
Month
June
Day
30
Details
Total
payments
Fol
CPJ
Amount
16 406
Nominal Section
Sales N1
Month
Day
Details
Fol
Amount
Month
June
Day
30
Details
Bank
Fol
CRJ
Amount
2 100
Cost of Sales N1
Month
June
Day
30
Details
Fol
Trading Stock
CRJ
Amount
Month
Day
Details
Fol
Amount
1400
Wages N4
Month
June
Day
30
Details
Bank
Fol
CPJ
Amount
Month
Day
Details
Fol
Amount
Day
Details
Fol
Amount
Day
Details
Fol
Amount
Day
Details
Fol
Amount
3 000
Stationery N5
Month
June
Day
30
Details
Bank
Fol
CPJ
Amount
Month
406
Advertising N6
Month
June
Day
25
Details
Bank
Fol
CPJ
Amount
Month
500
Rent Income N3
Month
Day
Details
Fol
Amount
Month
June
30
Bank
CRJ
3 500
Interest Received N4
Month
Day
Details
Fol
Amount
Month
June
39
Day
30
Details
Bank
Fol
CRJ
Amount
34
Activity 10
You are provided with information from the Books of Dutch Traders, a new
business started in November 2012.
Instructions:
Use the Cash Journals Provided to prepare the General Ledger of Dutch Traders
for the month of November 2012.
Cash Receipts Journal of Dutch Traders for November 2012
Doc
Day
001
1
Van Dutch
3
002
Details
Analysis
Bank
Sales
Cost of
Sales
150 000
150 000
Cash
5 800
5 800
5 800
4 000
6
Cash
3 770
3 770
3 770
2 600
15
Cash
8 700
8 700
8 700
6 000
20
I. O. Yoo
4 350
4 350
4 350
3 000
23
SABSA Bank
12.50
12.50
30
Cash
003
14 500
I.O. Yoo
4 000
Amount
150 000
14 500
Details
Capital
12.50
Interest Received
4 000
Rent Income
10 000
18 500
191 132.50
Sundry accounts
37 120
25 600
154 012.50
Cash Payments Journal of Dutch Traders for November 2012
Doc
Day
001
1
002
Details
Bank
Trading
Stock
Wages
Stationery
Sundry accounts
Amount
Details
Smith Wholesale
7 500
Business Supplies
3 000
3 000
Stationery
2 500
2 500
Advertising
003
5
Media 25
004
6
Micro
Manufactures
10 000
005
10
Baker Street
100 000
006
14
Cash
007
17
.Com Suppliers
850
008
18
Smith Wholesale
12 000
009
19
Eskom
010
21
Cash
011
30
Municipality
8 000
7 500
10 000
100 000
8 000
850
12 000
675
8 000
675
Water and
Electricity
565
Rates and
Services
8 000
565
153 090
Land and Buildings
16 000
40
29 500
850
106 740
General Ledger of Dutch Traders for the Month of November 2012
Balance Sheet Section
Capital B1
Month
Day
Details
Fol
Amount
Month
Nov
Day
1
Details
Bank
Fol
Amount
CRJ
150 000
Land and Buildings B3
Month
Nov
Day
10
Details
Bank
Fol
Amount
CPJ
100 000
Month
Day
Details
Fol
Amount
Day
Details
Fol
Amount
Trading Stock B2
Month
Nov
Day
30
Details
Bank
Fol
CPJ
Amount
Month
29 500 Nov
30
Cost of Sales
CRJ
25 600
Bank B3
Month
Nov
Day
30
Details
Total Receipts
Fol
CRJ
Amount
Month
191 132 Nov
Day
30
Details
Fol
Amount
Total Payments
CPJ
153 090
Details
Fol
Amount
Nominal Section
Sales N1
Month
Day
Details
Fol
Amount
Month
Nov
Day
30
Bank
CRJ
37 120
Cost of Sales N1
Month
Nov
Day
30
Details
Fol
Trading Stock
CRJ
Amount
Month
Day
Details
Fol
Amount
25 600
Wages N4
Month
Nov
Day
30
Details
Bank
Fol
CPJ
Amount
Month
Day
Details
Fol
Amount
Day
Details
Fol
Amount
16 000
Stationery N5
Month
Nov
Day
30
Details
Bank
Fol
CPJ
Amount
Month
3 850
41
Advertising N6
Month
Nov
Day
5
Details
Bank
Fol
CPJ
Amount
Month
Day
Details
Fol
Amount
Details
Fol
Amount
Day
Details
Fol
Amount
Day
Details
Fol
Amount
2 500
Water and Electricity N7
Month
Nov
Day
19
Details
Bank
Fol
CPJ
Amount
Month
Day
675
Rates and Services N8
Month
Nov
Day
30
Details
Bank
Fol
CPJ
Amount
Month
565
Rent Income N9
Month
Day
Details
Fol
Amount
Month
Nov
30
Bank
CRJ
4 000
Interest Received N10
Month
Day
Details
Fol
Amount
Month
Nov
42
Day
23
Details
Bank
Fol
CRJ
Amount
12.50
Activity 11
Study the ledger accounts provided and answer the questions that follow.
Questions:
1.
What Folio number has been assigned to the Trading Stock Account? B2
2.
Are the Trading Stock and Bank examples of Income, Expense, Liability or
Asset Accounts? Asset
3.
How much Trading Stock was bought during the month? R16 800
4.
How much trading stock was sold during the month? R9 865
5.
How much trading stock is there left in the store room? R6 935
6.
How much money did this business receive this month? R44 689
7.
How much money did this business spend this month? R36 894
8.
How much money does this business have in their bank account at the
end of the current month? R7 795
9.
Does the bank account tell us whether the business has made a profit?
No. Company tax has not been deducted.
10. How much trading stock will this business have on 1 December 2012?
R6 935
Trading Stock B2
Month
Nov
Day
30
Details
Bank
Fol
Cpj
Amount
16 800
Month
Nov
Day
30
Details
Cost of Sales
Fol
Crj
Amount
9 865
Bank B3
Month
Nov
Day
30
Details
Total Receipts
Fol
Crj
Amount
44 689
Month
Day
Details
Fol
Nov
30
Total Payments
Cpj
43
Amount
36 894