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Grade 10 Preparation 2015

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