CURRICULUM FET
ACCOUNTING
TUTOR MATERIALS
TERM ONE 2024
BACK ON TRACK PROGRAMME
GRADE 10
TOPIC 1: THE ACCOUNTING EQUATION
DATE: 2 MARCH 2024
BASELINE ASSESSMENT: TRANSACTION ANALYSIS
Use the transactions below to complete the analysis of transactions table. See
the format and example below:
Example: Paid the business telephone account by EFT, R800.
No.
E.g.,
GENERAL LEDGER
Account to be
Account to be
Credited
Debited
Telephone
Bank
ACCOUNTING EQUATION
Assets =
Owners’ Liabilities
Equity +
- 800
- 800
0
Transactions:
1.
The owner decided to increase his capital contribution by depositing R30 000
directly into the current banking account of the business.
2.
Received a direct deposit of R500 from a debtor in full settlement of their
account.
3.
Cash sales amounted to R6 440 (cost price, R4 600).
4.
Made an EFT to settle our account with our creditor, R7 500.
5.
Paid the weekly wages by EFT, R1 000.
6.
Credit sales to a debtor, R1 680 (profit mark-up is 40% on cost price).
7.
Received a direct deposit from the tenant for rent income, R3 750.
8.
Bought trading stock on credit from a creditor, R5 000.
9.
Bought stationery on credit from a creditor, R750.
2
ACTIVITY 1: ACCOUNTING EQUATION
The following information appeared in the accounting records of Mug Stores for
the month of January 2023.
REQUIRED:
Use the information below to complete the table provided in your Answer Book.
(NOTE: Bank balance is favourable at all times.)
Example: Rent received from tenant Nathee Mbane, R14 500.
Accounting
Equation
GENERAL LEDGER
ACCOUNT TO BE
DEBITED
No.
E.g. Bank
ACCOUNT TO BE
DEBITED
Rent Income
Amount
A=
OE +
L
14 500
+
+
0
INFORMATION
1.
Goods sold on credit to A. Lwethu, R9 200. Cost of sales R4 600.
2.
Cash deposit fees for R400 and credit card levy R120 appeared in the bank
statement.
3.
Interest charged on overdue debtor’s account amounted to R230.
4.
An amount of R5 700 was paid for repairs to the motor vehicle.
5.
Stationery was purchased for R320 cash.
ACTIVITY 2: ACCOUNTING EQUATION
Use the transactions below to complete the analysis of transactions table. See the
format and example below:
Example: Paid the businesses telephone account by EFT, R800.
GENERAL LEDGER
No.
E.g.
ACCOUNT TO BE
DEBITED
Telephone
ACCOUNT TO BE
CREDITED
Bank
3
Amount
800
Accounting
Equation
A = OE +
L
-
-
0
Transactions:
1.
Purchased trading stock on credit from DDX Suppliers for R4 200.
2.
EFT was made to Stand Bank for R18 800. R17 000 is in repayment of the loan
and the remainder is for interest for the last six months.
3.
Received a bank statement from Stand Bank and noted that the following
appeared on the bank statement:
• Bank charges, R275
• Interest on current account, R40
• A debit order for the payment of the annual insurance premium of
R5 200.
4.
A debtor, S Rocks, requested an allowance of R120 on goods that were
damaged while they were being transported.
5.
Paid Fast Lane Transporters R300 by EFT, for transporting stock purchased to our
store.
6.
Received R720 cash from D Bell whose account had previously been written off
as a bad debt.
7.
Bought the equipment on credit from Hendry Suppliers, R20 000.
BASELINE ASSESSMENT: GENERAL JOURNAL TRANSACTIONS
The following transactions were taken from the records of Glynis Stores
during June 2023.
REQUIRED:
Analyse the following transactions according to the Accounting Equation A= OE + L
Indicate which account will be debited and credited in the General Ledger.
INFORMATION:
1.
Interest on the overdue account of M. Jara must be charged at 12% p.a. His
balance of R2 800 is three months in arrears.
2.
Write off the account of J. Jan as irrecoverable, R500.
3.
The owner took stock, with a cost price of R1 500, for personal use.
4.
The owner donated stock, R990 (cost price) to a Children’s Home. It was
mistakenly debited to Drawings.
5.
Transferred C Carl’s credit balance, R400 in the Debtors Ledger to her account in
the Creditors Ledger.
4
ACTIVITY 3: ACCOUNTING EQUATION
Analyse the given transactions. See the format and example below:
Example: Write off the account of a debtor as irrecoverable, R500
GENERAL LEDGER
No.
E.g.
Account to be
debited
Bad debts
Account to be
credited
Debtor’s Control
Amount
500
Accounting
Equation
A =
OE +
-
-
L
0
INFORMATION:
The following transactions are from the books of Larah Traders who applies 100%
mark up on trading stock.
1.
B. Good (debtor) is declared insolvent. His insolvent estate paid a first and
final dividend of 20 cents in the rand per EFT (electronic funds transfer),
R292. Write off the balance as irrecoverable.
2.
The owner took stock, with a selling price of R1 500, for personal use.
3.
Charged debtor A. Andy 10% p.a. interest on her overdue account of
3 months. She owed R600.
4.
Transfer M. Salah’s debit balance, R400 from the Debtors Ledger to the
Creditors Ledger.
5.
Received an EFT payment from AB Bank for R11 000, for a fixed deposit of
R10 000 that matured on 30 January 2021. The full amount was entered in
the Fixed Deposit account. Correct the error.
5
ACTIVITY 4: ACCOUNTING EQUATION
Use the transactions below to complete the analysis of transactions table. See the
format below:
GENERAL LEDGER
No.
Account to be
debited
Account to be
credited
Amount
Accounting
Equation
A =
OE +
L
INFORMATION:
The following transactions relate to Kolisi Traders. They maintain a profit mark up of
50% mark up on cost.
1.
Siya Kolisi, the owner, took stationery (R130) and trading stock (selling price
R960) for personal use.
2.
C. Candice, a debtor owing R430, must be written off as irrecoverable.
3.
Kolisi Traders failed to pay their account of R8 820 with NO.1 Dealers on
time. Interest for two months at 10% p.a. must be brought into account.
4.
Repairs of R20 000 was done to the roof of the building. This was entered in
the Land and Buildings account in error.
5.
B. Patient, whose account was previously written off as bad debt, settled his
outstanding account of R1 250. This receipt was entered in the Debtors
Control column of the Cash Receipts Journal in error
6
TOPIC 1: INFORMAL ASSESSMENT
ACCOUNTING EQUATION
(19 marks; 15 minutes)
The information pertains to Jozi Stores. Transactions were taken from their May 2023
records.
REQUIRED:
1.
Analyse each transaction according to the table given in the Answer book. Show
an increase with a + and a decrease with a - Show no effect with a 0.
(19)
INFORMATION:
No.
Account to be
debited
Account to be
credited
1.
Bought trading stock on credit for R50 000.
2.
Sold goods on credit, R21 000. Applied the mark-up policy of 50%.
3.
Borrowed R70 000 from VBS Bank at an interest rate of 12% p.a.
4.
The owner took trading stock for own use, R1 200 (Cost price).
5.
Stationery was incorrectly recorded as trading stock purchased, R500.
Amount
7
Assets
Owners’
equity
Liabilities
TOPIC 2: THE GENERAL LEDGER
DATE: 16 MARCH 2024
BASELINE ASSESSMENT: GENERAL LEDGER
Indicate the contra account in each of the following ledger accounts:
TRANSACTIONS
Took delivery of trading
stock purchased from
ABC Suppliers, R36 000.
Purchase are subject to
5% trade discount.
Dr
Debit order payment to
the municipality for
municipality expenses,
R4 123.
Dr
Cr
Bank
The owner (Ms Mbane)
deposited R5 000 as
additional capital.
Dr
Bank
Cr
(D)
The Bank statement
from IOU Bank showed
the following: Service
fees R576; Cash deposit
fees R84; Credit card
levy R402; Interest on
overdraft R1 228.
Dr
Bank charges
Dr
(E)
Cr
(F)
Received R50 000 from
BT Bank. It was for a loan
negotiated at 10% p.a.
interest.
Dr
(G)
Cr
Loan: BT Bank
Cash sales to date
R6 210; the mark-up is
50% (CRT 4).
Dr
Dr
Cr
Cr
(H)
Cost of sales
Sales
(I)
Cr
(A)
Calculation of trade discount
(B)
Bank
(C)
Calculation for cost of sales
(J)
8
ACTIVITY 5: GENERAL LEDGER ACCOUNTS
REQUIRED:
Use the information below to prepare the TRADING STOCK account in the General
Ledger of Inga Traders for March 2023.
INFORMATION:
Balance on 1 March 2023: Trading Stock R53 000
The following are the extracts of various subsidiary journals for March 2023:
Cash Receipts Journal of Inga Traders for March 2023
Bank
Sales
Cost of sales
110 300
102 000
76 000
CRJ1
Sundry accounts
8 300
Cash Payments Journal of Inga Traders for March 2023
Bank
Trading Stock
Creditors Control
96 900
2 900
520
CPJ1
Sundry accounts
800
Debtors Journal of Inga Traders for March 2023
Sales
174 000
DJ1
Cost of sales
99 000
Debtors Allowances Journal of Inga Traders for March 2023
Debtors Allowances
Cost of sales
19 450
16 300
DAJ1
Creditors Journal of Inga Traders for March 2023
CJ1
Creditors Control
Trading Stock
Consumable Stores
233 000
210 000
9 000
Creditors Allowances Journal of Inga Traders for March 2023
Creditors Control
Trading Stock
Consumable Stores
15 500
14 250
300
9
Sundry
accounts
14 000
CAJ1
Sundry
accounts
1 000
ACTIVITY 6: GENERAL LEDGER ACCOUNTS
Use the information given below to prepare the Trading stock, Debtors’ Control,
Creditors’ Control, Stationery and Discount Allowed accounts in the General Ledger
of Van Niekerk Sport Stores.
INFORMATION:
Balances on:
1 April 2023
Trading Stock
R153 200
Debtors’ Control
R102 500
Creditors’ Control
R140 500
Stationery
R18 600
Discount allowed
R16 725
Summary of information obtained from certain subsidiary journals for April 2023.
Cash Receipts Journal
Bank
Sales
Cost of sales
Debtors’ control
Discount allowed
Sundry accounts
R300 400
140 600
90 125
160 500
7 000
6 300
Cash Payments Journal
Bank
Trading stock
Creditors’ control
Discount received
Stationery
Sundry accounts
R196 500
83 200
100 235
3 045
9 025
7 085
Debtors’ Journal
Sales
Cost of sales
R241 120
150 700
Debtors’ Allowances Journal
Debtors’ allowances
Cost of sales
R16 200
10 125
Creditors’ Journal
Creditors control
Trading stock
Equipment
Stationery
Packaging
Creditors’ Allowances Journal
Creditors control
R8 890
Trading stock
6 050
Stationery
620
Packaging
150
R120 850
60 000
50 000
8 050
1 220
Information extracted from the General Journal
(a)
Trading stock purchased during April 2014, R1 250 was incorrectly recorded in the
Stationery column in the Cash payments Journal and posted as such. Correct the error.
(b)
The owner took trading stock for her own use during April, R3 800.
(c)
Debtors’ control
Journal debits
Journal credits
Creditors’ control
Journal debits
Journal credits
R200
R875
10
R1 450
2 700
ACTIVITY 7: GENERAL LEDGER ACCOUNTS
REQUIRED:
Use the given information to post to the following accounts in the General Ledger
of Topley Traders. Close off the accounts in the balance sheet section.
Balances on 1 April 2023:
Trading Stock
Debtors' Control
Creditors' Control
Sales
Cost of Sales
Debtors' Allowances
Stationery
B6
B7
B8
N1
N2
N3
N4
R102 500
76 250
68 440
213 225
142 150
8 300
3 800
Note: Goods are sold at cost plus 50%.
The following totals appeared in the journals as on 31 April 2023:
Cash Receipts Journal of Topley Traders – April 2023
Debtors’
Bank
Sales
Cost of sales
control
144 600
74 400
64 680
?
Cash Payments Journal of Topley Traders – April 2023
Trading
Creditors’
Bank
Stock
Stationery
control
140 800
3 240
47 500
?
Debtors’ Journal of Topley Traders – April 2023
Sales
Cost of sales
42 100
?
Discount
allowed
2 390
CRJ2
Sundry
accounts
7 910
Discount
received
1 300
CPJ2
Sundry
accounts
22 400
DJ2
Debtors’ Allowances Journal of Topley Traders – April 2023 DAJ2
Debtors’ Allowances
Cost of sales
780
520
Creditors’ Journal of Topley Traders – April 2023
Creditors’ Control
?
Trading Stock
50 300
Stationery
7 350
11
CJ2
Sundry
Accounts
2 450
Creditors’ Allowances Journal of Topley Traders – April 2023
Creditors’ Control
1 415
Trading Stock
850
CAJ2
Sundry
Accounts
475
Stationery
90
General Journal of Topley Traders – April 2023
GJ2
Debtors’ control
Creditors’ control
Debit
Credit
Debit
Credit
320
1 350
365
180
TOPIC 2: INFORMAL ASSESSMENT
GENERAL LEDGER
(20 marks; 15 minutes)
The information pertains to Jozi Stores. Transactions were taken from their May 2023
records.
REQUIRED:
1.
Post the transactions to the selected ledger accounts provided in the Answer
Book.
(20)
NOTE: First enter the initial balances/totals in the ledger accounts.
INFORMATION:
A. Balances / Total on 1 May 2023:
Debtor’s control
R7 200
Creditor’s control
10 400
Bank
6 000
Trading stock
8 000
Do NOT balance or close off the accounts at the end of the month.
NB: Accept a favourable bank balance throughout.
1.
Bought trading stock on credit for R50 000.
2.
Sold goods on credit, R21 000. Applied the mark-up policy of 50%.
3.
Borrowed R70 000 from VBS Bank at an interest rate of 12% p.a.
12