GAUTENG DEPARTMENT OF EDUCATION SENIOR SECONDARY INTERVENTION PROGRAMME
ACCOUNTING
Grade 10
Session 9
LEARNER SET
CREDITORS AND ALLOWNACES
Learner Note: Although you may have done this work in a previous grade, in grade 10 new entries are
made
SECTION A: TYPICAL EXAM QUESTIONS
HINTS
Entries for cash payments and discount received:
The cash paid and the discounts received are both recorded in the CPJ. There is a special
column allocated for this: Creditors Control which is split in two: one for the Payment (the
actual amount paid after the discount is deducted) and the other for the Discount received. Or
an alternative format is to enter the full amount to be written off the creditors account (money
and discount) in a creditors control column and the discount in a discount received column.
The triple entry principle applies:

Cash payment to the creditor:
Dr Creditors control – liabilities decrease
Dr the individual creditor in the Creditors Ledger – liabilities decrease
Cr Bank – assets decrease (if overdraft - liabilities increase)

Discount received from the creditor:
Dr Creditors control – liabilities decrease
Dr the individual creditor in the Creditors Ledger – liabilities decrease
Cr Discount received – income increases
Calculation of discounts received:




Discounts are sometimes stated as a percentage:
Settle a creditor’s account of R200 less 5%:
Amount paid is R190; discount received R10.
The amount of the discount may be stipulated:
Paid a creditor R150 towards his account; discount R12:
Amount paid is R150; discount received R12.
The amount of the discount may not be stipulated:
Settle a creditor’s account of R300 with a cheque for R280:
Amount paid is R280; discount received R20.
The amount paid is subject to discount:
Paid a creditor R500. This payment is subject to a 10% discount:
Amount paid is R450; discount received R50.
Page 1 of 9
GAUTENG DEPARTMENT OF EDUCATION SENIOR SECONDARY INTERVENTION PROGRAMME
ACCOUNTING
Grade 10
Question 1: 76 MARKS
Session 9
LEARNER SET
45 MINUTES
Required
Prepare the following in the books of Bees Shop for April 2009.
1. CJ, CAJ and CPJ.
Provide for the following additional columns in CJ and CAJ: Trading stock; Equipment;
Stationery
2. Post to the following accounts in the General Ledger. (Opening balances/totals are supplied in
brackets).
3.1 Creditors control
(R48 950)
3.2 Discount received
(R2 980)
3. Post to the Creditors ledger.
4. Extract a Creditors List on 30 April 2009
Information
Creditors List on 31 March 2009
Nowy & Co.
R16 480
Fedpro Supplies
31 560
Padia Services
910
Transactions
05 Paid FedproSupplies by cheque (C92) R14 000; discount R700.
09 Bought merchandise on credit from Nowy & Co. R400. (Inv. X4)
10 Bees Shop complained to Nowy & Co. that the trade discount of R40 was not deducted on the
invoice issued on the 09th. Sent them D/N (J9) for this amount.
12 Settled the amount owing to Nowy & Co. on 01 April 2009 less 7½ % discount. This payment was
made by electronic transfer.
15 Received the equipment R1 200 and stationery R800 ordered on credit from Fedpro Supplies.
(Inv. B2)
17 Returned R150 worth of stationery to Fedpro Supplies as it was unsuitable. Issued a D/N. (J10)
20 Padia Services undertook repairs to the refrigerators for Bees Shops R190. Received a credit
invoice from them. (Inv. V12)
30 Paid the R910 owing from the previous month to Umeg Suppliers. (Cheque no. C93).
Settled the amount owing to Fedpro Supplies less 10% discount. This payment was made
electronically.
Page 2 of 9
GAUTENG DEPARTMENT OF EDUCATION SENIOR SECONDARY INTERVENTION PROGRAMME
ACCOUNTING
Grade 10
Session 9
LEARNER SET
SECTION B: SOLUTIONS AND HINTS
HINTS
Make learners aware of the triple entry principal
Emphasise the double entries when posting to the ledger
Make sure you are able to calculate the discount
Balance sheet accounts must be balanced and nominal accounts must be totalled
BEES SHOP
CASH PAYMENTS JOURNAL – APRIL 2009
Doc
no
C92
B/S
C93
B/S
D
Details
05 Fedpro
Supplies
12 Nowy& Co.
30 Umeg Suppliers
Fedpro
Supplies
Tradi
ng
stoc
k
CPJ1
Debt
ors Creditors
cont Control
rol
Sundry accounts
Dis-count
Amo
Re-ceived
Fol
unt
Fol
Bank
CL2
CL1
CL3
CL2
14 000
15 244
910
16 839
14 700
16 480
910
18 710
700
1 236
1 871
46 933
50 800
3 807
B7
N9
CREDITORS JOURNAL – APRIL 2009
Inv
D
no
Creditor
Fol
Creditors
control
X4 09 Nowy& Co.
CL1
400
B2 15 Fedpro
CL2 2 000
Supplies
V1 24 PadiaServices CL3
190
2
2 590
Details
CJ1
Trading
stock
Equipment
Station- Sundry accounts
ery
Amount Fol Details
400
1 200
800
190
400
1 200
800
Repairs
190
B7
CREDITORS ALLOWANCES JOURNAL – APRIL 20.9
Inv
D
no
Creditor
J9 10 Nowy & Co.
J10 17 Fedpro
Supplies
Fol
Creditors
control
Trading
stock
CL1
CL2
40
150
40
190
40
CAJ1
Equipment
Sundry
Stationaccounts
ery
Amount Fol
Details
150
-
150
B7
Page 3 of 9
GAUTENG DEPARTMENT OF EDUCATION SENIOR SECONDARY INTERVENTION PROGRAMME
ACCOUNTING
Grade 10
Session 9
LEARNER SET
GENERAL LEDGER OF BEES SHOPS
BALANCE SHEET ACCOUNTS SECTION
Dr
CREDITORS CONTROL
B7
2009
2009
April 30 Bank and
April 01 Balance
b/d
Discount received CPJ1 50 800
30 Sundry accounts** CJ1
Sundry accounts* CAJ1
190
Balance
c/d
550
51 540
May
01 Balance
Cr
48 950
2 590
51 540
550
b/d
*Or ‘Total allowances’
**Or ‘Total purchases’
NOMINAL ACCOUNTS SECTION
DISCOUNT RECEIVED
N9
2009
April 01 Total
30 Creditors control
Pencil foot
2 980
3 807
6 787
b/f
CPJ1
BEES SHOPS
CREDITORS LEDGER – APRIL 2009
-
Nowy & Co.
Date
2009
April
01
09
10
12
CL1
Details
Fol
Balance
Inv. X4
D/N J9
Electronic transfer
Discount
b/d
CJ1
CAJ1
CPJ1
CPJ1
Fedpro Supplies
2009
April
01 Balance
05 Cheque C92
Discount
15 Inv. B2
17 D/N J19
30 Electronic transfer
Discount
Padia Services
2009
April
01 Balance
24 Inv. V12
30 Cheque C93
Debit
Credit
400
40
15 244
1 236
Balance
16 480
16 880
16 840
1 596
360
CL2
b/d
CPJ1
CPJ1
CJ1
CAJ1
CPJ1
CPJ1
14 000
700
2 000
150
16 839
1 871
31 560
17 560
16 860
18 860
18 710
1 871
CL3
b/d
CJ1
CPJ1
190
910
910
1 100
190
Page 4 of 9
GAUTENG DEPARTMENT OF EDUCATION SENIOR SECONDARY INTERVENTION PROGRAMME
ACCOUNTING
Grade 10
Session 9
LEARNER SET
CREDITORS LIST ON 30 APRIL 2009
Creditor
Fol
Amount
Nowy & Co.
CL1
360
Fedpro Supplies
CL2
Padia Services
CL3
190
550
Learner Note: You should realise that the creditors control account and the creditors should be in balance at all
times
SECTION C: ADDITIONAL CONTENT NOTES
CREDITORS JOURNAL
A trader purchases stock and other items such as equipment for cash or on credit. Cash purchases
are recorded in the CPJ if payment was made with a cheque or PCJ if petty cash funds were used. All
credit purchases are recorded in the Creditors Journal (CJ). Any services acquired on credit (e.g.
repairs) are also recorded in the CJ. The source document for credit purchases is an invoice, which
he receives from his supplier.
Credit purchases has the following effect: the item (e.g. trading stock) purchased is debited;
Creditors are credited. Creditors are liabilities (amounts owing to a trader) and increase on the credit
side. The triple-entry principle applies: Creditors control is credited and the individual creditor is
credited in the Creditors Ledger.
Trade discounts
This is a discount allowed by one dealer to another. Trade discounts are allowed for cash or credit
purchases. The reasons for offering trade discounts vary from dealer to dealer. Some offer trade
discounts to promote bulk buying; to clear obsolete or slow moving stock; to promote/reward
customer loyalty; etc. The trade discount is calculated and subtracted from the invoice price – the
dealer records the net amount. No entry is made for the trade discount. Trade discounts should
not be confused with discounts that are granted for early settlement of accounts.
CREDITORS ALLOWANCES JOURNAL
The dealer may have to return items due to inferior quality, damaged goods, etc. He may also claim
an allowance on damaged goods or overcharges. Returns and allowances are recorded in the
Creditors Allowances Journal (CAJ). The trader sends a Debit Note (D/N) to his supplier indicating the
reasons for his claim. The supplier would issue a credit note (C/N) if he approves of the claim. The
source document for entries in the CAJ is either the debit note issued or the credit note received.
Page 5 of 9
GAUTENG DEPARTMENT OF EDUCATION SENIOR SECONDARY INTERVENTION PROGRAMME
ACCOUNTING
Grade 10
Session 9
LEARNER SET
SECTION D: HOMEWORK
Prepare the following journals in the books of Ebzo Traders (owner Mr E. Ebzo) for May 2009:
1.
CJ, CAJ and CPJ.
Provide for the following additional columns in the CJ and CAJ: Trading stock; Equipment;
Consumable stores; Maintenance and repairs.
2.
Post to the following accounts in the General Ledger. (Opening balances/totals are supplied
in brackets).
(a) Equipment
(R75 000)
(b) Trading stock
(R44 660)
(c) Creditors control
(R32 000)
(d) Discount received
(R500)
(e) Maintenance and repairs (R1 500)
3.
Post to the Creditors ledger.
4.
Extract a Creditors List on 31 May 2009.
Information
Creditors List on 30 April 2009
Fine Traders
Jigzo Stores
Slamo Limited
R11 500
18 000
2 500
Transactions: May 2009
03 Bought consumable stores for R400 and stock for R8 600 less 10% trade discount from Slamo
Limited. (Inv B52).
05 Paid R5 000 towards the account of Fine Traders. A cheque (no. C76) was issued.
06 Sent a D/N (no. D39) for R90 to Slamo Limited for damaged consumable stores returned.
07 Settled half the amount owing to Jigzo Stores less 5% discount. The payment was made
electronically.
10 Bought the following items on credit as per invoice no. T098 from Fine Traders:
Stock
R1 210
Consumables stores
240
Stationery
170
12 Claimed for an allowance of R120 on poor quality stock received from Fine Traders. A D/N (no.
D40) was sent to them.
15 Settled the amount owing to Slamo Limited on 01 May 20.9. The payment of R2 250 was
electronically transferred to their account.
17 Jigzo Stores also undertake a repair service. Received an invoice (no. Y21) for R490 for repair
work done on the printer.
18 The owner Mr E.Ebzo checked invoice no. Y21 received on the 17th. He established that the
labour charge was R50 above the standard rate. A D/N (no. D41) was dispatched to them.
20 Fine Traders imported stock on behalf of Ebzo TRaders from London. The invoice price of the
goods was £200. Customs duty amounted to R90. The exchange rate is assumed at £1 = R10.
Ebzo TRaders received invoice T130 for the total cost of the goods).
25 Bought three large display calculators from Slamo Limited on credit. The cost price of each
calculator was R120 (after deduction of the trade discount). (Inv. B99)
26 Sent back one calculator to Slamo Limited because the display was defective. D/N no. D42 as
issued.
Page 6 of 9
GAUTENG DEPARTMENT OF EDUCATION SENIOR SECONDARY INTERVENTION PROGRAMME
ACCOUNTING
Grade 10
Session 9
LEARNER SET
30 Settled the entire amount owing to Jigzo Stores less 5% discount.
electronically
Payment was made
SECTION E: SOLUTIONS TO SESSION HOMEWORK
STONES STORES
CASH RECEIPTS JOURNAL – MARCH 2009 CRJ5
Doc.
no.
E9
E10
CRT
E11
E12
D Details
06
20
24
30
O. Nice
O. Nice
Sales
Analysis
of receipts
Fol
DL2
DL2
M. Moody DL1
O.Nice
DL2
195
200
600
800
798
Bank
Sales
Cost of
sales
195
200
600 600
800
798
2 593 600
Debtors
Control
Dis- Sundry accounts
count Amo
Fol Details
Allowed unt
200
200
5
-
840
840
450 2 080
40
42
87
450
N1 N2/B6
B7 N4/B7
CASH PAYMENTS JOURNAL FOR MARCH 2009
CPJ5
Doc
D Details
no
Creditors control Sundry accounts
PayDiscount
Amount Fol Details
ments received
Fol
Bank
Trading
stock
B/S 25 O. Nice(r/d) DL2 200
200
DEBTORS JOURNAL – MARCH 2009
Inv. No. D Debtor
Fol
BQ12
BQ13
BQ14
BQ15
05
12
24
28
O. Nice
M. Moody
M. Moody
O. Nice
Debtors
control
DL2
DL1
DL1
DL2
Sales
460
900
600
580
2 540
B7/N1
DEBTORS ALLOWANCES JOURNAL – MARCH 2009
Debtors
C/N No. D Debtor
Fol
Allowances
C12
07 O. Nice
DL2
80
C13
15 M. Moody
DL1
40
C14
29 O. Nice
DL2
120
240
N3/B7
DJ5
Cost of
sales
345
675
450
435
1 905
N2/B6
DAJ5
Cost of
sales
60
90
150
B6/N2
Page 7 of 9
GAUTENG DEPARTMENT OF EDUCATION SENIOR SECONDARY INTERVENTION PROGRAMME
ACCOUNTING
Grade 10
Session 9
LEARNER SET
Page 8 of 9
GAUTENG DEPARTMENT OF EDUCATION SENIOR SECONDARY INTERVENTION PROGRAMME
ACCOUNTING
Grade 10
Session 9
LEARNER SET
GENERAL LEDGER OF STONES STORES
BALANCE SHEET ACCOUNTS SECTION
Dr
TRADING STOCK
B6
2009
2009
Mar 01 Balance
b/d
9 600 Mar 31 Cost of sales
31 Cost of sales
DAJ5
150
Cost of sales
Balance
9 750
April
01 Balance
2009
Mar 01 Balance
31 Sales
Bank (r/d)
Cr
DJ5
CRJ5
c/d
7 395
b/d
DEBTORS CONTROL
B7
2009
b/d
500 Mar 31 Debtors allowances DAJ5
DJ5
2 540
Bank and 
CPJ5
200
discount allowed
CRJ5
Balance
c/d
3 240
April 01 Balance
b/d
- NOMINAL ACCOUNTS SECTION
COST OF SALES
2009
b/d
11 400 Mar 31 Trading stock
DJ5
1 905
CRJ5
450
2 080
 920
3 240
15 200
2 540
600
18 340
N2
DAJ5
150
13 605
Pencil foot
DEBTORS ALLOWANCES
2009
Mar 01 Total
31 Debtors control
Pencil foot
240
 920
SALES
N1
2009
Mar 01 Total
b/d
31 Debtors control
DJ5
Bank
CRJ5
2009
Mar 01 Total
31 Trading stock
Trading stock
1 905
450
7 395
9 750
b/d
DAJ5
N3
900
240
1 140
DISCOUNT ALLOWED
N4
2009
Mar 01 Total
31 Debtors control
Pencil foot
b/d
CRJ5
80
87
167
The SSIP is supported by
Page 9 of 9