GR 10 2021 T1 LESSON Booklet

Directorate: Curriculum FET
ACCOUNTING GRADE 10
LESSONS: TERM 1
Recovery ATP 2021
2021 National Recovery Annual Teaching Plan: Accounting Grade 10 – Term1
Grade 10 ACCOUNTING Term 1: Week1
Topic: Introduction to Ethics, Internal control & GAAP

You already know about ... The lesson will enable you to...
• basic Accounting concepts • Demonstrate knowledge of internal control processes,
• formal and Informal bookkeeping ethics and GAAP
• fraud, theft and crime and its implications for the
business
• rights and responsibilities of people involved in
the business
Use your TEXTBOOK to read about: Alternative digital resources:

Ethics; Internal control measures;
GAAP principles Gr 10 Study & Master Presentations:
Chapters 2 - 4
Ethics, GAAP and internal control
Pay specific attention to:
Why internal control processes? https://wcedeportal.co.za/eresource/180306
The need for a code of ethics
Ethical vs unethical behavior
GAAP principles
KEY CONCEPTS (find more information on these concepts in your text book)
• Code of Ethics
• Professional conduct in business
• Principles of ethics
• Internal control measures for cash, debtors, creditors, assets, etc.
• Generally Accepted Accounting Principles / Practices (GAAP)
1
ETHICS
Good ETHICS refer to ...
• knowing the difference between right and wrong
• principles
Judge Mervin King published his 'King Code I' report for
• values responsible and ethical corporate governance in 1994 which
• beliefs were recommended and implemented world wide.
The report was revised and King II was published in 2002,
King III in 2009 and King IV in 2016.
A CODE OF ETHICAL CONDUCT refers to:
• a set of guidelines designed to set out acceptable behaviors for members of a group, association, or
profession
• a set of rules and regulations that should regulate the behaviour of individuals in the business environment
IMPORTANCE OF ETHICS
• To minimise negative impact of fraud and poor management
• To avoid poor business practice
• To provide guidance to all stakeholders in a business
• To encourage responsible behaviour
• To promote accountability and transparency
BASIC PRINCIPLES OF GOOD (ethical) GOVERNANCE* (based on King Code III )

* (Governance is all about how a business should be controlled and managed having regard to the interests of its owners and
other stakeholders)
Discipline Commitment to good behaviour
To ensure that all business activities are honest, moral, just, honourable and ethical enough to
Transparency bear public scrutiny
Independence Be able to manage and avoid conflict of interest
To ensure that everyone in the business will be accountable/responsible for their actions.
Accountability Individuals is obliged to take responsibility / answer for the quality and accuracy of their actions
and conduct in the business
Actions / Conduct must always be socially and legally acceptable, and be executed with the
Responsibility least amount of risk for all stakeholders
Fairness All actions and decisions should be objective - based on facts and honesty without prejudice
Social responsibility To be aware of the business' responsibilities towards the community in which they operate
CHARACTERISTICS OF GOOD ETHICS

Fairness All actions and decisions should be objective - based on facts and honesty without prejudice
Objectivity There is no biasness when preparing the books of the business; to have no personal interest
when making business decisions
Professionalism It is always one’s duty to act professionally; ensure that actions do not reflect poorly on the
business / helpful / polite / apply your skills and knowledge to the best of your abilities / do tasks
to the benefit of the business - be proud of yourself and your work
Integrity Every employer and employee must perform his/her duties responsibly and honestly; standards
should be high and zero tolerance for bad service or work delivered
Confidentiality Information must not be shared or discussed outside the confines of the duty performed.
Certain work requires confidentiality.
Standards of Maintain the rules and regulations as determined per policy Kings Code of Ethics
behaviour
Conduct Employers and employees must adhere to the code of conduct of the workplace, e.g. arrive or
leave on time, dress code etc. (even if no one is 'looking')
2
INTERNAL CONTROL
Internal control refers to processes applied by the business.
NEED/Importance for internal control:

• It ensures:
o reliable financial reporting
o effective and efficient operations
o safeguard assets against theft and unauthorized use
o compliance with applicable laws and regulations
• It eliminates the possibilities of fraud and theft
• It promotes operational efficiency
Internal control procedures may include:
1. Division of duties (one employee serves as a check on another) ...
o is important for those activities involving authorization, ordering and receiving of goods / assets, and
recordkeeping
o creates a system of checks and balances as different individuals perform different functions in the
same process
o Example: The same person, responsible for the record keeping of stock should not be responsible for
the physical control of stock
2. Proper authorization of transactions / proper signatures on all documents (where applicable)

o Some transactions need the authority / at least two signatures / approval of a senior staff member(s)
o Payments made by EFT or from the petty cash have to be properly authorised by at least two
signatories to avoid fraud / theft
o It ensures that all business activities adhere to established guidelines
o Example: The order for stock may not be placed unless it is signed by the stock manager.
3. Accurate documentation & proper recording procedures

o Correct documents and the recording thereof provide evidence and a paper trail that correct
procedures were followed and that financial statements are accurate
o Example: Invoices, receipts, proof of payments, debit notes, credit notes, etc. that are easy to
use, that capture sufficient information about transactions and are pre-numbered for easy filing and
retrieval must be in use on a daily basis with the interactions with customers and suppliers.
4. Safeguarding of records and restricted access / Physical control measures of asset items
o Physical control over assets and records helps protect the business assets
o Examples: electronic or mechanical controls (a safe, ID cards, fences, cash registers, fireproof
files, locks, clock cards for timing employees paid per hour or day, etc.) AND/OR
computerised controls (scanners, bar coding, etc) dealing with access privileges or
establishing backup and recovery procedures for business data
5. Independent checks by internal auditors or senior employee
o Independent checks can be made on performance by someone who did not do the work him-/herself
o It ensure the reliability of accounting information and the efficiency of operations
o Example: a supervisor verifies the accuracy of a retail clerk's cash drawer at the end of the day
Internal auditors may also verify that the supervisor performed the check of the cash drawer
3
SPECIFIC INTERNAL CONTROLS:
CASH • Separate the duties of persons receiving money from the payment of money, e.g. EFTs must
TRANSACTIONS be approved by the person authorized to do so and not the person who performs the EFTs
• All cash received must be deposited daily as far as possible
• Receipts and EFTs must be recorded promptly into the cash journals and posted accordingly
• Journals should be totalled at the end of the month and reconciled with the bank statement
• Multiple quotations must be received for large amount expenses
PETTY CASH • Only personnel authorized to handle petty cash may do so
• Cash payments must only take place if a petty cash voucher is filled and authorized by the
person in higher authority
• Supporting documents must be collected and filed with the petty cash voucher
• An imprest system must be implemented.
DEBTORS • The business should have a written credit policy, communicated to all relevant sales staff
• Regular checks should be done on the recording of transactions with debtors
• Documents should be properly entered and recorded in the journals and posted to the
general ledger and the subsidiary ledgers
• Debtors' accounts must be balanced and reconciled monthly against the debtors list
• Only authorized persons should be allowed to write off debtors as bad debts
• Debtors that do not pay their accounts within the stipulated period should be charged with
interest - properly authorised
CREDITORS • Different staff members should receive goods and return unsuitable / unwanted goods
• Documents received and issued must be accurately recorded in the journals and posted the
general ledger and subsidiary ledger
• Creditors' control a/c has to be balanced and reconciled monthly against the Creditors' list.
• Creditors' monthly statement has to be reconciled with the Creditor's accounting in the CL
before authorised payments are made.
• Creditors must be paid promptly within the stipulated period of payment to avoid interest
charges
STOCK / • Separation of duties
INVENTORY • Only authorized personnel may order stock
• Goods received must be checked against the invoice received to ensure all ordered goods
have been received
• Stock must be kept in a safe and secure environment
• Proper records must be kept for the receiving of goods
• Stock be physically checked on a continuous basis
• Stock leaving the stockroom must be done only by persons that have access to the stock
FIXED ASSETS • All assets purchased must be recorded in asset register
• Assets must be safely kept. Staff using asset items should take responsibility for its safe-
keeping
• Regular checks must be done to ensure that they are in a good working condition
• Vehicles need to be signed in and out and log books kept of authorised trips
SALARIES & • Proper record must be kept of employees’ attendance and capabilities in each personnel file
WAGES • These files should have recording of salary/wages paid and the deductions made
• Time sheets (clock-in and out system) must be accurately implemented for wage workers
• Wages/salaries should be paid electronically, where possible
• The payroll list should be constantly checked to account for the correct number of employees
employed
4
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES [GAAP]
GAAP refers to:
• a framework of guidelines for financial accounting;
• standards and rules accountants follow in recording / summarizing transactions;
• standards and procedures to be followed in the preparation of financial statements;
Generally accepted principles in accounting:

Business Entity • It provides that the accounting for a business be kept separate from the personal affairs of
its owner, or from any other business or organization
• The owner of a business should not place any personal assets on the business balance
sheet
• The balance sheet of the business must only reflect the financial position of the business
• Also, when transactions of the business are recorded, any personal expenditures of the
owner are charged to the owner and are not allowed to affect the operating results of the
business.
Going concern • It assumes that a business will continue to operate in the foreseeable future
Historical Cost • It entails that the purchase of assets must be recorded at their cost price in the books of
the business.
• This is the amount that appears on the source document for the transaction.
• Assets are valued at this original cost price in financial statements.
Prudence • Accountants should be conservative when preparing financial statements.

• Income or assets should not be overstated, nor should expenses or liabilities be
understated in the records.
Matching • It states that expenses linked to the income it helped to earn, should be recorded in the
same accounting period, even if the income has not been received or the expense paid
yet.
Materiality • It requires accountants to include meaningful information in detail in financial statements.
• Meaningless or less meaningful information should only be excluded to shorten or de-
clutter financial statements and inform the reader in an organised manner
• The 'meaning' (usefulness) of information will be based on the impact it will have (or not
have) on the accuracy of the financial statements.
5
ACTIVITY 1
Lwethu Mbane owns a restaurant in a small village. His father has lent
him R100 000 to get the business started. Consider the following
Accountability
Responsibility
Independence
examples of poor governance.
Transparency
responsibility
Discipline
REQUIRED:
Fairness
Indicate which characteristic(s) of good governance these examples
Social
violate, by placing a ‘X’ in the appropriate block/s.
Lwethu tells his kitchen staff to throw waste food in the nearby river.
Lwethu makes lengthy private calls from the business’ phone.
Lwethu pays his gardener at home R500, but he records it as business
wages.
A customer is ill after eating fish at the restaurant. Lwethu blames the fish
supplier for delivering poor quality fish.
Lwethu serves alcohol to customers under the age of 18.
Lwethu deliberately under-pays VAT to SARS by R3 000.
Lwethu employs a new waiter at half the salary paid to other waiters,
because he knows he is desperate for the job.
Lwethu tells his father that he cannot make the loan repayments this month
because business was slow. However, he took extra drawings to pay for an
overseas holiday.
Lwethu spends R1 000 per week from the petty cash on sundry expenses,
knowing well that the budget is R300 per week.
Lwethu refuses to spend R1 000 on a security gate at the front entrance of
the business. One afternoon, the cashier is seriously injured in a robbery.
Lwethu tells his employees that he cannot give them more than a 2% salary
increase this year because the business is not doing well. Meanwhile, he
decides to employ his daughter as a manager.
ACTIVITY 2
Your business has two office employees. Their duties are listed below:
Rixaka Indy
Collects cash from customers Answers the phone
Controls the cash register Attends to customer care
Does the banking every day Does the advertising
Issues invoices and credit notes to credit customers Checks the trading stock deliveries
Issues receipts to debtors when they pay Counts the stock at the end of each month
Controls the petty cash Controls the fixed assets
Captures EFTs – she has signing powers on EFTs Counts the fixed assets each month
Processes weekly wages Writes up the stock sheets and the fixed assets
Writes up all the journals and the ledger register
Prepares the trial balance every month Controls the office keys – she locks up every night
REQUIRED:
1. Identify two ways in which Rixaka could defraud the business and cover up his crime.
2. Identify two ways in which Indy could defraud the business and cover up her crime.
3. How should you properly divide duties between Rixaka and Indy to improve your internal control system?
6
ACTIVITY 2: ANSWER SHEET
1.
2.
3.
ACTIVITY 3
Indicate the suitable GAAP principle applied for each example below:
GAAP principle applied

A Damages payable to a client will be finalised next year. An
estimated amount of R 9 000 is recorded this year.
B Interest on overdraft is shown separately from interest on
loan.
C The owner owes his sister R5 000 for costs incurred during
his holiday. This is not reflected in the financial statements of
the business.
D When a debtor settles his account, the discount granted must
be recorded at the same time.
E Land and buildings are shown in the financial statements as
R400 000, even though as estate agent says the property is
worth twice that amount.
F Trading stock is still sown at the cost price of R20 000, even
though it would be sold for R15 000 on a flea market or
auction immediately.
WEEK 1: SOLUTIONS
https://wcedeportal.co.za/eresource/180356
7
Grade 10 ACCOUNTING Term 1: Week 2
Topic: CASH: CRJ & posting to GL
• basic Accounting concepts • record transactions in the Cash Receipt Journal
• flow of entries in the accounting cycle • post from the Cash Receipt Journal to General Ledger
• cash transactions
• the Double Entry Principle
• the Accounting Equation
Use your TEXTBOOK to read about Alternative digital resources:

Gr 10 Telematics 2020:
Basic Accounting concepts
• Source Documents
• Cash Receipt Journal https://wcedeportal.co.za/eresource/181281
• Credit and debit card sales Gr 10 Study & Master (Ch 6)
• Internet banking Revision of Gr 9 content (Basic Accounting)
• Bank Statements
FLOW OF ENTRIES IN THE ACCOUNTING CYCLE
8
BASELINE ACTIVITY: Match the columns
CONCEPTS (A) EXPLANATION (B)
1 The accounting cycle A A business that has one owner
2 Sole trader B Amounts earned by a business through its operation or investments
3 Ledger C The cycle of activities that takes place in a business each month
4 Subsidiary Journal D Documents issued or received to capture all data of transactions, e.g. receipts
5 Assets E To record all the money received and deposited
6 Income F Takes place where goods and services are exchanged for money
7 Source Documents G Debts or obligations of a business
8 Liabilities H Possessions or resources of a business
9 Transaction I Book of first entry where all financial transactions are recorded
10 Cash Receipt Journal J The double entry principle is applied here where accounts are either debited or
credited
Cheques are NOT accepted as

legal payment by businesses
and banks from
• In Gr 10 - 12 Accounting CHEQUES will be replaced by Electronic Funds Transfers (EFTs) as a method

of payment made by the business.
• As bookkeepers have to keep a 'paper trail' for auditing purposes, EFTs will be numbered for easy filing
and retrieving purposes.
• Businesses will accept cash, debit-, credit cards and EFTs from customers as methods of payment.
This journal (subsidiary book) is used to record

CASH RECEIPTS JOURNAL (CRJ) all the money received and deposited
INTERNET BANKING (Electronic Fund Transfer – EFT)

• Businesses (and individuals) can make electronic payments using internet banking facilities as cheques
are no longer accepted.
• An EFT is verified by the bank statement
• For every EFT payment made by the business, the source document is the bank statement. It will be
recorded in numeric order in the CPJ.
• A business will also receive EFTs, e.g. the tenant paying his rent electronically. The source document is
also the bank statement, but the transaction will be recorded in the CRJ.
9
DEBIT and CREDIT CARD SALES
• Businesses may also accept payments from customers by credit or debit cards.
• The card is produced at the pay point. It is regarded as CASH sales as the amount is debited to the
business as soon as the transaction is verified by the customer's bank.
• Credit card sales are also regarded as CASH sales as the customer owes the amount to his/her bank and
NOT to the business.
From the business point of view:

• Card sales are recorded in the CRJ. The cash register 'tape' or 'roll' (CRT or CRR) is the source
document.
• The bank charges a levy or cost on each credit card transaction. This levy appears on the business’s bank
statement and is treated as bank charges. Debit card transastion costs is the responsibility of the card
holder.
• Bank charges are entered in the CPJ at the end of the month as ONE total. (NOT applicable in this lesson)
FORMAT OF THE CASH RECEIPT JOURNAL (CRJ)
Cash Receipt Journal of ……………… - January 2021 CRJ1

Doc Date Details Fol Analysis of Bank Sales Cost Sundry accounts
Receipts of sales Amount Fol Details
NOTE:
• When goods are sold TWO entries and TWO amounts (for the selling price and the cost price) have to be
recorded:
o Sales (income received at selling price)
o Cost of sales (stock reduced at cost price)
• The selling price is entered in Analysis of Receipts (or Bank) and Sales
• The cost price is entered in Cost of Sales in the same line as the Sales entry.
• Calculation of cost of sales is: Sales x 100/ (100 + % Profit Mark-up)
• Example: The selling price of a designer mask is R200 and the mark-up percentage is 50%
Cost of Sales calculation Selling price calculation

240 x 100 160 x 150
150 = R160 100 = R240
EXAMPLE
The information below relates to Rixi Traders for January 2021.
REQUIRED:
Record the transactions in the Cash Receipts Journal for January 2021.
TRANSACTIONS: January 2021

1 Goods sold for cash to Umi for R330. The mark-up is 50% (CRT 1)
5 Received R50 000 from BT Bank. It was for a loan negotiated at 10% p.a. interest. (Receipt 984)
12 Cash sales for the week, R5 100. Included in the Sales total was R2 000 card sales. Total Cost of
sales, R3 300 (CRT 2)
19 Phawu paid R900 per EFT for goods ordered earlier. The mark-up is 50% on cost. (CRT3) She sent
the proof of payment via email to support her payment.
24 Cash sales to date R6 210; the mark-up is 50% (CRT 4)
28 The owner (Ms Mbane deposited R5 000 as additional capital. (Receipt 985)
Cash sales to date ? . Cost of sales, R12 800 was calculated at the mark-up of 50%
10
SOLUTION (CRJ)
Cash Receipts Journal of Rixi Traders – January 2021 CRJ1

Doc No D Details Fol Analysis Bank Sales Cost Sundry accounts
of
of sales Amount Fol Details
Receipts
CRT 1 1 Sales 330 330 330 220
B2 Loan:
Rec984 5 Bidvest Bank 50 000 50 000
BT Bank
CRT2 12 Sales 5 100 5 100 5 100 3 300
CRT3 19 Sales 900 900 900 600
CRT4 24 Sales 6 210 6 210 6 210 4 140
Rec985 28 Ms Mbane 5 000 5 000 B1 Capital
CRT5 Sales 19 200 24 200 19 200 12 800
86 740 31 740 21 060 55 000
Show the folio number of the relevant ledger account N2 / B4
below the total or in the folio column of Sundry
B3 N1
accounts
Posting to the General ledger Dr Bank Cr Sales Dr Cost of Cr Loan: BT Bank
Sales Cr Capital
Cr Trading
Stock
SOLUTION (Posting to ledger)

GENERAL LEDGER OF RIXI TRADERS
Balance Sheet Account Section
DR CAPITAL B1 CR
2021
Jan 28 Bank CRJ1 5 000
LOAN: BT BANK B2
2021
BANK B3
2021
Jan 31 Total Receipts CRJ1 86 740
TRADING STOCK B4
2021
Jan 31 Cost of Sales CRJ1 21 060
NOMINAL ACCOUNTS SECTION

SALES N1
2021
COST OF SALES N2
2021
Jan 31 Trading Stock CRJ1 21 060
11
ACTIVITY 1
The following transactions are related to Pawu Traders. All their products are marked at 100% on cost.
REQUIRED
• Record the transactions in the Cash Receipts Journal for January 2021.
• Post to the General Ledger
TRANSACTIONS
1 Owner, Inga, deposited R150 000 as capital. (Receipt no. 01)
10 Cash sales to date R? The cost of sales was R4 250.
20 Cash sales to date, R19 400
23 Total cash sales, R8 700
30 Cash sales for the week, R25 110
Total credit card sales, R35 980
The tenant, Cynoh Nails, paid their rent for the month R1 500 (Reciept no. 02) by EFT

Cash Receipts Journal of Pawu Traders – January 2021 CRJ5
Doc D Details Fol Analysis Bank Sales Cost Sundry accounts
No of of sales Amount Fol Details
Receipts
GENERAL LEDGER OF PAWU TRADERS

DR CAPITAL B1 CR
BANK B2
TRADING STOCK B3
Nominal Account Section

DR SALES N1 CR
COST OF SALES N2
RENT INCOME N3
ACTIVITY 2
12
The Cash Receipts Journal was extracted from the books of Cynoh Traders.
Balances/totals in the General Ledger on 1 January 2021:
Capital R250 000; Loan: CB Bank R150 000; Bank (Cr) R5 000;
Trading Stock R88 000; Sales R4 500; Cost of Sales R1 500;
Commission income R2 000
REQUIRED
Post to the accounts in the General Ledger as provided on the Answer sheet.
Balance the Balance Sheet accounts ONLY.
Cash Receipts Journal of Cynoh Traders – January 2021 CRJ3
Doc No D Details Fol Analysis of Bank Sales Cost Sundry accounts
Receipts of sales Amount Fol Details
R01 3 Cynoh 80 000 80 000 Capital
R02 CB Bank 40 000 40 000 Loan:CB Bank
CRT1 4 Sales 1 000 1 000 1 000 600
CRT2 12 Sales 2 000 2 000 2 000 1 100
R03 15 Amy Stores 500 500 Commission
income
CRT3 Sales 4 000 4 500 4 000 2 100
CRT4 21 Sales 1 000 1 000 1 000 900
R04 29 Amy Stores 120 120 Commission
income
R05 Cynoh 5 000 5 120 5 000 Capital
CRT 5 30 Sales 3 000 3 000 1 800
B/S CB Bank 50 3 050 50 Interest on
fixed deposit
136 670 11 000 6 500 125 670
GENERAL LEDGER OF CYNOH TRADERS

DR CAPITAL B1 CR
BANK B3
13
TRADING STOCK B4
LOAN: CB BANK B6

SALES N1
COST OF SALES N2
COMMISSION INCOME N3
INTEREST ON FIXED DEPOSIT N4
WEEK 2: SOLUTIONS
14
Topic: CASH: CPJ and posting to the General Ledger (GL)

• basic accounting concepts • record transactions in the Cash Payments Journal (CPJ)
• flow of entries in the accounting cycle • posting from the CPJ to General Ledger accounts
• cash transactions (receipts) • Analyse transactions according to the Accounting
• the double entry principle Equation
• Accounting Equation
Use your TEXTBOOK to read about Alternative digital resources

• Source Documents Gr 10 Telematics 2020:
• Cash Payments Journal Basic Accounting concepts
• Internet banking https://wcedeportal.co.za/eresource/181281
• Electronic Funds Transfers (EFTs)
• Bank Statement Gr 10 Study & Master PPT (Ch 9)
Additional cash transactions &
Petty Cash
FLOW OF ENTRIES IN THE ACCOUNTING CYCLE
15
ADDITIONAL CASH TRANSACTIONS in Gr 10
(These notes are based on Gr 10 2020 Telematics - cheques excluded)
Accounting Cycle (revision Gr 9 work)
Transactions Source Documents Journals Ledger accounts
Cash received for services Receipts Dr Bank
rendered, donations Cr All other contra accounts, e.g.
received, commission Donations income, Debtors control
(EFTs are confirmed on the BS; CRJ
earned, etc. (EFTs received), etc.
it may also be accepted as the
EFTs received from debtors
source doc)
or customers
Cash Sales Cash register roll/tape Sales Cost of Sales
Card Sales (CRR) CRJ Dr Bank Dr Cost of Sales
(Include in Gr 8 & 9 from 2021) Cr Sales Cr Trading stock
Payments by EFT EFT (numbered) / BS Dr All other contra accounts
CPJ
(internet banking) Cr Bank
Restore imprest amount in BS Dr Petty cash account
Petty Cash CPJ Cr Bank
Cash withdrawal with Debit card
Small amounts CASH Petty Cash voucher Dr All other contra accounts
payments PCJ Cr Petty Cash
ADDITIONAL CASH TRANSACTIONS (extended)

1. Credit Card sales / Internet or Online sales via EFT
Description Source Document Journal Ledger accounts
Customer pays by credit card CRR Sales / Selling price:
OR BS (Bank statement for EFT/ Dr Bank; Cr Sales
EFT via internet banking online payment) CRJ
Cost of Sales:
Dr Cost of Sales; Cr Trading stock
2. Bank Charges
▪ Costs and levies charged by Dr Bank charges
the bank for services (TOTAL of service fees, cash
rendered. deposit fees, credit card levies, internet
▪ Deducted IN the bank banking fee, etc.)
statement; NOT paid by EFT BS
CPJ Cr Bank
▪ ALL levies and charges are
ADDED and entered as
ONE amount.
▪ NB: INTEREST is NOT
added to Bank charges!
3. Carriage on Purchases
Extra costs charged by suppliers
EFT CPJ Dr Trading Stock; Cr Bank
to deliver trading stock at the
premises
Petty Cash voucher PCJ Dr Trading Stock; Cr Petty Cash
16
4. EFT received from debtors
▪ A debtor can pay his/her
outstanding debt by EFT and
send proof of payment to the
business. The payment will Dr Bank
only reflect in the business' BS BS (and/or Receipt) CRJ Cr Debtors Control
after 3 to 5 days.
Cr Debtor in the Debtors' Ledger (DL)
▪ Business ONLY enters the
EFT received once it is
reflected in the BS
5. Discount allowed to debtors

Debtors are allowed to pay a
reduced amount as an incentive to Receipt (the same doc used Dr Discount Allowed
pay earlier. for the amount received from
debtors)
CRJ
This discount is a loss to the Cr Debtors Control
business. Cr Debtor in DL
▪ Discount allowed cancelled
N/a N/a N/a
(NOT applicable with EFTs)
6. EFT paid to creditors

▪ A creditor is paid by EFT
(outstanding amount for the
month). Proof of payment is Dr Creditors Control
send to the creditor. This Dr Creditor in the Creditors' Ledger (CL)
payment will only reflect in the BS (and/or EFT number) CPJ
business' BS after 3 to 5 days. Cr Bank
▪ Business ONLY enters the
EFT paid in the CPJ once it
is reflected in the BS.
7. Discount Received (from creditors)

Creditors allow discount when an Dr Creditors Control
outstanding account is settled Dr Creditor in CL
earlier than agreed. EFT / BS CPJ
This discount is a profit to the Cr Discount Received
business.
▪ Discount received cancelled
N/a N/a N/a
(NOT applicable with EFTs)
17
8. Interest on overdraft & Interest on current account
Interest on current account: Dr Bank (asset)
(Income)
▪ Earned on a positive bank Cr Interest on current a/c
balance. (interest rate is low) BS CRJ (= Income)
▪ Reflected on the BS (increase
a positive bank balance)
Interest on overdraft: (expense) Dr Interest on overdraft (expense)
▪ Charged by the bank on an
overdrawn/negative bank Cr Bank (can be a liability, IF the bank
balance. BS CPJ balance is credit/negative)
▪ Subtracted as a payment on
the bank statement (higher
interest rate)
9. Fixed Deposits & Interest on fixed deposit

Cash deposit for a pre-determined period (usually 1 year or more) at a higher interest rate than a current bank a/c.
The aim is earn a higher return on this financial asset. Calculation of the interest In Gr 10 is always the 'simple' interest
method. Fixed deposit: asset; Interest on fixed deposit: income
Fixed deposit made: Dr Fixed Deposit: ABC Bank (add name
Cash deposited in a Fixed BS [EFT] of the bank to this a/c as each deposit
Deposit a/c. CPJ has its own conditions, e.g. % interest
and amount invested)
Cr Bank
Fixed deposit matured: BS [EFT] Dr Bank
The term of the investment has Cr Fixed Deposit: ABC Bank
expired and the bank will pay out CRJ
the amount invested.
Interest earned on the fixed BS [EFT] Dr Bank
deposit: Cr Interest on fixed deposit (no bank
• Interest is paid into the name, as interest from all deposits are
current bank a/c CRJ credited in this a/c)
• Income earned on Fixed
Deposit
Interest Calculation: P = principal amount of the investment
P x R x T R = interest rate, e.g. 10% p.a.(per year)
24/ )
100 T = term of the investment, e.g. 2 years (or 24/12 months 12
10. Loans & Interest on loans

Extra capital /financing can be obtained by making a loan at a bank.
Loans are made for 1 year or longer (long term) and MUST be repaid with interest.
Non-Current Liabilities: Loans
Current Liabilities: Part of the loan to be repaid in the next financial year
Expense: Interest on loan
Loan made/received from the Dr Bank
bank: Cr Loan: ABC Bank (add the name of
Amount is received from the bank the bank to distinguish from other
BS [EFT] CRJ
who granted the loan. loans)
It is the Principal amount (capital
portion) of the loan.
Loan repaid (instalment or full BS [EFT] Dr Loan: ABC Bank
CPJ
amount) (OR debit order) Cr Bank
18
Interest on loan: Dr Interest on Loan (no bank name)
(simple interest) BS [EFT] CPJ
Cr Bank
Calculation: P x R x T
100
Interest on loan: (capitalised) BS [EFT] GJ Interest amount:
Total interest for the year is Dr Interest on Loan (no bank name)
calculated and added to the Cr Loan: ABC Bank
capital amount of the loan.
Repayment will include interest CPJ Loan repayment with interest
and capital portions Dr Loan: ABC Bank
Cr Bank
Calculation:
Loan balance (beginning of year) 300 000
+ Interest on Loan ?? 25 000 (300 000 - 265 000 - 60 000)
- Instalments / Repayments (60 000)
= Loan balance (end of year) 265 000
This journal (subsidiary book) is used to record

CASH PAYMENTS JOURNAL all payments (excl. cash payments)
INTERNET BANKING (Electronic Fund Transfer – EFT)

• Businesses (and individuals) can make electronic payments using internet banking facilities (cheques no
longer accepted)
• An EFT is verified by the bank statement. Businesses will number their printed proof of payment by EFT
for easy filing and retrieving the document. (A paper trail needs to be kept for auditing purposes)
• When a business makes an EFT payment the source document is the bank statement. An EFT number
could be added in the CPJ for auditing /tracking the payment purposes. Payments should be recorded in
numeric order in the CPJ.
• Stop orders and debit orders are also acceptable methods of payment of monthly amounts.
FORMAT OF THE CASH PAYMENTS JOURNAL (CPJ)

Cash Payments Journal of ………………….. - January 2021 CPJ1
Doc Date Details Fol Bank Creditors Discount Trading Sundry accounts
No. Control Received Stock Amount Fol Details
EXAMPLE
The transactions relate to Larah Traders for January 2021.
REQUIRED:
Record the following transactions in the Cash Payments Journal for January 2021. Close off the journal.
Post to the General Ledger accounts as provided on the Answer sheet.

1 Made an EFT payment to Telkom to pay the January 2021 telephone account, R4 630.
8 Took delivery of trading stock purchased from ABC Suppliers, R36 000 and consumables. All items are
subject to 5% trade discount. EFT payment was made, R 36 480.
12 - An EFT was made in favour of U-turn Carriers for delivering the items purchased, R2 560.
- Piper & Co was paid by EFT R983 for fixing the leaking toilet in the office.
19 EFT payment to Carr’s Cash and Carry for the following:
- Trading stock R35 800
- Computer for office use R15 999
19
31 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.
- Debit order payment to We Care Insurers for the owner’s car, R2 000 and for the business vehicles,
R6 645
- Debit order payment to the municipality for municipality expenses, R4 123
EXAMPLE SOLUTION (CPJ)

Cash Payments Journal of Larah Traders – January 2021 CPJ1
Doc D Details Fol Bank Equipment Trading Sundry accounts
No Stock Amount Fol Details
EFT1 1 Telkom 4 630 4 630 N4 Telephone
EFT2 8 ABC Suppliers 36 480 34 200 2 280 N5 Consumables
EFT3 12 U-turn Carriers 2 560 2 560
EFT4 Piper & Co. 983 983 N6 Repairs
Carr’s Cash
EFT5 19 51 799 15 999 35 800
and Carry
BS 31 IOU Bank 2 290 1 062 N7 Bank Charges
1 228 N8 Interest on overdraft
BS We-Care Insurers 6 645 2 000 B2 Drawings
4 645 N9 Insurance
Municipality
BS Municipality 4 123 4 123 N10 expenses
109 510 15 999 72 560 20 951
B11 B5 B8
SOLUTION (Posting to ledger)
GENERAL LEDGER OF LARAH TRADERS
DR DRAWINGS CR
B2
2021
Jan 31 Bank CPJ1 2 000
EQUIPMENT B5
2021
TRADING STOCK B8
2021
BANK B11
2021
Jan 31 Total Payments CPJ1 109 510
Nominal accounts section
TELEPHONE N4
2021
CONSUMABLES N5
2021
REPAIRS N6
2021
Jan 31 Bank CPJ1 983
BANK CHARGES N7
2021
20
INTEREST ON OVERDRAFT N8
2021
INSURANCE N9
2021
MUNICIPAL EXPENSES N10
2021
ACTIVITY 1
The following transactions relates to Candice Traders. All payments are made by EFT.
REQUIRED:
• Record the transactions in the Cash Payments Journal for January 2021.Close off the journal.
• Post to the General Ledger accounts provided on the Answer sheet.
TRANSACTIONS:
1 Paid Gee Whizz Traders R6 500 in settlement of an account of R6 730.
5 Invested R50 000 in a fixed deposit at New Bank at 8% per annum interest.
13 Processed an EFT to Jazz Bank for R42 500. This was for the repayment of a loan together with
interest of R2 500.
20 Took delivery of trading stock purchased from Torres Traders for R8 300 less 5% trade discount.
Paid On-Time Transport R1 600 for the transport of the above goods to the store.
31 Bank statement from Jazz Bank showed the following:
• Service fees R1 300
• Cash handling fees 550
• Interest on overdraft 630
ACTIVITY 1 ANSWER SHEET

Cash Payments of Candice Traders – January 2021 CPJ1
Doc Day Details Fol Bank Trading Creditors Discount Sundry accounts
No. stock Control received Amount Fol Details
21
GENERAL LEDGER OF CANDICE TRADERS
DR TRADING STOCK B8 CR
BANK B9
CREDITORS CONTROL B10
FIXED DEPOSIT: NEW BANK B11
LOAN: JAZZ BANK B12

DR INTEREST ON LOAN N10 CR
BANK CHARGES N11
INTEREST ON OVERDRAFT N12
DISCOUNT RECEIVED N12
ACTIVITY 2
The information relates to Yusuf’s Cellphone Repairs for May 2020.
REQUIRED:
Analyse the following transactions by completing the table on the Answer sheet. The first entry has been done
as an example. All payments are made by EFT.
1. Paid wages R20 500.
2. Bought paper for the office computer, R450.
3. Paid for insurance of business equipment, R2 300.
4. Paid Home Property for rent of property, R10 000
5. Bought equipment from Cell warehouse, R50 000.
6. The owner paid his personal telephone account from the business bank account, R1 500.
7. Paid the business telephone account, R4 500.
8. Paid to Samsung Stores (a creditor) as part payment of our account, R8 200.
22
No. Account debited Account credited A = O + L
1 Wages Bank -20 500 -20 500 0

2
WEEK 3: SOLUTIONS
23
Topic: PETTY CASH JOURNAL & POSTING TO THE GENERAL LEDGER

You already know about... The lesson will enable you to...
• recording transactions in the CRJ & CPJ • record transactions in the Petty Cash Journal (PCJ)
• posting from the CRJ & CPJ to the General • post from the PCJ to General Ledger
Ledger • understand the imprest system used to manage petty cash
Use your TEXTBOOK to read about Alternative digital resources

Petty cash Gr 10 Study & Master PPT (Ch 9)
Petty Cash
Pay special attention to:
• Petty cash payment procedure
• Source documents relevant to petty cash Lucem Gr 10 Teacher Guide
• Transferring of cash to petty cash
(textbook and answers in one)
• Balancing petty cash account
• Petty cash imprest system https://wcedeportal.co.za/eresource/117641
• Internal control of petty cash
BASIC CONCEPTS
Match the concepts in Column A to the explanation in Column B.
COLUMN A COLUMN B ANSWER
1 Petty Cash A Manages the cash amount needed in the Petty Cash money box
2 CPJ B Used for authorising a petty cash payment from the money box
3 Cash Float C Notes & coins kept safely in a money box
4 PCJ D Used for a payment to a supplier via online banking
5 Petty Cash voucher E Notes & coins kept safely in the cash register (till) to give change to
customers
6 EFT F Used for recording all payments (excluding cash)
7 Imprest system G Used for recording payments made from the money box
PETTY CASH
• All payments are usually made online with a EFT or directly from the bank with debit and/or stop orders.
• SMALL amounts can be paid with CASH (notes and coins).
• Examples of small cash payments: small donations
refreshments for the office (tea, coffee, milk, etc)
casual wages (washing windows...), etc.
• Cash is kept safely in a money box that must be locked and stored in the safe or the strong room.
• A petty cashier controls the cash put into and taken out of the money box and holds the keys to the
money box.
• A petty cash voucher has to be completed and authorised (signed) by the petty cashier and a senior
staff member.
• All payments from the money box are entered in the PCJ (Petty Cash journal)
• Petty Cash is a Current Asset (included in Cash & Cash Equivalents)
24
PETTY CASH JOURNAL
• Source document: PETTY CASH VOUCHER.
• RESTORING the IMPREST AMOUNT: Money is withdrawn at the bank with a debit card from the current
bank account. The entry is made in the CPJ (source document will be the Bank statement (BS))
E.g.: Petty Cash IMPREST amount = R1 000 per month; (must be the same EVERY month)
Total Petty Cash payments for the month = R600,
Cash remaining in the money box = R400 (R1 000 - R600)
Amount to restore the IMPREST AMOUNT will be R600
Restore amount from the CPJ should be the SAME as the total petty cash payments.
FORMAT of the PETTY CASH JOURNAL

Petty Cash Journal of ……………… - January 2021 PCJ1
Petty Consumable Sundry accounts
Doc Date Details Fol Wages Repairs
Cash Stores Amount Fol Details
POSTING TO THE GENERAL LEDGER (Taking into account IMPREST AMOUNT)

BALANCE SHEET ACCOUNT SECTION
DR PETTY CASH B6 CR
2021 2021
Jan 01 Balance b/d 1000 Jan 31 Total payments PCJ1 600
31 Bank CPJ1 600 Balance c/d 1000
1600 1600
2021
Feb 01 Balance b/d 1000
INTERNAL CONTROL OF PETTY CASH

• Only personnel authorised to handle petty cash may do so. ONE person should be in charge of the money
box and holds the key to the box. Another person (senior person) will authorise the payments.
• Payments must only take place if a petty cash voucher is completed and authorised.
• Supporting documents must be collected and filed/kept with the petty cash voucher.
• An imprest system must be implemented.
• The imprest amount should only be restored after reconciling the amount of cash on hand with the petty
cash vouchers and supporting documents.
EXAMPLE
• Complete the Petty Cash Journal of Umi Traders for January 2021.
• Provide for columns: Repairs, Wages and Consumables.
• Complete an extract of the CPJ showing the entry to restore the petty cash imprest amount.
1 The petty cash imprest amount of Umi Traders is R2 000. A cash amount was withdrawn at the bank
and handed to the petty cashier.
3 Paid Nathi Services for repairs to the computer R250 (petty cash voucher no. 70)
5 Paid casual wages to the gardener, O Vayo, R400.
8 Bought consumables from Inga Stores for R130. Paid cash.
15 Lwethu repaired the lawnmower for R200 cash.
19 Paid the casual wages to the gardener, O Vayo, R400.
20 Bought trading stock from Inga Stores for R210. Paid cash.
23 Paid for packing materials bought from Pawu Packers, R150.
25 Repaired the broken door in the storeroom R100. Paid Rixi from the petty cash.
28 The owner took R120 from the petty cash box for personal use.
31 Restored the petty cash imprest amount by a cash withdrawal.
25
EXAMPLE: SOLUTION (PCJ and CPJ)
Cash Payment Journal of Umi Traders - January 2021 CPJ1
Sundry accounts
Doc Date Details Fol Bank
Amount Fol Details
BS 01 Cash 2 000 2 000 B6 Petty cash
….
BS 31 Cash 1 960 1 960 B6 Petty cash
Petty Cash Journal of Umi Traders - January 2021 PCJ1

Petty Sundry accounts
Doc Date Details Fol Wages Repairs Consumables
Cash Amount Fol Details
70 03 Nathi 250 250
Services
71 05 O Vayo 400 400
72 08 Inga Store 130 130
73 15 Lwethu 200 200
74 19 O Vayo 400 400
75 20 Inga Stores 210 210 B5 Trading stock
76 23 Pawu 150 150
78 25 Rixi 100 100
79 28 Umi 120 120 B4 Drawings
1 960 800 550 280 330
Folios for Ledger accounts B6 N5 N6 N7
Cr Dr Dr Dr
Posting to the General Ledger Petty Wages Repairs Consumables
cash
EXAMPLE SOLUTION (Posting to the ledger)

DR DRAWINGS B4 CR
2021
Jan 28 Petty cash PCJ1 120
TRADING STOCK B5
2021
PETTY CASH B5
2021 2021
Jan 01 Bank CPJ1 2 000 Jan 31 Total payments PCJ1 1 960
31 Bank CPJ1 1 960 Balance c/d 2 000
3 960 3 960
Feb 01 Balance b/d 2 000
Note: The imprest amount should be equal to the total petty cash payments
NOMINAL ACCOUNT SECTION

WAGES N5
2021
REPAIRS N6
2021
CONSUMABLES N7
2021
26
ACTIVITY 1
Indy is the petty cashier of Mbane Traders. At the beginning of the month she had a cash (imprest) amount of
R2 500.
REQUIRED
• Prepare the Petty Cash Journal for February 2021. Use your own document numbers.
• Provide for the following additional columns: Wages, Consumable stores, Stationery, Sundry expenses
• Post to the General Ledger.
• Balance the Petty Cash account.
TRANSACTIONS: February 2021
2 Bought an invoice book from Yolo Printers R100
5 Paid Zanele his wages for casual cleaning R200
7 Bought refreshments from Xixi Stores R50
11 Owner (Mr Mbane) used petty cash funds for his own use R80
18 Paid for stationery bought from Yolo Printers R50
Bought wrapping materials (consumables) from PK Suppliers R90
Received packing material (consumables) ordered from PK Suppliers R100
Bought merchandise (trading stock) from Xixi for R120
Bought refreshments from Xixi Stores R100
26 Made a cash donation to Inga Educare R150
Bought stationery from Yolo Printers R80
28 Indy was given cash to restore the imprest amount.

Cash Payment Journal of …………..…….- FEBRUARY 2021 CPJ1
Sundry accounts
Doc Date Details Fol Bank
Amount Fol Details
Petty Cash Journal of …………....……… - FEBRUARY 2021 PCJ1

Petty Consumable Sundry accounts
Doc Date Details Fol
Cash
Wages Stationery
Stores Amount Fol Details
27
GENERAL LEGDER of .........................................
DR DRAWINGS CR
TRADING STOCK
PETTY CASH
NOMINAL ACCOUNT SECTION

WAGES
REPAIRS
CONSUMABLES
WEEK 4: SOLUTIONS
28
Topic: CREDIT (DJ & DAJ with Debtors Ledger and General Ledger)
• Accounting concepts • record credit sales in the Debtors Journal and
• The accounting cycle returns from / allowances to debtors in the Debtors’
allowance journal
• The double entry principle
• record payments by debtors in the CRJ
• Cash transactions (CRJ & CPJ)
• post to the General and Debtors’ Ledgers
• Posting to the General ledger

CREDIT TRANSACTIONS
Gr 10 Study & Master PPT (Ch 7)
Debtors
Pay special attention to:
• Source documents https://wcedeportal.co.za/eresource/187671
• Credit sales and Debtors Journal (DJ)
• Returns from/allowances to debtors Gr 10 Telematics 2020:
• Debtors Allowances Journal (DAJ) Basic Accounting concepts
• Payments by debtors in the CRJ
• Posting to the Debtors Ledger
• Debtors’ List
BASIC CONCEPTS with regards to DEBTORS

Source
Transactions Journals Ledgers Internal control
documents
Credit sales Credit Invoice Debtors Journal General Ledger Screening of debtors
(DJ ) before granting credit
Returns from OR Credit Note Debtors Allowances Debtors Ledger Credit terms based
allowances to Journal (DAJ ) on debtors' financial
debtors background
Payments received Receipt and/or Cash Receipts Debtors List Credit limit may not
from debtors Bank statement Journal (CRJ ) be exceeded
CREDIT SALES
• ISSUES a credit invoice (source document)

• Entered in the DJ (Debtors Journal) [Selling and cost price]
• Double entry in the General Ledger is: Dr Debtors Control; Cr Sales (selling price)
Dr Cost of Sales; Cr Trading stock (cost price)
• Debtors Ledger account: Dt Debtor (selling price)
29
EXAMPLE 1
Feb 7, 2021: Issued credit invoice no 5 to L. Rule for goods sold on credit, R 1 240.
Transaction
EXO Traders uses a 25 % mark-up on cost.
Source
document
Credit invoice
Journal Debtors Journal of EXO Traders --- February 2021 DJ 1

Inv. no Day Details Fol Sales Cost of sales
005 7 L. Rule 1 240 992
General DR Debtors Control B6 CR

Ledger 2021
Feb 7 Sales DJ 1 240
Sales N1
2021 Debtors
Feb 7 DJ 1 240
control
Trading Stock B7
2021
Feb 7 Cost of Sales DJ 992
Cost of Sales N2
2021
Feb 7 Trading Stock DJ 992
Debtors Debtors Ledger of EXO Traders

Ledger L. Rule D1
Date Details/ Document Fol Debit Credit Balance
2021
Feb
7 Invoice no 5 DJ 1 240 1 240
Debtors
List
L. Rule R 1 240
Accounting Acc Dr Acc Cr Assets (A) Owners Equity (O) Liabilities (L)
Equation Debtors Control/L Rule Sales (income) + 1 240 + 1 240 0
Cost of Sales Trading Stock - 992 - 992 0
Debtors are Assets, which increase on Debit side;

Debtor is debited to show he/she owes MORE
ACTIVITY 1
REQUIRED:
1.1 Prepare the Debtors Journal of Nyamakazi Traders for March 2021.
1.2 Post to the General Ledger and Debtors Ledger.
1.3 Calculate the mark up % on cost that the business usually applies AND the % realised on the24th.
1.4 What is the effect for a business to reduce its % mark-up. Name ONE positive and ONE negative
aspect.
Transactions for March 2021

4 Issued invoice 23 to Meaka Nomfundo, for R 1 800. Cost price of goods sold was R 1 200.
9 Sold goods on credit to Noah Fortuin for R750, cost price was R500. Invoice 24 was issued.
13 Issued invoice 25 to Meaka Nomfundo for R 3 000. Cost price of the goods amounted to R 2 000.
24 Issued invoice 26 to Michael Cronje, for R 2 700. These goods were sold at a lower mark-up as it was
out-dated.
30
Debtors’ Journal of Nyamakazi Traders for March 2021 DJ 3

Invoice
no
Day Details/ Debtors Fol Sales Cost of Sales
GENERAL LEDGER OF NYAMAKAZI TRADERS

BALANCE SHEET SECTION
DR DEBTORS CONTROL B1 CR
TRADING STOCK B2
NOMINAL SECTION
SALES N1
COST OF SALES N2
DEBTORS’ LEDGER OF NYAMAKAZI TRADERS

Meaka Nomfundo D1
Date Details Fol Debit Credit Balance
N. Fortuin D2
Michael Cronje D3
Debtors’ List
Meaka Nomfundo
Noah Fortuin
Debtors List total & Debtors Control
Michael Cronje a/c closing balance must be equal
Debtors' List end total at the end of each month
31
1.3 Calculate:
Usual % mark-up: % mark-up applied on 24 March:
1.4 ONE positive effect: ONE negative effect:
The Consumer Protection Act allows customers to

return goods within six months if it is defective or do
not meet the required standards.
RETURNS FROM / ALLOWANCES to DEBTORS

• Issues a credit note (source document)
• Entered in the DAJ (Debtors Allowances Journal) [Selling and cost price]
• Double entry in the General Ledger is: Dr Debtors Allowances; Cr Debtors Control (selling price)
Dr Trading stock; Cr Cost of Sales (cost price)
• Posted to the Debtors Ledger account:
CREDIT the Debtor with the selling price. NO ENTRY in the C.o.S column if items were not
returned OR only an allowance was granted
EXAMPLE 2
Feb 12, 2021: Goods not to specification, R240, (selling price) were returned by L. Rule.
Transaction
Credit note no 02 was issued. EXO Traders uses a 50% mark-up on cost.
Source
Credit note
document
Journal Debtors Allowances Journal of EXO Traders --- February 2021 DAJ 1
C/N no Day Details Fol Debtors Allowance Cost of sales
02 12 L. Rule 240 160

Ledger 2021 12 Debtors DAJ 240
Feb allowance
Debtors Allowance N2
2021 12 Debtors control DAJ 240
Feb
Trading Stock B7
2021 12 Cost of Sales DJ 160
Feb
Cost of Sales N2
2021 12 Trading Stock DAJ 160
Feb

Ledger L. Rule D1
2021
Feb
7 Invoice no 5 DJ 1 240 1 240
12 C/N 02 DAJ 240 1 000

Debtors
List
L. Rule R 1000
Accounting A/c Dr A/c Cr Assets (A) Owners Equity (O) Liabilities (L)
Equation Debtors Control / L Rule Sales (income) - 240 - 240 0
Cost of Sales Trading Stock + 160 + 160 0
32
ACTIVITY 2
Lucky Star owns a business, Lucky Traders, that buys and sells household appliances.
They sell merchandise on credit and uses a profit mark up of 25 % on cost price.
Debtors' List on 1 March 2021:
S. Sardien R3 450
H. Harder R2 890
REQUIRED:
1. Record the following transactions in the DJ and DAJ
2. Close off the journals at the end of the month
3. Post to the Debtors Ledger
TRANSACTIONS for March 2021
7 Sold goods on credit to S. Sardien, R1 525. Issued invoice 201.
10 S. Sardien claimed an allowance for damaged items, R125. He agreed to keep the items.
Issued credit note no 54 to him.
13 Issued an invoice to H. Harder for goods sold to her on credit, R840.
30 H. Harder purchased goods for R1 800 on credit.
31 H. Harder returned damaged items, R400. Issued a credit note to her.

Debtors Journal of Lucky Traders --- March 2021 DJ 3
Inv.no Day Details/ Debtors Fol Sales Cost of Sales
Debtors Allowances Journal of Lucky Traders …. March 2021 DAJ 3

C/N Debtors
Day Details/ Debtors Fol Cost of Sales
no Allowance
Debtors’ Ledger of Lucky Traders

S. Sardien D1
Date Details/ Document no. Fol Debit Credit Balance
2021
Mar
1 Account rendered 3 450
H. Harder D2
Date Details/ Document no. Fol Debit Credit Balance
2021
Mar
1 Account rendered 2 890
33
Debtors’List on 31 March 2021
S. Sardien
H. Harder
Debtors' List total
Debtors Control account balance (?)
PAYMENTS RECEIVED FROM DEBTORS

• Issue a receipt (when debtors pay off or settle their outstanding debt with cash or cards)
• Debtors may pay via EFT; source document is the BS (Bank statement) as the payment is verified and
entered only when it shows on the bank statement (or daily transaction history) of the business.
• Entered in CRJ (Cash Receipts Journal)
NO amount in Analysis column.
EFT is a direct transfer between banks
EXAMPLE 3
Transaction Feb 25, 2021: Received an EFT from L. Rule in full settlement of her account, R1 000
Source
BS (bank statement)
document
Journal Cash Receipts Journal of EXO Traders --- February 2021 CRJ 1
Analysis of Debtors Sundry
Doc D Details Bank Details
receipts Control accounts
BS 25 L. Rule 1 000 1 000

Ledger 2021
Feb
25 Bank CRJ 1 000
Bank B7
2021
Feb 12 Debtors control CRJ 240

Ledger L. Rule D1
2021
Feb
7 Invoice no 5 DJ 1 240 1 240
12 C/N 02 DAJ 240 1 000

25 EFT (BS) CRJ 1 000 0
Debtors
List
L. Rule R0
Accounting A/c Dr A/c Cr Assets (A) Owners Equity (O) Liabilities (L)
Equation Bank Debtors Control / L. Rule +1 000
- 1 000 0 0
Debtors decrease on Credit side

Debtor OWES LESS
34
ACTIVITY 3
The Debtors Control account was prepared by an inexperienced accountant. Although the amounts are correct,
the inexperienced accountant made incorrect debit and/or credit entries. Some entries also appear on both
sides.
REQUIRED:
Prepare the CORRECT Debtors Control account on the Answer Sheet.
Balance the account at the end of the month.
General Ledger of Luzuko Traders

Balance Sheet Section
Dr Debtors Control Cr
2021 30 Bank CRJ 14 000 2021 1 Balance b/d 14 800
Apr Apr
Sales DJ 12 700 Debtors Allowance DAJ 1 780
Debtors Allowance DAJ 1 780
ACTIVITY 3 : ANSWER SHEET
General Ledger of Luzuko Traders

Balance Sheet Section
Dr Debtors Control Cr
2021 2021
Apr Apr
WEEK 5: SOLUTIONS
35
Topic: CREDIT (CJ & CAJ with Creditors Ledger and General Ledger)
• Accounting concepts • record credit purchases in the Creditors Journal (CJ)
• The accounting cycle and returns to / allowances from creditors in the
• The double entry principle Creditors’ allowance journal (CAJ)
• Cash transactions (CRJ & CPJ) • record payments to creditors in the CPJ
• Posting to the General ledger • post to the General and Creditors’ Ledgers
• Credit Sales transactions
• Posting to the Debtors Ledger

CREDIT TRANSACTIONS
Gr 10 Study & Master PPT (Ch 8)
Pay special attention to: Creditors
• Source documents https://wcedeportal.co.za/eresource/190216
• Credit purchases and Creditors Journal
(CJ) Gr 10 Telematics 2020:
• Returns to /allowances from creditors Basic Accounting concepts
• Creditors Allowances Journal (CAJ)
• Payments to creditors in the CPJ
• Posting to the Creditors Ledger
• Creditors’ List
BASIC CONCEPTS of CREDITORS

Source
Transactions Journals Ledgers Internal control
documents
Credit purchases Credit Invoice Creditors Journal General Ledger Negotiate credit terms with
(CJ ) creditors, e.g. 60 days payment
Returns to OR Debit Note Creditors Creditors Ledger Compare monthly statement

allowances from Allowances received from creditors with the
creditors Journal (CAJ ) Creditors' Ledger accounts
before making payments
Payments made Bank statement Cash Payments Creditors List Pay creditors on time to avoid
to creditors Journal (CPJ ) interest
CREDIT PURCHASES
• RECEIVES a credit invoice (source document)

• Entered in the CJ (Creditors Journal) [Purchase price]
• Double entry in the General Ledger is: Dr Trading Stock/ Equipment/ Stationery/etc.
Cr Creditors Control
• Creditors Ledger account: Cr Creditor (purchase price)
36
EXAMPLE 1
Mar 5 , 2021: Receive credit invoice 256 for goods R2 800 less 10% trade discount and
Transaction
stationery R400 from Rainbow Suppliers. Renumber the invoice to number 75.
Source
document
Credit invoice
Journal Creditors Journal of MAGNIFICENT Traders --- March 2021 CJ 1

Invoice Creditors Sundry
D Details Trading Stock Stationery Details
nr control accounts
Rainbow
75 5 3 020 2 620 400
Suppliers
General DR Creditors Control B6 CR
Ledger 2021 5 Sundry CJ 1 3 020
Mar Purchases
Trading Stock B7
2021 Creditors
Mar 5 CJ1 2 620
Control
Stationery N5
2021 5 Creditors
Mar CJ1 400
Control
Creditors Creditors Ledger of MAGNIFICENT Traders

Ledger Rainbow Suppliers C1
2021
5 Invoice no 75 CJ1 3 020 3 020
Mar
Creditors
List
Rainbow Suppliers R3 020
Acc. Acc Dr Acc Cr Assets(A) Owners Equity (OE) Liabilities(L)
Equation Trading Stock Creditors Control + 2 620 + 2 620
Stationery Creditors Control 0 - 400 + 400
Creditors are liabilities, which increase on the Credit Side.

Creditors are credited to show we owe them MORE
ACTIVITY 1
REQUIRED:
Record the transactions in the Creditors Journal of LIBERTY Traders for March 2021.
Post to the General AND Creditors Ledgers.
INFORMATION:
Transactions March 2021

5 Buy trading stock from Eksteen Traders R 15 000. Invoice 19.
13 Buy the following from Fishy Traders: goods R 3500 and stationery R 1 300.
27 Buy merchandise R7 500 less 10% trade discount, and packing material R600 from Eksteen Traders.
Receive an invoice for R8 100.
31 Buy a computer on credit for R 11 500 from Lesedi Traders.
37
Creditors Journal of LIBERTY Traders --- March 2021 CJ 1
Invoice Creditors Trading Sundry
D Details Stationery Fol Details
nr control Stock accounts
GENERAL LEDGER OF LIBERTY TRADERS

BALANCE SHEET ACCOUNTS SECTION
Dr CREDITORS CONTROL B5 Cr
EQUIPMENT B6
TRADING STOCK B7
NOMINAL SECTION
STATIONERY N5
PACKING MATERIAL N6
CREDITORS LEDGER OF LIBERTY TRADERS

Eksteen Traders C1
Date Document / Details Fol Debit Credit Balance
Fishy Traders C2
Lesedi Traders C3
Creditors List at 31 March 2021

Eksteen Traders
Fishy Traders Creditors List Total & Creditors
Lesedi Traders Control Account closing balance
must be the same at the end of
Creditors list (end total) each month
Creditors control (end balance)
38
RETURNS TO / ALLOWANCE FROM CREDITORS
o Issue a debit note (source document) (D/N)
o Recorded in the Creditors Allowance Journal (CAJ)
o Double entry in General Ledger: Dr the relevant account for the item returned; Cr Creditors Control
o Posting to the Creditors Ledger Account: DEBIT the Creditor
EXAMPLE 2
Mar 9, 2021: . Issue debit note 35 to Rainbow Traders for the return of defective stationery purchased
Transaction
earlier, R 400.
Source
document
Debit note
Journal Creditors Allowance Journal of MAGNIFICENT Traders --- March 2021 CAJ 1
DN Creditors- Sundry
D Details Trading Stock Stationery Details
nr control Accounts
Rainbow
35 9 400 400
Traders
General Dr Creditors Control B6 Cr

Ledger 2021 2021
Sundry Sundry
Mar 9 CAJ 1 400 Mar 5 CJ1 3 020
Allowance Purchases
Stationery N5
2021 Creditors 2021 Creditors
5 CJ 1 400 9 CAJ1 400
Mar Control Mar Control

Ledger
Rainbow Traders C1
2021
5 Invoice no 75 CJ1 3 020 3 020
Mar
9 Debit note 35 CAJ1 400 2 620
Creditors
List Rainbow Traders R 2 620
Acc. Acc Dr Acc Cr Assets (A) Owners Equity (OE) Liabilities (L)
Equation
Creditors Control /
Stationery 0 + 400 - 400
RainbowTraders
Creditors are liabilities, which decrease on the Debit side;

Creditors are debited to indicate that our debt is LESS
39
ACTIVITY 2
REQUIRED:
Record the transactions in the Creditors Allowances Journal of RykeTraders for March 2021.
Only post to the Creditors Ledger.
INFORMATION
Credit balances on 1 March 2021:
Creditors Control 24 650
Y. Sinoko 6 600
J. Gerber 7 250
E. Kruger 4 750
S. Badela 6 050
Transactions
1 Returned damaged goods to J. Gerber, R890. (Issued debit note 43)
4 Claim an allowance from E. Kruger for an overcharge for stationery, R625.
8 Packaging material, R 800 was returned to S. Badela as it was not according to order.
10 Faulty equipment purchased from Y. Sinoko was returned with the debit note for R4 700.
15 Returned damaged packaging material, R820, to J. Gerber.
20 Issued a debit note to S. Badela to claim for trade discount not allowed on an earlier
purchase transaction, R 360.

Creditors Allowances Journal of RYKE Traders - March 2021 CAJ 1
D/N Creditors- Trading Sundry
D Details Stationery Accounts
Fol Details
nr control Stock
40
Creditors Ledger of Ryke Traders
Y. Sinoko C1
2021
Mar 1 Account rendered 6 600
J. Gerber C2
2021
E. Kruger C3
2021
S. Badela C4
2021 6050
Mar 1 Account rendered
Creditors List on 31 March 2021

Y. Sinoko
J.Gerber
E.Kruger
S.Badela
Creditors List (end total)
PAYMENTS TO CREDITORS
• Payments are made by EFT (when we pay creditors' accounts partly or in full)
• Source document is the BS (Bank Statement) as the payment will be confirmed and recorded
only when it appears on the business' bank statement (or daily transaction history).
• Recorded in the CPJ (cash payment journal)
• Payments can be made as follows:
o Electronic fund transfer (EFO)
o Debit and/or credit card
o Cash (not recommended as there MAY not be a proper record of the payment)
41
EXAMPLE 3
Mar 25, 2021: Make an electronic payment, R1 500 to Rainbow Traders as part payment on their
Transaction
account.
Source
document
BS (bank statement)
Journal Cash Payments Journal of MAGNIFICENT Traders --- March 2021 CPJ 1
Creditors Sundry
Doc D Details Bank Details
Control Accounts
Rainbow
BS 25 1 500 1 500
Traders
General Dr Creditors Control B6 Cr

Ledger 2021 Sundry 2021 Sundry
9 CAJ1 400 5 CJ1 3 020
Mar allowance Mar Purchases
25 Bank CPJ1 1 500
31 Balance c/o 1 120
3020 3020
2021
1 Balance b/d 1 120
April
Stationery N5
2021 Creditors 2021 Creditors
5 CJ1 400 9 CAJ1 400
Mar Control Mar Control

Ledger
Rainbow Traders C1
Date Details / Document Fol Debit Credit Balance
2021
Mar 5 Invoice no 75 CJ1 3 020 3 020
9 D/N 35 CAJ1 400 2 620
25 BS CPJ1 1 500 1 120
Creditors
List
Rainbow Traders R 1 120
Acc. Acc Dr Acc Cr Assets (A) Owners Equity (OE) Liabilities (L)
Equation Creditors Control/
Rainbow Traders Bank - 1 500 0 - 1 500
42
ACTIVITY 3
REQUIRED:
Study the Creditors Control account in the General Ledger of Ryke Traders.
Answer the questions below.
GENERAL LEDGER OF RYKE TRADERS

Dr CREDITORS CONTROL B6 Cr
2021 2021
Mar
31 A CAJ 3 000
Mar
1 Balance b/d 5 500
Bank C 15 500 31 B CJ 29 500

Balance c/d D
35 000 35 000
2021
1 Balance b/d 16 500
Apr
1. Provide the details for entries A to D.

A
2. What does the amount of R15 500 on the debit side represent?
3. Name the source document for the transaction of R3 000 on the debit side.
WEEK 6: SOLUTIONS
43
Topic: GENERAL JOURNAL (COMBINED CASH & CREDIT TRANSACTIONS)

You already know about …
• Cash Accounting cycle: source documents; CRJ, CPJ, PCJ; General Ledger; Trial Balance
• Credit Accounting cycle: source documents; DJ, CJ, DAJ, CAJ; General Ledger; Debtors' & Creditors’ Ledgers
• Double entry system in the ledger (debit one account; credit another account)
• Debtors & Creditors lists
The lesson will enable you to…
• Identify transactions that are applicable to the General Journal and correctly enter it in the GJ
Use your TEXTBOOK to read about: Alternative digital resources

GENERAL JOURNAL (GJ) Gr 10 Study& Master video & PPT
General Journal (Ch 10)
Pay special attention to: https://wcedeportal.co.za/eresource/117716
• types of general journal entries
Lucem Gr 10 Text book &Teacher Guide
• format/layout of the GJ
• authorising GJ entries by senior manager https://wcedeportal.co.za/eresource/117641
Chapter 3 (pg 52 - 82)
GENERAL JOURNAL - BASICS

• The General Journal (GJ) caters for transactions which do not occur frequently enough to
justify a special journal for it. These entries cannot be made in any other journal.
• A GJ entry shows the account debited, the account credited and a narration, which is a brief
description of the reason for the entry. It supports the internal and audit processes.
• The GJ caters for entries that include debtors and/or creditors – separate Debtors and Creditors
columns
• Only the Debtors Control and Creditors Control columns are totaled. Totals are posted at month-end.
GENERAL JOURNAL TRANSACTIONS

• Bad debts written off
• Withdrawals of merchandise/other items by the owner
• Interest charged on overdue debtors
• Correction of errors
• Adjustment journal entries at year-end to prepare financial statements (COVERED in Term2 and 3)
BASIC STEPS TO COMPLETE A GENERAL JOURNAL ENTRY
1. Identify the two accounts affected
2. Decide which account to debit and which to credit (Use 'AOL' to help you in this process)
3. The account debited is entered FIRST, with the amount in the debit column
4. The account credited is entered SECOND, with the amount in the credit column.
5. If a debtor or creditor is involved, the 'control' column(s) on the right hand side ALSO need to show
the amount.
44
EXAMPLES TO EXPLAIN GJ ENTRIES
1. Bad Debts written off

T. Terry, who owes R1 000, has been declared insolvent. His estate paid a dividend of 25c in
Transaction
the Rand. The balance of his account must be written off as bad debt.
A/c debited: Bad debts. A bad debt is an expense/loss which is ALWAYS debited.
A/c credited: The debtor’s account (Debtors are assets, which will decrease)
Explanation
Control column: Debtors' Control, credit.(triple entry principle)
[IF a debtor is credited, the amount is ALSO entered in the credit column of Debtors' control]
R750 will be recorded in the GJ – amount never to be received = Bad debts
Calculation
(1 000 – 250 = R750 OR 75c x 1 000 = R750) [R250 will be entered in the CRJ as receipts]
GENERAL JOURNAL – APRIL 2021 GJ 1
Debtors Control Creditors Control
Day Details Fol. DR CR
Dr Cr Dr Cr
Bad debts 750
T. Terry 750 750
(A/c written off as bad debts)
2. Owner withdraws stock or other NON-CASH items

Transaction B. Jones, the owner, took stock, marked at R450 (markup is 50%) for private use.
A/c debited: Drawings (The owner may withdraw cash and other items from his business; it will
decrease the owner's equity).
Explanation A/c credited: Trading stock (Stock is an asset that will decrease)
Control column: NO entries (No debtor or creditor was influenced)
Trading stock is ALWAYS entered at COST.
Calculation R450 (SP) x 100/150 = R300 cost
D Details Fol. DR CR
Dr Cr Dr Cr
Drawings 300
Trading stock 300
(Owner took stock for own use)
3. Interest on OVERDUE debtors' accounts

J. Jonck, a debtor owes R1 200 for the past two months. Charged 3% per year interest on the
Transaction
overdue account.
A/c debited: J. Jonck (The debtor's account (asset) increases as a 'penalty' is added to the balance)
Explanation A/c credited: Interest income (The interest 'earned' is an income, so owner's equity(profit) will increase)
Control columns: Debtors Control is debited. (A debtor's account was debited)
Calculation R1 200 x 3/100 x 2/12 = R6

Dr Cr Dr Cr
J. Jonck 6 6
Interest Income 6
(Charged interest on overdue a/c)
45
The GJ entry for the correction of errors will be determined by the
type of error. ALWAYS follow the suggested procedure.
4. Correction of errors, e.g. wrong amount entered / posted to wrong account / posted to wrong
side of correct account, etc. It is essential that you READ the transaction carefully.
Follow this procedure:
• Establish which TWO accounts are affected by the error
• Determine which account was incorrectly debited or credited
• Determine which account should have been debited or credited
• Make the correction entry in the GJ
Stationery bought on credit from Ream Stationers for R350 was posted from the CJ to the
Consumable stores account. The error must be corrected.
Transaction TWO accounts: Stationery & Consumable stores
Incorrectly debited: Consumable stores
Entry SHOULD be: Stationery debited
A/c debited: Stationery (An expense account is debited; owners' equity (profit) decrease
A/c credited: Consumable stores (Another expense is credited; owners' equity (profit) increase
Explanation (Consumable stores a/c was overstated, and Stationery understated due to this error;
no effect on the profit)
Control columns:. NONE (No debtor or creditor was influenced)
Calculation No calculation necessary
Dr Cr Dr Cr
Stationery 350
Consumable stores 350
(Correction of posting to incorrect a/c)
ACTIVITY 1
REQUIRED
Record the following transactions in the General Journal of Larah Traders for February 2021.
Larah Traders apply 100% mark-up on trading stock.
TRANSACTIONS: FEBRUARY 2021

3 Write off the account of I. Owe as irrecoverable, R500.
9 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.
14 The owner withdrew stock, marked at R1 500, for personal use.
16 Charged debtor A. Andy 10% p.a. interest on her overdue account of 3 months. She owed R600
19 The owner donated stock, R990 (cost price) to the Children’s Home. It was mistakenly debited to
Drawings.
21 Transfer M. Salah’s credit balance, R400 from the Debtors Ledger to the Creditors Ledger.
24 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.
46
GENERAL JOURNAL OF LARAH TRADERS FOR FEBRUARY 2021 GJ 1
DEBTORS’ CREDITORS’
D DETAILS FOL DEBIT CREDIT CONTROL CONTROL
DEBIT CREDIT DEBIT CREDIT
ACTIVITY 2 GENERAL JOURNAL, GENERAL LEDGER AND INTERNAL CONTROL

The following information relates to Kolisi Traders for October 2020. Kolisi Traders maintain a gross profit
mark-up of 50% on cost.
REQUIRED:
2.1 Refer to INFORMATION C: Enter the transactions in the General Journal.
Narrations are not required.
2.2 Use the information from the journals to complete the following accounts in the General Ledger:
(Only close off the Statement of Financial Position accounts)
• Trading stock
• Creditors control
• Stationery
2.3 What can the owner of Kolisi Traders do to ensure that stock is not stolen by his employees? State
THREE internal control measures.
47
INFORMATION:
A. Balances / Totals in the General Ledger on 1 October 2020:
Trading stock 28 000
Creditors control 15 430
Stationery 670
B. Totals of journals on 31 October 2020:

Cash Receipts Journal
Debtors Control
Sundry
Bank Discount Sales Cost of Sales
Received Accounts
allowed
? 8 540 300 19 200 ? 4 500
NOTE: Stationery to the value of R330 was bought and paid for on 23 October 2020.
Cash Payments Journal

Creditors Control
Trading Sundry
Bank Wages Discount
Stock Payments Accounts
received
21 040 3 800 ? 7 040 340 4 200
Debtors Journal Debtors Allowances Journal

Sales Cost of sales Debtors allowances Cost of Sales
15 300 ? 390 200
Creditors Journal
Sundry
Creditors Control Trading Stock Equipment Stationery Packaging
Accounts
12 200 7 800 1 600 700 1 300 800
Creditors Allowances Journal

Sundry
Creditors Control Trading Stock Equipment Stationery Packaging
Accounts
2 400 900 600 300 200 400
General Journal
Debit Credit
Debit Credit Debit Credit
490 236 630 300
C. Transactions to be recorded on 31 October:

• Siya Kolisi, the owner, took stationery (R130) and trading stock (selling price R960; cost price) for
personal use.
• C. Candice, a debtor owing R430, must be written off as irrecoverable.
• 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.
• Repairs of R20 000 was done to the roof of the building. This was entered in the Land and
Buildings account in error.
• B. Patient, whose account was previously written off as bad debt, returned from overseas and
settled his outstanding account of R1 250. This receipt was entered in the Debtors Control column
of the Cash Receipts Journal in error.
48
2.1 GENERAL JOURNAL OF KOLISI TRADERS - OCTOBER 2020
Day Details Dr Cr
Dr Cr Dr Cr
1 Totals 490 236 630 300
2.2
DR GENERAL LEDGER OF KOLISI TRADERS CR
TRADING STOCK (B)
49
CREDITORS CONTROL (B)
STATIONERY (N)
2.3 What can the owner of Kolisi Traders do to ensure that stock is not stolen by his employees?
State THREE internal control measures.
WEEK 7: SOLUTIONS
50

GR 10 2021 T1 LESSON Booklet

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Directorate: Curriculum FET

Topic: Introduction to Ethics, Internal control & GAAP

Use your TEXTBOOK to read about: Alternative digital resources:

BASIC PRINCIPLES OF GOOD (ethical) GOVERNANCE* (based on King Code III )

CHARACTERISTICS OF GOOD ETHICS

Internal control refers to processes applied by the business.

NEED/Importance for internal control:

2. Proper authorization of transactions / proper signatures on all documents (where applicable)

3. Accurate documentation & proper recording procedures

Generally accepted principles in accounting:

Prudence • Accountants should be conservative when preparing financial statements.

GAAP principle applied

Topic: CASH: CRJ & posting to GL

Use your TEXTBOOK to read about Alternative digital resources:

FLOW OF ENTRIES IN THE ACCOUNTING CYCLE

Cheques are NOT accepted as

• In Gr 10 - 12 Accounting CHEQUES will be replaced by Electronic Funds Transfers (EFTs) as a method

This journal (subsidiary book) is used to record

INTERNET BANKING (Electronic Fund Transfer – EFT)

From the business point of view:

FORMAT OF THE CASH RECEIPT JOURNAL (CRJ)

Cash Receipt Journal of ……………… - January 2021 CRJ1

Cost of Sales calculation Selling price calculation

TRANSACTIONS: January 2021

Cash Receipts Journal of Rixi Traders – January 2021 CRJ1

SOLUTION (Posting to ledger)

NOMINAL ACCOUNTS SECTION

ACTIVITY 1: ANSWER SHEET

GENERAL LEDGER OF PAWU TRADERS

Nominal Account Section

ACTIVITY 2: ANSWER SHEET

GENERAL LEDGER OF CYNOH TRADERS

Nominal Account Section

INTEREST ON FIXED DEPOSIT N4

Topic: CASH: CPJ and posting to the General Ledger (GL)

Use your TEXTBOOK to read about Alternative digital resources

FLOW OF ENTRIES IN THE ACCOUNTING CYCLE

ADDITIONAL CASH TRANSACTIONS (extended)

5. Discount allowed to debtors

6. EFT paid to creditors

7. Discount Received (from creditors)

9. Fixed Deposits & Interest on fixed deposit

10. Loans & Interest on loans

This journal (subsidiary book) is used to record

INTERNET BANKING (Electronic Fund Transfer – EFT)

FORMAT OF THE CASH PAYMENTS JOURNAL (CPJ)

TRANSACTIONS: January 2021

EXAMPLE SOLUTION (CPJ)

ACTIVITY 1 ANSWER SHEET

CREDITORS CONTROL B10

FIXED DEPOSIT: NEW BANK B11

LOAN: JAZZ BANK B12

Nominal Account Section

BANK CHARGES N11

INTEREST ON OVERDRAFT N12

DISCOUNT RECEIVED N12

No. Account debited Account credited A = O + L

1 Wages Bank -20 500 -20 500 0

Topic: PETTY CASH JOURNAL & POSTING TO THE GENERAL LEDGER

Use your TEXTBOOK to read about Alternative digital resources

FORMAT of the PETTY CASH JOURNAL

POSTING TO THE GENERAL LEDGER (Taking into account IMPREST AMOUNT)

INTERNAL CONTROL OF PETTY CASH