THE BALANCE OF

ACCOUNTING

GRADE 9
LEARNER GUIDE

AUTHOR: L Higgs

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 Overview

The aim of this book is to provide adequate explanations and practice activities to provide a good
understanding of the basic accounting principles to learners in Grade 9. The textbook is divided into
four chapters – each chapter pertains to the syllabus that must be covered per term according to
the CAPS ATP. Term 4 activities combine all work covered from Term 1 to 3 and are based on
examination type questions.

An answer booklet, with all headings, is provided at the end of the textbook where learners can
practice their skills. A Teachers’ Guide is also available.

All work pertained in this textbook is the intellectual property of Mrs L Higgs.
Copyright

ISBN

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 CHAPTER 1 (Term 1)
RECAP - Accounting concepts 5
- Account classification table 7
Trading business concepts 8
Calculating Selling Price 9
Act 1.1 9
Calculating Cost Price (Cost of Sales) 9
Act 1.2 9
Calculating mark-up percentage 10
Act 1.3 10
Act 1.4 10
Trade discount 11
Transport cost 11
Accounting equation
Act 1.5 13
Act 1.6 13
Act 1.7 13
Act 1.8 13
Cash Journals and General Ledger of a Trading business 14
Act 1.9 18
Act 1.10 19
Act 1.11 21
Act 1.12 22
Trial Balance of a Trading business 24
Act 1.13 25
Act 1.14 25
Act 1.15 25

CHAPTER 2 (Term 2)
Debtors - Concepts 26
- Advantages and disadvantages of credit 26
National Credit Act (NCA) overview 27
Debtors Journal 29
Act 2.1 29
Recording payments received from debtors
Act 2.2 30

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 Act 2.3 30
Debtors Allowance Journal 31
Act 2.4 33
Act 2.5 34
CRJ, DJ, DAJ, General Ledger and Debtors’ Ledger 35
Act 2.6 40
Act 2.7 41
Act 2.8 42
Act 2.9 43
Accounting Equation
Act 2.10 44

CHAPTER 3 (Term 3)
Creditors concepts 45
Creditors Journal 46
Act 3.1 47
Payments to creditors
Act 3.2 48
Act 3.3 48
Creditors Allowance Journal 49
Act 3.4 50
CPJ, CJ, CAJ, General Ledger and Creditors’ Ledger 51
Act 3.5 55
Act 3.6 56
Act 3.7 57
Accounting Equation
Act 3.8 58

CHAPTER 4 (Term 4)
Combining all journals and ledgers
Act 4.1 59
Act 4.2 60
Act 4.3 61
Act 4.4 (General Ledger) 63
Act 4.5 (Debtors’ Ledger) 64
Act 4.6 (Creditors’ Ledger) 64
Act 4.7 and 4. 8 (Trial Balance) 65
Act 4.9 (Accounting Equation) 66
ANSWER BOOK 67

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 CHAPTER 1
ACCOUNTING CONCEPTS
1. OWNERS’ EQUITY:
This is the owner’s interests in the business. When someone starts a business, they must put some
of their own money/and or assets into the business. This is called capital and will increase Owner’s
Equity. If the owner takes any money out of the business for own, personal use, it is called
Drawings, and this will decrease Owner’s Equity. If the owner does not have his/her own money,
the will have to borrow the money to start his/her business.

The main reason a person starts a business is to make a profit – therefore the profit OR loss made
by the business also belongs to the owner. We can therefore say that:

Owner’s Equity = Capital + Profit - Drawings or

Owner’s Equity = Capital - Loss - Drawings

2. ASSETS:
These are things that belong to the business. Assets can be divided into three types namely:

2.1 TANGIBLE (FIXED) ASSETS:

These are possessions of a relatively long life which are necessary for businesses to exist and
operate effectively e.g. Land and Buildings, Equipment (including furniture and machinery) and
Vehicles.

2.2 FINANCIAL ASSETS:

This refers to any long- term investments the business has e.g. Fixed Deposits.

2.3 CURRENT ASSETS:

This refers to any short -term assets – assets that change constantly. E.g. the money of the business
in the Bank, Petty Cash and Cash Float (change in the cash register); Trading Stock (goods
purchased for resale at a profit,) and Debtors (people who owe money to the business).

3. LIABILITIES:
This is when you, the business, owes someone money. Liabilities can be divided into two types,
namely:

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3.1. NON-CURRENT LIABILITIES:
Any money owed that will be repaid over a long period of time (longer than a year). E.g. loan,
mortgage bond.

3.2. CURRENT LIABILITIES:

This refers to money owed that will be repaid over a short period of time. E.g. when a business
spends (by arrangement with the bank) more money than it has in its bank account, it is referred to
as bank overdraft. Another current liability is a Creditor (people/suppliers to whom the business
owes money to).

4. PROFIT or LOSS
Profit is when incomes exceed expense and
Loss is when expenses exceed incomes.

4.1 INCOME:
This is what we call the money that the business receives/will receive that will increase the profit of
the business. Incomes will increase Owner’s Equity.
e.g. Current Income (from services rendered), Rent Income and Sales.

4.2 EXPENSES:
This is what we call the money that the business has to pay/paid for the day-to-day running of the
business and will decrease profits of the business. Expenses will decrease Owner’s Equity.
e.g. Material Cost, Cost of sales, Salaries, Insurance, Telephone, Stationery, etc.

There are three types of businesses:

1. Service business: e.g. hairdresser; drycleaner
These businesses offer a service to customers in exchange for payment, called Current
Income. The products the business buys to provide the service is called Material Cost which
is an expense to the business.

2. Trading business: e.g. Spar, Woolworths

These businesses sell goods (trading stock) to consumers at a profit.

3. Manufacturing business: e.g. Johnson & Johnson factory

These businesses (factories) produce (make) goods to sell to other businesses.

ACCOUNTING EQUATION
A = OE + L
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 ACCOUNT CLASSIFICATION:
Land and buildings

Tangible/Fixed Assets Vehicles

Equipment

ASSETS Financial Assets Fixed Deposit or Investments

Trading stock
Debtors
Bank
Current Assets
Cash float
Petty cash

Non-current liabilities Mortgage bond or Loan

LIABILITIES (Long Term)

Current liabilities Creditors

(Short Term) Bank overdraft

Owner’s personal Capital

accounts Drawings

Current income
Sales

Income (OE +) Rent income

Donation (received)
Interest on a fixed deposit
Material cost
OWNER’S EQUITY Cost of Sales
Telephone
Water and electricity
Wages and salaries

Expenses (OE -) Trading license

Stationery
Rent expense
Donation (made)
Packing material
Vehicle expense
Packing material
Repairs
Insurance

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TRADING BUSINESS
Last year, in Grade 8, the focus was on completing the accounting books of a service business. This
year, we will follow the same accounting cycle (processes) to complete the accounting books of a
trading business. So, what is a trading business?

A trading business sells goods, called Trading Stock, for a profit. This profit is called a Gross Profit,
as it is not the final profit of the business.

Let us look at some of the new terms and their meanings!

TRADING STOCK
These are the goods/items bought by the business, with the purpose of reselling it at a profit e.g.
Spar buys chocolates from Cadbury for R15 per slab and puts them on their shelves for customers
to buy. The chocolates are the trading stock of Spar and is classified as a Current asset.

SALES
This indicates how much you sell the trading stock for. E.g. Spar sells each slab of chocolate for
R21. When a business sells its stock, it will increase business profits and is therefore classified as
an Income.

COST OF SALES
This is the term we use when Trading stock has been sold. Businesses does not always sell all
trading stock bought in a month and that is why they need to know how much each item, that they
are selling, cost to purchase. The cost price is always ‘full price’ – 100%.
Remember, Spar had to buy the Trading stock (Cadbury slab for R15) BEFORE they can sell it,
therefore the Cost of Sales of each Cadbury slab will be R15 per slab. Cost of sales will decrease
your profits and is therefore classified as an Expense.

Businesses sell their trading stock for more than the cost price to make a Gross Profit.

Gross Profit = Sales – Cost of Sales

There are different ways that a business can calculate how much they need to sell their stock for.
We are now going to work through some calculations that businesses will use. These calculations
are used by all businesses that sell trading stock.

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RCALCULATING SELLING PRICE Let’s work through an example:

The cost price of a slab of chocolate is R15

and the business wants to make a 40%
𝟏𝟎𝟎+𝐌𝐚𝐫𝐤 𝐮𝐩% profit (mark-up). Calculate the selling price.
𝑺𝑷 = x 𝐂𝐨𝐬𝐭 𝐏𝐫𝐢𝐜𝐞
𝟏𝟎𝟎 𝟏𝟎𝟎+𝟒𝟎
𝑺𝑷 = x R15
𝟏𝟎𝟎

= R21

Let’s practice using this formula by completing the table in your learner guide:

ACT 1.1

No Cost price Mark-up % Selling price ( R ) calculation

1 650 40
2 1 200 331/3
3 330 10
4 14 800 25
5 960 60
6 220 50

CALCULATING COST OF SALES (Cost Price)

Let’s work through an example:
𝟏𝟎𝟎
𝑪𝑷 = x SP The selling price of a slab of chocolate is
𝟏𝟎𝟎+𝐌𝐚𝐫𝐤 𝐮𝐩% R21 and the business wants to make a 40%
profit (mark-up). Calculate the cost price.
𝟏𝟎𝟎
𝑪𝑷 = 𝟏𝟎𝟎+𝟒𝟎 x R21
= R15

Let’s practice by completing the table in your learner guide:

ACT 1.2
No Selling price Mark-up % Cost price ( R ) calculation
1 280 40
2 1 000 331/3
3 946 10
4 518,75 25
5 20 000 60
6 480 50

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CALCULATING MARK-UP PERCENTAGE
REMEMBER:

Gross Profit = Sales – Cost of Sales

𝐆𝐫𝐨𝐬𝐬 𝐩𝐫𝐨𝐟𝐢𝐭
𝑴𝒂𝒓𝒌 𝒖𝒑 % = 𝐂𝐨𝐬𝐭 𝐨𝐟 𝐬𝐚𝐥𝐞𝐬 x 100

Let’s work through an example:

The selling price of a slab of chocolate is

R21 and the cost price is R15. Calculate
the mark-up %.
𝟐𝟏−𝟏𝟓
𝑴𝒂𝒓𝒌 − 𝒖𝒑 % = x 100
𝟏𝟓

= 40%

Let’s practice by completing the table in your learner guide:

Act 1.3

No Selling price Cost price Mark-up % calculation

1 2 125,20 1 265
2 300 200
3 645 455
4 12 000 9 000
5 996 796,80

Act 1.4
Complete the missing figures in the table below.

No Cost price Selling price Mark-up % Profit (R) Calculation

1 12 500 3 800
2 2 560 125
3 86 933 130 400
4 254 15
5 4 500 1 200
6 667 662/3
7 12,50 10

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TRADE DISCOUNT
This is the discount granted by one supplier to another, on goods (trading stock) for resale. This
discount is NOT shown in the accounting books of the purchaser. The business will calculate the
discount, subtract the amount from the original purchase price and enter the reduced amount in
the relevant journal.

EXAMPLE: Bought trading stock for R1 000 and received a 5% trade discount.

1 000 x 5/100 = R50 discount, therefore R1 000 – 50 = R950 entered in the CPJ

OR

1 000 x 95% = R950 entered in the CPJ

TRANSPORT COST
Any transport cost incurred by a business to get trading stock to its business premises must be
included in the value of trading stock – there is NO separate account for transport cost of trading
stock!

EXAMPLE: Bought trading stock from DS Stores for R5 000. DS stores charged R200
delivery fees (transport cost) to our shop. Paid by debit card.

Account Dr: Trading stock 5 200

Account Cr: Bank 5 200

TRANSACTIONS:

1. Bought trading stock from Coastal Suppliers, R1 970 and paid by debit card.
2. Paid for the transportation of goods to the business premises to Fast Deliveries via
EFT, R180.
3. Sold goods for R1 200 cash (Cost of sales R850).

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 SOLUTION

No ACCOUNT ACCOUNT ASSETS OWNERS EQUITY

DEBIT CREDIT EFFECT REASON EFFECT REASON

1. Trading Bank +1 970 Trading stock

stock increase
-1 970 Bank decrease

2. Trading Bank +180 Trading stock

stock increase
-180 Bank decrease

3. Bank Sales +1 200 Bank increase +1 200 Sales - income

Cost of Trading -850 Trading stock -850 Cost of sales -

sales stock decrease expense

Explanation:

1. Trading stock purchased belongs to the business and is classified as a current asset. When you
purchase trading stock you have more stock than before and therefore your assets will increase
(Debit) by R1970.
The stock was not for free – you paid for it with the money in your bank account (asset) and therefore
it will decrease (credit) by R1 970.

2. Remember – there is no such thing as transport cost of trading stock – it must be added to trading
stock, meaning that the value of trading stock (asset) is increasing (debit) by R180.
Again, this was not for free – you paid for it with the money in your bank account (asset) and therefore
it will decrease (credit) by R180.

3. This transaction has two parts and will affect four (4) accounts. Ask the following questions:
a) What did you get?
Money – this will increase your bank account (asset; debit) with R1 200.

b) Why did you get this money?

You sold something – Sales is an income and will increase Owners’ Equity (credit) by R1 200.

c) What did you sell?

Trading stock – you will now have less trading stock (asset; credit) in the business. The value of
stock leaving your business was R850.

d) What do we call trading stock that is sold?

Cost of sales – this is an expense that will decrease Owners’ equity (debit) by R850.

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ACT 1.5
Analyse the transactions below:

1. Bought trading stock from RJ Supplies and paid by EFT, R7 300.

2. Made an internet transfer to Boet Stores for goods, R900 and the transportation of the goods
to my warehouse, R150.
3. Sold goods for cash, R1 200 (Cost of sales R900).

ACT 1.6
Analyse the transactions below:

1. The owner increased his capital contribution from R800 000 to R1 000 000 by depositing the
money into the business bank account.
2. Purchased trading stock by debit card, R2 000 less 2% trade discount.
3. Received rent from a tenant, R12 000.
4. Sold trading stock for cash, R4 000 (mark-up 331/3%).
5. Bought stationery and made an EFT, R350.
6. Services rendered for cash, R1 300.
7. The owner filled up his wife’s car with petrol and paid with the business debit card, R800.
8. Paid for transportation cost of goods to the store via EFT, R650.

ACT 1.7
Analyse the transactions below:
1. The owner increased his capital contribution by R20 000.
2. Paid Dot Ads via internet transfer R 980, being R560 for stationery and the rest for
advertising.
3. Received rent from a tenant, R4 600.
4. Sold trading stock for cash, R730 (profit R230).
5. Bought stationery, R250 and packing material, R540 by EFT.
6. Paid SS Suppliers for merchandise, R890 and transport cost, R70.
7. The owner took cash for own use, R200.
8. Paid rates and taxes, R1 000 and the water account, R200 by EFT to BCM

ACT 1.8
Analyse the transactions below:
1. The owner increased his capital contribution by bringing his own vehicle to be used by the
business, R70 000.
2. Purchased trading stock with a debit card, R3 000.
3. Paid rent, R7 000.
4. Sold trading stock for cash, R4 200 (mark-up 25%).
5. Bought stationery, R250 and packing material, R540 and made an EFT.
6. Bought goods for cash R1 250, less 4% trade discount.
7. The owner took cash for own use, R700.
8. Paid the telephone account, R780.

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JOURNALS
CASH RECEIPTS JOURNAL CASH PAYMENTS JOURNAL
All money received by the business. All money paid by the business.
• Cash Sales (CRR) • EFT (issued)
• Receipt issued • TS (Transaction slip)

Let us look at the layout of a Cash Receipts Journal (CRJ). Remember, every time a business
receives money, in any form, an entry must be made in this journal.

Cash Receipts Journal of ABC Stores – January 2024 CRJ

DOC DAY DETAILS ANALYSIS BANK SALES COST OF SUNDRY ACCOUNTS
NO OF SALES
AMOUNT DETAILS
RECEIPTS
(1) (2) (3) (4) (5) (6) (7) (8) (9)

What do the columns mean?

(1) Abbreviation and number of the Source Document for the transaction (In number order)

(2) Date of transaction

(3) Name of person who gave the business money/ Sales if you sold trading stock for cash

(4) The ‘Till’ column – amounts are only entered here if you physically receive the money. (Skip
this column if it was a direct deposit)

A line must be drawn at the end of each DAY in this column to indicate the end of a day.

(5) Shows the amount that will increase the Bank (amount received).

(6) Selling price of the trading stock sold for cash.

(7) Cost price of the trading stock sold for cash.

(8) Sundry Accounts: these columns are used if there is NO specific column allocated for a
transaction. The amount received will be entered in (8) and the correct Accounting name
(Classification) must be entered in (9).

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Let us look at the layout of a Cash Payments Journal (CPJ). Remember, every time a business pays
money, in any form, an entry must be made in this journal.

Cash Payments Journal of ABC Stores – January 2024 CPJ

DOC DAY NAME OF BANK WAGES TRADING SUNDRY ACCOUNTS
PAYEE STOCK
AMOUNT DETAILS
(1) (2) (3) (4) (5) (6) (7) (8)

What do the columns mean?

(1) Abbreviation and number of Source Document for the transaction – in number order

(2) Date of transaction

(3) Name of person/business that you paid

(4) Shows the amount that will decrease the Bank with (Amount paid).

(5)
Columns for accounts where payments are made regularly in a month.
(6)

(7) Sundry Accounts: these columns are used if there is NO specific column allocated for a
transaction. The amount paid will be entered in (7) and the correct Accounting name
(Classification) must be entered in (8).

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 EL Appliance Centre sell small appliances to customers on a cash basis only. They use a 30% mark-up
on cost of sales to calculate their selling price.
INSTRUCTION:
1. Complete the Cash Receipts Journal and Cash Payments Journal of EL Appliance Centre for
January 2024.
2. Complete the relevant General Ledger accounts for January 2024.

Transactions for January 2024

1 Purchase goods for resale, R10 200 from BB Stores. BB Stores charged a R200
delivery fee. and paid by debit card.
Sold goods for cash, R19 500.

3 Purchase the following from All Supplies and EFT them for:
Stationery, R670 and trading stock R4 800 (subject to a 5% trade discount).

18 Drew R1 500 at the ATM to pay wages.

23 Sold goods, with a cost price of R23 400, for cash.

30 Paid MTN R3 200 by EFT. This was to pay for the business telephone account of
R1 900 and the rest was for the owner’s private phone account.
Received R8 000 via direct deposit from T Travis, a tenant. Issued receipt 67.

CASH RECEIPTS JOURNAL of EL Appliance Centre – January 2024 CRJ

DOC DAY DETAILS ANALYSIS BANK SALES COST OF SUNDRY ACCOUNTS
NO OF SALES
RECEIPTS AMOUNT DETAILS
CRR 1 Sales 19 500 19 500 19 500 15 000
CRR 23 Sales 30 420 30 420 30 420 23 400
R67 30 T Travis 8 000 8 000 Rent income
BS

57 920 49 920 38 400 8 000

CASH PAYMENTS JOURNAL of EL Appliance Centre – January 2024 CPJ

DOC DAY DETAILS BANK WAGES TRADING SUNDRY ACCOUNTS
NO STOCK
AMOUNT DETAILS

TS 1 BB Stores 10 400 10 400

EFT 3 All Suppliers 5 430 4 560 870 Stationery
TS 18 Cash 1 500 1 500
EFT 30 MTN 3 200 1 900 Telephone
1 300 Drawings
20 530 1 500 14 960 4 070

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 The following balances/totals appeared in the books of EL Appliance Centre on
1 January 2024:

Bank R12 870

Trading stock 75 400
Sales 54 990
Cost of Sales 43 200

GENERAL LEDGER OF EL APPLIANCE CENTRE

BALANCE SHEET SECTION
BANK B
Date Details Fol Amount Date Details Fol Amount
2024 1 Balance b/d 12 870 2024 31 Total CPJ 20 530
Jan Jan Payments
31 Total CRJ 57 920 Balance c/d 50 260
Receipts
70 790 70 790
2024 1 Balance b/d 50 260
Feb

TRADING STOCK B
Date Details Fol Amount Date Details Fol Amount
2024 1 Balance b/d 75 400 2024 31 Cost of CRJ 38 400
Jan Jan sales
31 Bank CPJ 14 950 Balance c/d 51 950
90 350 90 350
2024 1 Balance b/d 51 950
Feb

NOMINAL ACCOUNT SECTION

SALES N
Date Details Fol Amount Date Details Fol Amount
2024 1 Total b/f 54 990
Jan

31 Bank CRJ 49 920

104 910

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 COST OF SALES N
Date Details Fol Amount Date Details Fol Amount
2024 1 Total b/f 43 200
Jan

31 Trading stock CRJ 38 400

81 600

ACT 1.9
Miss K Itall is the owner of Tiny Bubbles, a soap shop. She uses a mark-up of 50% on cost price.

Complete the following:

• Cash Journals for January 2024
• General Ledger accounts for January 2024 – Balance/ Total properly.

Balances/Totals: 1 January 2024

Capital 570 000 Sales 780 000
Drawings 12 000 Cost of sales 520 000
Equipment 45 000 Rent income 18 000
Trading stock 33 400 Stationery 1 350
Bank 23 145 Wages 2 700

Transactions: January 2024

1 The owner, K Itall, increased her capital by 10% and deposited the money straight into the
business bank account; receipt 031.
Cash sales of merchandise, R2 700.

3 Received rent from our tenant, Super Flooring. R6 000 was deposited straight into the bank
account of the business.
Cash sales of goods, R7 200.
Paid Telkom R1 870 by EFT. R1 250 was for the business telephone account and the rest
for the owners’ personal account.

9 Bought stationery, R560 and packing material, R1 900 from PEN Supplies; paid with a debit
card.
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12 Paid Yellow Arrow via internet transfer, R540 for advertising flyers.

14 Paid wages by drawing at the ATM using a debit card, R900.

Cash sales of merchandise with a cost of R7 950.

19 The owner drew cash from an ATM for personal use, R400.

23 The owner increased her capital to R630 000.She gave the cash to the bookkeeper.
Cash sales of goods R3 000.
Purchased goods from Top Supplies, R11 300 and paid via EFT.

27 Paid the salary of the manager, H Peter, R8 500, by internet transfer.

Drew money from the ATM to pay wages, R900.
Purchased merchandise from Macro Deals, R24 500 less 2% trade discount; made an EFT.

ACT 1.10
Mrs Carol Hope is the owner of a clothing shop called Hopewell Style. She also does alterations on
clothing and charges the following rates:
- Pants hem R50
- Dress hem R60
- Fixing zips R30

Complete the following:

• Cash Journals for February 2024
• General Ledger accounts for February 2024 – Balance/Total properly.

Balances/Totals: 1 February 2024

Capital 210 000 Sales 84 200

Drawings 18 500 Cost of sales 63 150
Equipment 19 200 Current Income 490
Trading stock 125 750 Stationery 260
Bank 51 235 Rent expense 7 600

Transactions: February 2024

1 The owner, C Hope, increased her capital by depositing R10 000 straight into the business
bank account; Receipt 007 issued.
Cash sales of merchandise, R2 900.
3 Paid rent to Balfour Place, R7 600 via EFT.
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 Made an internet transfer to Sanlam for R 2 200 for the insurance premium of the business.
Cash sales of goods, R8 000.
Mrs Hope did the following alterations:
X2 pants’ hems
X3 dress’ hems
X3 zips fixed

9 Paid BCM R2 670 by EFT. R1 850 was for the business’ water and electricity account and
the rest for the owners’ personal account.
Bought printing paper, R560 and packing material, R660 from Goldi Supplies; Paid by debit
card.

12 Drew money from the ATM to pay wages R750.

Mrs Hope made the following alterations: x 5 dress hems.
Purchased dresses for resale from Bo Boutique, R12 500; made an EFT.

14 Cash sales of merchandise with a cost of R6 375

The following alterations were made:
x 5 pants’ hems
x3 dress’ hems
x7 zips fixed
Purchased a new sewing machine from Empisal, R5 300. Paid via internet transfer.

19 The owner paid Galaxy with a debit card, R400. This was in payment of a bangle she bought
for her daughter’s birthday.

23 The owner increased her capital by R5 000. She gave cash to the bookkeeper.
Cash sales of goods, R12 000.
Purchase stationery, R540 and made an EFT to Waltons.

27 Paid the salary of the manager, D Voges, by EFT, R7 900.

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ACT 1.11
Ms D Dani is the owner of a music shop called LHP Music. She sells music CDs and DVDs. She
uses a mark-up of 331/3%.

Complete the following:

• Cash Journals for March 2024
• General Ledger accounts for March 2024 – Balance/Total properly.

Balances/Totals: 1 March 2024

Capital 930 000 Sales 203 420

Drawings 23 500 Cost of sales ???
Equipment 33 250 Telephone 2 490
Trading stock 241 321 Packing material 2 110
Bank 12 985 Insurance 3 420

Transactions: March 2024

3 Made an internet transfer to King Insurance for the insurance premium, R1 209.

LHP Music
6 06/03/2024

Sia CD 10304 R 235

Pink CD 28672 R 225

Due: 460
Tendered: 500
Change: 40
THANK YOU!

Paid Telkom via EFT for the following: R1 150 for the business telephone account, and R375
9 for the owners’ personal account.
Bought merchandise from Sony Songs and paid with a debit card, R3 500 less 3% trade
discount.

12 Paid Green Box by EFT for packing material, R987.

Drew cash from the ATM to increase the cash float, R500.

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14 Paid two week’s wages of two employees. Employees are paid R50 per hr and each
employee worked 40hrs a week. Drew cash at the ATM.
Cash sales of merchandise with a cost of R3 666.
19 The owner increased her capital contribution by depositing R20 000 directly into the business
bank account; Receipt 16 was issued.
Cash sales of merchandise, R1 708.

23 Purchased a new shelve to displays CDs, R1 300 and made an EFT payment to ShelveCor.
Purchased packing material from Out The Box, R670 and made an internet transfer.

25 RECEIPT No17
25 Mar 2024
From: Pearl Jam
Amount: R8 000
For: Rent

Thank you! D Dani

27 Paid the salary of the manageress, Bev Kay by internet transfer, R6 100
Imported merchandise from OVO, R23 500. Import duties amount to $960 (1$ = R14,65)
Made an internet transfer.

ACT 1.12
Mr D Glover is the owner of an appliance shop, Techno World. He sells fridges, freezers,
microwaves, and stoves. He sells Fridges % Freezers at a mark-up of 30%, and Microwaves &
Stoves at a mark-up of 35%. He re-gasses fridges for a nominal charge of R500.

Complete the following:

• Cash Journals for April 2024
• General Ledger accounts for April 2024 – Balance/Total properly.

Balances/Totals: 1 April 2024

Capital 630 000 Sales 325 757

Drawings 35 500 Cost of sales 211 980
Equipment 20 250 Current income 7 500
Trading stock 560 000 Stationery 2 490
Bank (cr) 2 103 Consumable goods 11 900

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Transactions: April 2024

2 Drew cash from the ATM to increase the cash float, R650.
The business re-gassed 4 fridges.

2 Sold the following:

Fridge R6 500
2x microwaves at R1 620 each
3x stoves at R6 075 each.

9 Made an EFT to MX Motors for a new delivery truck bought, R90 000.
Bought merchandise from Samsung and made an internet transfer for R65 900 less 2% trade
discount.
Paid ITT for the transport of these goods to the premises of Techno World, R1 340 via EFT.

13 Paid Gas Co by EFT for gas to refill appliances, R1 798.

15 Paid wages by drawing cash at the ATM R1 670.

Cash sales of merchandise with a cost of R12 400; this was for 5 microwaves.

21 The owner paid Glamour Styles R2 800 for his daughters’ dance dress via EFT.

24 Purchased a microwave from Samsung, R1 700 to be used in the kitchen of Techno World
and a new fridge for resale, R3 200; Used the business debit card.

26 Cash sales of merchandise, R19 500 (cost R15 000).

Received rent from tenant, Lyle Late, R7 150 in cash; Receipt 122.

30 Paid the salary of the manageress, TJ Spin by EFT, R7 900.

Purchase stationery from CNC, R543; paid by debit card.
Paid BCM by EFT, R4 320 being R2 300 for rates and taxes and the rest for electricity.

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 TRIAL BALANCE
In Accounting, it is always important to ‘double check’ your work. One way a bookkeeper will check
that the double entry principle has been applied correctly, is to draw up a Trial Balance; i.e.
Debits = Credits

A Trial Balance is a list of all the final totals/balances of the General

Ledger accounts.
• If the balance/total is on the debit side, it must be entered in the
debit column in the Trial Balance.
• If the balance/total is on the credit side, it must be entered in the
credit column in the Trial Balance.

Look at the layout of a Trial Balance in Grade 9 (new accounts):

Trial Balance of JJ Stores on 31 January 2024 ORDER in Trial Balance

BALANCE SHEET ACCOUNTS Fol Debit Credit
Capital B1 650 330 Balance Sheet Section:
Drawings B2 24 000
Equipment B3 124 300 1. Capital
Vehicles B4 340 000 2. Drawings
Trading stock B5 35 737 3. Fixed Assets
Bank B6 35 350 4. Current assets
NOMINAL ACCOUNTS SECTION
Sales N1 345 742 Nominal Account Section:
Cost of Sales 276 593
Material cost N2 110 520 1. Sales
Wages N3 21 000 2. Cost of Sales
Telephone N4 6 160 3. Rest of incomes and
Water and electricity N5 7 850 expenses
Rates and taxes N6 3 412
Insurance N7 6 850
Stationery N8 1 900
Vehicle expense N9 2 400
996 072 996 072

Steps to complete a Trial Balance:

1. Enter the names of the accounts in the correct order .
2. Write the final amounts in the correct column – Debit/Credit.
3. Total the Debit and Credit column.

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ACT 1.13
Draw up the Trial Balance of Blanko Stores on 31 May 2024 using the information below

Capital ? Sales 48 000

Drawings 12 000 Cost of sales 24 000
Equipment 48 000 Rent income 5 600
Trading stock 35 700 Stationery 1 845
Cash float 1 000 Insurance 2 055
Bank 22 500 dr Wages 890

ACT 1.14
Draw up the Trial Balance of Cabby Shick on 30 June 2024 using the information below

Capital 145 000 Sales 320 450

Drawings 5 600 Cost of sales 241 220
Equipment 124 000 Rent expense 8 900
Trading stock ? Stationery 670
Cash float 900 Telephone 1 230
Bank 1 890 cr Wages 2 200

ACT 1.15
Draw up the Trial Balance of Daisy Stores on 31 July 2024 using the information below

Equipment 145 800 Drawings 13 400

Sales 650 420 Rent income 15 800
Capital ? Bank (dr) 45 890
Stationery 2 470 Packing material 4 652
Cost of sales 465 112 Trading stock 85 790
Cash float 1 800 Wages 6 450

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 CHAPTER 2
DEBTORS (Credit Sales)
When we (the business) sell goods on credit to a customer, we call that customer a DEBTOR.
He/she receives the use of the goods immediately but will only pay at a later stage. This means that
a debtor is someone who owes the business money. Therefore, a DEBTOR is classified as an
ASSET.

Before someone is granted credit, a business must first check whether the person is creditworthy.
The credit limit of the client must be specified in the credit agreement as well as the credit terms.

Creditworthy: Credit limit: Credit terms:

Is the person able to pay The maximum amount, the How long the person have to
back the money that is business is willing to allow the pay back the amount owed.
owed? person to buy for, on credit

ADVANTAGES OF CREDIT:
TO THE BUSINESS TO THE CUSTOMER
• Gains more clients. • Can buy more expensive goods
• Can charge more for goods to cover immediately instead of waiting until they
admin costs. have money available.
• Increased sales leads to increased • Take advantage of sales as they occur
manufacturing which encourages job • Pay account on time - more
creation which stimulates the economy. creditworthy.
• Business can use database for • Reputation – helps with credit
marketing purposes. applications.

DISADVANTAGES OF CREDIT
TO THE BUSINESS TO THE CUSTOMER
• Need more operating credit to finance • Encourage people to spend more than
credit sales. they can afford.
• Admin cost • Customers pay more for goods as a
• Risk of bad debts. result of credit facilities.
• More time consuming – more staff.

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 NATIONAL CREDIT ACT (34 OF 2005)
Regulates the lending of money; aims to protect consumers against reckless granting
of credit and to create a fair credit market.

Applies to any credit purchase, overdrafts, credit cards, instalment agreements, leases, etc.

The NCA lists the following consumer rights:

• Right to be give reasons for credit being refused/discontinued.
• Right to receive contract in one of official languages of your choice.
• Right to information in plain, understandable language.
• Right to have access to & challenge credit records held by credit bureau.

NCA specifies the maximum interest rate that

a business may charge.

It is important for any business to keep track of their credit sales. Each credit sale must be entered
in a Debtors Journal (DJ). The source document issued is an invoice.

When a debtor pays their account, the business receives money, and an entry must be made in the
CRJ. The debtor will now owe the business less.

TRANSACTIONS:

1. Cash sales of merchandise, R1 200 (R800 cost)

VS
2. Credit sale of merchandise, R1 200 (R800 cost)
3. S Snow, a debtor, settles his account by paying R500.

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SOLUTION

Account Debit Account Credit A OE

Effect Effect
1 Bank Sales +1 200 + 1200
Cost of sales Trading stock -800 -800
2 Debtors control Sales +1 200 +1 200
Cost of sales Trading stock -800 -800
3 Bank Debtors control +500
-500
Explanation:
a) What did you get?
1. Money – this will increase your bank account (asset; debit) with R1 200.

b) Why did you get this money?

You sold something – Sales is an income and will increase Owners’ Equity (credit) by R1 200.

c) What did you sell?

Trading stock – you will now have less trading stock (asset; credit) in the business. The value
of stock leaving your business was R800.

d) What do we call trading stock that is sold?

Cost of sales – this is an expense that will decrease Owners’ equity (debit) by R800.

a) What did you get?

2. Someone who owes you money, called a Debtor – this will increase your debtors (asset; debit)
with R1 200.

b) Why do they owe you more?

You sold something to them – Sales is an income and will increase Owners’ Equity (credit) by
R1 200.

c) What did you sell?

Trading stock – you will now have less trading stock (asset; credit) in the business. The value
of stock leaving your business was R800.

d) What do we call trading stock that is sold?

Cost of sales – this is an expense that will decrease Owners’ equity (debit) by R800.

3. You received money – this will increase Bank (asset; debit).

The debtor paid his account and will now owe you less – Debtors (asset) will decrease (credit)

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Let us look at the layout of a Debtors journal (DJ). Remember, every time a business sells on credit,
an entry must be made in this journal.

Debtors Journal of ABC Stores – January 2024 DJ

DOC DAY DETAILS SALES COST OF
NO SALES
(1) (2) (3) (4) (5)

What do the columns mean?

(1) Abbreviation and number of the Source Document for the transaction (In number order).

(2) Date of transaction

(3) Name of person who you sold to on credit (Debtor).

(4) The selling price of the goods sold to the debtor.

(5) The cost price of the goods sold to the debtor.

ACT 2.1

Record the following transactions in the Debtors Journal of Goldie Stores for February 2024.
Goldie Stores uses a mark-up of 45%.

Their clients have been granted the following credit limits:

P Marais R15 000
M Hlabe R 5 300
B Naidoo R2 800
Credit terms: 30 days

Transactions for February 2024:

2 Issued invoice no 34 for R2 610 to B Naidoo.

16 Sold goods on credit to P Marais, R14 210

21 Sold goods with a cost price of R1 102 to M Hlabe.

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ACT 2.2

a) Record the following transactions in the Cash Receipts Journal and the Debtors Journal of
Goldie Stores for March 2024(see Act 2.1). Goldie Stores uses a mark-up of 45%.

b) Comment on the management of each debtor’s account.

Transactions for March 2024:

1 Sold goods on credit to P Marais, R4 640

Issued receipt no24 for R2 610 to B Naidoo in payment of his account in cash.

12 Sold goods with a cost price of R800 to B Naidoo on credit.

18 M Hlabe paid R550 cash on account; issued receipt.

23 Issued invoices to the following customers:

B Naidoo R 580
M Hlabe R2 900

ACT 2.3

a) Record the following transactions in the Cash Receipts Journal and the Debtors Journal of
Heidi Traders for April 2019. Heidi Traders uses a mark-up of 331/3 %.

b) Calculate how much each customer owes Heidi Traders on 30 April 2019

Balances on 1 April 2019:

M Dlova R 1 200
B Tannah R 800
D Drake R 4 320

Transactions for April 2019:

1 Sold goods on credit to B Tannah, R400. Issued invoice 643.

M Dlova paid half the debt in cash. Issued receipt no 154.

10 Sold goods with a cost price of R1 500 to D Drake on credit.

21 D Drake paid R1 000 on account. Issued receipt.

Sold goods on credit to M Dlova, R900.
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28 Issued invoices to the following customers:
B Tannah, R600
D Drake, R200

29 B Tannah paid R 800 cash on account.

30 D Drake settles the account to date by cash.

DEBTORS ALLOWANCE
Debtors may sometimes be unhappy with their purchases.

Reasons:
• Inferior quality goods
• Wrong colour/size/make, etc.
• Stock damaged in transit
• Over-charge/errors on invoice

The Debtors Allowance Journal (DAJ) is the journal where all returns and/allowances from debtors
are recorded. The debtor will send a debit note to the business in which he will make a claim in
respect of goods returned. Upon investigation the business will issue a CREDIT NOTE (C/N) to the
customer. One copy will be given to the customer and the other is the source document for the entry
in the DAJ.

The business needs to keep a record of how much of their sales are returned. The business can’t
decrease their Sales account as it will then not help track all the returns made by debtors. The
business must therefore create a new account called DEBTORS ALLOWANCE which is an
EXPENSE and must be DEBITED.
When a debtor returns goods or receives an allowance, he/she owes the business less. The
business must decrease the debtors’ debt. The DEBTORS CONTROL (Asset) account must be
CREDITED.

When a debtor returns goods, the business physically receives the trading stock and the business
must then adjust their Trading stock account, as well as the Cost of Sales account as follows:
TRADING STOCK = DEBIT (increase)
COST OF SALES = CREDIT (less of an expense)

If the goods were damaged and not returned, or a debtor was overcharged by accident, NO
adjustment must be made in the Trading Stock or Cost of Sales accounts, as the business did
not receive any stock back.
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 TRANSACTIONS:

1. Debtor S Samuels returned goods to the value of R1 200 (Cost R800) as it was
incorrect; Issued credit note 12.

2. Debtor B Broken complained that half of the original stock ordered (Selling Price
R2 000; Cost R1 500) was broken when it arrived; B Broken will keep the stock; issued
credit note 25.

SOLUTION

Account Debit Account Credit A OE

Effect Effect
1 Debtors allowance Debtors control -1 200 -1 200
Trading stock Cost of sales +800 +800
2 Debtors allowance Debtors control -1 000 -1 000
Explanation:
a) Does the debtor owe you more or less?
1. Less – this will decrease your Debtors’ account (asset; credit) with R1 200.

b) Why does the debtors owe you less?

You gave an allowance – Debtors allowance is an expense and will decrease Owners’ Equity
(debit) by R1 200.

c) What did you receive?

Trading stock – you will now have more trading stock (asset; debit) in the business. The value
of stock coming back to your business was R800.

d) Did we sell the trading stock? No

Cost of sales (expense) must now be canceled and this will increase Owners’ equity (credit)
by R800.

a) Does the debtor owe you more or less?

2. Less – this will decrease your Debtors’ account (asset; credit) with R1 000.

b) Why does the debtors owe you less?

You gave an allowance – Debtors allowance is an expense and will decrease Owners’ Equity
(debit) by R1 000.
NO Trading stock was returned; therefore, NO OTHER entry must be made!

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Let us look at the layout of a Debtors Allowance Journal (DAJ). Remember, every time a debtor
returns goods or is granted an allowance, an entry must be made in this journal.

Debtors Allowance Journal of ABC Stores – January 2024 DAJ

DOC DAY DETAILS DEBTORS COST OF
NO ALLOWANCE SALES
(1) (2) (3) (4) (5)

What do the columns mean?

(1) Abbreviation and number of the Source Document for the transaction (In number order).

(2) Date of transaction

(3) Name of person who you gave an allowance/returned goods (Debtor).

(4) The selling price of the goods returned by the debtor/ Rand value of allowance granted.

(5) The cost price of the goods returned by the debtor.

ACT 2.4
Complete the Debtors Journal and Debtors Allowance Journal of Barney Stores for May 2024

Transactions for May 2024

2 Sold goods on credit to B Jay R800 (Cost R590); issued invoice 123.

4 B Jay complained that half the goods ordered were incorrect and returned the goods; issued
credit note no4.

17 Issued invoice to B Bob, R1 200 (Cost 790).

20 Sold goods on credit to B Bob R1 900 (Cost R1 300) and to B Jay R500 (Cost 330).

21 B Bob complained that we overcharged her. Grant an allowance of R150.

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ACT 2.5

Complete the Debtors Journal and Debtors Allowance Journal of Paw Patrol for June 2024. Paw
Patrol uses a mark-up of 100%.

Transactions for June 2024

3 Sold goods on credit to P Pink R1 000; issued invoice 222.

6 Issued an invoice to R Red R560.

P Pink complained that we overcharged her. Grant an allowance of 2% (see 3 June); issued
credit note 12.

14 Issued invoice to Y Yellow, R3 200.

25 Sold goods on credit to R Red R2 900 and to P Pink R800.

27 R Red complained that some goods purchased on the 25th were shop soiled. R Red agreed
to keep the goods and a R500 allowance was granted to her.
P Pink complained that R100 worth of stock purchased was incorrect and returned the stock;
issued a credit note.

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 a) Record the following transactions in the Cash Receipts Journal, Debtors Journal and Debtors
Allowance Journal of ABC Stores for January 2024. ABC Stores uses a mark-up of 25%.

b) Complete the relevant General Ledger accounts and close off/balance on 31 January 2024

c) Complete the Debtors Ledger and Debtors List of ABC Stores for January 2024

Balances/totals on 1 January 2024:

Debtors General Ledger

A Apple D1 R 2 440 Debtors Control 13 824
B Berry D2 R 6 524 Trading stock 25 340
C Cherry D3 R 4 860 Sales 54 600
Cost of sales 43 680
Debtors Allowance 2 730

Transactions for January 2024:

1 C Cherry settled the account as on 1 January 2024 in cash; issued receipt 45.
Received rent from tenant M Mango, R8 250 in cash.
The owner F Fruitshake, increased his capital contribution by R10 000 via internet transfer.

3 Sold goods on credit to C Cherry, R2 400; issued invoice 124.

B Berry paid R3 524 cash on account.
A Apple settled half the amount owed on 1 August 2024 by cash.

5 C Cherry complained that we overcharged her (see 3rd); Grant an allowance of R250; issued credit
note 12.

11 Sold goods with a cost price of R1 200 to A Apple on credit.

Sold goods for cash to B Berry, R3 750.

20 Issued invoices to the following customers:

B Berry R1 625
C Cherry R 1 375

29 B Berry returned incorrect goods bought on the 20th R500.

30 C Cherry settled the account to date via EFT.

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 CASH PAYMENTS JOURNAL of EL ABS Stores – January 2024 CRJ
DOC DAY DETAILS ANALYSIS BANK SALES COST OF DEBTORS SUNDRY ACCOUNTS
OF SALES CONTROL
NO RECEIPTS AMOUNT DETAILS

R45 1 C Cherry D3 4 860 4 860

R46 M Mango 8 250 13 110 8 250 Rent Income
R47 F Fruitshake 10 000 10 000 capital
BS
R48 3 B Berry D2 3 524 3 524
R49 A Apple D1 1 220 4 762 1 220
CRR 11 Sales 3 750 3 750 3 750 3 000
R50 30 C Cherry D3 3 525 3 525
BS

35 129 3 750 3 000 13 129 18 250

Debtors Journal of ABC Stores – January 2024 DAJ

DOC DAY DETAILS FOL SALES COST OF
NO SALES

I124 3 C Cherry D3 2 400 1 920

I125 11 A Apple D1 1 500 1 200
I126 20 B Berry D2 1 625 1 300
I127 20 C Cherry D3 1 375 1 100

6 900 5 520

Debtors Allowance Journal of ABC Stores – January 2024 DAJ

DOC DAY DETAILS FOL DEBTORS COST OF
NO ALLOWANCE SALES

CN12 5 C Cherry D1 250 0

CN13 29 B Berry D2 500 400

750 400

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 DEBTORS LEDGER OF ABC STORES
A APPLE D1
DATE DOCUMENT FOL DEBIT CREDIT BALANCE
DETAILS
2024 1 Balance b/d 2 440
Jan
3 Receipt 49 CRJ 1 220 1 220
11 Invoice 125 DJ 1 500 2 720

B BERRY D2
DATE DOCUMENT FOL DEBIT CREDIT BALANCE
DETAILS
2024 1 Balance b/d 6 524
Jan

3 Receipt 48 CRJ 3 524 3 000

20 Invoice 126 DJ 1 625 4 625
29 Credit note 13 DAJ 500 4 125

C CHERRY D3
DATE DOCUMENT FOL DEBIT CREDIT BALANCE
DETAILS
2024 1 Balance b/d 4 860
Jan

Receipt 45 CRJ 4 860 0

3 Invoice 124 2 400 2 400
5 Credit note 12 250 2 150
20 Invoice 127 1 375 3 525
30 Receipt 50 3 525 0

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 DEBTORS’ LIST
A Apple D1 2 720
B Berry D2 4 125
C Cherry D3 0
TOTAL 6 845

GENERAL LEDGER OF ABC STORES

BALANCE SHEET SECTION
DEBTORS CONTROL B
Date Details Fol Amount Date Details Fol Amount
2024 1 Balance b/d 13 824 2024 31 Bank CRJ 13 129
Jan Jan

31 Sales DJ 6 900 Debtors DAJ 750

Alloance
Balance c/d 6 845
20 724 20 724
2024 1 Balance b/d 6 845
Feb

TRADING STOCK B
Date Details Fol Amount Date Details Fol Amount
2024 1 Balance b/d 25 340 2024 31 Cost of CRJ 3 000
Jan Jan sales
31 Cost of DAJ 400 Cost of DJ 5 520
sales sales
Balance c/d 17 220
25 740 25 740
2024 1 Balance b/d 17 220
Feb

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 NOMINAL ACCOUNT SECTION
SALES N
Date Details Fol Amount Date Details Fol Amount
2024 1 Total b/f 54 600
Jan

31 Bank CRJ 3 750

Debtors DJ 6 900
control
65 250

COST OF SALES N
Date Details Fol Amount Date Details Fol Amount
2024 1 Total b/f 43 680 2024 31 Trading DAJ 400
Jan Jan stock
31 Trading CRJ 3 000
stock
Trading DJ 5 520
stock
52 200 400

DEBTORS ALLOWANCE N
Date Details Fol Amount Date Details Fol Amount
2024 1 Total b/f 2 730
Jan

31 Debtors DAJ 750

control
3 480

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ACT 2.6

a) Record the following transactions in the Cash Receipts Journal, Debtors Journal and
Debtors Allowance Journal of Dora Store for August 2024. Dora Store uses a mark-up of
25%.

b) Complete the relevant General Ledger accounts and close off/balance on 31 August 2024

c) Complete the Debtors Ledger and Debtors List of Dora Stores for August 2024

Balances/totals on 1 August 2024:

Debtors General Ledger
P Rabi D1 R 1 340 Debtors Control 12 224
D Glasgo D2 R 7 124 Trading stock 15 240
P Mbanga D3 R 3 760 Sales 29 250
Cost of sales 23 400
Debtors Allowance 276

Transactions for August 2024:

1 P Mbanga settled the account as on 1 August 2024; issued receipt 45.

Received rent from tenant P Maritz, R7 500 in cash.
D Dora increased her capital contribution by R5 000 via internet transfer.

3 Sold goods on credit to P Mbanga, R1 875; issued invoice 324.

D Glasgo paid R2 500 on account.
P Rabi settled half the amount owed on 1 August 2024.

5 P Mbanga complained that we overcharged her (see 3 rd); Grant an allowance of R75; issued
credit note 12.

11 Sold goods with a cost price of R500 to P Rabi on credit.

Sold goods for cash to P Rabi, R750.

18 D Glasgo paid R1 000 on account

Sold goods on credit to P Rabi, R1 500.

27 Issued invoices to the following customers:

D Glasgo R1 125
P Mbanga R 325
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29 D Glasgo paid R1 500 on account.

30 P Mbanga settled the account to date.

ACT 2.7

a) Record the following transactions in the Cash Receipts Journal, Debtors Journal and Debtors
Allowance Journal of Busy Bakes for September 2024.
b) Complete the relevant General Ledger accounts and close off/balance on 30 September
2024.

c) Complete the Debtors Ledger and Debtors List of Busy Bees for September 2024.
• Busy Bakes uses a mark-up of 40% on cost.

Balance/totals on 1 September 2024:

Debtors General Ledger

A Alers D1 1 800 Debtors Control ???
B Botha D2 2 500 Trading stock 56 780
C Chako D3 3 450 Sales ???
Cost of sales 89 500
Debtors Allowance 322

Transactions for September 2024:

1 B Botha paid R700 cash on account; issued receipt 112

6 Sold goods on credit to B Botha, R490; issued invoice 775.

C Chako paid half of the amount owed on 1 September 2019 via internet transfer.
A Alers settled the amount owed as at 1 September 2024.
Received rent from tenant Bloem Florist, R9 200 cash.

8 B Botha complained that we overcharged her (see 6th). Grant an allowance of R15; issued
credit note22.

14 Sold goods, with a cost price of R2 450, to A Alers on credit.

16 Issued invoices to B Botha, R2 100 and C Chako R840.

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21 C Chako paid R750 on account.
Sold goods on credit to A Alers, R1 120.
B Botha returned goods (see 16th), R112.

27 Issued invoices to the following customers:

C Chako R1 890
B Botha R9 450

29 C Chako paid R 500 on account.

Sold good for cash to B Botha, R8 400.

30 B Botha settled the account to date.

ACT 2.8

a) Record the following transactions in the Cash Receipts Journal, Cash Payments Journal,
Debtors Journal and Debtors Allowance Journal of Spotlight Stores for January 2024.
b) Complete the relevant General Ledger accounts and close off/balance on 31 January 2024

c) Complete the Debtors Ledger and Debtors List of Spotlight Stores for January 2024.

Balances/totals on 1 January 2024:

Debtors Control R ? Sales R 26 500

Trading stock 8 400 Cost of Sales 18 100

Debtors List: T Cruise R 800

J Lopez 1 200
A Jolie 600

Transactions: January 2024:

1 Sold goods to T Cruise, R400 (Cost R300) and to A Jolie R700 (Cost R550). Issued invoice
90 and 91 respectively.
3 Received cash from T Cruise in settlement of his account to date; Issued receipt 40.
Cash sales of merchandise R 1 200 (331/3% mark-up on cost)
5 Paid Fixer Stores R430 by debit card for minor repairs done to a computer.
Purchased trading stock from Mieka Stores, R5 200 and made an EFT.
9 Issued invoice to J Lopez R480 (Cost R330)
Used the debit card to pay JJ Couriers for transportation of goods bought, R250.

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12 J Lopez returned damaged goods to the value of R150 (cost R90); issued credit note 14
A Jolie bought goods for cash, R1 200 (25% mark-up).
14 Pay wages, R1 800 after drawing cash from the ATM.
17 Credit sales of merchandise to J Lopez R1 000 (Cost R750), and to T Cruise costing R1 200
(mark-up 331/3 %).
Purchased packing material from Greys Suppliers and made an EFT, R780.
19 J Lopez requested that an allowance be given to her because of an overcharge on goods
sold to her on the 17th. On investigation it was discovered that she was overcharged by
R100. Issued a credit note.
22 T Cruise returned goods, R120 as it was not according to sample (see 17 th).
25 Paid the salary of the manager, E Taylor, R8 000 via internet transfer.
27 Paid Fixer Stores for stationery purchased, R95 by debit card.
29 Received cash from T Lopez in settlement of her account to date.
Purchased trading stock from Star Stores. Their cash invoice reflects the following: Goods
R2 560 subject to a 2½% trade discount and transport cost R200. Make an internet transfer.

ACT 2.9

a) Record the following transactions in the Cash Receipts Journal, Cash Payments Journal,
Debtors Journal and Debtors Allowance Journal of SnowStores for July 2024.

b) Complete the relevant General Ledger accounts and close off/balance on 31 July 2024.

c) Complete the Debtors Ledger and Debtors List of Snow Stores for July 2024.

Balnces/totals on 1 July 2024:

Debtors Control R 34 200 Sales R 54 800

Trading stock 25 700 Cost of Sales 41 100

Debtors List: B Beanie 13 100

C Coffee 6 800
S Soup ?

Transactions: July 2024:

1 S Soup deposited money straight into the business bank account to settle his account as at
1 July 2024. Issued receipt no.145.
Sold goods for cash, R 23 780.
4 Sold goods to C Coffee R900. C Coffee paid with a credit card.
Received R8 000 rent from the tenant, Iceberg Stores. Iceburg Stores made a direct deposit.

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7 Purchased trading stock from Mittens Traders, R12 700 and paid via EFT.
Paid Frost Transport R540 by debit card for delivery of the trading stock.
10 Issued invoice no 99 to B Beanie R 1 800 (Cost ?) and to C Coffee (Cost R1 725).
12 B Beanie returned damaged goods to the value of R160 (see 10th); issued credit note no12.
14 Pay wages, R1 100 after drawing cash from the ATM.
C Coffee complained that he was overcharged (see 10th). Grant him a 4% allowance.
17 Credit sales of merchandise to S Soup, R7 600.
Received a cash invoice from Resort Traders: packing material, R1 530, stationery R840
and repairs R 1 200. Paid via EFT.
19 S Soup returned 10% of the goods purchased on the17th. Issued a credit note.
22 Sold goods, costing R4 500 to S Soup cash. S Soup was granted a cash discount of 5%.
Issued a receipt.
25 Paid the salary of the manager, S Rustic, R14 800 via internet transfer.
27 Paid Snowglobe Stores for stationery purchased, R395 by debit card.
29 Received cash from C Coffee in settlement of account to date.
Purchased trading stock from Fire Stores. Their cash invoice reflects the following: Goods
R3 400 subject to a 1½% trade discount, stationery R430 and repairs to the photo copier,
R660. Made an internet transfer.

ACT 2.10

Use the information below to complete the accounting equation:

1. Sold goods on credit R600 (cost R450).

2. Purchased stationery for use in the office and paid R230.
3. Received R5 000 from our tenant.
4. Cash sales of goods R1 200 (Cost R900).
5. A debtor returned goods not according to sample, R220 (cost R145).
6. Purchased trading stock for cash R3 000.
7. A debtor settled his account, R670.
8. A debtor was given an allowance for damage to goods not returned, R800 (cost R670).
9. Paid a supplier for trading stock, R1 000 and advertising flyers, R300.

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 CHAPTER 3
CREDITORS (Credit Purchases)
When we, as a business, purchase anything on credit, we receive the use of the goods straight
away, but will only settle our debt at a later stage. That means we owe someone money. The person
we owe the money to is called a CREDITOR and is classified as a LIABILITY. Credit purchases are
entered in a Creditors Journal (CJ).
When we purchase something on credit, we receive an invoice from our creditor. As each business
uses different invoice numbers, we must renumber the invoice received, to fit in with our numbering
system.

If we are a regular customer, our supplier may grant us a TRADE DISCOUNT (discount given on
trading stock from one supplier to another). This means that our purchase will cost less. A trade
discount is NOT shown in our books – it needs to be subtracted from the original price. (See Term 1)

If we pay the creditor, we owe less. This transaction will take place in the CPJ.

TRANSACTIONS:

1. Purchase stationery on credit from Valpe Stores, R350.

2. Receive invoice from Saffy Traders for goods purchased, R2 000 less 3% trade discount.
3. Paid R500 to Drake Stores to settle our account.

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SOLUTION

Account Debit Account Credit A OE L

Effect Effect Effect
1 Stationery Creditors Control -350 +350
2 Trading stock Creditors Control +1 940 + 1940
3 Creditors Control Bank -500 -500
Explanation:
a) What did you buy?
1. Stationery (expense) – this will decrease Owners’ Equity (debit) by R350.

b) How did you buy this?

On credit – you owe the Creditor more (increase liability; credit) by R350.

a) What did you buy?

2. Trading stock (asset) – this will increase Assets (debit) by R1 940 (R2 000 x 97%).

b) How did you buy this?

On credit – you owe the Creditor more (increase liability; credit) by R1 940.

3. You paid money – this will decrease Bank (asset; credit).

You paid the creditor – you owe less – the Creditor (Liability) will decrease (debit).

Let us look at the layout of a Creditors Journal (CJ). Remember, every time you purchase anything
on credit, an entry must be made in this journal.

Creditors Journal of ABC Stores – January 2024 CJ

DOC DAY DETAILS CREDITORS TRADING SUNDRY ACCOUNTS
CONTROL STOCK
AMOUNT DETAILS
(1) (2) (3) (4) (5) (6) (7)

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What do the columns mean?

(1) Abbreviation and number of the Source Document for the transaction (In number order).

(2) Date of transaction

(3) Name of business you are purchasing on credit (Creditor) from.

(4) Total amount owed to creditor for the transaction.

(5) Value of Trading stock purchased on credit

(6) Sundry Accounts: these columns are used if there is NO specific column allocated for a
transaction. The amount received will be entered in (6) and the correct Accounting name
(Classification) must be entered in (7).

ACT 3.1

Record the following transactions in the Creditors Journal of Goldie Stores for July 2024.

Goldie Stores buy on credit from the following Suppliers:

C1 Big Mac Stores
C2 Spur Motors
C3 Wimpy Traders Credit terms: 30 days

Transactions for July 2024:

2 Received invoice no 34 (renumbered to 112) from Wimpy Traders for stationery purchased,
R2 610.

16 Spur Motors repaired a vehicle of Goldie Stores on credit, R2 430.

21 Purchased trading stock, R12 000 less 3% trade discount and received invoice XY144 from
Big Mac Stores.

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ACT 3.2
Record the following transactions in the Cash Payments Journal and the Creditors Journal of Goldie
Stores for August 2024. (See Act 3.1)

Transactions for August 2024:

1 Purchase trading stock R1 350 and packing material R970 from Big Mac Stores. Receive their
invoice.
Made an EFT for R2 610 to Wimpy Traders in payment of our account to date.

12 Bought trading stock R3 500, less 2% trade discount, on credit from Wimpy Traders.

18 Made an internet transfer of R2 430 to Spur Motors to settle our account.

23 Purchased the following from Wimpy Traders and received their invoice:
Stationery, R670
Packing material, R450
Trading stock, R1 000
Paid Big Mac Stores via EFT to settle our account to date.

ACT 3.3
Record the following transactions in the Cash Payments Journal and the Creditors Journal of Heidi
Traders for September 2024.

Balances on 1 September 2024:

C1 Dull Stores R 1 200
C2 Tabby Stores R 800
C3 Carry Traders R 4 320

Transactions for September 2024:

3 Purchased goods on credit from Tabby Stores, R400; Received invoice ASA643 (renumbered
154)
Paid half the debt owed to Dull Stores by debit card.

10 Purchased equipment, R15 000 from Carry Traders. Paid a deposit of R3 000 by EFT. The
rest of the amount will be paid off over 3 months.
Purchased the following from Dull Stores on credit:
Trading stock, R10 000 less 5% trade discount and stationery R500

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21 Settled the account at Tabby Stores as on 1 September by debit card.
Carry Traders repaired a fax machine. Received their invoice, R400.

28 Drew cash from the ATM to pay wages, R1 200

30 Made an internet transfer to Dull Stores to settle our account to date.

CREDITORS ALLOWANCE
We, as a business, may sometimes be unhappy with our purchases from our creditors.
Reasons:
• Inferior quality goods
• Wrong colour/size/make, etc.
• Stock damaged in transit
• Over-charge/errors on invoice

The Creditors Allowance Journal (CAJ) is the journal where all returns to and allowances from
creditors are recorded. We will send a DEBIT NOTE to the creditor in which we will make the claim
in respect of goods returned. Upon investigation the creditor will issue a credit note to us. One copy
will be given to us, the customer. We will use the DEBIT NOTE as our source document for the entry
in the CAJ.

We need to keep a record of how many (and R value) of our credit purchases are returned. When
we return goods to a creditor, we owe them less. We must decrease the amount owed to the creditor:
CREDITORS CONTROL will be Debited. What we returned/received an allowance for, must also
be decreased in our books (credited).

The Creditors Allowance Journal looks the same as the Creditors Journal –
Only the heading is different!

TRANSACTIONS:

1. Returned faulty goods to a creditor, R500

2. Issued a debit note to a creditor for incorrect stationery supplied, R130

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SOLUTION

Account Debit Account Credit A OE L

Effect Effect Effect
1 Creditors Control Trading stock -500 -500
2 Creditors Control Stationery +130 -130
Explanation:
a) What did you return?
1. Trading stock – you have less trading stock, and this will decrease assets (credit) by R500.

b) Who did you return this to?

Creditor – you owe the Creditor less (decrease liability; debit) by R500.

) What did you receive allowance for?

2. Stationery – you have less stationery. This means you have less expenses and this will\
increase Owners’ Equity (credit) by R130.

b) Who gave the allowance?

Creditor – you owe the Creditor less (decrease liability; debit) by R130.

ACT 3.4

Record the following transactions in the Creditors Journal and Creditors Allowances Journal of
Slick and Shick for September 2024.

Transactions for September 2024:

1 Purchase goods on credit from Boutique Suppliers R8 000; Received invoice ASA643
(renumbered 551).
Bought packing material on credit from Cargo Wholesalers, R450.

7 Purchased stationery, R565 from Cargo Wholesalers and received their invoice.

9 R149 worth of stationery purchased from Cargo Wholesalers (see 7th) was not according to
sample. Issued a debit note no 9 to them with the incorrect stationery.

17 Bought trading stock from Boutique Suppliers for R9 768 on credit.

18 Trading stock bought from Boutique Suppliers on the 17th arrived damaged. Returned stock,
R1 257 to them.

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 d) Record the following transactions in the Cash Payments Journal, Creditors Journal and Creditors
Allowance Journal of ABC Stores for January 2024. ABC Stores uses a mark-up of 25%.

e) Complete the relevant General Ledger accounts and close off/balance on 31 January 2024

f) Complete the Creditors Ledger and Creditors List of ABC Stores for January 2024

Balances/totals on 1 January 2024:

Creditors General Ledger

DD Stores C1 R5 800 Creditors Control R8 700
EA Traders C2 2 900 Trading stock 21 300
Stationery 2 450

Transactions for January 2024:

2 Settle our debt at DD Stores via EFT.

5 Received invoice XYZ123 (renumbered 71) from EA Traders for trading stock, R5 400.
Bought stationery from DD Stores, R420 and pay by debit card.

8 Paid EC Municipality via EFT for the following:

Rates and taxes of the owner’s house R5 300
Water account of the business, R840.

14 Drew cash from the ATM to pay wages, R1 200.

Returned R540 worth of trading stock purchased from EA Traders as it was not according to
sample (see 5th); debit note 9.

18 Purchase trading stock from DD Stores, R2 000 and stationery R280; received their invoice. Paid
Fast Transport R150 for transporting the goods to my premises; paid via EFT.

23 EA Traders repaired a computer and printer of the business. Receive their invoice for R550.
Send a debit note to DD Stores for incorrect stationery received, R60.

28 Settle our debt at EA Traders; made an EFT.

Paid R1 000 to DD Stores on account via EFT.

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 Cash Payments Journal of ABC Stores – January 2024 CPJ
DOC DAY DETAILS BANK TRADING CREDITORS SUNDRY ACCOUNTS
STOCK CONTROL

AMOUNT DETAILS

EFT 2 DD 5 800 5 800

Stores C1
TS 5 DD Stores 420 420 Stationery

EFT 8 EC 6 140 5 300 Drawings

Municipality
840 Water

TS 14 Cash 1 200 1 200 Wages

EFT 18 Fats 150 150

Transport
EFT 28 EA 8 310 8 310
Traders C2
EFT 28 DD 1 000 1 000
Stores C1

23 020 150 15 110 7 760

Creditors Journal of ABC Stores – January 2024 CJ

DOC DAY DETAILS CREDITORS TRADING SUNDRY ACCOUNTS
CONTROL STOCK
AMOUNT DETAILS

I71 5 EA Traders C2 5 400 5 400

I72 18 DD Stores C1 2 280 2 000 280 Stationery

I73 23 EA Traders C2 550 550 Repairs

8 230 7 400 830

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 Creditors Allowance Journal of ABC Stores – January 2024 CAJ
DOC DAY DETAILS CREDITORS TRADING SUNDRY ACCOUNTS
CONTROL STOCK
AMOUNT DETAILS
DN9 14 EA Traders C2 540 540

DN10 23 DD Stores C1 60 60 Stationery

600 540 60

CREDITORS LEDGER OF ABC STORES

DD STORES C1
DATE DOCUMENT FOL DEBIT CREDIT BALANCE
DETAILS
2024 1 Balance b/d 5 800
Jan
2 EFT CRJ 5 800 0
18 Invoice 72 CJ 2 280 2 280
23 Debit note 10 CAJ 60 2 220
28 EFT CPJ 1 000 1 220

EA TRADERS C2
DATE DOCUMENT FOL DEBIT CREDIT BALANCE
DETAILS
2024 1 Balance b/d 2 900
Jan

5 Invoice 71 CJ 5 400 8 300

14 Debit note 9 CAJ 540 7 760
23 Invoice 73 CJ 550 8 310
28 EFT CPJ 8 310 0

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 CREDITORS’ LIST
DD Stores C1 1 220
EA Traders C2 0
TOTAL 1 220

GENERAL LEDGER OF ABC STORES

BALANCE SHEET SECTION
CREDITORS CONTROL B
Date Details Fol Amount Date Details Fol Amount
2024 31 Bank CPJ 15 110 2024 1 Balance b/d 8 700
Jan Jan

Total CAJ 600 31 Total CJ 8 230

Returns Purchases
Balance c/d 1 220
16 930 16 930
2024 1 Balance b/d 1 220
Feb

TRADING STOCK B
Date Details Fol Amount Date Details Fol Amount
2024 1 Balance b/d 21 300 2024 31 Creditors CAJ 540
Jan Jan control
31 Bank CPJ 150 Balance c/d 28 310
Creditors CJ 7 400
control
28 850 28 850
2024 1 Balance b/d 28 310
Feb

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 NOMINAL ACCOUNT SECTION
STATIONERY N
Date Details Fol Amount Date Details Fol Amount
2024 1 Total b/f 2 450 2024 23 Creditors CJ 60
Jan Jan control
5 Bank CPJ 420
18 Creditors CJ 280
control
3 150 60

ACT 3.5
Record the following transactions in the books of Jojo Traders for October 2024 and complete the
following:

a) Journals (CJ CAJ CPJ)

b) General and Creditors Ledger closed off/balanced at the end of October 2024.

Balances/Totals on 1 October 2024

Creditors control R4 500 Creditors Ledger:
Trading stock 6 700 Aussie Stores R ?
Stationery 430 Wallaby Traders 1 900

Transactions: October 2024

1 Settle our debt at Aussie Stores via EFT.

5 Bought trading stock from Wallaby Traders, R700 and receive 5% trade discount; received
invoice 876, renumbered to 456.
Bought stationery from Aussie Stores, R250 and pay by debit card.

7 Made an internet transfer for R890 to the municipality. R450 for rates and taxes of the
business and the rest was for the owner’s water and electricity account from home.

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12 Drew cash from the ATM to pay wages, R720.
Returned R67 worth of trading stock purchased from Wallaby Traders as it was not
according to sample. Trade discount has already been calculated. (see 5th); debit note 11.

18 Purchase trading stock from Aussie Stores, R8 000 and stationery R680 received their
invoice. Paid ITT Transport R230 for transporting the goods to my premises; paid via EFT.

23 Wallaby Traders repaired a photocopier of the business. Receive their invoice for R250.
Send a debit note to Aussie Stores for incorrect stationery received, R130.

28 Settle our debt to Wallaby Traders; made an EFT.

Settle half the amount owed to Aussie Stores via EFT.

ACT 3.6

Record the following transactions in the books of Spring Traders for November 2024
a) Journals (CJ CAJ CPJ)
b) General and Creditors Ledger

Balances/Totals on 1 November 2024

Creditors control R ? Creditors Ledger:
Trading stock 23 400 Flower Stores R4 500
Packing material 1 430 Bee Traders 1 900

Transactions: November 2024

1 Settle our debt at Flower Stores via EFT.

5 Bought trading stock from Bee Traders, R2 400 and receive 3% trade discount; received
invoice CX76, renumbered to 126.
Bought packing material from Flower Stores, R750 and paid by debit card.

7 Made an internet transfer for R1 890 to BCM. R1 050 was for the rates and taxes of the
business and the rest was for the owner’s water and electricity account from home.

12 Drew cash at the ATM to pay wages, R2 200.

Returned R128 of the trading stock purchased from Bee Traders as it was not according to
sample. (see 5th); debit note 11.

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18 Purchase trading stock, R11 000 and packing material, R1 000 from Flower Stores; received
their invoice.
Paid Express Transport R780 for transporting the goods to our premises; paid via EFT.

23 Bee Traders repaired a fax machine of the business. Receive their invoice for R345.
Returned all of the packing material purchased from Flower Stores on the 18th as it was
incorrect.

Settle our debt to Bee Traders and made an internet transfer.

Settle half the amount owed to Flower Stores via EFT.

ACT 3.7

Record the following transactions in the books of Music Traders for December 2024.
Round off to the nearest Rand where necessary!!
a) Journals (CJ CAJ CPJ)
b) General and Creditors Ledger

Balances/Totals on 1 December 2024

Creditors control R13 500 Creditors Ledger:
Trading stock 89 750 Sharp Stores R8 200
Packing material 6 430 Flat Traders ?

Transactions: December 2024

1 Settle our debt at Flat Traders by making an EFT.

5 Bought the following from Flat Traders and received their invoice DH543, renumbered to
826:
Trading stock R2 400 and receive 3% trade discount,
Packing material, R980
Bought stationery from Sharp Stores, R750 on credit.

7 Made an EFT for R3 200 to Telkom. This was for the telephone account of the business,
R2 170 and the rest for the owner’s telephone account from home.

12 Drew cash at the ATM to pay wages, R1 900

Returned 10% of the trading stock purchased from Flat Traders as it was not according to
sample as well as packing material worth R50 that was damaged. (see 5th); debit note 23.
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 18 Purchase trading stock from Sharp Stores, R8 700 and received their invoice.

19 Paid Fast Del R430 for transporting the goods bought on the 18th to our premises by debit
card.

23 Received an invoice from Flat Traders for repairs to equipment done, R645.

28 Settled our debt to Flat Traders via EFT.

Settled half the amount owed to Sharp Stores via EFT.

ACT 3.8

Complete the accounting equation for the following transactions:

1. Bought trading stock on credit, R2 000 less 5% trade discount.

2. Bought stationery and paid by debit card, R400.
3. Settled our account at Glen Stores and made an EFT, R3 500.
4. Paid for the transport costs of trading stock to our premises, R300.
5. The owner increased the capital by R10 000.
6. The owner made an EFT to BCM for the following: Water and electricity of business, R600, Water
and electricity at home, R300.
7. Bought trading stock for cash, R600.

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 CHAPTER 4
COMBINED CASH AND CREDIT ACTIVITIES
Let’s recap what you have learned this year and work through the below activity in your answer
book.
Act 4.1
No Transaction Journal Account debit Account credit
1 Drew cash for wages CPJ Wages Bank
2 Paid rent
3 Purchase goods on credit
4 Cash received for services rendered
5 Paid an outstanding amount owed
6 Repairs paid cash
7 Owner took cash for own use
8 Purchase vehicle and paid for it
9 Consumable goods bought on credit
10 Paid for stationery bought
11 Purchase goods and paid by EFT
12 Purchase building and paid by EFT
13 Received cash for rent of building
14 Packing material purchased on credit
15 Cash sales of goods

16 Return stationery to supplier

17 Drew cash for the cash register
18 Received invoice for repairs
19 Paid water and electricity
20 Owner increased capital contribution
21 Paid trading licence
22 Purchase equipment on credit
23 Paid for packing material bought
24 Issue invoice for goods sold

25 Receive goods back from customer

26 Purchase stationery on credit

27 Received an allowance for goods bought on
credit last week.

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ACT 4.2
Springbok Traders was established in 2016. They sell their stock, using the following mark-up
percentages:
Cash sales 30% and credit sales 40%

Required:
1. Complete the following journals in the books of Springbok Traders for March 2024:
CRJ, CPJ, DJ, DAJ, CJ, CAJ
2. Complete the General Ledger accounts provided.
3. Complete the relevant Debtors Ledger and Creditors Ledger provided.

Balances/Totals on 1 March 2024

DEBTORS LEDGER CREDITORS LEDGER
P Jones 300 LK Traders 10 500
M Prins 720 King Stationers 1 250
B Smith 1 200 MB Motors 850

Transactions: March 2024

3 P Jones settled the amount owed to Springbok Traders on 1 March 2018; Issued Receipt 419
Cash sales of merchandise, R2 730.

5 Bought trading stock from LK Traders, R5 000 less 3% trade discount and receive an invoice,
renumbered, 971.
Paid Fast Del for the delivery of the above stock, R200 by debit card.
Settled amount owed to King Stationers on 1 March 2018 by EFT.

7 Credit sales to M Prins R1 680 (invoice 423) and B Smith R1 260

Drew cash at the ATM to pay wages, R2 100

11 Purchased trading stock from XO Bazaar R9 000 less 2% trade discount; paid via EFT.
Paid Fast Cars for the transportation of this trading stock to our premises, R250 by debit card.
M Prins was not happy with some of his purchases (see 7 th) and returned stock with a cost
price of R200; issued credit note 16.

12 B Smith complained that we did not allow him the discount on his purchase as quoted. (see
7th). Allow a R25 discount.
Purchase the following and receive an invoice from LK Traders:
Trading stock R12 540
Packing material R1 760
Stationery R290
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15 Paid BCM R4 567 via EFT. R2 850 was for rates and taxes of the business and the rest for
electricity.
The owner, D Miles increased his capital by depositing R10 000 directly into the business’
bank account.
Received the rent from the tenant, V Solly. He apologised for being late and paid one and a
half months’ rent in cash. Rent is R5 500 per month.
Returned the following to LK Traders as it was not according to sample; issued debit note 26:
Trading stock R320
Stationery R110

22 Purchased a new photo copier machine from King Stationers for R10 000. Paid a 10% deposit
by internet transfer. The rest will be paid off in equal instalments over 3 months.

25 Sold goods and issued an invoice to P Jones, R1 120

31 B Smith settled his account to date

Paid LK Traders via EFT to settle half the amount owed to date.

ACT 4.3
Sinazo Mbekwa owns a business selling party favors, called Party Planet. She uses a profit mark-
up of 40% on cost price.
.

Required:
1. Complete the following journals in the books of Party Planet for March 2024:
CRJ, CPJ, DJ, DAJ, CJ, CAJ
2. Complete the General Ledger accounts provided.
3. Complete the relevant Debtors Ledger and Creditors Ledger provided.

The following balances/totals appeared in the books of Party Planet on 1 March 2024:
GENERAL LEDGER:
Debtors control ? Sales 140 000
Creditors control 5 840 Cost of Sales ?
Trading stock 2 134

DEBTORS LEDGER: CREDITORS LEDGER:

C Burger 1 640 August Wholesalers ?
K Kotze 960 Marais Ltd 2 390
J Ranjit 1 860 EJ Motors 2 170
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Transactions: March 2024:

2 Cash sales R3 276.

Issued receipt no 57 to K Kotze for R960 as she settled her account.

4 Made an EFT to EJ Motors for the purchase of a delivery vehicle, R68 000.

5 Bought cups, plates, and other stock from Marais Ltd for R7 400. Received 20% trade
discount. The invoice was renumbered to no 92.

6 C Burger settled her account as on 1 March 2024.

Cash sales of goods, R9 072.

7 Sent paper cups, marked R230 (after trade discount was deducted), back to Marais Ltd, as it
was of inferior quality; Debit note 20 issued.

9 Drew cash at the ATM to pay wages, R4 500.

10 Made an internet transfer to August Wholesalers to settle the account to date.

13 Received an invoice from EJ Motors for repairs done to one of the delivery vehicles, R680, as
well as fuel bought on account for R1 020.

14 Received a document no 21 from EJ Motors. There was an overcharge on the invoice on 13

March and they are now giving a R70 allowance for repairs done.

16 Issued the following invoice:

Party Planet No 112

To: Pearl Girls High
Quantity Description Price Amount
80 Boxes paper cups R35 ?

17 Made an EFT to EJ Motors in settlement of our account to date.

18 Sold goods on credit to J Ranjit for R882.

20 Made an internet transfer to August Wholesalers for trading stock purchased, R7 200 less
20% trade discount.

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21 J Ranjit returned goods with a selling price of R112 as it was the wrong colour; issued
document no 55.

26 Drew R5 000 cash from the ATM. Wages was R4 500 and the rest the owner used to pay his
daughter’s music fees at school.

28 Pearl Girls High informed the business that two boxes of paper cups got wet when delivered
and were damaged. Give an allowance.
J Ranjit settles her account; issue a receipt.

29 Bought stationery from August Wholesalers on credit, R1 900.

31 Returned faulty stationery to August Wholesalers, R90.

Act 4.4

The following information was taken from the books of Sunshine Traders on 30 June 2024.

Required:
Complete the General Ledgers accounts and balance/total where necessary on 30 June 2024

The following balances appeared in the books of Sunshine Traders on 1 June 2024:

Trading stock R33 540 Sales R24 000

Debtors control 14 221 Cost of sales 16 000
Creditors control 22 447 Debtors allowance 897

The following column totals for the journals appeared in the books on 30 June 2024:

CRJ
Bank Sales Cost of sales Debtors control
30 287 18 960 12 640 ?

CPJ
Bank Trading stock Creditors control Sundry accounts
46 604 ? 21 447 2 564

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CJ
Creditors control Trading stock Stationery Sundry accounts
22 774 19 874 211 2 689

CAJ
Creditors control Trading stock Stationery Sundry accounts
2 182 1 630 89 463

DJ DAJ
Sales Cost of sales Debtors allowance Cost of sales
? 8 960 2 040 1 360

Act 4.5

Complete the account of P Pienaar in the Debtors ledger of Van Staden Traders.
On 1 February 2024, P Pienaar owed Van Staden Traders R1 240.

Transactions for February 2024:

04 P Pienaar bought goods on credit for R1 670.

06 Pienaar returned goods with a selling price of R330 as it was damaged.
16 Pienaar settled her account as on 1 February 2024.
19 Pienaar bought goods for cash, R1 300.
22 Pienaar paid another R350 on her account.

Act 4.6

Complete the account of Smily Supplies in the Creditors ledger of Brake Traders.
On 1 March 2024, Brake Traders owed Smily Supplies R3 870.

Transactions for March 2024:

03 Bought goods from Smily Supplies and receive their invoice, R2 700;
Received 10% trade discount.
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07 Bought goods from Smily Supplies and paid by EFT R400.
12 Settle the account of Smily Supplies to date via EFT.
19 Bought goods on credit from Smily Supplies, R750.
22 Returned damaged goods to Smily Supplies, R35.

Act 4.7

Draw up the Trial Balance of Mickey Stores on the 28 February 2024 using the following information:

Trading stock 57 000 Drawings 24 000

Equipment 40 000 Stationery 1 300
Capital ? Land and Buildings 300 000
Repairs 1 500 Creditors Control 5 470
Vehicles 75 000 Cost of sales 120 000
Rent income 24 000 Debtors control 14 730
Sales 240 000 Packing material 3 450
Bank (Cr) 1 500

Act 4.8

Draw up the Trial Balance of Minnie Stores on the 31 March 2024 using the following information:

Trading stock 29 800 Drawings 36 000

Equipment 80 000 Stationery 4 800
Capital 1 850 000 Land and Buildings 1 650 000
Repairs 3 700 Creditors Control 12 560
Vehicles 275 000 Cost of sales 738 000
Rent income 60 000 Debtors control 18 630
Sales 960 000 Packing material 5 600
Bank (Dr) ?

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Act 4.9
Complete the accounting equation for the following transactions:

1. A debtor returned goods R600 (cost R400) to the business as it was faulty. Returned the
goods to our supplier.
2. Bought the following on credit: trading stock R1 200 less 5% trade discount and stationery
R150.
3. Settled our account at BB Stores of R540 by EFT.
4. Received R200 on account from a debtor.
5. Bought equipment for R5 000 and paid by EFT.
6. Credit sales, R750 (cost R570).
7. The owner increased her capital by R5 000.
8. The owner paid R300 for her son’s birthday cake, using a business debit card.
9. Cash sales of merchandise, R900 (cost R710).
10 Returned defective stationery to the supplier, R320.

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 ANSWER BOOK
CHAPTER 1
ACT 1.1

No Cost price Mark-up % Selling price ( R )

1 650 40
2 1 200 331/3
3 330 10
4 14 800 25
5 960 60
6 220 50

ACT 1.2

No Selling Mark-up % Cost price ( R )

price
1 280 40
2 1 000 331/3
3 946 10
4 518,75 25
5 20 000 60
6 480 50

67

© COPYRIGHT RESERVED
 ACT 1.3

No Selling price Cost Mark-up %

price
1 2 125,20 1 265
2 300 200
3 645 455
4 12 000 9 000
5 996 796,80

ACT 1.4

No Cost price Selling price Mark-up % Profit (R) Calculation

1 12 500 3 800
2 2 560 125
3 86 933 130 400
4 254 15
5 4 500 1 200
6 667 662/3
7 12,50 10

68

© COPYRIGHT RESERVED
 Act 1.5

Account Account Assets Owners’ Equity

No debit credit
Effect Reason Effect Reason
1.

2.

3.

Act 1.6

Account Account Assets Owners’ Equity

No debit credit
Effect Reason Effect Reason
1.

2.

3.

4.

5.

6.

7.

8.

69

© COPYRIGHT RESERVED
Act 1.7

Account Account Assets Owners’ Equity

No debit credit
Effect Reason Effect Reason
1.

2.

3.

4.

5.

6.

7.

8.

70

© COPYRIGHT RESERVED
 Act 1.8

Account Account Assets Owners’ Equity

No debit credit
Effect Reason Effect Reason
1.

2.

3.

4.

5.

6.

7.

8.

71

© COPYRIGHT RESERVED
 Act 1.9
CASH RECEIPTS JOURNAL OF Tiny Bubbles – January 2024 CRJ
Doc Day Details Analysis of Bank Sales Cost of Sundry accounts
receipts sales
Amount Details

72

© COPYRIGHT RESERVED
CASH PAYMENTS JOURNAL OF Tiny Bubbles – January 2024 CPJ
Doc Day Details Bank Trading Wages Stationery Sundry accounts
stock
Amount Details

73

© COPYRIGHT RESERVED
 GENERAL LEDGER OF Tiny Bubbles
Balance Sheet Section
Capital B
Date Details Fol Amount Date Details Fol Amount

Drawings B
Date Details Fol Amount Date Details Fol Amount

Equipment B
Date Details Fol Amount Date Details Fol Amount

Trading Stock B
Date Details Fol Amount Date Details Fol Amount

74

© COPYRIGHT RESERVED
 Bank B
Date Details Fol Amount Date Details Fol Amount

Nominal Account Section

Sales N
Date Details Fol Amount Date Details Fol Amount

Cost of Sales N
Date Details Fol Amount Date Details Fol Amount

Rent Income N
Date Details Fol Amount Date Details Fol Amount

Stationery N
Date Details Fol Amount Date Details Fol Amount

75

© COPYRIGHT RESERVED
 Wages N
Date Details Fol Amount Date Details Fol Amount

76

© COPYRIGHT RESERVED
 Act 1.10
CASH RECEIPTS JOURNAL OF Hopewell Style – February 2024 CRJ
Doc Day Details Analysis of Bank Sales Cost of Current Sundry accounts
receipts sales Income
Amount Details

77

© COPYRIGHT RESERVED
CASH PAYMENTS JOURNAL OF Hopewell Styles – February 2024 CPJ
Doc Day Details Bank Trading Wages Stationery Sundry accounts
stock
Amount Details

78

© COPYRIGHT RESERVED
 GENERAL LEDGER OF Hopewell Style
Balance Sheet Section
Capital B
Date Details Fol Amount Date Details Fol Amount

Drawings B
Date Details Fol Amount Date Details Fol Amount

Equipment B
Date Details Fol Amount Date Details Fol Amount

Trading Stock B
Date Details Fol Amount Date Details Fol Amount

79

© COPYRIGHT RESERVED
 Bank B
Date Details Fol Amount Date Details Fol Amount

Nominal Accounts Section

Sales N
Date Details Fol Amount Date Details Fol Amount

Cost of Sales N
Date Details Fol Amount Date Details Fol Amount

Current Income N
Date Details Fol Amount Date Details Fol Amount

80

© COPYRIGHT RESERVED
 Stationery N
Date Details Fol Amount Date Details Fol Amount

Rent Expense N
Date Details Fol Amount Date Details Fol Amount

81

© COPYRIGHT RESERVED
 Act 1.11
CASH RECEIPTS JOURNAL OF LHP Music – March 2024 CRJ
Doc Day Details Analysis of Bank Sales Cost of Sundry accounts
receipts sales
Amount Details

82

© COPYRIGHT RESERVED
CASH PAYMENTS JOURNAL OF LHP Music – March 2024 CPJ
Doc Day Details Bank Trading Wages Packing Sundry accounts
stock material
Amount Details

83

© COPYRIGHT RESERVED
 GENERAL LEDGER OF LHP Music
Balance Sheet Section
Capital B
Date Details Fol Amount Date Details Fol Amount

Drawings B
Date Details Fol Amount Date Details Fol Amount

Equipment B
Date Details Fol Amount Date Details Fol Amount

Trading Stock B
Date Details Fol Amount Date Details Fol Amount

84

© COPYRIGHT RESERVED
 Bank B
Date Details Fol Amount Date Details Fol Amount

Nominal Accounts Section

Sales N
Date Details Fol Amount Date Details Fol Amount

Cost of Sales N
Date Details Fol Amount Date Details Fol Amount

Telephone N
Date Details Fol Amount Date Details Fol Amount

85

© COPYRIGHT RESERVED
 Packing material N
Date Details Fol Amount Date Details Fol Amount

Insurance N
Date Details Fol Amount Date Details Fol Amount

86

© COPYRIGHT RESERVED
 Act 1.12
CASH RECEIPTS JOURNAL OF Techno World – April 2024 CRJ
Doc Day Details Analysis of Bank Sales Cost of Current Sundry accounts
receipts sales Income
Amount Details

87

© COPYRIGHT RESERVED
CASH PAYMENTS JOURNAL OF Techno World – April 2024 CPJ
Doc Day Details Bank Trading Wages Consumable Sundry accounts
stock goods
Amount Details

88

© COPYRIGHT RESERVED
 GENERAL LEDGER OF Techno World
Balance Sheet Section
Capital B
Date Details Fol Amount Date Details Fol Amount

Drawings B
Date Details Fol Amount Date Details Fol Amount

Equipment B
Date Details Fol Amount Date Details Fol Amount

Trading Stock B
Date Details Fol Amount Date Details Fol Amount

89

© COPYRIGHT RESERVED
 Bank B
Date Details Fol Amount Date Details Fol Amount

Nominal Accounts Section

Sales N
Date Details Fol Amount Date Details Fol Amount

Cost of Sales N
Date Details Fol Amount Date Details Fol Amount

Current Income N
Date Details Fol Amount Date Details Fol Amount

90

© COPYRIGHT RESERVED
 Stationery N
Date Details Fol Amount Date Details Fol Amount

Consumable goods N
Date Details Fol Amount Date Details Fol Amount

Act 1.13
Trials Balance of Blanko Stores on 31 May 2024
Balance Sheet Section Fol Debit Credit

Nominal Account Section

91

© COPYRIGHT RESERVED
 Act 1.14
Trials Balance of Cabby Schick on 30 June 2024
Balance Sheet Section Fol Debit Credit

Nominal Account Section

92

© COPYRIGHT RESERVED
 Act 1.15
Trials Balance of Daisy Stores on 31 July 2019
Balance Sheet Section Fol Debit Credit

Nominal Account Section

93

© COPYRIGHT RESERVED
 CHAPTER 2
ACT 2.1
DEBTORS JOURNAL OF Goldie Stores – February 2024 DJ
Doc Day Debtor Fol Sales Cost of Sales

ACT 2.2
DEBTORS JOURNAL OF Goldie Stores – March 2024 DJ
Doc Day Debtor Fol Sales Cost of Sales

CASH RECEIPTS JOURNAL OF Goldie Stores – March 2024 CRJ

Doc Day Details Fol Analysis of Bank Debtors
Receipts Control

94

© COPYRIGHT RESERVED
 Management of accounts:
P Marais

B Naidoo

M Hlabe

ACT 2.3
DEBTORS JOURNAL OF Heidi Traders – April 2024 DJ
Doc Day Debtor Fol Sales Cost of Sales

CASH RECEIPTS JOURNAL OF Heidi traders – April 2024 CRJ

Doc Day Details Fol Analysis of Bank Debtors
Receipts Control

95

© COPYRIGHT RESERVED
 How much does each customer owe?
M Dlova

B Tannah

D Drake

ACT 2.4
DEBTORS JOURNAL OF Barney Stores – May 2024 DJ
Doc Day Debtor Fol Sales Cost of Sales

DEBTORS ALLOWANCE JOURNAL OF Barney Stores – May 2024 DAJ

Doc Day Debtor Fol Debtors Cost of Sales
allowance

96

© COPYRIGHT RESERVED
 ACT 2.5
DEBTORS JOURNAL OF Paw Patrol – June 2024 DJ
Doc Day Debtor Fol Sales Cost of Sales

DEBTORS ALLOWANCE JOURNAL OF Paw Patrol – June 2024 DAJ

Doc Day Debtor Fol Debtors Cost of Sales
allowance

97

© COPYRIGHT RESERVED
 ACT 2.6
CASH RECEIPTS JOURNAL OF Dora Store – August 2024 CRJ
Doc Day Details Fol Analysis Bank Sales Cost of Debtors Sundry accounts
of sales Control
Amount Details
receipts

98

© COPYRIGHT RESERVED
DEBTORS JOURNAL OF Dora Store – August 2024 DJ
Doc Day Debtor Fol Sales Cost of Sales

DEBTORS ALLOWANCE JOURNAL OF Dora Store – August 2024DAJ

Doc Day Debtor Fol Debtors Cost of Sales
allowance

DEBTORS LEDGER OF Dora Store

P RABI D1
DATE DOCUMENT DETAILS FOL DEBIT CREDIT BALANCE

D GLASGO D2
DATE DOCUMENT DETAILS FOL DEBIT CREDIT BALANCE

99

© COPYRIGHT RESERVED
 P MBANGA D3
DATE DOCUMENT DETAILS FOL DEBIT CREDIT BALANCE

DEBTORS’ LIST

GENERAL LEDGER OF Dora Stores

Balance Sheet Section
Trading stock B
Date Details Fol Amount Date Details Fol Amount

100

© COPYRIGHT RESERVED
 Debtors Control B
Date Details Fol Amount Date Details Fol Amount

Nominal Account Section

Sales N
Date Details Fol Amount Date Details Fol Amount

Cost of Sales N
Date Details Fol Amount Date Details Fol Amount

Debtors Allowance N
Date Details Fol Amount Date Details Fol Amount

101

© COPYRIGHT RESERVED
 ACT 2.7
CASH RECEIPTS JOURNAL OF Busy Bakes – September 2024 CRJ
Doc Day Details Fol Analysis Bank Sales Cost of Debtors Sundry accounts
of sales Control
Amount Details
receipts

102

© COPYRIGHT RESERVED
DEBTORS JOURNAL OF Busy Bakes – September 2024 DJ
Doc Day Debtor Fol Sales Cost of Sales

DEBTORS ALLOWANCE JOURNAL OF Busy Bakes – September 2024 DAJ

Doc Day Debtor Fol Debtors Cost of Sales
allowance

DEBTORS LEDGER OF Busy Bakes

A ALERS D1
DATE DOCUMENT DETAILS FOL DEBIT CREDIT BALANCE

103

© COPYRIGHT RESERVED
 B BOTHA D2
DATE DOCUMENT DETAILS FOL DEBIT CREDIT BALANCE

C CHAKO D3
DATE DOCUMENT DETAILS FOL DEBIT CREDIT BALANCE

DEBTORS’ LIST

104

© COPYRIGHT RESERVED
 GENERAL LEDGER OF Busy Bakes
Balance Sheet Section
Trading stock B
Date Details Fol Amount Date Details Fol Amount

Debtors Control B
Date Details Fol Amount Date Details Fol Amount

Nominal Account Section

Sales N
Date Details Fol Amount Date Details Fol Amount

105

© COPYRIGHT RESERVED
 Cost of Sales N
Date Details Fol Amount Date Details Fol Amount

Debtors Allowance N
Date Details Fol Amount Date Details Fol Amount

106

© COPYRIGHT RESERVED
 ACT 2.8
CASH RECEIPTS JOURNAL OF Spotlight Stores – January 2024 CRJ
Doc Day Details Analysis Bank Sales Cost of Debtors Sundry accounts
of receipts sales Control
Amount Details

107

© COPYRIGHT RESERVED
CASH PAYMENTS JOURNAL OF Spotlight Stores – January 2024 CPJ
Doc Day Details Bank Trading Wages Sundry accounts
stock
Amount Details

108

© COPYRIGHT RESERVED
DEBTORS JOURNAL OF Spotlight Stores – January 2024 DJ
Doc Day Debtor Fol Sales Cost of Sales

DEBTORS ALLOWANCE JOURNAL OF Spotlight Stores – January 2024 DAJ

Doc Day Debtor Fol Debtors Cost of Sales
allowance

DEBTORS LEDGER OF Spotlight Stores

T CRUISE D1
DATE DOCUMENT DETAILS FOL DEBIT CREDIT BALANCE

109

© COPYRIGHT RESERVED
 J LOPEZ D2
DATE DOCUMENT DETAILS FOL DEBIT CREDIT BALANCE

A JOLIE D3
DATE DOCUMENT DETAILS FOL DEBIT CREDIT BALANCE

DEBTORS’ LIST

GENERAL LEDGER OF Spotlight Stores

Balance Sheet Section
Trading stock B
Date Details Fol Amount Date Details Fol Amount

110

© COPYRIGHT RESERVED
 Debtors Control B
Date Details Fol Amount Date Details Fol Amount

Nominal Account Section

Sales N
Date Details Fol Amount Date Details Fol Amount

Cost of Sales N
Date Details Fol Amount Date Details Fol Amount

Debtors Allowance N
Date Details Fol Amount Date Details Fol Amount

111

© COPYRIGHT RESERVED
 ACT 2.9
CASH RECEIPTS JOURNAL OF Snow Stores – July 2024 CRJ
Doc Day Details Analysis Bank Sales Cost of Debtors Sundry accounts
of sales Control
receipts Amount Details

112

© COPYRIGHT RESERVED
CASH PAYMENTS JOURNAL OF Snow Stores – July 2024 CPJ
Doc Day Details Bank Trading Wages Sundry accounts
stock
Amount Details

113

© COPYRIGHT RESERVED
DEBTORS JOURNAL OF Snow Stores – July 2024 DJ
Doc Day Debtor Fol Sales Cost of Sales

DEBTORS ALLOWANCE JOURNAL OF Snow Stores – July 2024 DAJ

Doc Day Debtor Fol Debtors Cost of Sales
allowance

DEBTORS LEDGER OF Snow Stores

B BEANIE D1
DATE DOCUMENT DETAILS FOL DEBIT CREDIT BALANCE

C COFFEE D2
DATE DOCUMENT DETAILS FOL DEBIT CREDIT BALANCE

114

© COPYRIGHT RESERVED
 S SOUP D3
DATE DOCUMENT DETAILS FOL DEBIT CREDIT BALANCE

DEBTORS’ LIST

GENERAL LEDGER OF Snow Stores

Balance Sheet Section
Trading stock B
Date Details Fol Amount Date Details Fol Amount

Debtors Control B
Date Details Fol Amount Date Details Fol Amount

115

© COPYRIGHT RESERVED
Nominal Account Section
Sales N
Date Details Fol Amount Date Details Fol Amount

Cost of Sales N
Date Details Fol Amount Date Details Fol Amount

116

© COPYRIGHT RESERVED
 ACT 2.10

ACCOUNT DEBIT ACCOUNT CREDIT ASSETS OWNERS’

NO EQUITY
Effect Effect

117

© COPYRIGHT RESERVED
 CHAPTER 3
ACT 3.1
CREDITORS JOURNAL OF GOLDIE STORES – JULY 2024 CJ
Creditors Trading Packing Sundry Accounts
Doc Day Creditor Fol Stock material
Control Amount Details

ACT 3.2
CREDITORS JOURNAL OF GOLDIE STORES – AUGUST 2024 CJ
Creditors Trading Packing Sundry Accounts
Doc Day Creditor Fol Stock material
Control Amount Details

118

© COPYRIGHT RESERVED
CASH PAYMENTS JOURNAL OF GOLDIE STORES – AUGUST 2024 CPJ
Fol Trading Creditors Sundry Accounts
Doc Day Name of Payee Bank control
Stock Amount Details

ACT 3.3
CREDITORS JOURNAL OF HEIDI TRADERS – SEPTEMBER 2024 CJ
Creditors Trading Stationery Sundry Accounts
Doc Day Creditor Fol Stock
Control Amount Details

119

© COPYRIGHT RESERVED
CASH PAYMENTS JOURNAL OF HEIDI TRADERS – SEPTEMBER 2024 CPJ
Fol Trading Creditors Sundry Accounts
Doc Day Name of Payee Bank control
Stock Amount Details

ACT 3.4
CREDITORS JOURNAL OF SLICK AND SHICK – SEPTEMBER 2024 CJ
Creditors Trading Sundry Accounts
Doc Day Creditor Fol Stock
Control Amount Details

120

© COPYRIGHT RESERVED
CREDITORS ALLOWANCE JOURNAL OF SLICK AND SHICK – SEPTEMBER 2024 CAJ
Creditors Trading Sundry Accounts
Doc Day Creditor Fol Stock
Control Amount Details

ACT 3.5
CREDITORS JOURNAL OF JOJO TRADERS – OCTOBER 2024 CJ
Creditors Trading Sundry Accounts
Doc Day Creditor Fol Stock
Control Amount Details

121

© COPYRIGHT RESERVED
CASH PAYMENTS JOURNAL OF JOJO TRADERS – OCTOBER 2024 CPJ
Fol Trading Creditors Sundry Accounts
Doc Day Name of Payee Bank control
Stock Amount Details

CREDITORS ALLOWANCE JOURNAL OF JOJO TRADERS – OCTOBER 2024 CAJ

Creditors Trading Sundry Accounts
Doc Day Creditor Fol Stock
Control Amount Details

122

© COPYRIGHT RESERVED
 CREDITORS LEDGER OF JOJO TRADERS
AUSSIE STORES C1
DATE DETAILS FOL DEBIT CREDIT BALANCE

WALLABY TRADERS C2
DATE DETAILS FOL DEBIT CREDIT BALANCE

CREDITORS LIST

GENERAL LEDGER OF JOJO Traders

Balance Sheet Section
Trading stock B
Date Details Fol Amount Date Details Fol Amount

© Copyright Reserved Page 123

 Creditors Control B
Date Details Fol Amount Date Details Fol Amount

Nominal Account Section

Stationery N
Date Details Fol Amount Date Details Fol Amount

© Copyright Reserved Page 124

 ACT 3.6
CREDITORS JOURNAL OF SPRING TRADERS – NOVEMBER 2024 CJ
Creditors Trading Sundry Accounts
Doc Day Creditor Fol Stock
Control Amount Details

CREDITORS ALLOWANCE JOURNAL OF SPRING TRADERS – NOVEMBER 2024 CAJ

Creditors Trading Sundry Accounts
Doc Day Creditor Fol Stock
Control Amount Details

© Copyright Reserved Page 125

CASH PAYMENTS JOURNAL OF SPRING TRADERS – NOVEMBER 2024 CPJ
Fol Trading Creditors Sundry Accounts
Doc Day Name of Payee Bank control
Stock Amount Details

© Copyright Reserved Page 126

 CREDITORS LEDGER OF SPRING TRADERS
FLOWER STORES C1
DATE DETAILS FOL DEBIT CREDIT BALANCE

BEE TRADERS C2
DATE DETAILS FOL DEBIT CREDIT BALANCE

CREDITORS LIST

GENERAL LEDGER OF JOJO Traders

Balance Sheet Section
Trading stock B
Date Details Fol Amount Date Details Fol Amount

© Copyright Reserved Page 127

 Creditors Control B
Date Details Fol Amount Date Details Fol Amount

Nominal Account Section

Packing material N
Date Details Fol Amount Date Details Fol Amount

© Copyright Reserved Page 128

 ACT 3.7
CREDITORS JOURNAL OF MUSIC TRADERS – DECEMBER 2024 CJ
Creditors Trading Sundry Accounts
Doc Day Creditor Fol Stock
Control Amount Details

CREDITORS ALLOWANCE JOURNAL OF MUSIC TRADERS – DECEMBER 2024 CAJ

Creditors Trading Sundry Accounts
Doc Day Creditor Fol Stock
Control Amount Details

© Copyright Reserved Page 129

CASH PAYMENTS JOURNAL OF MUSIC TRADERS – DECEMBER 2024 CPJ
Fol Trading Creditors Sundry Accounts
Doc Day Name of Payee Bank control
Stock Amount Details

© Copyright Reserved Page 130

 CREDITORS LEDGER OF MUSIC TRADERS
SHARP STORES C1
DATE DETAILS FOL DEBIT CREDIT BALANCE

FLAT TRADERS C2
DATE DETAILS FOL DEBIT CREDIT BALANCE

CREDITORS LIST

GENERAL LEDGER OF MUSIC Traders

Balance Sheet Section
Trading stock B
Date Details Fol Amount Date Details Fol Amount

© Copyright Reserved Page 131

 Creditors Control B
Date Details Fol Amount Date Details Fol Amount

Nominal Account Section

Packing material N
Date Details Fol Amount Date Details Fol Amount

© Copyright Reserved Page 132

 ACT 3.8

ACCOUNT DEBIT ACCOUNT CREDIT A OE L

EFFECT EFFECT EFFECT

© Copyright Reserved Page 133

 CHAPTER 4
ACT 4.1

N Transaction Journal Account debit Account credit

o
1 Drew cash for wages CPJ Wages Bank
2 Paid rent

3 Purchase goods on credit

4 Cash received for services rendered

5 Paid an outstanding amount owed

6 Repairs paid cash

7 Owner took cash for own use

8 Purchase vehicle and paid for it

9 Consumable goods bought on credit

10 Paid for stationery bought

11 Purchase goods and paid by EFT

12 Purchase building and paid by EFT

13 Received cash for rent of building

14 Packing material purchased on credit

15 Cash sales of goods

16 Return stationery to supplier

17 Drew cash for the cash register

18 Received invoice for repairs

19 Paid water and electricity

20 Owner increased capital contribution

21 Paid trading licence

22 Purchase equipment on credit

© Copyright Reserved Page 134

23 Paid for packing material bought

24 Issue invoice for goods sold

25 Receive goods back from customer

26 Purchase stationery on credit

27 Received an allowance for goods bought on

credit last week.

© Copyright Reserved Page 135

 Act 4.2
CASH RECEIPTS JOURNAL OF Springbok Traders – March 2024 CRJ
Doc Day Details Analysis Bank Sales Cost of Debtors Sundry accounts
of receipts sales Control
Amount Details

DEBTORS JOURNAL OF Springbok Traders – March 2024 DJ

Doc Day Debtor Fol Sales Cost of Sales

© Copyright Reserved Page 136

DEBTORS ALLOWANCE JOURNAL OF Springbok Traders– March 2024 DAJ
Doc Day Debtor Fol Debtors Cost of Sales
allowance

CASH PAYMENTS JOURNAL OF Springbok Traders - March 2024 CPJ

Fol Trading Creditors Sundry Accounts
Doc Day Name of Payee Bank control
Stock Amount Details

© Copyright Reserved Page 137

CREDITORS JOURNAL OF Springbok Traders – March 2024 CJ
Creditors Trading Stationery Sundry Accounts
Doc Day Creditor Fol Stock
Control Amount Details

CREDITORS ALLOWANCE JOURNAL OF Springbok Traders – March 2024 CAJ

Creditors Trading Stationery Sundry Accounts
Doc Day Creditor Fol Stock
Control Amount Details

© Copyright Reserved Page 138

 DEBTORS LEDGER OF SPRINGBOK TRADERS
B SMITH D1
DATE DETAILS FOL DEBIT CREDIT BALANCE

CREDITORS LEDGER OF SPRINGBOK TRADERS

LK TRADERS C1
DATE DETAILS FOL DEBIT CREDIT BALANCE

GENERAL LEDGER OF Springbok Traders

Balance Sheet Section
Trading stock B
Date Details Fol Amount Date Details Fol Amount

© Copyright Reserved Page 139

 Debtors Control B
Date Details Fol Amount Date Details Fol Amount

Creditors Control B
Date Details Fol Amount Date Details Fol Amount

Nominal Account Section

Sales N
Date Details Fol Amount Date Details Fol Amount

Cost of salesl N
Date Details Fol Amount Date Details Fol Amount

© Copyright Reserved Page 140

 Debtors Allowance N
Date Details Fol Amount Date Details Fol Amount

Stationery N
Date Details Fol Amount Date Details Fol Amount

© Copyright Reserved Page 141

 Act 4.3
CASH RECEIPTS JOURNAL OF Part Planet – March 2024 CRJ
Doc Day Details Analysis Bank Sales Cost of Debtors Sundry accounts
of receipts sales Control
Amount Details

DEBTORS JOURNAL OF Party Planet – March 2024 DJ

Doc Day Debtor Fol Sales Cost of Sales

© Copyright Reserved Page 142

DEBTORS ALLOWANCE JOURNAL OF Party Planet– March 2024 DAJ
Doc Day Debtor Fol Debtors Cost of Sales
allowance

CASH PAYMENTS JOURNAL OF Party Planet - March 2024 CPJ

Fol Trading Creditors Sundry Accounts
Doc Day Name of Payee Bank control
Stock Amount Details

© Copyright Reserved Page 143

CREDITORS JOURNAL OF Party Planet – March 2024 CJ
Creditors Trading Stationery Sundry Accounts
Doc Day Creditor Fol Stock
Control Amount Details

CREDITORS ALLOWANCE JOURNAL OF Party Planet – March 2024 CAJ

Creditors Trading Stationery Sundry Accounts
Doc Day Creditor Fol Stock
Control Amount Details

© Copyright Reserved Page 144

 DEBTORS LEDGER OF PARTY PLANET
J RANJIT D3
DATE DETAILS FOL DEBIT CREDIT BALANCE

CREDITORS LEDGER OF PARTY PLANET

AUGUST WHOLESALERS C1
DATE DETAILS FOL DEBIT CREDIT BALANCE

GENERAL LEDGER OF Party Planet

Balance Sheet Section
Trading stock B
Date Details Fol Amount Date Details Fol Amount

© Copyright Reserved Page 145

 Debtors Control B
Date Details Fol Amount Date Details Fol Amount

Creditors Control B
Date Details Fol Amount Date Details Fol Amount

Nominal Account Section

Sales N
Date Details Fol Amount Date Details Fol Amount

Cost of salesl N
Date Details Fol Amount Date Details Fol Amount

© Copyright Reserved Page 146

 Debtors Allowance N
Date Details Fol Amount Date Details Fol Amount

ACT 4.4
GENERAL LEDGER OF Sunshine Traders
Balance Sheet Section
Trading stock B
Date Details Fol Amount Date Details Fol Amount

Debtors Control B
Date Details Fol Amount Date Details Fol Amount

© Copyright Reserved Page 147

 Creditors Control B
Date Details Fol Amount Date Details Fol Amount

Nominal Account Section

Sales N
Date Details Fol Amount Date Details Fol Amount

Cost of salesl N
Date Details Fol Amount Date Details Fol Amount

© Copyright Reserved Page 148

 ACT 4.5
DEBTORS LEDGER OF VAN STADEN TRADERS
P PIENAAR D3
DATE DETAILS FOL DEBIT CREDIT BALANCE

ACT 4.6
CREDITORS LEDGER OF BRAKE TRADERS
SMILY SUPPLES C1
DATE DETAILS FOL DEBIT CREDIT BALANCE

© Copyright Reserved Page 149

 ACT 4.7

Trial Balance of Mickey Stores on 28 February 2024

Balance Sheet Section Fol Debit Credit

Nominal Account Section

© Copyright Reserved Page 150

 ACT 4.7

Trial Balance of Minnie Stores on 31 March 2024

Balance Sheet Section Fol Debit Credit

Nominal Account Section

© Copyright Reserved Page 151

 ACT 4.9

ACCOUNT DEBIT ACCOUNT CREDIT A OE L

EFFECT EFFECT EFFECT

3
4
5
6

7
8
9

10

© Copyright Reserved Page 152