N4 Introductory

Financial Accounting
Lecturer Guide

Charlene Matthews and Kaamila Goolam

© Future Managers 2020

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First published 2020

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Published by
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Contents
Module 1 – Introduction: Forms of Ownership and Wealth Generation................................................................. 1
Module 2 – Opening a Trading Concern...........................................................................................................................................................7
Module 3 – Documents and authorisation of documents ........................................................................................................ 13
Module 4 – Accounting Principles and Definitions......................................................................................................................... 21
Module 5 – Accounting entries of a trading concern and trial balance................................................................. 29
Module 6 – Trading Organisation: Subsidiary Journals and Posting to the General Ledger.......55
Module 7 – Trading Concern: Wages and Salaries..........................................................................................................................103
Module 8 – Bank reconciliation.............................................................................................................................................................................. 123
Module 9 – Year End Procedures...........................................................................................................................................................................159
Module 10 – Revision exercises...............................................................................................................................................................................209
 Module 1
Introduction: Forms of Ownership
and Wealth Generation

After completing this module, students will be able to:

• Describe the motive of enterprises regarding the profit.
• Explain the principles of increasing and decreasing wealth.
• Explain how the owner of an enterprise can increase and decrease capital in service and trading
organisations.
• Identify the different forms of business enterprises and briefly define each one as well as their
differences and similarities.
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 1.1 SB page 3

1. Explain why an entrepreneur would want to start a business.
An entrepreneur wants to:
• make a profit
• be their own boss
• provide jobs.

2. Mention at least three advantages of an entrepreneur starting a business.

(Any three)
• The owner makes money.
• The owner has a successful business.
• The suppliers continue to have a business whom they can supply goods or services.
• The customers are able to still get the goods or services offered by the business.
• The business can continue to create employment.

3. List four types of service business and four types of retail business.

Service business Retail business

Hairdresser Café

Doctor Clothing store

Mechanic Furniture store

Lawyer Supermarket

Accept any reasonable answers.

4. Define and provide an example of income.

Income is the money the business earns when providing a service (e.g. doctor's fees) or
selling a product (selling a product at price higher than the purchase price) or investing
money into another company.

5. Define and provide an example of expense.

Expenses is the money that is spent on day-to-day necessities for the business to operate
efficiently, for example telephone, wages, electricity.

6. Explain the difference between profit and loss.

Profit is the money that is made from the income of a business after all expenses have been
paid.
A loss is made when the money that is made from the income of a business is less than the
expenses paid.

Profit /(loss) = Income less expenses

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 Module 1: Introduction: Forms of Ownership and Wealth Generation

Activity 1.2 SB page 7

Identify the type of organisation from the description given below:
1. These enterprises are managed by the government and not by any individual.
State-Owned Companies

2. The maximum number of members is 20.

Partnership

3. The owner is entitled to all the profits and has total control.
Sole trader

4. The profits are distributed among the members according to the amount of business that
has been done.
Co-operative

5. Anyone can buy shares.

Public company

6. The public's interests are more important than the profit motive.
Non-profit company

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 N4 Introductory Financial Accounting | Lecturer Guide

CASE STUDY SB page 7

Work in groups of 5.

Tembela Ncapayi worked as an assistant in a local community sports recreational facility.

She did not really enjoy working for someone else, so she decided to set up her own sports
recreational facility in the same village. She found suitable premises and bought equipment.
She advertised her new venture and made sure she had many advantages to offer compared to
her previous employer. Tembela took on three other staff members to cope with the anticipated
demand. Within 12 months of opening the business, Tembela had to close her doors. The fees
that she received did not cover her day-to-day expenses and she had a R30 000 bank overdraft
as a result of the opening expenses incurred. She was forced to sell her car to pay off the bank.
She learnt a hard lesson.

Answer the following questions:

1. What form of ownership did Tembela Ncapayi start with her sports recreational facility?
Sole trader

2. What are the main characteristics of this type of business?

The owner gets all the profit. The owner also bears all the losses.
The owner has total control and ownership of the business.
The owner must make all the decisions and take all the risks for the business.
The owner must invest all the capital.

3. Why did Tembela have to sell her car to meet the debts incurred by the business?
The business incurred a lot of expense upon start-up. Tembela had to start to use the bank’s
money to pay for her expenses. Tembela had a bank overdraft. She needed to repay the bank.
A sole trader is not a legal person. Therefore, she had to sell her personal car to cover the
expenses of the business.

4. Do you think it would have been any different for Tembela if she had started the business as
a) a partnership?
Yes. A partnership has a minimum of 2 partners. More capital could have been
contributed, then Tembela would not have to pay for all the expenses by herself.
b) a private company?
Yes. A private company can have many shareholders. More capital could have been
contributed, then Tembela would not have to pay for all the expenses by herself. Also, a
company a private company is a legal person, which means that Tembela would not have
to sell her personal car to pay the sports recreational facility expenses.

4
 Module 1: Introduction: Forms of Ownership and Wealth Generation

Summative Assessment SB page 8

Match the terminology in Column A with its definition in Column B. Only write the matching
letter in Column B.

COLUMN A COLUMN B

1. Retail business E. Sells goods to customers

2. Profit C. When income is more than expenses

3. Loss J. When expenses are more than incomes

4. Accounting F. Managing the business financially

5. Capital D. What the owner invests

6. Income I. Money earned from rendering a service and/or selling a product

7. Sole trader A. Owner takes all the risk

8. Partnership G. Maximum of 20 members

9. State-owned companies H. Financed by government

10. Private company B. The company name ends with (Pty) Ltd

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 N4 Introductory Financial Accounting | Lecturer Guide

6
 Module 2
Opening a Trading Concern

After completing this module, students will be able to:

• Identify the decisions with the opening as indicated on the Contents page.
• Explain other additional preparations that should be made when starting a business enterprise.
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 2.1 SB page 10

What decisions need to be made when an entrepreneur starts their own business?
• What type of business will it be? Will the business sell products or provide some kind of
service?
• The business must have a name. It has to be unique and original.
• All the legal paperwork must be completed so that the business can receive the necessary
licences to do business, and so that the government is aware that the business exists.
• What type of accounting system will be used by the business?
• Open a bank account for the new business.

Activity 2.2 SB page 12

Briefly explain the seven main activities of a business.

1. Budgeting
Every company creates a budget that dictates how revenue is utilised in daily operations and
in the pursuit of future growth. Each department manager gives input on the costs of ongoing
operations, and then a budget is created that allows the company to track all spending and
revenue. The budget from the previous year is compared to that year’s actual results to create
a guideline for creating the next year’s spending plan.
2. Accounting and Auditing
Accounting is the process of managing the flow of money in and out of the company. Areas
that come under the accounting group are accounts payable, accounts receivable, payroll,
customer credit accounts, collections and tax accounting.
3. Marketing
Marketing helps to develop company and brand recognition in the marketplace as well as
develop advertising pieces that the buying public would see.
4. Sales activities
Sales is the group that maintains direct contact with the customer base. The sales group
reaches out to prospects to help expand the customer base while also maintaining
relationships with existing clients to secure repeat sales.
5. Operations and Supply chain
The supply chain is a very important aspect of the business. Every company needs a good
supply chain management system that will take care of processes right from inventory
management to delivery management.
6. Customer service
Customer service maintains corporate revenue by resolving customer issues and preserving
the buying relationship. The customer service department is who the customer calls when
they have a shipping, product or billing issue.
7. Hiring Qualified Employees
The human resources aspect of an organisation is important to maintaining current
operations as well as planning for future expansion. A company needs to actively search out
qualified candidates whose qualifications match current available positions, or who can be
kept available should a personnel need arise.

8
 Module 2: Opening a Trading Concern

Activity 2.3 SB page 12

1. Define capital acquisition.
Capital acquisition is the means by which you acquire new assets for your business. You use
your capital to purchase assets like equipment, inventory, software, or even a business itself.
The sole purpose of these acquisitions is, ultimately, to grow the overall profits of a business.

2. Explain the difference between acquiring capital debt and acquiring capital equity.
Acquiring capital debt:
When someone is paid back, usually with interest, in the form of loan payments rather than
dividend payments, one can be sure that debt financing is being used.

Acquiring capital equity

Rather than receiving a loan which must be paid back, a company that receives equity
financing provides company inventory, either common or preferred, for the capital it receives.
Equity financing is, essentially, payment in exchange for partial ownership in a company.

Activity 2.4 SB page 13

Name five forms of ownership.
• Sole proprietorship
• Partnership
• LLC – Limited Liability Company
• Corporation
• Trust

Activity 2.5 SB page 14

Briefly name and explain eight bases of conducting business.
• Strategic Management – Creating a business and strategic plan for your business and
making sure you keep to it
• Basic Accounting – Which records to keep, how to keep them and how to file them
• Financial Management – Your ability to acquire the money you need, and account for the
money you receive
• Labour – Your ability to find the people you need, deal with unions, establish personnel
policies, training and organisational development
• Marketing – Your ability to determine and sell the right product to the right customer at the
right time
• Production – Your ability to produce products and services at a high enough level of quality
and consistency over time
• Regulation – Your ability to deal with the requirements of government legislation at all levels
• Distribution – Your ability to get your product or service to the market in a timely and
economic fashion

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 N4 Introductory Financial Accounting | Lecturer Guide

Activity 2.6 SB page 14

Name five assets that can be used to start a business.
(Any five)
• Cash
• Prepaid expenses
• Accounts receivable
• Inventory
• Building
• Machinery
• Equipment
• Patents
• Goodwill
• Copyrights

Activity 2.7 SB page 16

Name four additional preparations when starting a business.
1. Opening date
2. Writing a business plan
3. Introduction or advertising
4. Printing of documents

Activity 2.8 SB page 18

Name the seven steps when employing workers.
1. Pre-recruitment
2. Advertising
3. Costs of attending interviews
4. Selection committee composition
5. Selection committee proceedings
6. Feedback and counselling
7. Job offers

Activity 2.9 SB page 19

What do the following abbreviations stand for?
1. SARS: South African Revenue Services
2. CIPC: Companies and Intellectual Property Commission

10
 Module 2: Opening a Trading Concern

Summative Assessment SB page 19

1. Is the following statement true or false?
1.1 When an entrepreneur starts a business, they don’t need to open a bank account for the
business. False
1.2 Capital Acquisition is how you acquire new assets for your business. True
1.3 A partnership is not a form of enterprise. False
1.4 A Business Plan refers to a written document that comprehensively outlines what your
business is, where it is going, and how it will get there. True
1.5 Advertising is the first step to appoint an employee. False

2. Briefly explain the following concepts.

2.1 When you open a trading business, it is important that you budget correctly.
Briefly explain budgeting.
Every company creates a budget that dictates how revenue is utilised in daily operations
and in the pursuit of future growth. Each department gives input on the cost of ongoing
operations, and then a budget is created that allows the company to track all spending
and revenue. The budget from the previous year is compared to that year's actual results
to form a guideline for creating the next year’s spending plan.

2.2 Explain the difference between acquiring capital debt and acquiring capital equity.
Acquiring capital debt
When someone is paid back, usually with interest, in the form of loan payments rather
than dividend payments, you can be sure that debt financing is being used.

Acquiring capital equity

Rather than receiving a loan which must be paid back, a company which receives equity
financing provides company inventory, either common or preferred, for the capital it
receives. Equity financing is, essentially, payment in exchange for partial ownership in a
company.

2.3 Explain five bases of conducting a business.

• Strategic Management – Creating a business and strategic plan for your business and
making sure you keep to it
• Basic Accounting – Which records to keep, how to keep them and how to file them
• Financial Management – Your ability to acquire the money you need, and account for
the money you receive
• Labour – Your ability to find the people you need, deal with unions, establish personnel
policies, training and organisational development
• Marketing – Your ability to determine and sell the right product to the right customer
at the right time
• Production – Your ability to produce products and services at a high enough level of
quality and consistency over time
• Regulation – Your ability to deal with the requirements of government legislation at all
levels
• Distribution – Your ability to get your product or service to the market in a timely and
economic fashion

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 N4 Introductory Financial Accounting | Lecturer Guide

Summative Assessment (continued)

2.4 Name seven steps to appoint an employee.
• Pre-recruitment
• Advertising
• Cost of attending interview
• Selection committee composition
• Selection committee proceedings
• Feedback and counselling
• Job offer

2.5 Briefly explain tax registration.

• To become an officially recognised business entity, you must register with the
government. Corporations will need an “articles of incorporation” document, which
includes your business name, business purpose, corporate structure, inventory details
and other information about your company.
• Otherwise, you will just need to register your business name, which can be your legal
name, a fictitious “doing business as” name (if you are the sole proprietor), or the
name you’ve come up with for your company. You may also want to take steps to
trademark your business name for extra legal protection.
• After you register your business, you may need to get an employer identification
number from SARS.

3. Fill in the size of the below enterprises.

Micro enterprises -9
Small enterprises 0-49
Medium enterprises 50-249
Large enterprises 250 or more

4. What do the following abbreviations stand for?

4.1 SARS
South African Revenue Services

4.2 CIPC
Companies and Intellectual Property Commission

Summative Assessment SB page 20

Work in groups of 5.

Discuss in detail your Trade Business Budget for next year. Compile a list with figures with
projected Total Operating Income and Total Operating Expenditure to calculate the Profit/Loss
of your company.
• Decide as a group your company's name and the goods or service that you will sell or deliver.
• Type your final budget into a spreadsheet.
• The spreadsheet must include all the group members' names.
• The layout of the budget is your choice as a group.
• Use Google Search Engine to decide on your budget layout.

Assess on merit.

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 Module 3
Documents and authorisation of documents

After completing this module, students will be able to:

• Define and explain the purpose and function of each of the documents mentioned.
• Outline the application of source documents in the recording process as well as the difference.
• Explain the purpose of filing, safekeeping, types of filing and the procedure for safe keeping.
• Briefly describe the necessity of authorising transactions.
• Explain the procedure to open a bank account and to identify, interpret and complete the
applicable documents.
• Indicate the purpose and particulars on the deposit slip.
• Identify the different types of cheques, as well as to briefly explain the kinds of crossings,
endorsements and alterations to cheques and the reasons thereof.
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 3.1 SB page 28

Work in pairs.

Yo-Yo Designers is a business that design jackets for men and women.

Study the following transactions of Yo-Yo Designers and complete the blank source
documents provided to you.

1. On 9 November 20.1, K Sait, a debtor, settled his account of R720 by cheque (acc.no.
WP111192). Complete the document that you issued to him.

2. Cash sales to P Smith on 14 November 20.1: 2 Billabong shirts at R267,99 each;

3 pairs of La Coste trousers at R350,99 each; 4 leather belts at R159,90 each

VAT was not included in the selling prices.

3. On 15 November 20.1, the following cash and cheques were deposited into the bank
account Yo-Yo Designers; [account number 651114423 / branch code 1965].

Use today’s date (15 November 20.1) as deposit reference. Yo-Yo made the deposit at the
bank. Yo-Yo’s telephone number is 0211555029.

Notes: R200 × 15
R100 × 84
R50 × 6
R20 × 14
R10 × 3

Coins: R148,00

Cheques received from: K Sait, ABSA (PAROW) R720

4. On the 17 November 20.1, Yo-Yo Designers received R2 500 for rent from M Hall.
Complete the source document.

5. The owner Chris Yo-Yo contributed an additional capital contribution of R50 000 to the
current account of the business.
Issue him with a source document on 24 November 20.1.

6. On 29 November 20.1 the organisation purchased a bakkie from Toy for R56 000 and paid
by cheque.

RECEIPT
YO-YO DESIGNERS
DATE 09/11/20.1 RECEIPT NUMBER R051

RECEIVED FROM K Sait

IN PAYMENT OF Settlement of account

THE AMOUNT OF (IN WORDS)

Seven hundred and twenty rand

WITH THANKS TOTAL R720 00

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 Module 3: Documents and authorisation of documents

Activity 3.1 (continued)

RECEIPT
YO-YO DESIGNERS
DATE 17/11/20.1 RECEIPT NUMBER R052

RECEIVED FROM M Hall

IN PAYMENT OF Rent received

THE AMOUNT OF (IN WORDS)

Two thousand five hundred rand

WITH THANKS TOTAL R2 500 00

RECEIPT
YO-YO DESIGNERS
DATE 24/11/20.1 RECEIPT NUMBER R053

RECEIVED FROM Chris Yo-Yo

IN PAYMENT OF Capital contribution

THE AMOUNT OF (IN WORDS)

Fifty thousand rand

WITH THANKS TOTAL R50 000 00

Date 29/11/20.1 78-00

Date: 29/11/20.1
AB BANK
To Toy Or bearer

For Bakkie
P a y : Toy

Balance b/d

Amount paid A m o u n t : Fifty-six thousand rand only

in

Balance
R56 000.00
This cheque 56 000 00

ATM C Yo-Yo
Yo - Yo D e s i g n e r s
Withdrawels

Balance c/d
1245678976 OJ BANK

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 N4 Introductory Financial Accounting | Lecturer Guide

CASH TAX INVOICE

YO-YO DESIGNERS
13 Cricket Street, Cape Town, 7945 Tel: 021 (155 5029) Fax: 021 (555 229)
Vat No: 8976532098

Date: 14/11/20.1 Number: 1006

To: P. Smith
Address: Cash sale

Quantity Description Unit Price Total

2 Billabong shirts 267 99 535 98

3 La Coste trousers 350 99 1 052 97

4 Leather belts 159 90 639 60

Total exclusive of VAT 2 228 55

VAT & 15% 334 28

Total including VAT 2 562 83

20.1

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 Module 3: Documents and authorisation of documents

Activity 3.2 SB page 28

1. List source documents that you use daily.
Tax invoice, receipt, till slip, etc.

2. Write a paragraph on the possible consequences of not archiving source documents.

• The source documents could get lost.
• No one will be able to check the information.
• It might appear that the business is committing fraud.

3. What do you understand by the concept supporting documents?

A source document is the document that serves as the main source of information from
which the bookkeeper can enter a transaction.

A supporting document is used to support the source document in order to verify the
transaction or accounting entry.

4. What is the difference between internal and external documents?

Internal documents are completed and issued by the business.

External documents are received from outside the business.

CASE STUDY SB page 29

Work in groups.

Thembisa Burton has started a business selling

fashionable clothing items to young adults. Her
business is called Stuff from Thembi. On consultation
with her accountant, Shaun, she had all her documents
printed with the name of the business and other
information. Shaun also insisted that she opens up a
bank account in the name of the business. Shaun is
trying to teach Thembisa some accounting and has tried
to get her to practise some accounting concepts and wants her to understand the purpose of
source documents.

Answer the following questions:

1. State which source document will be used by the business to record the transaction in the
books of the business. Also state if it is an external or internal source document:
• Bought R13 500 worth of inventory on credit from Bootlegs CC.
Credit tax invoice > External
• Inventory to the value of R1 500 was damaged and had to be returned to Bootlegs CC.
Credit note > External
• Paris bought a handbag for R800 cash.
Cash tax invoice / Receipt > Internal
• Received rent for part of the building for the month – R4 000.
Receipt > Internal
• Sold goods on credit to D. Hoskins for R8 000.
Credit tax invoice > Internal

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 N4 Introductory Financial Accounting | Lecturer Guide

• Paid R3 000 to Bootlegs CC.

Cheque counterfoil > Internal & Receipt > External
• D. Hoskins paid her account.
Receipt > Internal

2. Why do you think the name of the business needs to be preprinted on the business
documents?
• To make it easier for recording transactions with outside organisations
• To prevent fraud

3. Name two other details that should be preprinted on documents.

address / contact details / logo / date / reference number

4. Why does Thembisa need to open an account in the name of the business?
The money belongs to the business and therefore should not be in her personal bank account
but rather in a business bank account.

Activity 3.3 SB page 32

Complete a deposit slip by making use of the following information:

Account number 2362142586

Account name G Lines

Paid in by P. Davids (021 987 6543)

Date deposited 18 March 20.1

Credit Phalon Traders

Notes R5 000.00

Coins R68.50

Cheque Drawer: N. Damon; R2 500.00 (SmartBank, Tokai)

Drawer: W. Clarke; R1 125.00 (ETC Bank,653874)

Reference Deposit 18/03/20.1

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 Module 3: Documents and authorisation of documents

Activity 3.4 SB page 36

1. Study the following cheque and cheque counterfoil, then refer to the cheque and cheque
counterfoil to answer the questions below.

Date 28/03/20.5 DATE: 28 March 20.5

EG BANK
To Chirpy Stores Tokai
For Purchases Pay: Chirpy Stores Or bearer
Balance b/d The sum of: One thousand five hundred and
Amount paid fifty rand only
in
R 1 550.00
Balance

This cheque 1 550 00 Signature: MS Parker

ATM For: MS Stores
Withdrawels

Balance c/d
0260 0260 025193 1245678976

a) Who is the drawee?

E.G. Bank

b) Who is the drawer?

MS Parker

c) Who is the payee?

Chirpy Stores

d) Name the source document.

Cheque counterfoil

e) Explain whether MS Parker can make an alteration on the cheque.

No, MS Parker cannot make alterations on the cheque. Banks do not accept altered
cheques. The cheque must be cancelled and be replaced with a new cheque.

f) Is this a bearer or order cheque? Provide an explanation.

It is a Bearer Cheque as it does not have two parallel lines drawn across it.

g) What is the advantage of crossing a cheque?

It is a method of protecting or securing a cheque.
The cheque cannot be used to draw cash at bank.
The cheque must be deposited into the bank account.

h) Can this cheque be cashed over the counter?

Yes, the cheque can be cashed over the counter.

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 N4 Introductory Financial Accounting | Lecturer Guide

Activity 3.4 (continued)

i) What does it mean if a cheque is stale? On which date will this cheque above become
stale?
A stale cheque is an “old” cheque that was dated more than six months before the date
on which it is being deposited.
This cheque will become stale on 28 September 20.5 (28/09/20.5)

j) Mention two ways in which payment on this cheque can be made more secure.
• By crossing the cheque
• By writing on the cheque:
– Not transferrable
– Not negotiable OR
– Account payee (acc. payee) only

2. If you are the owner of your own business, would you use internet banking? Explain why you
would or would not use internet banking.
Yes, Internet banking is convenient and safe way to handle your money. The business then
has to access various services and facilities. Can also review the history of the account’s
transactions, transfer funds from one account to another, etc.

No, it is difficult to use. Data is expensive. Any other applicable explanation.

Summative Assessment SB page 36

Work in groups of 4.

Each member of your group will have 3 days to do the following:

1. Collect as many source documents as possible.
2. Research about what methods companies use for filing.

Once everyone has gathered documents and researched filing methods, present your findings
to your class.

Which documents were collected the most? Which filing systems seems to be more popular?

Assess on merit.

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 Module 4
Accounting Principles and Definitions

After completing this module, students will be able to:

• Define each of the accounting concepts in the contents column as according to IFRS and give a
practical example for each concept.
• Give a graphical representation of the accounting cycle.
• Record transactions in the accounting equation format.
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 4.1 SB page 46

1. Match the terminology in column A with its definition in column B.

Column A Column B

a) Current assets A. All the money, goods, etc. that the owner takes from the business for
personal use

b) Fixed assets B. The amounts incurred by a business in the daily running of the
business that are necessary in order to earn income

c) Liabilities C. Resources of a business that have value and that will remain in the
business for longer than one financial year. They are not bought for
the purpose for resale

d) Owners’ equity D. The amounts earned by a business through its daily operations.

e) Incomes E. When the income is more than the expenses

f) Expenses F. Obligations which need to be settled

g) Drawings G. The owner’s worth or the owner’s claim on the business

h) Profit H. The resources of the business will be changed into cash within one
financial year

Column A Column B Column A Column B Column A Column B

1. H. 4. G. 7. A.
2. C. 5. D. 8. E.
3. F. 6. B.

2. Give 2 examples of non-current assets.

Land & buildings
Office equipment
Vehicles
Fixed deposit

3. Give 2 examples of current assets.

Debtors
Inventory
Cash in the bank
Petty cash
Cash float

4. Give 2 examples of income.

Sales
Interest received
Rent income

5. Give 2 examples of expenses.

Salaries and wages
Telephone

6. Give 2 examples of current liabilities.

Creditors
Bank overdraft
Short-term loan

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 Module 4: Accounting Principles and Definitions

Activity 4.2 SB page 46

1. Complete the following table to determine the missing amounts:

No. Assets Owner’s Equity Liabilities

a) 15 800 3 800 12 000

b) 54 900 33 900 21 000

c) 53 750 52 430 1 320

d) 130 900 62 600 68 300

e) 86 000 50 400 35 600

2. The value of a spaza shop’s assets, owner’s equity and liabilities on 30 April 20.1 were as
follows:
Assets R71 587
Owner’s equity R44 868
Liabilities R26 719

On 1 May 20.1 the spaza shop buys a new delivery motorcycle valued at R7 550 on credit
from MS Motors.
a) What will the new value of the assets be?
R71 587 + 7 550
= R79 137

b) What will the new value of the liabilities be?

R26 719 + 7 550
= R34 269

c) Complete the elements of the accounting equation:

Assets Owner’s Equity Liabilities

30/04/20.1 71 587 44 868 26 719
01/05/20.1 79 137 44 868 34 269

23
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 4.3 SB page 47

Process the following transactions for May 20.1 of MSG Motors, using the accounting equation.
1 The owner, Shafiek, made a capital contribution of R16 000 and deposited it into a bank
account in the name of the business.
2 He bought tools for the business, R2 400.
3 Paid for a trading licence, R250.
10 Paid the printing of advertising fliers, R350.
15 Bought a cellular phone for the business, R450.
16 Received R1 800 for services rendered and banked it.
20 Purchased cleaning aids, R180.
24 Paid the rental account, R3 500.
28 Paid wages, R850.
29 Cash takings for the day amounted to R1 450.
30 Bought a vehicle on credit for R25 000.
31 Paid the creditor a first installment of R5 000.

DATE GENERAL LEDGER

ACCOUNT DEBIT ACCOUNT ASSETS = OWNER'S LIABILITIES
CREDIT EQUITY +
1 May 20.1 Bank Capital + 16 000 +16 000
2 May 20.1 Equipment Bank +2 400
-2 400
3 May 20.1 Trading Licence -250 -250
Bank
10 May 20.1 Advertising Bank -350 -350
15 May 20.1 Equipment Bank +450
-450
16 May 20.1 Bank Service +1 800 +1 800
Rendered
20 May 20.1 Cleaning Bank -180 -180
Material
24 May 20.1 Rent expense Bank -3 500 -3 500
28 May 20.1 Wages Bank -850 -850
29 May 20.1 Bank Sales +1 450 +1 450
30 May 20.1 Vechicle Trade Payables +25 000 +25 000
Control
31 May 20.1 Creditors control Bank -5 000 -5 000

24
 Module 4: Accounting Principles and Definitions

Activity 4.4 SB page 48

Process the following transactions for April 20.1 of SD Tutors, using the accounting equation.
1 The owner, Mrs Davids, made a capital contribution of R8 000 and deposited it into a bank
account.
2 Paid for a trade licence, R1 200.
8 Cash received for services rendered, R2 150.
9 Bought 3 computers on credit, R18 750 in total.
13 Bought stationery from Game, R1 380.
15 Paid the telephone account, R550.
18 Mrs. Davids increased her capital giving by contributing an inkjet photocopier/ printer to
the value of R4 550.
22 Paid the city council for water and electricity, R430.
27 R4 150 was received from her students for tuition.
30 Paid weekly wages, R350.

DATE GENERAL LEDGER

ACCOUNT ACCOUNT ASSETS = OWNER'S LIABILITIES
DEBIT CREDIT EQUITY +
1 April 20.1 Bank Capital +8 000 +8 000
2 April 20.1 Trading Bank -1 200 -1 200
Licence
8 April 20.1 Bank Services +2 150 +2 150
rendered
9 April 20.1 Equipment Trade Payables +18 750 +18 750
Control
13 April 20.1 Stationery Bank -1 380 -1 380
15 April 20.1 Telephone Bank -550 -550
18 April 20.1 Equipment Capital +4 550 +4 550
22 April 20.1 Water and Bank -430 -430
Electricity
27 April 20.1 Bank Services +4 150 +4 150
Rendered
30 April 20.1 Wages Bank -350 -350

25
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 4.5 SB page 48

Process the following transactions for February 20.1 of Fuzzy’s Treats, using the accounting
equation.
1 The owner invested R200 000 in the business as her capital contribution.
3 Bought a computer and printer from Tokai Computers for R12 000 and paid by cheque.
8 Paid R450 by cheque for trading licence to the City Council.
10 Sold goods for cash, R1 250.
14 Bought merchandise from OK for R2 340 and paid by cheque.
17 Bought a delivery motorcycle for R6 500 on account from Scooters.
19 Sold goods on account for R2 705.
23 Issued a cheque of R350 for petty cash.
27 The owner withdrew R1 500 for own personal use.
28 Paid the rent for business premises, R2 500.

DATE GENERAL LEDGER

ACCOUNT DEBIT ACCOUNT ASSETS = OWNERS LIABILITIES
CREDIT EQUITY +
1 Feb 20.1 Bank Capital +200 000 +200 000
3 Feb 20.1 Equipment Bank +12 000
-12 000
8 Feb 20.1 Trading Licence Bank -450 -450
10 Feb 20.1 Bank Sales +1 250 +1 250
14 Feb 20.1 Purchases Bank -2 340 -2 340
17 Feb 20.1 Vehicles Trade Payables +6 500 +6 500
Control
19 Feb 20.1 Trade Receivables Sales +2 705 +2 705
Control
23 Feb 20.1 Petty cash Bank +350
-350
27 Feb 20.1 Drawings Bank -1500 -1 500
28 Feb 20.1 Rent expense Bank -2 500 -2 500

26
 Module 4: Accounting Principles and Definitions

Summative Assessment SB page 49

1. Process the following transactions for June 20.1 of Jainee Snax, using the accounting
equation.
1 The owner invested R12 000 in the business as her capital contribution.
5 Bought a compressor machine on account for R2 000 from Hyper.
8 Paid R450 for packaging material to Magra and paid by cheque.
10 Sold goods for cash, R1 250.
12 Bought merchandise, R2 340, and stationery, R580 from Makro and paid by cheque.
15 Bought a delivery motorcycle from ScootaMania R2 750 and paid by cheque.
21 Sold goods on account for R1 505 to Shana.
25 Paid Hyper R500 for payment of their account.
28 The owner withdrew R75 from petty cash for own personal use.
30 Shana paid Jainee Snax R500 on their account.

DATE GENERAL LEDGER

ACCOUNT ACCOUNT ASSETS = OWNER'S LIABILITIES
DEBIT CREDIT EQUITY +
1 June 20.1 Bank Capital +12 000 +12 000
5 June 20.1 Equipment Creditors +2 000 +2 000
8 June 20.1 Packing Bank -450 -450
material
10 June 20.1 Bank Sales +1 250 +1 250
12 June 20.1 Purchases: Bank -2 920 -2 340
Stationery -580
15 June 20.1 Vehicles Bank +2 750
-2 750
21 June 20.1 Debtors Sales +1 505 +1 505
25 June 20.1 Creditors Bank -500 -500
28 June 20.1 Drawings Petty Cash -75 -75
30 June 20.1 Bank Debtor +500
-500

2. Calculate the Current Assets.

In 2020, Company X had:
R1 million in cash
R3 million in cash equivalents
R5 million in accounts receivable
R3million worth of inventory
R1.5 million of prepaid expenses

Using the formula, we can find the company’s total current assets for the 2020 financial
year:
Current assets = 1m + 3m + 5m + 3m + 5m + 1.5m = R13.5 Million

27
 N4 Introductory Financial Accounting | Lecturer Guide

Summative Assessment SB page 50

Work in pairs.

List the following accounts under the heading supplied in the first column by indicating your
answer by means of an X with the category under which it falls in the appropriate column:

Owner’s
Account Assets Liabilities Income Expenses
Equity

a) Capital 
b) Investment 
c) Trading inventory 
d) Creditors 
e) Rent received 
f) Stationery 
g) Vehicles 

28
 Module 5
Accounting entries of a trading concern
and trial balance

After completing this module, students will be able to:

• Explain the double entry principle and to apply it practically.
• Explain the following regarding the ledger accounts and apply those practically:
– The purpose of a ledger account
– The structure of a ledger account
– Different columns, as well as debit and credit sides
– Different sections of ledger accounts, namely the Financial Position and Nominal accounts
sections
– Grouping of accounts in the ledger
• Enter the different transactions directly from the source document to the ledger account.
• Explain the purpose of the Trial Balance.
• Transfer the balances and totals from the ledger to the Trial Balance.
• Test the correctness of the double entries by means of a Trial Balance and trace errors if the
Trial Balance does not balance.
• Open accounts in the General Ledger from a given Trial Balance.
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 5.1 SB page 54

Work in pairs.

Instruction
Open the required accounts in the General Ledger in your workbook.

Transactions: October 20.1

1 Bought land and buildings from Max and paid per cheque R15 000.
3 Paid Service Centre R5 000 for the repair of one of the machines.
8 Paid salaries to the workers with a cash cheque R3 000.
10 Paid the interest on loan at 10% per annum on R50 000 to FNB.
12 Gave a cash donation to the Hospice of R600.
15 Paid the creditors R700 per cheque.
17 Received a cheque from Dixy Bank for the fixed deposit of R50 000 that matured, issued
receipt 13.
20 Issued receipt 14 for R5 000 received from a tenant, S Burger, for rent of a house.
30 The bank statement received from Dixy Bank showed interest credited by the bank on the
favourable balance on the current account, R85.

DEBIT BANK B3 CREDIT

Date Details Fol. Amount Date Details Fol. Amount

20.1 17 Fixed deposit: 50 000 20.1 1 Land and 15 000

Oct Dixy Bank Oct buildings

20 Rent income 5 000 3 Repairs 5 000

30 Interest received 85 8 Salaries 3 000

on current a/c
10 Interest on loan 417

12 Donation Income 600

15 Trade Payables 700

Control

LAND AND BUILDINGS B1

Date Details Fol. Amount Date Details Fol. Amount

20.1
Oct 1 Bank 15 000

FIXED DEPOSIT: DIXY BANK B2

Date Details Fol. Amount Date Details Fol. Amount

20.1
Oct 17 Bank 50 000

30
 Module 5: Accounting entries of a trading concern and trial balance

Activity 5.1 (continued)

TRADE PAYABLE CONTROL B4

Date Details Fol. Amount Date Details Fol. Amount

20.1
Oct 15 Bank 700

RENT INCOME N1

Date Details Fol. Amount Date Details Fol. Amount

20.1
Oct 20 Bank 5 000

INTEREST RECEIVED ON CURRENT ACCOUNT N2

Date Details Fol. Amount Date Details Fol. Amount

20.1
Oct 30 Bank 85

SALARIES N3

Date Details Fol. Amount Date Details Fol. Amount

20.1
Oct 8 Bank 3 000

REPAIRS N4

Date Details Fol. Amount Date Details Fol. Amount

20.1
Oct 3 Bank 5 000

INTEREST ON LOAN N5

Date Details Fol. Amount Date Details Fol. Amount

20.1
Oct 10 Bank 417

DONATION INCOME N6

Date Details Fol. Amount Date Details Fol. Amount

20.1
Oct 12 Bank 600

31
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 5.2 SB page 55

Open the required accounts in the General Ledger in your workbook of Walco Car Dealership
for April.

Day Document Transaction Amount

Number
R c
1 Cheque 221 To Telkom for the telephone account. 200 00

Receipt no. 3 The owner, Kabelo Walco, gave a cheque as additional capital
contribution. Receipt no. 3 was issued to him. 70 000 00
Receipt no. 4 Received electronically from AB Bank for a loan made to
develop a new car. Receipt no. 4 was issued 100 000 00
5 Cheque 222 To The Advertiser for advertisement. 250 00
15 Receipt no. 5 Sold a car cash 25 000 00
Cheque 223 Cash to pay wages. 1 500 00
Receipt no. 6 Received from a tenant N Willemse for rent. Issued receipt no. 5 2 900 00
23 Cheque 224 To Vawdas Suppliers for the purchase of merchandise 32 400 00
30 Cheque 225 To Homesure Properties for the rent of the building. 1 500 00
Cheque 226 Owner for private use. 800 00

BANK B3

Date Details Fol. Amount Date Details Fol. Amount

Apr 1 Capital 70 000 Apr 1 Telephone 200

5 Advertising
Loan: AB Bank 100 000 250

5 Sales 25 000 15 Wages 1 500

15 Rent income 2 900 23 Purchases 32 400

30 Rent expense 1 500
Drawings 800

CAPITAL B1

Date Details Fol. Amount Date Details Fol. Amount

Apr 1 Bank 70 000

DRAWINGS B2

Date Details Fol. Amount Date Details Fol. Amount

Apr 30 Bank 800

LOAN: AB BANK B4

Date Details Fol. Amount Date Details Fol. Amount

Apr 1 Bank 100 000

32
 Module 5: Accounting entries of a trading concern and trial balance

Activity 5.2 (continued)

SALES N1

Date Details Fol. Amount Date Details Fol. Amount

Apr 5 Bank 25 000

PURCHASES N2

Date Details Fol. Amount Date Details Fol. Amount

Apr 23 Bank 32 400

RENT INCOME N3

Date Details Fol. Amount Date Details Fol. Amount

Apr 15 Bank 2 900

RENT EXPENSE N4

Date Details Fol. Amount Date Details Fol. Amount

Apr 30 Bank 800

WAGES N5

Date Details Fol. Amount Date Details Fol. Amount

Apr 15 Bank 1 500

ADVERTISING N6

Date Details Fol. Amount Date Details Fol. Amount

Apr 5 Bank 250

TELEPHONE N7

Date Details Fol. Amount Date Details Fol. Amount

Apr 1 Bank 200

33
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 5.3 SB page 55

Instruction
Open the required accounts in the General Ledger in your workbook.

Transactions: April 20.1

1 The owner gave a cheque of R70 000 as additional capital contribution.
Receipt no. 3 was issued to him.
5 Sold goods cash for R8 500 and received the cash.
6 Received R2 900 from a tenant for rent. Issued receipt no. 4.
8 Bought from B Builder equipment, which cost R7 750.
9 Bought trading inventory from Makro and paid per cheque R5 000.
11 Received R15 000 for a short-term loan from L Shark.
14 Paid R660 for the telephone account.
16 Paid the salaries to Ivan by cheque R306.
18 Paid the interest on loan to Standard Bank R450.

CAPITAL B1

Date Details Fol. Amount Date Details Fol. Amount

20.1
April 1 Bank 70 000

EQUIPMENT B2

Date Details Fol. Amount Date Details Fol. Amount

20.1
April 8 Bank 7 750

BANK B3

Date Details Fol. Amount Date Details Fol. Amount

20.1 20.1
April 1 Capital 70 000 April 9 Purchases 5 000

5 Sales 8 500 8 Equipment 7 750

6 Rent income 2 900 14 Telephone 660

11 Loan: L Shark 15 000 16 Salaries 306

Interest on
18 450
loan

LOAN: L SHARK B4

Date Details Fol. Amount Date Details Fol. Amount

20.1
April 11 Bank 15 000

34
 Module 5: Accounting entries of a trading concern and trial balance

Activity 5.3 (continued)

SALES N1

Date Details Fol. Amount Date Details Fol. Amount

20.1
April 5 Bank 8 500

PURCHASES N2

Date Details Fol. Amount Date Details Fol. Amount

20.1
April 9 Bank 5 000

RENT INCOME N3

Date Details Fol. Amount Date Details Fol. Amount

20.1
April 6 Bank 2 900

TELEPHONE N4

Date Details Fol. Amount Date Details Fol. Amount

20.1
April 14 Bank 660

SALARIES N5

Date Details Fol. Amount Date Details Fol. Amount

20.1
April 16 Bank 306

INTEREST ON LOAN N6

Date Details Fol. Amount Date Details Fol. Amount

20.1
April 18 Bank 450

35
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 5.4 SB page 58

Calculate the cost prices in the following table.

No. Selling Price Mark up% Cost CP = SP × 100/(100 + MU)

Price

1. R4 500 25% R3 600.00

2. R2 900 20% R2 416.67

3. R3 000 33.33% R2 250.06

4. R8 900 45% R6 137.93

5. R12 000 75% R6 857.14

Activity 5.5 SB page 61

Calculate the selling prices in the following table.

No. Cost Price Profit Mark up% Selling Price

SP = CP × (100 + MU)/100
1. R800 50% R1 200.00

2. R580 25% R725.00

3. R350 33.33% R466.66

4. R3 000 66.67% R5 000.10

5. R8 900 100% R17 800.00

36
 Module 5: Accounting entries of a trading concern and trial balance

Activity 5.6 SB page 62

Complete the following calculations:

NB! SHOW ALL CALCULATIONS!

1. Calculate the amount of discount given to a customer if:

a) The customer owes R7 500 and a discount of 4% is allowed.
R7 500 * 4%
= R300

b) The amount owing is R6 500 and the amount received from the customer in full
settlement of his account is R6 000.
R6 500 – R6 000
= R500

2. Calculate the cost price if:

a) Sales are R4 500 and the profit mark-up is 50% on cost.
CP = SP * 100 / (100 + MU)
= 4 500 * 100 / (100 + 50)
= R3 000

b) Goods are sold for R3 000 at a profit mark-up of 60% on cost.

CP = SP * 100 / (100 + MU)
= 3 000 * 100 / (100 + 60)
= R1 875

3. Calculate the gross profit if a business:

a) Purchases 10 T-Shirts for R30 each and sells them for R50 each.
Profit = Selling price – Cost price
= (10 T-shirts * R50) – (10 T-shirts * R30)
= R500 – R300
= R200

b) Purchases fruits and vegetables for R250 and sells them for R600.
Profit = Selling price – Cost price
= R500 – R250
= R250

37
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 5.7 SB page 62

MJ Meyer started a new business MJM Traders on 1 March 20.1.

Round off amounts to the nearest rand.

Use the information below to enter the transactions into the General Ledger accounts.

TRANSACTIONS FOR MARCH 20.1:

March 1 MJ Meyer deposited R233 000 into the current account of MJM
Traders as his capital contribution. Issued receipt no T01.

3 Paid rent by cheque no.20 to Nadia Properties, R2 700.

4 Goods sold for cash, R2 078.

5 Bought trading inventory for R533. paid by cheque no. 21.

12 Paid wages by cheque no 22, R3 000.

18 Paid Tata Motors with cheque no 23. R2 200 for repairs of owner’s private
vehicle and R5 000 for repairs of business’s delivery vehicle.

20 Issued cheque no 24 for R2 800 to Game for office furniture.

28 Commission income from C Matthews, R3 600. Issued receipt no. T03.

29 Paid wages, cheque no 25, R3 500.

Paid S Murray, R3 434 for insurance, by electronic transfer.

CAPITAL B1

Date Details Fol. Amount Date Details Fol. Amount

20.1
March 1 Bank 233 000

DRAWINGS B2

Date Details Fol. Amount Date Details Fol. Amount

20.1
March 18 Bank 2 200

FURNITURE B3

Date Details Fol. Amount Date Details Fol. Amount

20.1
March 20 Bank 2 800

38
 Module 5: Accounting entries of a trading concern and trial balance

Activity 5.7 (continued)

BANK B4

Date Details Fol. Amount Date Details Fol. Amount

20.1 20.1
March 1 Capital 233 000 March 3 Rent expense 2 700

4 Sales 2 078 5 Purchases 533

28 Commission 3 600 12 Wages 3 000

income
18 Drawings 2 200

Repairs 5 000

20 Furniture 2 800

29 Wages 3 500

Insurance 3 434

SALES N1

Date Details Fol. Amount Date Details Fol. Amount

20.1
March 4 Bank 2 078

PURCHASES N2

Date Details Fol. Amount Date Details Fol. Amount

20.1
March 5 Bank 533

COMMISSION INCOME N3

Date Details Fol. Amount Date Details Fol. Amount

20.1
March 28 Bank 2 800

RENT EXPENSE N4

Date Details Fol. Amount Date Details Fol. Amount

20.1
March 3 Bank 2 700

REPAIRS N5

Date Details Fol. Amount Date Details Fol. Amount

20.1
March 18 Bank 5 000

INSURANCE N6

Date Details Fol. Amount Date Details Fol. Amount

20.1
March 29 Bank 3 434

39
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 5.7 (continued)

WAGES N7

Date Details Fol. Amount Date Details Fol. Amount

20.1
March 12 Bank 3 000
29 Bank 3 500

Activity 5.8 SB page 64

Prepare the Trial Balance of Faried Ltd from the balances and totals given for the month ending
31 May 20.1. Insert folio numbers.

Capital R 110 000 Telephone R 6 291

Rent expense R 799 Petty cash R 500
Fixed deposit R 30 000 Wages R 3 500
Current income R 320 Cost of goods sold R 26 514
Inventory R 13 380 Bank (Dr) R 38 170
Drawings R 2 520 Trade Payables Control R 4 354
Trade Receivables Control R 18 500 Sales R 48 000
Vehicles R 22 500

Trial Balance of Faried LTD for the month ending 31 May 20.1

Fol. Debit Credit

Balance Sheet accounts section
Capital B1 110 000
Drawings B2 2 520
Vehicles B3 22 500
Fixed Deposit B4 30 000
Trade Receivables Control B5 18 500
Inventory B6 13 380
Bank B7 38 170
Petty cash B8 500
Trade Payables Control B9 4 354
Nominal accounts section
Sales N1 48 000
Current income N2 320
Cost of sales N3 26 514
Telephone N4 6 291
Wages N5 3 500
Rent expense N6 799

162 674 162 674

40
 Module 5: Accounting entries of a trading concern and trial balance

Activity 5.9 SB page 64

The following incorrect Trial Balance appeared in the books of ARE Traders at the end of
December 20.1. Balances and totals appear on the wrong sides of the Trial Balance and in the
wrong places.

Required
Rewrite the Trial Balance using the correct division and put the totals and balances on the
correct sides to balance the Trial Balance.

Trial Balance as at 31 December 20.1

Fol. Debit Credit

Balance Sheet accounts section

Capital B1 300 000

Drawings B2 14 920

Land and buildings B3 73 450

Vehicles B4 32 460

Inventory B5 45 000

Trade Receivables Control B6 23 230

Bank B7 13 859

Petty cash B8 300

Trade Payables Control B9 34 940

Nominal accounts section

Sales N1 93 420

Cost of goods sold N2 53 382

Rent income N3 32 000

Discount received N4 3 110

Salaries and wages N5 98 760

Fuel N6 31 030

Maintenance and repairs N7 43 587

Advertising N8 3 490

Cell phone charges N9 21 300

Insurance N10 3 208

Discount allowed N11 2 000

Stationery N12 3 494

463 470 463 470

41
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 5.9 (continued)

Trial Balance of ARE Traders as at 31 December 20.1

Fol. Debit Credit

Balance Sheet accounts section

Capital B1 300 000

Drawings B2 14 920

Land and buildings B3 73 450

Vehicles B4 32 460

Inventory B5 45 000

Trade Receivables Control B6 23 230

Bank B7 13 859

Petty cash B8 300

Trade Payables Control B9 34 940

Nominal accounts section

Sales N1 93 420

Cost of goods sold N2 53 382

Rent income N3 32 000

Discount received N4 3 110

Salaries and wages N5 98 760

Fuel N6 31 030

Maintenance and repairs N7 43 587

Advertising N8 3 490

Cell phone charges N9 21 300

Insurance N10 3 208

Discount allowed N11 2 000

Stationery N12 3 494

463 470 463 470

42
 Module 5: Accounting entries of a trading concern and trial balance

Activity 5.10 SB page 66

The following Trial Balance has been provided by Rest-Well Traders.

Required
Open the accounts in the General Ledger from the given Trial Balance.

Trial Balance of Rest-Well Traders as at 1 December 20.1

DEBIT CREDIT
Financial Position Section
Capital B1 638 600 00
Drawings B2 52 600 00
Land and Buildings B3 260 000 00
Vehicles B4 208 400 00
Equipment B5 110 500 00
Inventory B6 53 400 00
Trade Receivables Control B7 55 100 00
Bank B8 63 200 00
Petty Cash B9 900 00
Float B10 600 00
Loan B11 20 000 00
Trade Payables Control B12 15 800 00
Nominal Accounts Section
Sales N1 620 400 00
Cost of goods sold N2 382 900 00
Rent income N3 15 000 00
Telephone N4 4 100 00
Internet fees N5 24 900 00
Wages and salaries N6 75 200 00
Water and Electricity N7 36 000 00
Cleaning cost N8 1 600 00
Fuel N9 5 100 00
Commission income N10 24 700 00
1 334 500 00 1 334 500 00

43
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 5.10 (continued)

Capital B1

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Balance b/d 638 600
Dec

Drawings B2

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Balance b/d 52 600
Dec

Land and Buildings B3

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Balance b/d 260 000
Dec

Vehicles B4

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Balance b/d 208 400
Dec

Equipment B5

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Balance b/d 110 500
Dec

Inventory B6

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Balance b/d 53 400
Dec

Trade Receivables Control B7

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Balance b/d 55 100
Dec

44
 Module 5: Accounting entries of a trading concern and trial balance

Activity 5.10 (continued)

Bank B8

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Balance b/d 63 200
Dec

Petty Cash B9

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Balance b/d 900
Dec

Float B10

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Balance b/d 600
Dec

Loan B11

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Balance b/d 20 00
Dec

Trade Payables Control B12

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Balance b/d 15 800
Dec

Sales N1

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Total b/d 620 400
Dec

Cost of goods sold N2

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Total b/d 382 900
Dec

45
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 5.10 (continued)

Rent income N3

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Total b/d 620 400
Dec

Telephone N4

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Total b/d 4 100
Dec

Internet fees N5

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Total b/d 24 900
Dec

Wages and salaries N6

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Total b/d 75 200
Dec

Water and electricity N7

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Total b/d 36 000
Dec

Cleaning cost N8

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Total b/d 1 600
Dec

Fuel N9

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Total b/d 36 000
Dec

46
 Module 5: Accounting entries of a trading concern and trial balance

Activity 5.10 (continued)

Commission income N10

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Total b/d 24 700
Dec

Summative Assessment SB page 67

Information
Cola is working as the bookkeeper of Ola Stationers wholesaler that specialises in selling
stationery as their trading inventory .

You have been approached by Cola to assist in posting the source documents to the accounts
in the General Ledger and construct a Trial Balance for the month end 28 February 20.1.

SOURCE DOCUMENTS OF OLA STATIONERS FOR THE MONTH OF FEBRUARY 20.1

OLA STATIONERS
P.O. Box 15
GOLDEN ACRE
1500
CASH TAX INVOICE (Duplicate)

VAT NO.: 987654 IN001

11/02/20.1

To: S. Sibongile
PO Box 343
Newcastle

Quantity Description Price Amount

4 PACKET OF TRANSPARENCIES R12,60 R50,40

8 WRITER NOTE PADS R9,00 R72,00
3 A4 BOOKS R21,60 R64,80

R187,20

47
 N4 Introductory Financial Accounting | Lecturer Guide

Summative Assessment (continued)

OLA STATIONERS
P.O. Box 15
GOLDEN ACRE
1500
CASH TAX INVOICE (Duplicate)

VAT NO.: 987654 IN002

13/02/20.1

To: M. Naidoo
PO Box 313
Durban

Quantity Description Price Amount

6 10 COLOURING PENCILS R16,00 R96,00

R96,00

OLA STATIONERS
P.O. Box 15
GOLDEN ACRE
1500
CASH TAX INVOICE (Duplicate)

VAT NO.: 987654 IN003

23/02/20.1

To: Cash

Quantity Description Price Amount

1 CALCULATOR R15,20 R15,20

1 20 POCKET FILE R21,60 R21,60

R36,80

48
 Module 5: Accounting entries of a trading concern and trial balance

Summative Assessment (continued)

OLA STATIONERS
P.O. Box 15
GOLDEN ACRE
1500
CASH TAX INVOICE (Duplicate)

VAT NO.: 987654 IN004

28/02/20.1

To: Cash

Quantity Description Price Amount

2 4 KOKI PENS R12,60 R25,20

5 PLASTIC SLEEVES R9,00 R45,00

R70,20

OLA STATIONERS
P.O. Box 15
GOLDEN ACRE
1500
RECEIPT
(Duplicate)

No. H01

Received from: K. Heyes 01/02/20.1

Amount: Three Hundred Thousand rand R300 000 00

Nil cents

For: Capital contribution

With thanks: Terry

49
 N4 Introductory Financial Accounting | Lecturer Guide

Summative Assessment (continued)

OLA STATIONERS
P.O. Box 15
GOLDEN ACRE
1500
RECEIPT
(Duplicate)

No. H02

Received from: L. Kruger 01/02/20.1

Amount: One thousand six hundred and ten rand R1 610 00

Nil cents

For: Rent
With thanks: Terry

OLA STATIONERS
P.O. Box 15
GOLDEN ACRE
1500
RECEIPT (Duplicate)

No. H03

Received from: S. Sibongile 25/02/20.1

Amount: One hundred rand R100 00

Nil cents

For: Payment on account

With thanks: Terry

OLA STATIONERS
P.O. Box 15
GOLDEN ACRE
1500
RECEIPT (Duplicate)

No. H04

Received from: M. Naidoo 28/02/20.1

Amount: Eighty rand R80 00
Nil cents
For: Settlement of account

Discount: R0,00

With thanks: Terry

50
 Module 5: Accounting entries of a trading concern and trial balance

Summative Assessment (continued)

Cheque counterfoils:

Doc. no. 091 Doc. no. 092 Doc. no. 093

Date 02/02/20.1 Date 03/02/20.1 Date 05/02/20.1

For Advertisement For Insurance For Cabinet

To M L Marketing To Moment To Malibu CC

Amount R1 400 Amount R839 Amount R732

Doc. no. 094 Doc. no. 095 Doc. no. 096

Date 10/02/20.1 Date 10/02/20.1 Date 18/02/20.1

For Wages For Own use For Telephone

To Cash To Cash To Cell EE

Amount R1 600 Amount R100 Amount R330

Doc. no. 097 Doc. no. 098 Doc. no. 099

Date 25/02/20.1 Date 26/02/20.1 Date 26/02/20.1

For Trading For Salaries For Wages

inventory

To Metro Suppliers To S Lever To Cash

Amount R1 054 Amount R2 660 Amount R500

Doc. no. 100

Date 28/02/20.1

For Stationery
Equipment

To Typec
Suppliers

Amount R730
Stationery;
R2 900
Equipment

51
 N4 Introductory Financial Accounting | Lecturer Guide

Summative Assessment (continued)

THE GENERAL LEDGER OF OLA STATIONERS FOR FEB 20.1

CAPITAL B1

Date Details Fol. Amount Date Details Fol. Amount

20.1
Feb 01 Bank 300 000

DRAWINGS B2

Date Details Fol. Amount Date Details Fol. Amount

20.1
Feb 10 Bank 100

FURNITURE & EQUIPMENT B3

Date Details Fol. Amount Date Details Fol. Amount

20.1
Feb 05 Bank 732
28 Bank 2 900

TRADE RECEIVABLES CONTROL B4

Date Details Fol. Amount Date Details Fol. Amount

20.1
Feb 25 Bank 100

28 Bank 80

BANK B5

Date Details Fol. Amount Date Details Fol. Amount

20.1 20.1
Feb 01 Capital 300 000 00 Feb 02 Advertising 1 400 00
Rent income 1 610 00 03 Insurance 839 00

11 Sales 187 20 05 Furniture 732 00

13 Sales 96 00 10 Wages 1 600 00

23 Sales 36 80 10 Drawings 100 00

25 Trade receivables 100 00 18 Telephone 330 00

control
28 Sales 70 20 25 Purchases 1 054 00

Trade receivables 80 00 26 Salaries 2 660 00

control
Wages 500 00

28 Stationery 730 00

Equipment 2 900 00

52
 Module 5: Accounting entries of a trading concern and trial balance

Summative Assessment (continued)

SALES N1

Date Details Fol. Amount Date Details Fol. Amount

20.1
Feb 11 Bank 187.20
13 Bank 96.00

23 Bank 36.80

28 Bank 70.20

PURCHASES N2

Date Details Fol. Amount Date Details Fol. Amount

20.1
Feb 25 Bank 1 054

RENT INCOME N3

Date Details Fol. Amount Date Details Fol. Amount

20.1
Feb 01 Bank 1 610

ADVERTISING N4

Date Details Fol. Amount Date Details Fol. Amount

20.1
Feb 4 Bank 1 400

INSURANCE N5

Date Details Fol. Amount Date Details Fol. Amount

20.1
Feb 3 Bank 839

WAGES N6

Date Details Fol. Amount Date Details Fol. Amount

20.1
Feb 10 Bank 1 600
26 Bank 500

SALARIES N7

Date Details Fol. Amount Date Details Fol. Amount

20.1
Feb 26 Bank 2 660

53
 N4 Introductory Financial Accounting | Lecturer Guide

Summative Assessment (continued)

STATIONERY N8

Date Details Fol. Amount Date Details Fol. Amount

20.1
Feb 28 Bank 730

TELEPHONE N9

Date Details Fol. Amount Date Details Fol. Amount

20.1
Feb 18 Bank 330

Fol. Debit Credit

Balance Sheet accounts section

Capital B1 300 000 00

Drawings B2 100 00

Furniture and equipment B3 3 632 00

Bank B4 289 335 20

Nominal accounts section

Sales N1 390 20

Purchases N2 1 054 00

Rent income N3 1 610 00

Advertising N4 1 400 00

Insurance N5 839 00

Wages N6 2 100 00

Salaries N7 2 660 00

Stationery N8 730 00

Telephone N9 330 00

Commission income N10 180 00

302 180 20 302 180 20

54
 Module 6
Trading Organisation: Subsidiary Journals
and Posting to the General Ledger

After completing this module, students will be able to:

• Identify the relationship between the Cash Receipts Journal and the debit side of the bank.
• Know that the purpose and use of the CRJ is to make a summary of all cash transactions.
• Open the appropriate analysis columns in the Cash Receipts Journal.
• Write down all cash receipts from the source documents (duplicate receipts, cash register roll
and duplicate deposit slips), cash received for sales, other income and cash received from
debtors.
• Use folio references to the ledger.
• Cross balance the Cash Receipts Journal.
• Post the Cash Receipts Journal to the General Ledger.
• Identify the relation between the the Cash Payment Journal and the credit side of the bank
account.
• The purpose and use of the CPJ to make a summary of all cheque payments.
• Open appropriate analysis columns.
• Write down all the cash payments from the source documents (credit and debit card).
• Use folio references to the ledger.
• Cross balance the Cash Payment Journal.
• Post the Cash Payment Journal to the General Ledger.
• Explain the reasons for using the analysis Cash Book as a book of first entry.
• Identify the relationship between the Cash Book and other cash journals.
• Open appropriate analysis columns.
• Balance the analysis Cash Book.
• Post to the General Ledger.
• Explain the purpose of Petty Cash Account.
• Complete petty cash vouchers.
• Open the Petty Cash Journal with analysis columns.
• Enter payments as indicated in Contents column from petty cash vouchers into Petty Cash
Journal.
• Balance the Petty Cash Journal and post the amounts to the Petty Cash account and post to
the ledger accounts.
• Balance the Petty Cash account according to the imprest system and the system of varying
balances.
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 6.1 SB page 75

You are the bookkeeper of Walco Traders who completed and sorted all the source documents
for the month of February 20.1. Walco Traders sells cars.

Required
Use all your information and record the transactions into the Cash Receipts Journal. Total the
columns in the CRJ. Walco Traders uses the continuous inventory system.

Transactions – February 20.1

01 The owner, Kabelo Walco, gave a cheque of R70 000 as additional capital contribution.
Receipt no. 3 was issued to him.
05 Sold a car cash for R25 000 (25% mark-up on cost).
06 Received R2 900 from a tenant N Willemse for rent. Issued receipt no. 4
07 Received R100 000 electronically from AB Bank for a loan made to develop a new car.
Receipt no. 5 was issued.
10 Sold a car, cost price R40 000 (25% mark-up on cost).

Cash Receipts Journal of Walco Traders – February 20.1 CRJ1

Doc. Day Details Analysis Bank Sales Trade Sundry accounts

No. of and other
receipts receivables Amount Fol. Details

3 1 Kabelo Walco 70 000 70 000 70 000 Capital

CRR 5 Cash sales 25 000 25 000 25 000 20 000

4 6 N Willemse 2 900 2 900 2 900 Rent income

5 7 AB Bank 100 000 100 000 100 000 Loan: AB Bank

CRR 10 Cash sales 40 000 40 000 40 000 32 000

65 000 52 000 172 900

56
 Module 6: Trading Organisation: Subsidiary Journals and Posting to the General Ledger

Activity 6.2 SB page 75

The following transactions must be recorded in the Cash Receipts Journal of Stormers Traders.
Stormers Traders uses the periodic inventory system.

Required
Total the columns in the CRJ.

Transactions April 20.1

11 Received a cheque from Dixy Bank for the fixed deposit of R50 000 that matured, issued
receipt 13.
16 Issued receipt 14 for R5 000 received from a tenant, S Burger, for rent of a house.
19 The bank statement received from Dixy Bank showed interest credited by the bank on the
favourable balance on the current account, R85.
20 Received a cheque for R900 from B Habana, a debtor. Issued receipt 15.
25 Received a donation from R1 000 from Cheetahs Traders to help with the loss of damaged
goods due to a water pipe burst. Issued receipt 16.

Cash Receipts Journal of Stormers Traders – April 20.1 CRJ1

Doc. Day Details Analysis Bank Sales Trade Sundry accounts

No. of and other
receipts receivables Amount Fol. Details

13 11 Dixy Bank 50 000 50 000 50 000 Fixed deposit:

Dixy Bank
14 16 S Burger 5 000 5 000 5 000 Rent received

B/S 19 Dixy Bank 85 85 85 Interest income

15 20 B Habana 900 900 900

16 25 Cheetahs Donation
Traders 1 000 1 000 1 000 income
56 985 900 56 085

57
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 6.3 SB page 75

C Karelse is the owner of Ralaks Traders. The business uses the periodic inventory system.

Required
Use the information below to enter the transactions in the Cash Receipts Journal. Close off the
journals on 30 September 20.1 and post to the General Ledger.

Source documents for September 20.1

Cash register totals:

Day Document Transaction Amount

Number
R c
6 CRR1 Cash sales 840 00
15 CRR2 Cash sales 1 450 00
29 CRR3 Cash sales 5 236 00

Duplicates of receipts issued:

Day Document Transaction Amount

Number
R c

4 VAK01 The owner, Caranina Karelse, deposited a cheque into the current
bank account of the business as her capital contribution. 145 000 00

6 VAK02 Issue receipt to Neno K for rent. 6 400 00

30 VAK03 Received cheque from Ashley for payment on his account. 3 000 00

Cash Receipts Journal of Ralaks Traders – September 20.1 CRJ1

Doc. Day Details Analysis Bank Sales Trade Sundry accounts

No. of Receivables
receipts Control Amount Fol. Details

VAK01 4 C Karelse 145 000 145 000 145 000 Capital

CRR1 6 Cash sales 840 840

VAK02 Neno K 6 400 7 240 6 400 Rent income

CRR2 15 Cash sales 1 450 1 450 1450

CRR3 29 Cash sales 5 236 5 236 5 236

VAK03 30 Ashley 3 000 3 000 3 000

161 926 7 526 3 000 151 400

B3 N1 B4

58
 Module 6: Trading Organisation: Subsidiary Journals and Posting to the General Ledger

General Ledger of Ralaks Traders

Capital B1

Date Details Fol. Amount Date Details Fol. Amount

20.1 4 Bank CRJ 145 000
Sep

Bank B3

Date Details Fol. Amount Date Details Fol. Amount

20.1 30 Total receipts CPJ 161 926
Sep

Trade and other receivables B4

Date Details Fol. Amount Date Details Fol. Amount

20.1 30 Bank CRJ 3 000
Sep

Sales N1

Date Details Fol. Amount Date Details Fol. Amount

20.1 30 Bank CRJ 7 526
Sep

Rent income N2

Date Details Fol. Amount Date Details Fol. Amount

20.1 6 Bank CRJ 6 400
Sep

59
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 6.4 SB page 79

Required
1. Complete all the transactions below in the Cash Payments Journal of Matthews Traders for
October 20.1. Provide for the following columns:
• Bank
• Wages and Salaries
• Trade Payables Control
• Sundry accounts.
2. Close off the journal and post to the General Ledger.

Transactions: October 20.1.

01 Bought land and buildings from Max and paid per cheque R15 000.
03 Paid Service Centre R5 000 for the fixing of one of the machines.
08 Paid salaries to the workers with a cash cheque R3 000.
10 Paid the interest on loan at 10% on R50 000 to FNB.
12 Gave a cash donation to the Hospice of R600.
15 Paid the creditors R700 per cheque.
18 Bought stationery from Waltons at R1 500 minus 10% discount and paid per cheque.
18 Paid the salaries to Reed R1 500.
20 Paid the telephone to the Postmaster of R500.
25 Bought a vehicle from Toyota and paid per cheque R10 000.
30 Paid Makro R100 for equipment bought.

Cash Payments Journal of Matthews Traders – October 20.1 CRJ1

Doc. Day Payee Fol. Bank Purchases Trade Sundry Accounts

No. and
other Amount Fol. Details
payables
01 Max 15 000 15 000 B4 Land and buildings

03 Service Centre 5 000 5 000 B6 Repairs

08 Cash 3 000 3 000

10 FNB 417 417 B5 Interest on loan

12 Hospice 600 600 B4 Donation income

006 15 (Creditors) 700 700

007 18 Waltons 1 350 1 350 N7 Stationery

008 Reed 1 500 1 500

009 20 Postmaster 500 500 N8 Telephone

010 25 Toyota 10 000 10 000 B5 Vehicles

011 30 Makro 100 100 B6 Equipment

38 167 4 500 700 32 967

B3 N9 B7

60
 Module 6: Trading Organisation: Subsidiary Journals and Posting to the General Ledger

Activity 6.4 (continued)

General Ledger of Matthews Traders
Bank B3
Date Details Fol. Amount Date Details Fol. Amount
20.1 31 Total Payments CPJ 38 167
Oct

Land and Buildings B4

Date Details Fol. Amount Date Details Fol. Amount

20.1 01 Bank CPJ 15 000
Oct

Vehicles B5

Date Details Fol. Amount Date Details Fol. Amount

20 25 Bank CPJ 10 000
Oct

Equipment B6

Date Details Fol. Amount Date Details Fol. Amount

20.1 31 Bank CPJ 100
Oct

Trade and other payables B7

Date Details Fol. Amount Date Details Fol. Amount
20.1 31 Bank CPJ 700
Oct

Donation income N4

Date Details Fol. Amount Date Details Fol. Amount

20.1 31 Bank CPJ 600
Oct

Interest on loan N5

Date Details Fol. Amount Date Details Fol. Amount

20.1 31 Bank CPJ 417
Oct

61
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 6.4 (continued)

Repairs N6
Date Details Fol. Amount Date Details Fol. Amount
20.1 31 Bank CPJ 5 000
Oct

Stationery N7

Date Details Fol. Amount Date Details Fol. Amount

20.1 31 Bank CPJ 1 350
Oct

Telephone N8

Date Details Fol. Amount Date Details Fol. Amount

20.1 31 Bank CPJ 500
Oct

Purchases N9

Date Details Fol. Amount Date Details Fol. Amount

20.1 31 Bank CPJ 4 500
Oct

62
 Module 6: Trading Organisation: Subsidiary Journals and Posting to the General Ledger

Activity 6.5 SB page 80

C Karelse is the owner of Ralaks Traders. The business uses the continuous inventory system
and a mark-up of 100% on cost price.

Use the information below to enter the transactions in the Cash Payments Journal then close
off the Journals on 30 September 20.1. and post to the General Ledger.

Day Document Transaction Amount

number
R c
1 221 To Telkom for the telephone account. 200 00

5 222 To The Advertiser for advertisement. 250 00

15 223 Cash to pay wages. 1 500 00

23 224 To Vawdas Suppliers for the purchase of merchandise. 3 240 00

30 225 To Homesure Properties for the rent of the building. 1 500 00

226 Owner for private use. 800 00

Cash Payment Journal of Ralaks Traders – September 20.1

Doc. Day Payee Bank Wages Creditors Sundry Accounts

No. Control
Amount Fol. Details
221 1 Telkom 200 200 N7 Telephone

222 5 The Advertiser 250 250 N4 Advertisement

223 15 Cash 1 500 1 500

224 23 Vawdas 3 240 3 240 N5 Purchases

Suppliers
225 30 Homesure 1 500 1 500 N6 Rent expense
Properties
226 Cash 800 800 B2 Drawings

7 490 1 500 0 5 990

B3 N8

63
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 6.5 (continued)

General Ledger of Ralaks Traders

Drawings B2

Date Details Fol. Amount Date Details Fol. Amount

20.1 30 Bank CPJ 800
Sep

Bank B3

Date Details Fol. Amount Date Details Fol. Amount

20.1 30 Total CPJ 7 490
Sep Payments

Advertising N4

Date Details Fol. Amount Date Details Fol. Amount

20.1 5 Bank CPJ 250
Sep

Purchases N5

Date Details Fol. Amount Date Details Fol. Amount

20.1 30 Bank CPJ 3 240
Sep

Rent Expense N6

Date Details Fol. Amount Date Details Fol. Amount

20.1 30 Bank CPJ 1 500
Sep

Telephone N7

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Bank CPJ 200
Sep

Wages N8

Date Details Fol. Amount Date Details Fol. Amount

20.1 30 Bank CPJ 1 500
Sep

64
 Module 6: Trading Organisation: Subsidiary Journals and Posting to the General Ledger

Activity 6.6 SB page 80

Required
1. Complete the transactions below in the Cash Payments Journal of Liam Traders for April 20.1.
Provide for the following columns: • Bank
• Purchases
• Trade Payables Control
• Sundry accounts.
2. Close off the journals and post to the General Ledger.

Transactions: April 20.1.

02 Bought trading inventory from Makro and paid per cheque R5 000 (A1).
03 Paid a creditor, M Samuel R350 per cheque (A2).
05 Paid the Postmaster R360 for the telephone account.
10 Paid the salaries to Ivan by cheque R306.
11 Made a cash donation to Anne’s Toddlers Creche for R960.
18 Paid the interest on loan to Standard Bank R450.
19 Rent a machine for the day from Hiring Service R125.
25 Repaired one of the computers and paid per cheque to Cash Computers R3 000.
27 Paid creditor R Wax R550.

Cash Payments Journal of Liam Traders – April 20.1

Doc. Day Payee Bank Purchases Creditors Sundry Accounts

No. Control
Amount Fol. Details

A1 02 Makro 5 000 5 000

A2 03 M Samuel 350 350
A3 05 Postmaster 360 360 N10 Telephone
A4 10 Ivan 306 306 N9 Salaries
A5 11 Anne's Toddlers 960 960 N4 Donation
Creche income
A6 18 Standard Bank 450 450 N5 Interest on loan
A7 19 Hiring Service 125 125 N7 Rent expense
A8 25 Cash Computers 3 000 3 000 N8 Repairs
A9 27 R Wax 550 550
11 101 5 000 900 5 201
B3 N6 B7

65
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 6.6 (continued)

General Ledger of Liam Traders
Bank B3
Date Details Fol. Amount Date Details Fol. Amount
20.1 30 Total CPJ 11 101
Apr Payments

Trade and other payables B7

Date Details Fol. Amount Date Details Fol. Amount

20.1 30 Bank CPJ 900
Apr

Donation Income N4

Date Details Fol. Amount Date Details Fol. Amount

20.1 11 Bank CPJ 960
Apr

Interest on loan N5

Date Details Fol. Amount Date Details Fol. Amount

20.1 18 Bank CPJ 450
Apr

Purchases N6

Date Details Fol. Amount Date Details Fol. Amount

20.1 30 Bank CPJ 5 000
Apr

Rent Expense N7

Date Details Fol. Amount Date Details Fol. Amount

20.1 19 Bank CPJ 125
Apr

66
 Module 6: Trading Organisation: Subsidiary Journals and Posting to the General Ledger

Repairs N8

Date Details Fol. Amount Date Details Fol. Amount

20.1 25 Bank CPJ 3 000
Apr

Salaries N9

Date Details Fol. Amount Date Details Fol. Amount

20.1 10 Bank CPJ 306
Apr

Telephone N10

Date Details Fol. Amount Date Details Fol. Amount

20.1 5 Bank CPJ 360
Apr

67
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 6.7 SB page 87

Gershwin Vergotine started a new business GV Traders on 1 March 20.1.
The business uses a continuous system and a mark up of 100% on cost price.
Round off amounts to the nearest rand.

Required
Use the information below to enter the transactions in the following subsidiary journals and
General Ledger:

1. Cash Receipts Journal

2. Cash Payments Journal
3. Close of the journals and post to the General Ledger.

Transactions for March 20.1:

March 1 Gershwin Vergotine deposited R233 000 into the current account of GV Traders
as his capital contribution. Issued receipt no. T01.
3 Paid rent by cheque no. 20 to Chantal Properties, R2 700.
4 Goods sold for cash, R2 078.
5 Bought trading inventory bought at an auction for R533. Paid by cheque no. 21.
12 Issue receipt T02 to Layken for R250. Allowed her R20 discount.
15 Paid wages by cheque no. 22, R3 000.
18 Paid Wincina Motors with cheque no. 23; R2 200 for repairs of owner’s private
vehicle and R5 000 for repairs of business’s delivery vehicle.
20 Issued cheque no. 24 for R2 800 to Game in full settlement of our account of
R3 899.
28 Rent received from Reynold Matthews, R3 600. Issued receipt no. T03.
29 Paid wages, cheque no. 25, R3 500.
31 Paid Caren-Lee Ltd. , R3 434 for insurance, by electronic transfer.

Cash Receipts Journal of GV Traders – March 20.1 CRJ1

Doc. Day Details Analysis Bank Sales Debtor’s Sundry account

No. of control
receipts Amount Fol. Details

T01 1 G Vergotine 233 000 233 000 233 000 B1 Capital

CRR 4 Cash sales 2 078 2 078 2 078

T02 12 Layken 250 250 250

T03 28 R Matthews 3 600 3 600 3 600 N2 Rent received

238 928 2 078 250 236 600

B3 N1 B6

68
 Module 6: Trading Organisation: Subsidiary Journals and Posting to the General Ledger

Activity 6.7 (continued)

Cash Payments Journal of GV Traders – March 20.1

Doc. Day Payee Bank Wages Trade Sundry Accounts

No. and other
payables Amount Fol. Details

20 3 Chantal Properties 2 700 2 700 N5 Rent expense

21 5 (Auction) 533 533 N4 Purchases

22 15 Cash 3 000 3 000

23 18 Wincina Motors 7 200 2 200 B2 Drawings

5 000 N6 Repairs

24 20 Game 2 800 2 800

25 29 Cash 3 500 3 500

EFT 31 Care-Lee Ltd 3 434 3 434 N3 Insurance

23 167 6 500 2 800 13 867

B3 N7 B7

General Ledger of GV Traders

Capital B1

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Bank CRJ 233 000
Mar

Drawings B2

Date Details Fol. Amount Date Details Fol. Amount

20.1 30 Bank CPJ 2 200
Mar

Bank B3

Date Details Fol. Amount Date Details Fol. Amount

20.1 31 Total Receipts CRJ 238 928 20.1 31 Total CPJ 23 167
Mar Mar Payments

Trade and other receivables B6

Date Details Fol. Amount Date Details Fol. Amount

20.1 31 Bank CRJ 250
Mar

69
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 6.7 (continued)

Trade and other receivables B7

Date Details Fol. Amount Date Details Fol. Amount

20.1 31 Bank CPJ 2 800

Mar

Sales N1

Date Details Fol. Amount Date Details Fol. Amount

20.1 31 Bank CRJ 2 078

Mar

Rent Received N2

Date Details Fol. Amount Date Details Fol. Amount

20.1 28 Bank CRJ 3 600

Mar

Insurance N3

Date Details Fol. Amount Date Details Fol. Amount

20.1 31 Bank CPJ 3 434

Mar

Purchases N4

Date Details Fol. Amount Date Details Fol. Amount

20.1 5 Bank CPJ 533

Mar

Rent Expense N5

Date Details Fol. Amount Date Details Fol. Amount

20.1 3 Bank CPJ 2 700

Mar

70
 Module 6: Trading Organisation: Subsidiary Journals and Posting to the General Ledger

Activity 6.7 (continued)

Repairs N6

Date Details Fol. Amount Date Details Fol. Amount

20.1 18 Bank CPJ 5 000

Mar

Wages N7

Date Details Fol. Amount Date Details Fol. Amount

20.1 31 Cash payments CPJ 6 500

Mar

71
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 6.8 SB page 88

Required
You are requested by Getrude Vergotine, owner of TT-Sports, trading as a sport shop, to compile
the following for November 20.1:

1. Cash Receipts Journal

2. Cash Payments Journal
3. Post from Journals to General Ledger

NOTES:
1. The organisation operates on a profit mark-up of 331/3 on the cost price
2. Subsidiary journals must be closed off properly
3. Cash is deposited at the end of every day.

Transactions for November 20.1:

03 Send cheque 13 to Kallis & Co for R2 000 in settlement of the debt.
Sell goods to Rexton for R2 600 and issue receipt no. 21.
06 Draw a cheque 14 for R2 000 and pay wages.
Pay R1 200 by cheque to LM Plumbers for repairs.
08 Buy equipment from Builders for R1 694 and pay by cheque.
Cash a cheque for petty cash R400.
09 Received R2 000 from S Pollock in partial payment of his account.
10 Pay the City Council R900 for water and electricity and R300 for licenses, by cheque.
Cash sales to N Boje R5 400. Issue a receipt to him.
15 Receive a cheque from H Gibbs to settle his account, after 5% discount has been granted.
His account was R5 000.
21 Buy trading inventory by cheque from Metro, R2 000.
22 Getrude Vergotine inherits R70 000 from her father and decides to invest it in the
organisation. A receipt is issued to him.
28 Pay Vodacom R1 100 by cheque for the owner’s personal telephone account.

Cash Receipts Journal of TT-Sports – November 20.1 CRJ1

Doc. Day Details Analysis of Bank Sales Debtors Sundry accounts

No. receipts control
Amount Fol. Details

21 3 M Ntini 2 600 2 600 2 600

22 9 S Pollock 2 000 2 000 2 000

23 10 N Boje 5 400 5 400 5 400

24 15 H Gibbs 4 750 4 750 4 750

25 22 G Vergotine 70 000 70 000 70 000 B1 Capital

84 750 8 000 6 750 70 000

B3 N1 B6

72
 Module 6: Trading Organisation: Subsidiary Journals and Posting to the General Ledger

Activity 6.8 (continued)

Cash Payments Journal of TT-Sports – November 20.1 CRJ1

Doc. Day Payee Bank Wages Creditors Sundry Accounts

No. Control
Amount Fol. Details

13 3 Kallis & Co. 2 000 2 000

14 6 Cash 2 000 2 000

15 LM Plumbers 1 200 1 200 N5 Repairs

16 08 Kluseners 1 694 1 694 B4 Equipment

17 Cash 400 400 B8 Petty cash

18 10 City Council 1 200 900 N7 Water and electricity

300 N3 Licences

19 21 Metro 2 000 2 000 N4 Purchases

20 28 Vodacom 2 900 1 100 B2 Drawings

1 800 N6 Telephone
13 394 2 000 2 000 9 394

B3 N8 B7

General Ledger of TT-Sports

Capital B1

Date Details Fol. Amount Date Details Fol. Amount

20.1 22 Bank CRJ 70 000
Nov

Drawings B2

Date Details Fol. Amount Date Details Fol. Amount

20.1 28 Bank CPJ 1 100
Nov

Bank B3

Date Details Fol. Amount Date Details Fol. Amount

20.1 30 Total Receipts CRJ 84 750 20.1 30 Total CPJ 13 394
Nov Nov Payments

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 N4 Introductory Financial Accounting | Lecturer Guide

Activity 6.8 (continued)

Equipment B4

Date Details Fol. Amount Date Details Fol. Amount

20.1 6 Bank CPJ 1 694
Nov

Trade and other receivables B6

Date Details Fol. Amount Date Details Fol. Amount

20.1 30 Bank CRJ 6 750
Nov

Trade and other payables B7

Date Details Fol. Amount Date Details Fol. Amount

20.1 30 Bank CPJ 2 000
Nov

Petty Cash Control B8

Date Details Fol. Amount Date Details Fol. Amount

20.1 8 Bank CPJ 400
Nov

Sales N1

Date Details Fol. Amount Date Details Fol. Amount

20.1 30 Bank CRJ 8 000
Nov

Licences N3
Date Details Fol. Amount Date Details Fol. Amount
20.1 10 Bank CPJ 300
Nov

Purchases N4

Date Details Fol. Amount Date Details Fol. Amount

20.1 21 Bank CPJ 2 000
Nov

74
 Module 6: Trading Organisation: Subsidiary Journals and Posting to the General Ledger

Activity 6.8 (continued)

Repairs N5

Date Details Fol. Amount Date Details Fol. Amount

20.1 6 Bank CPJ 1 200
Nov

Telephone N6

Date Details Fol. Amount Date Details Fol. Amount

20.1 28 Bank CPJ 1 800
Nov

Water and Electricity N7

Date Details Fol. Amount Date Details Fol. Amount

20.1 10 Bank CPJ 900
Nov

75
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 6.9 SB page 91

The following transactions took place during April 20.1.

Required
1. Complete the Cash Book of Digital Data Services for April 20.1.
2. On 1 April the Bank had a favourable balance of R8 900. Make provision for the following
columns in the Cash Book:
Debit side: Services Rendered and Sundry accounts; Credit side: Wages, Cleaning materials

Transactions for April 20.1

03 The owner, C Homer, increased his investment in the business by depositing R7 500 into
the business bank account (receipt no. 26)
05 Bought a computer for office use from Best Comps Services Ltd, and wrote them a cheque
for R6 300. (CZ345)
07 Fees for services rendered were collected and banked, R3 921. Received a R350 cheque
from Miss Huberd for rent of floor space. Sent a cheque to Clean Suppliers to pay for
cleaning materials, R575 Paid the cleaner wages after cashing a cheque R360.
R Aviary was issued with a receipt for R2 576.00 when she paid for work completed for her.
10 Wrote out a cheque to Paper Suppliers for printing paper bought R540
Drew R710 cheque to pay the cleaner his wage and the rest was given to the owner for
personal use.
18 Fee income received of R1 070 for services was collected from a client A Mayers and was
banked accordingly.
26 The secretary C Smart was paid her salary by cheque R1 480.

Analysis Cash Book of Digital Data Services – April 2015

DEBIT RECEIPTS

Doc. Day Details Fol. Analysis of Bank Services Sundry Accounts

No. receipts rendered Amount Fol. Details
1 Balance 8 900 8 900 Balance

26 3 C Homer 7 500 7 500 7 500 Capital

27 7 Cash 3 921 3 921 3921

28 Miss Huberd 350 350 350 Rent income

29 R Aviary 2 576 2 576 2 576

30 18 A Mayer 1 070 1 070 1 070

24 317 7 567 16 750

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 Module 6: Trading Organisation: Subsidiary Journals and Posting to the General Ledger

Activity 6.9 (continued)

CREDIT PAYMENTS
Doc. Day Payee Fol. Bank Wages Cleaning Sundry Accounts
No. material
Amount Fol. Details

CZ345 5 Best Comps Services 6 300 6 300 Equipment

Ltd
CZ346 7 Clean Suppliers 575 575

CZ347 Cash 360 360

CZ348 10 Paper Suppliers 540 540 Stationery

CZ349 Cash 710 360 350 Drawings

CZ350 26 C Smart 1 480 1 480 Salary

30 Balance c/d 14 352 14 352 Balance

24 317 720 575 23 022

77
 N4 Introductory Financial Accounting | Lecturer Guide

Summative Assessment SB page 91

The following transactions took place during June 20.1.

Required
1. Complete the Cash Book of Buneneke General Dealers for June 20.1.
2. On 1 June the bank had a favourable balance of R15 430.
Make provision for the following columns in the Cash Book:
Debit side: Sales, Cost of Sales and Sundry accounts
Credit side: Trading Inventory and Wages

Transactions for June 20.1

07 Cash sales for the week amounted to R3 500 (cost of sales R2 000).
08 Bought trading inventory for R1500 by cheque from Spaza Dealers.
10 Received a loan from the bank (ABC Bank) for R10 000.
12 Bought equipment by cheque for R2 600 from Glendow Designs.
13 A cheque of R500 was cashed for the week’s wages.
15 R2000 was invested into a fixed deposit at PQR Bank.
20 Bank charges amounted to R45.
25 The owner withdrew R500 cash for personal use.
31 Paid interest of R250 on the loan.

Analysis Cash Book of Bunemeke General Dealers – June 20.1

DEBIT RECEIPTS

Doc. Day Details Fol. Analysis Bank Sales Cost of Sundry Accounts
No. of sales Amount Fol. Details
receipts
1 Balance 15 430 15 430 Balance
CRR 7 Cash sales 3 500 3 500 3 500 2 000
10 ABC Bank 10 000 10 000 10 000 Loan: ABC
Bank
28 930 3 500 2 000 25 430
1 Balance b/d 21 535 21 535 Balance
Jul

CREDIT PAYMENTS
Doc. Day Payee Fol. Bank Trading Wages Sundry Accounts
No. inventory
Amount Fol. Details

8 Spaza Dealers 1 500 1 500

12 Glendow Designs 2 600 2 600 Equipment
13 Cash 500 500
15 PQR Bank 2 000 2 000 Fixed deposit: PQR
Bank
20 (Bank) 45 45 Bank charges
25 Cash 500 500 Drawings
31 ABC Bank 250 250 Interest on loan
Balance c/d 21 535 21 535 Balance
28 930 1 500 500 26 930

78
 Module 6: Trading Organisation: Subsidiary Journals and Posting to the General Ledger

Activity 6.10 SB page 97

You are the Petty Cashier at Paul’s Bargain Bin. The business uses the petty cash imprest
system. The imprest amount is R600 monthly.

Required
1. Use the petty cash vouchers given below to prepare the Petty Cash Journal of Paul’s Bargain
Bin for July 20.1. Cast the Petty Cash Journal at the end of the month.
2. Complete the Petty Cash Imprest Voucher to request funds to restore the imprest amount.
3. Post only to the Petty Cash account in the General Ledger. Balance the account.
Note: Basic items like tea, coffee, milk and postage have a zero VAT rate.

Paul’s Bargain Bin Paul’s Bargain Bin

Voucher No. 12 Voucher No. 13
Date: 2 July 20.1 Date: 10 July 20.1
Bought from Pick and Pay Supermarket Bought from Post Office
Details Coffee R42,10 Details Postage Stamps R21,74
Tea R16,90
Milk R75,00
Subtotal R134,00 Subtotal R21,74
VAT at 15% R0,00 VAT at 15% R3,26
TOTAL R134,00 TOTAL R25,00
Received by Joan Rivers Received by Nia Manamela
Authorisation Peter Smith Authorisation Peter Smith

Paul’s Bargain Bin Paul’s Bargain Bin

Voucher No. 14 Voucher No. 15
Date: 18 July 20.1 Date: 21 July 20.1
Bought from Super Savers Bought from Welfare Organisation
Details Details Donation R50,00
Liquid hand soap R39,13

Subtotal R39,13 Subtotal R50,00

VAT at 15% R5,87 VAT at 15% R0
TOTAL R45,00 TOTAL R50,00
Received by Barry Mogatho Received by Anna Bosiou
Authorisation Peter Smith Authorisation Peter Smith

Paul’s Bargain Bin Paul’s Bargain Bin

Voucher No. 16 Voucher No. 17
Date: 22 July 20.1 Date: 25 July 20.1
Bought from Pick and Pay Supermarket Bought from Post office
Details Details Envelopes R58,26
Biscuits R35,73
Cool drink R84,26
Subtotal R119,99 Subtotal R58,26
VAT at 15% R18,01 VAT at 15% R8,74
TOTAL R138,00 TOTAL R67,00
Received by Nia Manamela Received by Barry Mogatho
Authorisation Peter Smith Authorisation Peter Smith

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 N4 Introductory Financial Accounting | Lecturer Guide

Activity 6.10 (continued)

Petty Cash Control B8

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Balance b/d 600 20.1 31 Total PCJ 459

Jul Jul payments
31 Bank CPJ 459 Balance c/d 600

1 059 1 059

Aug 1 Balance b/d 600

Petty Cash Journal of Pauls Bargain Bin – July 2008

Day Doc. Details Petty Staff Wages Postage & Sundry Fol. Details
Cash Expenses Stationery Account of sundry
accounts

2 12 Pick n Pay 134 00 134 00

10 13 Post Office 25 00 25 00

18 14 Supersavers 45 00 45 00

Welfare Donation
21 15 50 00 50 00
organisation income

23 16 Pick n Pay 138 00 138 00

25 17 Post Office 67 00 67 00

459 00 317 00 92 00 50 00

80
 Module 6: Trading Organisation: Subsidiary Journals and Posting to the General Ledger

Activity 6.11 SB page 98

Simon Adams owns a small finance business. His business, AS Finances, is registered as a
VAT vendor. The following petty cash transactions took place during February 20.1. All the
amounts are inclusive of VAT.

Required
Complete the Petty Cash Journal for AS Finances for February 20.1 and post to the General
Ledger.

DATE DETAILS PETTY CASH AMOUNT

VOUCHER NUMBER

01 Feb Bought envelopes from Webb Stationers 21 R55,00

05 Feb Bought milk from Spar 22 R45,00

08 Feb Paid wages for cleaning staff 23 R80,00

17 Feb Fuel for business car 24 R80,00

23 Feb Bought flowers for sick staff member 25 R90,00

28 Feb Paid Office Com for repair of computer 26 R65,00

Petty Cash Journal of AS Finances – February 20.1

Day Doc. Details Petty Staff Wages Postage & Sundry Account
Cash / Expenses Stationery
Total Amount Fol. Details

01 21 Webb 55 00 55 00
Stationers

05 22 Spar 45 00 45 00

08 23 Cleaning 80 00 80 00
staff

17 24 Fuel 80 00 80 00 N3 Fuel

23 25 Flowers 90 00 90 00

28 26 Office Com 65 00 65 00 N5 Repairs

415 00 135 00 80 00 55 00 145 00

N6 N7 N4

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 N4 Introductory Financial Accounting | Lecturer Guide

Activity 6.11 (continued)

Petty Cash Control B8

Date Details Fol. Amount Date Details Fol. Amount

20.1 31 Total PCJ 415

Jul payments

Fuel N3

Date Details Fol. Amount Date Details Fol. Amount

20.1 17 Petty cash PCJ 80

Jul

Postage and Stationery N4

Date Details Fol. Amount Date Details Fol. Amount

20.1 01 Petty cash PCJ 55

Jul

Repairs N5

Date Details Fol. Amount Date Details Fol. Amount

20.1 28 Petty cash PCJ 65

Jul

Staff Expenses N6

Date Details Fol. Amount Date Details Fol. Amount

20.1 31 Petty cash PCJ 135

Jul

Wages N7

Date Details Fol. Amount Date Details Fol. Amount

20.1 08 Petty cash PCJ 80

Jul

82
 Module 6: Trading Organisation: Subsidiary Journals and Posting to the General Ledger

Activity 6.12 SB page 98

You are requested to draft the Petty Cash Account for March 20.1 in the books of
The X-Factor. The following information was given:

1. An imprest amount of R1 000 is kept in the petty cash.

2. The balance of the petty cash account on 1 March 20.1 was R300.
3. On 1 March 20.1 you received an amount from the cashier to reimburse the imprest amount.
4. You received R600 from the cashier on 15 March 20.1.
5. The total of the petty cash payments amounted to R1 400 during March 20.1.
6. You received an amount from the chief cashier on 30 March 20.1 to reimburse the imprest
amount.

Date Details Fol. Amount Date Details Fol. Amount

20.1 20.1 Total payments PCJ 1 400

Balance b/d 300
Mar 1 Mar 31
1 Bank CPJ 700 Balance c/d 1 000

15 Bank CPJ 600

30 Bank CPJ 800

2 400 2 400

20 Balance b/d 1 000

Apr 1
14
Imprest amount = R1 000

Money in petty cash box = 300 + 700 + 600 = R1 600

Money taken out of petty cash box = R1 400

How much money left in petty cash box

= R1 600 – R1 400 = R200

Restore amount = R1 000 – R200 = R800

83
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 6.13 SB page 98

You are requested to draw up the Petty Cash Account for September 20.1 in the books of
C & L Mat.

The following information was provided:

1. An imprest amount of R600 is kept in the petty cash.
2. The balance of the petty cash account on 1 September 20.1 was R100.
3. On 1 September 20.1 you received an amount from the cashier to reimburse the imprest
amount.
4. You received R200 from the chief cashier on 15 September 20.1
5. The total of the petty cash payments amounted to R750 during September 20.1
6. You received an amount from the chief cashier on 31 September 20.1 to reimburse the
imprest amount.

Petty Cash ControlB8

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Balance b/d 100 20.1 31 Total PCJ 750

Sep Sep payments
1 Bank CPJ 500

15 Bank CRJ 200

30 Bank CRJ 550 Balance c/d 600

1 350 1 350

Oct 1 Balance b/d 600

Imprest amount = R600

Money in petty cash box = R100 + 500 + 200 = R800
Money taken out of petty cash box = R750
Money left in petty cash box = R800 – 750 = R50
Restore amount = R600 – 50 = R550

84
 Module 6: Trading Organisation: Subsidiary Journals and Posting to the General Ledger

Activity 6.14 SB page 99

You are requested to draft the Petty Cash Account for February 20.1 in the books of The Voice.

The following information was provided:

1. An imprest amount of R1 000 is kept in the petty cash.
2. The balance of the petty cash account on 1 February 20.1 was R200.
3. On 1 February 20.1 you received an amount from the chief cashier to restore the imprest
amount.
4. You received R600 from the chief cashier on 22 February 20.1
5. The total of the petty cash payments amounted to R900 during February 20.1
6. You received an amount from the chief cashier on 28 February 20.1 to restore the imprest
amount.

Date Details Fol. Amount Date Details Fol. Amount

20.1 Balance b/d 200 20.1 Total payments PCJ 900
Feb 1 Feb 28

Bank CPJ 800 Balance c/d 1 000

22 Bank CPJ 600

28 Bank CPJ 300

1 900 1 900

20.1 Balance b/d 1 000

Mar 1

Imprest amount = R1 000

Money in petty cash box = 200 + 800 + 600 = R1 600

Money taken out of petty cash box = R900

How much money left in petty cash box

R1 600 – R900 = R700

Restore amount = R1 000 – R700 = R300

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 N4 Introductory Financial Accounting | Lecturer Guide

Activity 6.15 SB page 99

You are requested to draft the Petty Cash Account for August 20.1 in the books of IDOLS SA.

The following information was provided:

1. An imprest amount of R850 is kept in the petty cash.
2. The balance at the Petty Cash account on 1 August 20.1 was R200.
3. On 1 August 20.1 you received an amount from the chief cashier to restore the imprest
amount.
4. You received R300 from the chief cashier on 20 August 20.1.
5. The total of the Petty Cash payments amounted to during August 20.1.
6. You received an amount from the chief cashier on 31 August 20.1.
7. The total of the petty cash payments amounted to R800 during August 20.1.
8. You received an amount from the chief cashier on 31 August 20.1 to restore the imprest
amount.

Date Details Fol. Amount Date Details Fol. Amount

20.1 Balance b/d 200 20.1 Total PCJ 800

Aug 1 Aug 31 payments

1 Bank CPJ 650 Balance c/d 850

20 Bank CPJ 300

31 Bank CPJ 500

1 650 1 650
20.1 Balance b/d 850
Sep 1

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 Module 6: Trading Organisation: Subsidiary Journals and Posting to the General Ledger

Activity 6.16 SB page 100

The following transactions occurred in the books of Vergo’s Sportwear during September 20.1.

Required
Enter the transactions in the Cash Receipts-, Cash Payments- and Petty Cash Journals.
Don’t close off the journals at the end of the month.

Additional information
Money is deposited on 8, 14, 22 and 30 September 20.1.

Transactions
September 20.1

1 Buy tennis rackets from Dunlop and pay R2 200 by cheque no. 711.
3 Cash sales according to the total of the cash register roll R29 500.
5 Buy toilet paper from Pick n Pay, R90. Petty cash voucher 80 is issued.
8 Received from Cash Loans R4 000 for interest on a fixed deposit. Receipt 621 is issued.
9 Buy a delivery vehicle from BMW and pay R170 000 by cheque 712.
11 Withdraw R700 by cheque no. 713. This will be used as a float.
12 Cash sales according to the total of the cash register roll R36 300.
13 Buy stamps and pay R30. Petty cash voucher 81 is issued.
14 The owner, Tyler Vergotine, gives a cheque of R70 000 to increase his capital. Receipt 622
is issued.
Send cheque no. 714 to Laeeqah as partial payment of our account, R14 200.
15 Draw a cash cheque no. 715 to pay wages, R18 000.
16 Buy books from CNA, R40. Petty cash voucher 82 is issued.
17 Pay Shiloh R45 000 by cheque no. 716 for a new telephone system.
18 Cash sales according to the total of the cash register roll, R40 800.
19 Receive a cheque of R1 800 from Micah Clarke in settlement of her account to date.
Receipt 623 is issued.
20 Donate R500 to Hospice. Petty cash voucher 83 is issued.
21 Pay the owner’s personal telephone account to Cell C by cheque no. 717, R600.
22 Cash sales according to the total of the cash register roll, R50 200.
23 Pay PG Glass R3 900 for the replacement of delivery vehicle’s windscreen by cheque no.
718.
24 Pay Gino Cleaners R400 for the cleaning of the carpets. Petty cash voucher 84 is issued.
Buy cricket bats for R32 800 from Caren-Lee and pay by cheque no. 719.
26 Receive R4 500 from Liam Estate for commission on products sold. Receipt 624 is issued.
27 Issue cheque no. 720 to OUTsurance in payment of our insurance, R5 000.
28 Buy magazines for reception, R150. Petty cash voucher 85 is issued.
29 Receive R7 100 from Skyler Petersen for the renting of sport equipment. Receipt 625 is
issued.
Pay Telkom by cheque no. 721, R2 300.
30 Buy fuel for Tyler Vergotine’s car, R200. Petty cash voucher 86 is issued. Cash sales
according to the total of the cash register roll, R35 200.

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 N4 Introductory Financial Accounting | Lecturer Guide

Activity 6.16 (continued)

CASH RECEIPTS JOURNAL Vergo’s Sportware – September 20.1 CRJ4

Analysis Bank Sales Trade Sundry Accounts

Doc. Day Details of and other
Receipts receivables Details Amount

CRR 3 Cash sales 29 500 29 500

621 8 Cash Loans 4 000 33 500 Interest received 4 000

CRR 12 Cash sales 36 300 36 300

622 14 T Vergotine 70 000 106 300 Capital 70 000

CRR 18 Cash sales 40 800 40 800

623 19 Micah Clarke 1 800 1 800

CRR 22 Cash sales 50 200 92 800 50 200

624 26 Liam Estate 4 500 Commission 4 500

income
625 29 S Petersen 7 100 Rent income 7 100

CRR 30 Cash sales 35 200 46 800 35 200

CASH PAYMENTS JOURNAL Vergo’s Sportware – September 20.1 CRJ4

Doc. Day Payee Bank Purchases Trade Telephone Sundry Accounts

and other
payables Details Amount

711 1 Dunlop 2 200 2 200

712 9 BMW 170 000 Vehicles 170 000

713 11 Cash 700 Cash float 700

714 14 Laeeqah 14 200 14 200

715 15 Cash 18 000 Wages 18 000

716 17 Shiloh 45 000 Equipment 45 000

717 21 Cell C 600 Drawings 600

718 23 PG Glass 3 900 Repairs 3 900

719 24 Caren-Lee 32 800 32 800

720 27 Outsurance 5 000 Insurance 5 000

721 29 Telkom 2 300 2 300

294 700 35 000 14 200 243 200

88
 Module 6: Trading Organisation: Subsidiary Journals and Posting to the General Ledger

Activity 6.16 (continued)

PETTY CASH JOURNAL OF Vergo’s Sportware – September 2012

Doc. Day Details Petty Stationery Postage Cleaning Sundry Accounts

Cash materials
Details Amount

80 5 Pick a Pay 90 Staff 90

expenses
81 13 Stamps 30 30

82 16 CNA 40 40

83 20 Hospice 500 Donation 500

income
84 24 Gino Cleaners 400 Cleaning of 400
carpets
85 28 Magazines for 150 Sundry 150
reception expenses

86 30 Fuel for Tyler car 200 Drawings 200

89
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 6.17 SB page 101

The following transactions occur in the books of Violett's Florist during September 20.1.

Required
Enter the transactions in the Cash Book and Petty Cash Journal; don’t close it off at the end of
the month.

Additional information
On 1 September 20.1 the owner, Violett Vincent appointed a petty cashier to deal with their
petty cash payments. It was decided to work according to the imprest system.
Money is deposited on 7, 12, 17 and 30 September 20.1.

Transactions
1 The bank account shows a debit balance of R115 800 on 1 September 20.1.
Withdraw R600 by cheque 335. This was given to the petty cashier as an advance.
2 Buy a delivery vehicle from Verna Motors and pay R30 000 by cheque no. 336.
3 Buy pens and pencils from Ulande, R50. Petty cash voucher 001 is issued.
5 Receive from Ben Hector R4 700 for commission on the sales of their products.
Receipt 657 is issued.
7 Cash sales according to the total of the cash register slip R34 350.
8 Send a parcel by mail and pay R60. Petty cash voucher 002 is issued.
9 Buy inventory from Angela’s and pay R25 830 by cheque no. 337.
12 Cash sales according to the total of the cash register slip R22 470.
Pay Reynold Furniture by cheque no. 338 for the following:
2 Office desks at R4 500 each
5 Chairs at R850 each
1 Cabinet at R5 200
14 Give a donation to Melvin Gray R600. Petty cash voucher 003 is issued.
15 Buy stamps, R55. Petty cash voucher 004 is issued.
Cash sales according to the total of the cash register slip R32 000.
17 The owner gives a cheque of R100 000 to increase his capital. Receipt 658 is issued.
18 Receive trading inventory for R41 650 from Vincent Pty Ltd and pay by cheque no. 339.
20 Violett Vincent pays R750 with a cheque from the business (no. 340) to Telkom for his
private telephone account.
Buy merchandise for R380 at an auction. Petty cash voucher 005 is issued.
22 Receive a cheque of R1 250 from Carlo in settlement of his account to date.
Receipt 659 is issued.
23 Pay The Argus by cheque no. 341 for advertising material printed, R7 200.
24 The petty cashier receives cheque no. 342 from the chief cashier, R600.
25 Pay R75 to Swan Dry Cleaners for Violett Vincent's suits. Petty cash voucher 006 is issued.
27 Pay Charls Accountants R2 600 by cheque no. 343 for accounting services rendered.
28 Buy window cleaner, to clean the windows, R60. Petty cash voucher 007 is issued.
29 Issue cheque no. 344 to CCS Alarms in partial payment of our account, R700.
Buy soft drinks for the client’s kids, R55. Petty cash voucher 008 is issued.
30 Cash sales according to the total of the cash register slip, R31 600.
Draw cheque no. 345 to pay wages, R7 500.
31 Draw cheque no. 346 in favour of V Gray, to pay her salary for September, R6 800.

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 Module 6: Trading Organisation: Subsidiary Journals and Posting to the General Ledger

Activity 6.17 (continued)

CASH BOOK OF Violets Florist – September 20.1

Analysis Bank Sales Trade Sundry Accounts

Doc. Day Details of and other
Receipts receivables Details Amount

1 Balance b/d 115 800 Balance 115 800

657 5 Ben Hector 4 700 Commission 4 700

income
CRR 7 Cash Sales 34 350 39 050 34 350

CRR 12 Cash Sales 22 470 22 470 22 470

CRR 15 Cash Sales 32 000 32 000

658 17 Violett Vincent 100 000 132 000 Capital 100 000

659 22 Carlo 1 250 1 250

CRR 30 Cash Sales 31 600 32 850 31 600

342 170

1 Balance b/d 199 490 Balance 199 490

CASH BOOK OF Violets Florist – September 20.1

Doc. Day Payee Bank Purchases Trade Wages and Sundry Accounts
and other salaries
payables Details Amount

335 1 Cash 600 Petty cash 600

336 2 Verna Motors 30 000 Vehicles 30 000

337 9 Angela’s 25 830 25 830

338 12 Reynold 18 450 Furniture & 18 450

Furniture Equipment
339 18 Vincent Pty 41 650 41 650

340 20 Telkom 750 Drawings 750

341 23 The Argus 7 200 Advertising 7 200

342 24 Cash 600 Petty cash 600

343 27 Charls 2 600 Accounting 2 600

Accountants fees
344 29 CCS Alarms 700 700

345 30 Cash 7 500 7 500

346 31 V Gray 6 800 6 800

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 N4 Introductory Financial Accounting | Lecturer Guide

Activity 6.17 (continued)

PETTY CASH JOURNAL OF Violets Florist – September 20.1 PCJ4

Doc. Day Details Total Stationery Postage Cleaning Sundry Accounts

materials
Amount Details

001 3 Ulande 50 50

002 8 Sent a parcel 60 60

003 14 Melvin Gray 600 600 Donation

income
004 15 Stamps 55 55

005 20 Merchandise 380 380 Purchases

(Auction)
006 25 Swan Dry Cleaners 75 75 Drawings
007 28 Windowleen 60 60

008 29 Soft drinks 55 55 Sundry

expenses

92
 Module 6: Trading Organisation: Subsidiary Journals and Posting to the General Ledger

Activity 6.18 SB page 102

The owner, T. Deyi, requests that you use the source documents below to complete the Cash
Receipts Journal, Cash Payments Journal and Petty Cash Journal of DEYI DELI.
All monies received is banked daily.

Required
Use the source documents to enter the transactions in the Cash Receipts Journal, Cash
Payments Journal and Petty Cash Journal of DEYI DELI for February 20.1.
Cast/Add up the bank columns only in the Cash Receipts and Cash Payments Journal.
Complete and balance only the bank account in General Ledger.

Additional information
Banking is done on a daily basis.

RECEIPTS:

DEYI DELI RECEIPT NO.: 11

01/02/20.1

Received from: T. Deyi

The sum of: Sixty thousand rand only R60 000. 00

In payment of: Capital contribution

DEYI DELI
With Thanks

DEYI DELI RECEIPT NO.: 12

05/02/20.1

Received from: S. Dollie

The sum of: Eight hundred rand only R800. 00

In payment of: Payment on account

DEYI DELI
With Thanks

DEYI DELI RECEIPT NO.: 13

28/02/20.1

Received from: Dudley Caterers

The sum of: Two thousand five hundred rand only R2 500. 00

In payment of: Commission income

DEYI DELI
With Thanks

93
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 6.18 (continued)

Cash register rolls:

DEYI DELI DEYI DELI

01/02/20.1 05/02/20.1

R18 200 R14 700

DEYI DELI DEYI DELI

27/02/20.1 28/02/20.1

R4 200 R4 400

Cheque counterfoils:

001 002 003

Date: 02/02/20.1 Date: 06/02/20.1 Date: 12/02/20.1
To: Kela Stores To: Tato Estates To: Cash
For: Purchases For: Rent For: Petty cash

Amount: R1 890,00 Amount: R5 600,00 Amount: R750,00

004 005 006

Date: 15/02/20.1 Date: 18/02/20.1 Date: 22/02/20.1
To: Telkom To: Cash To: Rafiki
For: Telephone For: Drawings For: Fax paper

Amount: R500,00 Amount: R930,00 Amount: R350,00

007 008 009

Date: 26/02/20.1 Date: 28/02/20.1 Date: 28/02/20.1
To: Game To: Cash To: Feli City
For: Purchases: For: Wages For: Payment of
R1 320,00 account
Office chairs:
R1 000,00
Amount: R2 320,00 Amount: R50,00 Amount: R3 400,00

94
 Module 6: Trading Organisation: Subsidiary Journals and Posting to the General Ledger

Activity 6.18 (continued)

Petty cash vouchers issued:

DEYI DELI DEYI DELI DEYI DELI

77 78 79
06/02/20.1 09/02/20.1 10/02/20.1

For: Coffee, milk For: Invoice book For: Stamps

Amount: R30,00 Amount: R60,00 Amount: R20,00

DEYI DELI DEYI DELI DEYI DELI

80 81 82
16/02/20.1 20/02/20.1 24/02/20.1

For: Biscuits, tea For: Registered mail For: Casual wages

Amount: R45,00 Amount: R15,00 Amount: R100,00

DEYI DELI DEYI DELI

83 84
27/02/20.1 28/02/20.1

For: Owners' car wash For: Envelopes

Amount: R80,00 Amount: R50,00

CASH RECEIPTS JOURNAL DEYI DELI – FEBRUARY 20.1 CRJ4

Doc. Day Details Bank Sales Trade Analysis Sundry Accounts

and other of
receivables Receipts Details Amount

11 01 T Deyi 60 000 Capital 60 000

CRR Cash sales 78 200 18 200 18 200

12 05 S Dollie 800 800

CRR Cash sales 15 500 14 700 14 700

CRR 27 Cash sales 4 200 4 200 4 200

143 28 Dudley Caterers 2 500 Commission 2 500

income
CRR Cash sales 6 900 4 400 4 400

104 800

95
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 6.18 (continued)

CASH PAYMENTS JOURNAL DEYI DELI – FEBRUARY 20.1 CRJ4

Doc. Day Payee Bank Purchases Trade Wages Sundry Accounts

and other
payables Details Amount

001 02 Kela Stores 1 890 1 890

002 06 Tato Estates 5 600 Rent expense 5 600

003 12 Cash 750 Petty cash 750

004 15 Telkom 500 Telephone 500

005 18 Cash 930 Drawings 930

006 22 Rafiki 350 Stationery 350

007 26 Game 2 320 1 320 Furniture 1 000

008 28 Cash 50 50

009 Feli City 3 400 3 400

15 790

PETTY CASH JOURNAL OF DEYI DELI – FEBRUARY 20.1 PCJ4

Doc. Day Details Petty Stationery Postage Refreshments Sundry Accounts

Cash
Amount Details

77 06 Coffee, milk 30 30

78 09 Invoice book 60 60

79 10 Stamps 20 20

80 16 Biscuits, tea 45 45

81 20 Registered mail 15 15

82 24 Casual wages 100 100 Wages

83 27 Owner’s car wash 80 80 Drawings

84 28 Envelopes 50 50

Bank

Date Details Fol. Amount Date Details Fol. Amount

20.1 28 Total receipts CRJ 104 800 20.1 28 Total payments CPJ 15 790
Feb Feb

Balance c/d 89 010

104 800 104 800

20.1 1 Balance b/d 89 010

Mar

96
 Module 6: Trading Organisation: Subsidiary Journals and Posting to the General Ledger

Activity 6.19 SB page 105

The following transactions occurred in the books of Qaya Electric Warehouse during April 20.1.

Required
1. Enter the following transactions in the Cash Receipts Journal, Cash Payments Journal and
Petty Cash Journal. Close off only the Petty Cash Journal.
2. Complete the Petty Cash General Ledger account.

Additional information
Money is deposited on 5, 12, 22 and 29 April 20.1.
The company uses the imprest petty cash system.

Transactions
April 20.1
1 Draw a cash cheque to restore the imprest amount of R500; cheque no. 445.
Buy electric cables from GP Electric and pay R45 200 by cheque no. 446.
2 Cash sales according to the total of the cash register roll R69 100.
3 Buy pens from Osmans, R80. Petty cash voucher 200 is issued.
5 Received from Asis R5 600 for interest on a fixed deposit. Receipt 327 is issued.
7 Buy shelves from Buildwell and pay R7 500 by cheque no. 447.
8 Withdraw R5 000 by cheque no. 448. This will be used to pay temporary workers.
9 Cash sales according to the total of the cash register roll R52 300.
11 Buy stamps and pay R40. Petty cash voucher 20.1 is issued.
12 The owner, Y Maki, gives a cheque of R90 000 to increase her capital. Receipt 328 is
issued.
Send cheque no. 449 to Charles as partial payment of our account, R18 500.
13 Draw a cash cheque no. 450 to adjust the petty cash, R700.
14 Buy dust rags from PEP, R90. Petty cash voucher 202 is issued.
17 Pay Barlo Motors R60 000 by cheque no. 451 for a delivery motorcycle.
18 Cash sales according to the total of the cash register roll, R120 400.
19 Receive a cheque of R3 300 from N Yebe in settlement of his account. Receipt 329 is
issued.
20 Donate R700 to LOFOB. Petty cash voucher 203 is issued.
21 Pay the owner’s personal clothing account at Edgars by cheque no. 452, R900.
22 Cash sales according to the total of the cash register roll, R88 100.
23 Pay Jacks Paint for paint for repairs to the storeroom by cheque no. 453, R6 900.
24 Pay Xcel for the fuel of the motorcycle, R200. Petty cash voucher 204 is issued.
25 Buy plugs for R9 900 from FD Suppliers and pay by cheque no. 454.
26 Receive R5 500 from Azesa for commission on products sold. Receipt 330 is issued.
27 Issue cheque no. 455 to Magra Packaging in payment of bags, R2 300.
28 Buy envelopes for reception from Stationery for Africa, R180. Petty cash voucher 205 is
issued.
29 Receive R9 700 from M de Witt for the rental of sport equipment. Receipt 331 is issued.
30 Pay ESKOM by cheque no. 456, R10 600.
31 Buy sweets for owner's children, R50. Petty cash voucher 206 is issued. Draw a cash
cheque to restore the imprest amount. Cheque no. 457.

97
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 6.19 (continued)

CASH RECEIPTS JOURNAL Qaya Electric Warehouse – April 20.1
CRJ4

Doc. Day Details Analysis of Bank Sales Trade Sundry Accounts

Receipts and other
receivables Details Amount

CRR 2 Cash sales 69 100 69 100

Interest on
327 5 Asis 5 600 74 700 5 600
fixed deposit
CRR 9 Cash sales 52 300 52 300

328 12 Y Maki 90 000 142 300 Capital 90 000

CRR 18 Cash sales 120 400 120 400

329 19 N Yebe 3 300 3 300

CRR 22 Cash Sales 88 100 211 800 88 100

Commission
330 26 Azesa 5 500 5 500
income
331 29 M de Witt 97 00 15 200 Rent income 9 700

444 000

CASH PAYMENTS JOURNAL of Qaya Electric Warehouse – April 20.1 CRJ4

Doc. Day Payee Bank Purchases Trade Furniture Sundry Accounts

and other and
payables Equipment Details Amount

445 1 Cash 500 Petty cash 500

446 GP Electric 45 200 45 200

447 7 Buildwell 7 500 7 500

448 8 Cash 5 000 Wages 5 000

449 12 Charles 18 500 18 500

450 13 Cash 700 Petty cash 700

Barlo 60 000 60 000

451 17 Vehicles
Motors
452 21 Edgars 900 Drawings 900

Jacks 6 900 6 900

453 23 Repairs
Paint
FD 9 900 9 900
454 25
Suppliers
Magra 2 300 Packaging 2 300
455 27
Packaging material
10 600 Water and 10 600
456 30 ESKOM
electricity
457 31 Cash 640 Petty cash 640

168 640

98
 Module 6: Trading Organisation: Subsidiary Journals and Posting to the General Ledger

Activity 6.19 (continued)

PETTY CASH JOURNAL OF Qaya Electric Warehouse – April 20.1 PCJ4

Doc. Day Details Petty Stationery Postage Cleaning Sundry Accounts

Cash materials
Amount Details
200 3 Osmans 80 80

201 11 Stamps 40 40

202 14 PEP 90 90

203 20 LOFOB 700 700 Donation

income
204 24 Xcel 200 200 Fuel

205 28 Stationery for Africa 180 180

206 31 Sweets for children 50 50 Drawings

1 340 260 40 90 950

Petty Cash B…

Date Details Fol. Amount Date Details Fol. Amount

20.1 Bank CPJ 500 20.1 Total PCJ 1 340

April 1 April 31 payments

13 Bank CPJ 700 Balance c/d 500

31 Bank CPJ 640
1 840 1 840
May 1 Balance b/d 500

Imprest amount = R500

Money in petty cash box = R500 + R700 = R1 200

Money taken out of petty cash box = R1 340

How much money left in petty cash box

R1 340 – R1 200 = -R140

Restore imprest amount = R500 – (140) = R640

99
 N4 Introductory Financial Accounting | Lecturer Guide

Summative Assessment SB page 106

GROUP ACTIVITY
The following transactions occurred in the books of Daphne Dixon Stationers during July 20.1.

REQUIRED:
In Groups of 4 enter the following transactions in the Cash Book and Petty Cash Journal.
Balance ONLY the bank account at the end of the month.
• After the groups draft on hardcopy, complete the entries electronically into the Cash Book
and Petty Cash Journal.
• Enter the names of the group members as a footer, align to the left.
• Groups can use any type of spreadsheet.
• Copy the layout of the Journals from the Student Workbook Activity 6.20

ADDITIONAL INFORMATION:
• Money is deposited on 9, 18 and 31 July 20.1
• The bank balance on 1 July 20.1 amounted to R34 000.

TRANSACTIONS:

July 20.1
1 Buy various school accounting exercise books from Tommy Printers and pay
R45 200 by cheque no. 200.
3 Buy pens and magazines from CNA, R80. Petty cash voucher 300 is issued.
5 Received from Absa Bank R5 600 for interest on a fixed deposit. Receipt 600 is issued.
8 Withdraw R5 000 by cheque no. 201. This will be used to pay temporary workers.
9 Cash sales according to the total of the cash register roll, R52 300.
11 Buy stamps from the Post Office and pay R40. Petty cash voucher 201 is issued.
12 The owner, D Dixon, gives a cheque of R30 000 to increase her capital.
Receipt 601 is issued.
Send cheque no. 202 to Waltons as partial payment of our account, R18 500.
13 Draw a cash cheque no. 203 to adjust the petty cash, R700.
14 Buy cleaning cloths from Makro, R90. Petty cash voucher 302 is issued.
18 Cash sales according to the total of the cash register roll, R12 400.
19 Receive a cheque of R3 300 from Local School in settlement of their account.
Receipt 602 is issued.
21 Pay the owner’s personal clothing account to Woolworths by cheque no. 204, R900.
24 Pay Engen for the fuel of the delivery van, R200. Petty cash voucher 303 is issued.
25 Buy merchandise for R9 900 from Tommy Printers and pay by cheque no. 205.
27 Issue cheque no. 206 to CT Packaging in payment of boxes and plastic shopping bags,
R2 300.
28 Buy envelopes for reception from Waltons, R180. Petty cash voucher 304 is issued.
31 Receive R9 700 from Melanie Gordon for the renting of office space.
Receipt 603 is issued.
Pay ESKOM by cheque no. 207, R10 600.
Buy sweets for owner’s children, R50. Petty cash voucher 305 is issued.

100
 Module 6: Trading Organisation: Subsidiary Journals and Posting to the General Ledger

NOTE TO LECTURER:
Give the group marks for the following:
• Layout
• Appropriate Font use
• Alignment of numbers
• Spreadsheet used
• Overall Impression

CASH BOOK OF DAPHNE DIXON STATIONERS – JULY 20.1

Debit Side CB01

Trade Sundry Accounts
Analysis of
Doc Day Details Bank Sales and other
Receipts Amount Fol Details
receivables

1 Balance b/d 34 000 

Interest on
600 5 ABSA Bank 5 600  5 600 
fixed deposit 
CRR 9 Cash sales 52 300  57 900  52 300 

601 12 D Dixon 30 000  30 000  Capital 

CRR 18 Cash sales 12 400  42 400  12 400 

602 19 Local School 3 300  3 300 

603 31 Melanie Gordon 9 700  13 000  9 700  Rent received 

 147 300 
20.1
Balance b/d 57 900 
Aug 1

101
 N4 Introductory Financial Accounting | Lecturer Guide

Summative Assessment (continued)

CASH BOOK OF DAPHNE DIXON STATIONERS JULY 20.1

Credit Side CB01

Trade Sundry Accounts
Doc Day Payee Bank Purchases and other
payables Amount Fol Details

200 1 Croxley Printers 45 200  45 200 

201 8 Cash cheque 5 000  5 000  Wages 

202 12 Waltons 18 500  18 500 

203 13 Cash cheque 700  700  Petty cash 

204 21 Woolworths 900  900  Drawings 

205 25 Croxley Printers 9 900  9 900 

Packing material/
206 27 CT Packaging 2 300  2 300 
Packaging 
207 31 ESKOM 10 600  10 600  Electricity 

Balance c/d 57 900 

 147 300 

PETTY CASH JOURNAL OF DAPHNE DIXON STATIONERS – JULY 20.1 PJ7

Day Doc Details Petty Cash Stationery Postage Cleaning Sundry Account
material
Amount Details

3 300 CNA 80  80 

11 301 Post Office 40  40 

14 302 Makro 90  90 
24 303 Engen 200  200  Fuel  200 
28 304 Waltons 180  180 
31 305 Sweets 50  50  Drawings  50 

102
 Module 7
Trading Concern: Wages and Salaries

After completing this module, students will be able to:

• Identify and explain types of wage systems.
• Describe the different ways of controlling overtime remuneration and to calculate overtime.
• Define the purpose of the deductions in the contents column and determine the employee and
employer’s share of the deductions.
• Draw up the Wages Journal.
• Draw up the Salaries Journal.
• Record appropriate accounting entries regarding the Wages Journal and Salaries Journal in the
Cash Payments Journal.
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 7.1 SB page 112

Use the following information and complete the wage slips for the week ended on 16 May 20.1:

ALL CALCULATIONS MUST BE ROUNDED OFF TO THE NEAREST RAND. INFORMATION:

• The normal weekly hours are 40 hours for 5 days. Mondays to Fridays 8 hours per day.
• J. Seppie worked on Monday 9 hours, Wednesday 14 hours, Thursday 7 hours,
Friday 9 hours. On Tuesday she had a doctor’s note. This leave will be paid.
• S. Jones worked on Monday 8 hours, Tuesday 13 hours, Wednesday 8 hours,
Thursday 10 hours, Friday 9 hours.
• Deductions:

Employee Dependants Medical Aid Fund Pension Fund PAYE UIF

J. Seppie 2 R80 for the 7,5 % of 25 % of gross wage 1 % of

S. Jones 1 member and normal wage after pension has normal
R60 for each been taken into wage
dependant account

WAGE ENVELOPE

Name: J Seppie Age: 35

Week ended: Employee no.: 2005JS

16 May 20.1

Deductions: R c Earnings Tariff Hours R c

Medical Aid Fund 200 00 Normal time R75.00 39 2 925 00

Pension Fund 219 00 Overtime R90.00 8 720 00

PAYE 857 00 Total earnings 3 645 00

UIF 29 00 Minus: Total deductions 1 305 00

Total deductions: 1 305 00 Net wage 2 340 00

WAGE ENVELOPE

Name: S Jones Age: 44

Week ended: Employee no.: 2007SJ

16 May 20.1

Deductions: R c Earnings Tariff Hours R c

Medical Aid Fund 140 00 Normal time R82.00 40 3 280 00

Pension Fund 246 00 Overtime R98.00 8 784 00

PAYE 955 00 Total earnings 4 064 00

UIF 33 00 Minus: Total deductions 1 374 00

Total deductions: 1 374 00 Net wage 2 690 00

104
 Module 7: Trading Concern: Wages and Salaries

Monday to Friday
Total
J Seppie hours Normal Overtime

Monday 9 8 1

Tuesday

Wednesday 14 8 6

Thursday 7 7 0

Friday 9 8 1

Total 39 31 8

Adjustment +8

Final total 47 39 8

Monday to Friday
Total
S Jones hours Normal Overtime

Monday 8 8 0

Tuesday 13 8 5

Wednesday 8 8 0

Thursday 10 8 2

Friday 9 8 1

Total 48 40 8

Adjustment

Final total

105
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 7.2 SB page 112

The information below concerns the wages of employees of JMC TeleComputers. Enter the
data below in the Wages Journal and close off the journal. There were 4 weeks in April 20.1.

During the week ending 30 April 20.1, the following hourly paid employees were employed by
JMC TeleComputers for a work week of 40 hours.
1. The details of hours worked and remuneration for the week ending 30 April 20.1, were as
follows:

Name Marital Dependants Hours Wages/hour Wages/hour

status worked Normal time Overtime

Adams, G Married 2 48 R25.00 R36.00

Smit, S Single None 36 R26.00 R38.00

2. Details of deductions:
• Pension fund contributions have to be deducted at 8% of employees’ wage for normal
time.
• Medical fund contributions are deducted as follows:
– R600 per month for single persons; and
– R800 per month for married persons and an additional contribution of R120 per week
per dependant.
• Calculate PAYE at 15% of taxable income (gross income – pension).
• UIF has to be deducted at 1% of employees’ gross wage for normal time.
• All employees are obliged to contribute R5 per week to their staff association.
• JMC TeleComputers contributes R1,50 to the pension fund for every R1,00 contributed
by the employees, as well as R2,00 to the Unemployment insurance fund for every
R1,00 contributed by the employees.

Wages Journal of JMC TeleComputers for the week ending 30 April 20.1

Gross Total Net

Normal time Overtime Deductions
Employee

Wage Deductions Wage

Pension Medical Staff

Hrs Amount Hrs Amount PAYE UIF
Fund Aid assoc.

Adams G 40 1 000 8 288 1 288 80 181.20 10 440 5 716.20 571.80

Smit S 36 936 0 0 936 74.88 129.17 9.36 150 5 368.41 567.59

Employee Employer Contributions

Pension UIF Total

Adams G 120 20 140

Smit S 112.32 18.72 131.04

106
 Module 7: Trading Concern: Wages and Salaries

Activity 7.3 SB page 113

Ntsika’s Cash Store employs two workers who are paid weekly. The normal working hours are
40 hours per week.

Details for the employees for the week ended 31 July 20.1 are given below:

Employ Employee Hours Normal Overtime hourly Union fees Medical Aid
Number worked hourly rate rate per week Contributions

001 H. Mvandaba 46 R80,00 R120,00 R6,00 R320,00

002 S. Jaggers 48 R90,00 R112,50 R6,00 R360,00

OTHER DEDUCTIONS made from the employee’s wages are:

• Pension fund contributions at 9% of normal earnings
• Unemployment contributions at 1% of gross earnings
• PAYE is calculated at 15% of taxable income.

DETAILS OF EMPLOYER’S CONTRIBUTION:

• Pension Fund: R2 for every R1 contributed by the employee.
• Medical Aid: R1 for every R1 contributed by the employee.
• Unemployment Insurance Fund: R1 for every R1 contributed by the employee.

Prepare the Wages Journal of Ntsika’s Cash Store for the week ended 31 July 20.1.
Total ALL the columns.

Wages Journal of Ntsika’s Cash Store for the week ending 31 July 20.1

Gross Total Net

Normal time Overtime Deductions
Employee

Wage Deductions Wage

Pension Medical Union

Hrs Amount Hrs Amount PAYE UIF
Fund Aid Fees

Mvandaba 40 3 200 6 720 3 920 288 544.80 39.20 320 6 1 198.00 2 722.00

Jaggers 40 3 600 8 900 4 500 324 626.40 45 360 6 1 361.40 3 138.60

TOTAL 8 420 612 1 171.20 84.20 680 12 2 559.40 5 860.60

Employee Employer Contributions

Pension UIF Med Aid Total

Mvandaba 576 39.20 320 935.20

Jaggers 648 45 360 1 053.00

TOTAL 1 224 84.20 680 1 988.20

107
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 7.4 SB page 117

The information below is from Cole’s Cash Store. They employ TWO staff members.

NOTE: Assume that the Medical Aid contribution have NO bearing on PAYE calculations.

Employee Employee Annual Pension PAYE Tax Medical Aid Unemployment

Number Name salary fund Rate contributions Insurance Fund

001 Amelia Adams R112 512 7,5% 18% R620,00 1%

002 John Lulubayi R108 912 7,5% 18% R580,00 1%

Employer contributes to the various funds as follows:

• Unemployment Insurance Fund contributions are done on a rand-for-rand basis.
• Medical Aid Fund contributions on a rand-for-rand basis.
• R2 for every R1 contributed by the employee to the Pension Fund.

Required
• Use the information below to prepare a Salaries Journal for November 20.1.
• Total up the columns of the Salaries Journal on 30 November 20.1, No posting is required.

Salaries Journal of Cole’s Cash Store for the week ending 30 November 20.1

EMPLOYEES’ DEDUCTIONS
NAME OF GROSS NET
EMPLOYEE SALARY PENSION SALARY
MED AID PAYE UIF TOTAL
FUND

Amelia
9 376.00 703.20 620.00 1 561.10 93.76 2 978.06 6 397.94
Adams

John
9 076.00 680.70 580.00 1 511.15 90.76 2 862.61 7 505.24
Lulubayi

Total 18 452.00 1 383.90 1 200.00 3 072.26 184.52 5 840.68 13 903.18

NAME OF EMPLOYER’S CONTRIBUTIONS

EMPLOYEE PENSION FUND MED AID UIF TOTAL

Amelia Adams 1 406.40 620.00 93.76 2 120.16

John Lulubayi 1 361.40 580.00 90.76 2 032.16

Total 2 767.80 1 200.00 184.52 4 152.32

108
 Module 7: Trading Concern: Wages and Salaries

Activity 7.5 SB page 118

Use the Employee Details sheet and Salaries Journal to do the following:
• Record the transactions for the payments made by TJ Suppliers to make payments of all the
employees’ salaries (cheque numbers 35 to 37); and the contributions to the various staff
benefits funds (cheque numbers 28 to 31) in the Cash Payments Journal.
• Cheque 28 was issued to Need Medical Aid, cheque 29 to Penny Pension Fund, cheque 30
to Unemployment Insurance Fund and cheque 31 to SARS.
• Total the Cash Payments Journal.

Cash Payment Journal of TJ Suppliers – April 20.1

Doc. Day Payee Bank Salaries Trade Sundry Accounts

No. Payables
Control Amount Fol. Details

Need Medical
28 30 4 200 4200 Need Medical Aid
Aid

Penny
29 7 880 7 880 Penny Pension Fund
Pension Fund

30 UIF 1 100 1 100 UIF

31 SARS 6 182 6 182 SARS

35 K Tat 12 653 12 653

36 P Young 19 940 19 940

37 K Jones 9 535 9 535

61 480 42 118 19 362

109
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 7.6 SB page 119

Nazies Paradise employs a number of people in the various departments of their organisation.
Use the employee details sheet and the staff payment policy provided to do the following:

Prepare the SALARIES JOURNAL for the month of October 20.1 on the answer sheet provided.
Close off the journal at the end of the month.

Staff Payment Policy

Employees are required to inform their employer of any changes to their marital status,
dependents or other personal details.

The following deductions are made from ALL employees’ salaries:

Pension Fund contributions 8% of gross salary

Unemployment Insurance Fund 1% of gross salary

Pay As You Earn (PAYE) is calculated on the Taxable Income 12%

[Taxable Income = Gross Salary minus Pension deduction]

Medical Aid Fund contributions

Main member R300,00

PLUS:
Spouse/adult dependant R240,00
Child 1 R160,00
Child 2 R140,00
Child 3 R120,00
Additional child(ren) R120,00

Employer’s Contributions
Deductions are effective from 1 January 20.1 and remain in force until further notice from the
Human Resources Department.

As per Nazies Paradise staff policy, the company makes the following contributions on behalf
of staff:

EMPLOYER’S CONTRIBUTIONS

Pension Fund contributions 8% of gross salary

Unemployment Insurance Fund 1% of gross salary

Medical Aid Fund contributions Nazies Paradise Enterprises contributes at a rate of 2:1
Main member R600
PLUS: PLUS:
Spouse/adult dependant R480
Child 1 R320
Child 2 R280
Child 3 R240
Additional child(ren) R240

110
 Module 7: Trading Concern: Wages and Salaries

Activity 7.6 (continued)

Salaries Journal of Nazies Paradise – October 20.1

Name of Gross Employees’ deductions Employer’s contributions

Employee salary
Pension Med Paye UIF Total Net Pension Med UIF Total
fund aid Salary fund aid

Sydney
25 900 2 072 700 2 859 259 5 890 20 010 2 072 1 400 259 3 731
Adams

Bertram
16 500 1 320 300 1 821 165 3 606 12 893 1 320 600 165 2 085
Christoffels

Ntombiyakhe
13 500 1 080 300 1 490 135 3 005 10 495 1 080 600 135 1 815
Sontshi

Irene
24 700 1 976 540 2 726 247 5 489 19 210 1 976 1 080 247 3 303
Woodwards

Thandeka
12 500 1 000 460 1 380 125 2965 9 535 1 000 920 125 2 045
Mbizo

TOTAL 93 100 7 448 2 300 10 278 931 20 957 72 143 7 448 4 600 931 12 979

111
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 7.7 SB page 121

Use the following information and complete the WAGES ENVELOPE of CHARLS, for the week
ended on 20 August 20.1.

NOTE:
All calculations must be rounded off to the nearest rand. Don’t close off the journal.

INFORMATION:
• The normal hours are 45 hours for a week consisting of 6 days. Mondays to Fridays 8 hours
per day and Saturdays 5 hours.
• N Karelse worked on Monday 8 hours, Tuesday 10 hours, Wednesday 10 hours,
Thursday 12 hours and Friday 8 hours. On Saturday he went to his mother’s funeral.
• Chantal Petersen worked on Monday 8 hours, Tuesday 11 hours, Wednesday 8 hours,
Thursday 9 hours, Friday 10 hours and on Saturday 6 hours.

DEDUCTIONS:

Employee Dependants Medical Aid Fund Pension Fund PAYE UIF

Nina Karelse 2 R120 for the 7,5% of 25% of gross 1% of

Chantal Petersen 3 member and normal wage after normal
R70 for each wage pension has wage
dependant been taken into
account

ABBREVIATIONS:
PAYE – Income Tax
UIF – Unemployment Insurance Fund

WAGE ENVELOPE

Name: N Karelse Age: 45

Week ended: Employee NK001

20 August 20.1 no.:

Deductions: R c Earnings Tariff Hours R c

Medical Aid Fund 260 00 Normal time R35.00 45 1 575 00

Pension Fund 118 00 Overtime R50.00 8 400 00

PAYE 464 00 Total earnings 1 975 00

UIF 16 00 Minus: Total deductions 858 00

Total deductions: 858 00 Net wage 1 117 00

112
 Module 7: Trading Concern: Wages and Salaries

WAGE ENVELOPE

Name: C Petersen Age: 44

Week ended: Employee CP003

20 August 20.1 no.:

Deductions: R c Earnings Tariff Hours R c

Medical Aid Fund 330 00 Normal time R55.00 45 2 475 00

Pension Fund 186 00 Overtime R80.00 7 560 00

PAYE 712 00 Total earnings 3 035 00

UIF 25 00 Minus: Total deductions 1 253 00

Total deductions: 1 253 00 Net wage 1 782 00

Monday to Saturday
Total
N Karelse hours Normal Overtime

Monday 8 8 0

Tuesday 10 8 2

Wednesday 10 8 2

Thursday 12 8 4

Friday 8 8 0

Saturday 0 0 0

Total 48 40 8

Adjustment +5

Final total 53 45 8

Monday to Saturday
Total
C Petersen hours Normal Overtime

Monday 8 8 0

Tuesday 11 8 3

Wednesday 8 8 0

Thursday 9 8 1

Friday 10 8 2

Saturday 6 5 1

Total 52 45 7

Adjustment

Final total

113
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 7.8 SB page 122

Use the following information and complete the wages envelopes, for the week ended on 18
June 20.1. It is for the employees of Reynolds Flooring, A Karelse and C Micheals.

NOTE:
All calculations must be rounded off to the nearest rand. INFORMATION: The normal hours are
40 hours for a week consisting of 5 days.

INFORMATION:
A Karelse worked on Monday 9 hours, Tuesday 10 hours, Wednesday 12 hours and Friday 11
hours. For Thursday, he brought a letter from the doctor.

C Micheals worked on Monday 11 hours, Tuesday 14 hours, Wednesday 9 hours, Thursday

8 hours and on Friday 2 hours. He made arrangements with the staff manager to take off the
overtime of Tuesday for Friday instead of getting paid for it.

DEDUCTIONS:

Employee Dependants Medical Aid Fund Pension Fund PAYE UIF

A Karelse 3 R250 for the 7,5% of normal 25% of gross wage 1% of

C Micheals 2 member and wage after pension has normal
R40 for each been taken into wage
dependant account

ABBREVIATIONS:
PAYE – Income Tax
UIF – Unemployment Insurance Fund

WAGE ENVELOPE

Name: A Karelse Age: 45

Week ended: Employee 2015AK

18 June 20.1 no.:

Deductions: R c Earnings Tariff Hours R c

Medical Aid Fund 370 00 Normal time R50.00 40 2 000 00

Pension Fund 150 00 Overtime R70.00 10 700 00

PAYE 638 00 Total earnings 2 700 00

UIF 20 00 Minus: Total deductions 1 178 00

Total deductions: 1 178 00 Net wage 1 522 00

114
 Module 7: Trading Concern: Wages and Salaries

WAGE ENVELOPE

Name: C Michaels Age: 44

Week ended: Employee 2010CM

18 June 20.1 no.:

Deductions: R c Earnings Tariff Hours R c

Medical Aid Fund 330 00 Normal time R80.00 40 3 200 00

Pension Fund 240 00 Overtime R95.00 4 380 00

PAYE 835 00 Total earnings 3 580 00

UIF 32 00 Minus: Total deductions 1 437 00

Total deductions: 1 437 00 Net wage 2 143 00

Monday to Saturday
Total
A Karelse hours Normal Overtime

Monday 9 8 1

Tuesday 10 8 2

Wednesday 12 8 4

Thursday 0 0 0

Friday 11 8 3

Saturday

Total 42 32 10

Adjustment +8

Final total 50 40 10

Monday to Saturday
Total
C Michaels hours Normal Overtime

Monday 11 8 3

Tuesday 14 8 6

Wednesday 9 8 1

Thursday 8 8 0

Friday 2 2 0

Saturday

Total 44 34 10

Adjustment +6 -6

Final total 40 4

115
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 7.9 SB page 123

Use the following information to complete the Wages Journal of ELVINA’S, for the week ended
on 28 April 20.4.

NOTE:
All calculations must be rounded off to the nearest rand. Do not close off the journal.

INFORMATION:
The normal hours are 45 hours for a week consisting of 6 days. Mondays to Fridays 8 hours per
day and Saturdays 5 hours.

Jauleel worked on Monday 10 hours, Tuesday 9 hours, Wednesday 11 hours, Thursday 8 hours,
Friday 8 hours. On Saturday he was sick.

Gershwin worked on Monday 8 hours, Tuesday 8 hours, Wednesday 15 hours, Thursday 10

hours, Friday 4 hours and on Saturday 5 hours. He made arrangements with the staff manager
to take off the overtime of Wednesday for Friday instead of getting paid for it.

DEDUCTIONS:

Employee Dependants Medical Aid Fund Pension Fund PAYE UIF

Jauleel 3 R90 for the member 7,5% of normal 25% of gross wage 1% of
Gershwin 2 and R70 for each wage after pension has been normal
dependant taken into account wage

ABBREVIATIONS:
PAYE – Income Tax
UIF – Unemployment Insurance Fund

EMPLOYER’S CONTRIBUTION:
Pension Fund – 75% of the Contribution of the employee
UIF – R1,00 for each R1,00 contributed by the employee

WAGES JOURNAL OF Elvina’s – 28 April 20.4

Normal Time Overtime Deductions

deductions

Net wages

Gross
Total

Name
Amount

Amount

Wages Pension Med

Tariff

Tariff

Hrs Hrs PAYE UIF

fund Aid

Jauleel 30 45 1 350 46 6 276 1 626 381 101 300 14 796 830

Gershwin 44 45 1 980 68 5 340 2 320 543 149 230 20 941 1 379

Employee Employer Contributions

Pension UIF Total

Jauleel 76 14 90

Gershwin 111 20 131

116
 Module 7: Trading Concern: Wages and Salaries

Monday to Saturday
Total
Gershwin hours Normal Overtime

Monday 8 8 0

Tuesday 8 8 0

Wednesday 15 8 7

Thursday 10 8 2

Friday 4 4

Saturday 5 5 0

Total 50 41 9

Adjustment 0 4 -4

Final total 50 45 5

Monday to Saturday
Total
Jauleel hours Normal Overtime

Monday 10 8 2

Tuesday 9 8 1

Wednesday 11 8 3

Thursday 8 8 0

Friday 8 8 0

Saturday 0 0 0

Total 46 40 6

Adjustment +5

Final total 51 45 6

117
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 7.10 SB page 124

Use the following information and complete the Wages Journal of KAAMILA’S HAIRSALON, for
the week ended on 8 June 20.1:

NOTE:
ALL calculations must be rounded off to the nearest rand. Do not close off the journal.

INFORMATION
Normal hours are 45 hours for a week consisting of 6 days. Mondays to Fridays 8 hours per day
and Saturdays 5 hours.

Z Adams worked on Monday 9 hours, Tuesday 8 hours, Wednesday 12 hours, Friday 11 hours
and Saturday 5 hours. On Thursday she was sick.

F Jackson worked on Monday 8 hours, Tuesday 10 hours, Wednesday 11 hours, Thursday 13

hours, Friday 3 hours and on Saturday 5 hours. He made arrangements with the staff manager
to take off the overtime of Thursday for Friday instead of getting paid for it.

DEDUCTIONS:

Employee Dependants Medical Aid Fund Pension Fund PAYE UIF

Z Adams 2 R150 for the 7,5% of normal 25% of gross wage 1% of

F Jackson 1 member and R80 wage after pension has been normal
for each dependant taken into account wage

ABBREVIATIONS:
PAYE – Income Tax
UIF – Unemployment Insurance Fund

EMPLOYER’S CONTRIBUTION:
Pension Fund – 50% of the Contribution of the employee UIF – R1,00 for each R1,00
contributed by the employee

WAGES JOURNAL OF Kaamila’s Hairsalon – 8 June 20.1

Normal Time Overtime Deductions

deductions

Net wages

Gross
Total

Name
Amount

Amount

Wages Pension Med

Tariff

Tariff

Hrs Hrs PAYE UIF

fund Aid

Adams 35 45 1 575 53 8 424 1 999 470 118 310 16 914 1 085

Jackson 49 45 2 205 74 5 370 2 575 603 165 230 22 1 020 1 555

Total 3 780 794 4 574 1 073 540 540 38 1 934 2 640

Employee Employer Contributions

Pension UIF Total

Adams 59 16 75

Jackson 83 22 105

TOTAL 142 38 180

118
 Module 7: Trading Concern: Wages and Salaries

Monday to Saturday
Total
Jackson hours Normal Overtime

Monday 8 8 0

Tuesday 10 8 2

Wednesday 11 8 3

Thursday 13 8 5

Friday 3 3 0

Saturday 5 5 0

Total 50 40 10

Adjustment +5 -5

Final total 50 45 5

Monday to Saturday
Total
Adams hours Normal Overtime

Monday 9 8 1

Tuesday 8 8 0

Wednesday 12 8 4

Thursday 11 8 3

Friday 0 0 0

Saturday 5 5 0

Total 45 37 8

Adjustment +8

Final total 53 45 8

Summative Assessment 1 SB page 125

In groups of 4, do a presentation about different employee deductions. Find out what other
deductions there could also be.

Remember, soon you will be earning a wage or a salary and then you will be having employee
deductions deducted from your gross remuneration.

Assess students on merit.

119
 N4 Introductory Financial Accounting | Lecturer Guide

Summative Assessment 2 SB page 125

Use the following information and complete the WAGE JOURNAL of MINNIE, for the week
ended on 26 June 20.5.

NOTE: ALL CALCULATIONS MUST BE ROUNDED OFF TO THE NEAREST RAND.

DON’T CLOSE OFF THE JOURNAL.

INFORMATION:
• The normal hours are 45 hours for a week consisting of 6 days. Mondays to Fridays 8 hours
per day and Saturdays 5 hours.

• MJ Clarke worked on Monday 8 hours, Tuesday 8 hours, Wednesday 12 hours,

Thursday 9 hours, Friday 8 hours and Saturday 7 hours. Clarke earns a rate for normal
time of R35.

• Z Stander worked on Monday 9 hours, Tuesday 8 hours, Wednesday 10 hours,

Thursday 8 hours. Friday 8 hours and on Saturday 8 hours. Stander earns a rate for
normal time of R48.50.

• Deductions

Employee Dependants Medical aid fund Pension fund PAYE UIF

MJ Clarke 1 R130 for the 7.5% of 20% of gross wage 1% of

member and normal wage after pension has normal
Z. Stander 2 R80 for each been taken into wage
dependant account

Abbreviations:

PAYE – Pay As You Earn

UIF – Unemployment Insurance Fund

Employer’s contribution:

Pension Fund – 70% of the contribution of the employee

UIF – R1.00 for each R1.00 contributed by the employee
Medical Aid Fund – 50% of the contribution of the employee

120
 Module 7: Trading Concern: Wages and Salaries

Wage Journal of MINNIE for the week ending 26 June 20.5

Normal Time Overtime Deductions

Gross Total Net
Name
Wages Pension Med deductions wages
Rate Hrs Amount Rate Hrs Amount PAYE UIF
fund Aid

MJ Clarke 35.00 45 1 575 45 7 315 1 890 118 354 16 210 698 1 192

Z Stander 48.50 45 2 183 60 6 360 2 543 164 476 22 290 952 1 591

Employer Contributions
Name
Pension UIF Medical Aid

MJ Clarke 83 16 105

Z Stander 115 22 145

Monday to Saturday Monday to Saturday

Total Total
MJ CLARKE hours Normal Overtime Z STANDER hours Normal Overtime

Monday 8 8 0 Monday 9 8 1

Tuesday 8 8 0 Tuesday 8 8 0

Wednesday 12 8 4 Wednesday 10 8 2

Thursday 9 8 1 Thursday 8 8 0

Friday 8 8 0 Friday 8 8 0

Saturday 7 5 2 Saturday 8 5 3

Total 45 7 Total 45 6

121
 N4 Introductory Financial Accounting | Lecturer Guide

122
 Module 8
Bank reconciliation

After completing this module, students will be able to:

• Explain the purpose of bank reconciliation.
• Explain the purpose and functions of the bank statement.
• Compare the bank statement to the Cash Journals and identify and record the differences.
• Record the reconciled entries in the Cash Journals/Cash Book and draw up a Bank
Reconciliation Statement and compare the balance of the bank statement with the balance
shown in the bank account/Cash Book.
• Compare the bank statement with the Cash Journals/Cash Book of the current month and the
Bank Reconciliation Statement of the previous month and make the entries if necessary.
• Briefly describe the procedures to stop the payment of a cheque, to record the cancellation
of the cheque in the appropriate Cash Journals/Cash Book and to record the issuing of a new
cheque.
• Follow the correct procedure to make the correct entries regarding transactions involving post-
dated cheques.
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 8.1 SB page 135

You are required to do the following for Faldie Sport Shop:
1. Compare the Cash Journals with the Bank statement and make supplementary entries in
both journals.
2. Close off the Cash Journals and post the Bank account. Balance the Bank account.
3. Compile a Bank Reconciliation Statement on 31 March 20.1.

Attached you will find the Bank Account, Cash Journals and bank statement for March 20.1.

General Ledger of Faldie Sport Shop

Bank
Date Details Fol. Amount Date Details Fol. Amount
20.1
Mar 1 Balance b/d 2 450 00

Cash Receipts Journal of Faldie Sport Shop – March 20.1 CRJ7

Trade Sundry Accounts
Doc. Analysis of
Day Details Fol. Bank Sales Receivables
No. Receipts Amount Fol. Details
Control
13 1 Z. Adams 4 300 00 4 300 00
CRR Sales 6 120 00 10 420 00 6 120 00
CRR 8 Sales 12 100 00 12 100 00 12 100 00
CRR 13 Sales 670 00 670 00 670 00
14 18 M. Geen 3 000 00 3 000 00 Donation
15 W. Clark 11 200 00 11 200 00
CRR Sales 2 600 00 16 800 00 2 600 00
16 24 S. Jackson 1 500 00 1 500 00 1 500 00
41 490 00 21 490 00 17 000 00 3 000 00

Cash Payments Journal of Faldie Sport Shop – March 20.1 CPJ7

Trade Trade Sundry Accounts
Doc.
Day Name of Payee Fol. Bank Purchases Payables Receivables
No. Amount Fol. Details
Control Control
001 1 Telkom 320 00 320 00 Telephone
002 4 Cash 5 000 00 5 000 00 Wages
003 AD Traders 9 500 00 9 500 00
004 5 Ashley Traders 4 500 00 4 500 00
005 6 V. Engel 830 00 830 00 Equipment
006 12 Cash 5 000 00 5 000 00 Wages
007 16 MSG Stationers 445 00 445 00 Stationery
008 22 J. Parker 510 00 510 00
009 T. Adams 140 00 140 00
010 Davids Distributors 500 00 500 00
011 M. Fortuin 214 00 214 00
012 27 Cash 5 000 00 5 000 00 Wages
013 30 M. Falal 500 00 500 00 Rent expense
32 459 00 9 640 00 5 724 00 17 095 00

124
 Module 8: Bank reconciliation

Activity 8.1 (continued)

JACK BANK
Bank Statement

Faldie Sport Shop

Account
25369784621
Number:
Page Number: 1 OF 1

Transaction Transaction
Description Amount Amount Date Balance
Debit(–) Credit(+)
Balance brought forward 20.1/03/01 2 450.00
Deposit 10 420.00 20.1/03/04 12 870.00
Cheque 001 320.00 20.1/03/07 12 550.00
Cheque 002 5 000.00 20.1/03/08 7 550.00
Deposit 12 100.00 20.1/03/10 19 650.00
Cheque book 5.00 20.1/03/14 19 645.00
Cheque 005 830.00 20.1/03/14 18 815.00
Cheque 006 5 000.00 20.1/03/15 13 815.00
Deposit 670.00 20.1/03/16 14 485.00
Cheque 004 4 500.00 20.1/03/20 9 985.00
Stone Insurance 2 000.00 20.1/03/20 7 985.00
Deposit 16 800.00 20.1/03/21 24 785.00
Cheque 009 140.00 20.1/03/21 24 645.00
Cheque 008 510.00 20.1/03/22 24 135.00
Cheque 010 500.00 20.1/03/22 23 635.00
Cheque 011 214.00 20.1/03/23 23 421.00
Unpaid cheque 4 300.00 20.1/03/23 19 121.00
Tax levy 12.00 20.1/03/24 19 109.00
Interest on credit balance 109.00 20.1/03/24 19 218.00
Credit card levy 52.00 20.1/03/25 19 166.00
Service fee 47.00 20.1/03/25 19 119.00
Cheque 012 5 000.00 20.1/03/31 14 119.00

Additional information
1. The payment of R2 000 to Stone Insurance on 20 March 20.1 was a stop order for the
monthly insurance.
2. The unpaid cheque on 23 March 20.1 was received from Z. Adams. The dishonoured
cheque, together with a debit slip, was included with the bank statement.

125
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 8.1 (continued)

Cash Receipts Journal of Faldie Sport Shop – March 20.1 CRJ7

Doc. Day Details Fol. Analysis of Bank Sales Trade Sundry Accounts
No. Receipts Control Receivables
Amount Fol. Details
Control

31 Totals b/d 41 490 00 21 490 00 17 000 00 3 000

B/S Jack Bank 109.00 00 109.00 00 Interest Received

on Current Account

41 599 00

Cash Payments Journal of Faldie Sport Shop – March 20.1

Doc. Day Name of Payee Fol. Bank Purchases Trade Sundry Accounts
No. Payables
Amount Fol. Details
Control

31 Totals b/d 32 459 00 9640 00 5724 00 17 095 00

B/S Stone Insurance 2 000 00 2 000 00 Insurance

B/S Z. Adams (R/D) 4 300 00 4 300 00 Trade Receivables Control

B/S Jack Bank 116 00 116 00 Bank charges

38 875 00 9 640 00 5 724 00

General Ledger of Faldie Sport Shop

BANK

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Balance b/d 2 450 00 20.1 31 Total CPJ7 38 875 00

Mar Mar Payments

31 Total Receipts CRJ7 41 599 00 Balance c/d 5 174 00

44 049 00 44 049 00

Apr 1 Balance b/d 5 174 00

Bank Reconciliation Statement on 31 March 20.1

Debit Credit

Credit balance as per bank statement 14 119 00

Credit outstanding deposit 1 500 00

Debit outstanding cheques:

No. 003 9 500 00

No. 007 445 00

No. 013 500 00

Debit balance according to bank account 5 174 00

15 619 00 15 619 00

126
 Module 8: Bank reconciliation

Activity 8.2 SB page 137

You are required to do the following for Buddy Building Supplies:
1. Compare the Cash Journals with the Bank statement and make supplementary entries in
both journals.
2. Close off the Cash Journals and post the Bank account. Balance the Bank account.
3. Compile a Bank Reconciliation Statement on 31 August 20.1.

Attached you will find the Cash Journals and bank statement for August 20.1.

Details:
Bank account on 1 August 20.1 – R13 750 credit

Cash Receipts Journal of Buddy Building Supplies – August 20.1 CRJ7

Trade Sundry Accounts
Doc. Analysis of
Day Details Fol. Bank Sales Receivables
No. Receipts Amount Fol. Details
Control
CRR 1 Sales 1 600 00 1 600 00 1 600 00
CRR 9 Sales 5 600 00 5 600 00 5 600 00
CRR 14 Sales 1 110 00 1 110 00 1 110 00
214 18 F. Davids 3 300 00 3 300 00
CRR Sales 10 830 00 14 130 00 10 830 00
CRR 30 Sales 2 340 00 2 340 00 2 340 00
24 780 00 21 480 00 3 300 00

Cash Payments Journal of Buddy Building Supplies – August 20.1 CPJ7

Trade Sundry Accounts
Doc.
Day Name of Payee Fol. Bank Purchases Wages Receivables Fol.
No. Amount Details
Control
556 2 City Council 445 00 445 00 Rates

557 5 Cash 6 000 00 6 000 00

558 AZD 1 500 00 1 500 00
559 Fays 2 000 00 2 000 00
560 9 Game 4 690 00 4 690 00 Equipment

561 13 Cash 6 000 00 6 000 00

562 15 Dawids Transfers 3 789 00 3 789 00 Courier fees

563 26 Terry Stores 5 444 00 5 444 00

564 27 Cash 240 00 240 00
565 28 Telkom 1 764 00 1 764 00 Telephone

566 29 Cash 6 000 00 6 000 00

567 30 Spotty 873 00 873 00 Repairs

38 745 00 8 944 00 18 240 00 11 561 00

127
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 8.2 (continued)

PERM BANK
Bank Statement
Buddy Building Supplies
Account
78462536921
Number:
Page Number: 1 OF 1
Transaction Transaction
Description Amount: Amount: Date Balance
Debit(–) Credit(+)
Balance brought
20.1/08/01 -13 750.00
forward
Credit 1 600.00 20.1/08/04 -12 150.00
Cheque 556 445.00 20.1/08/07 -12 595.00
Cheque 557 6 000.00 20.1/08/08 -18 595.00
Credit 5 600.00 20.1/08/10 -12 995.00
Cheque 560 4 690.00 20.1/08/14 -17 685.00
Cheque 561 6 000.00 20.1/08/14 -23 685.00
Credit 1 110.00 20.1/08/15 -22 575.00
Cheque 559 2 000.00 20.1/08/16 -24 575.00
Credit 14 130.00 20.1/08/20 -10 445.00
Cheque 563 5 444.00 20.1/08/20 -15 889.00
Cheque 564 240.00 20.1/08/21 -16 129.00
Cheque 565 1 764.00 20.1/08/21 -17 893.00
Cheque 566 6 000.00 20.1/08/22 -23 893.00
Unpaid cheque 3 300.00 20.1/08/22 -27 193.00
Interest on overdraft 134.00 20.1/08/23 -27 327.00
Tax levy 12.00 20.1/08/23 -27 339.00
Service fee 129.00 20.1/08/24 -27 468.00

Notes:
The unpaid cheque on 22 August 20.1 was received from F. Davids. The dishonoured cheque
was accompanied with a debit note and was included with the bank statement.

128
 Module 8: Bank reconciliation

Activity 8.2 (continued)

Cash Receipts Journal of Buddy Building Supplies – August 20.1 CRJ7

Doc. Day Details Fol. Analysis of Bank Sales Trade Sundry Accounts
No. Receipts Receivables
Control Amount Fol. Details

31 Total b/d 24 780 00 21 480 00 3 300 00

24 780 00 21 480 00 3 300 00 0 00

Cash Payments Journal of Buddy Building Supplies – August 20.1 CRJ7

Doc. Day Name of Payee Fol. Bank Purchases Wages Sundry Accounts
No.
Amount Fol. Details

31 Total b/d 38 745 00 8 944 00 18 240 00 11 561 00

B/S F Davids (R/d) 3 300 00 3 300 00 Trade Receivables Control

B/S Perm Bank 134 00 134 00 Interest on overdraft

B/S Perm Bank 141 00 141 00 Bank charges

42 320 00 8 944 00 18 240 00

General Ledger of Buddy Building Supplies

BANK

Date Details Fol. Amount Date Details Fol. Amount

20.1 31 Total Receipts CRJ7 24 780 00 20.1 1 Balance b/d 13 750 00

Aug Aug

Balance c/d 31 290 00 Total CPJ 42 320 00

Payments

56 070 00 56 070 00

Sep 1 Balance b/d 31 290 00

Bank Reconciliation Statement on 31 August 20.1

Debit Credit

Debit balance as per bank statement 27 468 00

Credit outstanding deposit 2 340 00

Debit outstanding cheques:

No. 558 1 500 00

No. 562 3 789 00

No. 567 873 00

Credit balance according to bank account 31 290 00

33 630 00 33 630 00

129
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 8.3 SB page 139

Use the information of Riefa Rootis to:
1. Make supplementary entries in the cash receipts and Cash Payments Journals of Riefa
Rootis; close off the journals.
2. Post to the Bank account in the General Ledger and balance the Bank account.
3. Draw up a Bank Reconciliation Statement on 30 April 20.1.

Additional information
1. On 1 April 20.1 the bank account in the General Ledger had a favourable balance of R5,00.
2. On 30 April 20.1 the totals of the columns in the Cash Journals were:

Cash Receipts Journal of Riefa Rootis – April 20.1 CRJ3

Trade Sundry Accounts
Doc. Analysis of
Day Details Fol. Bank Sales Receivables
No. Receipts Amount Fol. Details
Control
30 Totals b/d 1 000 00 500 00 200 00 300 00

Cash Payments Journal of Riefa Rootis – April 20.1 CPJ3

Trade Trade Sundry Accounts
Doc.
Day Name of Payee Fol. Bank Purchases Receivables Payables
No. Amount Fol. Details
Control Control
30 Totals b/d 1 400 00 1 160 00 100 00 100 00 40 00

3. On comparing the Cash Receipts Journal and the Cash Payments Journal with the bank
statement, the following differences were found:
a) The bank statement received from Africa Bank had an unfavourable balance of R154,80.
b) The following cheques had not been presented for payment at the bank:
No. 501 – R55,00
No. 505 – R100,00
c) A cheque for R50,00 received from debtor, S Davids, was dishonoured by the bank on
account of insufficient funds.
d) Direct withdrawals on the bank statement included:
R1,50 credit card levy
R12,50 service fees R6,00 cheque books
R11,40 interest on overdraft
e) The bank statement reflected a debit order in favour of Connie Brokers for insurance
premium of R55.
f) Direct deposits into the current banking account included:
R420,00 rent received from a tenant, Q Effendi.
R1,60 interest on current account
g) A deposit of R200,00 entered in the Cash Receipts Journal was outstanding and not
included in the bank statement.

130
 Module 8: Bank reconciliation

Activity 8.3 (continued)

Cash Receipts Journal of Riefa Rootis – April 20.1 CRJ7
Doc. Day Details Fol. Analysis of Bank Sales Trade Sundry Accounts
No. Receipts Control Receivables
Control Amount Fol. Details

30 Totals b/d 10 00 00 500 00 200 00 300 00

B/S Q Effendi 420 00 420 00 Rent

received

B/S Africa Bank 1 60 1 60 Interest

income

1 421 60 500 00 200 00 721 00

Cash Payments Journal of Riefa Rooties – April 20.1 J7

Doc. Day Name of Payee Fol. Bank Purchases Trade Trade Sundry Accounts
No. Receivables Payables
Control Amount Fol. Details
Control

30 Totals b/d 1 400 1 160 100 100 40

B/S S Davids (R/d) 50 50

B/S Africa Bank 20 20 Bank charges

B/S Africa Bank 11 40 11 40 Interest on

overdraft

B/S Connie Brokers 55 55 Insurance

1 536 40 150 100 – 126

General Ledger of Riefa Rootis

BANK

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Balance b/d 5 00 20.1 30 Total Payments CPJ 1 536 40

Apr Apr

30 Total Receipts CRJ 1 421 60

Balance c/d 109 80

1 536 40 1 536 40

May 1 Balance b/d 109 80

Bank Reconciliation Statement on 30 April 20.1

Debit Credit

Debit balance as per bank statement 154 80

Credit outstanding deposit 200 00

Debit outstanding cheques:

No. 501 55 00

No. 505 100 00

Credit balance according to bank account 109 80

309 80 309 80

131
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 8.4 SB page 142

The following information appeared in the books of Can-Can.

You are required to do the following:

1. Compare the bank statement on 30 April 20.1 with the Bank Reconciliation Statement on
31 March 20.1.
2. Compare the Cash Journals with the Bank statement.
3. Make supplementary entries in the Cash Journals where necessary.
4. Close off the Cash Journals, then draw up and balance the Bank account.
5. Compile a Bank Reconciliation Statement on 30 April 20.1.

DETAILS
Bank Reconciliation Statement on 31 March 20.1
Debit Credit
Debit balance as per bank statement 2 918 00
Credit deposit not credited by bank 13 612 00
Debit cheques not presented for payment
No. 375 550 00
No. 378 2 560 00
Debit balance according to bank account 7 584 00
13 612 00 13 612 00

Cash Receipts Journal of Can-Can – April 20.1 CRJ4

Trade Sundry Accounts
Doc. Analysis of
Day Details Fol. Bank Sales Receivables
No. Receipts Amount Fol. Details
Control
1023 1 W. De Waal 3 118 00 3 118 00
CRR Sales 1 300 00 4 418 00 1 300 00
1024 6 J Williams 2 345 00 2 345 00 2 345 00
CRR 15 Sales 12 445 00 12 445 00 12 445 00
CRR 17 Sales 4 500 00 4 500 00
1025 L. Mhlabeni 2 310 00 6 810 00 2 310 00
CRR 25 Sales 3 880 00 3 880 00
1026 29 L. Taho 5 439 00 9 319 00 5 439 00
35 337 00 22 125 00 13 212 00

Cash Payments Journal of Can-Can – April 20.1 CPJ4

Trade Trade Sundry Accounts
Doc. Name of
Day Fol. Bank Purchases Wages Receivables Payables
No. Payee Amount Fol. Details
Control Control
382 1 City Council 893 00 893 00 Rates
383 5 Cash 200 00 200 00
Kaydee Stationery
384 1 450 00 1 450 00
Stationers
385 6 NSI 8 900 00 8 900 00
386 8 Hyper Market 22 310 00 22 310 00
387 10 Cash 200 00 200 00
388 25 CL Poole 1 456 00 1 456 00 Equipment
389 27 N. Khanisa 565 00 565 00
390 28 Cash 200 00 200 00
391 30 N. Skweyiya 1 000 00 1 000 00 Rent expense
37 174 00 600 00 31 775 00 2 906 00

132
 Module 8: Bank reconciliation

Activity 8.4 (continued)

FINN BANK
Bank Statement

Can-Can

Account Number: 62136972584

Page Number: 1 OF 1

Transaction Transaction
Description Amount: Amount: Date Balance
Debit(–) Credit(+)

Balance brought
20.1/04/01 -2 918.00
forward

Credit 13 612.00 20.1/04/04 10 694.00

Cheque 375 550.00 20.1/04/07 10 144.00

Cheque 382 893.00 20.1/04/08 9 251.00

Credit 4 418.00 20.1/04/10 13 669.00

Cheque book 5.00 20.1/04/14 13 664.00

Cheque 384 1 450.00 20.1/04/14 12 214.00

Credit 2 345.00 20.1/04/15 14 559.00

Cheque 387 200.00 20.1/04/16 14 359.00

Tinkerbell Insurance 5 000.00 20.1/04/18 9 359.00

Credit 12 445.00 20.1/04/20 21 804.00

Cheque 385 8 900.00 20.1/04/25 12 904.00

Cheque 388 1 456.00 20.1/04/25 11 448.00

Cheque 389 565.00 20.1/04/26 10 883.00

Credit 6 810.00 20.1/04/26 17 693.00

Unpaid cheque 2 345.00 20.1/04/27 15 348.00

Tax levy 17.00 20.1/04/27 15 331.00

Credit 2 000.00 20.1/04/28 17 331.00

Credit card levy 58.00 20.1/04/28 17 273.00

Service fee 36.00 20.1/04/29 17 237.00

Cheque 390 200.00 20.1/04/30 17 037.00

Notes:
1. The payment of R50,00 to Tinkerbell Insurance on 18 April 20.1 is by debit order for an
insurance premium.
2. The credit on 28 April 20.1 is from S Fernandez for rent which was paid directly into
Can-Can’s account.

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 N4 Introductory Financial Accounting | Lecturer Guide

Activity 8.4 (continued)

Cash Receipts Journal of Can–Can – April 20.1 CRJ4
Doc. Day Details Fol. Analysis of Bank Sales Trade Sundry Accounts
No. Receipts Control Receivables
Control Amount Fol. Details

30 Totals b/d 35 337 00 22 125 00 13 212 00

B/S S Fernandez 2 000 00 2 000 00 Rent received

37 337 00 22 125 00 13 212 00 2 000 00

Cash Payments Journal of Can–Can – April 20.1 CPJ4

Doc. Day Name of Payee Fol. Bank Purchases Wages Trade Sundry Accounts
No. Payables
Amount Fol. Details
Control

30 Totals b/d 37 174 00 600 00 31 775 00 2 906 00

B/S Tinkerbell 5 000 00 5 000 00 Insurance

Insurance

B/S Finn Bank 116 00 116 00 Bank charges

B/S J Williams (R/d) 2 345 00 2 345 00 Trade Receivables

Control

44 635 00 600 00 31 775 00 10 367 00

General Ledger of Can-Can

BANK

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Balance b/d 7 584 00 20.1 30 Total Payments CPJ 44 635 00

Apr Apr

30 Total Receipts CRJ 37 337 00 Balance c/d 286 00

44 921 00 44 921 00

May 1 Balance b/d 286 00

Bank Reconciliation Statement on 30 April 20.1

Debit Credit

Credit balance as per bank statement 17 037 00

Credit outstanding deposit 9 319 00

Debit outstanding cheques:

No. 378 2 560 00

No. 383 200 00

No. 386 22 310 00

No. 391 1 000 00

Debit balance according to bank account 286 00

26 356 00 26 356 00

134
 Module 8: Bank reconciliation

Activity 8.5 SB page 145

Use the information of Nemo Aquarium to:
1. Make supplementary entries in the Cash Receipts Journal and Cash Payments Journals of
Nemo Aquarium; close off the journals.
2. Post to the bank account in the General Ledger and balance the Bank account.
3. Draw up a Bank Reconciliation Statement on 31 October 20.1.

Notes:
1. The bank statement reconciliation on 30 September 20.1 showed the following details:
Outstanding cheques:
No. 321 – R654,00
No. 322 – R320,00
No. 325 – R323,00
Debit balance according to bank account, R3 670,00.

2. On 30 April 20.1 the totals of the columns in the Cash Journals were:

Cash Receipts Journal:

Bank Sales Sundry Accounts

R87 232,00 R54 827,00 R32 405,00

Cash Payments Journal:

Bank Purchases Wages Sundry Accounts

R138 426,00 R78 328,00 R40 320,00 R19 778,00

3. A comparison between the Cash Receipts Journal and the Cash Payments Journal with the
bank statement showed the following differences:
a) The bank statement showed a debit balance of R46 036.
b) A deposit of R1 560 on 31 October 20.1 has not yet been credited on the bank
statement.
c) The following cheques has not yet been presented for payment on 31 October 20.1.
No. 321 – R654,00
No. 345 – R2 812,00
No. 348 – R102,00
d) A cheque for R340,00 received from debtor, A Cornelius was dishonoured by the bank
due to insufficient funds.
e) An amount of R134,00 i.r.o. interest on the debit balance, was debited on the bank
statement.
f) The bank debited Nemo Aquarium’s current account with the following:
R31,00 credit card levy
R158,00 service fees
R7,00 cheque books
g) The bank statement reflected a debit order in favour of Andy Brokers for insurance
premium, R350.
h) R500 was paid directly into the bank account by B Lightyear for rent.

135
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 8.5 (continued)

Cash Receipts Journal of Nemo Aquarium – October 20.1 CRJ5
Doc. Day Details Fol. Analysis Bank Sales Trade Sundry Accounts
No. of Receivables
Receipts Control Amount Fol. Details

31 Totals b/d 87 232 00 54 827 00 32 405 00

B/S B Lightyear 500 00 500 00 Rent income

87 732 00 54 827 00 32 905 00

Cash Payments Journal of Nemo Aquarium – October 20.1 CRJ5

Doc. Day Name of Payee Fol. Bank Purchases Wages Sundry Accounts
No.
Amount Fol. Details

31 Totals b/d 138 426 00 78 328 00 40 320 00 19 778 00

B/S A Cornelius (R/d) 340 00 340 00 Trade Receivables

Control

B/S (Bank) 134 00 134 00 Interest paid

B/S “Bank” 196 00 196 00 Bank charges

B/S Andy Brokers 350 00 350 00 Insurance

139 446 00 78 328 00 40 320 00 20 798 00

General Ledger of Nemo Aquarium

BANK

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Balance b/d 36 70 00 20.1 30 Total Payments CPJ 139 446 00

Oct Oct

30 Total Receipts CRJ 87 732 00

Balance c/d 48 044 00

139 446 00 139 446 00

Nov 1 Balance b/d 48 044 00

Bank Reconciliation Statement on 30 April 20.1

Debit Credit

Debit balance as per bank statement 46 036 00

Credit outstanding deposit 1 560 00

Debit outstanding cheques:

No. 321 654 00

No. 345 2 812 00

No. 348 102 00

Credit balance according to bank account 48 044 00

49 604 00 49 604 00

136
 Module 8: Bank reconciliation

Activity 8.6 SB page 149

The following information appeared in the books Takalani.

You are required to do the following:

1. Compare the bank statement with the previous Bank Reconciliation Statement.
2. Compare the Cash Journals with the Bank statement.
3. Make supplementary entries in the Cash Journals where necessary.
4. Close off the Cash Journals, then draw up and balance the Bank account.
5. Compile a Bank Reconciliation Statement on 30 June 20.1.

Details
Bank Reconciliation Statement on 31 May 20.1
Debit Credit
Credit balance as per bank statement 7 302 00
Credit deposit not credited by bank 4 614 00
Debit cheques not presented for payment:
No. 075 750 00
No. 078 2 561 00
Debit balance according to bank account 8 605 00
11 916 00 11 916 00

Cash Receipts Journal of Takalani – June 20.1 CRJ5

Trade Sundry Accounts
Doc. Analysis of
Day Details Fol. Bank Sales Receivables
No. Receipts Amount Fol. Details
Control
R 57 1 P. Patch 4 693 00 4 693 00

CRR Sales 5 190 00 9 883 00 5 190 00

R 58 13 W. Wallie 3 492 00 3 492 00
CRR 15 Sales 5 293 00 8 785 00 5 293 00
CRR 17 Sales 9 382 00 9 382 00 9 382 00
R 59 23 M Moon 3 500 00 3 500 00 Rent received

CRR 25 Sales 6 239 00 9 739 00 6 239 00

37 789 00 26 104 00 8 185 00 3 500 00

Cash Payments Journal of Takalani – June 20.1 CPJ5

Trade Trade Sundry Accounts
Doc. Name of
Day Fol. Bank Purchases Wages Receivables Payables
No. Payee Amount Fol. Details
Control Control
682 1 S Takalani 3 000 00 3 000 00 Drawings
683 5 Cash 300 00 300 00
684 Daisy 982 00 982 00
685 6 Telkom 794 00 794 00 Telephone
686 8 H. Behr 6 239 00 6 239 00
687 10 Cash 300 00 300 00
688 25 M. Koen 5 347 00 5 347 00
689 27 R. Baron 2 556 00 2 556 00 Salaries
690 28 Cash 300 00 300 00
691 30 FBC 1 943 00 1 943 00
21 761 00 2 925 00 900 00 11 586 00 6 350 00

137
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 8.6 (continued)

SESAME BANK
Bank Statement
Takalani
Account Number: 84697236521

Page Number: 1 OF 1
Transaction Transaction
Description Amount: Amount: Date Balance
Debit(–) Credit(+)
Balance brought forward 20.1/06/01 7 302.00
Credit 4 614.00 20.1/06/04 11 916.00
Cheque 678 2 651.00 20.1/06/07 9 265.00
Cheque 682 3 000.00 20.1/06/08 6 265.00
Credit 9 883.00 20.1/06/10 16 148.00
Cheque 683 300.00 20.1/06/14 15 848.00
Cheque 687 300.00 20.1/06/14 15 548.00
Credit 8 785.00 20.1/06/15 24 333.00
LS Takalani 400.00 20.1/06/16 23 933.00
Credit 9 382.00 20.1/06/18 33 315.00
Cheque 685 -94.00 20.1/06/22 32 321.00
Cheque 689 2 556.00 20.1/06/27 29 765.00
Cheque 686 6 239.00 20.1/06/27 23 526.00
Unpaid cheque 3 492.00 20.1/06/28 20 034.00
Tax levy 29.00 20.1/06/28 20 005.00
Credit 3 200.00 20.1/06/29 23 205.00
Interest on current
64.00 20.1/06/29 23 269.00
account
Service fee 86.00 20.1/06/30 23 183.00
Cheque 690 300.00 20.1/06/30 22 883.00

Notes:
1. Cheque 678 was incorrectly entered in the Cash Payments Journal of May 20.1 as
R2 561,00.
2. The credit on the bank statement on 29/06/20.1 was an incorrect entry. The deposit was
made on another client’s account by the bank.
3. The amount of R400 on 16/06/20.1 was a debit order in respect of a debit order for the
owner’s wife.
4. Cheque 685 was incorrectly entered in the Cash Payments Journal. The amount on the bank
statement was correct.
5. The unpaid cheque on 28/06/20.1 was received from M Moon and was dishonoured due to
insufficient funds in the drawer’s account.

138
 Module 8: Bank reconciliation

Activity 8.6 (continued)

Cash Receipts Journal of Takalani – June 20.1 CRJ5
Doc. Day Details Fol. Analysis Bank Sales Trade Sundry Accounts
No. of Receivables
Receipts Control Amount Fol. Details

30 Totals b/d 37 789 00 26 104 00 8 185 00 3 500 00

B/S Sesame 64 00 64 00 Interest Received

Bank on Current Account

37 853 00 26 104 00 8 185 00 3 564 00

Cash Payments Journal of Takalani – June 20.1 CPJ7

Doc. Day Name of Payee Fol. Bank Purchases Wages Sundry Accounts
No.
Amount Fol. Details

30 Totals b/d 21761 00 2 925 00 900 00 3 350 00

B/S Correction: Cheque 90 00 90 00

678 (078)

B/S Telkom: Cheque 685 200 00 200 00 Telephone

B/S S Takalani 400 00 400 00 Drawings

B/S W Wallie (r/d) 3 492 00 3 492 00 Trade Receivables

Control

B/S Sesame Bank 115 00 115 00 Bank charges

26 058 00 2 925 00 900 00 7 647 00

075 078 > 675 678

M Moon W Wallie (unpaid cheque)

General Ledger of Takalani

BANK

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Balance b/d 8605 00 20.1 30 Total Payments CPJ 26 058 00

Jun Jun

31 Total Receipts CRJ 37 853 00 Balance c/d 20 400 00

46 458 00 46 458 00

Jul 1 Balance b/d 20 400 00

Bank Reconciliation Statement on 30 June 20.1

Debit Credit
Credit balance as per bank statement 22 883 00
Credit outstanding deposit 9 739 00
Debit outstanding cheques:
No. 675 (075) 750 00
No. 684 982 00
No. 688 5 347 00
No. 691 1 943 00
Debit incorrect entry on bank statement 3 200 00
Debit balance according to bank account 20 400 00
32 622 00 32 622 00

139
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 8.7 SB page 151

Use the information of Aurora Pet Shop to:
1. Make supplementary entries in the Cash Receipts Journal and Cash Payments Journals of
Aurora Pet Shop; close off the journals.
2. Post to the bank account in the General Ledger and balance the bank account.
3. Draw up a Bank Reconciliation Statement on 31 October 20.1.

Notes:
1. The Bank account showed a debit balance of R1 517,80 on 1 October 20.1.
2. The bank statement showed a credit balance of R278,13 on 31 October 20.1.
3. Cash Receipts Journal – column totals on 31 October 20.1:
Bank R6 484,40
Trade Receivables Control R6 158,20
Sundry accounts R326,20
4. Cash Payments Journal – column totals on 31 October 20.1:
Bank R6 553,10
Trade Receivables Control R-
Trade Payables Control 5 931,80
Sundry accounts R736,50
5. The bank debited Aurora Pet Shop’s current account with the following:
Credit card levy R2,50
Service fees R19,30
Cheque books R4,00
Deposit book R7,25
6. A deposit of R1 836,45 has not yet been credited on the bank statement.
7. A cheque for R46,30 received from debtor, K Ellis, was dishonoured by the bank due to
insufficient funds.
8. The following cheques have not yet been presented for payment.
No. 321 – R112,18
No. 345 – R220,60
No. 348 – R184,75
9. The bank debited the account of Aurora Pet Shop’s with R78,00 (cheque 862). The cheque
was cashed by Aurora Hair Salon.
10. The bank statement showed a debit order for R66,00 for insurance premium to Cinderella.
11. The bank statement showed a deposit for R360,00. It was paid directly into the bank
account of Aurora Pet Shop by S White for rent.
12. The bank statement showed a credit for interest on the current account, R11,30.

140
 Module 8: Bank reconciliation

Activity 8.7 (continued)

Cash Receipts Journal of Aurora Pet Shop – October 20.1 CRJ5
Doc. Day Details Fol. Analysis of Bank Sales Trade Sundry Accounts
No. Receipts Control Receivables
Control Amount Fol. Details

31 Totals b/d 6 484 40 6158 20 326 20

B/S S White 360 00 360 00 Rent received

B/S “Bank” 11 30 11 30 Interest Received

6 855 70 6,158 20 697 50

Cash Payments Journal of Aurora Pet Shop – October 20.1 CPJ7

Doc. Day Name of Fol. Bank Trade Trade Sundry Accounts
No. Payee Receivables Payables
Control Amount Fol. Details
Control

31 Totals 6 553 10 5 931 80 736 50

B/S “Bank” 33 05 33 05 Bank charges

B/S K Ellis (R/d) 46 30 46 30

B/S Cinderella 66 00 66 00 Insurance

6 698 45 46 30 5 931 80 835 55

General Ledger of Takalani

BANK

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Balance b/d 1 517 80 20.1 31 Total Payments CPJ 6 698 45

Oct Oct

31 Total Receipts CRJ 6 855 70 Balance c/d 1 675 05

8 373 50 8 373 50

Nov 1 Balance b/d 1 675 05

Bank Reconciliation Statement on 31 October 20.1

Debit Credit

Credit balance as per bank statement 278 13

Credit outstanding deposit 1 836 45

Debit outstanding cheques:

No. 321 112 18

No. 345 220 60

No. 348 184 75

Credit incorrect entry on bank statement 78 00

Debit balance according to bank account 16 75 05

2 192 58 2 192 58

141
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 8.8 SB page 155

Use the information of Faadiel’s Foods to:
1. Make supplementary entries in the Cash Receipts Journal and Cash Payments Journals of
Aurora Pet Shop; close off the journals.
2. Post to the Bank account in the General Ledger and balance the Bank account.
3. Draw up a Bank Reconciliation Statement on July 20.1.

Notes:
1. The bank account had a debit balance of R33 400 on 1 July 20.1.
2. The bank statement showed a credit balance of R30 270 on 31 July 20.1.
3. Cash Receipts Journal – column totals on 31 October 20.1:
a) Bank R21 010
b) Trade Receivables Control R6 890
c) Sales R8 560
d) Sundry accounts R5 560
4. Cash Payments Journal – column totals on 31 October 20.1:
a) Bank R30 500
b) Trade Receivables Control R-
c) Trade Payables Control R8 520
d) Purchases R5 460
e) Sundry accounts R16 520
5. The bank debited Aurora Pet Shop’s current account with the following:
a) Tax levy R35
b) Service fees R425
c) Cheque books R40
d) Interest on overdraft R200
6. A deposit of R8 450 has not yet been credited on the bank statement.
7. A cheque for R1 600 received from debtor, A Bruyns, was dishonoured by the bank due to
insufficient funds.
8. The following cheques have not yet been presented for payment.
No. 895 – R9 390
No. 899 – R5 320
9. The bank statement showed a debtor order of R2 000 in favour of Jet. This is for the
owner’s personal clothing account.
10. The bank statement showed a stop order for R6 500 for insurance premium to Lamsun.
11. The bank statement showed a deposit for R3 700. It was paid directly into the bank
account of Faadiel’s Foods by M Meyer for rent.
12. Cheque no. 980 to the value of R7 200 got lost in the post. It was sent to Game as part
settlement of our account. Cancel the cheque, a new one will be issued in August 20.1.

142
 Module 8: Bank reconciliation

Activity 8.8 (continued)

Cash Receipts Journal of Faadiels Foods – July 20.1 CRJ5
Doc. Day Details Fol. Analysis of Bank Sales Trade Sundry Accounts
No. Receipts Receivables
Control Amount Fol. Details

31 Totals b/d 21 010 00 8 560 00 6 890 00 5 560 00

B/S M Meyer 3 700 00 3 700 00 Rent income

B/S Game: Cancel 7 200 00 7 200 00 Trade Payables

cheque 980 Control

31 910 00 8 560 00 6 890 00 16 460 00

Cash Payments Journal of Faadiel’s Foods – July 20.1 CPJ7

Doc. Day Name of Payee Fol. Bank Purchases Trade Trade Sundry Accounts
No. Receivables Payables
Control Amount Fol. Details
Control

31 Totals 30 500 00 5 460 00 8 520 00 16 520 00

B/S “Bank” 500 00 500 00 Bank charges

B/S “Bank” 200 00 200 00 Interest on overdraft

B/S A Bruyns (R/d) 1 600 00 1 600 00 Trade Receivables

Control

B/S Jet 2 000 00 2 000 00 Drawings

B/S Lamsun 6 500 00 6 500 00 Insurance

41 300 00 5 460 00 1 600 00 8 520 00 25 720 00

General Ledger of Faadiel's Foods

BANK

Date Details Fol. Amount Date Details Fol. Amount

20.1 1 Balance b/d 33 400 00 20.1 30 Total Payments CPJ5 41 300 00

Jul Jul

31 Total Receipts CRJ5 31 910 00 Balance c/d 24 010 00

65 310 00 65 310 00

Aug 1 Balance b/d 24 010 00

Bank Reconciliation Statement on 30 June 20.1

Debit Credit

Credit balance as per bank statement 30 270

Credit outstanding deposit 8 450

Debit outstanding cheques:

No. 895 9 390

No. 899 5 320

Debit balance according to bank account 24 010

38 720 38 720

143
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 8.9 SB page 156

The following information appeared in the books Fiekie Cars.

Required:
1. Make supplementary entries in the Cash Journals where necessary.
2. Close off the Cash Journals, then draw up and balance the Bank account.
3. Compile a Bank Reconciliation Statement on 31 May 20.1.

DETAILS

Bank Reconciliation Statement on 30 April 20.1

Debit Credit
Debit balance as per bank statement 210 300 00
Debit cheques not presented for payment:
No. 654 15 000 00
No. 739 9 250 00
Credit balance according to bank account 234 550 00
234 550 00 234 550 00

Cash Receipts Journal of Fiekie Cars – May 20.1 CRJ6

Trade Sundry Accounts
Doc. Analysis of
Day Details Fol. Bank Sales Receivables
No. Receipts Amount Fol. Details
Control
CRR 5 Sales 120 000 00 120 000 00 120 000 00
CRR 8 Sales 80 000 00 80 000 00 80 000 00

R 64 28 K. Davids 5 450 00 5 450 00 5 450 00

CRR 30 Sales 135 000 00 135 000 00 135 000 00

Cash Payments Journal of Fiekie Cars – May 20.1 CPJ6

Trade Trade Sundry Accounts
Doc. Name of
Day Fol. Bank Purchases Wages Receivables Payables
No. Payee Amount Fol. Details
Control Control
316 5 Nadia Prop. 1 360 00 1 360 00 Rent expense

318 9 Hyper 115 930 00 115 930 00

318 10 Easy Fit 12 670 00 12 670 00
320 19 Toyota 90 840 00 90 840 00
321 22 T. Thomas 1 600 00 1 600 00 151 00 Advertising

322 24 N. Schuller 5 770 00 5 770 00 Salaries

144
 Module 8: Bank reconciliation

Activity 8.9 (continued)

FINN BANK
Bank Statement
Fiekie Cars
Account Number: 58469723621

Page Number: 1 OF 1

Transaction Amount: Transaction Amount:

Description Date Balance
Debit(–) Credit(+)
Balance brought
forward 20.1/05/01 -210 300.00
Overdraft cost 190.00 20.1/05/04 -210 490.00
Cheque 900 3 510.00 20.1/05/07 -214 000.00
Cheque 739 9 250.00 20.1/05/08 -223 250.00
Credit 120 000.00 20.1/05/10 -103 250.00
Cheque 740 1 360.00 20.1/05/14 -104 610.00
Credit 80 000.00 20.1/05/14 -24 610.00
Service fee 880.00 20.1/05/15 -25 490.00
Cheque 742 12 670.00 20.1/05/16 -38 160.00
Cheque book 40.00 20.1/05/20 -38 200.00
Credit 6 700.00 20.1/05/23 -31 500.00
Cheque 743 90 840.00 20.1/05/26 -122 340.00
Cheque dishonoured 2 750.00 20.1/05/26 -125 090.00
Cheque 745 5 770.00 20.1/05/27 -130 860.00
Interest on overdraft 1 630.00 20.1/05/27 -132 490.00
Credit 5 450.00 20.1/05/28 -127 040.00
Saam Insurance 10 200.00 20.1/05/29 -137 240.00
Vodafone 1 290.00 10../05/30 -138 530.00
Tax levy 70.00 10../05/31 -138 600.00

Notes:
1. Cheque No. 900 for R3 510 withdrawn by Fuzzy Cars, appeared on the bank statement on
Fiekie Cars.
2. The credit entry on 27/05/20.1 was for a deposit made by Finn Bank directly into the
business current account for interest received on a savings account.
3. The bank statement showed an unpaid cheque of R2 750 that was received from J van Zyl,
a debtor, on 25 April 20.1 and dishonoured due to insufficient funds.
4. The debit entry on 29/05/20.1 was for a debit order for Insurance.
5. The debit entry on 30/05/20.1 for Vodafone was for the payment of the owner’s cell phone.
6. Cheque No. 654 was sent to Pitstop as settlement of account. It got lost and must be
cancelled. A new cheque will be issued.

145
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 8.9 (continued)

Cash Receipts Journal of Fiekie Cars – May 20.1 CRJ5
Doc. Day Details Fol. Analysis of Bank Sales Trade Sundry Accounts
No. Receipts Receivables
Control Amount Fol. Details

31 Totals b/d 340 450 00 335 000 00 5 450 00

B/S Finn Bank 6 700 00 6 700 00 Interest Received
on Savings
Account
B/S Pitstop (Cancel 15 000 00 15 000 00 Trade Payables
cheque 654) Control
362 150 00 335 000 00 5 450 00 21 700 00

Cash Payments Journal of Fiekie Cars – May 20.1 CPJ7

Doc. Day Name of Payee Fol. Bank Purchases Trade Sundry Accounts
No. Payables
Amount Fol. Details
Control
31 Totals 228 170 00 206 770 00 14 270 00 7 281 00

B/S Finn Bank 1 180 1 180 Bank charges

Interest on
B/S Finn Bank 1 630 00 1 630 00
overdraft
Trade Receivables
B/S J van Zyl (R/d) 2 750 00 2 750 00
Control
B/S Saam Insurance 10 200 00 10 200 00 Insurance
B/S Vodafone 1 290 00 1 290 00 Drawings

245 220 00 206 770 00 2 750 00 14 270 00 21 581 00

General Ledger of Fiekie Cars

BANK

Date Details Fol. Amount Date Details Fol. Amount

20.1 31 Total Receipts CRJ 362 150 00 20.1 1 Balance b/d 234 550 00
May May

31 Balance c/d 117 620 00 31 Total Payments CPJ 245 220 00

479 770 00 479 770 00
Jun 1 Balance b/d 117 620 00

Bank Reconciliation Statement on 31 May 20.1

Debit Credit

Debit balance as per bank statement 138 600

Credit outstanding deposit 135 000

Debit outstanding cheques:

No. 318 115 930

No. 321 1 600

Credit incorrect entry on bank statement 3510

Credit balance according to bank account 117 620

256 130 256 130

146
 Module 8: Bank reconciliation

Summative Assessment 1 SB page 158

Use the information obtained from the books of Vincent Printers to complete the following:

1. Make the SUPPLEMENTARY ENTRIES in the Cash Book on 31 July 20.1

Close off the Cash Book on 31 July 20.1.
2. Prepare the BANK RECONCILIATION STATEMENT on 31 July 20.1

Information
1. The Cash Book had a debit balance of R290 900 on 1 July 20.1
2. A comparison of the bank statement with the Cash Book on 31 July 20.1 revealed the
following differences:
a) The bank statement showed a credit balance of R298 640.
b) The following cheques had not yet been presented for payment:
No. 771 R2 900
No. 776 R23 600
No. 780 R4 150
c) Verna Grey deposited R8 400 directly into the current account of the business in
payment of his account.
d) The bank had debited the current account of Vincent Printers with the following
amounts:
Cost of a cheque book R80
Service fees R620
Tax levies R160
Interest on overdraft R150
e) A credit entry of R13 800 was in respect of a deposit that Angela made directly on
their account, but it appeared on the business bank statement.
f) A cheque of R5 400, received from a debtor, Ulande, had been dishonoured on
account of insufficient funds.
g) The bank had not yet credited a deposit of R30 500, which was made on 31 July 20.1.
h) The bank statement showed a monthly stop order for R6 000 in favour of ABSA bank.
This was to pay the owner’s vehicle instalment.
i) The bank statement showed a debit order of R2 500 in favour of Old Mutual as
payment of insurance.
j) A cheque to the value of R8 700, withdrawn out of his personal current account by the
owner, appears on the business bank statement.
k) Cheque no. 768 to the value of R9 000, was sent to Bears as part payment of our
account. It got lost in the post and must be cancelled. A new cheque will be posted.

147
 N4 Introductory Financial Accounting | Lecturer Guide

Summative Assessment 1 (continued)

CASH BOOK OF VINCENT PRINTERS – JULY 20.1
Receipts CB5
Doc. Day Details Analysis of Bank Sales Debtors Sundry Accounts
No. receipts Amount Fol. Details

1 Balance 290 900 00 290 900 00

B/S 31 V Grey 8 400 00 8 400 00

B/S 31 Bears (Ch 768) 9 000 00 9 000 00 Trade Payables

Control
308 300 00

Aug 1 Balance 293 390 00 293 390 00

CASH BOOK OF VINCENT PRINTERS – JULY 20.1

Payments
Doc. Day Payee/ Bank Creditors Purchases Drawings Sundry Accounts
No. Details Control Amount Fol. Details

B/S 31 (Bank) 860 00 860 00 Bank charges

B/S 31 (Bank) 150 00 150 00 Interest on

overdraft
B/S 31 Ulande (R/D) 5 400 00 5 400 00 Trade Receivables
Control
B/S 31 ABSA Bank 6 000 00 6 000 00

B/S 31 Old Mutual 2 500 00 2 500 00 Insurance

31 Balance c/d 293 390 00 293 390 00

308 300 00

Bank Reconciliation Statement as at 31 July 20.1

Debit Credit

Credit balance according to bank statement 298 640

Debit outstanding cheques:

No. 771 2 900

776 23 600

780 4 150

Debit error on bank statement 13 800

Credit outstanding deposit 30 500

Credit error on bank statement 8 700

Debit balance according to Cash Book 293 390

337 840 337 840

148
 Module 8: Bank reconciliation

Summative Assessment 2 SB page 159

Use the information obtained from the books of Caren’s Watches to complete the following:
1. Make the SUPPLEMENTARY ENTRIES in the Cash Book on 31 August 20.1.
Close off the Cash Book on 31 August 20.1.
2. Prepare the BANK RECONCILIATION STATEMENT on 31 August 20.1.

Information

Bank Reconciliation Statement on 31 July 20.1

Details Debit Credit

Credit balance as per bank statement 123 985

Debit outstanding cheques:

No. 550 600

No. 592 3 685

No. 603 940

No. 605 365

Debit Balance as per Cash Book 118 395

123 985 123 985

BANK STATEMENT
BANKFORRSA BANK STATEMENT
Description Debit (–); Credit (+) Date Balance
Balance 31/07/20.1 123 985
Cheque No. 603 940 01/08/20.1 123 045
Service Fee 180 03/08/20.1 122 865
Cheque No. 609 2 500 08/08/20.1 120 365
Credit 2 785 10/08/20.1 123 150
Tax levy 175 13/08/20.1 122 975
Cheque No. 592 3 685 16/08/20.1 119 290
Cheque dishonoured 800 19/08/20.1 118 490
Cheque No. 610 120 000 22/08/20.1 -1 510
Overdraft cost 250 22/08/20.1 -1 760
Cheque No. 611 4 200 22/08/20.1 -5 960
Credit 6 125 23/08/20.1 165
Cheque No. 612 960 27/08/20.1 -795
Credit 2 000 29/08/20.1 1 205
Interest on overdraft 190 29/08/20.1 1 015
Credit 7 955 30/08/20.1 8 970
Old Mutual 2 600 31/08/20.1 6 370
Interest +80 31/08/20.1 6 850
Credit 1 850 31/08/20.1 8 700
Tax levy 80 31/08/20.1 8 620
Cheque No. 705 730 31/08/20.1 7 890

149
 N4 Introductory Financial Accounting | Lecturer Guide

Summative Assessment 2 (continued)

Additional information
1. The bank statement showed an unpaid cheque of R800 that was received on 30 July 20.1
from Miscah Arend and dishonoured on account of insufficient funds. It was for a part
payment on his account.
2. The credit entry on 29 August 20.1 was in respect of a deposit that Diesel made directly into
the firm’s current account. This was for commission earned by Caren’s Watches.
3. The debit entry on 31 August 20.1 was made in respect of a debit order in favour of Old
Mutual for insurance of the owner’s son’s car.
4. The credit entry on 31 August 20.1 was in respect of a deposit that the owner, Ms. C
Matthews, made directly on her account, but it appeared on the business bank statement.
5. Cheque number 705, for R730, withdrawn by the head office on their account, appeared on
the business bank statement.
6. Cheque number 550 is sent on 20 February 20.1 to The Argus for the payment of an
advertisement.

CASH BOOK OF CAREN’S WATCHES – AUGUST 20.1

DEBIT CB3

Doc. Day Details Analysis of Bank Sales Debtors Sundry Accounts

No. receipts Amount Fol. Details

1 Balance 118 395 118 395

761 4 G Berry 2 785 2 785 2 785

CRS 23 Sales 6 125 6 125 6 125

CRS 25 Sales 3 155 3 155

CRS 30 Sales 7 955 7 955 4 800

762 31 I Burger 5 000 5 000 5 000 Rent received

Commission
B/S 31 Diesel 2 000 2 000
income
Interest
B/S 31 Bank for RSA 480 480 on current
account
The Argus
B/S 31 600 600 Advertisement
(chq. 550)
Balance 34 595 34 595

177 935

150
 Module 8: Bank reconciliation

Summative Assessment 2 (continued)

CASH BOOK OF CAREN’S WATCHES – AUGUST 20.1
CREDIT
Doc. Day Payee/ Bank Trade Purchases Wages Sundry Accounts
No. Details Payables Amount Fol. Details
Control
609 8 Fossil 2 500 2 500

610 22 Ford 120 000 120 000 Vehicles

611 Telkom 4 200 4 200 Telephone

612 27 P Case 960 960

613 29 Ginger 28 400 28 400

614 30 Computer Shop 17 600 17 600 Equipment

Trade
B/S 31 M. Arend (R/D) 800 800 Receivables
Control
B/S 31 Old Mutual 2 600 2 600 Drawings
Bank
B/S 31 Bank for RSA 430 430
charges
B/S 31 Bank for RSA 255 255 Tax levy
Interest on
B/S 31 Bank for RSA 190 190
overdraft
177 935

Sep 1 Balance 34 595 34 595

Bank Reconciliation Statement as at 31 August 20.1

Debit Credit

Credit balance according to bank statement 7 890

Credit outstanding deposit 5 000

Debit outstanding cheques:

No. 605 365

613 28 400

614 17 600

Debit error on bank statement 1850

Credit error on bank statement 730

Credit balance according to Cash Book 34 595

48 215 48 215

151
 N4 Introductory Financial Accounting | Lecturer Guide

Summative Assessment 3 SB page 160

Use the information obtained tram the books of LAKEN’ TOTS to complete the following:

1. Make the supplementary entries in the Cash Receipts Journal and the Cash Payments
Journal on 31 July 20.1 Close off only the bank column totals in BOTH the journals on
31 July 20.1.
2. Post to the bank account in the General Ledger and balance the Bank Account.
3. Prepare the Bank Reconciliation Statement on 31 July 20.1.

Information
1. The bank account had a debit balance at R33 400 on 1 July 20.1.
2. A comparison of the bank statement from Emotions Bank with the Cash Receipts Journal
and the Cash Payments Journal on 31 July 20.1 revealed the following differences:
a) The bank statement showed a credit balance of R30 270.
b) The bank had not yet credited a deposit of R8 450, which was made on 31 July 20.1.
c) The following cheques had not yet been presented for payment:
No. 985 R9 390
No. 989 R5 320
d) A cheque of R1 600, received from a debtor, W Clarke, had been dishonoured on
account of insufficient funds.
e) The bank had debited the current account of LAKEN’ TOTS with the following amounts:
Cost of a cheque book R35
Service tees R425
Tax levies R40
Interest on overdraft R200
f) The bank statement showed a monthly stop order for R6 500 in favour of Santam.
This was to pay the insurance.
g) Tashwald deposited R3 700 directly into the current account of LAKEN’ TOTS
in payment of his account
h) The Bank statement showed a debit order of R2 000 in favour of Gym. This is for
the owner’s personal gym account.
i) Cheque no. 980 to the value of R7 200 got lost in the post. It was sent to ATLAS CC
as part of settlement of our account. Cancel the cheque; a new one will be sent to
ATLAS CC.

152
 Module 8: Bank reconciliation

Summative Assessment 3 (continued)

CASH RECEIPTS JOURNAL LAKEN TOTS – JULY 20.1 CRJ4
Doc. Day Details Analysis of Bank Sales Debtors Sundry Accounts
No. receipts Control Amount Fol. Details

31 TOTALS 21 010 8 560 6 890 5 560

B/S 31 Tashwald 3 700 3 700

Atlas CC Trade Payables
B/S 31 7 200 7 200
(Ch 980) Control
31 910

CASH PAYMENTS JOURNAL LAKEN TOTS – JULY 20.1 CPJ4

Doc. Day Payee/ Bank Creditors Purchases Debtors Sundry Accounts
No. Details Control Control
Amount Fol. Details

31 TOTALS 30 500 8 520 5 460 16 520

B/S 31 W Clarke (R/d) 1 600 1 600

Bank
B/S 31 Emotions Bank 500 500
charges
Interest on
B/S 31 Emotions Bank 200 200
overdraft
B/S 31 Santam 6 500 6 500 Insurance

B/S 31 Gym 2 000 2 000 Drawings

41 300

General Ledger of Laken Tots

BANK
Date Details Fol. Amount Date Details Fol. Amount

Jul 1 Balance b/d 33 400 Jul 31 Total payments CPJ 41 300

31 Total receipts CRJ 31 910 Balance c/d 24 010

65 310 65 310

Aug 1 Balance b/d 24 010

Bank Reconciliation Statement

Debit Credit

Credit balance according to bank statement 30 270

Credit outstanding deposit 8 450

Debit outstanding cheques:

No. 985 9 390

No. 989 5 320

Debit balance according to bank account 24 010

38 720 38 720

153
 N4 Introductory Financial Accounting | Lecturer Guide

Summative Assessment 4 SB page 161

Use the information obtained from the books of NINA’S PAINT SHOP to complete the following:

1. Make the supplementary entries in the Cash Receipts Journal and the Cash Payments
Journal on 31 July 20.1 Close off only the bank column totals in both the journals on
31 July 20.1.
2. Post to the bank account in the General Ledger and balance the bank account.
3. Prepare the Bank Reconciliation Statement on 31 July 20.1.

Information
1. The bank account had a debit balance of R21 900 on 1 July 20.1.
2. A comparison of the bank statement with the Cash Receipts Journal and the Cash
Payments Journal on 31 July 20.1 revealed the following differences:
a) The bank statement from Penny Bank showed a credit balance of R21 550.
b) The bank had not yet credited a deposit of R6 500, which was made on 31 July 20.1.
c) The following cheques had not yet been presented for payment:
No. 870 R1 650
No. 872 R3 400
d) A cheque of R2 800, received from a debtor, Serano Arend, had been dishonoured on
account of insufficient funds.
e) The bank had charged the current account of Nina’s Paint Shop with the following
amounts:
Cost of a cheque book R40
Service fees R370
Tax levies R30
Interest on overdraft R180
f) The bank statement showed the monthly stop order for R1 140 in favour of MTN.
This was to pay the telephone account.
g) Neno deposited R5 190 directly into the current account of Nina’s Paint Shop in
payment of his account.
h) The bank statement showed a debit order of R5 000 in favour of West bank. This is
the owner’s personal motor car instalment.
i) Cheque no. 810 to the value of R3 230 got lost in the post. It was sent to Zoe as part
settlement of our account. Cancel the cheque, a new one will be sent to Zoe.

154
 Module 8: Bank reconciliation

Summative Assessment 4 (continued)

CASH RECEIPTS JOURNAL NINA'S PAINT SHOP JULY 20.1 CRJ4
Doc. Day Details Analysis of Bank Sales Trade Sundry Accounts
No. receipts Receivables
Amount Fol. Details
Control
31 TOTALS 8 960 5 430 1 060 2 470

B/S 31 P Tsebo 5 190 5 190

3 230 Trade Payables
B/S 31 Zoe (ch.810) 3 230
Control
17 380

CASH PAYMENTS JOURNAL NINA’S PAINT SHOP – JULY 20.1 CPJ4

Doc. Day Payee/ Bank Creditors Purchases Trade Sundry Accounts
No. Details Control Receivables
Control Amount Fol. Details

31 BALANCE 6 720 2 350 3 890 480

B/S 31 S Arend (R/d) 2 800 2 800

Bank
B/S 31 Penny Bank 440 440
charges
Interest on
B/S 31 Penny Bank 180 180
overdraft
B/S 31 MTN 1 140 1140 Telephone

B/S 31 Westbank 5 000 5 000 Drawings

16 280

General Ledger of NINA’S PAINT SHOP

BANK
Date Details Fol. Amount Date Details Fol. Amount
Jul 1 Balance b/d 21 900 Jul 31 Total payments CPJ 47 420
20.1 20.1
31 Total receipts CRJ 52 860

Balance c/d 14 460

67 320 67 320

Aug 1 Balance b/d 14 460

Bank Reconciliation Statement as t 31 July 20.1

Debit Credit
Credit balance according to bank statement 21 550
Credit outstanding deposit 10 260
Debit outstanding cheques
No. 870 1 650
No. 872 3 400
Credit error on bank statement 580
Credit balance according to bank account 27 340
32 390 32 390

155
 N4 Introductory Financial Accounting | Lecturer Guide

Summative Assessment 5 SB page 162

GROUP ACTIVITY
Use the information obtained from the books of Daphne Dixon Stationers to complete the
following:

In Groups of 4 enter the following transactions:

• Make the supplementary entries in the CRJ and the CPJ on 31 August 20.1 Close off only
the bank column totals in both the journals on 31 August 20.1.
• Post to the bank account in the General Ledger and balance the bank account.
• Prepare the Bank Reconciliation Statement on 31 August 20.1.

After the groups draft on hardcopy, complete the entries electronically

• Enter the names of the group members as a header, align to the left.
• Groups can use any type of spreadsheet.
• Copy the layout of the Journals, General Ledger and Bank Reconciliation Statement from the
Student Workbook Summative Assessment 5.

INFORMATION
The bank account showed a debit balance of R27 900 on 1 August 20.1.

A comparison of the bank statement with the CRJ and the CPJ on 31 August 20.1 indicated the
following differences:
1. The bank statement showed a credit balance of R26 950.

2. The bank had not yet credited a deposit of R6 500, which was made on 31 August 20.1.

3. The following cheques had not yet been presented for payment:
No 125 R1 850
No 127 R3 200
No 130 R5 400

4. A cheque of R2 800, received from a debtor, Z. Gadudu, had been dishonoured on account
of insufficient funds.

5. ABSA Bank had charged the current account of Daphne Dixon Stationers with the following
amounts:
Cost of a cheque book R50
Service fees R360
Tax levies R40
Interest on overdraft R170

6. The bank statement showed the monthly stop order for R1 140 in favour of Local
Municipality for water & electricity.

7. Local School deposited R5 190 directly into the current account of Daphne Dixon
Stationers in payment of their account.

8. The bank statement showed a debit order of R5 000 in favour of ABSA Bank. This is the
owner’s personal house insurance instalment.

9. Cheque no 112 to the value of R3 230 got lost in the post. It was sent to Daphne Dixon
Printers as part payment of our account. Cancel the cheque, as an electronic transfer will
be made to them at a later stage.

10. A cheque drawn by Daphne Dixon Suppliers to the amount of R6 000 appeared on the bank
statement of the business.

156
 Module 8: Bank reconciliation

NOTE TO LECTURER:
Give the group marks for the following:
• Layout
• Appropriate Font use
• Alignment of numbers
• Spreadsheet used
• Overall Impression

CASH RECEIPT JOURNAL of DAPHNE DIXON STATIONERS for 31 August 20.1 CRJ8
Analysis Trade Trade Sundry accounts
Doc Day Details Fol. of Bank Sales Receivables Payables
receipts Control Control Amount Fol. Details
31 Totals 8 960 5 430 1 060 2 470
Local School  5 190  5 190 
Daphne Dixon Printers
3 230  3 230 
(cheq lost) 
17 380 

CASH PAYMENTS JOURNAL of DAPHNE DIXON STATIONERS for 31 August 20.1 CPJ8
Trade Trade Sundry accounts
Doc Day Details Fol. Bank Payables Purchases Receivables
Control Control Amount Fol. Details
31 Totals 6 720 2 350 3 890 480
Gadudu (R/D)  2 800  2 800 
ABSA Bank  450  450  Bank charges 
ABSA Bank  170  170  Interest on overdraft 
Municipality  1 140  1 140  Water & Electricity 
ABSA Bank  5 000  5 000  Drawings 
16 280 

Bank Account

Date Details Fol. Amount Date Details Fol. Amount

20.1 20.1
Balance b/d 27 900  Total payments CPJ8 16 280 
Aug 1 Aug 31

Total receipts CRJ8 17 380 

29 000
Balance c/d


45 280  45 280 

20.1
Balance b/d 29 000 
Sept 1

157
 N4 Introductory Financial Accounting | Lecturer Guide

Summative Assessment (continued)

Bank Reconciliation Statement of Daphne Dixon Stationers at 31 August 20.1

Fol. Debit Credit

Credit (favorable) balance as per
26 950 
Bank Statement
Credit outstanding deposits 6 500 
Debit outstanding cheques: 10 450 
Cheque No 125 R1 850 
Cheque No 127 R3 200 
Cheque No 130 R5 400 
Credit amount mistakenly debited by bank 6 000 
Debit amount mistakenly credited by bank
Debit (favourable) balance as per
29 000 
Bank account (new balance)
39 450  39 450 

158
 Module 9
Year End Procedures

After completing this module, students will be able to:

• Explain and execute the procedure regarding the calculation of the profit.
• Determine the opening inventory and the closing inventory using the periodic inventory system.
• Draw up the Trading account to determine the gross profit.
• Draw up the Profit and Loss account to determine the net profit/loss.
• Explain the relation between the final accounts and the Statement of Profit or Loss.
• Explain the purpose of the Statement of Financial Position.
• Draw up the Statement of Financial Position in vertical form and the applicable notes.
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 9.1 SB page 169

Required
1. Use the balances and totals from the given Trial Balance in the General Ledger of Azaad
Traders. Complete the following accounts only: Capital, Drawings, Trading inventory and all
the nominal accounts.
2. Close off all the nominal accounts to the Trading account and the Profit and Loss accounts.
3. Post the net profit/loss to the Capital account.
4. Close the Drawings account.
5. Balance all the necessary accounts.

Information
Trial Balance of Azaad Traders – 31 October 20.2.

Debit Credit
Balance Sheet accounts section
Capital B1 638 600 00
Drawings B2 52 600 00
Land and Buildings B3 260 000 00
Vehicles B4 208 400 00
Equipment B5 110 500 00
Inventory (01/11/20.1) B6 46 800 00
Bank B7 55 100 00
Trade Receivables Control B8 63 200 00
Petty Cash B9 900 00
Float B10 600 00
Trade Payables Control B11 35 800 00
Nominal Accounts section
Sales N1 620 400 00
Purchases N2 378 700 00
Carriage on Purchases N3 3 900 00
Rent income N4 15 000 00
Telephone N5 4 300 00
Maintenance N6 24 900 00
Wages and salaries N7 75 600 00
Water and Electricity N8 36 000 00
Packing material N9 1 600 00
Custom Duty N10 6 300 00
Fuel N11 5 100 00
Commission income N12 24 700 00
1 334 500 00 1 334 500 00

Additional information
The inventory on hand was valued at R53 400 after a physical stocktaking was done on
31 October 20.2.

160
 Module 9: Year End Procedures

Activity 9.1 (continued)

Capital B1

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.1
Oct 31 Drawings GJ 52 600 Nov 01 Balance b/d 638 600

Balance c/d 716 300 20.2 Profit & Loss

Oct 31 (Net Profit) GJ 130 300

768 900 768 900

20.2
Nov 01 Balance b/d 716 300

Drawings B2

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Oct 31 Balance b/d 52 600 Oct 31 Capital GJ 52 600

Inventory B5

Date Details Fol. Amount Date Details Fol. Amount

20.1 20.2
Nov 01 Balance b/d 46 800 Oct 31 Trading account GJ 46 800

20.2
Nov 01 Trading account GJ 53 400

Sales N1

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Oct 31 Trading account GJ 620 400 Oct 31 Total b/d 620 400

Purchases N2

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Oct 31 Total b/d 378 700 Oct 31 Trading account GJ 378 700

Carriage on Purchases N3

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Oct 31 Total b/d 3 900 Oct 31 Trading account GJ 3 900

Rent Received N4

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Oct 31 Profit & Loss GJ 15 000 Oct 31 Total b/d 15 000

Telephone N5

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Oct 31 Total b/d 4 300 Oct 31 Profit & Loss GJ 4 300

161
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 9.1 (continued)

Maintenance N6

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Oct 31 Total b/d 24 900 Oct 31 Profit & Loss GJ 24 900

Wages and salaries N7

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Oct 31 Total b/d 75 600 Oct 31 Profit & Loss GJ 75 600

Water and Electricity N8

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Oct 31 Total b/d 36 000 Oct 31 Profit & Loss GJ 36 000

Packing material N9

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Oct 31 Total b/d 1 600 Oct 31 Profit & Loss GJ 1 600

Custom Duty N10

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Oct 31 Total b/d 6 300 Oct 31 Trading account GJ 6 300

Fuel N11

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Oct 31 Total GJ 5 100 Oct 31 Profit & Loss b/d 5 100

Commission income N12

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Oct 31 Profit & Loss GJ 24 700 Oct 31 Total b/d 24 700

Trading account F1

Date Details Fol. Amount Date Details Fol. Amount

20.2 Opening inventory 20.2 Closing inventory

Oct 31 (01/11/20.1) GJ 46 800 Oct 31 (31/10/20.2) GJ 53 400

Purchases GJ 378 700 Sales GJ 620 400

Carriage on
purchases GJ 3 900

Custom Duty GJ 6 300

Profit and loss

(gross profit) GJ 238 100

673 800 673 800

162
 Module 9: Year End Procedures

Activity 9.1 (continued)

Profit and Loss account F2

Date Details Fol. Amount Date Details Fol. Amount

20.2 Telephone GJ 4 300 20.2 Trading account GJ 238 100

Oct 31 Oct 31 (gross profit)

Maintenance GJ 24 900 Rent received GJ 15 000

Wages and Salaries GJ 75 600 Commission

income GJ 24 700

Water and Electricity GJ 36 000

Packing material GJ 1 600

Fuel GJ 5 100

Capital
(net profit) GJ 130 300

277 800 277 800

163
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 9.2 SB page 170

Required
1. Use the balances and totals from the given Trial Balance in the General Ledger of Tracey
Traders. Complete the following accounts only: Capital, Drawings, Trading inventory and all
the nominal accounts.
2. Close off all the nominal accounts to the Trading account and the Profit and Loss accounts.
3. Post the net profit/loss to the Capital account.
4. Close the Drawings account.
5. Balance all the necessary accounts.

Information
Trial Balance of Tracey Traders – 31 August 20.2

DEBIT CREDIT
Balance Sheet accounts section
Capital B1 315 200 00
Drawings B2 48 600 00
Land and Buildings B3 107 000 00
Equipment B4 110 500 00
Vehicle B5 60 000 00
Fixed deposit: Save Bank (10%) B6 40 000 00
Trading inventory (01/09/20.1) B7 23 800 00
Bank B8 32 100 00
Trade Receivables Control B9 2 400 00
Petty Cash B10 300 00
Float B11 700 00
Loan: Shark Bank (15%) B12 12 000 00
Trade Payables Control B13 12 200 00
Nominal Accounts section
Sales N1 330 300 00
Purchases N2 138 700 00
Carriage on Purchases N3 1 900 00
Rent income N4 12 000 00
Import duty N5 5 400 00
Rent expense N6 42 000 00
Wages and salaries N7 48 000 00
Water and Electricity N8 3 200 00
Insurance N9 21 900 00
Custom Duty N10 1 300 00
Carriage on sales N11 2 400 00
Commission income N12 8 500 00
690 200 00 690 200 00

Additional information
The inventory was valued at R27 600 after a physical stocktaking was done on
31 August 20.2.

164
 Module 9: Year End Procedures

Activity 9.2 (continued)

BALANCE SHEET ACCOUNTS SECTION

Capital B1

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.1
Aug 31 Drawings GJ 48 600 Sep 01 Balance b/d 315 200

Balance c/d 356 400 20.2 Profit & Loss

Aug 31 (Net Profit) GJ 89 800

405 000 405 000

20.2
Sep 01 Balance b/d 356 400

Drawings B2

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Aug 31 Balance b/d 48 600 Aug 31 Capital GJ 48 600

Trading inventory B7

Date Details Fol. Amount Date Details Fol. Amount

20.1 20.2
Sep 01 Balance b/d 23 800 Aug 31 Trading account GJ 23 800

20.2
Sep 01 Trading account GJ 27 600

Sales N1

Date Details Fol. Amount Date Details Fol. Amount

20.2 GJ 20.2
Aug 31 Trading account 330 300 Aug 31 Total b/d 330 300

330 300 330 300

Purchases N2

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Aug 31 Total b/d 138 700 Aug 31 Trading account GJ 138 700

Carriage on Purchases N3

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Aug 31 Total b/d 1 900 Aug 31 Trading account GJ 1 900

Rent Received N4

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Aug 31 Profit & Loss GJ 12 000 Aug 31 Total b/d 12 000

165
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 9.2 (continued)

Import duty N5

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Aug 31 Total b/d 5 400 Aug 31 Trading account GJ 5 400

Rent expense N6

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Aug 31 Total b/d 42 000 Aug 31 Profit & Loss GJ 42 000

Wages and salaries N7

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Aug 31 Total b/d 48 000 Aug 31 Profit & Loss GJ 48 000

Water and Electricity N8

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Aug 31 Total b/d 3 200 Aug 31 Profit & Loss GJ 3 200

Insurance N9

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Aug 31 Total b/d 21 900 Aug 31 Profit & Loss GJ 21 900

Custom Duty N10

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Aug 31 Total b/d 1 300 Aug 31 Trading account GJ 1 300

Carriage on sales N11

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Aug 31 Total GJ 2 400 Aug 31 Profit & Loss b/d 2 400

Discount received N12

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Aug 31 Profit & Loss GJ 8 500 Aug 31 Total b/d 8 500

166
 Module 9: Year End Procedures

Activity 9.2 (continued)

Trading account F1

Date Details Fol. Amount Date Details Fol. Amount

20.2 Opening inventory 20.2 Closing inventory

Aug 31 (01/09/20.2) GJ 23 800 Aug 31 (31/08/20.2) GJ 27 600

Purchases GJ 138 700 Sales GJ 330 300

Carriage on
purchases GJ 1 900

Custom Duty GJ 1 300

Import Duty GJ 5 400

Profit and loss

(gross profit) GJ 186 800

357 900 357 900

Profit and Loss account F2

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2 Trading account

Aug 31 Rent expense GJ 42 000 Aug 31 (gross profit) GJ 186 800

Wages and Salaries GJ 48 000 Rent income GJ 12 000

Water and Electricity GJ 3 200 Commission income GJ 8 500

Insurance GJ 21 900

Carriage on sales GJ 2 400

Capital
(net profit) GJ 89 800

207 300 207 300

167
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 9.3 SB page 171

Required
1. Use the balances and totals from the given Trial Balance in the General Ledger of Mariams
Movers. Complete the following accounts only: Capital, Drawings, Trading inventory and all
the nominal accounts.
2. Close off all the nominal accounts to the Trading account and the Profit and Loss accounts.
3. Post the net profit/loss to the Capital account.
4. Close the Drawings account.
5. Balance all the necessary accounts.

Information
Trial Balance of Mariams Movers – 30 November 20.2

DEBIT CREDIT
Balance Sheet accounts section
Capital B1 300 000 00
Drawings B2 40 500 00
Land and Buildings B3 38 000 00
Vehicles B4 55 000 00
Equipment B5 45 000 00
Trading Inventory (01/12/20.1) B6 90 200 00
Trade Receivables Control B7 50 200 00
Bank B8 9 750 00
Petty Cash B9 500 00
Cash Float B10 800 00
Trade Payables Control B11 6 250 00
Nominal Accounts section
Sales N1 299 900 00
Purchases N2 190 400 00
Import taxes N3 2 600 00
Commission income N4 18 700 00
Telephone and Internet N5 7 800 00
Rent expense N6 39 500 00
Water and Electricity N7 4 100 00
Accounting fees N8 3 400 00
Bank charges N9 1 200 00
Salaries N10 65 400 00
634 600 00 634 600 00

Additional information
The inventory was valued at R27 600 after a physical stocktaking was done on
30 November 20.2.

168
 Module 9: Year End Procedures

Activity 9.3 (continued)

Capital B1

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Nov 30 Drawings GJ 40 500 Dec 01 Balance b/d 300 000

Profit & Loss

(Net loss) GJ 58 400

Balance c/d 201 100

300 000 300 000

20.2
Dec 01 Balance b/d 201 100

Drawings B2

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Nov 30 Balance b/d 40 500 Nov 30 Capital GJ 40 500

Trading Inventory B5

Date Details Fol. Amount Date Details Fol. Amount

20.1 20.2
Dec 01 Balance b/d 90 200 Nov 30 Trading account GJ 90 200

20.2
Dec 01 Trading account GJ 27 600

Sales N1

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Nov 30 Trading account GJ 299 900 Nov 30 Total b/d 299 900

Purchases N2

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Nov 30 Total b/d 190 400 Nov 30 Trading account GJ 190 400

Import taxes N3

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2 GJ
Nov 30 Total b/d 2 600 Nov 30 Trading account 2 600

Commission Income N4

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Nov 30 Profit & Loss GJ 18 700 Nov 30 Total b/d 18 700

Telephone and Internet N5

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Nov 30 Total b/d 7 800 Nov 30 Profit & Loss GJ 7 800

169
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 9.3 (continued)

Rent expense N6

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Nov 30 Total b/d 39 500 Nov 30 Profit & Loss GJ 39 500

Water and Electricity N7

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Nov 30 Total b/d 4 100 Nov 30 Profit & Loss GJ 4 100

Discount granted N8

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Nov 30 Total b/d 3 400 Nov 30 Profit & Loss GJ 3 400

Bank charges N9

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Nov 30 Total b/d 1 200 Nov 30 Profit & Loss GJ 1 200

Salaries N10

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2
Nov 30 Total b/d 65 400 Nov 30 Profit & Loss GJ 65 400

Trading account F1

Date Details Fol. Amount Date Details Fol. Amount

20.2 Opening inventory 20.2 Closing inventory

Nov 30 (01/12/20.2) GJ 90 200 Nov 30 (30/11/20.2) GJ 27 600

Purchases GJ 190 400 Sales GJ 299 900

Import taxes GJ 2 600

Profit and loss

(gross profit) GJ 44 300

327 500 327 500

170
 Module 9: Year End Procedures

Activity 9.3 (continued)

Profit and Loss account F2

Date Details Fol. Amount Date Details Fol. Amount

20.2 Telephone and 20.2 Trading account

Nov 30 Internet GJ 7 800 Nov 30 (gross profit) GJ 44 300

Rent expense Commission

GJ 39 500 income GJ 18 700

Water and Electricity GJ 4 100 Capital

(Net loss) GJ 58 400

Accounting fees GJ 3 400

Bank charges GJ 1 200

Salaries GJ 65 400

121 400 121 400

171
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 9.4 SB page 173

Use the details of Activity 9.1 to compile a Statement of Profit or Loss for Azaad Traders on
31 October 20.2.

Statement of Profit or Loss for Azaad Traders for the year ended 31 October 20.2

Sales for the year 620 400

Less: Cost of sales (382 300)

Opening inventory (01/11/20.1) 46 800

Plus: Purchases 378 700

Carriage on Purchases 3 900

Import taxes –

Custom Duty 6 300

Less: Closing inventory (31/10/20.2) (53 400)

Gross profit for the year 238 100

Plus: Other income 39 700

Rent Income 15 000

Commission Income 24 700

Gross income for the year 277 800

Less: Operating expenses (147 500)

Telephone 4 300

Maintenance 24 900

Wages and Salaries 75 600

Water and Electricity 36 000

Packing material 1 600

Fuel 5 100 `

Net profit for the year 130 300

172
 Module 9: Year End Procedures

Activity 9.5 SB page 173

Use the details of Activity 9.2 to compile a Statement of Profit or Loss for Tracey Traders on
31 August 20.2.

Statement of Profit or Loss for Tracey Traders for the year ended 31 August 20.2

Sales for the year 330 300

Less: Cost of sales (138 100)

Opening inventory (01/09/20.1) 23 800

Plus: Purchases 138 700

Carriage on Purchases 1 900

Custom Duty 1 300

Import Duty 5 400

Less: Closing inventory (31/10/20.2) (27 600)

Gross profit for the year 186 800

Plus: Other income 20 500

Rent Income 12 000

Commission Income 8 500

Gross income for the year 207 300

Less: Operating expenses (117 500)

Rent expense 42 000

Wages and Salaries 48 000

Water and Electricity 3 200

Insurance 21 900

Carriage on sales 2 400

Net profit for the year 89 800

173
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 9.6 SB page 173

Use the details of Activity 3 to compile a Statement of Profit or Loss for Mariams’ Movers on 30
November 20.2.

Statement of Profit or Loss for Mariams Movers for the year ended 30 November 20.1

Sales for the year 299 900

Less: Cost of sales (255 600)

Opening inventory (01/12/20.1) 90 200

Plus: Purchases 190 400

Import taxes 2 600

283 200

Less: Closing inventory (30/11/20.2) (27 600)

Gross profit for the year 44 300

Plus: Other income 18 700

Commission Income 18 700

Gross income for the year 63 000

Less: Operating expenses (121 400)

Telephone and Internet 7 800

Rent expense 39 500

Water and Electricity 4 100

Accounting fees 3 400

Bank charges 1 200

Salaries 65 400

Net loss for the year (58 400)

174
 Module 9: Year End Procedures

Activity 9.7 SB page 176

Use the details of Activity 9.1 to compile the Statement of Financial Position for Azaad Traders
on 31 October 20.2.

Statement of Financial Position of Azaad Traders as at 31 October 20.1

NOTES

ASSETS

Non-Current Assets 578 900

Property, plant and equipment 1 578 900

Other financial assets 3 –

Current Assets 173 200

Inventory 2 53 400

Trade and other receivables 3 63 200

Cash and cash equivalents 3 56 600

TOTAL ASSETS 752 100

EQUITY AND LIABILITIES

Owner’s Equity 716 300

Capital 6 716 300

Non-Current Liabilities

Loans and borrowings 4

Current Liabilities 35 800

Trade creditors 4 35 800

Bank overdraft –

TOTAL EQUITY & LIABILITIES 752 100

175
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 9.7 (continued)

NOTES TO THE STATEMENT OF FINANCIAL POSITION

1. PROPERTY, PLANT AND EQUIPMENT

LAND AND BUILDING EQUIPMENT VEHICLE TOTAL

Carrying Value at beginning 260 000 110 500 208 400 578 900
Additions – – – –

Carrying Value at the end 260 000 110 500 208 400 578 900

2. INVENTORY 53 400
Trading Inventory (31 October 20.2) 53 400

3. FINANCIAL ASSETS
NON-CURRENT FINANCIAL ASSETS –
Fixed deposit: Save Bank (10%) –

CURRENT FINANCIAL ASSETS

TRADE AND OTHER RECEIVABLES 63 200
Trade Receivables Control 63 200

CASH AND CASH EQUIVALENTS 56 600

Bank (Dr) 55 100
Cash float 600
Petty cash 900

4. FINANCIAL LIABILITIES
NON-CURRENT FINANCIAL LIABILITIES

CURRENT FINANCIAL ASSETS

TRADE AND OTHER PAYABLES 35 800
Trade Payables Control 35 800

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MAY 20.2

Balance at the beginning (01 June 20.1) 638 600

Add/Less: Net Profit or loss for the year 130 300

Less: Drawings (52 600)

Balance at the end (31 May 20.2) 716 300

176
 Module 9: Year End Procedures

Activity 9.8 SB page 176

Use the details of Activity 9.2 to compile the Statement of Financial Position for Tracey Traders
on 31 August 20.2.

Statement of Financial Position of Tracey Traders as at 31 August 20.2

NOTES

ASSETS

Non-Current Assets 317 500

Property, plant and equipment 1 277 500

Other financial assets 3 40 000

Current Assets 173 200

Inventory 2 27 600

Trade and other receivables 3 2 400

Cash and cash equivalents 3 33 100

TOTAL ASSETS 380 600

EQUITY AND LIABILITES

Owner’s Equity 356 400

Loans and borrowings 4 356 400

Non-Current Liabilities 12 000

Loan: Shark Bank (15%) 12 000

Current Liabilities 12 200

Trade and other payables 4 12 200

Bank overdraft –

TOTAL EQUITY & LIABILITIES 380 600

177
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 9.8 (continued)

NOTES TO THE STATEMENT OF FINANCIAL POSITION

1. PROPERTY, PLANT AND EQUIPMENT

LAND AND BUILDING EQUIPMENT VEHICLE TOTAL

Carrying Value at beginning 107 000 110 500 60 000 277 500

Additions – – – –

Carrying Value at the end 107 000 110 500 60 000 277 500

2. INVENTORY 53 400
Trading Inventory (31 October 20.2) 53 400

3. FINANCIAL ASSETS
NON-CURRENT FINANCIAL ASSETS 40 000
Fixed deposit: Save Bank (10%) 40 000

CURRENT FINANCIAL ASSETS

TRADE AND OTHER RECEIVABLES 2 400
Trade Receivables Control 2 400

CASH AND CASH EQUIVALENTS 33 100

Bank (Dr) 33 100
Cash float 300
Petty cash 700

4. FINANCIAL LIABILITIES
NON-CURRENT FINANCIAL LIABILITIES 12 000
Loan: Shark Bank (15%) 12 000

CURRENT FINANCIAL ASSETS

TRADE AND OTHER PAYABLES 12 200
Trade Payables Control 12 200

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 AUGUST 20.2

Balance at the beginning (01 September 20.1) 315 200

Add Net Profit for the year 89 800

Less: Drawings (48 600)

Balance at the end (31 August 20.2) 356 400

178
 Module 9: Year End Procedures

Activity 9.9 SB page 176

Use the details of Activity 9.3 to compile the Statement of Financial Position for Mariams’
Movers on 30 November 20.2.

Statement of Financial Position of Mariams Movers as at 30 November 20.2

NOTES

ASSETS

Non-Current Assets 138 000

Property, plant and equipment 1 138 000

Other financial assets 3 –

Current Assets 79 100

Inventory 2 27 600

Trade and other receivables 3 50 200

Cash and cash equivalents 3 1 300

TOTAL ASSETS 217 100

EQUITY AND LIABILITES

Owner’s Equity 201 100

Capital 6 201 100

Non-Current Liabilities

Loans and borrowings 4

Current Liabilities 16 000

Trade and other payables 4 6 250

Bank overdraft 9 750

TOTAL EQUITY & LIABILITIES 217 100

179
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 9.9 (continued)

NOTES TO THE STATEMENT OF FINANCIAL POSITION

1. PROPERTY, PLANT AND EQUIPMENT

LAND AND BUILDING EQUIPMENT VEHICLE TOTAL

Carrying Value at beginning 38 000 45 000 55 000 138 000

Additions – – – –

Carrying Value at the end 38 000 45 000 55 000 138 000

2. INVENTORY 27 600
Trading Inventory (30 November 20.2) 27 600

3. FINANCIAL ASSETS
NON-CURRENT FINANCIAL ASSETS –
Fixed deposit –

CURRENT FINANCIAL ASSETS

TRADE AND OTHER RECEIVABLES 50 200
Trade Receivables Control 50 200

CASH AND CASH EQUIVALENTS 1 300

Bank (Dr) –
Cash float 500
Petty cash 800

4. FINANCIAL LIABILITIES
NON-CURRENT FINANCIAL LIABILITIES –
Loan: Shark Bank (15%) –

CURRENT FINANCIAL ASSETS

TRADE AND OTHER PAYABLES 6 250
Trade Payables Control 6 250

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 NOVEMBER 20.2

Balance at the beginning (01 December 20.1) 300 000

Add Net Profit for the year (58 400

Less: Drawings (40 500)

Balance at the end (30 November 20.2) 201 100

180
 Module 9: Year End Procedures

Activity 9.10 SB page 176

1. Use the balances and totals from the given Trial Balance in the General Ledger of Zaytee
Stores. Complete the following accounts only: Capital, Drawing and Inventory.
2. Close off all the nominal accounts to the Trading account and the Profit and Loss accounts.
3. Post the net profit/loss to the Capital account.
4. Close off the Drawings account.
5. Balance all the necessary accounts.
6. Use the given balances and totals to compile a Statement of Profit or Loss for Zaytee Stores
on 30 June 20.6.
7. Use the given balances and totals to compile the Statement of Financial Position for Zaytee
Stores on 30 June 20.6.

Information
Balances/totals on 30 June 20.6

Loan: Beware Bank (15%) R9 650

Purchases 46 215
Rent Income 12 250
Capital 414 000
Mortgage bond 40 000
Trading Inventory (1 July 20.5) 9 761
Land and buildings 337 000
Carriage on Purchases 2 148
Sales 90 412
Drawings 12 370
Vehicles 44 620
Bank (Cr) 348
Equipment 27 290
Trade and other payables 13 377
Wages and salaries 30 870
Trade and other receivables 9 241
Water and electricity 3 146
Packing material 4 210
Import duty 1 984
Maintenance 3 913
Insurance 6 020
Petty cash 1 000
Internet and telephone 3 500
Cash float 830
Savings 11 540
Advertisement 2 630
Custom duty 311
Stationery 2 040
Discount received 3 500
Commission income 4 442

181
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 9.10 (continued)

Carriage on sales 2 500
Repairs 1 340
Fixed deposit: Bonus Bank (8%) 20 000

Additional information
The inventory was valued at R11 194 after a physical inventory count was done at the end of
the financial year.

Capital B1

Date Details Fol. Amount Date Details Fol. Amount

20.6 20.5
Jun 30 Drawings GJ 12 370 Jul 01 Balance b/d 414 000

Profit & Loss

(Net Loss) GJ 2 290

Balance c/d 399 340

414 000 414 000

20.6
Jul 01 Balance b/d 399 340

Drawings B2

Date Details Fol. Amount Date Details Fol. Amount

20.6 20.6
Jun 30 Balance b/d 12 370 Jun 30 Capital GJ 12 370

Trading inventory B5

Date Details Fol. Amount Date Details Fol. Amount

20.5 20.6
Jul 01 Balance b/d 9 761 Jun 30 Trading account GJ 9 761

20.1
Jul 01 Trading account GJ 11 194

Sales N1

Date Details Fol. Amount Date Details Fol. Amount

20.6 GJ 20.6
Jun 30 Trading account 90 412 Jun 30 Total b/d 90 412

90 412 90 412

Purchases N2

Date Details Fol. Amount Date Details Fol. Amount

20.6 20.6
Jun 30 Total b/d 46 215 Jun 30 Trading account GJ 46 215

182
 Module 9: Year End Procedures

Activity 9.10 (continued)

Carriage on Purchases N3

Date Details Fol. Amount Date Details Fol. Amount

20.6 20.6
Jun 30 Total b/d 2 148 Jun 30 Trading account GJ 2 148

Rent Income N4

Date Details Fol. Amount Date Details Fol. Amount

20.6 20.6
Jun 30 Profit & Loss GJ 12 250 Jun 30 Total b/d 12 250

Internet and telephone N5

Date Details Fol. Amount Date Details Fol. Amount

20.6 20.6
Jun 30 Total b/d 3 500 Jun 30 Profit & Loss GJ 3 500

Wages and salaries N6

Date Details Fol. Amount Date Details Fol. Amount

20.6 20.6
Jun 30 Total b/d 30 870 Jun 30 Profit & Loss GJ 30 870

Water and Electricity N7

Date Details Fol. Amount Date Details Fol. Amount

20.6 20.6
Jun 30 Total b/d 3 146 Jun 30 Profit & Loss GJ 3 146

Packing material N8

Date Details Fol. Amount Date Details Fol. Amount

20.6 20.6 GJ
Jun 30 Total b/d 4 210 Jun 30 Profit & Loss 4 210

Import taxes N9

Date Details Fol. Amount Date Details Fol. Amount

20.6 20.6
Jun 30 Total b/d 1 984 Jun 30 Trading account GJ 1 984

Maintenance N10

Date Details Fol. Amount Date Details Fol. Amount

20.6 20.6
Jun 30 Total b/d 3 913 Jun 30 Profit & Loss GJ 3 913

Insurance N11

Date Details Fol. Amount Date Details Fol. Amount

20.6 20.6
Jun 30 Total b/d 6 020 Jun 30 Profit & Loss GJ 6 020

Advertisement N12

Date Details Fol. Amount Date Details Fol. Amount

20.6 20.6
Jun 30 Total b/d 2 630 Jun 30 Profit & Loss GJ 2 630

183
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 9.10 (continued)

Custom duty N13

Date Details Fol. Amount Date Details Fol. Amount

20.6 20.6
Jun 30 Total b/d 311 Jun 30 Trading account GJ 311

Stationery N14

Date Details Fol. Amount Date Details Fol. Amount

20.6 20.6
Jun 30 Total b/d 2 040 Jun 30 Profit & Loss b/d 2 040

Commission income N15

Date Details Fol. Amount Date Details Fol. Amount

20.6 20.6
Jun 30 Total b/d 4 442 Jun 30 Profit & Loss GJ 4 442

Carriage on sale N16

Date Details Fol. Amount Date Details Fol. Amount

20.6 20.6
Jun 30 Total b/d 2 500 Jun 30 Profit & Loss GJ 2 500

Repairs N17

Date Details Fol. Amount Date Details Fol. Amount

20.6 20.6
Jun 30 Total b/d 1 340 Jun 30 Profit & Loss GJ 1 340

Trading account F1

Date Details Fol. Amount Date Details Fol. Amount

20.6 Opening inventory 20.6 Closing inventory

Jun 30 (01/07/20.5) GJ 9 761 Jun 30 (30/06/20.6) GJ 11 194

Purchases GJ 46 215 Sales GJ 90 412

Carriage on
purchases GJ 2 148

Import duty GJ 1 984

Custom duty GJ 311

Profit and loss

(gross profit) GJ 41 187

101 606 101 606

184
 Module 9: Year End Procedures

Activity 9.10 (continued)

Profit and Loss account F2

Date Details Fol. Amount Date Details Fol. Amount

20.6 20.6 Trading account

Jun 30 Wages and Salaries GJ 30 870 Jun 30 (gross profit) GJ 41 187

Water and GJ 3 146 Rent income GJ 12 250

Electricity

Packing material GJ 4 210 Commission income GJ 4 442

Maintenance GJ 1 293 Capital

(Net loss) GJ 2 290

Insurance GJ 6 020

Internet and GJ 3 500

telephone

Advertisement GJ 2 630

Stationery GJ 2 040

Carriage on sales GJ 2 500

Repairs GJ 1 340

60 169 60 169

185
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 9.10 (continued)

Statement of Profit or Loss for Zaytee Stores for the year ended 30 June 20.6

Sales for the year 90 412

Less: Cost of sales (49 225)

Opening inventory (01/11/20.1) 9 761

Plus: Purchases 46 215

Carriage on Purchases 2 148

Import duty 1 984

Custom duty 311

60 419

Less: Closing inventory (31/10/20.5) (11 194)

Gross profit for the year 41 187

Plus: Other income 16 692

Rent Income 12 250

Commission income 4 442

Gross income for the year 57 879

Less: Operating expenses (60 169)

Wages and Salaries 30 870

Water and Electricity 3 146

Packing material 4 210

Maintenance 1 293

Insurance 6 020

Internet and telephone 3 500

Advertisement 2 630

Stationery 2 040

Discount granted 2 620

Carriage on sales 2 500

Repairs 1 340

Net loss for the year (2 290)

186
 Module 9: Year End Procedures

Activity 9.10 (continued)

Statement of Financial Position of Zaytee Stores for the year ended 30 June 20.6
NOTES

ASSETS

Non-Current Assets 428 910

Property, plant and equipment 1 408 910

Other financial assets 3 20 000

Current Assets 33 805

Inventory 2 11 194

Trade and other receivables 3 9 241

Cash and cash equivalents 3 13 370

TOTAL ASSETS 462 715

EQUITY AND LIABILITES

Owner’s Equity 399 340

Capital 399 340

Non-Current Liabilities 49 650

Loans and borrowings 6 9 650

Mortgage bond 40 000

Current Liabilities 13 725

Trade and other payables 4 13 377

Bank overdraft 348

TOTAL EQUITY & LIABILITIES 462 715

187
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 9.10 (continued)

NOTES TO THE STATEMENT OF FINANCIAL POSITION

1. PROPERTY, PLANT AND EQUIPMENT

LAND AND BUILDING EQUIPMENT VEHICLE TOTAL

Carrying Value at beginning 337 000 27 290 44 620 408 910

Additions – – – –

Carrying Value at the end 337 000 27 290 44 620 408 910

2. INVENTORY 27 600
Trading Inventory (30 November 20.2) 27 600

3. FINANCIAL ASSETS
NON-CURRENT FINANCIAL ASSETS 2 000
Fixed deposit: Bonus Bank (8%) 2 000

CURRENT FINANCIAL ASSETS

TRADE AND OTHER RECEIVABLES 9 241
Trade Receivables Control 9 241

CASH AND CASH EQUIVALENTS 13 370

Bank (Dr) 830
Cash float 1 000
Petty cash 11 540

4. FINANCIAL LIABILITIES
NON-CURRENT FINANCIAL LIABILITIES 9 650
Loan: Beware Bank (15%) 9 650

CURRENT FINANCIAL ASSETS

TRADE AND OTHER PAYABLES 13 377
Trade Payables Control 13 377

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 20.2

Balance at the beginning (01 July 20.5) 414 000

Less: Net loss for the year (2 290)

Less: Drawings (12 370)

Balance at the end (30 November 20.6) 399 340

188
 Module 9: Year End Procedures

Activity 9.11 SB page 178

1. Use the balances and totals from the given Trial Balance in the General Ledger of Allie
Wholesalers. Complete the following accounts only: Capital, Drawing and Inventory.
2. Close off all the nominal accounts to the Trading account and the Profit and Loss accounts.
3. Post the net profit/loss to the Capital account.
4. Close the Drawings account.
5. Balance all the necessary accounts.
6. Use the given balances and totals to compile a Statement of Profit or Loss for Allie
Wholesalers on 31 January 20.8.
7. Use the given balances and totals to compile the Statement of Financial Position for Allie
Wholesalers on 31 January 20.8.

Information
Trial Balance of Allie Wholesalers on 31 January 20.8

DEBIT CREDIT
Balance Sheet accounts section
Capital B1 339 000 00
Drawings B2 9 310 00
Land and Buildings B3 314 800 00
Vehicles B4 49 110 00
Equipment B5 21 494 00
Trading Inventory (01/02/20.7) B6 41 625 00
Trade Receivables Control B7 17 613 00
Bank B8 34 378 00
Petty Cash B9 1 100 00
Cash Float B10 1 440 00
Savings B11 5 600 00
Trade Payables Control B12 19 871 00
Mortgage Bond B13 76 000 00
Nominal Accounts section
Sales N1 141 676 00
Purchases N2 83 276 00
Carriage on Purchases N3 2 340 00
Rent income N4 29 000 00
Commission Income N5 470 00
Donation Income N6 1 400 00
Wages N7 23 610 00
Insurance N8 9 307 00
Advertising N9 6 104 00
Salaries N10 35 600 00
Customs Duty N11 3 121 00
Import Taxes N12 2 145 00
Stationery N13 11 400 00
640 395 00 640 395 00

Additional information
The trading inventory was valued at R52 104 after a physical inventory count was done at the
end of the financial year.

189
 N4 Introductory Financial Accounting | Lecturer Guide

Activity 9.11 (continued)

Capital B1

Date Details Fol. Amount Date Details Fol. Amount

20.8 20.7
Jan 31 Drawings GJ 9 310 Feb 01 Balance b/d 339 000

Balance c/d 333 012 20.1 Profit & Loss

Jan 31 (Net Profit) GJ 3 322

342 322 342 322

20.8
Feb 01 Balance b/d 333 012

Drawings B2

Date Details Fol. Amount Date Details Fol. Amount

20.8 20.8
Jan 31 Balance b/d 9 310 Jan 31 Capital GJ 9 310

Trading inventory B5

Date Details Fol. Amount Date Details Fol. Amount

20.7 20.8
Feb 01 Balance b/d 41 625 Jan 31 Trading account GJ 41 625

20.8
Feb 01 Trading account GJ 52 104

Sales N1

Date Details Fol. Amount Date Details Fol. Amount

20.8 20.8
Jan 31 Trading account GJ 141 676 Jan 31 Total b/d 141 676

Purchases N2

Date Details Fol. Amount Date Details Fol. Amount

20.8 20.8 GJ
Jan 31 Total b/d 83 276 Jan 31 Trading account 83 276

Carriage on Purchases N3

Date Details Fol. Amount Date Details Fol. Amount

20.8 20.8 GJ
Jan 31 Total b/d 2 340 Jan 31 Trading account 2 340

Rent Income N4

Date Details Fol. Amount Date Details Fol. Amount

20.8 20.8 b/d

Jan 31 Profit & Loss GJ 29 000 Jan 31 Total 29 000

Commission income N5

Date Details Fol. Amount Date Details Fol. Amount

20.8 20.8
Jan 31 Profit & Loss GJ 470 Jan 31 Total b/d 470

190
 Module 9: Year End Procedures

Activity 9.11 (continued)

Donation Income N6

Date Details Fol. Amount Date Details Fol. Amount

20.8 20.8
Jan 31 Total b/d 1 400 Jan 31 Profit & Loss GJ 1 400

Wages N7

Date Details Fol. Amount Date Details Fol. Amount

20.8 20.8
Jan 31 Total b/d 23 610 Jan 31 Profit & Loss GJ 23 610

Insurance N8

Date Details Fol. Amount Date Details Fol. Amount

20.8 20.8
Jan 31 Total b/d 9 307 Jan 31 Profit & Loss GJ 9 307

Advertising N9

Date Details Fol. Amount Date Details Fol. Amount

20.8 20.8
Jan 31 Total b/d 6 104 Jan 31 Profit & Loss GJ 6 104

Salaries N10

Date Details Fol. Amount Date Details Fol. Amount

20.8 20.8
Jan 31 Total b/d 35 600 Jan 31 Profit & Loss GJ 35 600

Custom Duty N11

Date Details Fol. Amount Date Details Fol. Amount

20.8 20.8
Jan 31 Total b/d 3 121 Jan 31 Trading account GJ 3 121

Import Taxes N12

Date Details Fol. Amount Date Details Fol. Amount

20.8 20.8
Jan 31 Total GJ 2 145 Jan 31 Trading account b/d 2 145

Stationery N13

Date Details Fol. Amount Date Details Fol. Amount

20.8 20.8
Jan 31 Total GJ 11 400 Jan 31 Profit & Loss b/d 11 400

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 N4 Introductory Financial Accounting | Lecturer Guide

Activity 9.11 (continued)

Trading account F1

Date Details Fol. Amount Date Details Fol. Amount

20.8 Opening inventory 20.8 Closing inventory

Jan 31 (01/02/20.7) GJ 41 625 Jan 31 (31/01/20.7) GJ 52 104

Purchases GJ 83 276 Sales GJ 141 676

Carriage on purchases GJ 2 340

Custom Duty GJ 3 121

Import Taxes GJ 2 145

Profit and loss

(Gross profit) GJ 61 273

193 780 193 780

Profit and Loss account F2

Date Details Fol. Amount Date Details Fol. Amount

20.8 Donation income 20.8 Trading account

Jan 31 GJ 1 400 Jan 31 (Gross profit) GJ 61 273

Wages GJ 23 610 Rent income GJ 29 000

Insurance GJ 9 307 Commission income GJ 470

Advertising GJ 6 104

Salaries GJ 35 600

Stationery GJ 11 400

Capital
(net profit) GJ 3 322

90 743 90 743

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 Module 9: Year End Procedures

Activity 9.11 (continued)

Statement of Profit or Loss for Allie Wholesalers for the year ended 31 January 20.8

Sales for the year 141 676

Less: Cost of sales (80 403)

Opening inventory (01/11/20.7) 41 625

Plus: Purchases 83 276

Carriage on Purchases 2 340

Customs Duty 3 121

Import Duty 2 145

Less: Closing inventory (31/10/20.8) (52 104)

Gross profit for the year 61 273

Plus: Other income 29 470

Rent Income 29 000

Commission Income 470

Gross income for the year 90 743

Less: Operating expenses (87 421)

Donation income 1 400

Wages 23 610

Insurance 9 307

Advertising 6 104

Salaries 35 600

Stationery 11 400

Net profit for the year 3 322

Statement of Financial Position of Allie Wholesalers for the year ended 31 January 20.8.

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 N4 Introductory Financial Accounting | Lecturer Guide

Activity 9.11 (continued)

Statement of Financial Position of Allie Wholesalers for the year ended 31 January 20.8
NOTES

ASSETS

Non-Current Assets 385 404

Property, plant and equipment 1 385 404

Other financial assets 3 –

Current Assets 77 857

Inventory 2 52 104

Trade and other receivables 3 17 613

Cash and cash equivalents 3 8 140

TOTAL ASSETS 463 261

EQUITY AND LIABILITES

Owner’s Equity 333 012

Capital 333 012

Non-Current Liabilities 76 000

Loans and borrowings 4 76 000

Current Liabilities 54 249

Trade and other payables 4 19 871

Bank overdraft 34 378

TOTAL EQUITY & LIABILITIES 463 261

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 Module 9: Year End Procedures

Activity 9.11 (continued)

NOTES TO THE STATEMENT OF FINANCIAL POSITION

1. PROPERTY, PLANT AND EQUIPMENT

LAND AND BUILDING EQUIPMENT VEHICLE TOTAL

Carrying Value at beginning 314 800 21 494 49 110 385 405

Additions – – – –

Carrying Value at the end 314 800 21 494 49 110 385 405

2. INVENTORY 52 104
Trading Inventory (31 January 20.8) 52 104

3. FINANCIAL ASSETS
NON-CURRENT FINANCIAL ASSETS –
Fixed deposit –

CURRENT FINANCIAL ASSETS

TRADE AND OTHER RECEIVABLES 17 613
Trade Receivables Control 17 613

CASH AND CASH EQUIVALENTS 8 140

Bank (Dr) 1 100
Cash float 1 440
Petty cash 5 600

4. FINANCIAL LIABILITIES
NON-CURRENT FINANCIAL LIABILITIES 76 000
Mortgage Bond 76 000

CURRENT FINANCIAL ASSETS

TRADE AND OTHER PAYABLES 19 871
Trade Payables Control 19 871

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 JANUARY 20.8

Balance at the beginning (01 February 20.7) 339 000

Plus: Net profit for the year 3 322

Less: Drawings (9 310)

Balance at the end (31 January 20.8) 333 012

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 N4 Introductory Financial Accounting | Lecturer Guide

Activity 9.12 SB page 179

The following Trial Balance appeared in the books of Stormers WP on 31 October 20.7.

Required
1. Draw up the STATEMENT OF PROFIT OR LOSS for the year ended on 31 October 20.7.
2. Draw up the STATEMENT OF FINANCIAL POSITION for the year ended 31 October 20.7.
3. Show the NOTES to the Statement of Financial Position. Show only the following notes:
• Property, equipment and vehicles
• Inventory
• Cash
• Statement of changes on equity

Information
Trial Balance of Stormers WP on 31 October 20.7.
BALANCE SHEET ACCOUNTS SECTION DEBIT CREDIT
Capital 800 900
Drawings 60 500
Land and Buildings 650 000
Equipment 260 800
Vehicles 327 100
Trading Inventory (1 November 20.6) 110 700
Trade Receivables Control 40 800
Bank 27 400
Petty Cash 1 400
Cash Float 900
Trade Payables Control 62 900
Loan: Outjie (12%) 200 000

NOMINAL ACCOUNTS SECTION

Sales 990 900
Purchases 396 300
Carriage on Purchases 12 600
Carriage on Sales 15 200
Commission income 10 500
Salaries 123 600
Custom duties 9 600
Rent received 48 000
Stationery 13 900
Repairs 19 400
Telephone 16 300
Insurance 26 700
2 113 200 2 113 200

Additional information
The inventory was valued at R125 500 after a physical stocktaking on 31 October 20.7.

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 Module 9: Year End Procedures

Activity 9.12 (continued)

Statement of Profit or Loss for Stormers WP for the year ended 31 October 20.7
Sales for the year 990 900

Less: Cost of sales (403 700)

Opening inventory (01/11/20.6) 110 700

Plus: Purchases 396 300

Carriage on Purchases 12 600

Custom duties 9 600

Less: Closing inventory (31/10/20.7) (125 500)

Gross profit for the year 587 200

Plus: Other income 58 500

Commission income 10 500

Rent received 48 000

Gross income for the year 645 700

Less: Operating expenses (215 100)

Carriage on sales 15 200

Salaries 123 600

Stationery 13 900

Repairs 19 400

Telephone 16 300

Insurance 26 700

Net profit for the year 430 600

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 N4 Introductory Financial Accounting | Lecturer Guide

Activity 9.12 (continued)

Statement of Financial Position of Stormers WP as at 31 October 20.7

NOTES

ASSETS

Non-Current Assets 1 237 900

Property, plant and equipment 1 1 237 900

Current Assets 196 000

Inventory 2 125 500

Trade and other receivables 3 40 800

Cash and cash equivalents 3 29 700

TOTAL ASSETS 1 433 900

EQUITY AND LIABILITES

Owner’s Equity 1 171 000

Capital 1 171 000

Non-Current Liabilities 200 000

Loans and borrowings 4 200 000

Current Liabilities 62 900

Trade and other payables 4 62 900

TOTAL EQUITY & LIABILITIES 1 433 900

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 Module 9: Year End Procedures

Activity 9.12 (continued)

Notes to the Statement of Financial Position

1. PROPERTY, PLANT AND EQUIPMENT

LAND AND BUILDING EQUIPMENT VEHICLE TOTAL

Carrying Value at beginning 650 000 260 800 327 100 1 237 900

Additions – – – –

Carrying Value at the end 650 000 260 800 327 100 1 237 900

2. INVENTORY 27 600
Trading Inventory (31 October 20.7) 27 600

3. FINANCIAL ASSETS
NON-CURRENT FINANCIAL ASSETS –
Fixed deposit –

CURRENT FINANCIAL ASSETS

TRADE AND OTHER RECEIVABLES 40 800
Trade Receivables Control 40 800

CASH AND CASH EQUIVALENTS 29 700

Bank (Dr) 27 400
Cash float 1 400
Petty cash 900

4. FINANCIAL LIABILITIES
NON-CURRENT FINANCIAL LIABILITIES 200 000
Loan: Outjie (12%) 200 000

CURRENT FINANCIAL ASSETS

TRADE AND OTHER PAYABLES 62 900
Trade Payables Control 62 900

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 20.6

Balance at the beginning (01 July 20.5) 800 900

Less: Net loss for the year 430 600

Less: Drawings (60 500)

Balance at the end (30 June 20.6) 1 171 000

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 N4 Introductory Financial Accounting | Lecturer Guide

Summative Assessment 1 SB page 180

After completion of the Statement of Profit or Loss of MICAH CLARKE.
There was a net loss of R44 700 for the financial year ended on 31 May 20.3.

Required
1. Draw up the Statement of Financial Position.
2. Show the notes to the Statement of Financial Position. Show only the notes for:
• Property, equipment and vehicles
• Inventory
• Cash and cash equivalents
• Statement of changes in equity

Information

DEBIT CREDIT
BALANCE SHEET ACCOUNTS SECTION
Capital 890 000
Drawings 48 500
Buildings 380 000
Equipment 142 700
Vehicles 160 100
Trading Inventory (31 May 20.3) 33 800
Trade Receivables Control 41 600
Bank 62 200
Petty cash 1 000
Cash float 800
Trade Payables Control 25 400

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 Module 9: Year End Procedures

Summative Assessment 1 (continued)

Statement of Financial Position of MICAH CLARKE as at 31 May 20.3

NOTES

ASSETS

Non-Current Assets 682 800

Property, plant and equipment 1 682 800

Current Assets 139 400

Inventory 2 33 800

Trade and other receivables 3 41 600

Cash and cash equivalents 3 64 000

TOTAL ASSETS 822 200

EQUITY AND LIABILITES

Owner’s Equity 796 800

Capital 4 796 800

Non-Current Liabilities

Loans and borrowings 4

Current Liabilities 25 400

Trade and other creditors 4 25 400

TOTAL EQUITY & LIABILITIES 822 200

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 N4 Introductory Financial Accounting | Lecturer Guide

Summative Assessment 1 (continued)

Notes to the Statement of Financial Position

1. PROPERTY, PLANT AND EQUIPMENT

LAND AND BUILDING EQUIPMENT VEHICLE TOTAL

Carrying Value at beginning 380 000 142 700 160 100 682 800

Additions – – – –

Carrying Value at the end 380 000 142 700 160 100 682 800

2. INVENTORY 33 800
Trading Inventory (31 May 20.3) 33 800

3. FINANCIAL ASSETS
NON-CURRENT FINANCIAL ASSETS –
Fixed deposit –

CURRENT FINANCIAL ASSETS

TRADE AND OTHER RECEIVABLES 41 600
Trade Receivables Control 41 600

CASH AND CASH EQUIVALENTS 64 000

Bank 62 200
Petty cash 1 000
Cash float 800

4. FINANCIAL LIABILITIES
NON-CURRENT FINANCIAL LIABILITIES –

CURRENT FINANCIAL ASSETS

TRADE AND OTHER PAYABLES 25 400
Trade Payables Control 25 400

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MAY 20.3

Balance at the beginning (01 June 20.4) 890 000

Less: Net loss for the year (48 500)

Less: Drawings (44 700)

Balance at the end (31 May 20.3) 796 800

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 Module 9: Year End Procedures

Summative Assessment 2 SB page 181

The Trial Balance shown appeared in the books of SHI-ZION FURNITURE on 31 March 20.3.

Required
Prepare the Statement of Profit or Loss for the year ended 31 March 20.3.

Information
Trial Balance Of Shi-Zion Furniture On 31 March 20.3.
DEBIT CREDIT
BALANCE SHEET ACCOUNTS SECTION
Capital 638 600
Drawings 52 600
Land and Buildings 260 000
Vehicles 208 400
Equipment 110 500
Trading Inventory (1 April 20.3) 46 800
Trade Receivables Control 63 200
Bank 55 100
Petty Cash 900
Float 600
Trade Payables Control 35 800
NOMINAL ACCOUNTS SECTION
Sales 620 400
Purchases 378 700
Carriage on Purchases 3 900
Electricity expense 36 000
Rent income 15 000
Wages and Salaries 75 600
Custom Duties 6 300
Legal Fees 24 900
Commission income 24 700
Cleaning cost 1 600
Fuel 5 100
Internet costs 4 300
1 334 500 1 334 500

Additional information
The inventory was valued at R53 400 after a physical stocktaking on 31 March 20.3.

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 N4 Introductory Financial Accounting | Lecturer Guide

Summative Assessment 2 (continued)

Statement of Profit or Loss for Shi-Zion Furniture for the year ended 31 March 20.3

Sales for the year 620 400

Less: Cost of sales (382 300)

Opening inventory (01/04/20.2) 46 800

Plus: Purchases 378 700

Carriage on Purchases 3 900

Customs Duty 6 300

Less: Closing inventory (31/03/20.3) (53 400)

Gross profit for the year 238 100

Plus: Other income 39 700

Rent Income 15 000

Commission income 24 700

Gross income for the year 277 800

Less: Operating expenses (147 500)

Electricity expense 36 000

Wages and salaries 75 600

Legal fees 24 900

Cleaning cost 1 600

Fuel 5 100

Internet costs 4 300

Net profit for the year 130 300

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 Module 9: Year End Procedures

Summative Assessment 3 SB page 182

The following Trial Balance appeared in the books of Laeeqah Pharmacy on 31 October 20.5.

Required
1. Complete the final accounts for Laeeqah Pharmacy.
2. Prepare the Statement of Profit or Loss for the year ended 31 October 20.5.

Information
Trial Balance Of Laeeqah Pharmacy On 31 October 20.5.
BALANCE SHEET ACCOUNTS SECTION DEBIT CREDIT
Capital 579 500
Drawings 40 400
Land and Buildings 200 000
Vehicles 160 400
Equipment 105 500
Trading Inventory (1 November 20.4) 70 800
Trade Receivables Control 30 900
Bank 34 500
Petty Cash 700
Float 600
Trade Payables Control 45 100
NOMINAL ACCOUNTS SECTION
Sales 362 400
Purchases 205 500
Carriage on Purchases 4 600
Rent expense 36 000
Rent income 11 200
Wages and Salaries 95 700
Custom Duties 3 400
Insurance 12 500
Commission income 13 300
Postage 200
Telephone 9 800
1 011 500 1 011 500

Additional information
The merchandise was valued at R85 800 after a physical stocktaking on 31 October 20.5.

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 N4 Introductory Financial Accounting | Lecturer Guide

Summative Assessment 3 (continued)

General Ledger of Laeeqah Pharmacy
Trading account F1

Date Details Fol. Amount Date Details Fol. Amount

20.5 Opening inventory 20.5 Closing inventory

Oct 31 (01/11/20.4) GJ 70 800 Oct 31 (31/10/20.5) GJ 362 400

Purchases GJ 205 500 Sales GJ 85 800

Carriage on purchases GJ 4 600

Custom Duty GJ 3 400

Profit and loss

(gross profit) GJ 163 900

448 200 448 200

Profit and Loss account F2

Date Details Fol. Amount Date Details Fol. Amount

20.5 20.5 Trading account

Oct 31 Rent expense GJ 36 000 Oct 31 (gross profit) GJ 163 900

Wages and salaries GJ 95 700 Rent income GJ 11 200

Insurance GJ 12 500 Commission income GJ 13 300

Postage GJ 200

Telephone GJ 9 800

Capital
(net profit) GJ 34 200

188 400 188 400

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 Module 9: Year End Procedures

Summative Assessment 3 (continued)

Statement of Profit or Loss for LAEEQAH PHARMACY for the year ended 31 OCTOBER 20.5

Sales for the year 362 400

Less: Cost of sales (198 500)

Opening inventory (01/11/20.4) 70 800

Plus: Purchases 205 500

Carriage on Purchases 4 600

Customs Duty 3 400

Less: Closing inventory (31/10/20.5) (85 800)

Gross profit for the year 163 900

Plus: Other income 24 500

Rent income 11 200

Commission income 13 300

Gross income for the year 188 400

Less: Operating expenses (154 200)

Rent expense 36 000

Wages and salaries 95 700

Insurance 12 500

Postage 200

Telephone 9 800

Net profit for the year 34 200

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 N4 Introductory Financial Accounting | Lecturer Guide

Summative Assessment 4 SB page 182

GROUP DISCUSSION

In groups of 5, discuss why you think it is necessary to do reports and/or statements in a

business at least once a year.

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 Module 10
Revision exercises
 N4 Introductory Financial Accounting | Lecturer Guide

Revision Exercise 10.1 (Petty cash) SB page 184

Required
1. Prepare the Petty Cash Journal of Ella Supermarkets, for the month of March 20.2 and
provide for the following columns: Postage, Stationery, Sundry expenses and Sundry
accounts.
2. The next document number is petty cash voucher number 47.
3. Complete the Petty Cash account in the ledger.

Transactions
March 20.2
1 Petty cash on hand, R2 000
3 Bought postage stamps, R48
5 Paid for string, brown paper and glue, R22
7 Paid for repairs to the cash register, R98
8 Paid the owner’s laundry account, R161
9 Airfreight on parcels, R91
10 Paid for tea and sugar, R130
12 Bought a birthday gift for the office assistant, R180
14 Paid for railage, R34
15 Bought detergent and soap, R120
22 Paid for transport on goods sold, R190
23 Bought postage stamps, R32
25 Paid a casual labourer to clean the windows, R80
30 Restore the imprest amount

PETTY CASH JOURNAL OF Ella Supermarkets – March 20.2 PCJ

Doc. Day Details Petty Postage Stationery Sundry Sundry Accounts
Cash expenses
Amount Details

47 3 Stamps 48 48

48 5 String, paper, glue 22 22

49 7 Repair till 98 98 Repairs

50 8 Owner’s laundry 161 161 Drawings

51 9 Airfreight 91 91

52 10 Tea and sugar 130 130 Staff expense

53 12 Gift 180 180

54 14 Railage 34 34

55 15 Detergent 120 120 Cleaning

material

56 22 Transport on goods 190 190

57 23 Postage 32 32

58 25 Casual labourer 80 80 Wages

1 186 395 22 180 589

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 Module 10: Revision exercises

Revision Exercise 10.1 (Petty cash) (continued)

GENERAL LEDGER OF ELLA SUPERMARKETS

Date Details Fol. Amount Date Details Fol. Amount

20.2 20.2 1186

Mar 1 Balance b/d 2 000 Mar 31 Total payments PCJ

31 Bank CPJ 1 186 Balance c/d 2 000

3 186 3 186

Apr 1 Balance b/d 2 000

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 N4 Introductory Financial Accounting | Lecturer Guide

Revision Exercise 10.2 (Accounting Equation) SB page 184

Analyse the following transactions on a copy of the table below.

Source Subsidiary General Ledger Effect on accounting equation

No. Document Journal
Account dr Account cr A= 0+ L

1. Cashed a cheque for petty cash R400.

2. Interest on fixed deposit was received for R500.
3. Paid back R5 000 on the loan at CBS Bank.
4. Paid for stationery for R50 from petty cash.
5. The bank statement reflected a stop order for R500 for insurance.
6. Bought inventory for R90 from petty cash.
7. Paid for casual labour from petty cash of R100.
8. Cashed a cheque for R560 to restore the imprest amount of R600.
9. Received R670 for sales.
10. Received rent for the month of R1 300.

Source Subsidiary General Ledger Effect on

No. Document Journal accounting equation

Account dr Account cr A= 0+ L

1. Petty cash voucher Petty Cash Petty cash Bank + 400 - -

Journal - 400

2. Original receipt / CRJ Bank Interest on + 500 +500 -

Bank statement fixed deposit

3. Cheque counterfoil CPJ Loan: CBS Bank Bank - 5 000 - - 5 000

4. Petty cash voucher PCJ Stationery Petty cash - 50 - 50 -

5. Bank statement CPJ Insurance Bank - 500 - 500 -

6. Petty cash voucher PCJ Purchases Petty cash - 90 - 90 -

7. Petty cash voucher PCJ Wages Petty cash - 100 - 100 -

8. Petty cash voucher Petty Cash Petty cash Bank + 600 - -

Journal - 600

9. Cash register roll CRJ Bank Sales + 670 + 670 -

10. Duplicate receipt CRJ Bank Rent income + 1 300 + 1 300 -

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 Module 10: Revision exercises

Revision Exercise 10.3 (Source Documents) SB page 185

Complete the following table by supplying the missing information.

No Transaction Source Cash Dr or Cr side

document received or of the Cash
Cash Paid Book
1. Pay the monthly rent by cheque
2. Deposit cash into the bank account as capital
3. Buy stationery and pay by cheque
4. Receive a cheque from a client for services rendered
5. Buy equipment and pay by cheque
6. The monthly insurance is paid by debit order
7. The owner takes cash for his own use
8. Pay the wages by cheque
9. Goods sold for cash
10. Pay a deposit for a new vehicle by cheque
11. Receive rent from a tenant
12. Receive the monthly interest from the bank
13. Bought packing material and paid by cheque
14. The bank charges for the month is paid
15. Pay the owner’s personal telephone account by cheque

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 N4 Introductory Financial Accounting | Lecturer Guide

Revision Exercise 10.3 (Source Documents) (continued)

No. Transaction Source document Cash received Dr or Cr side of

or Cash Paid the Cash Book

1. Pay the monthly rent by cheque Cheque Paid Credit (Payment)

counterfoil

2. Deposit cash into the bank account as Deposit slip Received Debit (Receipts)
capital

3. Buy stationery and pay by cheque Cheque Paid Credit (Payment)

counterfoil

4. Receive a cheque from a client for Duplicate receipt/ Received Debit (Receipts)
services rendered cash invoice

5. Buy equipment and pay by cheque Cheque Paid Credit (Payment)

counterfoil

6. The monthly insurance is paid by debit Bank statement Paid Credit (Payment)
order

7. The owner takes cash for his own use Cheque Paid Credit (Payment)
counterfoil

8. Pay the wages by cheque Cheque Paid Credit (Payment)

counterfoil

9. Goods sold for cash Cash register roll Received Debit (Receipts)

10. Pay a deposit for a new vehicle by Cheque Paid Credit (Payment)
cheque counterfoil

11. Receive rent from a tenant Duplicate receipt Received Debit (Receipts)

12. Receive the monthly interest from the Bank statement Received Debit (Receipts)
bank

13. Bought packing material and paid by Cheque Paid Credit (Payment)
cheque counterfoil

14. The bank charges for the month is paid Bank statement Paid Credit (Payment)

15. Pay the owner’s personal telephone Cheque Paid Credit (Payment)
account by cheque counterfoil

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 Module 10: Revision exercises

Revision Exercise 10.4 (Cash Receipts and Cash Payments Journals)

SB page 186
The following information was taken from the source documents of the Sharifa’s Book Shop,
and after your assistant batched the source documents for you, you are required to draw up the
Cash Receipts Journal and Cash Payments Journal of Sharifa’s Book Shop for April 20.2.

Transactions for April 20.2

Duplicate Receipts for April 20.2

Day From Remarks Amount Received

1 S Davids Increased capital (rec 53) R12 000
25 Unisex Hair Monthly rent (rec 54) R6 500

Cash register tapes for April 20.2

Date Sales
5 R13 600
12 R24 400
21 R12 800
26 R32 400

Cash was deposited on 12 and 26 April 20.2

Information from cheque counterfoils April 20.2

Day Cheque no Name of Payee Remarks

6 801 Telkom June telephone bill, R1 050
7 802 Cash Weekly wages, R5 500
12 803 MTN Mr Michales’s wife’s cell phone acc R12 500
15 804 Trade Stores R5 000 for a new computer
18 805 Waltons Trading Inventory R8 300 and a copier for R5 900
806 Cash Weekly wages R5 500
19 807 Eskom Electricity R690
25 808 S Smit Monthly salary of R8 000

Information from bank statement from RG Bank – April 20.2

30 Cash handling fee – R75, Levy on debit transactions – R142, printing costs, R63
Stop order to Old Mutual for the Insurance of the business, R970

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 N4 Introductory Financial Accounting | Lecturer Guide

Revision Exercise 10.4 (Cash Receipts and Cash Payments Journals) (continued)

CASH RECEIPTS JOURNAL OF SHARIFA’S BOOK SHOP – APRIL 20.2 CRJ

Doc. Day Details Analysis of Bank Sales Trade Sundry Accounts

no. Receipts Receivable
Details Amount
Control
54 1 S Davids 12 000 Capital 12 000

CRR 5 Cash sales 13 600 13 600

CRR 12 Cash sales 24 400 50 000 24 400

CRR 21 Cash sales 12 800 12 800

54 25 F Davids 6 500 Rent income 6 500

CRR 26 Cash sales 32 400 51 700 32 400

CASH PAYMENTS JOURNAL OF SHARIFA’S BOOK SHOP – APRIL 20.2 CPJ

Doc. Day Payee Bank Purchases Trade Wages Sundry Accounts

no. Payable
Control Details Amount

801 6 Telkom 1 050 Telephone 1 050

802 7 Cash 5 500 5 500

803 12 MTN 12 500 Drawings 12 500

804 15 Trade Stores 5 000 Equipment 5 000

805 18 Waltons 14 200 8 300 Equipment 5 900

806 Cash 5 500 5 500

807 19 Eskom 690 Electricity 690

808 25 S Smit 8 000 Salary 8 000

B/S 31 RG Bank 280 Bank charges 280

B/S Old Mutual 970 Insurance 970

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 Module 10: Revision exercises

Revision Exercise 10.5 (Bank Reconciliation) SB page 187

Use the bank reconciliation below to answer the given questions:

BANK RECONCILIATION STATEMENT OF JOLLY LABELS ON 30 NOVEMBER 20.1

Debit Credit
Debit balance as per bank statement 945 00
Credit outstanding deposit 2 156 25
Debit outstanding cheques:
No. 735 540 00
No. 737 1 100 00
No. 742 98 00
Debit amount wrongly credited 27 00
Balance as per Bank account

Questions
1. What is the purpose of a Bank Reconciliation Statement?
In order to reconcile the balance of the bank account according to the bank statement (bank
records) with the balance of the business bank account in the General Ledger (business
records). It needs to be done on a monthly basis.

2. Does a Bank Reconciliation Statement reflect the entries that the business must still
record or the entries which the bank must still record?
Yes, deposits made by the business not yet recorded on the bank statement, as well as
cheques issued but not yet presented for payment.

3. Does the bank statement reflect a favourable bank balance or an overdraft for Lena’s
Labels?
An overdraft

4. Give a possible reason why a deposit might be outstanding.

Deposits entered in the Cash Receipts Journal failed to reach the bank in time to be included
on the bank statement.

5. Give two possible reasons why the three cheques might be outstanding.
The cheques could have be written out and entered in the Cash Payments Journal but failed
to reach the bank in time to be included on the bank statement.
The cheque could be post-dated, lost or stale.

6. The date of all outstanding cheques must be scrutinised carefully. Explain why.
If the cheque given as payment is not deposited in time at the bank, then after six
months we need to cancel the cheque. Also, if a post-dated cheque is deposited at the
bank before the date that is written on the cheque, then the bank will not accept the cheque.
The bank will return the cheque and a debit note stating “cheque unpaid – post-dated.”

7. Give two possible reasons why a business might cancel a cheque.

Incorrect date, incorrect signature, corrections on cheque

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 N4 Introductory Financial Accounting | Lecturer Guide

Revision Exercise 10.5 (Bank Reconciliation) (continued)

8. Explain what actions need to be taken to cancel a cheque and how you would record a
cancellation.
The word ‘cancel’ must be written across the cheque. The cheque needs to recorded in the
opposite journal. That is, a cheque we record in the CPJ must be cancelled in the CRJ.

9. Give a possible explanation for the entry of R27 on the Bank Reconciliation Statement.
The bank made a mistake.

10. Calculate the balance as per Bank account (in the books of the business) and state
whether it is a favourable balance or an overdraft.
R553.75 overdraft

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 Module 10: Revision exercises

Revision Exercise 10.6 (Wages Journal) SB page 188

Prepare the Wages Journal for Sing Traders for the week ended 31 October 20.1.

Information
Sunshine works a 40-hour week and time over and above this is regarded as overtime.
The employees get paid time and a half for overtime work.

Round off all amounts to the nearest rand. Do not round off the rates per hour.

Employee B. Moon G. Unter M. Eena

Hours 45 hours 48 hours 42 hours
Basic wage per hour R32.00 R25.00 R26.00
Deductions:
PAYE 30% of taxable income
UIF (normal amount) 1% 1% 1%
Nana Pension Fund R200.00 R220.00 R240.00
Medical Aid R20 R20 R20

Sing make the following contributions:

Pension Fund: 6% of the basic wage
UIF 1% of basic wage

Wages Journal of Sing Traders for ending 31 October 20.1

Normal time Overtime Total
Gross Net
Deductions Deduc-
Employee

Wage Wage
tions

Pension Medical
Tariff Hrs Amount Tariff Hrs Amount PAYE UIF
Fund Aid

B. Moon 32 40 1 280 48 5 240 1 520 396 200 20 13 629 891

G. Unter 25 40 1 000 37,5 8 300 1 300 324 220 20 10 574 726

M. Eena 26 40 1 040 39 2 78 1 118 263 240 20 10 533 585

TOTAL 3 938 983 660 60 33 1 736 2 202

Employee Employer Contributions

Pension UIF Total

B. Moon 77 13 90

G. Unter 60 10 70

M. Eena 62 10 72

TOTAL 199 33 232

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 N4 Introductory Financial Accounting | Lecturer Guide

Revision Exercise 10.7 (Financial Statements) SB page 189

After doing the Statement of Profit or Loss of Skyler's Bakery, the Net Loss was R30 800 for the
financial year ended on 31 August 20.1.

Required
1. Draw up the Statement of Financial Position.
2. Show the Notes to the Statement of Financial Position for:
• Property, equipment and vehicles
• Inventory
• Cash and cash equivalents
• Statement of change in equity

Information
Trial Balance for Skyler's Bakery as at 31 August 20.1

DEBIT CREDIT
BALANCE SHEET ACCOUNTS SECTION
Capital 590 300
Drawings 15 400
Land and buildings 260 000
Equipment 170 200
Vehicles 90 500
Trading inventory (31 August 20.1) 39 600
Trade Receivables Control 12 700
Bank 23 900
Patty cash 800
Cash float 500
Trade Payables Control 14 100
Loan: No-Go Bank (16%) 40 000

220
 Module 10: Revision exercises

Revision Exercise 10.7 (Financial Statements) (continued)

Statement of Financial Position of SKYLERS’ BAKERY as at 31 August 20.1

NOTES

ASSETS

Non-Current Assets 520 700

Property, plant and equipment 1 520 700

Current Assets 77 500

Inventory 2 39 600

Trade and other receivables 3 12 700

Cash and cash equivalents 3 25 200

TOTAL ASSETS 598 200

EQUITY AND LIABILITES

Owner’s Equity 544 100

Capital 544 100

Non-Current Liabilities 40 000

Loans and borrowings 4 40 000

Current Liabilities 14 100

Trade and other payables 4 14 100

TOTAL EQUITY & LIABILITIES 598 200

221
 N4 Introductory Financial Accounting | Lecturer Guide

Revision Exercise 10.7 (Financial Statements) (continued)

Notes to the Statement of Financial Position

1. PROPERTY, PLANT AND EQUIPMENT

LAND AND BUILDING EQUIPMENT VEHICLE TOTAL

Carrying Value at beginning 260 000 170 200 90 500 520 700

Additions – – – –

Carrying Value at the end 260 000 170 200 90 500 520 700

2. INVENTORY 39 600
Trading Inventory (31 August 20.1) 39 600

3. FINANCIAL ASSETS
NON-CURRENT FINANCIAL ASSETS –
Fixed deposit –

CURRENT FINANCIAL ASSETS

TRADE AND OTHER RECEIVABLES 12 700
Trade Receivables Control 12 700

CASH AND CASH EQUIVALENTS 25 200

Bank 23 900
Petty cash 800
Cash float 500

4. FINANCIAL LIABILITIES
NON-CURRENT FINANCIAL LIABILITIES 40 000
Loan: No-Go Bank (16%) 40 000

CURRENT FINANCIAL ASSETS

TRADE AND OTHER PAYABLES 14 100
Trade Payables Control 14 100

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 20.6

Balance at the beginning (01 July 20.5) 590 300

Less: Net loss for the year (30 800)

Less: Drawings (15 400)

Balance at the end (30 June 20.6) 544 100

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