EMS 9 ACCOUNTING ACTIVITY 8 PG 74 (CRJ, DJ AND DAJ) CLASS EXAMPLE

Shoe Rama is a shoe shop that buys shoes for cash and sells shoes on credit and for cash.
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They use a markup of 66 % on cost price. Use the information given to prepare the journals for the business.
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1. Complete the Cash Receipts Journal (CRJ4) – analysis columns: analysis of receipts, bank, sales, cost of sales,
debtors control and sundry accounts
2. Complete the Debtors Journal (DJ4) – analysis columns: sales and cost of sales
3. Complete the Debtors Allowances Journal (DAJ4) – analysis columns: debtors’ allowances, cost of sales
4. Close off the journals at the end of the month. (Always need to do this)

Balance in the General Ledger on 1 November 2018:

Capital, R184 000

Balance in the Debtors Ledger on 1 November 2018:

M. Philander, R1 840
R. Pillay, R2 880

Transactions for November 2018:

1 The owner, M. Rascal, increases her capital contribution to R200 000 by depositing the money directly into
the business current bank account. Issues receipt 018. CRJ (200 000 – 184 000 = 16 000)
4 Sell goods on credit to M. de Kocks for R1 500. Issue invoice 034. DJ. COS=900
5 Cash sales according to cash register roll, R18 500. CRJ. COS=11 100
7 Sell goods on credit to M. Philander for R2 800. Issue invoice 035. DJ. COS=1 680
9 Receive R1 000 from R. Pillay as partial payment on his debt. Issue receipt 019. CRJ. Debtors Control
10 M. Philander returned goods to the value of R320. Issue credit note 012. DAJ. COS=192
14 Cash sales according to the cash register roll, R15 800. CRJ. COS=9 480
15 Received R5 000 from M. Mokoena for renting part of the building. Issue receipt 020. CRJ. Rent Income
18 Sell goods on credit to R. Pillay for R2 400. Issue invoice 036. DJ. COS=1 440
20 R. Pillay returned goods to the value of R120. Issue credit note 013. DAJ. COS=72
26 Issue receipt 021 to R. Pillay in settlement of his account up to date. CRJ. Debtors Control. ***4 160
Cash sales according to cash register roll, R4 800. CRJ. COS=2 880

Tip to find which journal it goes to:

CRJ – cash, receipt, cash register roll

DJ – credit sale, invoice
DAJ – return goods/stock, credit note

Use the formula below to calculate the Cost of Sales (COS):

100 100
CP=SP × CP =SP ×
100+ MU 2
100+66
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*** How to calculate the amount he paid when settled his account up to date (26 November)?
A general formula:
Payment=openingbalance on 1 st of month+all credit sales made ¿ debtor−all returns made by debtor−all other paym
R. Pillay payment = opening balance (2 880) + credit sales (2 400) – returns (120) – previous payments (1 000)
= 4 160
CASH RECEIPTS JOURNAL OF Shoe Rama for November 2018 CRJ4
Details Fol Analysis Bank Sales Cost of Debtors Sundry Accounts
Day of Sales Control
Doc

Receipts Amount Fol Details

018 1 M. Rascal 16 000 16 000 Capital
CRR 5 Cash Sales 18 500 18 500 18 500 11 100
019 9 R. Pillay 1 000 1 000 1 000
CRR 14 Cash Sales 15 800 15 800 15 800 9 480
020 15 M. Mokoena 5 000 5 000 5 000 Rent
Income
021 26 R. Pillay 4 160 4 160
CRR Cash Sales 4 800 8 960 4 800 2 880
65 260 39 100 23 460 5 160 21 000

DEBTORS JOURNAL OF Shoe Rama for November 2018 DJ4

Doc
no Day Debtor Fol Sales Cost of Sales
034 4 M. de Kocks 1 500 900

035 7 M. Philander 2 800 1 680

036 18 R.Pillay 2 400 1 440

6 700 4 020

DEBTORS ALLOWANCES JOURNAL OF Shoe Rama for November 2018 DAJ4

Doc Debtors
no Day Debtor Fol Allowances Cost of Sales
012 10 M.Philander 320 192

013 20 R.Pillay 120 72

440 264