Learner Vol2 Update16 Sample

Simplified Accounting
Workbook & Activities | Learner’s Book | Sample Book
Grade 9 | CAPS
Second Edition
M.E. MOKOENA | T.S. KUBHEKA | B. KHOZA

Simplified Accounting - Grade 9
Second Edition
First published 2019
Compiled, Edited and Quality Assured under:

KM Academics
Copyright 2019 KM Academics
All rights reserved under international copyright law.
Contents and/or cover may not be reproduced in wide or in part in any form without the express written
consent or permission of the publisher.
Also by same authors:

• Financial Literacy For All Grade 8 (Activities & Workbook)
• Financial Literacy For All Grade 9 (Activities & Workbook)
• Simplified Accounting Grade 8 (Activities & Workbook)
• Simplified Accounting Grade 9 (Activities & Workbook)
• Financial Literacy - Learner Support Material - Grade 9 (Sponsored by SAICA)
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Sample Book ©2019 KM Academics

Table Of Contents
Term 1
Accounting Cycle 5
Transactions Flow Chart 6
Classification of Accounts (Magic House) 7
4IR in Accounting 11
Cost, Selling Price & Profit, Mark-up 15
Accounting Equation 18
Source Documents 22
Cash Receipts Journal (CRJ) 24
Cash Payments Journal (CPJ) 31
Combined Cash Journals (CRJ & CPJ) 38
Posting to the General Ledger 50
Posting from General Ledger to Trial Balance 61
Term 2
Credit Sales Transactions 73

Source Documents of Credit Sales 77
Debtors’ Journal (DJ) 82
Returns by Debtors 88
Receipts from Debtors 89
Combination of Cash and Credit sales transactions 94
Posting from Debtors’ Journal and CRJ to Debtors’ Ledger 98
Posting from Debtors’ Journal and CRJ to General Ledger 102
Term 3
Credit Purchases Transactions 112

Recording of Credit Purchases Transactions 114
Creditors’ Journal (CJ) 115
Returns to Creditors 122
Posting from Creditors’ Journal and CPJ to Creditors’ Ledger 129
Posting from Creditors’ Journal and CPJ to General Ledger 133
Combined transactions: Credit purchases (CJ) and Cash Payments (CPJ) 137
Term 4
Procedures for Posting (General, Debtors & Creditors Ledger) 153

Posting to the General Ledger 157
Preparing a Trial balance 162
Glossary 180
Sample Book ©2019 KM Academics 3

TERM 1
4 Sample Book ©2019 KM Academics

ACCOUNTING CYCLE
The accounting cycle is the holistic process of recording and processing all financial transactions of a
business entity, from when the transaction occurs, to its representation on the financial statements.
The cycle repeats itself every year as long as a business is operating.
i) Transaction – Exchange of goods or services for money (Receipts & Payments)

ii) Source Documents -Proof that a transaction took place (EFT Payment Advice, Cash
Register Roll/Tape, Bank Statement)
iii) Subsidiary Journals - Books where we record transactions using relevant source
documents (Cash Receipts Journal and Cash Payments Journal)
iv) General Ledger – Posting of subsidiary journals monthly
v) Trial Balance – Posting of General Ledger Accounts monthly
vi) Financial Statements – Posting of the Trial Balances at the end of the year (Income
Statement & Balance Sheet).
Note: For the purpose of grade 9 content and term one work, we will only Record from step 1
(transaction) up to step 5 (Trial Balance).

TRANSACTIONS FLOW CHART
No Transaction Source Document Journal

1 Capital contribution by the owner to Duplicate of Receipt Cash Receipts Journal
start a business (CRJ)
Bank Statement
2 Cash Purchases of fixed Assets such as EFT Payment Advice Cash Payments Journal
Land & Building, Vehicles, Equipment (CPJ)
3 Cash Purchase of Trading Stock EFT Payment Advice Cash Payments Journal
(CPJ)
4 Debit Card/Credit Card Sales of Cash Register Roll/Tape Cash Receipts Journal
Trading Stock (CRJ)
5 Tenants pay the rent by EFT Bank Statement Cash Receipts Journal
(CRJ)
6 Receipts from other sources of Income Duplicate of Receipts Cash Receipts Journal
(e.g. Rent Income) (CRJ)
Bank Statement
7 Payments of other Expenses EFT Payment Advice Cash Payments Journal
(CPJ)
8 Cash withdrawal made at the bank for Bank Statement Cash Payments Journal
the payment of Wages or top-up of the (CPJ)
Petty cash reserve
9 Cash withdrawal by owner Bank Statement Cash Payments Journal
(CPJ)
10 Businesses pay salaries and wages EFT Payment Advice Cash Payments Journal
through EFT into workers’ bank (CPJ)
accounts
11 Payment of expenses through debit Bank Statement Cash Payments Journal
order (CPJ)
12 Close off the Journals at the of the month (by totaling each column, except for Analysis of
Receipts Column in the CRJ
13 Post Journals to the General Ledger at the END of the month
14 Post General Ledger Accounts to the Trial Balance at the end of the month

ACCOUNTING CONCEPTS & CLASSIFICATION OF ACCOUNTS

Grade 8 Revision Work DATE:______________________
Angel Khanyile started a Dry Clean and Laundry service business “Quick Dry Clean and Laundry”.
Required:
1. Record the following transaction in the Cash Receipts Journal of “Quick Dry Clean and Laundry Service
for the month of March 2022. Open columns for Analysis of Receipts, Bank, Current Income and Sundry
Accounts.
2. Record the following transaction in the Cash Payment Journal of “Quick Dry Clean and Laundry Service for
the month of March 2022. Open columns for Bank, Equipment, Wages, Material Cost and Sundry Accounts.
3. Analyse the transactions on the Accounting Equation
4. Close the Journal off at the end of the month
Transactions: March 2022 – Quick Dry Clean and Laundry Services
On the 1st of March Ms. Angel Khanyile electronically transferred R 250 000 as her Capital contribution. On
the 3rd of March she purchased dry clean machines amounting to R 60 000 from Fistos Machines and paid by
EFT01. On the 5th she received R 11 200 for Services Rendered as per cash register tape and on the same day
she received R 5000 via EFT from Xolile Tshabalala who is Renting part of the building for her salon business.
On the 6th of March she bought Material Cost from Plastic World for R 1 500 and paid by EFT. On the 10th
she made an EFT to pay weekly Wages to S. Sankey, R 2 500. On the 15th she received R 12 000 for Services
Rendered as per cash register tape. On the 25th the debit order amounting to R 3 500 for owner’s private car
insurance with OUTsurance came through as per bank statement.

Cash Receipts Journal of Quick Dry Clean and Laundry Services - March 2022 CRJ01
Doc Day Details Fol. Analysis of Receipts Bank Current Income Sundry Accounts
No. Amount Fol. Details

Cash Payments Journal of Quick Dry Clean and Laundry Services - March 2022 CPJ01
Doc Day Name of Payee Fol Bank Equipment Wages Material Cost Sundry Accounts
No. Amount Fol. Details
9

Accounting Equation – March 2022: Quick Dry Clean and Laundry Services
Date SOURCE DOCUMENT ASSETS OWNER’S EQUITY LIABILITIES
EFFECT REASON EFFECT REASON EFFECT REASON
10
Parent/Guardian Signature
CONCEPTS OF FOURTH INDUSTRIAL REVOLUTION (4IR) in Accounting:
The impact of 4IR in the Accounting and Auditing profession

27 January 2022
4IR (Fourth Industrial Revolution) is upon us and we can no longer place it in the back seat. We as professionals
are now being forced to embrace, adapt and adopt these changes in order to remain relevant in our ever-
changing digital world. If there is one thing that the global COVID-19 pandemic has highlighted, it is just how
quickly the world can transform and just how much technology is integrated in our everyday lives – both private
and work life.
The pandemic has forced companies to rapidly move to remote working and often rely solely on advanced
technology and digital infrastructure to keep them afloat. Professor Klaus Schwab, Founder and Executive
Chairman of the World Economic Forum, said; “New technologies will dramatically change the nature of work
across all industries and occupations.” This is certainly true, and the Auditing and Accounting profession is no
exception.
Some emerging technologies brought forth by the 4IR are already wide-spread and fully integrated in our
industry. For example, many Accounting software packages now have built-in reporting solutions that produce
financial statements and perform repetitive record keeping more efficiently and accurately using Robotic
Process Automation. In the Auditing profession, data analytics tools are more commonly used to extract
volumes of data from the client’s records and apply advanced analytical checks to provide deeper insight into
trends and patterns identified and highlight exceptions uncovered using the entire population of entries as
opposed to sampling.
Block-chain technology is said to be the next incredible breakthrough that will transform the Accounting and
auditing profession, making financial record-keeping less costly, more reliable, and more accurate. Block-chain
technology records transactions in a distributed ledger. Thus far, the technology has proven to be highly secure.
The one appealing feature of block-chain technology is its ability to eliminate an intermediary, such as a bank, to
verify a transaction.
Block-chain operates through a secure peer-to-peer network. When a new transaction is initiated, all participants
in this network who have an identical copy and real-time access to the block-chain ledger, communicate and
verify the validity of the transaction before being entered into the block-chain. Once a transaction is added, it is
encrypted and cannot be deleted or modified.
To bring this back to Accounting, this technology is being explored to be used as a digital ledger whereby
transactions from both buyer and seller can be recorded in real-time on one system and all the participants
in the transaction have access to the ledger and can validate the details of the transaction before it is
recorded. Think of it as one big spreadsheet that keeps track of a transaction from supply chain to consumer
consumption in one ledger with minimal human intervention. Block-chain eliminates chances of human
manipulation and reduces the need for reconciliation and third part confirmation of existence and accuracy of
the transaction.
In recent years, we have seen several disheartening headlines relating to corruption in the political environment
and unethical conduct within our profession. With the recent scandals such as Steinhoff and VBS, it is clear to
see that there is a dire need for financial record transparency among stakeholders. This emerging technology
has the potential to address the issue of trust and speed up Auditing processes.
IS THERE A NEED FOR ACCOUNTANTS AND AUDITORS IN THE NEAR FUTURE?

The emerging technologies are most certainly going to replace several repetitive tasks we now do. However,
the answer to the question of whether the robots will take your job is dependent on your willingness to adapt
and evolve along with the technology. I believe companies will still need CAs, however the role we play will
transform. As automation becomes more and more of a reality, the role of an Accountant will transform into
an advisory role which will require the competence to analyse, interpret and use the output produced by these
technologies and feed into operational and strategic decisions.
Auditors will not be erased by the rise of AI and Blockchain but rather these technologies will generate
opportunities to enhance audit execution and leave more time to analyse data and provide quality, value-adding
feedback and recommendations to clients.

All these technological advances are still in the infant stage, however the impact it is expected to make
cannot be ignored. What Accountants and auditors need to do is prepare and equip themselves for the future.
In order to remain competitive, we need to evolve and adopt an innovative mindset. We need to be alert to
these technological changes, invest and commit to continuous learning to improve our digital intelligence and
solutions.
Lilly Mollel
Audit Manager, Johannesburg
The Fourth Industrial Revolution (4IR) represents a

fundamental change in the way we live, WORK and
relate to one another. It is a new chapter in human
development, enabled by extraordinary technology
advances commensurate with those of the first, second
and third industrial revolutions.
1.1. In your own words, explain Fourth Industrial Revolution (4IR)
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
1.2. How will the Block-chain software assist the Accounting and Auditing profession?
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
1.3. Write a short paragraph about how 4IR is affecting and will affect the Accounting related professions?
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
1.4. What is your advice to existing and aspiring Accounting related professionals in order for them to
remain relevant with all changes that are brought about by technological developments?
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
IMPACT OF COVID-19 IN OUR EDUCATION, ECONOMY & FINANCIAL SECTORS
On the 5th of March 2020, the National Institute for Communicable Diseases confirmed the first suspected
case of COVID-19. Since then, there has been a rapid increase in the number of positive cases reported in our
country and globally. Number of COVID-19 related deaths are been confirmed daily. Ordinary citizens, politi-
cians, business people, doctors, nurses have lost lives due to COVID-19. Countries were forced to embark on
hard lock-down regulations in response to COVID-19 in trying to save lives. Businesses closed down, people lost
their jobs and economic activities went down globally.
Activity A DATE:________________________
Mention as many as possible points with regard to impact of COVID-19 with reference to our Country’s:
1. Education
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
2. Economy
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
3. Financial Sector
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________

Introduction
Looking back…
In Grade 8 you have learnt about bookkeeping of a service business.

A service business is a business that earns income by providing a service to clients.
Examples of service businesses are a barber shop, hair salon/ hairdresser, shoe repair, cleaning services,
appliances repair, property developer, Auditors, Architects, plumbing business, spa treatment, dry cleaners, etc.
All these businesses obtain income by rendering a service.
Looking forward…
In Grade 9 you are going to learn about a trading business.
Trading businesses are businesses that Buy goods with the purpose of Reselling them at a higher Price in order
to earn profit.
Examples of trading businesses are clothing stores, food chain stores, fast foods outlets, hardware, furniture
stores and so on.
Another name for a trading business is a retail business.
How a trading business operates

A trading business buys goods at a certain price and sells them at a higher price.
The difference between the purchase price and the selling price is the business’ income or profit.
The profit forms part of the Owner’s equity.
The profit percentage is also referred to as the ‘profit mark-up’.
• Cost price + profit mark-up = selling price

CALCULATIONS OF COST PRICE, SELLING PRICE, MARK-UP AND PROFIT.
 Cost Price – Price at which goods are purchased for by the business from the supplier.
 Selling Price – Price at which goods are sold for by the business to its customers
 Mark-Up – (Percentage) % of profit that is added on cost price by the business
 Profit – The difference between Selling price & Cost price (i.e. Selling price is more than Cost price).
Business will make a Loss when Selling price is less than Cost price.
FORMULAS TO CALCULATE:
1. Cost of Sales
Cost of Sales = Sales x 100
(100+Mark-Up)
e.g. Sales = R 4 200, Mark-up = 50%
Cost of Sales = 4 200 x 100
100+50
= 4 200 x 100
150
= R2 800
2. Sales
Sales = Cost of Sales x (100+MU)
100
e.g. Cost of Sales = R 2 800, Mark-up = 50%
Sales = 2 800 x 100+50
100
= 2 800 x 150
100
= R4 200
3. Profit (When Cost of Sales is given)

Profit = Cost of Sales x 50
100
e.g. Cost of Sales = R 2 800, Mark-up = 50%
Profit = 2 800 x 50
100
= R1 400
4. Profit (When Sales is given)
Profit = Sales x 50
150
e.g. Sales = R 4 200, Mark-up = 50%
Profit = 4 200 x 50
150
= R1 400
5. Mark-up (%)
Mark-up (%) = (Sales – Cost of Sales) x 100
Cost of Sales
e.g. Sales = R 4 200, Cost of Sales = R 2 800

Mark-up (%) = (4 200 – 2 800) x 100
2 800
= 50%

Activity 1.1 Date:_____________________________
Complete the below table
Cost of Sales Sales Profit Mark-up

R 1 000 (i) (ii) 20%
(iii) R 4 750 (iv) 25%
(v) R 4 500 (vi) 125%
R 2 800 (vii) R 1 400 (viii)
(ix) R 17 850 (x) 75%
_______________________________________________________________________________________________________
Activity 1.2 Date:_____________________________
Complete the below table
Sales Cost of Sales Mark-up Profit

R 11 250 R 4 500 (i) (ii)
(iii) R 6 500 40% (iv)
(v) (vi) 10% R 550
(vii) R 2 500 (viii) R 1 250
R 975 (ix) 25% (x)

ACCOUNTING EQUATION
• Accounting Equation is the most fundamental equation of double-entry bookkeeping system; it

expresses the relationship between what is owned and what is owed by a business.
• Accounting Equation states that, at any point in time, the Assets of the business are equal to the sum
of its equity and Liabilities.
• The Accounting Equation is valid under all circumstances and for every type of business.
• Assets are financed by Owner’s Equity and Liabilities.
The following 5 Accounting rules will always apply when you do the Accounting equation…
1. Assets increase on the debit side (DR+) and decrease on the credit side (CR-)
2. Equity increases on the credit side (CR+) and decrease on the debit side (DR-)
3. Income increases equity on the credit side (CR+)
4. Expenses decreases equity on the debit side (DR-)
5. Liabilities increase on the credit side (CR+) and decrease on the debit side (DR-)
For a Cash sale transaction, there are 2 Double entries:

 The 1st Double entry represents Bank and Sales
 The 2nd Double entry represents Cost of sales and Trading Stock

Example 1A
Sold stock for R1 200. The stock had a Cost Price of R800.
Which TWO ACCOUNTS are affected?

Answer: 1st Double entry: Bank and Sales
2nd Double entry: Trading Stock and Cost of Sales
What TYPE OF ACCOUNTS are they (A, OE (Income/expense) or L?

Answer: Bank – Asset, Sales – Owner’s Equity.
Trading Stock - Asset, Cost of Sales - Owner’s Equity
Will the account INCREASE and /or DECREASE?

Answer: Bank will increase and Sales will increase
Trading Stock will decrease, and Cost of Sales will increase
Which account will be DEBITED and which will be CREDITED? (Refer to the classification of account
table and Five rules)
Answer: Bank - Debited, Sales -Credited
Trading Stock - Credited, Cost of Sales - Debited For a Cash sale transaction, there are 2 Double entries:
 The 1st Double entry - Bank and Sales
 The 2nd Double entry - Cost of sales and Trading Stock
Are Assets = OE + Liabilities?
Account debited Account credited Assets = OE +L

Bank Sales + 1 200 + 1 200 0
Cost of Sales Trading Stock - 800 - 800 0
Assets (+1 200) = OE(+1 200) + L (0)

Assets (- 800) = OE(- 800) + L (0)
Yes, Assets are equal to owner’s equity + Liabilities


Activity 1.3 Date____________________________
Required:
• Analyse the effect of the following transactions on the Accounting Equation.
1. The owner deposited R20 000 directly into the business bank account, as his Capital contribution.
2. The owner electronically transferred R 500 into his account for personal use.
3. Bought Stationery R450, and paid via EFT.
4. Bought goods from TT Traders and paid R9 000 by EFT.
5. Sold stock for R1 000. The stock had a Cost Price of R600.
6. The bank statement reflected a payment of R500 from a tenant.
Answer Sheet
No Account debited Account credited Assets =OE +L

Activity 1.4 Date____________________________
Required:
• Analyse the effect of the following transactions on the Accounting Equation.
1. The owner deposited R60 000 directly into the business bank account, as his Capital contribution.
2. The owner electronically transferred R 2 000 into her account for personal use.
3. Bought Packing Material R620, and paid via EFT.
4. Bought Equipment from B Technologies and paid R16 000 by EFT.
5. Cash sales according to Cash Register Roll, R1 500 (mark-up on cost 50%)
6. The bank statement reflected a payment of R900 from Mr Mkhize the new tenant.
Answer Sheet
No Account debited Account credited Assets =OE +L

Source Documents
Definition:
Source Document serves a proof or evidence that the transaction took place.
Source documents are vouchers (papers) on which information is originally (firstly) recorded.
SOURCE DOCUMENT EXPLANATION SUBSIDIARY JOURNAL
Duplicate Receipt Issued to people/businesses for payments Cash Receipts Journal

made to business
Cash Register Tape/Roll The Cash Register Roll is used to record cash Cash Receipts Journal
sales and Services Rendered on a cash register
Bank Statement A bank statement is used as source document Cash Receipts Journal/Cash
when a business receives an electronic payment Payments Journal
from its clients and other electronic payment
arrangements
EFT Payment Advice Electronic payments by the business (Payment Cash Payments Journal
(Internet Banking) notification/SMS notification)
Gorilla Bank

Activity 1.5 Date:_________________________
Required:
Refer from the above Source documents and answer the questions that follow:
1. Name of the Source Document__________________________
2. Name of the Bank_________________________________
3. Statement date__________________________________
4. Opening balance _________________________________
5. Closing balance___________________________________
6. Total amount that was received for the month_______________
7. Total of Bank charges___________________
8. Give transaction reference for transaction dated (14/01/2022)_______________
9. Largest amount that was received_______________________
10. Smallest amount that was received______________________
CASH JOURNALS (Step 3 in the Accounting Cycle)
• Cash Journals are journals used to record ALL Cash transactions (inflow and outflow of cash) of the
business.
• Movement of cash
Analysis of Cash Journals Transactions:
• Identify the source document and source document number.

• Identify the journal.
• Identify the accounts (Bank will always be ONE of the Accounts).
• Provide for the relevant columns in the journal. (Format of Journals)
• Record the transaction in the journal.
• Check whether the concept of double entry principle is applied correctly.
• Close off the journal at the end of the month. (Total)
CASH RECEIPTS JOURNAL
• Cash Receipts Journals is used to record ALL the monies received by the business from different sources
(Capital Contribution, Sales, Rent Income, etc)
• Close off the Journal at the END of each month and Post all Accounts to the General Ledger
• Source documents for CRJ transactions includes, CRR, CRT, Duplicate Receipt, Bank Statement (BS)

FORMAT OF A CASH RECEIPTS JOURNAL
Look carefully at the following format of a Cash Receipts Journal, each column has a number which
matches a note below. Study and make sure that you understand each column and how it will be
used.
Heading of the journal which consists of:

• The name of the journal
• Name of the business enterprise
• Month and year
• Journal number of the journal: this is the page number of a journal,
your first journal will be CRJ 1, the next will be CRJ 2, etc.
Cash Receipts Journal of ……………………. for …………….. CRJ 7
Sundry Accounts (9)

Analysis of Cost of
Doc Day Details Fol Bank Sales
Receipts Sales
Amount Fol Details
(1) (2) (3) (4) (5) (6) (7) (8)
(4) Fol - For cross reference

(5) Analysis of Receipts – Money received daily. (except for direct
deposits, EFT and transfers)
(1) Doc No. - Source document, i.e. (6) Bank –All the money deposited in the business bank account
CRR, B/S, Receipt No (7) Sales - Total money received for goods sold
(2) Day - this column is used to write the day (8) Cost of Sales - Cost price of the goods sold
on which the transaction took place.
(9) Sundry accounts - This column is used to record any transaction
(3) Details– Name or the source that the incurred that cannot be entered in any of the analysis columns
money is received from given. It consists of three columns for Amount, Fol and Details.
• Amount- the amount received that does not have a special
analysis column is recorded here.
• Fol- this is folio number. It is used to show cross reference, i.e.
to show the number of the account in the general ledger that
is Credited. This column can only be completed after you have
posted to the general ledger.
• Details - This column is used to write the name of the account
which has no special column provided in the CRJ.

Example 1B
Required:
1. Record the below transactions in the Cash Receipts Journal of Huggs Traders for the month of July 2022
2. Close off the Journal on 31 July 2022
3. Show the effects of the Accounting Equation.
Transactions:
2 S. Huggs directly transferred R 75 000 into the business bank account as his Capital contribution.
3 Cash sales as per cash register roll, R 3 500 (cost R 1700)
4 R. Zulu made an EFT payment for his Rent of R 2 800
SOLUTION
CASH RECEIPTS JOURNAL OF HUGGS TRADERS FOR JULY 2022 CRJ01
Doc No. Day Details Fol. Analysis of Bank Sales Cost of Sundry Accounts
Receipts Sales Amount Fol. Details
B/S 2 S. Huggs 75000 75 000 B1 Capital
CRR 3 Sales 3 500 3 500 3 500 1 700
B/S 4 R. Zulu 2 800 2 800 N3 Rent
Income
81 300 3 500 1 700 77 800
B2 N1 N2
ANALYSIS OF TRANSACTIONS (Accounting Equation)
Day Source Doc Journal Account Debited Account Credited Assets = Owner’s Liabilities
Equity
2 Bank Cash Bank Capital +75 000 +75 000 0
Statement Receipt
Journal
3 Cash Cash Bank Sales +3 500 +3 500 0
Register Roll Receipt
Journal
Cost of Sales Trading Stock -1 700 -1 700 0
4 Bank Cash Bank Rent Income +2 800 +2 800 0
Statement Receipt
Journal

Activity 1.6 Date:_________________________
Required:
1. Record the below transactions in the Cash Receipts Journal of KM Academics for the month of August
2022
2. Close off the Journal on 31 August 2022
3. Show the effects of the Accounting Equation.
Transactions:
1 The owner, S. Mokoena deposited R 50 000 directly into the bank account of the business as his Capital
contribution.
4 T. Tommy made an EFT payment for his Rent of R 3 500
10 Credit card sales of goods as per cash register roll, R 4 500 (cost R3 000)

CASH RECEIPTS JOURNAL OF KM ACADEMICS for August 2022 CRJ02
Doc Day Details Fol. Analysis of Bank Sales Cost of Sales Sundry Accounts
No. Receipts Amount Fol. Details
ANALYSIS OF TRANSACTIONS (Accounting Equation)
Day Source Doc Journal Account Debited Account Credited Assets = Owner’s Equity Liabilities
28
Activity 1.7 Date____________________________
Cash Receipts Journal
Piet started a business on 1 January 2022 trading as Inkosi stores. He appointed you to be the bookkeeper of
his business.
You are required to:
• Record the following transactions of Inkosi stores in the Cash Receipts Journal for January 2022.
• Make provision for the following columns: Analysis of Receipts, Bank, Sales, Cost of Sales, Debtors Control
and Sundry Accounts.
• Close off Journal on 31 January 2022.
• Show effect of the transactions on the Accounting Equation. Use the table provided
NB: Goods are sold at cost plus 100%.
Transactions: January 2022

1. Owner directly deposited R40 000 into the business bank account as Capital contribution.
Debit card Sales of merchandise as per Cash Register Tape, R 2 500.
17. Zulu M transferred R800 into the business bank account for commission.
25. Goods sold for cash, R2 000, as per cash register tape

Cash Receipts Journal of _______________________________________________ for _____________________________ CRJ 1
Doc Day Details Fol Analysis of Bank Sales Cost of Sundry Accounts
No. Receipts Sales Amount Fol Details
Accounting Equation
Source document General Ledger Accounting Equation
30
Account debited Account Credited Assets = Owner’s equity + Liabilities
TERM 2

Revision of Calculations (Sales, Cost of sales, Mark-up, Profit)
FORMULAS
Calculation of Sales Calculation of Cost price
Cost price x (100 + %) = Sales Sales x 100 = Cost price

100 (100 + %)
Calculation of mark-up % Calculation of Profit
(Sales – cost) x 100 = % mark up on cost Sales less Cost of sales = Profit
Cost price 1

REVISION ACTIVITY 1.1: Date:___________________________
CASH TRANSACTIONS
(TERM 1 WORK)
RECORDING TRANSACTIONS IN THE CASH RECEIPTS JOURNAL AND CASH PAYMENTS JOURNAL
EFFECT OF TRANSACTIONS ON THE ACCOUNTING EQUATION
Mzansi Hygiene Solutions is a professional business owned by D. Khoza.

They buy and sell cleaning and bio-hazard materials, disinfectant chemicals, specialist disinfection equipment and
respiratory protective equipment for corona virus (COVID-19).
The business uses a mark-up of 80% on cost price.
Required to do:
1. Record the transactions of Mzansi Hygiene Solutions in the following journals:

• Cash Receipts Journal.
• Cash Payments Journal.
2. Close off the journals at the end of the month.
3. Accounting Equation
Transactions: August 2022
01 The business bank account showed electronic funds transfer of R80 000 by the owner, as his capital investment.
09 Bought the following items from SA Health Boom and paid via EFT:
• Clorox Disinfecting Wet Mopping Cloths R 11 500
• Germicidal Ultra Bleach R 9 600
• Clorox Cleaner Disinfectant Wipes R 7 300
• Microban 24 Hour Sanitizing Spray R14 700
• Disinfectant Fogger Machine R 21 800
• Disinfectant Fogging Solution R 8 500
• Plastics and boxes for packaging R 3 800
18 The cash register tape recorded the following items sold for cash:
• 8 x Disinfectant Fogging solution @ R 490 each
• 12 x Germicidal Ultra Bleach @ R 820 each
• 16 x Clorox Cleaner Disinfectant Wipes @ R 400 each
• 10 x Microban 24 Hour Sanitizing Spray @ R210 each
• 6 x Disinfection sprayer bottles @ R 580 each
22 The business donated R5 000 to LA Day Care Centre using EFT.
29 The owner, D. Khoza transferred R 8 500 to his bank account to pay for his residence water and lights account.
31 The bank statement showed a deposit of R4 000 from IT Solutions for rent of office space.

ANSWER SHEETS
Cash Receipts Journal of Mzansi Hygiene Solutions for August 2022 CRJ 7
Doc Day Details Fol Analysis of Bank Sales Cost of Sales Sundry Accounts
Receipts Amount Fol Details
34
Cash Payments Journal of Mzansi Hygiene Solutions for August 2022 CPJ 7
Doc Day Name of payee Fol Bank Trading Stock Wages Stationery Sundry Accounts
Amount Fol Details
Accounting Equation
Day Source document Subsidiary Account debited Account credited Effect on the Accounting Equation
Journal A OE L

35
CASH TRANSACTIONS
(TERM 1 WORK)
POSTING THE CASH RECEIPTS JOURNAL AND CASH PAYMENTS JOURNAL TO THE GENERAL LEDGER
Required to do:
Use the completed CRJ AND CPJ of Mzansi Hygiene Solutions to post to the General Ledger
DR. GENERAL LEDGER OF _____________________________________ CR.

BALANCE SHEET ACCOUNTS SECTION
CAPITAL B1
DRAWINGS B2
TRADING STOCK B3
BANK B4

NOMINAL ACCOUNTS SECTION
SALES N1
COST OF SALES N2
RENT INCOME N3
DONATIONS EXPENSE N4

CASH TRANSACTIONS
(TERM 1 WORK)
PREPARING THE TRIAL BALANCE
Required to do:
Use the completed General Ledger of Mzansi Hygiene Solutions to prepare the Trial Balance
TRIAL BALANCE OF __________________________________________________________

DETAILS FOL DEBIT CREDIT

CREDIT SALES (DEBTORS)
NEW TERMINOLOGY
• Credit: an arrangement made by a customer with the business to pay later for goods purchased.
• Creditworthy: when a person is able to pay the account, and can be trusted.
• Credit limit: maximum amount a customer can spend on account
• Credit agreement: legally binding contract between a customer and the business
Credit agreement specifies the following:

• Credit limit – the maximum amount the debtor can owe on a specific date.
• Payments terms/Credit terms – how long can the debtor pay his/her account.
• Incentives or rewards – can give the debtor discount for early payment.
• Penalties – can charge the debtor interest for late payment.
• Credit score: is used by businesses to determine general credit risk, your payment history and ability to
repay your debts on time.
• Debtor: a person who owes money to the business.
• Debtors’ journal: The journal where all transactions of sales on credit are recorded. (Third step in the
Accounting Cycle)
• Debtors’ Control Account: is an account that simply tracks any amounts owed to the business. A
summary of all Debtors’ balances.
• Invoice: A document issued to customers when goods are sold on credit. The business keeps the
duplicate as a source document.
National Credit Act: the law that regulates the granting of credit and protects both the customer and
the business
The purpose of National Credit Act is:
• To educate consumers on the responsibilities of borrowing
• To ensure that money that is borrowed or lent out can be paid back.
• To protect consumers who are unfairly treated by businesses.
• To provide debt counseling processes to consumers who cannot find a solution to repay their debts.

Main objective of the National Credit Act:
• Aims at credit providers granting credit in a responsible way.
• Consumers not committing to more than what they can afford
• Educating consumers to make informed choices.
What does it mean to buy goods on credit?

Buying on credit means that a customer buys and receives goods now without making a payment immediately.
Payment will be made at a later stage. This is also known as buying on account.
• Note that only people who are able to pay their accounts (creditworthy) are allowed to buy on credit.
They will sign a credit agreement with terms of credit.
• All credit providers must comply with the (NCA) - National Credit Act
• When a business allows customers to buy on credit, customers are called Debtors.
• A debtor is a person who owes money to the business.
• A new account called Debtors Control, an Asset is created.
• Debtors Control is a summary of balances of all debtors in the business.
• The credit sales transaction is recorded in the Debtors Journal.
• The source document used to write up the Debtors Journal is the Duplicate Invoice. When the business
sells goods on credit, the customer receives the original invoice and the business retains the Duplicate
Invoice as the source document

Activity 2.1 Date:______________________
CREDIT SALES CONCEPTS
1. Explain the following concepts

1.1 Credit limit
__________________________________________________________________________________________________
__________________________________________________________________________________________________
1.2 A debtor
__________________________________________________________________________________________________
__________________________________________________________________________________________________
1.3 National Credit Act (NCA)
__________________________________________________________________________________________________
__________________________________________________________________________________________________
1.4 Creditworthy
__________________________________________________________________________________________________
__________________________________________________________________________________________________
1.5 Credit agreement
__________________________________________________________________________________________________
__________________________________________________________________________________________________
2. Answer the following questions:

2.1 Name and explain the first THREE STEPS in the accounting cycle of a credit sale transaction.
Name of Step Explanation
Step 1:
Step 2:
Step 3:
2.2 In which subsidiary journal is credit sales transaction recorded? ______________________________________
2.3 Which source document is issued by the business when goods are sold on credit?
________________________________________________________
2.4 What is the purpose of the National Credit Act? Mention THREE
_______________________________________________________________________________________________
_______________________________________________________________________________________________
_______________________________________________________________________________________________
ACCOUNTING CYCLE OF CREDIT SALES TRANSACTIONS

SOURCE DOCUMENTS OF CREDIT SALES

Example 2A
On 25 May 2022 Bra Moses Electrical Solutions of 158 Lincoln Drive, Centurion, 1502 sent an invoice
(INV05211) to J. Smith of 14 Morning Avenue, Brixton, 2001 for the following items:
• 13 Samsung microwave oven @R1 850 each

• 4 Ceiling fans @R2 500 each
All prices are VAT inclusive

Terms:
30 days, 2% discount.
Use the given information to complete the following source document.
TAX INVOICE
Bra Moses Electrical Solutions
158 Lincoln Drive
Centurion, 1502
NO : INV05211
Date: 25 May 2022
TO: J. Smith
14 Morning Avenue
Brixton, 2001
Quantity Description Unit Price Amount
13 Samsung microwave oven R 1 850.00 R 24 050.00

4 Ceiling fans R 2 500.00 R 10 000.00
Amount excluding VAT R 28 942.50
VAT @ 15% R 5 107.50
Total Amount Including VAT R 34 050.00
Terms : 30 days, 2% discount
Special instructions: none

E&OE

Activity 2.2 Date___________________________

On 14 August 2022 The Student Plug of 18 Sontonga Road, Alberton, 1800 sent an invoice(INV431) to
IT Connections of 532 Avocado Street, Bryanston Office Park , Sandton, 1606 for the following items:
23 Apple Macbook Laptops @ R18 000 each

4 Huawei P40 @ R9 800 each
Terms: 60 days
Special Instruction: Do not accept if the security tape has been tempered with.
Use the given information to complete the following source document.
TAX INVOICE
From: ______________________
____________________________
INVOICE NO : _________
Date: _______________________
TO: ________________
_____________________
_____________________
Quantity Description Unit Price Amount
Amount excluding VAT ________________

VAT @ 15% ________________
Total Amount Including VAT ________________
Terms: ________________________________________
Special instructions: __________________________________________________________
E&OE

Example 2B
Transaction Analysis

Sold goods on credit for R2 500. The stock had a Cost Price of R1 400.
For a Credit Sale transaction,
Which FOUR ACCOUNTS are affected? there are 2 Double entries:
 The 1st Double entry -
Answer: Debtors Control and Sales Debtors Control and Sales
 The 2nd Double entry -
Cost of Sales and Trading Stock Cost of sales and Trading
Stock
What TYPES OF ACCOUNTS are they (A or OE(Income/expense) or L?
Answer: Debtors Control - Assets, Sales - Income
Cost of Sales - Expense,Trading Stock - Assets
Will the account INCREASE and /or DECREASE?
Answer: Debtors Control will Increase, Sales will Increase
Cost of Sales will Increase,Trading Stock will decrease
Which account will be DEBITED and which will be CREDITED?

(Refer to the classification of account table and Five rules)
Answer: Debtors Control - Debited , Sales - Credited
Cost of Sales - Debited, Trading Stock - Credited
Is Assets = OE + Liabilities?
Account debited Account credited Assets = OE +L

Debtors Control Sales + 2 500 + 2 500 0
Cost of Sales Trading Stock - 1 400 - 1 400 0
Assets (+ 2 500) = OE(+ 2 500) + L (0)

Assets ( -1 400) = OE(- 1 400) + L (0)


Activity 2.3 Date: ______________________
The given information is from the books of Manna for the month of August 2022.
Required:
Show the effects of the Accounting Equation.
3 Sold goods on account to Mondli R 3 500 (Cost Price R2 000). Issued invoice 01
16 Received R 3 000 from Mondli in part-payment of his account, issued receipt 085
Effect of transactions on the Accounting Equation:

Date Source document Subsidiary Account Account Effect on the Accounting Equation
Journal debited credited A OE L
_______________________________________________________________________________________________________
Activity 2.4 Date: ______________________

The given information is from the books of Thabang Hardware for the month of May 2022.
Required:
Show the effects of the Accounting Equation.
Note: mark-up on cost 25%
6 Sold goods on credit to Petros R 9 250. Issued invoice 02

20 Received an EFT payment of R 6 500 from Petros in part-payment of his account.

Date Source document Subsidiary Account Account Effect on the Accounting Equation
RECORDING TRANSACTIONS IN THE DEBTORS JOURNAL
FORMAT OF A DEBTORS JOURNAL
(5) the total amount (6) the total cost of

owed by debtors goods sold
Debtors’ Journal of KM Academics - July 2022 DJ1

Doc Day Debtor Fol. Sales Cost of Sales
No.
(1) (2) (3) (4) (5) (6)
(2) The day which (3) the name of (4) for cross reference
(1) Invoice Number the person who
the transaction i.e. debtor’s reference
took place owes the business number from Debtors
money Ledger

Example 2C
CREDIT SALES (DEBTORS JOURNAL AND ACCOUNTING EQUATION)
1. Record the transactions of KM Academics in the Debtors Journal.
Keywords:
Close off the journal at the end of the month.
• Goods
2. Show the effect of transactions on the Accounting equation • Merchandise
NOTE: The business uses a mark-up of 60% on cost price. • On account
Transactions: July 2022
03 Sold goods on credit to C. Camp, R 800. Issued invoice 41
12 Issued invoice to D. Poole for R 9 400, for the 2 watches that he bought on account.
Calculation of cost of sales:
Debtors Journal of KM Academics – July 2022 DJ1 800 x 100 = 500

160
Doc no. Day Debtor Fol. Sales Cost of Sales
41 3 C. Camp 800 500
42 12 D. Poole 9 400 5 875
10 200 6 375
Calculation of cost of sales:
9 400 x 100 = 5 875
160
For a Credit sale transaction, there are 2 Double entries:

 The 1st Double entry represents Debtors Control and Sales
 The 2nd Double entry represents Cost of sales and Trading Stock
Accounting Equation
No Source Subsidiary Account debited Account Accounting equation

document Journal credited
A = OE + L
3 Duplicate Debtors Debtors Control Sales + 800 + 800 0
invoice Journal
Cost of sales Trading - 500 - 500 0

Stock
12 Duplicate Debtors Debtors Control Sales + 9 400 + 9 400 0

invoice Journal
Cost of sales Trading - 5 875 - 5 875 0
Stock

Activity 2.5 Date:__________________________
AroChem Traders is a business that sells cleaning materials and personal protective equipment (PPE) for
Corona virus (COVID-19). PPE includes surgical masks, particulate filter respirators, N95 masks, surgical gloves,
goggles, glasses, face shields, gowns and aprons.
The business uses a mark-up of 50% on cost price.
Required to do:
1. Record the transactions of in the Debtors Journal. Close off the journal at the end of the month.
2. Show the effect of the transactions on the elements of the Accounting equation.
Transactions: July 2022
09 Sold cleaning materials on account to B Penny, R 7 800. Issued invoice 01
10 Issued invoice to P. van Wyk for R 3 600 for particulate filter respirators sold on account.
14 Sold the following items on account to D. Selahle:
• N95 masks R 1 830
• Surgical gloves R 1 350
• Face shields R 1 620
Debtor`s Journal of _________________________________ _____________ DJ2
Doc No. Day Debtor Fol. Sales Cost of Sales

Accounting Equation
No Source Subsidiary Account Account Accounting Equation

document Journal debited credited
A = OE + L

Activity 2.6 Date_____________________________
Use the information provided to prepare the Debtor’s Journal of Nhlanhla Stores for August 2022.
The business uses a mark of 40% on cost
Transactions for August 2022:

9 Issued invoice A01 to M. Moola, for R700.
12 Sold goods on credit to A Duncan, for R350.
15 Sold goods with the Cost Price of R5 000 on account to B. Maponya
Answer sheet
Debtor’s Journal of Nhlanhla Stores –August 2022 DJ3
Doc No. Day Debtor Fol Sales Cost of Sales

Date Source Subsidiary Account debited Account Effect on the Accounting Equation
Document Journal credited A OE L

TERM 3

REVISION ACTIVITY 2: Date:___________________________
TERM 2 WORK
The following information was extracted from the records of BB Suppliers for March 2022. They sell cleaning
materials.
Required:
1. Record the transactions in the following subsidiary books using the provided answer sheet:
• Debtor’s Journal
• Cash Receipts Journal
2. Show the effect on the Accounting Equation for the transactions dated 4 & 25.
3. Post to the Trading Stock and Debtors Control Accounts only.
4. Post to the account of S Madida in the Debtors’ Ledger.
Note: mark-up on cost is 50%
Some of the balances have been entered on the legder accounts.
Transactions:
1 The owner P Nkosi increased his capital contribution by R30 000. The funds were paid directly into the business
bank account.
3 Cash Sales of merchandise per Cash Register Roll, R16 800.
4 Issued credit invoice no: 01 to P.Dladla for R12 000.
10 Issued receipt no. C02 to P. Dladla in part payment of his account .R1 000.
15 Sold goods on credit to S Madida, R22 500. Invoice 02 was issued.
25 S Madida made EFT payment with reference EFT2 in full settlement of his account.
30 The bank statement showed a deposit of R2 000 from M. Khanye for monthly rental.
Debtor’s Journal of ___________________________________________ DJ7

Doc No. Day Debtor Fol Sales Cost of Sales

CASH RECEIPTS JOURNAL OF ________________________________________ ________________ CRJ 10
Doc Day Details Fol. Analysis of Bank Sales Cost of Debtors Sundry Accounts
Receipts Sales Control Amount Fol Details
No

Effect of transactions on the Accounting equation
55
Day Source document Subsidiary Account debited Account credited Accounting equation
Journal
A = OE + L
DR. GENERAL LEDGER OF _________________________________ CR.
TRADING STOCK
DEBTORS CONTROL
Debtors Ledger of ____________________________________

________________________________ D6
Date Day Details Folio Debit (+) Credit (-) Balance

CREDIT PURCHASES
CREDIT PURCHASES CONCEPTS
CREDITORS JOURNAL is the subsidiary Journal that is used to record all credit purchases transactions done by
the business.
Source document used is the Original Invoice.
All original invoices received from the suppliers should be renumbered in sequence order when recorded in
Creditors Journal.
What is a credit purchase?

A credit purchase takes place when goods or services are purchased by an enterprise but are only paid for at a
future date.
What is a creditor?
A creditor is someone or another business enterprise to whom the business owes money.
A creditor is a CURRENT LIABILITY to an enterprise.
Remember current liability is a liability which is repayable within a short period, usually a year.
Effects Of Credit Purchases And Payment To Creditors On Accounting Equation
Example 3A
Required:
Use the answer sheet provided to record the following transaction on the Accounting Equation.
1. Bought goods on credit from Ngaoko Suppliers for R4 500. Received an invoice.
2. Sent an EFT Payment Advice of R1 200 to Buthane Suppliers in part-payment of our account.
3. Bought Stationery for R300 from Ndlovu Suppliers. Received an invoice.
Answer sheet
NO Source document Subsidiary Account Account Effect on the Accounting Equation
1 Original Credit Creditors Trading Creditors +4 500 0 +4 500
invoice Journal Stock control
2 EFT Payment Cash Creditors Bank -1 200 0 -1 200
Advice Payments Control
Journal
3 Original Credit Creditors Stationery Creditors 0 -300 +300
Invoice Journal Control

Activity 3.1 Date_________________________________
Required:
1. Bought a Vehicle on credit from Nissan for R54 500. Received an invoice.
2. Transferred R3 200 to Bhengu Suppliers in part-payment of our account.
3. Bought the following from SaveMor Suppliers and received an invoice:
Cash register R 3 300 and Packing Material R 400
Answer sheet
NO Source Subsidiary Account Account Effect on the Accounting Equation
document Journal debited credited A = OE L
_______________________________________________________________________________________________________
Activity 3.2 Date________________________________
Required:
1. Bought a Vehicle on credit from Nissan for R54 500. Received an invoice.
2. The bookkeeper made an EFT payment of R2 000 JJ Bhengu Suppliers in part-payment of our account.
3. Bought the following from SS Suppliers and received an invoice:
• Stationery, R 400.
Answer sheet
NO Source Subsidiary Account Account Effect on the Accounting Equation
document Journal debited credited A = OE L

RECORDING OF CREDIT PURCHASES TRANSACTIONS
Recording Transactions
(This table gives guidance on how the source documents have been adjusted)
Source
Description/Transaction Journal Ledger accounts
Document
1. Credit purchases from suppliers (Creditors)
Business buys items from suppliers
on credit. Original
Invoice Cr Creditors Control in the General Ledger
Payment is delayed according to CJ
(Invoice Cr Creditor in the Creditors’ Ledger
credit terms
renumbered)
2. Payments to Creditors using EFT

A creditor is paid by Electronic
Funds Transfer facility (EFT).
EFT Payment
Proof of payment is sent to the Advice Dr Creditors Control in the General Ledger
creditor. CPJ Dr Creditor in the Creditors’ Ledger
(with reference Cr Bank in the General Ledger
This payment will immediately number)
reflect on the Bank Statement (BS)
of the business.
Note: The business enterprise receives invoice from various suppliers, therefore
they will not follow a specific numerical order and the bookkeeper must
renumber these invoices on a sequential order.
Identifying accounts
Item Account name
Laptop, Desktop, Cupboards, Shelves, Printer, cash register, Equipment
refrigerator, machinery, … etc.
Truck, delivery van, etc. Vehicle
Pens, printing paper, cartridge, writing pad, … etc. Stationery
Merchandise, goods, products (stock bought for resale) etc. Trading stock
Petrol, diesel, oil, etc. Fuel
Car service, maintenance or service of machines. etc. Maintenance
Wrapping paper, boxes, plastic bags, plastic wrap, etc. Packing material
Fixing of machines, cars, equipment, vehicles, buildings etc. Repairs

Format of a Creditors Journal
(7) used to record any

(2) the day on which transactions that cannot
(1) Source document. be entered in any of the
i.e. renumbered invoice. the transaction took
place. analysis columns given.
Creditors Journal of (the name of the business) – (Date) Month and year CJ (Journal Number)
Doc (7) Sundry Accounts
Creditors Trading
No. Day Name of Creditor Fol Control Stock Stationery Amount Fol Details
(1) (2) (3) (4) (5) (6) (6)
(4) for cross reference

(3) the name of the (5) Total (6) Trading stock and
Creditors reference
person or business from amount owed to Stationery analysis
number from Creditors
whom the business a creditor columns that might be
Ledger
purchased goods goods given
on credit
ACCOUNTING CYCLE FOR CREDIT PURCHASES

Activity 3.2 Date:____________________________
ACCOUNTING CYCLE
Complete the Accounting Cycle for Credit Purchases

Circle the correct letter, i.e 1 b)
1. Transaction
a) Credit Sales
b) Cash Sales
c) Credit Purchases
2. Source Document
a) Duplicate Invoice
b) Original Invoice
c) Duplicate of Receipt
3. Journal
a) Debtors Journal
b) Creditors Journal
c) Cash Receipts
4. Posting to Ledger
a) Debtors Ledger and General Ledger
b) Creditors Ledger and General Ledger
c) General Ledger

Example 3B
Required:
Record the following transactions in the Creditors Journal of KM Academics Suppliers for June 2022
Close off the Journal at the end of the month.
Transactions for June 2022

09 Bought goods from Bhamjees Traders on account for R 900 and received their invoice no. B049.
Renumbered to R01.
15 Received pens and printing paper for R350 and Packing Material R450 from DNA Suppliers with Invoice
S20.
25 Bought a delivery van from Bhamjees Traders for R80 000 on account and received invoice T01.
Creditors Journal of KM Academics Suppliers – June 2022 CJ 1

Doc Sundry Accounts
Creditors Trading
No. Day Name of Creditor Fol Control Stock Stationery Amount Fol Details
R01 9 Bhamjees Traders 900 900
Packing
R02 15 DNA Suppliers 800 350 450 Material
R03 25 Bhamjees Traders 80 000 80 000 Vehicles
81 700 900 350 80 450
Accounting Equation
No Source Subsidiary Account debited Account credited Accounting Equation

document Journal
A = OE + L
9 Original Creditors Trading Stock Creditors Control +900 0 +900
invoice Journal
15 Original Creditors Stationery Creditors Control 0 -350 +800
invoice Journal Packing material -450
25 Original Creditors Vehicle Creditors Control +80 000 0 +80 000
invoice Journal
When the business buys on credit, A = OE + L

the Creditors Control account is
always credited +80 900 = (-800 + 81 700)
+80 900 = +80 900
The equation balances

Activity 3.3 Date:___________________________
Required:
Use the transactions below to prepare the Creditors Journal of ZZ Traders as well as the accounting equation.
Transactions for June 2022
3. Bought goods from DD Suppliers on account for R77 000 and received their invoice no.001. Renumbered to
C01.
7. Received Wrapping paper and plastic bags for R5 300 and Stationery R700 from Brookes Traders with
Invoice Z80A.
21. Bought a cash register from DD Suppliers for R12 000 on account and received invoice W53.

Creditors Journal of ZZ Traders – June 2022 CJ 2
Doc Creditors Sundry Accounts
No Day Name of Creditor Fol Control Trading Stock Stationery Amount Fol Details
Accounting Equation
No Source document Subsidiary Journal Account debited Account credited Accounting Equation
64
A = OE + L
Activity 3.4 Date:___________________________
Required:
You are provided with transaction from the books of SS Traders for January 2022. The business buys cell phones
on credit.
Required:
1. Record the transactions below in the Creditors Journals provided.
2. Show the effects of the accounting equation.
Transactions: January 2022
4 Bought merchandise from Lawton Suppliers for R81 500. Received their invoice M001 and renumbered
it to L01.
9 Bought stationery from LM stationers for R300. Received invoice 02.
15 Received invoice Z44 for R40 000 from TT Motors, for a panel van.
23. Received invoice C33 from Lawton Suppliers for goods bought on credit, R78 900 and photocopying
paper R350

Creditors Journal of _______________________________________________________________ CJ _________

Doc Creditors Sundry Accounts
No Day Name of Creditor Fol Control Trading Stock Stationery Amount Fol Details
Accounting Equation
No Source document Subsidiary Journal Account debited Account credited Accounting Equation
A = OE + L
66
RETURNS TO CREDITORS
There are times when the business may wish to return the items to the creditor for reasons such as the goods
are damaged, or of inferior quality or not as per the original order or invoice.
These items need to be returned to the supplier or an allowance (reduction of purchase price) may be granted if
the goods are not physically returned.
• The returns will be done in line with the return policy of the creditor.
• The business usually has a department where they deal with returns.
• Returns of goods to creditors are recorded in the Creditors Allowances Journal.
• This Journal is the opposite of the Creditors Journal which records credit purchases.
• As the goods are being returned, the business owes less to the supplier.
• The format of the Creditors Allowances Journal is the same as that one of Creditors Journal.
• The source document for the Journal is called a DEBIT NOTE.
RECORDING OF RETURNS TO CREDITORS

Example 3C
You are provided with transactions of Nkululeko traders for May 2022.
Required:
• Record the following transactions in the Creditors Allowances Journal of Nkululeko Traders for May
2022.
• Use the table provided to show effect on the Accounting Equation.
Transactions for May 2022:
3 Returned Stationery, R350 to Marko Stationers. Issued debit note 01.

6 Issued debit note 02 to Mandla suppliers for goods returned, R2 000.
28 It was agreed with Themba Ltd that a vehicle, not as per the colour, will not be returned, but an allowance
of R650 will be granted by them. Debit note 03 was issued.
Answer sheet
CREDITORS ALLOWANCES JOURNAL OF NKULULEKO TRADERS-MAY 2022 CAJ 2

Doc Creditors Trading Sundry Accounts
No Day Creditors Fol Control Stock Stationery Amount Fol Details
Marko
01 3 Stationers 350 350
Mandla
02 6 Suppliers 2 000 2 000
03 28 Themba LTD 650 650 B5 Vehicles
3 000 2 000 350 650

PAYMENTS TO CREDITORS
Now let us look at what happens when the business pays their account.
• The business pays money and the Bank Account (Asset) decreases, therefore CREDITED. At the same time
our debt decreases and the Creditors Control Account (Liability) is DEBITED.
• The business pays the creditor through EFT facility. The business will receive the proof of payment which is
called EFT PAYMENT ADVICE. It is used as a source document for payments.
• The transaction is recorded in the Cash Payments Journal.
CREDITORS CONTROL column will be added in the Cash Payments Journal where all amounts paid to
creditors will be recorded.
Example 3D
Required:
1. Record the following transactions in the Cash Payments Journal of KM Academics for June 2022.
Close off the Journal at the end of the month.
2. Show the effect of the transactions on the Accounting equation
Transactions:
29 Made EFT payment to Bhamjees Traders in part-payment of their account, R29 000. EFT01.
30 Paid DNA Suppliers with EFT in settlement of the amount owed to them, R800
(New column in CPJ)
Cash Payments Journal of KM Academics Suppliers – June 2022 CPJ 2

Doc Day Name of Fol. Bank Trading Creditors Sundry Accounts
Stock Control Amount Fol. Details
No. Creditor
EFT01 29 Bhamjees Traders 29 000 29 000
EFT02 30 DNA Suppliers 800 800
29 800 29 800
Accounting Equation
KM Academics suppliers
Day Source Subsidiary Account Account Accounting Equation

Document Journal debited credited
A = OE + L
29 EFT CPJ Creditors Bank - 29 000 0 - 29 000
Payment Control
Advice
30 EFT CPJ Creditors Bank - 800 0 - 800
Payment Control
Advice

TERM 4

REVISION ACTIVITY 3: Date:___________________________
TERM 3 WORK
Required:
1. Record the transactions of BBT Suppliers for June 2022 in the following subsidiary journals:
1.1. Creditors Journal with columns for Creditors control, Trading Stock, Stationery and Sundry Accounts.
1.2. Cash Payments Journal with columns for Bank, Trading Stock, Creditors Control and Sundry Accounts.
1.3 Show the effect of transactions on the elements of the Accounting equation for the transactions dated
16 & 31.
2. Post to the Account of EE Traders in the Creditors Ledger.
3. Post to the Trading Stock and Creditors Control Accounts in the General Ledger
Transactions: June 2022

11. Received invoice 12 (renumbered to 01) from EE Traders for the purchase of the following:
• Merchandise, R 12 800
• Acer Laptop, R 3 500
16 Purchased goods on credit from Sponky Suppliers, R 22 000 and received invoice 001.
19 Bought Merchandise from Sponky Suppliers for R1 500. Paid using EFT. EFT Payment Advice reference:
EFT 11
26. Paid part of the amount owing to EE Traders with EFT, R14 400.
28. Received stationery on account from Sponky Suppliers with invoice 200, for R895.
31. Paid R12 350 using EFT, to Sponky Suppliers in part payment of their account.

1.1 Creditors Journal of ___________________________________ _________ 2022 CJ2
Doc Sundry Accounts
Creditors Trading
No. Day Name of Creditor Fol Control Stock Equipment Amount Fol. Details

71
1.2 Cash Payments Journal of _____________________________________ – _______ 2022 CPJ 2
Creditors Sundry Accounts
Doc No. Day Name of Payee Fol Bank Trading Stock Control Amount Fol Details
1.3 Accounting Equation
Day Source Subsidiary Account Account Accounting Equation

document Journal debited credited
A = OE + L
2. Creditors Ledger of ____________________________________
___________________________ _____
Date Details/Document number Fol Debit Credit Balance
3.
DR. GENERAL LEDGER OF _________________________________ CR.

CREDITORS CONTROL
TRADING STOCK

PROCEDURE TO BE FOLLOWED WHEN COMPLETING COMBINED JOURNALS
POSTING TO THE GENERAL LEDGER POSTING TO THE DEBTORS AND CREDITORS

LEDGER
1. Open the ledger accounts and enter the opening 1. Start with one debtor/creditor and continue until they
balances (If provided). are all recorded.
2. Transfer all the totals and information to the 2. Check which journal will hold the information you
relevant General Ledger Accounts. need - i.e. Debtor Journal and Cash Receipts Journal
for debtors and Creditors Journal and Cash Payments
Journal for creditors.
3. Enter the folio references each time. 3. Look for all the entries for a specific debtor/creditor
and write them in their order of dates.
4. When you have finished with the first journal, 4. Write the folio references as you complete the
proceed to the next journal. information.
5. Continue until all the information has been posted
to the General ledger
6. Balance the ledger accounts

Example 4A
Required:
1. Record the given transactions of Theban Traders in the following subsidiary Books:
• Cash Receipts Journal, all cash received is deposited daily. Merchandise is sold at a profit mark-up of
25% on cost.
Cash Payments Journal; Use the columns for Bank, Trading stock, Creditors Control and Sundry
accounts
• Debtors’ Journal
Creditors’ Journal; use columns for Creditors control, trading stock, Stationery and sundry accounts.
Transactions: December 2022
1 Owner TT Dams, increased his capital contribution from R70 000 to R150 000. The funds were
transferred directly into the bank account.
2 Purchased a new cash register online from Takealot for R2 500, Paid using online banking. EFT01
6 Received the following from NN Suppliers, invoice B01. Renumbered to TT1
• Merchandise, R15 000

Equipment R 5 000.
Wrapping paper, plastic bags and foil, R750 for cash. Paid by EFT.
9 Paid weekly wages to D. Kent by EFT, R1 500.
12 Sold merchandise on account to the following:
• KK Dealers R 800 (Cost price, R600), Invoice:11

GG Nel R1 000 (Cost Price)
15 Purchased merchandise from R.G. Sekoate for R1 420; paid by EFT.
16 Purchased pens, staples, erasers and pencils from T Khathi on account, R700
22 Cash sales of merchandise per cash register roll, R2 320.
24 Goods with the selling price of R10 000 were sold to X Mngambi online. A proof of payment with
reference: CC01 was received.
Received a proof of payment (reference: JJ1) from KK dealers, R700.
25 Bought trading stock for R3 500 from T Khathi on account. Received invoice 55
26 Made eletronic transfer to NN Suppliers to pay their account, R15 000.
27 Issued receipt to GG Nel in part-payment of Her account, R 800.
28 Made electronic funds transfer payment of R 5 000 to T Khathi in part-payment of our account.
29 Issued a receipt to N Nkomo for R1 500, for rental.
31 Transferred R800 to the owner’s personal account.
DEBTORS JOURNAL OF THEBAN TRADERS- DECEMBER 2022 DJ02
Doc No Day Debtor Fol Sales Cost of sales
11 12 KK Dealers D1 800 600

12 √ GG Nel D2 1 250 1 000
2 050 1 600
CASH RECEIPTS JOURNAL OF THEBAN TRADERS- DECEMBER 2022 CRJ02
Doc Day Details Fol Analysis Bank Sales Cost of Debtors Sundry accounts
of receipts Sales control Amount Fol Details
P01 1 TT Dams 80 000 80 000 B1 Capital
CRR 22 Sales 2 320 2 320 2 320 1 856
BS 24 X Mngambi 10 000 10 000 8 000
BS √ KK Dealers 700 700
P02 27 GG Nel 800 800 800
P03 29 N.Nkomo 1 500 1 500 1 500 N6 Rent income

95 320 12 320 9 856 1 500 81 500
CASH PAYMENTS JOURNAL OF THEBAN TRADERS-DECEMBER 2022 CPJ02

Doc Day Name of Fol Bank Trading Wages Creditors Sundry accounts
payee stock control Amount Fol Details
EFT01 2 Takealot 2 500 2 500 B8 Equipment
EFT02 6 NN Suppliers 750 750 N4 Packing Material
75
EFT03 9 D. Kent 1 500 1 500
EFT04 15 G Sekoate 1 420 1 420
EFT05 26 NN Suppliers 15 000 15 000
EFT06 28 T Khathi 5 000 5 000
B/S 31 TT Dams 800 800 B2 Drawings
26 970 1 420 1 500 20 000 4 050
CREDITORS JOURNAL OF THEBAN TRADERS-DECEMBER 2022 CJ02
Doc Day Creditors Fol Creditors Trading Stationery Sundry Accounts
control Stock
No. Amount Fol Details
TT1 6 NN Suppliers C1 20 000 15 000 5 000 B8 Equipment
TT2 16 T Khathi C2 700 700

TT3 25 T Khathi C2 3 500 3 500
24 200 18 500 700 5 000
Example 4B
Required:
1. Use the transactions for the following days from Example 4A, page 154 to:
• Show the effects of the Accounting equation.
Days:
1, 2, 9, (12 KK dealers only), 16, 27, 26 & 31
Effect of transactions on the accounting equation:
Days Source document Subsidiary Account Account Effect on the accounting equation
journal debited credited A OE L
1 Bank Statement CRJ Capital Bank +50 000 +50 000 0
2 EFT Payment Advice CPJ Equipment Bank +/-2 500 0 0
9 EFT Payment Advice CPJ Wages Bank -1 500 -1 500 0
12 Duplicate Invoice DJ Debtors’ Sales +800 +800 0

Control
Cost of Sales Trading -600 -600 0
stock
16 Original Invoice CJ Stationery Creditors 0 -700 +700
Control
26 EFT Payment Advice CPJ Creditors Bank -15 000 0 -15 000
Control
31 Bank statement CPJ Drawings Bank -800 -800 0

Example 4C
Required:
1. Use the transactions from Example 4A, page 154 to post to the following:
1.1. Creditors Ledger.
1.2. Debtors’ Ledger
2. Prepare the Debtors’ list
3. Prepare the Creditors list
4. Post to the General ledger.
5. Balance and close off the Accounts at the end of the Month.
Balances in the General ledger on 1 December 2022:
Capital R70 000, Equipment R20 000, Debtors control R8 000

Bank (Dr) R44 900, Trading stock R10 200, Creditors Control R6 400
Sales R66 000, Cost of sales R40 800, Wages R12 600
Stationery R1 800, Packing Material R 1 000, Rent Income R5 200
Balances of debtors on 1 December 2022
KK Dealers, R5 000
GG Nel, R3 000
Balances of creditors on 1 December 2022
NN Suppliers R4 400
T Khathi, R2 000
CREDITORS LEDGER OF THEBAN TRADERS
NN SUPPLIERS C1
DATE DETAILS FOL DEBIT CREDIT BALANCE

2022 1 Account rendered/Balance b/f 4 400
Dec 6 Invoice: TT1 CJ 20 000 24 400
26 EFT05 CPJ 15 000 9 400
T KHATHI C2

Dec 16 Invoice:TT2 CJ 700 2 700
25 Invoice:TT3 CJ 3 500 6 200
28 EFT06 CPJ 5 000 1 200

Creditors’ List
Creditor Balance
NN Suppliers 9 400
T Khathi 1 200
Total 10 600
DEBTORS’ LEDGER OF THEBAN TRADERS
KK DEALERS D1

Dec 12 Invoice:11 DJ 800 5 800
25 Bank Statement CRJ 700 5 100
GG NEL D2
Dec 12 Invoice:12 DJ 1 250 4 250
27 Receipt:P02 CRJ 800 3 450
Debtors’ List
Debtor Balance
KK Dealers 5 100
GG Nel 3 450
Total 8 550

GENERAL LEDGER OF THEBAN TRADERS
Dr CAPITAL B1 Cr
2022 2022 1 Balance b/d 70 000

Dec Balance c/d 150 000 Dec 31 Bank CRJ 80 000
150 000 150 000
2022 1 Balance b/d 150 000
Jan
Dr DRAWINGS B2 Cr
2022 1 Bank CPJ 800

Dec
Dr TRADING STOCK B3 Cr
2022 1 Balance b/d 10 200 2022 31 Cost of Sales DJ 1 600

Dec Dec
31 Bank CPJ 1 420 31 Cost of Sales CRJ 9 856

31 Creditors Control CJ 18 500 Balance c/d 18 664
30 120 30 120
2022 1 Balance b/d 18 664
Jan
Dr DEBTORS CONTROL B4 Cr
2022 1 Balance b/d 8 000 2022 31 Bank CRJ 1 500

Dec Dec
31 Sales DJ 2 050 Balance c/d 8 550
10 050 10 050
2022 1 Balance b/d 8 550
Jan
Dr CREDITORS CONTROL B5 Cr
2022 31 Bank CPJ 20 000 2022 1 Balance b/d 6 400

Dec Balance c/d 10 600 Dec 31 Total purchases CJ 24 200
30 600 30 600
2022 1 Balance c/d 10 600
Jan

Dr BANK B7 Cr
2022 1 Balance b/d 44 900 2022 31 Total Payments CPJ 26 970

Dec Dec
31 Total Receipts CRJ 95 320 Balance c/d 113 250
140 220 140 220
2022 1 Balance b/d 44 900
Jan
Dr EQUIPMENT B8 Cr
2022 1 Balance b/d 20 000

Dec 6 Bank CPJ 2 500
6 Creditors CJ 5 000 Balance c/d 27 500
Control
27 500 27 500
2022 1 Balance b/d 27 500
Jan
Dr SALES N1 Cr
2022 1 Total b/d 66 000

Dec 31 Debtors Control DJ 2 250
31 Bank CRJ 12 320

80 570
Dr COST OF SALES N2 Cr
2022 1 Total b/d 49 300

Dec 31 Trading Stock DJ 1 600
31 Trading stock CRJ 9 856
60 756
Dr WAGES N3 Cr
2022 1 Total b/d 12 600

Dec 31 Bank CPJ 1 500
14 100

Dr PACKING MATERIAL N4 Cr
2022 1 Total b/d 1 000

Dec 6 Bank CPJ 750
1 750
Dr RENT INCOME N5 Cr
2022 1 Total b/d 5 200

Dec 31 Bank CRJ 1 500
6 700
Dr STATIONERY N6 Cr
2022 1 Total b/d 1 800

Dec Bank CPJ 700
2 500

TRIAL BALANCE
Example 4D
Required:
Use the General ledger from Example 4C, page 157 to prepare:
The Trial balance
TRIAL BALANCE OF THEBAN TRADERS ON DECEMBER 2022
Debit Credit
Balance Sheet Accounts Section
Capital B1 150 000
Drawings B2 800
Trading Stock B3 18 664
Debtors Control B4 8 550
Creditors Control B5 10 600
Bank B6 113 250
Equipment B7 27 500
Nominal Accounts Section
Sales N1 80 750
Cost of Sales N2 60 756
Wages N3 14 100
Packing Material N4 1 750
Stationery N5 2 500
Rent Income N6 6 700
247 870 247 870

Activity 4.1 Date:__________________________
Required:
Record the given transactions of Tekk Traders in the following subsidiary Books:
(The stock is sold at cost plus 100%)
1. Cash Receipts Journal, all cash received is deposited daily.

2. Cash Payments Journal; Use the columns for Bank, Trading stock, Creditors control and Sundry Accounts
3. Debtors’ journal
4. Creditors’ journal; use columns for Creditors control, trading stock, Stationery and Sundry Accounts.
Transactions: October 2022

2 The owner T Tekk, increased his capital contribution by R65 000. The funds were transferred directly into
the business bank account.
5 Purchased a new delivery truck from Ford for R70 000, Paid using online banking. EFT01
6 Received invoice 01 for the following from GG Suppliers:
• Goods worth R11 000
• Wrapping paper, plastic bags and foil, R690. (invoice renumbered to N1)
8 Paid monthly salary, R1 500 to M Nkosi by EFT.

12 Sent Goods bought on account by HH Traders for R 5 000 with invoice 04.
15 Purchased merchandise from BB Traders for R6 500; paid by EFT.
16 Purchased stationery from Treeline for cash, R700. Payment was made through EFT.
17 Bought stationery from GG suppliers for R450 on credit
18 Sold merchandise on account to Zenkosi Stores for R10 000
19 Bought stock for R5 000 from JJ Suppliers on credit. Invoive 76 was received
22 Cash sales of merchandise per cash register roll, R3 000 (Cost Price R1 500).
24 Goods with the Cost price of R12 000 were sold for cash to NN Boutique online.
The customer made a direct deposit into the business bank account.
Received a proof payment (reference: F2) from HH Traders, R3 000.
25 Made EFT payment to GG Suppliers in payment of our account, R10 000.
27 Issued receipt 01 to Zenkosi Stores in part-payment of her account, R 1 200.
28 Made electronic funds transfer payment of R 5 000 to JJ Suppliers in part-payment of our account.
29 N Moagi a tenant transferred R1 155 for rental of the office space.
30 Bought a motorbike from JJ Suppliers for R 7 000 on account. Received invoice 11.
31 Transferred R1 450 to the owner’s personal account for his wife’s birthday gift.

DEBTORS JOURNAL OF TEKK TRADERS- OCTOBER 2022 DJ5
Doc No Day Debtor Fol Sales Cost of sales

CASH RECEIPTS JOURNAL OF TEKK TRADERS- OCTOBER 2022 CRJ5
Doc Day Details Fol Analysis of Bank Sales Cost of Debtors Sundry Accounts
Receipts Sales Control Amount Fol Details

85
CASH PAYMENTS JOURNAL OF TEKK TRADERS- OCTOBER 2022 CPJ5
Doc Day Name of Payee Fol Bank Trading Stock Wages Creditors Sundry Accounts
Control Amount Fol Details
CREDITORS JOURNAL OF TEKK TRADERS FOR OCTOBER 2022 CJ5
Doc No. Day Creditors Fol Creditors Trading stock Stationery Sundry accounts
control
Amount Fol Details
86
The creators of Simplified Accounting would like to acknowledge and express gratitude for the support received
from the Team of Academics in the Financial Sector, the Team of Facilitators in the Education Sector, and the IT
Team. Your enthusiasm, effort and patience are highly appreciated.
The professional guidance, constructive criticism, and hours of dedication of all teams in various fields and
regions, does not go unnoticed – thank you.
Special thanks to members of the Team of Advisory in the Education Sector for your contributions:
• P. Van Wyk
• T. Letlotlo
• M.R. Selahle
• T. Makhura

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Simplified Accounting

Workbook & Activities | Learner’s Book | Sample Book

M.E. MOKOENA | T.S. KUBHEKA | B. KHOZA

Compiled, Edited and Quality Assured under:

Also by same authors:

KM Academics (PTY) LTD

Sample Book ©2019 KM Academics

Credit Sales Transactions 73

Credit Purchases Transactions 112

Procedures for Posting (General, Debtors & Creditors Ledger) 153

Sample Book ©2019 KM Academics 3

4 Sample Book ©2019 KM Academics

i) Transaction – Exchange of goods or services for money (Receipts & Payments)

Sample Book ©2019 KM Academics 5

No Transaction Source Document Journal

6 Sample Book ©2019 KM Academics

Sample Book ©2019 KM Academics 7

Transactions: March 2022 – Quick Dry Clean and Laundry Services

8 Sample Book ©2019 KM Academics

Sample Book ©2019 KM Academics

The impact of 4IR in the Accounting and Auditing profession

IS THERE A NEED FOR ACCOUNTANTS AND AUDITORS IN THE NEAR FUTURE?

Sample Book ©2019 KM Academics 11

The Fourth Industrial Revolution (4IR) represents a

1.1. In your own words, explain Fourth Industrial Revolution (4IR)

Sample Book ©2019 KM Academics 13

In Grade 8 you have learnt about bookkeeping of a service business.

How a trading business operates

• Cost price + profit mark-up = selling price

14 Sample Book ©2019 KM Academics

3. Profit (When Cost of Sales is given)

e.g. Sales = R 4 200, Cost of Sales = R 2 800

16 Sample Book ©2019 KM Academics

Complete the below table

Cost of Sales Sales Profit Mark-up

(iii) R 4 750 (iv) 25%

(v) R 4 500 (vi) 125%

R 2 800 (vii) R 1 400 (viii)

(ix) R 17 850 (x) 75%

Activity 1.2 Date:_____________________________

Complete the below table

Sales Cost of Sales Mark-up Profit

(iii) R 6 500 40% (iv)

(v) (vi) 10% R 550

(vii) R 2 500 (viii) R 1 250

R 975 (ix) 25% (x)

Sample Book ©2019 KM Academics 17

• Accounting Equation is the most fundamental equation of double-entry bookkeeping system; it

For a Cash sale transaction, there are 2 Double entries:

18 Sample Book ©2019 KM Academics

Which TWO ACCOUNTS are affected?

What TYPE OF ACCOUNTS are they (A, OE (Income/expense) or L?

Will the account INCREASE and /or DECREASE?

Are Assets = OE + Liabilities?

Account debited Account credited Assets = OE +L

Assets (+1 200) = OE(+1 200) + L (0)

Yes, Assets are equal to owner’s equity + Liabilities

Sample Book ©2019 KM Academics 19

20 Sample Book ©2019 KM Academics

Sample Book ©2019 KM Academics 21

SOURCE DOCUMENT EXPLANATION SUBSIDIARY JOURNAL

Duplicate Receipt Issued to people/businesses for payments Cash Receipts Journal

22 Sample Book ©2019 KM Academics

1. Name of the Source Document__________________________