EMS / Accounting Teacher s Guide Grade 8 Authors: Yvette Russell Lisa Akerman Séan Topper

Transcription

1 EMS / Accounting Teacher s Guide Grade 8 Authors: Yvette Russell Lisa Akerman Séan Topper

2 Studying Business Grade 8 Accounting 2012 Edition 3 rd Print Lisa Akerman Sean Topper Yvette Russell 1

3 Published by: Excom Publishers CC PostNet Suite 75 Private Bag X3 Paardekraal Fax: ISBN: Studying Business Design, Layout and Print by Corpnet Copyright: No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means whatsoever, without the prior written permission of the authors. Note: ONLY FOR THE USE OF PORTFOLIOs: Individual exercises may be copied for submission provided this is only for the Portfolio of the learner who has purchased the book. Exercises and Rubrics MAY NOT be shared with other learners, schools or clusters. 2

4 CHAPTER 1 BASIC ACCOUNTING CONCEPTS Task 1 Ensure the learners have provided at least 6 different assets and six different expenses. Check the classification of these items. Task 2: Owner s Equity Assets Liabilities Income Expenses Current assets Non Current Assets Current liabilities Non Current liabilities Capital ( ) Bank (75 000) Vehicle (64 000) Bank (11 000) Equipment (11 000) Bank (17 000) Trading Inventory (20 000) Creditor (3 000) Vehicle (85 000) Loan (85 000) Bank (3 000) Current Income (3 000) 3

5 Task 3: List of 5 expenses 1 Reams of paper, it is an expense because once it is used you can t replace it. 2 Telephone, it is an expense because the calls have already been made and cannot be redialled without paying for them. 3 Water and electricity, it is an expense because you cannot recover it once it has been used. 4 Tea and coffee, it is an expense because it is consumed. 5 Toilet paper, it is an expense because it gets flushed down the toilet never to be used again. Possible other expenses: Fertilizer, light bulbs, stationery. Task 4 1. Capital is also known as investment. 2. A debtor owes money to the business. The debtor has bought goods on credit. 3. Yes, the school does have debtors, as parents pay our school fees every month. They receive the service now but pay later. 4. A business may not always have sufficient capital. The business can then borrow money from the bank or buy 5a) R x 100 = 20% R b) R x 100 = 17,5% R

6 CHAPTER 2 ASSETS = OWNER S EQUITY + LIABILITIES Task 5 ASSETS = OWNER'S EQUITY + LIABILITIES No Amount Reason Amount Reason Amount Reason Bank increases Capital increases Stationery = Bank decreases -200 expense If the account says the word: expense or income there is no need to repeat that the account is infact one of those. (number 3 & 4 & 10) Bank increases +600 Current income Bank decreases Rent expense Packing material = Bank decreases expense Bank decreases Wages = expense Bank decreases Equipment increases Bank decreases Land and Building increases Bank decreases Equipment increases Bank increases Current income Bank decreases Equipment increases 5

7 Task 6 ASSETS = OWNER'S EQUITY + LIABILITIES No Amount Reason Amount Reason Amount Reason Bank increases Capital increases Bank decreases Land & Building increases Bank decreases -800 Water and electricity = expense Bank increases Rent income Bank increases +500 Current income Bank decreases Wages = expense Bank decreases Bank decreases -700 Advertisement = expense Insurance = expense Bank increases Capital increases Bank increases +950 Current income Bank decreases Equipment increases 6

8 Task 7 ASSETS = OWNER'S EQUITY + LIABILITIES No Amount Reason Amount Reason Amount Reason Bank increases Capital increases Bank decreases Vehicle increases Bank decreases -200 Drawings increases Bank increases -750 Fuel = expense Bank increases Current income Bank decreases Equipment increases Bank increases Rent income Bank decreases -480 Stationery = expense Bank increases Capital increases Bank decreases Trading inventory increases 7

9 CHAPTER 3 ACCOUNTING CYCLE AND THE FLOW OF TRANSACTIONS Task (a-c) Name of Payee Date Datuum: 25/05/10 To Aan: TELKOM For Vir: Telephone Balance b/f Saldo o/b Amount paid in Bedrag inbetaal Other debits Ander debiete Balance Saldo This cheque Hierdie tjek Balance c/f SaldoBalance o/d R450,00 Drawee Cheque Counterfoil Cheque number Account Number Cheque number 8

10 Task 9 Checklist Criteria Yes No Is the name of the store displayed clearly? 2 0 Has a date been used? 1 0 Has the item being purchased listed correctly? 2 0 Is the VAT amount calculated correctly? 2 0 Is the total amount reflected clearly 2 0 Overall impression. Good? 1 0 TOTAL /10 9

11 CHAPTER 4 A SERVICE UNDERTAKING Task 10 Cash Receipts Journal of Invisible Cleaners for January Analysis of Current CRJ1 Sundry Receipts Bank Income Doc D Details Fol Amount Fol Details R01 1 Mr Muscle Capital crr 3 Rendered R02 7 Books Galore Rent Income R03 11 Mr Muscle Capital crr 18 Rendered crr 30 Rendered

12 Task 11 Cash Receipts Journal of DJ s for ALL for January Analysis of Current CRJ1 Sundry Receipts Bank Income Doc D Details Fol Amount Fol Details R01 1 Mr Kay Capital crr 3 Rendered bs 6 ABSA Bank Interest Income R02 15 Mr Kay Capital crr 19 Rendered crr 20 Rendered R03 29 Mr Kay Capital

13 Task 12 Cash Receipts Journal of Zippy s Waste Removal for October CRJ1 Analysis of Current Sundry Receipts Bank Income Doc D Details Fol Amount Fol Details R01 1 Zola Seven Capital crr Rendered crr 4 Rendered crr 9 Rendered R02 15 Mr Homeless Rent Income R03 Zola Seven Capital crr 23 Rendered bs 28 FNB Interest Income

14 Task 13 Cash Receipts Journal of Upper Cut for November CRJ1 Analysis of Current Sundry Receipts Bank Income Doc D Details Fol Amount Fol Details R01 1 Cindy Nel Capital crr 2 Rendered R02 5 Lola Lee Rent Income R03 7 Cindy Nel Capital crr 11 Rendered crr 15 Rendered R04 22 Cindy Nel Capital crr 24 Rendered crr 27 Rendered R05 30 Josie Black Rent Income

15 Task 14 Cash Receipts Journal of Cash for May CRJ1 Analysis of Current Sundry Receipts Bank Income Doc D Details Fol Amount Fol Details R001 1 Mr Luckey Zola Capital crr 8 Rendered R Mr Luckey Zola Capital crr Rendered crr 15 Rendered crr 23 Rendered crr 29 Rendered

16 Task 15 Cash Receipts Journal of Mimeo s Deliveries for October Analysis of Current CRJ1 Sundry Receipts Bank Income Doc D Details Fol Amount Fol Details R01 1 Mimeo Joubert Capital crr Rendered crr 5 Rendered R02 Mimeo Joubert Capital crr 8 Rendered crr 15 Rendered Gigi s Doggie R03 25 Parlour Rent Income R04 Mimeo Joubert Capital crr Rendered

17 Task 16 Cash Receipts Journal of Marais Plumbers for January Analysis of Current CRJ1 Sundry Receipts Bank Income Doc D Details Fol Amount Fol Details R001 1 Mr Marais Capital crr 5 Rendered R Mr Marais Capital crr Rendered crr 21 Rendered bs ABSA Interest Income R003 Mr Marais Capital crr 30 Rendered

18 Task 17 Cash Payments Journal of Tom s Electrical for July CPJ 1 Sundry Bank Equipment Material Amount Doc D Name of Payee Fol Fol Details 87 1 Telkom Telephone 88 Wesbank Loan: Wesbank 89 4 Shell Garage Petrol 90 Waltons Stationery 91 7 Cash Wages 92 9 Eskom Training Cash Petty Cash Vortex Cash Wages Crabtree Weylands Cash Wakefields Rent Expense 100 Municipality Water & Electricity 101 Cash Wages Fix-It Repairs SOS Wholesalers

19 Task 18 Cash Payments Journal of Personal Chauffeur for September CPJ 1 Doc D Name of Payee Fol Bank Equipment Stationery Amount Sundry Fol Details 01 1 Municipality Water and electricity 02 7 Makro Incredible Audio BP Fuel Cash Drawings Cash Wages Cell C Telephone The Mercury Advertising

20 Task 19 Cash Payments Journal of Langs Way for March CPJ1 Doc D Name of Payee Fol Bank Equipment Consumable Stores Amount Sundry VW Mastercars Vehicle 002 Municipality Electricity 003 CHC Stores Pick n Pay Caxton Papers Advertising Golden Printers Stationery SPCA Donations Loco Ads Advertising Wash n Go Pick n Pay Telkom Telephone HP DEFY Cash Drawings Fol Wages Lucy Lang Salaries Shell Garage Fuel Details 19

21 Task 20 Cash Payments Journal of Reds Hairdresser for January Sundry CPJ1 Doc D Name of Payee Fol Bank Wages Packing material Amount Fol Details Doring distributors Cash Cresta Management Rent Expense 544 Teddy Suppliers Stationery Cash I Ivins Equipment 547 R Ramsy Consumable Stores Metro Cash and Carry Cash Trip Repairs Repairs 551 Cash

22 Task 21 Cash Payments Journal of Eric s Plumbers for June CPJ1 Doc D Name of Payee Fol Bank Equipment Material Cost Amount Sundry Fol Details Muncipality Water and Electricity Fran s 223 Properties Rent Expense 224 Comp-Limited Wobker Plumbers Wholesalers Sam s 226 Suppliers Stationery Cash Wages James Stores ROP CC Hart s 230 Wholesalers Cash Wages Beta Stores Telkom Telephone Car CC Repairs Sam s Suppliers Stationery

23 Grade 8 Accounting Educators Guide Task 22 Cash Receipts Journal of Fast Movers for June Analysis of Current CRJ1 Sundry Receipts Bank Income Doc D Details Fol Amount Fol Details 01 1 I Mkhize Capital crr 7 Rendered crr 9 Rendered crr 24 Rendered I Mkhize Capital Studying Business

24 Task 22 continued Cash Payments Journal of Fast Movers for June CPJ1 Sundry Name of Bank Equipment Doc D Payee Fol Amount Fol Details 001 Daihatsu Vehicle Sony Oscar 003 Properties Rent Expense Expressions Agency Advertising Cash Wages Doctor Dent Repairs Santam Insurance MTN Telephone I Mkhize Salaries Garage Surplus Rent expense

25 Task 23 Cash Receipts Journal of Jolie s Nursery School for June CRJ1 Analysis of Current Sundry Receipts Bank Income Doc D Details Fol Amount Fol Details R001 1 Angelina Jolie Capital crr 25 Rendered R002 Jennifer Aniston Rent Income bs Investic Interest Income

26 Cash Payments Journal of Jolie s Nursery School for June CPJ1 Sundry Name of Bank Amount Doc D Payee Fol Wage Equipment Fol Details Pitt Motors Vehicles Playground 002 Warehouse Cash Mom s Mail Advertising Hollywood Municipality Rates Water and Electricity 006 Angelina Jolie Salaries 007 Cash

27 Task 24 Cash Receipts Journal of Football Cleaners for July CRJ1 Analysis of Current Sundry Receipts Bank Income Doc D Details Fol Amount Fol Details R088 1 A. Ferguson Capital R089 9 Mr Liver Pool Rent Income crr 12 Rendered crr 25 Rendered R090 A. Ferguson Capital

28 Task 24 Continued Cash Payments Journal of Football Cleaners for July CPJ1 Sundry Name of Bank Equipment Doc D Payee Fol Amount Fol Details Ronaldo 61 3 Stores Manchester 62 Municipality Water and Electricity 63 Drogba 8 Rentals Rent Expense 64 Scholes 9 Stationers Stationery Cash Wages 66 Spar Consumable Stores Giggs Suppliers Cash Drawings Sir A Ferguson Salaries

29 Task 25 Cash Receipts Journal of Topies Tailors for October CRJ 1 Analysis of Current Sundry Receipts Bank Income Doc D Details Fol Amount Fol Details R01 1 Mrs Topie Capital crr 4 Rendered crr 6 Rendered R02 Hilda Cronje Rent Income R03 11 Mrs Topie Capital crr 24 Rendered

30 Task 25 continued Cash Payments Journal of Topies Tailors for October CPJ 1 Sundry Stationery Doc D Name of Payee Fol Bank Wages Amount Fol Details 01 1 Colombo Estates Rent Expense 02 4 Cash TNA-Traders Fielas Insurers Insurance 11 Sommer Lekker 05 Traders Packing material 06 Cash Donkie Traders Rhodes 08 Furniture s Equipment Steve s Motors Vehicles TNA-Traders Computer CC Equipment

31 Task 26 Cash Payments Journal of Lone Hill Hairdresser for January CPJ 1 Doc D Name of Payee Fol Bank Equipment Sundry Wages Amount Fol Details 01 3 Tina s Traders Dik Daan Estates Rent Expense Rooibos Rand Siembamba Estates Land and Buildings Jimmy s computers Bennies Dealers Packing material Cash Cash Tops-Traders Stationery

32 Task 26 Continued Cash Receipts Journal of Lone Hill Hairdresser for January CRJ 1 Analysis of Current Sundry Receipts Bank Income Doc D Details Fol Amount Fol Details R01 3 Mrs Mooi Capital crr Rendered crr 13 Rendered crr 20 Rendered R02 Mrs Mooi Capital crr 29 Rendered

33 Task 27 General Ledger of Rambo Balance Sheet Section Capital B1 Aug 1 Bank CRJ Bank CRJ Aug 28 Bank CPJ Drawings B2 Land and Buildings Aug 1 Bank CPJ B3 Equipment Aug 31 Bank CPJ B4 Bank B5 Total Aug Receipts or Sundry 31 Accounts CRJ Aug Total Payments or Sundry 31 Accounts CPJ Balance c/d Sept 1 Balance c/d

34 Task 28 Cash Receipt Journal of Herman s Repairs for January CRJ 1 Analysis of Current Sundry Doc D Details Fol Receipts Bank Income Amount Fol Details R 33 1 Herman Greenberg B1 Capital CRR 5 rendered R Miss Marais N2 Rent income CRR rendered B2 N1 Task 28 Continued Cash Payment Journal of Herman s Repairs for January CPJ 1 Bank Wages Packing Sundry Doc D Name of Payee Fol Material Amount Fol Details C 23 5 John s Stores Cash Dinky Stationers N5 Stationery Real Deals B2 N3 N4 33

35 General Ledger of Herman s Repairs Balance Sheet Section Capital B1 Jan 1 Bank CRJ Bank B2 Jan Total 31 Receipts CRJ Jan 31 Total Payments CPJ Feb 1 Balance c/d Balance c/d Nominal Account Section Current Income N1 Jan 31 Bank CRJ Rent Income N2 Jan 10 Bank CRJ Wages Jan 31 Bank CPJ N3 Packing Material Jan 31 Bank CPJ N4 Stationery Jan 18 Bank CPJ N5 34

36 Task 29 Cash Receipt Journal of Accountants CC for November CRJ Analysis of Current Sundry Doc D Details Fol Receipts Bank Income Amount Fol Details R 58 5 James Jameson N2 Rent income 59 8 Peter Patel N2 Rent income Crr 13 rendered Crr 30 rendered Task 29 Continued B1 N1 Cash Payment Journal of Accountants CC for November CPJ Bank Wages Advertising Sundry Doc D Name of Payee Fol Amount Fol Details C M Net Letterheads Shop N5 Stationery BP Garage N6 Fuel Cash B1 N3 N4 35

37 Nov 30 Total Receipts CRJ Balance c/d General Ledger of Accountants CC Balance Sheet Section Bank B1 Nov 30 Total Payments CPJ Dec 1 Balance c/d Nominal Account Section Current Income N1 Nov 30 Bank CRJ Rent Income N2 Nov 5 Bank CRJ Bank CRJ Wages Nov 30 Bank CPJ N3 Advertising Nov 30 Bank CPJ N4 Stationery Nov 17 Bank CPJ N5 Fuel Nov 22 Bank CPJ N6 36

38 Task 30 Cash Receipts Journal of Fairy CC for February CRJ 1 Analysis of Current Sundry Receipts Bank Income Doc D Details Fol Amount Fol Details R 01 1 Mrs. Roux B1 Capital CRR 10 rendered R Mrs. Roux B1 Capital CRR rendered R Baby Blue N2 Rent income CRR rendered CRR 22 rendered CRR 28 rendered B2 N1 37

39 Cash Payments Journal of Fairy CC for February CPJ Sundry Doc D Name of Payee Fol Bank Wages Stationery Amount Fol Details 01 1 Dean Developers B3 Land and Buildings 02 4 Municipality N5 Water and Electricity 03 6 Cash FRB Partnership Manie Motors B4 Vehicles Cash Mark-Traders N6 Packing material Rina Jansen N7 Rent expense Cash Sam's Stationery B2 N3 N4 38

40 General Ledger of Fairy CC Balance Sheet Section Capital B1 Nov 1 Bank CRJ Bank CRJ Bank B2 Nov Total 30 Receipts CRJ Nov 30 Total Payments CPJ Dec 1 Balance c/d Balance c/d Land and Buildings Nov 1 Bank CPJ B3 Nov 30 Bank CPJ Vehicles B4 Nominal Account Section Current Income N1 Nov 30 Bank CRJ Rent Income N2 Nov 15 Bank CRJ Wages Nov 30 Bank CPJ N3 39

41 Stationery Nov 30 Bank CPJ N4 Water and Electricity Nov 4 Bank CPJ N5 Packing Material Nov 17 Bank CPJ Rent Expense Nov 22 Bank CPJ N6 N7 40

42 Task 31 Cash Receipts Journal of BBBEE - August CRJ 1 Doc D Details Fol Analysis Bank Current SUNDRY of receipt Income Amount Fol Detail R01 1 D Tutu Capital CRR 10 rendered CRR 18 rendered CRR 25 rendered R02 30 D. Tutu Capital R03 31 T. Mbeki Rent income

43 Cash Payments Journal of BBBEE - August CPJ1 Doc D Name of Payee Fol Bank Equipment Wages SUNDRY Amount Fol Detail Q01 1 Tokyo Estates B3 Land & Buildings 02 5 Cyril Stationers Stationery 03 7 Cash Maria Dealers Cash McCarthy Auto Repairs Cash Zuma Plastics Packing Material Maria Dealers Cyril Stationers Stationery Cash Cash B2 Drawings D Tutu Salary B5 B4 42

44 Aug 28 Bank CPJ General Ledger of BBBEE Balance Sheet Section Capital B1 Aug 1 Balance b/d Drawings Bank CRJ Bank CRJ B Land and Buildings Aug 1 Balance b/d Bank CPJ B3 Equipment Aug 1 Balance b/d Bank CPJ B4 Bank Total Aug 31 Receipts CRJ Sept 1 Balance b/d Aug 1 Balance b/d Bank CPJ Balance c/d

45 Nominal Section Current Income N1 Aug 1 Total b/d Bank CRJ Stationery Aug 1 Total b/d Bank CPJ Bank CPJ Wages Aug 1 Total b/d Bank CPJ N2 N3 Task 32 CASH RECEIPTS JOURNAL 30 September Bank R Current Income R Capital R Rent Income R CASH PAYMENTS JOURNAL 30 September Bank R Wages R5 000 Material Costs R7 690 Equipment R

46 Task 32 continued General Ledger of Sipho s Landscape Balance Sheet Section Capital B1 Sept 1 Balance b/d Bank CRJ Equipment Sept 1 Balance b/d Bank CPJ B2 Bank B3 Sept 1 Balance b/d Sept 30 Total Payments CPJ Total 30 Receipts CRJ Balance c/d Oct 1 Balance b/d

47 Task 32 continued Nominal Section Current Income N1 Sept 1 Total b/d Bank CRJ Rent Income N2 Sept 1 Total b/d Bank CRJ Sept 1 Total b/d Bank CPJ Wages N3 Material Costs Sept 1 Total b/d Bank CPJ N4 46

48 Task 33 General Ledger of Face-IT Consultants Balance Sheet Section Capital B1 Oct 1 Bank CRJ Bank CRJ Vehicles Oct 1 Balance b/d B2 Bank B3 Oct 1 Balance b/d Oct Total payments / Sundry 31 Accounts CPJ Total receipts / Sundry 31 Accounts CRJ Balance c/d Nov 1 Balance b/d Nominal Account section Current Income N1 Oct 31 Bank CRJ Rent Income N2 Oct 6 Bank CRJ Stationery Oct 1 Total b/d Bank CPJ Advertising Oct 18 Bank CPJ N3 N4 47

49 Task 34 Trial Balance of Rambo - 31 July Balance Sheet section Fol Debit Credit Capital B Drawings B Land and Buildings B Vehicles B Equipment B Bank B Nominal Account section Current income N Rent income N Wages N Stationery N Salary N Rent expenses N Fuel N Task 35 Trial Balance of River Sand Lodge 31 May Fol Debit Credit Balance Sheet section Capital B Drawings B Land and Buildings B Vehicles B Equipment B Bank B Nominal Account section Current Income Rent Income N Interest Income N Salary N Wages N Interest expense N Fuel N7 903 Material Cost N

50 Task 36 Trial Balance of Red Roses on 31 December Balance Sheet section Fol Debit Credit Capital B Bank B Equipment B Vehicles B Drawings B Nominal Account section Current Income N Wages N Consumable Stores N Stationery N Rent Income N Fuel N Sundry Income N Telephone N Water and Electricity N Task 36 continued Red Roses Income Statement for the year ending 31 December Current income Other operating income Rent Income Sundry Income Gross operating income Operating expenses ( ) Wages Consumable Stores Stationery Fuel Telephone Water and Electricity Net profit for the year

51 Task 37 Trial Balance of Doggy Parlour 28 February Balance Sheet section Fol Debit Credit Capital B Bank overdraft B Equipment B Vehicles B Drawings B Nominal Account section Current Income N Wages N Consumable Stores N Fuel N Sundry Income N Rent expense N Water and Electricity N Advertising N Doggy Parlour Income Statement for the year ending 28 February Current income Other operating income Sundry Income Gross operating income Operating expenses ( ) Wages Consumable Stores Fuel Rent expense Water and Electricity Advertising Net profit for the year

52 Task 38 Trial Balance of Johannesburg Car 30 June Balance Sheet section Fol Debit Credit Capital B Bank B Equipment B Drawings B Nominal Account section Current Income N Wages N Consumable Stores N Rent Income N Advertising N Water and Electricity N Telephone N Johannesburg Car Income Statement for the year ending 30 June Current income Other operating income Rent Income Gross operating income Operating expenses ( ) Wages Consumable Stores Advertising Water and Electricity Telephone Net loss for the year ( ) 51

53 Task 39 Trial Balance of Western Province 31 December Fol Debit Credit Balance Sheet Section Capital B Drawings B Vehicles B Equipment B Land and Buildings B Cash float B Bank B Nominal Account Section Current Income N Wages N Rent Income N Stationery N Fuel N Postage N Water and Electricity N Insurance N

54 Task 39 continued Western Province Income Statement for the year ending 31 December Current income Other operating income Rent Income Gross operating income Operating expenses ( ) Wages Stationery Fuel Postage Water and Electricity Insurance Net profit for the year Western Province Balance Sheet at 31 December ASSETS Note Non-Current Assets Tangible assets Current Assets Inventory - Trade and other receivables - Cash and cash equivalents TOTAL ASSETS EQUITY and LIABILITIES Owner's Equity Non-Current liabilities - Current liabilities - - TOTAL EQUITY and LAIBILITIES

55 Notes to the Balance Sheet: 1. Tangible assets: Land and buildings Vehicles Equipment Cash and cash equivalents: Bank Cash float Owner s equity: Capital balance 1 January Net profit for the year Drawings (1 000) Balance 31 December

56 Task 40 Use the following Trial Balance and prepare an Income Statement and Balance Sheet: Trial Balance of Pink Foot 28 February Fol Debit Credit Balance Sheet Section Capital B Drawings B Land and Buildings B Equipment B Vehicles B Bank B Petty cash B Nominal Account Section Current Income N Telephone N Rent Income N Repairs N Advertising N Sundry expenses N Salaries N Insurance N

57 Task 40 continued Pink Foot Income Statement for the year ending 28 February Current income Other operating income Rent income Gross operating income Operating expenses ( ) Telephone Repairs Advertising Sundry Expenses Salaries Insurance Net profit for the year Pink Foot Balance Sheet at 28 February ASSETS Note Non-Current Assets Tangible assets Current Assets ( ) Inventory - Trade and other receivables - Cash and cash equivalents 2 ( ) TOTAL ASSETS EQUITY and LIABILITIES Owner's Equity Non-Current liabilities - Current liabilities - TOTAL EQUITY and LAIBILITIES This Balance Sheet does not balance. Can you figure out why? - 56

58 Notes to the Balance Sheet: 1. Tangible assets: Land and buildings Vehicles Equipment Cash and cash equivalents: Bank (16 000) Cash float 800 (15 200) 3. Owner s equity: Capital balance 1 March Net profit for the year Drawings (500) Balance 28 February Task 41 Cost price Profit Selling price 1) R100 R50 R150 2) R880 10% R968 3) R % R ) R999 5% R ) R % R1000 6) R % R ) R % R ) R % R ) R % R ) R % R

59 Task 42 Cash Receipts Journal of Invisible Ink for September CRJ1 Sundry Analysis of Cost of Doc Day Details Fol Receipts Bank Sales sales Amount Fol Details R001 1 Mr Invisible Capital crr 3 Sales crr 7 Sales R002 Mr Apple Rent Income crr 15 Sales R003 Mr Invisible Capital crr 19 Sales crr 22 Sales R Mr Invisible Capital B1 N1 B2/N2 58

60 Task 43 Cash Receipts Journal of Tom Thumb Party Packs for June CRJ1 Sundry Analysis of Cost of Doc Day Details Fol Receipts Bank Sales sales Amount Fol Details R001 1 TomThumb Capital R002 4 Tinkerbell Rent Income crr Sales R P. Pan Rent Income crr 17 Sales crr 18 Sales crr 26 Sales R004 Tom Thumb Capital B1 N1 N2/B2 59

61 Task 44 Cash Receipts Journal of Hero Traders for July CRJ1 Sundry Analysis of Cost of Doc Day Details Fol Receipts Bank Sales sales Amount Fol Details crr 02 Sales crr 9 R12 Sales Mr J Timberlake Capital crr 16 Sales R13 25 Mrs Spider Rent Income B1 N1 N2/B2 60

62 Task 45 Cash Receipts Journal of Pumpkin Printers for March Analysis of Cost of CRJ1 Sundry Doc Day Details Fol Receipts Bank Sales sales Amount Fol Details R001 1 Mr Pumpkin Capital crr 3 Sales crr 4 Sales R002 Mr Banana Rent Income crr 19 Sales bs FNB Interest Income R003 Mr Pumpkin Capital crr 22 Sales R Mr Pumpkin Capital

63 Task 46 Cash Receipts Journal of Vaughn Retailers for December CRJ1 Sundry Analysis of Cost of Doc Day Details Fol Receipts Bank Sales sales Amount Fol Details R01 1 Ms Vaughn Capital crr 5 Sales crr 16 Sales R02 Ms Vaughn Capital crr 18 Sales R03 28 Ms Vaughn Capital crr Sales

64 Task 47 Cash Receipts Journal of Dull Dealers for May Analysis of receipts Bank Sales Cost of Sales Sundry Doc Day Details Fol Amount Fol Details CRJ1 R01 1 Daphne Dull crr 5 Sales Capital R02 Daphne Dull Capital crr 22 Sales R03 Daphne Dull Capital

65 Cash Payments Journal of Dull Dealers for May CPJ1 Sundry Doc Day Details Fol Bank Stationery Trading Inventory Equipment Amount Fol Details Cash and Carry 01 1 Wholesalers Jimmy s Sole 02 3 Traders Cash Wages 04 Survival CC Packers (Pty) Ltd Packing Material The Star Advertising 07 Sammy s Shop Hill Dealers Cash Wages 10 Makro Damelin College Drawings 12 B Naude Salaries Note to learner: What do you notice about the wages account? What do you suggest would be better and why? Wages are paid out weekly, therefore it happens frequently and so should receive its own column. 64

66 Task 48 General Ledger of Invisible Ink Sept 30 Total Receipts CRJ Balance Sheet Section Bank B1 Trading Inventory B2 Sept 30 Cost of Sales CRJ Nominal Account Section Sales N1 Sept 30 Bank CRJ Sept 30 Cost of Sales Trading Inventory CRJ N2 Task 49 General Ledger of Tom Thumb Balance Sheet Section Bank June 1 Balance b/d Total 30 Receipts CRJ June 1 Balance b/d July 1 Balance b/d Trading Inventory B1 B2 June 30 Cost of Sales CRJ Balance c/d

67 Nominal Account Section Cost of Sales June 1 Total b/d Trading 30 Inventory CRJ Sales N1 June 1 Total b/d Bank CRJ N Task 50 General Ledger of Hero Traders Balance Sheet Section Bank July 1 Balance b/d Total 31 Receipts CRJ July 1 Balance b/d Trading Inventory B1 B2 July 30 Cost of Sales CRJ Balance c/d Aug 1 Balance b/d Nominal Account Section Sales N1 July 1 Total b/d Bank CRJ Cost of Sales July 1 Total b/d Trading Inventory CRJ N

68 Task 51 General Ledger of Mama Themba s Spar Balance Sheet Section Capital B1 Dec 1 Balance b/d Bank CRJ Bank CRJ Trading Inventory B2 Dec 1 Balance b/d Dec 31 Cost of Sales CRJ Bank CPJ Balance c/d Jan 1 Balance b/d Nominal Account Section Bank B3 Dec 1 Balance b/d Dec 31 Total Payments CPJ Total 31 Receipts CRJ Balance c/d Jan 1 Balance b/d Nominal Section Sales N1 Dec 1 Total b/d Bank CRJ Cost of Sales Dec 1 Total b/d Trading 31 Inventory CRJ N2 67

69 Dec 1 Total b/d Bank CPJ Wages N3 Task 52 General Ledger of Marcus Wholesalers Balance Sheet Section Bank B1 June 1 Balance b/d June 30 Total Payment CPJ Total 30 Receipts CRJ Balance c/d July 1 Balance b/d Trading Inventory B3 June 1 Balance b/d June 30 Cost of Sales CRJ Bank CPJ Balance c/d July 1 Balance b/d

70 Task 52 continued Nominal Section Sales N1 June 1 Total b/d Bank CRJ Cost of Sales June 1 Total b/d Trading 30 Inventory CRJ N2 Task 53 Correct Partially correct Not correct Appropriate Heading Four accounts named correctly Trading Inventory is shown as an asset Cost of Sales is shown as an expense influencing owner s equity Sales is shown as an income influencing owner s equity Bank is shown as an asset The double entry principle is clear in the poster, for every debit there is a credit The contra accounts are indicated correctly TOTAL / 20 Task =1.4 Mark-up: 40% OR Sales Cost of Sales x 100 Cost of sales x = 40% 69

71 Josie s Boutique Income Statement for the year ending 31 March Sales (or Turnover) Cost of Sales Gross Profit Other operating income Rent Income Gross operating income Operating expenses ( ) Stationery Wages Telephone Net profit for the year Task 54 continued Josie s Boutique Balance Sheet on 31 March ASSETS Note Non-Current Assets Tangible assets Current Assets Inventory Trade and other receivables - Cash and cash equivalents TOTAL ASSETS EQUITY and LIABILITIES Owner's Equity Non-Current Liabilities Mortgage loan: FNB Current Liabilities Trade and other payables - TOTAL EQUITY and LIABILITIES

72 Notes to the Balance Sheet: 1. Tangible assets: Vehicles Equipment Cash and cash equivalents: Bank R Owner s equity: Capital balance 1 April 2009 R Net profit for the year R Drawings (R ) Balance 31 March R Task 55 Income Statement of Joshua s Music Store for year ending 31 March Sales Cost of Sales Gross Profit Other operating income - Gross operating income Operating expenses Advertising Packing Material Stationery Wages Insurance Telephone Net profit for the year ( ) 71

73 Task 55 continued Balance Sheet of Joshua s Music Store on 31 March ASSETS Note Non-Current Assets Tangible assets Current Assets Inventory Trade and other receivables - Cash and cash equivalents TOTAL ASSETS EQUITY and LIABILITIES Owner's Equity Non-Current Liabilities Loan: ABSA Current Liabilities Trade and other payables TOTAL EQUITY and LIABILITIES Notes to the Balance Sheet: 1. Tangible assets: Land & Buildings R Equipment R Cash and cash equivalents: R Bank R Owner s equity: Capital balance 1 April 2009 R Net profit for the year (22 000) Drawings (60 000) Balance 31 March R Trade and other payables: Creditors Control R

74 Task 56 Balance Sheet of Fashion Warehouse on 28 February ASSETS Note Non-Current Assets Tangible assets Current Assets Inventory Trade and other receivables Cash and cash equivalents TOTAL ASSETS EQUITY and LIABILITIES Owner's Equity Non-Current Liabilities Loan: ABSA Current Liabilities Trade and other payables TOTAL EQUITY and LIABILITIES R To pay for the Building Task 57 Assess according to your own criteria. 73

75 Task 58 Effect No General Ledger Assets Owner s Equity Liabilities Debit Credit + (debit) - (credit) - (debit) + (credit) - (debit) + (credit) 1 Bank Capital Trading Inventory Bank Wages Bank Bank Current Income Rent Expense Bank Stationery Creditors Control Creditors Control Bank Bank Rent Income