REVISION

 

 

REVISION ACTIVITY NO. 1  (CPJ, CJ AND CAJ)

 

B. Brook started a bookshop with the name “Incredible books”.

Use the information to complete the following:

1. The Cash Payments Journal with columns for Bank, Trading stock, Creditors     Control and Sundry Accounts.
2. The Creditors Journal and Creditors Allowances Journal with columns for  Creditors control, Trading stock, Stationery and Sundry Accounts.
3. Post the 3 journals to the accounts in the General Ledger as well as the Creditors              Ledger.  Balance the accounts where applicable.
4. Check the accuracy of your work by completing the Creditors’ list on the last         day of the month.
5. USE THE ANSWER SHEETS PROVIDED.
    
   Some of the transactions for January 2014:
          1      Bought books (trading stock) from ABC Publishers on credit, 
   R12 500 and receive their invoice no. Z132.  Re-number this external invoice to C01 for filing purposes.
   6     Bought books (trading stock), R5 100 and stationery for office use, R340 from Dladla Wholesale Stationers and receive their credit invoice, no. SS128 for the total amount.  Re-number this external invoice for filing purposes. 10            Repaired the business vehicle on credit at Pit Stop Garage and received            their credit invoice, nr. PS139 for R2 700.  Re-number this external invoice.
   12     Sent a debit note no. CN331 to Pit Stop Garage for R200, to correct a mistake made on the original invoice of 10 January. Received their Credit note and an apology for the mistake they have made.
         18    Bought the following on credit from “Books for Africa”:
   Goods for re-sale, R5 700
   Stationery for office use, R310
   One shelf, R1 200
   Received their invoice no. AA2034 and re-number it.
   20     Bought Trading Stock from ABC Publishers and issued cheque no. 220 for the amount of R2 300.
         23    Bought books from Dladla Wholesalers on credit:
                  For re-sale, R8 300
                  For the owner’s children, R290
                  Receive invoice no. RR239 for the total amount. 
   25     Returned books with missing pages to Dladla Wholesalers, together with a debit note for the cost price of the books, R540.

1. Issued cheque no 221 to pay ABC Publishers for the purchases made on 1 January.

30      Issued a cheque to pay Dladla Wholesalers for the purchases made on 6 January.

               Issued a cheque to pay the amount owed to Pit Stop Garage.

        

Cash Payments Journal of Incredible Books for January  20….                                                                                              CPJ 5

Doc no.

Day

Name of payee

Fol.

Bank

Tradin stock

g

Credit contr

ors ol

Sundry accounts

Amou

nt

Fol.

Details

 

    Creditors‟ Journal of Incredible Books for January  20...                                                                                         CJ 5                     

Doc no.

Day

Creditor

Fol.

Credito contro

rs l

Tradin stock

g

Station

ery

Sundry accounts

Amount

Fol.

Details

 

     Creditors Allowances Journal of Incredible Books for January  20...                                                                   CAJ 5                    

Doc no.

Day

Creditor

Fol.

Credito contro

rs l

Tradin stock

g

Station

ery

Sundry accounts

Amount

Fol.

Details

General Ledger of Incredible Books  

Balance Sheet Section

Dr				Drawings					B2		Cr
Dr				Equipment					B3		Cr

 

Dr                                                            Trading Stock                                    B4                      Cr

 

Dr                                                         Creditor’s Control                                B5                      Cr

 

Dr                                                                     Bank                                           B6                   Cr

 

 

Nominal Section

Dr                                                              Stationery                                       N4                        Cr

 

Creditors‟ Ledger of Incredible Books  

                                                                              ABC Publishers                                              C1

Date	Day	Details	Fol	Deb	it	Credit		Balance

 

                                    Dladla Wholesalers                                         C2

Date	Day	Details	Fol	Deb	it	Credit		Balance

  

                                     Pit Stop Garage                                             C3

Date	Day	Details	Fol	Deb	it	Credit		Balance

 

                                     Books for Africa                                            C4

Date	Day	Details	Fol	Deb	it	Credit		Balance

 

      

Creditor‟s list of Incredible Books on 31 January 20….  :

ACTIVITY NO. 2  (CRJ, DJ, DAJ + Trial Balance)

 

Use the information to complete the following in the books of “DJ‟s Music Store”:

1. The Cash Receipts Journal (CRJ12) with columns for Analysis of receipts,           Bank, Sales, Cost of Sales, Debtor’s Control and Sundry Accounts.
2. The Debtor’s Journal (DJ12) and Debtors Allowance Journal (DAJ12).
3. Post the journals to the few accounts provided in the General Ledger as well as  the Debtors’ Ledger.  Balance the accounts where applicable.
4. Check the accuracy of your work by completing the Debtors’ list on the last           day of the month.
5. Draw up a Trial Balance on 31 December 20...
   5.         Mark-up is always 50%.
    
   Balances on 1 December 20..:

Capital	B1	R89 600
Trading stock	B2	R48 800
Debtors control	B3	R  3 500
Bank	B4	R45 600
Sales	N1	R24 900

Cost of sales    Debtors Ledger:	N2	?
S. Samson	D1	R  2 400
C. Cool	D2	R  1 100

Some of the transactions of “DJ„s Music Store” for December 20..:

 

 1    The owner, Mr. DJ Jackson increased his capital with R50 000, deposited directly into the business account at ABC Bank.  Issued receipt no. 350.         Cash sales per cash register roll, R3 000.  (Mark-up is always 50%)  4     Sold trading stock on credit to S. Samson, R1 200.  

               (Determine cost of sales). Issued the original invoice no. D400.

 5      S. Samson returned 3 CDs that were wrongly added to his order of 4 December, R600.  Issued credit note no. CN44 for the amount.

11      Sold trading stock on credit to C. Cool, R900.  (Invoice no. ?).  Determine             the cost of sales.

12      C. Cool returned goods that were totally damaged by the courier on delivery, R250.  It is not possible to sell these goods again to any other customer.  Issued the next credit note for this amount.  Number all source documents on your own.

      15     Goods sold on account to M. Moon, R1 800.  Determine the cost of sales.

      18     Cash sales for the day, R9 000.  (Cost of Sales?)  

      25     Sold goods on credit to S. Samson, R1 500.  (Cost of sales?)

30      Received R700 from M Moon as payment of his account.  Issued a receipt.

               Received rent from the tenant, P Malan, R1 700.

31      Received an amount from C. Cool to settle his account.

               Issued a receipt to S. Samson for paying R1 000 on his account.

 

Cash Receipts Journal of DJ‟s Music Store for December  20 ….                                                              CRJ 12

Doc no.

Day

Details

Fol.

Analysis receipt

of s

Bank

Sales

Cost o sales

f

Debto contr

rs ol

Sundry accounts

Amount

Fol

Details

 

Debtors‟ Journal of DJ‟s Music Store for December 20 ….                                       DJ12

Doc no.	Day	Debtors	Fol.	Sales		Cost of sales

 

Debtors Allowance Journal of DJ‟s Music Store for December 20 ….                  DAJ12

Doc no.	Day	Debtors	Fol.	Debtor allowan	s ce	Cost of sales

General Ledger of DJ‟s Music Store 

Balance Sheet Section

Dr                                                                   Capital                                         B1                      Cr

 

Dr                                                         Trading Stock                                       B2                     Cr

 

Dr                                                         Debtors’ Control                                   B3                     Cr

 

Dr                                                                      Bank                                           B4                    Cr

Nominal Section

Dr                                                                 Sales                                              N1                     Cr

 

Dr                                                             Cost of Sales                                    N2                    Cr

Dr

Debtors allowances

N3

Cr

Dr

Rent income

N4

Cr

 

 

Debtors‟ Ledger of DJ‟s Music Store                                           

                                 

                                          S. Samson                                   D1

Date	Day	Details	Fol	Debit		Credit		Balance

              

                                               C. Cool                                 D2

Date	Day	Details	Fol	Debit		Cred	it	Balance

M. Moon                                 D3

Date		Day	Details	Fol	Deb	it	Credi	t	Balance

 

     Debtor‟s list of DJ‟s Music Store  on 31 December 20… :

 

 

                      Trial Balance of DJ‟s Music Store on 31  December 20 ..                               

			Fol	Debit		Credit

                QUESTIONS:

 

1.2.1	What is the value of his tangible / fixed assets?	(2)
1.2.2	Name two current assets mentioned indirectly in the scenario.	(2)
1.2.3	How much was his total income for the first month?	(2)
1.2.4	Calculate the cost of sales on his cash sales for the month.	(4)
1.2.5	Is 'Business Equippers' a debtor or a creditor of Muzi's spaza shop?   ………………    Explain your answer briefly:   ………………………………………  ……………………………………………………………………………………………	(3)