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Recording payments to creditors

Module by: Siyavula Uploaders. E-mail the author

ECONOMIC AND MANAGEMENT SCIENCES

Grade 9

BUSINESS, CONSUMER AND FINANCIAL KNOWLEDGE AND SKILLS

Module 20

RECORDING PAYMENTS TO CREDITORS

ACTIVITY1:

To record payments to creditors

[LO 3.3]

When the amounts owed to creditors are paid, a cheque (that serves as source document) is issued. The entry is made in the CPJ in an additional column headed Creditors Control.

The effect of the transaction on the accounting equation is as follows:

  • Assets - (Bank decreases)
  • Liabilities - (Creditors decrease)

ASSIGNMENT 1: Creditors Journal and Cash Payments Journal

  • Record the following information for Marais Dealers in CJ 3.4.1 for March and CJ 3.4.2 for April 2003, and in CPJ 3.4.1 for April 2003. The original invoices received from suppliers have been renumbered.

2003

March 3 No. 316 from Bengo Wholesalers for goods, R1 560

4 No. 317 from Situ and Co. for packaging material, R625

5 No. 318 from Banda Ltd. for repairs to vehicle, R380

6 No. 319 from Pento and Son for stationery, R345

10 No. 320 from Pento and Son for advertising poster, R258

20 No. 321 from Bengo Wholesalers for goods, R780

2003

April 4 No. 322 from Situ and Co. for goods, R560

8 No. 323 from Bergtuin Motors for delivery vehicle, R7 500

12 No. 324 from Banda Ltd. for repairs to delivery vehicle, R330

16 No. 325 from Pento and Son for stationery, R280

20 No. 326 from Bengo Wholesalers for goods, R757

  • Cheque counterfoils

2003

April 2 No. 642 to Bengo Wholesalers in settlement of account, R2 340

3 No. 643 to Pento and Son in settlement of their account, R603

6 No. 644 to the municipality for water and electricity, R110

8 No. 645 to Situ and Co. in settlement of their account, R625

10 No. 646 to Boland Wholesalers for goods, R950

14 No. 647 cash for wages, R210

15 No. 648 cash for personal use of the owner, R500

18 No. 649 to Maxi Suppliers for the following:

Goods, R600

Cash register, R400

20 No. 650 to Prompt Printers for advertising posters, R235

30 No. 651 to the manager, M. Meintjies, for salary, R1 250

CASH PAYMENTS JOURNAL OF MARAIS DEALERS - APRIL 2003 CPJ 3.4.1

Table 1
Doc. Day Name of beneficiary Fol. Bank Creditors control Trading inventory Stationery Wages
Sundries accounts
Amount Fol. Details
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   

CREDITORS JOURNAL OF MARAIS DEALERS – MARCH 2003 CJ 3.4.1

Table 2
In-voice Day Creditors Fol. Creditors control Trading inventory Statio-nery Vechicle costs Packaging material
Sundries accounts
Amount Fol. Details
                                   
                                   
                                   
                                   
                                   
                                   
                                   

CREDITORS JOURNAL OF MARAIS DEALERS – APRIL 2003 CJ 3.4.2

Table 3
In-voice Day Creditors Fol. Creditors control Trading inventory Stationery Vehicle costs
Sundries accounts
Amount Fol. Details
                               
                               
                               
                               
                               
                               
                               
                               
                               

ASSIGNMENT 2:

  • Enter the transactions below in the correct auxiliary journals. Close by calculating the column totals. (Use CRJ 3.4.1, CPJ 3.4.2, DJ 3.4.1 and CJ 3.4.3.)

November

1 A. Enslin, the owner, deposits a capital contribution of R20 000 – Receipt no. 001 is issued to him

Purchases equipment to the value of R2 630 from Pronto Ltd and receives credit invoice number 100 (renumber) together with the equipment

2 Cash sales of goods for R500 (cp. R400)

Cheque 001 to the value of R7 800 is issued to Highway Motors for the purchase of a vehicle

4 Cash sales of R625 are recorded (cp. R500)

5 Cheque 002 is paid to ZA Ltd

This is for cash purchases of trading stock, R490, and stationery, R200

6 Stationery to the value of R312 is purchased on credit from Malan and Co

Credit sales of R360 (cp. R280) to R. du Toit

8 Quick Suppliers provides goods of R2 890 on credit

9 Credit sales of R660 (cp. R420) to W. Bennett

10 Cash sales, R750 (cp. R600)

Travalia Office Suppliers delivers equipment purchased on credit for R1 310

The owner hands a cheque in the amount of R10 000 to the business to increase his capital contribution

11 Packaging material to the value of R880 is purchased on credit from Malan and Co

12 The business draws a cash cheque of R150 for wages

Credit invoice no. 119 is issued for goods sold to G. Wilmans, R890 (cp. R720)

14 Credit sales to W. Bennett, R520 (cp. R360)

15 A cheque to the value of R135 is issued to the Postmaster as payment for the telephone account

16 Credit invoice 104 is received from Quick Suppliers for goods, R3 060, and packaging material, R860

20 Cash sales to the value of R875 (cp. R700)

Cheque no. 006 in the amount of R870 is issued to ZA Ltd – R140 is for stationery and R730 for goods

21 A cash cheque to the value of R250 is drawn – R150 is for wages and R100 for fuel for the owner’s private vehicle

Goods to the value of R320 (cp. R180) are sold on credit to R. du Toit

22 A computer belonging to the business is repaired on credit, R621

30 Cheque no. 008 is issued to AN Manufacturers for goods, R500, and equipment, R700

Cash sales of R1 000 (cp. R800)

DEBTORS JOURNAL OF ENSLIN DEALERS – NOVEMBER 2003 DJ 3.4.1

Table 4
In-voice Day Debtors Fol. Sales Selling costs
           
           
           
           
           
           
           
           
           
           

CASH RECEIPTS JOURNAL OF ENSLIN DEALERS - NOVEMBER 2003 CRJ 3.4.1

Table 5
Doc. Day Details Fol. Analysis Bank Sales Selling costs  
Sundries accounts
Amount Fol. Details
                                   
                                   
                                   
                                   
                                   
                                   

CREDITORS JOURNAL OF ENSLIN DEALERS – NOVEMBER 2003 CJ 3.4.3

Table 6
In-voice Day Creditors Fol. Creditors control Trading inventory Stationery Vechile expenditure Packaging material
Sundries accounts
Amount Fol. Details
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   

CASH PAYMENTS JOURNAL OF ENSLIN DEALERS - NOVEMBER 2003 CPJ 3.4.2

Table 7
Doc. Day Name of beneficiary Fol. Bank Trading inventory Stationery Wages  
Sundries accounts
Amount Fol. Details
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   

Assessement

Table 8
Learning Outcomes(LOs)
 
LO 3
MANAGERIAL, Consumer and Financial Knowledge and SkillsThe learner will be able to demonstrate knowledge and the ability to apply responsibly a range of managerial, consumer and financial skills.
Assessment Standards(ASs)
 
We know this if the learner :
3.1 completes a basic income statement and balance sheet for a service and retail business;
3.2 investigates the public relations, social responsibility and environmental responsibility strategies and actions of different businesses and organisations;
3.3 completes cash and credit transactions in the books of service and retail businesses;
3.4 uses keyboard skills and function keys in developing, storing, retrieving and editing business documentation;
3.5 analyses financial statements for decision-making at a basic level;
3.6 differentiates between the forms of credit purchases.

Memorandum

ACTIVITY1

ASSIGNMENT 1

CASH PAYMENTS JOURNAL OF MARAIS DEALERS - APRIL 2003 CPJ 3.4.1

Table 9
Doc Day Payee Fol Bank Creditors control Wages Trading inventory  
Sundries account
Amount Fol Details
642 2 Bengo Wholesalers   2 340 - 2 340 -                    
643 3 Pento and Son   603 - 603 -                    
644 6 Municipality   110 -                 110 - N7 Water and Electricity
645 8 Situ and Co.   625 - 625 -                    
646 10 Boland Wholesalers   950 -         950 -            
647 14 Cash   210 -     210 -                
648 15 Cash   500 -                 500 - B1 Withdrawals
649 18 Max Suppliers   1 000 -         600 -     400 - B2 Equipment
650 20 Flink Printers   235 -                 235 - N2 Advertisement
651 30 M. Meintjies   1 250 -                 1 250 - N3 Salary
        7 823 - 3 568 - 210   1 550 -     2 495 -    
        B5   B6   N1   B4              

ACTIVITY 1

ASSIGNMENT 1

CREDITORS JOURNAL OF MARAIS DEALERS - MARCH 2003 CJ 3.4.1

Table 10
In-voice Day Creditors Fol Creditors control Trading inventory Statio-nery Vehicle costs Packaging material
Sundries account
Amount Fol Details
316 3 Bengo Wholesalers   1 560 - 1 560 -                    
317 4 Situ and Co.   625 -             625 -        
318 5 Banda Ltd   380 -         380 -            
319 6 Pento and Son   345 -     345 -                
320 10 Pento and Son   258 -                 258 - N2 Advertisements
321 20 Bengo Wholesalers   780 - 780 -                    
        3 948 - 2 340 - 345 - 380 - 625 - 258 -    
        B6   B4   N4   N5   N6          

CREDITORS JOURNAL OF MARAIS DEALERS - APRIL 2003 CJ 3.4.2

Table 11
In-voice Day Creditors Fol Creditors control Trading inventory Statio-nery Vehicle costs Packaging material
Sundries account
Amount Fol Details
322 4 Situ and Co.   560 - 560                      
323 8 Bergtuin Motors   7 500 -                 7 500 - B3 Vehicles
324 12 Banda Ltd   330 -         330 -            
425 16 Pento and Son   280 -     280 -                
326 20 Bengo Wholesalers   757 - 757 -                    
        9 427 - 1 317 - 280 - 330 -     7 500 -    
        B6   B4   N4   N5              

ACTIVITY 1

ASSIGNMENT 2

CREDITORS JOURNAL OF ENSLIN DEALERS - NOVEMBER 2003 CJ 3.4.3

Table 12
In-voice Day Creditors Fol Creditors control Trading inventory Packaging material  
Sundries account
Amount Fol Details
100 1 Pronto Ltd.   2 630 -             2 630 - B4 Equipment
101 6 Malan and Co.   312 -             312 - N4 Stationery
102 8 Quick Suppliers   2 890 - 2 890 -                
103 11 Malan and Co.   880 -     880 -            
104 16 Quick Suppliers   3 920 - 3 060 - 860 -            
105 22 Pronto Ltd.   621 -             621 - N7 Repairs
        11 253 - 5 950 - 1 740 -     3 563 -    
        B8   B5   N6              

ACTIVITY 3.4 ASSIGNMENT 2

CASH RECEIPTS JOURNAL OF ENSLIN DEALERS -NOVEMBER 2003 CRJ 3.4.1

Table 13
Doc Day Details Fol Analysis Bank Sales Cost price of sales  
Sundries account
Amount Fol Details
100 1 A. Enslin   20 000 - 20 000 -             20 000 - B1 Capital
CS1 2 Sales   500 - 500 - 500 - 400 -            
CS3 4 Sales   625 - 625 - 625 - 500 -            
1CS 10 Sales   750 -     750   600 -            
101   A. Enslin   10 000 - 10 750 -             10 000 - B1 Capital
CS4 20 Sales   875 - 875 - 875 - 700 -            
CS5 30 Sales   1 000 - 1 000 - 1 000 - 800              
            33 750 - 3 750 - 3 000 -     30 000 -    
            B7   N1   B5/N2              

ACTIVITY 1

ASSIGNMENT 2

CASH PAYMENTS JOURNAL OF ENSLIN DEALERS - NOVEMBER 2003 CPJ 3.4.2

Table 14
Doc Day Name of payee Fol Bank Wages Stationery Trading inventory  
Sundries account
Amount Fol Details
001 2 Highway Motors   7 800 -                 7 800 - B3 Vehicles
002 5 ZA Ltd.   690 -     200 - 490 -            
003 10 Travalia Office Suppliers   1 310 -                 1 310 - B4 Equipment
004 12 Cash   150 - 150 -                    
005 15 Postmaster   135 -                 135 - N5 Telephone
006 20 ZA Ltd.   870 -     140 - 730 -            
007 21 Cash   250 - 150 -             100 - B2 Withdrawals
008 30 AN Manufacturers   1 200 -         500 -     700 - B4 Equipment
        12 405 - 300 - 340 - 1 720 -     10 045 -    
        B7   N3   N4   B5              

ACTIVITY 1

ASSIGNMENT 2

Debtors journal of Enslin dealers - November 2003 DJ 3.4.1

Table 15
Doc Day Debtors Fol Sales Selling costs
117 6 R. du Toit D1 360- 280-
118 9 W. Bennett D2 660- 420-
119 12 G. Wilmans D3 890- 720-
120 14 W. Bennett D2 520- 360-
121 21 R. du Toit D1 320 180-
        2 750 1 960
        B6/N1 B5/N2

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