ECONOMIC- AND MANAGEMENT SCIENCES
Grade 9
Business, consumer and financial knowledge and skills
Module 17
Recording cash transactions of service and commercial enterprises
Section 1: Auxiliary Journals
ACTIVITY 1:
To record cash transactions of service and commercial enterprises
[LO 3.3]
The following cash transactions regularly occur in service and commercial enterprises:
CRJ
- Capital contribution, capital increase or capital reduction by the owner
- Receipt of cash for services provided
- Sale of goods for cash
CPJ
- Purchase of goods and other items for cash
- Payment of operating expenditure
These transactions, where cash is received or paid, are recorded in the CRJ or the CPJ.
ASSIGNMENT 1:
- Complete a CRJ and CPJ for the service enterprise, Mzondi Plumbers. Use CRJ 3.1.1 and CPJ 3.1.1 on the pages that follow.
- Service enterprises are businesses that get an income from providing services and their income is recorded in the CRJ in a column headed: Current Income.
- Z. Mzondi started a business called Mzondi Plumbers. The transactions below occurred during September. Record them in the CRJ and the CPJ and close the journals on 30 September 2003.
September 1 Z. Mzondi starts the business by depositing his capital contribution of R50 000 in the current bank account
September 3 Rents a building from Denvon Properties and pays the rent of R525 by cheque 001
September 6 Purchases service materials to the value of R1 009 from Puma Stores and pays by cheque 002
September 8 Issues cheque 003 for R4 500 to Lundi Stores for equipment purchased
September 11 Receives stationery from Bundu Dealers and pays R487 by cheque 004
September 12 Receives R2 073 cash as per cash-register roll for services provided
September 14 Pays the municpality R390 by cheque 005 for water and electricity
September 15 Cashes cheque 006 for R190 for wages
September 21 Receives R1 795 cash as per cash-register roll for services provided
September 25 Pays Telkom R106 by cheque 007 for telephone
September 27 Cheque 008 for R477 is issued to Mpula Insurers for insurance
September 29 Wages of R210 are paid by cheque 009
September 30 Purchases a vehicle for R28 000 from Mdantsane Motors and pays by cheque 010
Cash-register roll shows R2 418 received for services provided
ASSIGNMENT 2:
- Complete a CRJ and CPJ for the commercial enterprise, Levubu Dealers.
- In the case of a commercial enterprise, goods are purchased and sold to make a profit. Goods are purchased at a certain price (cost price) and sold at a higher price (selling price) in order to make a profit.
- Both the cost price and the selling price are recorded in the CRJ so that the profit can be calculated at the end of the period. In the CRJ columns provision must be made for sales and the cost price of sales instead of current income, as in the case of a service enterprise.
- Use the information provided and show the entries in the Cash Receipts Journal and the Cash Payments Journal of Levubu Dealers (CRJ 3.1.2 and CPJ 3.1.2 on the pages that follow).
- On 1 July 2003 G. Levu started the business with a capital contribution of R130 000 deposited in the current bank account.
- According to the cheque counterfoils the following cheques were issued in July: