<< Chapter < Page Chapter >> Page >

Economic and management sciences

Grade 9

Business, consumer and financial knowledge and skills

Module 18

Recording credit transactions of commercial ans service enterprises

Activity 1:

To record credit transactions of commercial and service enterprises

[lo 3.3]

Not all transactions done by businesses are cash transactions. Sometimes transactions are on credit, in other words payment is only made at a later date.

When credit transactions are done, they must be recorded in order to have a record and to ensure that the amounts owing are paid on the due date and are received. The entries are usually made from the credit invoices.

The business can sell goods on credit to clients. The persons who owe money to the business are called debtors and are a current liability to the business.

These transactions are entered in the Debtors Journal . It is important that the cost price of sales be taken into account to be able to calculate the correct profit.

The entry is made as follows in the Debtors Journal:

In­voice Day Debtors Fol. Sales Selling costs
101 1 S. Swanepoel 140 100

The effect of such transactions on the accounting equation is as follows:

(a) Asset + (debtor’s debt decreases)Ownership interest + (income increases)

(b) Ownership interest – (expenditure increases)Asset - (trading inventory decreases)

The purchase of goods or other items on credit means that the business owes money to another business or person, called a creditor. A creditor is regarded as a current liability to the business. These entries are based on credit invoices and are made in the Creditors Journal as follows:

In-voice Day Creditor Creditors control Trading inventory Statio-nery
Sundries accounts
Amount Fol. Details
001 1 Werda Suppliers R520 R520

The effect of such transactions on the accounting equation is as follows:

(a) If an asset is purchased on credit: Asset + (trading inventory increases) Liability + (creditors increase)

(b) If credit expenditure is incurred: Ownership interest – (expenditure increases) Liability + (creditors increase)

ASSIGNMENT 1:

Record the transactions below in the Debtors Journal of Gesina Dealers and close the journal by adding up the column totals. (Use DJ 3.2.1 on the next page.)

The information for April 2003 is as follows:

Goods are sold at a profit of 33⅓%.

Invoice Date To whom Selling price
713 April 3 C. Simpson R210
714 April 10 C. Simpson R346
715 April 11 N. Nguni R920
716 April 16 C. Simpson R400
717 April 18 L. Naidoo R312

ASSIGNMENT 2:

Record the transactions in the Creditors Journal of Toledo Dealers and close the journal by adding up the column totals. (Use CJ 3.2.1 on the following pages.)

The information for May 2003 is as follows:

Original invoices received from suppliers have been renumbered as follows:

2003

May 1 No. 225 from Transo Dealers for equipment, R380

5 No. 226 from Trixo Suppliers for goods, R1 328

8 No. 227 from S&S Distributors for goods purchased, R625, and stationery, R185

12 No. 228 from Computec for repairs to the computer, R500

15 No. 229 from Trixo Suppliers for goods, R300, and packaging material, R260

22 No. 230 from S&S Distributors for goods, R530

25 No. 231 from Zee Signs for advertising poster, R285

31 No. 232 from Trixo Suppliers for stationery, R220, and packaging material, R345

Assessment

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

Debtors journal of gesina dealers - april 2003dj 3.2.1

Invoice Day Debtors Fol Sales Selling costs
713 3 C. Simpson 210 157.50
714 10 C. Simpson 346 259.50
715 11 N. Nguni 920 690-
716 16 C. Simpson 400 300-
717 18 L. Naidoo 312 234-
2 188 1 641
B2/N1 B1/N2

ACTIVITY1

ASSIGNMENT 2

Creditors journal of toledo dealers - may 2003cj 3.2.1

In-voice Day Creditors Fol Creditors control Trading inventory Stationery Packaging material
Sundries account
Amount Fol Details
225 1 Transo Dealers 380 - 380 - B1 Equipment 226 5 Trixo Suppliers 1 328 - 1 328 - 227 8 S&S Distributors 810 - 625 - 185 - 228 12 Computec 500 - 500 - N3 Repairs 229 15 Trixo Suppliers 560 - 300 - 260 - 230 22 S&S Distributors 530 - 530 - 231 25 Zee Signs 285 - 285 - N4 Advertising 232 31 Trixo Suppliers 565 - 220 - 345 - 4 958 - 2 783 - 405 - 605 - 1 165 - B3 B2 N1 N2

Questions & Answers

where we get a research paper on Nano chemistry....?
Maira Reply
what are the products of Nano chemistry?
Maira Reply
There are lots of products of nano chemistry... Like nano coatings.....carbon fiber.. And lots of others..
learn
Even nanotechnology is pretty much all about chemistry... Its the chemistry on quantum or atomic level
learn
Google
da
no nanotechnology is also a part of physics and maths it requires angle formulas and some pressure regarding concepts
Bhagvanji
Preparation and Applications of Nanomaterial for Drug Delivery
Hafiz Reply
revolt
da
Application of nanotechnology in medicine
what is variations in raman spectra for nanomaterials
Jyoti Reply
I only see partial conversation and what's the question here!
Crow Reply
what about nanotechnology for water purification
RAW Reply
please someone correct me if I'm wrong but I think one can use nanoparticles, specially silver nanoparticles for water treatment.
Damian
yes that's correct
Professor
I think
Professor
Nasa has use it in the 60's, copper as water purification in the moon travel.
Alexandre
nanocopper obvius
Alexandre
what is the stm
Brian Reply
is there industrial application of fullrenes. What is the method to prepare fullrene on large scale.?
Rafiq
industrial application...? mmm I think on the medical side as drug carrier, but you should go deeper on your research, I may be wrong
Damian
How we are making nano material?
LITNING Reply
what is a peer
LITNING Reply
What is meant by 'nano scale'?
LITNING Reply
What is STMs full form?
LITNING
scanning tunneling microscope
Sahil
how nano science is used for hydrophobicity
Santosh
Do u think that Graphene and Fullrene fiber can be used to make Air Plane body structure the lightest and strongest. Rafiq
Rafiq
what is differents between GO and RGO?
Mahi
what is simplest way to understand the applications of nano robots used to detect the cancer affected cell of human body.? How this robot is carried to required site of body cell.? what will be the carrier material and how can be detected that correct delivery of drug is done Rafiq
Rafiq
if virus is killing to make ARTIFICIAL DNA OF GRAPHENE FOR KILLED THE VIRUS .THIS IS OUR ASSUMPTION
Anam
analytical skills graphene is prepared to kill any type viruses .
Anam
Any one who tell me about Preparation and application of Nanomaterial for drug Delivery
Hafiz
what is Nano technology ?
Bob Reply
write examples of Nano molecule?
Bob
The nanotechnology is as new science, to scale nanometric
brayan
nanotechnology is the study, desing, synthesis, manipulation and application of materials and functional systems through control of matter at nanoscale
Damian
Is there any normative that regulates the use of silver nanoparticles?
Damian Reply
what king of growth are you checking .?
Renato
What fields keep nano created devices from performing or assimulating ? Magnetic fields ? Are do they assimilate ?
Stoney Reply
why we need to study biomolecules, molecular biology in nanotechnology?
Adin Reply
?
Kyle
yes I'm doing my masters in nanotechnology, we are being studying all these domains as well..
Adin
why?
Adin
what school?
Kyle
biomolecules are e building blocks of every organics and inorganic materials.
Joe
how did you get the value of 2000N.What calculations are needed to arrive at it
Smarajit Reply
Privacy Information Security Software Version 1.1a
Good
Got questions? Join the online conversation and get instant answers!
Jobilize.com Reply

Get the best Algebra and trigonometry course in your pocket!





Source:  OpenStax, Economic and management sciences grade 9. OpenStax CNX. Sep 15, 2009 Download for free at http://cnx.org/content/col11074/1.1
Google Play and the Google Play logo are trademarks of Google Inc.

Notification Switch

Would you like to follow the 'Economic and management sciences grade 9' conversation and receive update notifications?

Ask