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Income for services provided
The money received by a business for services provided (also known as current income), is usually received by means of a cash register and the cash-register roll serves as record and source document. The money received can also be recorded in an invoice book and the copy of the cash invoice will then serve as source document.
The completed CRJ shows how the type of transaction is recorded. (See example 1.)
Salon Jolie’s current income for January has been obtained from the cash register roll and is as follows:
Jan. 4 R400
Jan. 10 R540
Jan. 15 R680
Use the blank cash receipts journal on the next page (CRJ 3.3) to record the cash transactions below.
Enter the totals in the columns.
Mr Peter Pipe starts a plumbing business called Pipe Plumbers and deposits R10 000 as capital in the current account of the business on 1 July 2002. During July he provided plumbing services and earned the following as current income:
5 July R1 500
15 July R2 000
25 July R1 800
| Doc. | Day | Details | Fol. | Analysis | Bank | Current income |
| Sundries accounts | ||
| Amount | Fol. | Details |
| Doc. | Day | Details | Fol. | Analysis | Bank | Current income |
| Sundries accounts | ||
| Amount | Fol. | Details |
| Learning Outcomes(LOs) |
| LO 3 |
| Management, 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 when the learner: |
| 3.1 differentiates between financial concepts used in business (e.g. fixed assets, current assets, liabilities, owner’s equity); |
| 3.2 develops leadership and management strategies that will ensure a return on investments; |
| 3.3 completes source documents (e.g. receipts, deposit slips, cheques) and records elementary cash transactions in a statement of receipts and payments; |
| 3.4 uses keyboard skills and function keys in developing, storing and retrieving basic information; |
| 3.5 explains the concept and analyses a statement of net worth; |
| 3.6 investments the various methods of savings and investments (e.g. savings accounts, fixed deposits, shares, unit trusts), and calculates on a variety of investments. |
ACTIVITY 1
Cheque - Is used for cheque payments. Serves as proof of payment.
DateAmount in words and figuresName of payeeSignature of drawer
DateAmount Cheque counterfoilPayeeReason for payment
Receipt - Serves as proof of cash payment
Date From whom money was receivedReason for paymentAmount in words and figuresSignature of person who issued receipt
Invoices - Are used in the case of cash or credit sales and purchases
Invoice numberDate Name of buyer or seller in the case of cash transactionDescription of goodsUnit price and total price
Bank deposit slip - Is completed when money is deposited in bank account
DateName of account holderBranch numberAccount numberReference numberExplanation of cashInformation with regard to cheque depositDetails of depositorSignature
ACTIVITY 2
Learners may use a deposit slip from any bank. Please ensure that it is completed in full, and go through it with them. Explain the terms/concepts, e.g. branch number, depositor (and why the depositor’s details must be provided).
ACTIVITY 3
| Doc | Day | Details | Fol | Analysis | Bank | Current income |
| Sundries account | ||
| Amount | Fol | Details |
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