Accounting

D I R E C T O R AT E : C U R R I C U L U M D E V E L O P M E N TAccountingPreparation forGrade 10Workbook

Table of contentsWorksheet Details Page number1.1 Baseline assessment 12.1 Source documents – cash transactions 22.2 Cost of sales calculations 42.3 Cash journals 52.3B Accounting equation 72.4 Ledger 82.5 Trial Balance 123.1 Source documents – credit transactions 133.2 Subsidiary Journals 143.3 Ledger 193.4 Combined exercise 213.5 Accounting equation 243.6 Ledger 253.7 Analysis and interpretation – ledger accounts 263.8 Multiple choice 273.9 Consolidation 284.1 Financial statements 314.2 Analysis and interpretation – financial statements 344.3 Financial statements 354.4 Financial statements 37

Dear Accounting LearnerCongratulations on choosing Accounting as one of your Grade 10 subjects.Your subject choice will no doubt open doors for you. With this subject you will beequipped with valuable skills which include:orderlinessthoroughnessmeticulousnessaccuracyfinancial literacyethical behavioursound judgementorganisationcritical, logical and analytical abilitiesneatnessYou will learn skills that will prepare you for life, skills that you will be able to apply inany career and very importantly in your own personal life.This is an exciting, interesting and dynamic subject. Decide today, right now to enjoythis subject and even better, to love it!You will need to work regularly, every day, at this subject and I can assure you that ifyou are prepared to work diligently you will enjoy success.Enjoy this course that has been specially designed for you to prepare you for Grade 10next year. Have fun.“PASSION + VISION + ACTION is the equation for success” by Marilyn King, USOlympic Pentathlete.Be passionate about Accounting, have a vision of what you would like to achieve withit and act upon your passion and vision by working hard at the subject, and you willsucceed.GR SchreuderSenior Curriculum Planner: Accounting

Worksheet 1.1Baseline assessmentConcept Answer DefinitionAsset A Book of first entry where information isrecorded from the source document.Source document B Amount due to another person or businessAccounting C Someone to whom the business owesmoneyJournal D When income exceed expensesLedger E A business that renders a serviceLiability F Business owned by one personDebtor G The evidence of a transactionProfit H A business that buys and sellsmerchandise for profitCreditor I Amounts that generate money for thebusiness e.g. salesOwners’ Equity J Event between two or more partiesTrading concern K Possessions of the businessService undertaking L A collection of accounts of a businessTransaction M Someone who owes the business moneySole trader N The interest of the owner in the businessIncome O Recording, reporting and interpretation ofinformation of a businessExpenses P Amounts directly or indirectly involvedin operating the business, e.g. telephone,stationeryAccounting: Preparation for Grade 10 – Workbook 1

Worksheet 2.1Source documentsRECEIPT001. . . . . . . . . . . . . . . . . . . .20. . . . . . .Received from . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .the sum of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .For . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . .for Thembi StoresSTANDARD BANKCREDIT:CHEQUE ACCOUNT DEPOSIT5 0059 (V.2) Address:____________/_____/20Teller’s datestamp andsignatureDrawer’s name1.2.4.Please ensure that your account number iscorrectly filled in as Standard Bank Ltd. cannotbe held responsible for errors resulting fromin-correct information furnished. Cheques etc.handed in for collection will be available ascash after payment. While acting in good faithand exercising reasonable care, Standard BankLtd. will not accept responsibility for ensuringthe depositors / account holders lawful title tocheques etc. collected.NoteNikkelBronzesPostal ordersTotal cashBranch clearing numberAccount numberFor Bank use onlyEffects not clearedTotalPaid in byAccounting: Preparation for Grade 10 – Workbook

________________20____TO ___________________Standard BankParow Branch32-87-41-64Date ____________________20__________________________Pay ____________________________________________________or BearerFOR ________________________________________R001R________________________________________________________________________________________________________001 3456789012___________________THEMBI STORESWhy do you think it’s important for Thembi to complete documents accurately and timeously?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .What safety precautions should be considered when issuing cheques?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Accounting: Preparation for Grade 10 – Workbook

Worksheet 2.2Cost of sales calculationsCalculationAnswer12345678910Accounting: Preparation for Grade 10 – Workbook

Worksheet 2.3Cash Receipts Journal of Thembi Stores – March 2006Doc D Details Fol Analysis ofreceiptsBank Sales Cost of sales Sundry AccountsAmount Fol DetailsAccounting: Preparation for Grade 10 – Workbook

Cash Payments Journal of Thembi Stores – March 2006Doc D Details Fol Bank Trading Stock Wages Sundry AccountsAmount Fol DetailsAccounting: Preparation for Grade 10 – Workbook

Worksheet 2.3BDate Account debited Account credited Amount A = O + LAccounting: Preparation for Grade 10 – Workbook

Worksheet 2.4Dr. General Ledger Of Galaxy Traders Cr.Balance Sheet Accounts SectionCapitalDate Details F Amount Date Details F AmountB1DrawingsDate Details F Amount Date Details F AmountB2VehiclesDate Details F Amount Date Details F AmountB3Accounting: Preparation for Grade 10 – Workbook

Trading StockDate Details F Amount Date Details F AmountB4BankDate Details F Amount Date Details F AmountB5Nominal Accounts SectionSalesDate Details F Amount Date Details F AmountN1Accounting: Preparation for Grade 10 – Workbook

Cost of salesDate Details F Amount Date Details F AmountN2Rent IncomeDate Details F Amount Date Details F AmountN3WagesDate Details F Amount Date Details F AmountN410 Accounting: Preparation for Grade 10 – Workbook

StationeryDate Details F Amount Date Details F AmountN5ElectricityDate Details F Amount Date Details F AmountN6SalariesDate Details F Amount Date Details F AmountN7Accounting: Preparation for Grade 10 – Workbook 11

Worksheet 2.5Mandoza Music StoresTrial Balance on 31 May 2006 Fol. Debit CreditBalance sheet sectionNominal accounts section12 Accounting: Preparation for Grade 10 – Workbook

Worksheet 3.1No. 455INVOICE24 School StreetCravenby7493Date:To: __________________________________________________________________________________________________________________________Bought from:QUANTITY DESCRIPTION PRICE AMOUNTE. & O.E.Accounting: Preparation for Grade 10 – Workbook 13

Worksheet 3.2Debtors’ Journal of Khan Traders – March 2006 DJ1Doc D Details Fol Sales Cost of SalesCash Receipts Journal of CA Traders – March 2006 CRJ1Doc D Details Fol Analysisof receiptsBank DebtorscontrolSales Cost ofsalesSundry accountsAmount Fol Details14 Accounting: Preparation for Grade 10 – Workbook

Dr. General Ledger of Khan Traders Cr.Balance Sheet Accounts SectionTrading StockDate Details F Amount Date Details F AmountB4Debtors ControlDate Details F Amount Date Details F AmountB5Nominal Accounts SectionSalesDate Details F Amount Date Details F AmountN1Accounting: Preparation for Grade 10 – Workbook 15

Cost of salesDate Details F Amount Date Details F AmountN2Debtors Ledger of Khan TradersO DankbaarDate Details Fol Debit Credit BalanceD1J KeithDate Details Fol Debit Credit BalanceD216 Accounting: Preparation for Grade 10 – Workbook

Worksheet 3.3Creditors’ Journal of Gordon Wholesalers – September 2006 CJ1Doc D Details Fol Creditors’controlTradingstockConsumablestoresPackingmaterialSundry accountsAmount Fol. DetailsAccounting: Preparation for Grade 10 – Workbook 17

Cash Payments Journal of Gordon Wholesalers – September 2006 CPJ1Doc D Details Fol Bank TradingstockConsumablestoresCreditorscontrolSundry accountsAmount Fol. Details18 Accounting: Preparation for Grade 10 – Workbook

Dr. General Ledger of Gordon Wholesalers Cr.Balance Sheet Accounts SectionTrading stockDate Details F Amount Date Details F AmountB4Creditors controlDate Details F Amount Date Details F AmountB5Nominal Accounts SectionConsumable storesDate Details F Amount Date Details F AmountN6Accounting: Preparation for Grade 10 – Workbook 19

Creditors Ledger of Gordon WholesalersO’ Connor Wholesalers C1Date Details Fol Debit Credit BalanceSlinger TradersDate Details Fol Debit Credit BalanceD220 Accounting: Preparation for Grade 10 – Workbook

Worksheet 3.4Cash Receipts Journal of Funky Stores – November 2006 CRJ1Doc D Details Fol Analysis ofreceiptsBank DebtorsControlSales Cost ofsalesSundry AccountsAmount Fol DetailsAccounting: Preparation for Grade 10 – Workbook1

Cash Payments Journal of Funky Stores – November 2006 CPJ1Doc D Details Fol Bank TradingstockWages CreditorscontrolSundry accountsAmount Fol. Details22 Accounting: Preparation for Grade 10 – Workbook

Debtors’ Journal of Funky Stores – November 2006 DJ1Doc D Details Fol Sales Cost of salesCreditors’ Journal of Funky Stores – November 2006 CJ1Doc D Details Fol CreditorscontrolTradingstockStationery PackingmaterialSundry accountsAmount Fol. DetailsAccounting: Preparation for Grade 10 – Workbook

Worksheet 3.5D Source document Account debited Account credited A O L24 Accounting: Preparation for Grade 10 – Workbook

Worksheet 3.6Dr. General Ledger of Mudpie Traders Cr.Balance Sheet Accounts SectionTrading stockDate Details F Amount Date Details F AmountB4Debtors controlDate Details F Amount Date Details F AmountB5Creditors’ ControlDate Details F Amount Date Details F AmountB5Accounting: Preparation for Grade 10 – Workbook

Nominal Accounts SectionStationeryDate Details F Amount Date Details F AmountN5Worksheet 3.71234567891026 Accounting: Preparation for Grade 10 – Workbook

Worksheet 3.8A B C D12345678910111213141516Accounting: Preparation for Grade 10 – Workbook

Worksheet 3.9Column AColumn B1.11.21.31.41.51.61.71.81.91.1028 Accounting: Preparation for Grade 10 – Workbook

2.No. Account debited Account credited Amount A = O + LAccounting: Preparation for Grade 10 – Workbook

3.4.30 Accounting: Preparation for Grade 10 – Workbook

Worksheet 4.1C Fernandez trading as Fernandez TradersINCOME STATEMENT FOR THE YEAR ENDED 28 February 2006NotesRSalesCost of salesGross profitOther operating incomeRent incomeGross operating incomeOperating expensesNet profit (loss) for the year / period 7Accounting: Preparation for Grade 10 – Workbook1

C Fernandez trading as Fernandez TradersBALANCE SHEET AT 28 February 2006NotesRASSETSNON-CURRENT ASSETSFixed assets / Tangible assets3Financial assetsCURRENT ASSETSInventoriesTrade and other receivables (debtors)Cash and cash equivalents456TOTAL ASSETSEQUITY AND LIABILITIESOwner’s equity7Non-current liabilitiesCurrent liabilitiesTrade and other payables (creditors)8TOTAL EQUITY AND LIABILITIES32 Accounting: Preparation for Grade 10 – Workbook

NOTES TO THE FINANCIAL STATEMENTS3. Fixed assets / Tangible assets Land andBuildings Vehicles Equipment TotalCarrying value end of previous year **CostMovementAdditions at costCarrying value end of current yearCost4. InventoriesTrading stock5. Trade and other receivables (debtors)Trade debtors6. Cash and cash equivalentsBankCash floatPetty cash7. Owner’s equityBalance on last day of previous yearNet profit (loss) for the year/periodAdditional capital contributedDrawingsBalance on the last day of the current year8. Trade and other payables (creditors)Trade creditorsAccounting: Preparation for Grade 10 – Workbook

Worksheet 4.2CalculationAnswer1.2.3.4.5.6.7.34 Accounting: Preparation for Grade 10 – Workbook

Worksheet 4.3Laura Filander trading as Filander StoresINCOME STATEMENT FOR THE YEAR ENDED 31 May 2006SalesCost of sales (1)NotesR600 000Gross profitOther operating incomeRent income (2)Gross operating incomeOperating expensesSalaries (3)WagesStationeryWater and electricityAdvertising (4)48 0001 8507 250TelephonePacking material6 3502 440Net profit (loss) for the year / periodAccounting: Preparation for Grade 10 – Workbook

Laura Filander trading as Filander StoresBALANCE SHEET AT 28 February 2006ASSETSNON-CURRENT ASSETSFixed assets / Tangible assets (5)NotesRCURRENT ASSETSInventoriesTrade and other receivables (debtors)Cash and cash equivalents (6)TOTAL ASSETSEQUITY AND LIABILITIESOwner’s equityNon-current liabilitiesCurrent liabilitiesTrade and other payables (creditors)TOTAL EQUITY AND LIABILITIESOwner’s EquityBalance on last day of previous year 812 290Net profit (loss) for the year/periodAdditional capital contributedDrawingsBalance on the last day of the current year36 Accounting: Preparation for Grade 10 – Workbook

Worksheet 4.4T Golasi trading as Golasi SportINCOME STATEMENT FOR THE YEAR ENDED ………………………………NotesRNet profit (loss) for the year / period 7Accounting: Preparation for Grade 10 – Workbook

NOTES TO THE FINANCIAL STATEMENTS3. Fixed assets / Tangible assets Land andBuildings Vehicles Equipment TotalCarrying value end of previous year **MovementCarrying value end of current year4. Inventories5. Trade and other receivables (debtors)6. Cash and cash equivalents7. Owner’s equityBalance on last day of previous yearBalance on the last day of the current year8. Trade and other payables (creditors)Accounting: Preparation for Grade 10 – Workbook

40 Accounting: Preparation for Grade 10 – Workbook