Financial Literacy

Workbook

2023
Term 4

Grade 9F

Name of learner: ___________________________

Class: ___________
Welcome back as the Accountant for Olympia Sport and Trade.

Hello Accountant!

My name is Olympia Winnings and I am the

owner of Olympia Sport and Trade. I am so
glad that you are going to assist me again
with my bookkeeping.

Thank you for assisting me with your

Accounting skills.
 Term 4
Topic: Accounting Equation: Credit and cash transactions
Ms. Olympia Winnings regularly buys and sells on credit and with cash for Olympia
Sport and Trade.

Activity 1: Effect of credit and cash purchases on the Accounting Equation

Date: _________________

1. Bought sport gear on credit from Sporty Space for R5200.

2. Bought stock from Activity Sports Academy for R1 200 and pay per cheque.
3. Received an invoice from Planet Fitness for equipment purchased, R12 000.
4. Received R1 500 for the Ms. Olympia Winnings as her capital contribution.
5. Pay the water and electricity, R500 cash.
6. Sell goods on credit to The Sport Guy, R 3 500.

Effect of credit purchases on the accounting equation:

+ Dr ASSETS - Cr -Dr OWNERS EQUITY +Cr -Dr LIABILITIES +Cr

Day Effect Reason Effect Reason Effect Reason

1

6
 Activity 2: Effect of credit and cash purchases on the Accounting Equation

Date: ______________

Show the effect of the following transactions on the Accounting Equation.

1. Bought equipment on credit from Emmie Suppliers for R5 200.

2. Bought a vehicle from JJ Motor Dealers for R120 000. Completed an EFT
payment.
3. Receive a receipt from CNA for stationary bought, R1040.
4. The packaging material arrived from Friendly Supplies. The invoice shows an
amount for R4 500.
5. Cash a cheque worth R 2 000 to pay for the weekly wages.

Effect on the accounting equation:

+ Dr ASSETS - Cr -Dr OWNERS EQUITY +Cr -Dr LIABILITIES +Cr

Day Effect Reason Effect Reason Effect Reason
1

5
 Activity 3: Effect of credit and cash purchases on the Accounting Equation

Date: ______________

Show the effect of the following transactions of Olympia Sport and Trade on the
Accounting Equation.

4 Bought goods on from Gauteng Stores for R6 400. Paid cash.

8. Purchased the following on credit from RSA Traders and received their invoice:
• Computer and printer, R12 800
• Paper for the printer, R480

14. Received R1 280 for sales of the day. (CP = R1 000)

25. Sold stock on credit to Naledi Stores for R4 200 and issued an invoice 203.

Transaction General ledger Accounting Equation

Nr Source Journal Account Account A OE L

document Debited Credited
4

14

25

#1
Activity 4: Cash and credit transactions Date: _____________

Month: August 2020

Complete the outstanding entries in the different journals. Close off the
journals at the end of the month.

Balances in the General ledger on 1 August 2020:

Capital, R602 000; Drawings, R6 400; Land and buildings, R280 000; Equipment,
R78 000; Vehicles, R192 000; Trading stock, R38 600; Bank, R43 200; Cash float,
R500; Debtors control, R6 400; Creditors control, R23 800; Sales, R72 400; Cost of
sales, R36 200; R2 800; Rent income, R10 000; Wages, R6 800; Stationery, R3 400;
Insurance, R4 200; Water and electricity, R5 300; Telephone, R2 800 and Packing
material, R1 600.

Debtors’ list on 1 August 2020 Creditors’ list on 1 August 2020

G. Naude, R2 800 Petunia Stores, R8 300
R. Fish, R1 400 KG Traders, R6 400
M. Ndaka, R2 200 Dumela Distributors, R9 100

Transactions still need to be recorded:

20. Buy a computer and printer from Remo Traders for R15 800 and pay with
cheque 96.
22. Receive R1 000 from R. Fish as partial payment on his account. Issue receipt
47.
Cash sales according to cash register roll 30, R28 600.
23. Sell goods on credit to G. Naude for R1 480. Issue invoice 27.
24. Issue cheque 97 to KG Traders for R4 800 as partial payment on their
account.
28. Buy goods on credit from KG Traders for R6 400 minus 10% trade discount.
Renumber invoice to 31.

Note: Calculate the mark-up

 Debtors Journal of Olympia Sport and Trade for August 2020 DJ 8
Doc
No Day Debtors Fol Sales Cost of sales
24 3 R. Fish 1 800 - 900 -
25 11 G. Naude 2 400 - 1 200 -
26 17 M. Ndaka 3 800 - 1 900 -

B9/N1 B6/N2

Cash Receipts Journal of Olympia Sport and Trade for August 2020 CRJ 8
Da Analysis Cost of Debtors Sundry account
Doc No y Details Fol of receipts Bank Sales sales control Amount Fol Details
-
R43 1 Mark Verster 8 000 - 8 000 B1 Capital
R44 8 G. Naude 2 800 - 2 800 -
CRR28 Sales 18 400 - 21 200 - 18 400 - 9 200 -
-
R45 14 M. Naledi 5 000 - 5 000 N4 Rent income
CRR29 Sales 24 200 - 29 200 - 24 200 - 12 100 -
R46 18 M. Ndaka 1 400 - 1 400 - 1 400 -

B8 N1 B6/N2 B9
Cash Payments Journal of Olympia Sport and Trade for August 2020 CPJ 8
Doc Trading Creditors Sundry accounts
no Day Name of payee Fol Bank inventory Wages control Amount Fol Details
88 2 Dumela Distributors 6 900 - 6 900 -
89 4 King Traders 3 800 - 3 800 -
90 6 SN Insurers 960 - 960 - N6 Insurance
91 9 Sony Motors 4 100 - 4 100 - B2 Drawings
92 13 Cash 1 900 - 1 700 - 200 - B9 Cash float
93 14 Telkom 2 100 - 2 100 - N8 Telephone
94 16 Petunia Stores 5 400 - 5 400 -
95 18 SN Stationers 340 - 340 - N5 Stationery

B8 B6 N4 B10

Creditors Journal of Olympia Sport and Trade for August 2020 CJ 8

Doc Creditors Trading Sundry accounts

No Day Creditors Fol control inventory Stationery Amount Fol Details
28 6 KG Traders 10 800 - 10 800 -
29 11 Dumela Distributors 11 400 - 11 400 - B4 Equipment
30 14 Petunia Stores 3 200 - 1 800 - 1 400 - N9 Packing material

B10 B6 N5
2. Some of the Ledger accounts are already completed. Complete the rest of
the General ledger accounts. Balance the accounts at the end of the month.

Balances in the General ledger on 1 August 2020:

Capital, R602 000; Drawings, R6 400; Land and buildings, R280 000; Equipment,
R78 000; Vehicles, R192 000; Trading stock, R38 600; Bank, R43 200; Cash float,
R500; Debtors control, R6 400; Creditors control, R23 800; Sales, R72 400; Cost of
sales, R36 200; Debtors allowances, R2 800; Rent income, R10 000; Wages,
R6 800; Stationery, R3 400; Insurance, R4 200; Water and electricity, R5 300;
Telephone, R2 800 and Packing material, R1 600.

General Ledger of Olympia Sport and Trade

Balance Sheet accounts Section

Dr Capital B1 Cr

Dr Drawings B2 Cr
Mar 1 Balance b/d 6 400
9 Bank CPJ 4 100
10 500

Dr Land and Buildings B3 Cr

Mar 1 Balance b/d 280 000

Dr Equipment B4 Cr

Dr Vehicles B5 Cr
Mar 1 Balance b/d 192 000

Dr Trading stock B6 Cr
Dr Debtors control B7 Cr

Dr Bank B8 Cr

Dr Cash float B9 Cr
Mar 1 Balance b/d 500
13 Bank CPJ 200
700

Dr Creditors control B10 Cr

NOMINAL ACCOUNTS SECTION

Dr Sales N1 Cr

Dr Cost of sales N2 Cr
Dr Rent income N4 Cr
Mar 1 Balance b/d 10 000
14 Bank CRJ 5 000
15 000

Dr Wages N5 Cr
Mar 1 Balance b/d 6 800
31 Bank CPJ 1 700
8 500

Dr Stationery N6 Cr

Dr Insurance N7 Cr
Mar 1 Balance b/d 4 200
6 Bank CPJ 960
5 160

Dr Water and electricity N8 Cr

Mar 1 Balance b/d 5 300

Dr Packing material N10 Cr

Mar 1 Balance b/d 1 600
Creditors
14 CJ 1 400
control
3 000
3. Post the previous completed journals to the debtor R. Fish in the Debtors’
ledger and prepare a debtors’ list.

Debtors list on 1 August 2020 Creditors list on 1 August 2020

G Naude, R2 800 Petunia Stores, R8 300
R Fish, R1 400 KG Traders, R6 400
M Ndaka, R2 200 Dumela Distributors, R9 100

Debtors Ledger of Olympia Sport and Trade

Month Day Details Fol Debit Credit Balance

G. Naude D1
Aug 1 Account rendered 2 800 -
8 Receipt 44 CRJ 2 800 - -
11 Invoice 25 DJ 2 400 - 2 400 -
23 Invoice 27 DJ 1 480 - 3 880 -
R. Fish D2

M. Ndaka D3
Aug 1 Account rendered 2 200 -
17 Invoice 26 DJ 3 800 - 6 000 -
18 Receipt 46 CRJ 1 400 - 4 600 -

Debtors’ list
Debtor Fol Debit
G. Naude D1 3 880 -
R. Fish D2
M. Ndaka D3 4 600 -
4. Post the previous completed journals to the creditor KG Traders in the
Creditors’ ledger and prepare a creditors’ list.

Creditors’ Ledger of Olympia Sport and Trade

Month Day Details Fol Debit Credit Balance

Petunia Stores C1
Aug 1 Account rendered 8 300 -
14 Invoice 30 CJ 3 200 - 11 500 -
16 Cheque 94 CPJ 5 400 - 6 100 -
KG Traders C2

Dumela Distributors C3
Aug 1 Account rendered 9 100 -
2 Cheque 88 CPJ 6 900 - 2 200 -
11 Invoice 29 CJ 11 400 - 13 600 -

Creditors’ list
Creditor Fol Credit
Petunia Stores C1 6 100 -
KG Traders C2
Dumela Distributors C3 13 600 -

Thank you for assisting Ms. Olympia Winnings with her

bookkeeping. Your Accounting skills are impressive!