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Summary FRK111 Chapter 4
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FRK111 chapter 4 Notes
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FRKCHAPTER 4: RECORDING PROCESS
Example 4.1:
B. Denty had the following transactions during January 20.5:
6. Dental supplies delivered and installed equipment to the value of R16 000 on credit.
10. Paid R300 cash for stationary.
Acc debited Acc Credited Assets Equity Liability
Equipment Creditor R16 000 R16 000
Acc debited Acc credited Assets Equity Liability
Stationary Bank -R300 R300
Stationary can go into:
STATIONARY (EQUITY – expense) = CREDITED
or STATIONARY ON HAND (ASSET) = DEBITED.
End of year move all stationary expense to stationary on hand , difference between
amounts come into “on hand”
SELLING PRICE = COST + PROFIT
Cost sluit transport, installation ens tot dit verkoop word in
GP mark up (on cost) GP mark up (on SP)
C -> 100% = R208.33 C -> 80% = R200
P -> 20% = R41.67 P -> 20% = R50
SP -> 120% = R250 SP -> 100% = R250
,INFO NEDED FOR SOURCE DOCUMENT:
- Date
- Names of parties
- Amount/value
- Type of source document
- Number of documents
Credit Invoice:
You have original= you bought on credit
You have duplicate= you sold on credit
CREDIT NOTE: (Debit note NOT valid)
you have original = you returned
you have duplicate = you received return
RECEIPT:
You have original = you bought
You have duplicate = you sold
Debtor pays -> receipt
Example: recording a sales transaction:
Receive R4 500 (cost: R3 750) for cash sales.
Acc DEBITED Acc Assets Equity Liability
CREDITED
bank Sales + R4 500 + R4 500
Cost of sales Inventory -R3 750 -R3 750
Example: PETTY CASH PETTY CASH= ASSET
Bought R250 worth of cleaning material with petty cash.
Acc DEBITED Acc CREDITED Assets Equity Liability
Cleaning Petty Cash -R250 -R250
material
, Example: The debtor returns the goods previously bought for R2 800
(cost R1 500)
Acc DEBITED Acc Assets Equity Liability
CREDITED
Sales return Debtor -2800 -2800
/Debtor
allowance
Inventory Cost of Sale + R1 500 + R 1 500
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