A complete summary of the content of Economic and Management Science Grade 9 [accounting which is therefore part 2], which meets the requirements as set out in the CAPS / CAPS curriculum. Colorful side notes have been added to enhance the learning experience.
Tangible / fixed assets Dr. Withdrawals Cr. NON CURRENT LIABILITIES
+ -
• Grounds and infrastructure (is paid back over 12 months)
/ property
• Mortgage loan
• Equipment
• Loans
• Vehicles
Dr. Capital Cr.
+ -
CURRENT LIABILITIES
Financial assets
(is paid back in less than 12
• Fixed deposit (longer than 12
Dr. Expenses Cr. months)
months)
+ -
• Trade creditors
u Cost of sales
• Bank Overdraft (Cr.)
u Interest expense
CURRENT ASSETS • Short term portion of
u Rental expense
Salaries and loans loan
Stocks u
u Stationery
• Trading stock u Fuel Important terminology:
u Packaging material
u Repair work Z Trading business > business that
Trade and other receivables u Insurance sells goods and services to make
u Advertisements a profit
• Debtors control u Discount granted Z Trading stock > (asset) goods
u Telephone bought with the intention of
Trade and other receivables
u Water and selling them at a profit
electricity Z Cost of sales > cost price of the
Cash and cash equivalents Dr. Income Cr. merchandise already sold (what
owner paid for the purchased
- +
• Bank (Dr.) goods)
• Petty cash u Sales
• Change u Current Income
• Fixed deposit (less than 12 u Interest income
u Rent income
months)
u uReceived discount
100
1.Cost price Selling price x
100+%
100+%
2. Sales price [cost price + profit margin] Cost price x
100
Selling price - Cost price 100
3. Profit margin x =%
Cost price 1
100+%
4.Sales Cost of sales x
100
100
6.Cost of sales Sales x
100+%
EXAMPLE OF CALCULATIONS
[GENERAL EQUATION > GENERAL LEDGER]
[effect on the accounting equation]
1. Office equipment purchased.
>Equipment (A)
>Bank (A) [we purchased the equipment in cash SO our bank becomes less
ACCOUNT Dr. ACCOUNT Cr. ASSETS EQUITY LIABILITIES
Equipment Bank
[ASSETS [ASSETS REDUCE +
0 0
INCREASE on the on the credit -
debit side] side]
2. Water bill paid.
> Water and electricity [Expense > EQUITY -] (E - ) DEBIT EXPENSES
>Bank (A) [pay the bill with cash]
ACCOUNT Dr. ACCOUNT Cr. ASSETS EQUITY LIABILITIES
Water and Bank
- - 0
electricity
3. Rental income obtained.
> Rental Income [Income > EQUITY +] (E + ) CREDIT INCOME
>Bank (A) [we OBTAIN> our bank INCREASES]
ACCOUNT Dr. ACCOUNT Cr. ASSETS EQUITY LIABILITIES
Bank Rent income
[ASSETS [EQUITY + + 0
INCREASE on the INCREASES on
debit side] the credit side]
4. Stationery purchased.
> Stationery = EQUITY (E -)
>Bank (A)
ACCOUNT Dr. ACCOUNT Cr. ASSETS EQUITY LIABILITIES
Stationary Bank - - 0
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller notedx19. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R130,00. You're not tied to anything after your purchase.
