Accounting Cycle
Concepts test
CPJ
CRJ
EFT payments and receipts Exercises to try
Gr8_EMS_Test_2_Cash_Journal
Introduction to Accounting
Posting to the CPJ
Posting to the CRJ
Source Documents
Source Documents notes
Source documents poster Activity
Source document test
Step by step recording
Tets - Concept and accounting equation
The history of EFT payments
Theory [Accounting Cycle & Transactions]
Grade 8 - Accounting
Overview
A tool with additional resources for learners studying Accounting in Grade 8
Introduction
Hello Grade 8s
Welcome to our Accounting learning tool where you will find activities and additional resouces for you to refer to for a better understanding of the concepts and practical accoutning work.
Please watch my introductory video before using the platform.
The Accounting Cycle
This is an overview of the accouting cycle, once learners have learnt the steps the next lessons need to focus on each step and remind learners of the steps as we move onto the next.
As you have probably noticed by now, Accounting is a very systematic subject. Everything is done in a step-by-step manner. Therefore we have rules and processed that we follow so that we can double check that everything we do is done correctly, this can be double-checked and corrected as many times as is required.
The accouting cycle helps us ensure that we have followed each process.There are 7 steps of the accouting cycle and each step must be completed in the same order each time:
- Transaction
- Source documents
- Journals
- General Ledgers
- Trial Balance
- Fianancial Statements
- Anslysis and interpretaion of financial staements
The resources attached will provide a more detailed description of each step.
It is important to remember that in Grade 8 we are concerned with cash transactions- this means that money will either be received into the bank or money will leave the bank. There are NO credit transcations for Grade 8
Transactions and source documents
Emphasize that cheques are no longer used.
Source document test memo:
On 23 February 2022, Pumba Matata purchased stationery of R250 from Hakuna Stores. Receipt number 123 must be issued to him.
Complete the receipt below for Mr Pumba Matata:
RECEIPT
RECEIVED FROM: _____Pumba Matata__P_____ NO: ____123 P_____
DATE: ____23/02/2022 P___________________
THE SUM OF: _______Two Hundred and fifty rand Only__ P
CASH IN PAYMENT OF ____Stationery P_____________
FOR: ______Hakuna Stores P___________________________ |
Step 1 and 2 of the accounting cycle.
1. Transactions - the proceess or act of buying or selling something. The transfer of money from one persone to another for a good or service
2. Source documents - the proof that a transaction has taken place. Evidence that you have bought or sold.
Types of source doucments:
- Receipt
- Cash register roll/tape
- Bank Statement (EFT)
- Cash invoice
- Cash deposit slip
Refer to the resource provided in section 3.
Due to the advancement of technology, cheques have been discontinued. Electronic Funds Transfers have become a much easier, faster and accessible option to send and receive money. SOme videos and resources still have cheques as an example of source documents to show you what they looked like.
Find at least 5 examples of source documents to analyse and refer to the activity attached.
Cash Journals the CRJ and CPJ
Learners need quite a bit of time to grasp this concept, therefore many questions will be asked.
The first few activities will not be perfect therefor additional videos were uploaded. Allow learners three weeks or before expecting them to move on with the content.
In Grade 8 we learn two journals:
The CRJ and CPJ.
The Journals keep a record of the money coming into the business and the money leaving the business. The journal keeps a record of how much has come in or left the business, who we are paying or receiving money from and what did we pay or receice the money for, the day and source document number must also be recorded in the journals.
The Cash Receipts Journal (CRJ) is used to record the money coming into the business because the business has sold goods, provided a service or the owner has decided to increase the capital of the business. ALL MONEY COMING INTO THE BUSINESS. Money RECEIVED.
The Cash Payments Journal (CPJ) keeps a record of all the money leaving and being paid to other businesses or people. When the business has to pay employees, buy new equipment, trading stock, materials, stationery etc. ALL MONEY LEAVING THE BUSINESS. Money PAID.
The videos will show you how to post the transactions into the journals.
Posting to the CRJ and CPj respectively:
Provided in your resouce section are activites for you to try. Once you have matstered the CRJ and CPJ individually you will be able to complete activites that have a combination of CRJ and CPJ transactions, you will need to analyse transactions before posting to the correct journal. This will be explain in the next section.
Combined CRJ and CPJ transactions
As mentioned in the previous section, CPJ and CRJ exercises can also be mixed into one activity. Therefore you need to be able to tell the difference bewteen the two types of transactions and know the difference between the journals.
Here is a video to explain how you would do an activity
All answers must be posted for the instructor to mark and provide effective feedback.
All answers must be posted for the instructor to mark and provide effective feedback.
Complete the concepts test to test how well you know the theory of accounting, while completing the CPJ and CRJ activities. Click on the link once to answer and submit.