Study & Master

Support Pack 1 | Grade 10

CAPS

Accounting
Revision and practice questions

This revision pack for Accounting Grade 10 provides support for

learners revising the most important concepts and principles covered
in the CAPS curriculum. This pack also offers ample opportunity for
learners to consolidate their knowledge by completing revision exercises,
exemplar tests and exam-type questions.
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 Revision activites

Basic introductory activities

Activity 1.1
Required
Copy the table into your workbook. Use a tick () to indicate where each item on the list
below should appear.
Assets Owner's Equity Liabilities
Fixed Current

Items
1. Delivery bicycle
2. Money in the bank
3. Telephone account
4. Donation received from the local government
5. Photocopier paper
6. Loan from FNB
7. Sales of T-shirts
8. Repairs to the vehicle
9. Interest paid on the short-term loan from FNB
10. Creditors
11. School fees of the owner’s son
12. Bank overdraft
13. Farming equipment
14. The office building
15. Cash in petty cash
16. Money received from a hairdresser for services rendered
17. Insurance premium paid to Santam
18. Advertisement in the newspaper
19. Tea and coffee for the office staff
20. Spare parts for the truck

Activity 1.2
Required
Show the effect of each transaction on the accounting equation.
In each case provide the amount, effect and reason.

Example: Bought a new cash register and paid by cheque, R6 000.

Assets Owner’s Equity
Effect Reason Effect Reason
+R6 000 Equipment increases
–R6 000 Bank decreases

Transactions
1. Paid the telephone account by debit card at Pick n Pay, R450.
2. Received R3 000 for services rendered.
3. Paid Eskom by cheque for electricity, R2 350.
4. Bought packing material from Makro, R400, and paid by cheque.
5. Bought pens and pencils for the office at Waltons, and paid cash, R220.
6. Paid the weekly wages directly into the bank accounts of the workers, R4 000.

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7. Bought a new computer for the office and paid by cheque, R8 000.
8. Paid the owner’s TV licence by cheque, R280.
9. Cash register roll for services rendered for the day, R5 500.
10. Received R2 200 from the tenants renting the office.

Activity 1.3
Copy and complete the table by calculating the cost of sales (cost price) or the selling
price (sales).
No. Selling price Profit % Calculation Cost price
100
Example 1 280 40% 280 × (to find cost price) 200
140

150
Example 2 1 350 50% 900 × (to find selling price) 900
100

1. 750 50%
2. 240 20%
3. 25% 200
4. 390 30%
5. 728 40%
6. 100% 150
7. 200% 390
1
8. 160 33 %
3

2
9. 66 % 360
3

Activity 1.4
Required
Show the effect that each transaction has on Assets and/or Owner’s Equity. In each case, give
the amount, effect and reason. Also show the General Ledger accounts to be debited and
credited.

Transactions
1. Bought stock to the value of R2 400 and issued a cheque.
2. Received goods for R1 450 and issued a cheque.
Assets Owner's Equity
No.
Effect Reason Effect Reason
1.
2.

General Ledger
No.
Account debited Account credited
1.
2.

Activity 1.5
Required
Copy the tables below. Show the effect that each transaction has on Assets and/or Owner’s
Equity. In each case, give the amount, effect and reason. Also show the General Ledger
accounts to be debited and credited.

Transactions
1. Sold trading stock for R230 cash (cost price R100).
2. Issued a cash register slip for the sale of goods to the value of R368.

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The business maintains a profit margin of 60% on cost price.
Assets Owner's Equity
No.
Effect Reason Effect Reason
1.
2.

General Ledger
No.
Account debited Account credited
1.
2.

Activity 1.6
Required
Use the transactions of Nawawi Stores, owner N Nawawi, to draw up the CRJ and CPJ of the
business for August 2019. Close off the journals properly at the end of the month.
Provide for the following columns:
CRJ: Analysis of Receipts, Bank, Sales, Cost of Sales, Sundry accounts
CPJ: Bank, Wages, Equipment, Trading stock, Sundry accounts

Transactions for August 2019

01 The owner contributed R45 000 to the business as capital. He deposited this in the
business’s bank account. Receipt no. 01 was issued to him.
03 Issued cheque no. 001 to the municipality to pay for the trading licence, R250.
04 Issued a cheque to Swazi Suppliers for the purchase of stock, R4 800.
07 Cash sales of stock, R750 (cost price R500)
09 Issued a cheque to PNA for the purchase of stationery, R360.
11 Received goods from Lee Suppliers and issued a cheque to them for R6 300.
13 The owner took a cash cheque for own use, R300.
Paid the weekly wages by cheque, R1 800.
16 Cash received for goods sold, R960 (cost price R640).
Issued a cheque to Office Suppliers for the purchase of a computer, R5 000.
19 Drew a cash cheque to pay the weekly wages, R1 800.
Issued a cheque to the municipality for R860. It was in payment of the business’s water
and electricity account, R610, as well as the owner’s personal account.
23 Cash sales of stock according to the cash register roll, R825 (cost price R530).
Issued a cheque to ABC Stores for goods bought from them, R570.
30 Drew a cheque for the weekly wages, R1 800, and for petty cash, R300.
Cash received for the sale of goods, R975 (cost price R650).
Issued a receipt to the owner for R5 000. This was for an increase of his capital.

Activity 1.7
Use the CRJ and CPJ already drawn up for Activity 1.7 and post them to the General Ledger of
Nawawi Stores for August 2019. Provide for the following accounts:
Capital (4 lines) Drawings (4 lines)
Equipment (2 lines) Trading stock (5 lines)
Bank (5 lines) Petty cash (2 lines)
Sales (2 lines) Cost of sales (2 lines)
Wages (2 lines) Trading licence (2 lines)
Stationery (2 lines) Water and electricity (2 lines)

Balance the accounts properly at the end of August.

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Activity 1.8
Required
Use the information of Alva Traders to do the following:
1. Open the accounts in the General Ledger with given balances.
2. Complete the CRJ and CPJ for March 2019.
Provide the following columns in the cash journals:
– CRJ: Analysis of receipts, Bank, Sales, Cost of sales, Sundry accounts
– CPJ: Bank, Stationery, Wages, Trading stock, Sundry accounts
3. Post the completed CRJ and CPJ to the accounts in the General Ledger.
4. Properly balance the accounts at the end of March.

Information
Trial Balance of Alva Traders on 28 February 2019
Balance Sheet accounts Fol. Debit Credit Lines
Capital B1 20 000 4
Drawings B2 200 4
Equipment B3 2 810 4
Trading stock B4 6 760 5
Bank B5 7 092 5
Petty cash B6 100 5
Nominal accounts
Sales N1 5 000 4
Cost of sales N2 2 780 4
Rent expense N3 870 4
Trading licence N4 130 4
Advertising N5 180 5
Packing material N6 160 5
Water and electricity N7 78 2
Salaries N8 1 360 4
Wages N9 3 000 4
Stationery N10 260 4
Rent income N11 780 4
25 780 25 780

Transactions for March 2019

01 A Valentine, the owner of Alva Traders, increased his capital contribution by R25 000.
Receipt no. 12 was issued. The money was deposited directly in the current bank account
of the business.
02 Issued the following cheques:
to Brink & Co. for the rent of the building, R1 360
to the municipality for the trading licence, R150
to Laurentia Furnishers for equipment, R7 500
for petty cash, R80
04 Bought stock from Mellville Suppliers and paid by cheque (no. 014), R6 400.
06 Bought stationery from Sampie & Co. for R480 and paid by cheque.
07 Drew R1 125 cash by cheque to pay the weekly wages.
09 Paid Paarl Post by cheque for advertisements, R120.
12 Cash sales of stock according to the cash register roll, R316 (cost price R230).
14 Paid the weekly wages by cheque, R1 125.
18 Bought packing material from Plastika Ltd for R224 and paid by cheque.
21 Cash sales of goods, R834 (cost price R620).
28 Cash sales of trading stock, R720 (cost price R550).
28 Issued a cheque to pay the weekly wages, R1 000, as well as for petty cash, R125.

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29 Paid Waal & Son by cheque for the following: Packing material, R184, and advertising
posters, R210.
Bought stock from Nelson & Co. for R1 770 and paid by cheque.
30 Cash sales of goods, R465 (cost price R340).
Sublet a part of the building to R Roos, R1 000.
31 Paid the salary of the secretary, A Johns, by cheque, R1 480.
The owner withdrew a cash cheque for personal use, R500.

Activity 1.9
Use the General Ledger of Alva Traders (Activity 1.9) and prepare the Trial Balance on
31 March 2019.

Exam-type question
Activity 1.10
Required
Use the given (independent) transactions and complete the columns below.
General Ledger Assets Owner's Equity
No.
Accounted debited Account credited Effect Effect

Transactions
1. Bought stock from Lerm Wholesalers and paid by cheque, R3 120.
2. Sold stock, cost price R320, for cash, R480.
3. Drew a cash cheque for petty cash, R150.
4. Received R900 from the tenant who rents a building from the business.
5. The owner drew a cheque for R550 for own use.
6. The owner deposited additional capital, R3 000.
7. Bought stationery from Trio Printers by cheque, R116.
8. Drew a cash cheque to pay the wages, R410.
9. Sent a cheque to Telkom in payment of the telephone account, R155.
10. Received a service invoice for repairs from Presto and paid by cheque, R230.
11. Bought a computer for office use and paid by cheque, R4 800.
12. Issued a cheque for R2 300 for the purchase of trading stock of R1 800, and the rest for the
purchase of packing material.
13. Issued a cheque to Waltons for R1 200. This was for the purchase of stationery for the
business’s use, R400, purchase of school books for the owner’s children, R350, and
stationery for resale, R450.
14. Issued a cheque to Ster Motors for R16 000 for the purchase of a second-hand vehicle for
R15 000, as well as repairs to the windscreen.

Test yourself 1.1

Time: 90 minutes Marks: 130

Required
1. Open the ledger accounts with the balances given (number of lines shown in brackets).
2. Complete the CRJ and CPJ for May 2019:
– CRJ: Analysis of receipts, Bank, Sales, Cost of sales, Sundry accounts  [16]
– CPJ: Bank, Trading stock, Stationery, Packing material, Equipment, Sundry
accounts  [31]
3. Post the CRJ and CPJ to the General Ledger and balance the accounts properly.  [58]
4. Draw up the Trial Balance on 31 May 2019.  [19]
5. Calculate the percentage profit mark-up that Manzo Stationers adds to the cost price
of their stock to calculate the selling price.  [6]

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Information
On 30 April 2019 the following balances appeared in the ledger of Manzo Stationers:
Capital R19 000 (4) Sales R15 000 (4)
Drawings 400 (4) Cost of sales 10 000 (4)
Land and buildings 12 000 (2) Wages 1 400 (4)
Equipment 3 710 (4) Packing material 390 (4)
Trading stock 4 280 (6) Telephone 216 (4)
Bank 1 029 (6) Stationery 182 (4)
Petty cash 150 (4) Repairs 243 (4)
Insurance – (2)
Advertising – (2)
Postage – (2)
Salaries – (2)
Rent income – (2)

Transactions for May 2019

Duplicates of receipts issued
May
05 no. 401 to H Hansen for rent received, R150
19 no. 402 to J Manzo for additional capital, R3 000

Cash sales of goods according to Duplicates of

the cash register roll bank deposit slips
May May
03 R705 cost price R470 03 R705
05 R894 cost price R596 05 R1 044
12 R972 cost price R648 12 R972
19 R933 cost price R622 19 R3 933
28 R1 056 cost price R704 28 R1 056

Cheque counterfoils
May
02 no. 301 to Typek Suppliers for R476
stationery for resale, R374
stationery for office use, R102
05 no. 302 to Highveld Brokers for insurance premium, R107
07 no. 303 to Longman CC for stock, R514 advertisements, R45
10 no. 304 to Klix Products for packing material, R83
11 no. 305 to Vaal Services for repairs, R61
12 no. 306 cash for extra cash float, R50
14 no. 307 to Typek Suppliers for R779: equipment, R377 and stock, R402
15 no. 308 cash for postage, R20
18 no. 309 to Longman CC for goods, R616
19 no. 310 to Klix Products for packing material, R117, and stationery for sales, R91
21 no. 311 to H Hartman, R400 for salary
24 no. 312 cash for the owner for private use, R100
28 no. 313 to Telkom for the telephone, R41
30 no. 314 cash for wages, R310

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Test yourself 1.2
Time: 45 minutes Marks: 70

Required
1. Open the accounts in the General Ledger of Protem Traders. Leave 5 lines each for Trading
Stock and Bank, 2 lines each for Advertising, Insurance and Petty Cash, and 4 lines for each
of the other accounts.
2. Post the given journals to the General Ledger and balance the accounts at the end
of the month.  [53]
3. Prepare the Trial Balance on 31 August 2015.  [17]

Information
F Frans started a business called Protem Traders on 1 July 2015. At the end of July the
following balances appeared in the books of the business:
Capital R15 000 Drawings R800
Equipment R4 360 Trading stock R1 830
Cash float R100 Bank R5 930
Rent expense R1 000 Sales R9 380
Wages R2 000 Cost of sales R7 785
Rent income R1 000 Stationery R425
Insurance R180 Telephone R210
Water and electricity R270 Consumables R340
Advertising R150

The journals for August 2015 have already been completed. The following totals and
information appeared in the CRJ and CPJ:
CRJ2: Analysis of receipts R7 200
Bank R7 200
Sales R5 200
Cost of sales R3 900
Sundry accounts R2 000

The total of the Sundry column consists of rent income of R1 000 on 5 August and an increase
in capital by the owner of R1 000 on 25 August.
CPJ2: Bank R3 472
Trading stock R2 216
Wages R320
Consumables R219
Sundry accounts R717

The total of the Sundry column consists of rent expense of R200 on 5 August, purchase of
stationery worth R83 on 10 August, drawings of R120 by the owner on the 15th, purchases of
new equipment worth R240 on the 21st, as well as payment of the telephone account of R32
on the 25th and water and electricity of R42 on 31 August.