CAPS ACC 1 TERM 1 WEEK 8 – 10 Bookkeeping of a Sole Trader

TOPIC – Bookkeeping of a sole trader

Accounting cycle based on perpetual inventory system:
• revision of Grade 9 content
• source documents
• principles of Double Entry System
• journals
– Cash Receipts Journal
– Cash Payments Journal (including loans, fixed deposits, interest income and interest expense, dishonoured cheques, discount allowed and discount received)
– Debtors’ Journal, Creditors’ Journal, Debtors’ Allowances Journal, Creditors’ Allowances Journal
– Petty Cash Journal
– General Journal (including bad debts, cancellations of discount on dishonoured cheques, interest on overdue accounts, corrections of errors)
• Posting to General, Debtors’ and Creditors’ Ledgers
• Trial Balance
• Preparation of debtors’ and creditors’ lists to reconcile with the debtors’ and creditors’ control accounts (including correction of errors and omissions)
Note: The transactions on the acquisition of fixed assets and the fixed assets register for the purpose of internal control are important.

TOPIC – Accounting equation

Analysis and an indication of the effect of transactions on the accounting equation of a sole trader
All transactions affecting a sole trader up to financial statements
This topic needs to be integrated with all the appropriate topics throughout the year.