This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
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Step 1: Record transactions in the Cash Receipts Journal (CRJ). The Cash Receipts Journal records all cash inflows into the business. |l|l|l|r|r|r|l|l|r| Date & Doc No. & Details & Analysis of Receipts (R) & Bank (R) & Current Income (R) & Sundry Account (Details) & Sundry Account (Folio) & Sundry Account (Amount) (R) \\ Feb 1 & 01 & H Moolla (Capital) & 150\,000 & 150\,000 & & Capital & & 150\,000 \\ Feb 8 & CRR & Services Rendered & 4\,000 & 4\,000 & 4\,000 & & & \\ Feb 8 & CRR & D Steyn (Services) & 1\,200 & 1\,200 & 1\,200 & & & \\ Feb 14 & CRR & Services Rendered & 9\,000 & 9\,000 & 9\,000 & & & \\ Feb 14 & Receipt & H Moolla (Capital) & 50\,000 & 50\,000 & & Capital & & 50\,000 \\ Feb 21 & CRR & Services Rendered & 5\,500 & 5\,500 & 5\,500 & & & \\ Total & & & 219\,700 & 219\,700 & 19\,700 & & & 200\,000 \\ Step 2: Verify the balance of the Cash Receipts Journal. The total of the Bank column must equal the sum of the Current Income and Sundry Account (Amount) columns. Bank Total = Current Income Total + Sundry Account (Amount) Total \\ 219\,700 = 19\,700 + 200\,000 \\ 219\,700 = 219\,700 The CRJ balances. Step 3: Record transactions in the Cash Payments Journal (CPJ). The Cash Payments Journal records all cash outflows from the business. |l|l|l|r|r|r|r|l|l|r| Date & Doc No. & Details & Bank (R) & Stationery (R) & Materials (R) & Wages (R) & Sundry Account (Details) & Sundry Account (Folio) & Sundry Account (Amount) (R) \\ Feb 1 & EFT & Mr Hunter (Rent) & 15\,000 & & & & Rent Expense & & 15\,000 \\ Feb 1 & EFT & SAEequipment (Materials) & 12\,000 & & 12\,000 & & & & \\ Feb 11 & EFT & Gary's Stationers (Stat.) & 800 & 800 & & & & & \\ Feb 11 & EFT & B Els (Repairs) & 2\,000 & & & & Repairs Expense & & 2\,000 \\ Feb 11 & Debit Card & ES Hardware (Materials) & 9\,000 & & 9\,000 & & & & \\ Feb 15 & Cash & Wages & 15\,000 & & & 15\,000 & & & \\ Feb 21 & Credit Card & W Parnell (Materials) & 2\,000 & & 2\,000 & & & & \\ Feb 28 & EFT & J Strauss (Salary) & 16\,000 & & & & Salaries Expense & & 16\,000 \\ Feb 28 & EFT & Wages & 15\,000 & & & 15\,000 & & & \\ Total & & & 86\,800 & 800 & 23\,000 & 30\,000 & & & 33\,000 \\ Step 4: Verify the balance of the Cash Payments Journal. The total of the Bank column must equal the sum of the Stationery, Materials, Wages, and Sundry Account (Amount) columns. Bank Total = Stationery Total + Materials Total + Wages Total + Sundry Account (Amount) Total \\ 86\,800 = 800 + 23\,000 + 30\,000 + 33\,000 \\ 86\,800 = 86\,800 The CPJ balances. The completed Cash Receipts Journal and Cash Payments Journal are shown above, with all columns balanced. Journals completed and balanced. Send me the next one 📸