NATIONAL CURRICULUM STATEMENT

ECONOMIC AND MANAGEMENT SCIENCES

LESSON PREPARATION
TERM 1

GRADE 9 SUBJECT EMS WEEK: 3 HOURS: 30 MINUTES PERIOD: 1

DATE STARTED: DATE COMPLETED:

TOPIC:
FINANCIAL LITERACY
CASH RECEIPTS JOURNAL AND CASH PAYMENTS JOURNAL – SOLE TRADER
LINKS WITH PREVIOUS LESSON: LINKS WITH NEXT LESSON(S):
 Activity 2: Calculate selling price, cost price and profit margin  Effect of cash transactions on accounting equation
CONTENT: KEY TERMS (VOCABULARY):
 Recording cash transactions in a CRJ and CPJ Service business, retail business, selling price, cost price,
profit margin, sales, cost of sales, trading stock
TEACHER ACTIVITIES LEARNER ACTIVITIES DURATION
BASELINE:
Q: Describe cost price, profit margin and selling price in your own
words.
A: Cost price = the original (purchase) price of the goods bought ; Profit  Learners answer questions
margin = the percentage profit added to the cost price ; Selling price = the post by the teacher.
Baseline: 5 min
price at which the goods are sold to customers after a profit percentage is  Learners ask clarifying
added. questions.
Q: Fill in the missing words: Cost price + ? = ?
A: Cost price + Profit margin = Selling price

Explain the following to the learners:  Learners take out their Lesson: 15 min
 In a trading business, the transactions are entered into the cash journals workbooks and write down
the same way as for a service business, except the following because notes given by the teacher.
goods are bought and sold.  Learners ask clarifying
 Let us look at the differences: questions.
  Trading stock – when goods are bought for cash, the transaction will be
recorded in the CPJ. An analysis column will be opened.
 Sales – income is received from sales (not current or fee income). There
will be a sales column in the CRJ.
 Cost of sales – is the cost price of trading stock that has been sold. In
other words, it is what the owner originally paid for the goods he has
sold. An analysis column will be opened in the CRJ for cost of sales.
This amount has no influence on the amount received for cash sales
and therefore has no influence on the bank amount.
 Work through the extra resource material to the record buying and selling
of goods in the CRJ and CPJ.
 Learners are allowed to start
 Give learners Activity 3 to start in class and complete as homework.
Activity 3 in class and complete Activity 3: 10 min
 Walk through the class and assist learners who struggle.
as homework.
TEACHING STRATEGY/ METHODOLOGY
 Lecture / Direct instruction
Discussion Visual/ Practical Demonstration 
Explanation  Simulation
Observation Use of technology and instructional resources 
Question and answer  Role playing
Other : Other:
ASSESSMENT
FORM TOOL METHOD
Data Response Poster Memorandum  Baseline 
Project Class work  Rubric with criteria Formal
Case Study Homework Checklist Informal 
Control Test Assignment Observation Sheet Educator 
Examinations Class Test Other: Self 
 Drama Other : Other :
RESOURCES: OHP/Whiteboard/ Chalkboard/Worksheets/Hand-outs, pencils, pens, Textbook(s), Charts, class notes.

TEACHER REFLECTION EXPANDED OPPORTUNITIES/ ENRICHMENT

 Assist learners who are struggling with the calculations.

Name of Teacher: HOD: _________________________________

Signature: ___ Signature: _____________________________

Date: Date: _________________________________

Resource material

Record the following transactions in the CRJ and CPJ of Thuto Traders for March 2016:

Transactions: March 2016

2. Bought goods from Sally Traders for R12 500 and pay with cheque 001.
5. Cash sales according to cash register roll, R4 500. The cost price of the goods was R3 000.

Possible answers:

Cash Payments Journal of Thuto Traders for March 2016 CPJ 1

Doc Day Name of payee Bank Trading Wages Sundry accounts
stock Amount Fol Details
001 2 Sally Traders 12 500 12 500
(1)

Note:
(1) An analysis column will be opened for trading stock purchased for cash.

Cash Receipts Journal of Thuto Traders for March 2016 CRJ 1

Doc Day Details Analysis of Bank Sales Cost of Sundry accounts
receipts sales Amount Fo Details
l
CR 5 Sales 4 500 4 500 4 500 3 000
R
(1) (2)

Note:
(1) Income received mainly from sales of goods. The selling price is received by the business
in cash. It is recorded in the analysis of receipts column then also in the sales column. The
amount received (selling price) will be deposited in the bank.
(2) When goods are sold, there are less trading stock. Somehow this must be recorded in the
trading stock account. Remember, trading stock is a record of all goods purchased at cost
price. This means that the cost price of the goods sold must also be recorded in the trading
stock. By adding a column for cost of sales (cost price of goods sold), this can be done.
Every time goods are sold for cash, the cost price of that sale is calculated and entered in
the cost of sales column.
Support Material
Activity 3:
Revision activity: record cash transactions in CRJ and CPJ
Question:

You are required to do the following in the books of SA Traders for June 2016:

1. Complete the Cash Receipts Journal (CRJ 1) for June 2016. Provide analysis columns for
analysis of receipts, bank, sales, cost of sales and sundry accounts. Close off the journal at
the end of the month.
2. Complete the Cash Payments Journal (CPJ 1) for June 2016. Provide analysis columns for
bank, trading stock, wages, stationery and sundry accounts. Close off the journal at the
end of the month.

Note: The business’s profit margin is 50% on cost price.

Transactions: June 2016

1. The owner, K Radebe, deposits R320 000 directly into the business current bank account
as his capital contribution. Issue receipt 001.
3. Purchase a business property from Bou Traders and pay by cheque 001, R180 000.
4. Pay the City Council by cheque 002 for the trading license, R1 800.
6. Purchase merchandise from Verster Traders for R8 400 and pay by cheque 003.
Issue cheque 004 to MX Computers for the following:
 Computer and printer, R12 800
 Paper for the printer, R640.
7. Cash a cash cheque 005 for the following:
 Wages, R1 460
 Cash float, R500.
8. Cash sales according to cash register roll, R18 600.
10. It was decided to advertise in the local newspaper. Issue cheque 006 for R2 300 to the
Oggendblad for advertisements for the following week.
13. Purchase goods from Samson Traders and pay by cheque 007, R21 400.
14. Cash a cash cheque 008 for wages, R1 460.
15. Cash sales according to cash register roll, R9 900.
It was decided to rent out a section of the building. Issue receipt 002 o K Selepe for R2 800.
17. Pay Petunia Florists R200 by cheque 009 to have flowers delivered to the owner’s wife.
21. Purchase pens, pencils and receipt books from NSA for R384 and pay by cheque 010.
23. Pay the monthly telephone account to Telkom and pay by cheque 011, R1 520.
24. Cash a cash cheque 012 for wages, R1 280.
26. Cash sales of merchandise, R15 000.
28. Purchase merchandise from Snow Traders and pay by cheque 013, R9 600.
30. Pay the secretary’s salary (K Botha) by cheque 014, R6 200.
ANSWER SHEETS

Cash Receipts Journal of SA Traders for June 2016 CRJ 1

Doc Day Details Fol Analysis of Bank Sales Cost of Sundry accounts
receipts sales Amount Fol Details

Cash Payments Journal of SA Traders for June 2016 CPJ 1

Doc Day Name of payee Fol Bank Trading Wages Stationery Sundry accounts
stock Amount Fol Details