EMS
HOOFSTUK 1 : EKONOMIESE STELSELS
WAT IS ‘N EKONOMIESE STELSEL?
, BASIC PRINCIPLES
THE [GENERAL] ACCOUNTING EQUATION:
ASSETS [A] = EQUITY [E] + LIABILITIES [L]
Assets Equity Liabilities
Dr. A Cr. Dr. E Cr. Dr. L Cr.
+ - - + - +
NON-OPERATING ASSETS
Tangible / fixed assets Dr. Withdrawals Cr. NON CURRENT LIABILITIES
+ -
• Grounds and infrastructure (is paid back over 12 months)
/ property
• Mortgage loan
• Equipment
• Loans
• Vehicles
Dr. Capital Cr.
+ -
CURRENT LIABILITIES
Financial assets
(is paid back in less than 12
• Fixed deposit (longer than 12
Dr. Expenses Cr. months)
months)
+ -
• Trade creditors
u Cost of sales
• Bank Overdraft (Cr.)
u Interest expense
CURRENT ASSETS • Short term portion of
u Rental expense
Salaries and loans loan
Stocks u
u Stationery
• Trading stock u Fuel Important terminology:
u Packaging material
u Repair work Z Trading business > business that
Trade and other receivables u Insurance sells goods and services to make
u Advertisements a profit
• Debtors control u Discount granted Z Trading stock > (asset) goods
u Telephone bought with the intention of
Trade and other receivables
u Water and selling them at a profit
electricity Z Cost of sales > cost price of the
Cash and cash equivalents Dr. Income Cr. merchandise already sold (what
owner paid for the purchased
- +
• Bank (Dr.) goods)
• Petty cash u Sales
• Change u Current Income
• Fixed deposit (less than 12 u Interest income
u Rent income
months)
u uReceived discount
2 © Noted Summaries Grade 9 EMS Part 2 : Accounting www.notedsummaries.co.za
, IMPORTANT TRADE CALCULATIONS:
100
1.Cost price Selling price x
100+%
100+%
2. Sales price [cost price + profit margin] Cost price x
100
Selling price - Cost price 100
3. Profit margin x =%
Cost price 1
100+%
4.Sales Cost of sales x
100
100
6.Cost of sales Sales x
100+%
EXAMPLE OF CALCULATIONS
[GENERAL EQUATION > GENERAL LEDGER]
[effect on the accounting equation]
1. Office equipment purchased.
>Equipment (A)
>Bank (A) [we purchased the equipment in cash SO our bank becomes less
ACCOUNT Dr. ACCOUNT Cr. ASSETS EQUITY LIABILITIES
Equipment Bank
[ASSETS [ASSETS REDUCE +
0 0
INCREASE on the on the credit -
debit side] side]
2. Water bill paid.
> Water and electricity [Expense > EQUITY -] (E - ) DEBIT EXPENSES
>Bank (A) [pay the bill with cash]
ACCOUNT Dr. ACCOUNT Cr. ASSETS EQUITY LIABILITIES
Water and Bank
- - 0
electricity
3. Rental income obtained.
> Rental Income [Income > EQUITY +] (E + ) CREDIT INCOME
>Bank (A) [we OBTAIN> our bank INCREASES]
ACCOUNT Dr. ACCOUNT Cr. ASSETS EQUITY LIABILITIES
Bank Rent income
[ASSETS [EQUITY + + 0
INCREASE on the INCREASES on
debit side] the credit side]
4. Stationery purchased.
> Stationery = EQUITY (E -)
>Bank (A)
ACCOUNT Dr. ACCOUNT Cr. ASSETS EQUITY LIABILITIES
Stationary Bank - - 0
3 © Noted Summaries Grade 9 EMS Part 2 : Accounting www.notedsummaries.co.za
HOOFSTUK 1 : EKONOMIESE STELSELS
WAT IS ‘N EKONOMIESE STELSEL?
, BASIC PRINCIPLES
THE [GENERAL] ACCOUNTING EQUATION:
ASSETS [A] = EQUITY [E] + LIABILITIES [L]
Assets Equity Liabilities
Dr. A Cr. Dr. E Cr. Dr. L Cr.
+ - - + - +
NON-OPERATING ASSETS
Tangible / fixed assets Dr. Withdrawals Cr. NON CURRENT LIABILITIES
+ -
• Grounds and infrastructure (is paid back over 12 months)
/ property
• Mortgage loan
• Equipment
• Loans
• Vehicles
Dr. Capital Cr.
+ -
CURRENT LIABILITIES
Financial assets
(is paid back in less than 12
• Fixed deposit (longer than 12
Dr. Expenses Cr. months)
months)
+ -
• Trade creditors
u Cost of sales
• Bank Overdraft (Cr.)
u Interest expense
CURRENT ASSETS • Short term portion of
u Rental expense
Salaries and loans loan
Stocks u
u Stationery
• Trading stock u Fuel Important terminology:
u Packaging material
u Repair work Z Trading business > business that
Trade and other receivables u Insurance sells goods and services to make
u Advertisements a profit
• Debtors control u Discount granted Z Trading stock > (asset) goods
u Telephone bought with the intention of
Trade and other receivables
u Water and selling them at a profit
electricity Z Cost of sales > cost price of the
Cash and cash equivalents Dr. Income Cr. merchandise already sold (what
owner paid for the purchased
- +
• Bank (Dr.) goods)
• Petty cash u Sales
• Change u Current Income
• Fixed deposit (less than 12 u Interest income
u Rent income
months)
u uReceived discount
2 © Noted Summaries Grade 9 EMS Part 2 : Accounting www.notedsummaries.co.za
, IMPORTANT TRADE CALCULATIONS:
100
1.Cost price Selling price x
100+%
100+%
2. Sales price [cost price + profit margin] Cost price x
100
Selling price - Cost price 100
3. Profit margin x =%
Cost price 1
100+%
4.Sales Cost of sales x
100
100
6.Cost of sales Sales x
100+%
EXAMPLE OF CALCULATIONS
[GENERAL EQUATION > GENERAL LEDGER]
[effect on the accounting equation]
1. Office equipment purchased.
>Equipment (A)
>Bank (A) [we purchased the equipment in cash SO our bank becomes less
ACCOUNT Dr. ACCOUNT Cr. ASSETS EQUITY LIABILITIES
Equipment Bank
[ASSETS [ASSETS REDUCE +
0 0
INCREASE on the on the credit -
debit side] side]
2. Water bill paid.
> Water and electricity [Expense > EQUITY -] (E - ) DEBIT EXPENSES
>Bank (A) [pay the bill with cash]
ACCOUNT Dr. ACCOUNT Cr. ASSETS EQUITY LIABILITIES
Water and Bank
- - 0
electricity
3. Rental income obtained.
> Rental Income [Income > EQUITY +] (E + ) CREDIT INCOME
>Bank (A) [we OBTAIN> our bank INCREASES]
ACCOUNT Dr. ACCOUNT Cr. ASSETS EQUITY LIABILITIES
Bank Rent income
[ASSETS [EQUITY + + 0
INCREASE on the INCREASES on
debit side] the credit side]
4. Stationery purchased.
> Stationery = EQUITY (E -)
>Bank (A)
ACCOUNT Dr. ACCOUNT Cr. ASSETS EQUITY LIABILITIES
Stationary Bank - - 0
3 © Noted Summaries Grade 9 EMS Part 2 : Accounting www.notedsummaries.co.za
