[Music] he everyone welcome to accounting with Miss G and today we're going to be looking at the crj cpj DJ and CJ combination so it's important to know what each of these journals does so the cash receipts Journal is when the business receives money now from a business or from a customer cash payments Journal is when a business pays money now to another business usually um via EFT a DJ is a dett's journal this is when a customer comes into the business and buys on account and that would be an invoice that we would give the customer to say listen this is what you've purchased and so we're going to record it on your account this is how much you owe us and then the CJ is a creditor's journal when a business buys from another business on account so let's say for example your school T shop buys from COC Cola on account that will then be recorded in your school tag shops CJ all right they have now given you a list of the data's balances other words these three customers El cedras F Brown and J Le all owe this amount of money to the business the list of creditors balance these are the three businesses or creditors as we would call them that our business that we working with owes money to so maest limited glass suppliers and Ace wholesalers the business that we're looking at today specifically is for a place called Sunshine glass Traders and we're doing it for the month of November 2022 they have asked you to open the accounts with the given balances or totals in the general ledger of sunshine glass Traders and then you are going to do a cash receipts cash payments dettor and creditors Journal okay so we are not going to do the general ledger now we will do that in another video but for now we're just going to do the crj and cpj DJ and CJ just important to know what each of these things does so I'm going to use different colors your cash receipts Journal is when the business receives money now from either a service rent income um interest income commission income anything like that cash payments Journal is when a business pays now so for rent expense they buy trading stock by consumable there's like a large variety of things DET Journal is when a customer buys from the business on account or what they'll usually um say is on credit so we're looking for the words credit or invoice or on account and then your creditors Journal lastly is when the business buys an account from another business and that also would say something along the lines of a um buying on credit or invoice or on account just remember the name of the business we're dealing with is sunshine glass Traders okay so I'm going to go through each of them pay careful attention to the fact that Sunshine glass Traders sells their merchandise their trading stock at a markup of 40% you're going to need that when entering it into the crj okay so first one the owner J naker increased the capital contribution by 15,000 Rand paid directly into the business bank so by telling me that the business is receiving money they're receiving it from the owner 15,000 Rand for Capital and because it says directly we know that's going to be by EFT so it's a bank statement so just highlight the key wordss throughout so that you know what you are dealing with okay next one you paid NMB Council for water and electricity 310 by EFT so because you've paid and you've paid now because it's EFT water and electricity 310 it's a cpj next when you bought materials from glass suppliers for 9,700 R less 10% trade discount you paid via EF so you've bought materials from glass suppliers bya EFT so it's a cpj but they have received a discount so what you're going to need to work out is how much it was that they actually paid so it's 9,700 Times by your discount which is going to give you 970 R so how much they actually pay is 9,700 - 970 is going to give me 8730 that's the amount that is actually being paid to glass suppliers so sometimes what happens is if a business pays in cash they might get a discount okay you receive merchandise on credit so we know we're dealing with DJ or CJ on credit from a wholesalers Goods invoiced at 8,000 Rand so if you've received merchandise from someone means you must have bought it on account so you've received merchandise 8,000 and an invoice has been issued okay you purchase stationary on account from paper and Co same thing happens you've purchased something from a business on account name um Sunshine glass Traders has purchased from paper and code they've purchased stationary because it says on account that's the giveaway over there and it is also going to be an invoice because whenever anyone buys on account is an invoice is issued you drew cash to pay for wages 4,600 so by drawing Cash Out means you're taking cash out of the ATM to pay for wages when we get to that I'll explain to you how to enter it in you received 4,600 from Landon agents for rent of part of a building issued receipt so that one is a crj youve receiv received money from London agents for rent of part of a building okay and you've issued a receipt so during your exams or during tests and stuff like that it's always useful to have some highlighters so then um highlight what the keywords are and then to identify which Journal it belongs in okay cash sales of merchandise according to the cash register Ro 8,7 00 Rand so cash sales means that they have made money so sales of merchandise cash register rooll is like a till slip and 8,700 so those are the keywords there you bought a computer on credit so because you've purchased a computer on credit from Ace wholesalers we are looking at the CJ because you've purchased from this business on a account or on credit and you've purchased a computer you sold Goods on account to ledras 2000 Rand we know ledras is actually a data but also we know that they're selling something to someone on account which means they're selling it to a data and so therefore it has to be a data's Journal so you sold Goods so that's a sale Alas and 2,000 you receive trading stock bought on credit to the value of 3,510 R from Majesty limited so if you're receiving trading stock the word stock should be there my bad of 3,510 Rand from Majesty limited so that is going to be a CJ you paid glass supplies in settlement of account to date via EFT so because it says you that you've paid that amount bya EFT it's a cpj and in settlement of account we're going to have to work this out what this essentially means is that they're paying their account in full so that they owe zero money cash sales of merchandise 3,200 so you have sold something cash sales of merchandise for 32 if it's a cash sales it's going to be a crr it's not a receipt because a receipt is when it's like not really related to the business so if they're receiving cash for rent income then it could be a receipt depends on unless it's an eftt but because the primary thing that the business does is they make sales by selling up assume glass then it's going to be a crr a till slip on the 10th the owner paid melbour garage for repairs of his own vehicle 380 R via EFT so they have paid this place it's EFT so it's cpj 380 now be careful when it says repairs to his own vehicle people are tempted to write repairs if you see anything about the own or the owner we call it drawings okay so the owner's taken something out for them you sold Goods on credit to J Le for 1,320 Rand so there we are looking at it being a dett's journal cuz the deta has purchased something on account what goods of 1,320 R you paid if toer the manager his salary for November 7,100 via EFT so because it's an EFT payment it's going to be cpj salary to F beer of 7,100 next we're looking at is El sedra paid 1,500 R towards his account you paid he paid bya EFT so El SAS is a deta now the deta eventually has to pay their account I mean they can't just keep buying and buying and buying an account without ever paying it back because the business needs to be able to operate so when El SED pays the business if you think about it this way here's the business I know my artwork is beautiful and this is El SAS when he is paying the business the business is receiving 1,500 Grand bya EFT you sold Goods on credit to F Brown for 300 Rand so F Brown is buying something from the business so he's becoming a dettor because it's on credit you sold Goods you received 4,100 Rand for merchandise sold for cash so you're receiving 4,100 Rand selling merchandise is going to be a sales another name for merchandise is um trading stock so if you're selling trading stock it essentially me means that you are making a sale so if you receive that amount of money it's going to be a CR J and lastly you bought 600 564 Rands worth of consumables from Adam's Warehouse on account so you is the business bought from another business on account so that is going to be a creditor's journal and you've purchased consumables okay so even though it feels like it takes quite a while it's best to actually go through each of them carefully look at the keyword words try and identify where they belong and then you go and enter them in to the crj so what I like to do is I enter in all the crjs then the cpj's and so on and so forth just makes things a bit more manageable and then you can always tick them off at the end so what I'm going to do is I'm going to put this exercise as a link on the video so you're welcome to then download it and practice it yourself and then just if you're not sure try to do it by yourself first and then see if there's anything else um that you don't understand that maybe can help be helped in this video okay so now that we've done all of this it needs to all go into our journals so these are your different types of journals you get the cash receipts and cash payments journal and you get your debtors and your creditors Journal so what I'm going to do first is I'm going to do the cash receipts Journal first just easier to do all of those transactions instead of jumping around so let's have a look at that carefully let me zoom in a little bit for you all right so the first transaction we looking at is it says here the owner J naker increased the capital contribution by 15,000 Rand paid directly into the business bank account so the first step is they want to know what is the document so with the crj is kind of only three options so either could be receipt or it could be bank statement or it could be crr all right when looking through it analysis of receipts is like the till so if it's a bank statement the amount cannot go into your analysis of receipts because technically it's just gone through the internet so someone's paid you via EFT okay sales and cost of sales are best buds so if something goes into the sales amount you have to fill in the cost of sales amount and I'll show you the formula to do that and then data's control is when now your data pays the business so in other words the business is finally receiving money from your data and then finally your sunry section is for anything else that you might have received money for that isn't sales or Deb's control so maybe you received money for rent income or commission income um or interest on your current account that would go into sunry it doesn't have its own column okay so if we're entering in um J naker who is the business owner it says directly which means that it's going to be a BS the date is the okay this zoom in is not working for me there we go the date is the 1st details is who did you receive money from so J naker and that 15,000 rant cannot go into analysis of receipts because it's a BS so it goes then straight into bank was it for sales dett's control or something else it was for something else and that's something else was Capital all right next one the next green one on the 3D you received 4,600 Rand from London agents for rent of part of a building issued a receipt so it's going to be re EC and the date is the third who do we pay London agents can I put it into the till yes cuz it say rece receip I mean it's called analysis of receipt so receipts definitely go there and it's 4,600 can I put it into bank let's look before you put it straight into bank look and see if there's another crj on that day that's going to go into the till because logically if you're a business not every single time you receive money are you going to run to the bank and deposit it that would just take far too much time so what they do is at the end of the day they Bank it so because there's another cash transaction so either a receipt or a crr on that day and this was a receipt just look at the next transaction before you jump into putting it into bank because you're going to bank it up together so I'll show you how to do that so it's 4,600 for rent of a building so it's not for sales it's not for dat's control it is for rent and you must be specific please rent income police cars outside lots of action happening here okay cash sales of merchant do according to crr 8,700 so it's it's a cash sales cash would tell me it's a cash register Ro so crr you can number it oh1 is the first one but you can just leave it like that crr number three and it was for sales please you don't have to write cash sales cuz we know it's from the cash receipts Journal so sales is the correct way to write it it was 8,700 R now are there any other transactions on that day no the next one's on the fifth so I must add up my two bank amounts 133 triple 0 1330 and we Bank it together when banking something after a day so usually if it's more than two amounts if it's one or it's more than one amount so if it's two or more amounts you're going to draw a dark line underneath it to say okay I'm closing the till off and I'm going to deposit this into bank all at once but I still need to specify that what happened here it was a sales amount of 8,700 so which column do I put it into sales dat's control or sunry it's going into sales now I told you that these two are chies you cannot have sales without cost of sales so you need to figure out the how to how do you calculate cost of sales so when we've done if you've watched any of the data's Journal video that I did um a little while ago there is a Formula DP which is the same cost price and this is sp so cost price equals to selling price times now the way I remember it is this one is always going to be this smaller amount you're always going to what what it cost you is always going to be less than what did you set it for cuz you want to make a profit okay so your cost price equals to your selling price times so you're going to put the smaller amount on top cuz the smaller ones first over the bigger number which is 100 plus your markup so your mark whatever your markup would be would make the amount bigger than the one at the top your sales is literally the other way around so selling price equals to cost price times cuz your selling price is bigger the bigger one on top over 100 so if you were given the cost of sales amount then you would be able to work out the sales amount remember the sales amount is what's going into the bank so we as customers pay the selling price for an item so 870 times usual brackets 100 over 100 plus and you'll mark up that I spoke to about earlier is 40% do not enter the percentage sign in you're just entering in 40 that's all you need to do so I'm going to round it off to two decimal I'm going to round it off to the nearest Round actually to make it easier so 6 21 4 6 21 4 just be careful what your question paper says if it asks for one decimal place with two decimal places then just be aware of that okay so that's going into your cost cost of sales remember your sales is always going to be bigger than your cost of sales so just make sure that if you're entering an amount in it must be less than your sales otherwise you've made a mistake the next one is on the 9th you had a cash sales of merchandise c um 3,200 because it's a cash sale we can say that it's a crr it's for sales and can I put it into a receipts yes cuz it's a crr it's not a bank statement can I put it into bank yes cuz it's the only transaction on that day and then does it go to sales Deb is control or Sury enter sales because it's a sale okay again I need to recut cost of sales so I'm taking my 3,200 and I'm timesing it by 100 over 100 + 40 that's going to give me 22 86 I'm just going to round it up so 22 86 second last one for the crj L saidas paid 1,500 R towards his account paid by EFT so EFT is going to be a BS date is the 27th the name of the person that paid was El cedras and because it's a BS I can't put it in the till so it has to go straight into bank and it wasn't for a sale it was for an his account he paid for his account so here we're looking at data's control the deta has now paid for their account so the businesses received money and it was 1,500 next we look at uh received 4,100 R for merchandise sold for cash so cash again will tell me that it's a crr cash register role it's for the 28th and if you're selling trading stock or selling merchandise it is known as a sale still because trading stock or merchandise would be anything that you could find in a shop that people are actually going to that shop to purchase so that 4,100 is going to go into analysis of receipts because it's cash into bank CU it's the only transaction on that day and into sales because it is for a sale and then if I've entered in a sale amount I need to work out my cost of sales and that's 2 9 29 if I round up okay so that's all the crjs for now so what I'm going to do is is I'm going to add up all the columns the only column that you do not ever ever ever add up is analysis of receipts so please don't do that um there are instances where marks will be deducted okay so do not add up analysis of receipts you add up everything else so sunry it's going to be 19,600 dat is control St difficult to add up 6214 + 2286 + 2929 checking okay is 1429 your sales amount is 16,000 and your bank amount finally is 37,00 so now always have to check my answer to make sure and there were multiple things that the business made money from one of them was sales one of them was debt is control and one of them was well the last two was capital and rent so that your sry amount a business doesn't make money from cost of sales because if I think about like this highlighter if this highlighter costs me three Rand to make and I sell it for 10 Rand my sales price is 10 Rand that's what's going into my bank account I don't make the three Rand and the 10 Rand the three rand's hidden in the highlighter so it's included in here so this cost of sales is technically included in your sales amount so to check your answer it's always good to take your sales amount your debt is control and your Sun total and see does it equal up to your bank and it does then I know I haven't made a mistake so we a for away okay next one we're looking at is cpj we should have a sip of water here okay cash payments journal and we have the columns that we need Bank trading stock stationary wages creditors control and sunry now creditors control is when the business pays their account with another business so just like over here where the data pays for their account so they pay the business in this instance the business is paying for um their account with another business the safest option when in doubt is to use a bank statement BS most of the time it might sometimes be a receipt but a lot of the time it would be a bank statement the amount will always go into bank it doesn't matter if there's one or two or three or 50 transactions on that day you'll put it straight into bank so let's enter it in as we go you paid n&b counil for let me just fold this in half so I can actually show you better there we go so we paid n&b Council for water and electricity 3 3,100 R by EFT so EFT tells me it say BS for the first who did we pay in mb Council always into bank and it was for water and electricity so there's no column for water and electricity so I have to put it into sunry 310 for water and electricity next when you bought materials from glass suppliers for 9,700 R less 10% trade discount so we're not entering in the 9,700 we are entering in the amount with the 10% discount so it is an EFT so it's going to be BS for the second glass suppliers and it's going to always go into bank 8730 now trading stock and materials is not the same thing materials is actually an account on its own so that 8,730 Rand is going to go over here for materials trading stock is stock that you would buy to then sell to your customers okay next one you drew cash to pay for wages 4,600 so if you going to draw cash you draw cash from an ATM or in a bank so where you could see that would be on a bank statement the date again is the second so I don't have to write it again who did you pay okay so I know in the past we used to talk about checks and you cash a check to pay for wages then this would be CC which is a check count we don't do that anymore and you would write cash here but because it's a BS a bank statement we can be now specific that who did we pay we imp we paid our employees all right and that amount always goes into bank and then it goes into the wages column cpj is a nice one okay on the eth you paid glass suppliers in settlement of account to date via EFT which means that they owed money to glass suppliers we need to figure out how much that was and then we need to enter it in so I know for now that it's a b is the eighth glass suppliers okay if I look earlier up over here we see that we purchased from glass suppliers on account at some stage in previous months and so we owe them 1,300 Rand there is no other time where we have bought on account from them or paid for our account the only time was here we purchased but that was via um EFT so we paid straight cash for it that wouldn't affect our account at all and so the amount that I ow or Sunshine glass Traders owes is 1,300 R so what they're saying is if they settle the account it means that they owe nothing so they would have paid 1,300 Rand to settle that account so I say this is not included because this is a cash payment it made no difference to the account that they had with glass suppliers okay so that 1,000 300 Rand is going to go into bank and now it goes into creditors control all right last two for cpj the owner paid melbour garage for repairs to his own vehicle 380 R via EFT so it's going to be a bank statement the 10th Melba we my spelling Melba garage 380 into your bank always and if it's for repairs to his own vehicle going to go into Sury and it's not repairs cuz it's not repairs of the business's vehicle it's his owned vehicle so as we said it is drawings so if you ever see the owner took money for his own personal use or the owner took money for his child's birthday party or whatever it might be whenever the owner takes something out it's known as drawings when they put something into the business they call it capital okay you paid F to beer manager his salary for November 7,100 Rand via EFT again BS 27th if deer and we paid his salary so 7,100 goes into bank salary and wages is not the same wages get paid weekly salaries are monthly so we're going to put it into sunry please don't put it into the wages column and it's for salary all right you'll see that there's no amounts for trading stock in stationary um I didn't want to make the activity like too long so just um keep that in mind here we can enter in every or add up everything there's no funny business here that's why I like cpj it's uncomplicated okay so we going to add up all our columns dark line at the top and the bottom to shows the total and we're can to add a 310 8730 380 and 710 okay so the total here is6520 creditors control is straightforward so is Wages there's nothing for stationary or trading stock so let's add up your Bank total 380 and 71 so the bank total 22420 now just to be sure that I haven't made a mistake I can add up everything on the right of bank so if there was anything in trading stock or stationary and then wages creditors control and Sury and it should equal up to my bank because I paid for wages I paid for my the account we paid for water and electricity we paid for materials we paid for drawings and we paid someone's salary yeah so it works out perfectly it's a nice feeling when that happens so your bank equals up to all of your other um accounts combined okay so that's the crj cpj deep breaths next one is a data's Journal now if you look at the difference between a crj and a DJ um a DJ does not have a bank column reason being is because there is nothing that is affecting or it's not affecting your bank so your debt is control is when remember a customer buys an account which means they walk into the business they choose something they like they put it on their account they leave with the item and don't pay for it they'll pay at a later stage so so for now we only have a sales and a cost of sales column so we're going to enter those in I think the only three you sold Goods to on account to elas of 2000 so you're going to need to know that it is an invoice okay and if they haven't given you a number in the DJ you can number it as 01 otherwise your teacher might accept it is just invoice that's fine day is the 7th and the details is L SAS I think my pin is running out yeah it's getting exhausted okay the sales amount so goods sold on account count El said us was 2,000 so the sales amount is 2,000 R again we're going to use the formula cost price equals to selling price time 100 over 100 + your 40% markup so 2,000 * 100 over 100 + 40 I round it off it is 1429 next one you sold Goods on credit to J 1320 Rand this would be invoice number two the 14th J 1320 so that 1320 * by 100 over 100 + 40 gives me 943 and lastly you sold Goods on credit to F Brown for 300 so invoice number three for the 28th if Brown 300 again we're going to calculate 300 * 100 over 100 + 40 and there we get 24 all right because we this these people there lots of different people that are all buying from one business sunshine glass Traders we can use the invoice number 01 and then 02 and 03 so just keep that in mind when we do the CJ I'll show you how it's different okay like with everything dark line at the top and at the bottom to show your totals so 1429 + 943 + 214 is 25 8 six and your sales amount is 3620 okay so that's the detas journal then we on to the last one which is our creditor Journal this is when the business buys on account from another business so it's very very similar to the cpj if you have a look at it the only difference is that there's again no Bank column the bank column has been replaced with credit is control because when you pay for something like you're paying for trading stock stationary in the cpj it affects your bank but when you're buying something on account like trading stock equipment it's affecting your creditors control so basically the account that shows how much the business owes to other businesses okay let's look at the first one you receive merchandis credit from Ace wholesalers Goods invoiced at 8,000 okay so if it's going to be a CJ usually we'd actually should give you an invoice number because it's going to be a random number depending on when you went to go visit Ace wholesalers to buy something so for now I'm just going to put it as in inv V so if it says the in V70 You' put in in inv V70 so the seconds if you can see let's do the folding trick again a wholesalers it's always just like with bank it's always going to go into creditors control and then they purchased merchandise which is the same thing as trading stock Okay purchase stationary on account from p and code 215 so it's an invoice you need to know it's an invoice if it's a DJ or a CJ still the second so I'm not going to write the date again paper and Co 215 into creditors control there is no stationary equipment here so I'm going to put it in over here for stationary remember stationary is in expense you spell stationing with an E like you do with a pen p n pencil so it's e it's an expense so many times people think it's an asset um next pink one bought a computer on credit from Ace wholesalers for 8528 R so it's an invoice number five from Ace wholesalers of 8528 and that is therefore going to increase um your equipment in other words you have bought more equipment because computer is considered equipment as not an account on its own okay you receive trading stock board on cred credit to the value of 3510 Rand from Majesty limited it's invoice number seven from Majesty limited goes into creditors control L and they bought trading stock that goes in the trading stock column last one you bought 564 Rands worth of consumables from Adams Warehouse on account that's again invoice 28 from Adams Warehouse and 564 Rand goes always into creditors control and consumables 564 things that you would use up in your business like um uh like cleaning detergents and things like that to clean your business um Handy Andy dishwashing liquid so that 564 Rand for consumables sometimes they call it consumable stores just read the question it depends both um would be acceptable okay then to finally end it all off totals need to be written in between the two dark lines so we just add up everything again so the only thing that you don't ever add up is crj analysis of receipts 215 + 564 is 779 equipment is 8528 here I don't even know why I actually added that up is literally one amount 8,000 and 3510 115 5 1 and then creditors control 8,000 215 8528 3510 564 20817 so now if I'm skeptical at the amount let's just check 11510 + 8528 + 77 99 okay 20817 so it is perfect feel like I need to take a deep breath now after all of that okay so we have done like we need a drum roll or something we have done the crj the business receives money cpj the business pays money either in cash or EFT but the payment is is made now then we done a data's journal and a creditor's journal data's journal the customer buys an account from the business creditors Journal is when our business Sunshine glass Traders buys from another business on account so these were the businesses they purchased from on account so this amount over here tells me this is what they owe other businesses um and that's how much basically debt I suppose you can call it or liability they have racked up whereas over here this one in Orange this sales is this is the amount of money that their customers owe them so it's good to obviously have a look at these dat's control or your amount from sales is this is seen as an asset and your um creditors control is seen as a liability I'll actually show you how that all of that is entered in eventually at the so this amount is how much your debtors owe you as a business so owe Sunshine glass Traders and then I will show you how to enter all of these totals into a general ledger just a bit of advice when doing accounting I know it can be like really daunting try imagine yourself in the perspective of the business imagine you own Sunshine glass Traders and then read the questions carefully I just find sometimes that helps if you own that business and this is what's happening then it might be easier for you to identify where belongs to but yeah thank you so much for coming I hope you are able to understand the chaos of accounting I love it I hope you do too and keep an eye out for any more videos that are being uploaded I really hope this helped you and yeah really would appreciate if you subscribe and hit the like button on this video and have a good day good luck for your exams [Music] m