Capital: R 100000, Equipment: R 30 000, Vehicles: R50 000, Bank: R35 000, Services Rendered: R 10 000, Rent Income: R10 000, Wages: R 5000 1st: The owner, J. Hulley, invested R600 000 into her business Hulley Super Motor Repair. Issued receipt no, 51. Services Rendered as per CRR for cash, R16800. 4th: Purchased a Desk and Laptop form MM Designers and paid by cheque no. 161, R18 000. 7th: Purchased consumables from Mandla Stores for R14000 less 10% trade discount and paid by cheque no. 162. 13th: Cash cheque no. 163 to pay wages, R2 800. 13th: Purchased packing material for R400 from Eveline Papers and paid by cheque no. 164 16th: Purchased a new vehicle from Evan Motors and paid by cheque no. 165, R340 000 19th: Issued cheque no. 166 to Telkom to pay the telephone for the business R650 and the owner, R840. 22nd: Cash cheque no. 167 to pay wages, R2 800. 22nd: Purchased consumables Mandla Stores for R24 000. Issued cheque no. 168 22nd: Cash received R6 000 from Cash receipt roll. 25th: Received cash as per CRR2 for services rendered, R32 000 25th: Received a cheque from Winnie Gifts for equipment sold, R12000. Issued receipt no. 52 31st: Issued cheque no. 170 to pay Joburg City Municipality for water and electricity R2 400 and rates and taxes R1 100. 31st: Paid the salary of the manager, J Matata, R15000, cheque no. 171 was issued. CASH RECEIPTS JOURNAL OF - JANUARY 2015 CRJI | Doc | D | Details | F | Analysis Of | Bank | Sales | Cost of Sales | Sundry Accounts | | | | | | | | | | | | | | | | | | | | Amount | F | Details |
Answer (2)
The owner invests R600 000, increasing both 'Analysis of Receipts' and 'Bank', with 'Capital' recorded under 'Sundry Accounts'.
Services rendered bring in R16 800, R6 000 and R32 000, increasing 'Analysis of Receipts', 'Bank', and 'Sales'.
Equipment sale adds R12 000 to 'Analysis of Receipts' and 'Bank', with 'Equipment' noted under 'Sundry Accounts'.
The totals are: Analysis of Receipts R 666800 , Bank R 666800 , Sales R 54800 , Sundry Accounts R 612000 .
Explanation
Understanding the Cash Receipts Journal We need to populate the Cash Receipts Journal (CRJ) for Hulley Super Motor Repair for January 2015. The CRJ includes columns for 'Analysis of Receipts', 'Bank', 'Sales', 'Cost of Sales', and 'Sundry Accounts'. We will analyze each transaction to determine which columns are affected and by what amounts.
Owner's Investment Transaction 1 (Jan 1): The owner, J. Hulley, invested R600 000 into the business. This increases both the 'Analysis of Receipts' and 'Bank' columns. The 'Sundry Accounts' column will also be affected, with 'Capital' as the detail and R600 000 as the amount.
Services Rendered Transaction 2 (Jan 2): Services Rendered for cash, R16800. This increases the 'Analysis of Receipts', 'Bank', and 'Sales' columns by R16800.
Cash Received Transaction 3 (Jan 22): Cash received R6 000 from Cash receipt roll. This increases the 'Analysis of Receipts', 'Bank', and 'Sales' columns by R6000.
Services Rendered Transaction 4 (Jan 25): Services rendered R32 000 (cash). This increases the 'Analysis of Receipts', 'Bank', and 'Sales' columns by R32000.
Sale of Equipment Transaction 5 (Jan 25): Received cheque from Winnie Gifts for equipment sold R12000. This increases the 'Analysis of Receipts' and 'Bank' columns. The 'Sundry Accounts' column will also be affected, with 'Equipment' as the detail and R12000 as the amount.
Journal Entries and Totals Now, let's summarize the entries for the Cash Receipts Journal:
January 1:
Analysis of Receipts: R600 000
Bank: R600 000
Sundry Accounts: R600 000 (Capital)
January 2:
Analysis of Receipts: R16 800
Bank: R16 800
Sales: R16 800
January 22:
Analysis of Receipts: R6 000
Bank: R6 000
Sales: R6 000
January 25:
Analysis of Receipts: R32 000
Bank: R32 000
Sales: R32 000
January 25:
Analysis of Receipts: R12 000
Bank: R12 000
Sundry Accounts: R12 000 (Equipment)
To find the totals for each column, we sum the amounts:
Total Analysis of Receipts: R600 000 + R16 800 + R6 000 + R32 000 + R12 000 = R666 800
Total Bank: R600 000 + R16 800 + R6 000 + R32 000 + R12 000 = R666 800
Total Sales: R16 800 + R6 000 + R32 000 = R54 800
Total Sundry Accounts: R600 000 (Capital) + R12 000 (Equipment) = R612 000
Final Amounts Therefore, the Cash Receipts Journal would show:
Analysis of Receipts: R 666800
Bank: R 666800
Sales: R 54800
Sundry Accounts: R 612000 (Capital and Equipment)
Examples
Understanding cash inflows is crucial for managing a business. For example, a small repair shop can use a Cash Receipts Journal to track all incoming cash from services, sales of parts, and investments. By accurately recording these transactions, the owner can monitor the financial health of the business, make informed decisions about expenses, and plan for future growth. This detailed record-keeping ensures transparency and helps in preparing accurate financial statements.
The Cash Receipts Journal for Hulley Super Motor Repair in January 2015 reflects a total of R666,800 for both 'Analysis of Receipts' and 'Bank', with 'Sales' totaling R54,800 and 'Sundry Accounts' reaching R612,000. Key transactions include the owner's investment, cash received for services, and the sale of equipment. Accurate record-keeping of these transactions is essential for financial management.
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