BOOKKEEPING OF A SOLE TRADER notes

CAPS places informal / indigenous bookkeeping under Managing Resources. You compare how informal (indigenous) traders and formal businesses raise capital, hold fixed assets and inventory, set…

This section is internal control and the code of ethics for a sole trader. CAPS integrates both with every later topic. Learn the definitions, the basic principles of ethics, and the control…

This section is GAAP and the Grade 10 accounting concepts for a sole trader. Master the six principles and the meaning of assets, liabilities, owner's equity, income and expenses. Journals and…

Cash of a sole trader is recorded in three subsidiary journals (books of first entry): the Cash Receipts Journal (CRJ), the Cash Payments Journal (CPJ), and the Petty Cash Journal (PCJ). Start from…

After the subsidiary journals are totalled, you post into the General Ledger, then draw up a Trial Balance. This section covers T-account layout, folio cross-references, DAX / CIL balance rules…

This section covers the credit subsidiary journals of a sole trader: Debtors Journal (DJ), Debtors Allowances Journal (DAJ), Creditors Journal (CJ), Creditors Allowances Journal (CAJ), and the…

After journals are written up, amounts move into ledgers. This section covers the subsidiary ledgers (the Debtors Ledger and the Creditors Ledger) and the matching control accounts in the General…

A sole trader often runs cash and credit in the same month. This section trains you to take a mixed list of transactions, pick the correct subsidiary journal, name the source document, and analyse…

After posting to subsidiary ledgers and control accounts, you must reconcile. A debtors list (and creditors list) is extracted from personal accounts and compared with Debtors control (and Creditors…