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1. Debtors: Consolidation of Activities
Date: August 2021

Complete the Debtor's Journal and Cash Receipts Journal of Olympia Sport and Trade.

Complete the given General Ledger accounts.

Complete the given Debtor's Ledger account.

The following balances appeared, amongst others, in the books of the business on 1 August 2021:

1. Received a cheque from Helena in full settlement of her account. Receipt 15 was issued to her.
2. Cash sales of merchandise, R3,800 (cost price, R1,900).
3. The business received a cheque from T. Maraj to pay his monthly rental.
4. Sold goods costing R620 on credit to Elmien for R1,240. Issued invoice 96 to her.
5. Ms. Winnings, the owner, decided to increase her capital contribution by depositing a cheque for R10,000 directly into the current banking account of the business.
6. Sold goods to Helena on credit, R2,100 (cost price, R1,050).



Answer :

GinnyAnswer
Certainly! Let's go through the steps involved in documenting the transactions for August 2021 for Olympia Sport and Trade in the appropriate journals, ledgers, and accounts.

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### 1. Debtors Journal and Cash Receipts Journal:

#### Debtors Journal:
| Date | Details | Folio | Invoice No. | Debits (R) | Cost of Sales (R) |
|------------|---------------------------|-------|-------------|------------|-------------------|
| August 2021 | Helena (credit sale) | | | 2,100 | 1,050 |
| August 2021 | Elmien (credit sale) | | 96 | 1,240 | 620 |

#### Cash Receipts Journal:
| Date | Details | Folio | Receipt No. | Amount (R) |
|------------|---------------------------|-------|-------------|------------|
| August 2021 | Received cheque from Helena in full settlement | | 15 | 2,100 |
| August 2021 | Cash sales of merchandise | | | 3,800 |
| August 2021 | Received cheque from T. Maraj for rental | | | Unknown |
| August 2021 | Ms. Winnings increased capital contribution | | | 10,000 |

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### 2. General Ledger Accounts:

#### 2.1 Debtors Control Account:
| Date | Details | Folio | Dr (R) | Cr (R) | Balance (R) |
|-----------------|---------------------------|------------------|--------|--------|--------------|
| August 2021 | Balance b/d | | | | b/d balance |
| August 2021 | Cash receipts (Helena) | CRJ | | 2,100 | |
| August 2021 | Sales (credit sale Helena)| DJ | 2,100 | | |
| August 2021 | Sales (credit sale Elmien)| DJ | 1,240 | | |
| August 2021 | Cost of Sales (Elmien) | DJ | | 620 | |

#### 2.2 Sales Account:
| Date | Details | Folio | Dr (R) | Cr (R) | Balance (R) |
|-----------------|---------------------------|------------------|--------|--------|--------------|
| August 2021 | Sales (Helena) | DJ | | 2,100 | |
| August 2021 | Sales (Elmien) | DJ | | 1,240 | |
| August 2021 | Cash sales | CRJ | | 3,800 | |

#### 2.3 Cost of Sales Account:
| Date | Details | Folio | Dr (R) | Cr (R) | Balance (R) |
|-----------------|---------------------------|------------------|--------|--------|--------------|
| August 2021 | Cost of Goods Sold (cash) | CRJ | 1,900 | | |
| August 2021 | Cost of Sales (Elmien) | DJ | 620 | | |
| August 2021 | Cost of Goods Sold (Helena)| DJ | 1,050 | | |

#### 2.4 Capital Account (Ms.Winings):
| Date | Details | Folio | Dr (R) | Cr (R) | Balance (R) |
|-----------------|---------------------------|------------------|--------|--------|--------------|
| August 2021 | Contribution | | | 10,000 | |

#### 2.5 Bank Account:
| Date | Details | Folio | Dr (R) | Cr (R) | Balance (R) |
|-----------------|---------------------------|------------------|--------|--------|--------------|
| August 2021 | Cash receipt Helena | CRJ | 2,100 | | |
| August 2021 | Cash sales | CRJ | 3,800 | | |
| August 2021 | Rent from T. Maraj | CRJ | Unknown| | |
| August 2021 | Ms. Winnings contribution | CRJ | 10,000 | | |

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### 3. Debtor's Ledger Account:

#### Helena:
| Date | Details | Folio | Dr (R) | Cr (R) | Balance (R) |
|-----------------|---------------------------|------------------|--------|--------|--------------|
| August 2021 | Sales on Credit | DJ | 2,100 | | 2,100 |
| August 2021 | Payment Received in Full | CRJ | | 2,100 | 0 |

#### Elmien:
| Date | Details | Folio | Dr (R) | Cr (R) | Balance (R) |
|-----------------|---------------------------|------------------|--------|--------|--------------|
| August 2021 | Sales on Credit | DJ | 1,240 | | 1,240 |
| August 2021 | Cost of Goods Sold | DJ | | 620 | 620 |

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This solution provides an organized record of the transactions within the appropriate journals, ledgers, and accounts for Olympia Sport and Trade for the month of August 2021.

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