Contents


Module 1 – Introduction: Forms of Ownership and Wealth Generation 1.1 The concept of accountancy..........................................................................................................................................................................2 1.2


Capital for a new business................................................................................................................................................................................2


1.3 The profit motive........................................................................................................................................................................................................2 1.4


Different forms of ownerships....................................................................................................................................................................4 1.4.1 Sole trader...........................................................................................................................................................................................................4 1.4.2 Partnership.........................................................................................................................................................................................................5 1.4.3 State-owned companies (SOCs).............................................................................................................................................5 1.4.4 Private company (Pty Ltd) ...........................................................................................................................................................5 1.4.5 Personal Liability Company Incorporated (PLC Inc.)...............................................................................6 1.4.6 Public companies (Ltd).......................................................................................................................................................................6 1.4.7 Close corporations (CC)...................................................................................................................................................................6 1.4.8 Non-profit companies (NPC)....................................................................................................................................................6


Module 2 – Opening a Trading Concern 1.


Opening of a trading concern...................................................................................................................................................................10 1.1 Management decisions on opening a trading business ..........................................................................10 1.1.1 Business activities ...................................................................................................................................................................................10 1.1.2 Capital acquisition.................................................................................................................................................................................12 1.1.3 Forms of enterprise................................................................................................................................................................................13 1.1.4 Size of enterprise......................................................................................................................................................................................13 1.1.5 Basis of conducting business.....................................................................................................................................................14 1.1.6 Assets needed for operation......................................................................................................................................................14 1.1.7 Additional preparations when starting a business........................................................................................15 1.1.8 Seven steps when appointing employees...................................................................................................................16 1.1.9 Tax registration ........................................................................................................................................................................................18 1.1.10 Registration with local authorities...................................................................................................................................18


Module 3 – Documents and Authorisation of Documents 3.1 3.2


Introduction....................................................................................................................................................................................................................22


Source documents....................................................................................................................................................................................................22 3.2.1 Receipts...............................................................................................................................................................................................................22 3.2.2 Cheques and cheque counterfoils.......................................................................................................................................23 3.2.3 Cash register slips...................................................................................................................................................................................24 3.2.4 Cash invoice...................................................................................................................................................................................................24 3.2.5 Credit notes....................................................................................................................................................................................................25


3.3 Supporting documents.......................................................................................................................................................................................25 3.3.1 Internal documents...............................................................................................................................................................................25 3.3.2 External documents..............................................................................................................................................................................26 3.3.3 Filing/archiving of documents...............................................................................................................................................26 3.3.4 Types of filing..............................................................................................................................................................................................26 3.3.5 Safekeeping of used and unused internal source documents...........................................................27 3.3.6 Authorisation of transactions.................................................................................................................................................27


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