6.4 Petty Cash Journal...................................................................................................................................................................................................92 6.4.1 Purpose of the petty cash..............................................................................................................................................................92 6.4.2 The transfer of money from the bank to the petty cash account...............................................92 6.4.3 The petty cash voucher....................................................................................................................................................................92 6.4.4 Opening the Petty Cash Journal..........................................................................................................................................92 6.4.5 Cash payments from petty cash............................................................................................................................................92 6.4.6 Posting of the petty cash entries to the ledger...................................................................................................92 6.4.7 Closing off the petty cash account....................................................................................................................................93


Module 7 – Trading Concern: Wages and Salaries 7.1 Types of remuneration systems...........................................................................................................................................................108 7.1.1 Hourly wage system.........................................................................................................................................................................108 7.1.2 Piece wage system...............................................................................................................................................................................108 7.1.3 Salary system.............................................................................................................................................................................................108


7.2 Overtime remuneration................................................................................................................................................................................108 7.3 Deductions......................................................................................................................................................................................................................109 7.3.1 Pension fund...............................................................................................................................................................................................109 7.3.2 Income tax (PAYE – Pay As You Earn).....................................................................................................................109 7.3.3 Unemployment Insurance Fund (UIF)......................................................................................................................110 7.3.4 Medical aid....................................................................................................................................................................................................110 7.3.5 Staff associations....................................................................................................................................................................................110


7.4 The Wages Journal..................................................................................................................................................................................................111 7.5


The Salaries Journal.............................................................................................................................................................................................113


Module 8 – Bank Reconciliation 8.1 Bank reconciliation..............................................................................................................................................................................................128 8.1.1 Reasons for differences.................................................................................................................................................................128


8.2 Procedural rules for reconciliation..................................................................................................................................................129 8.3 Drawing up a Bank Reconciliation Statement..................................................................................................................131


Module 9 – Year End Procedures 9.1 The concept of profit...........................................................................................................................................................................................164 9.1.1 Calculating gross profit.................................................................................................................................................................164 9.1.2 Calculating net profit......................................................................................................................................................................165 9.1.3 Calculating owner’s equity ........................................................................................................................................................165


9.2 Final accounts and closing procedure.............................................................................................................................................166 9.2.1 Statement of Profit or Loss.......................................................................................................................................................172 9.2.2 Statement of Financial Position ........................................................................................................................................173


Module 10 – Revision exercises..............................................................................................................................................................183 Glossary..................................................................................................................................................................................................................................................190


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