1.2 Cash Payments Journal RANSACTIONS FOR FEBRUARY 2023 The owner started the business by depositing R70 000 capital into the bank account of the business. This reflected on the bank statement. Bought trading stock from Kit-Kat and paid by EFT 01, R8 000 Cash sales as per cash register roll for the day amounted to R6 000, (50\% profit mark-up on cost)

In February 2023, the owner of the business took a bold step by injecting R70,000 into the start-up's bank account, providing a solid foundation for operations. This capital infusion is a crucial determinant of the business's ability to fund activities, purchase inventory, and navigate initial expenses. It serves as a testament to the owner's commitment and sets the stage for financial management practices moving forward! When it comes to cash sales, those R6,000 from the cash register not only signify income but also showcase the potential for growth. With a 50% profit mark-up, the cost of goods sold is R4,000. This insight allows owners to plan future stock purchases and analyze demand trends, ensuring they maintain adequate inventory while maximizing profit margins, an essential strategy for sustaining a healthy cash flow!