Study Master Economic and Management Sciences Grade 9 Teacher S Guide

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Economic and

Management Sciences
CAPS

Grade

9
Grade

11
Teacher’s Guide

Marietjie Barnard • Angela Voges


Christine de Nobrega

SM_EMS_G9_TG_CAPS_ENG.indd 1 2013/06/05 5:59 PM


Study & Master

Economic and
Management Sciences

Grade 9
Teacher’s Guide

Marietjie Barnard • Angela Voges • Christine de Nobrega

SM_EMS_G9_TG_TP_CAPS_ENG.indd
EMS 9 TG (ENG).indb 1 1 2013/06/05 5:57PM
6/5/13 6:22:30 PM
cambridge university press

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Cambridge University Press


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© Cambridge University Press 2013

This publication is in copyright. Subject to statutory exception


and to the provisions of relevant collective licensing agreements,
no reproduction of any part may take place without the written
permission of Cambridge University Press.

First published 2013

ISBN 978-1-107-25678-1

Editor: Christine de Nobrega


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Typesetter: Brink Publishing and Design
Illustrators: Izak Vollgraaff, Geoff Walton
Cover image: Gallo/Getty Images
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EMS 9 TG (ENG).indb 2 6/5/13 6:22:30 PM


Contents

1. INTRODUCTION 1
1. Curriculum and Assessment Policy Statement (CAPS) 2
2. Economic and Management Sciences as a subject 2
3. How
 Study & Master Economic and Management Sciences
Grade 9 works 4
4. Grade 9 Annual Teaching Plan 7

2. LESSON BY LESSON 13
TERM 1 
Topic 1: Looking back, looking ahead 14
Topic 2: Cash Receipts Journal and Cash Payments Journal
(sole trader) 15
Topic 3: Economic systems 26
Formal Assessment Task 1: Assignment (see Section 3)
Topic 4: General Ledger and Trial Balance (sole trader) 34
Topic 5: Circular flow 67
Revision Term 1 73
Controlled Test 1 82

Term 2
Topic 6: Looking back, looking ahead 91
Topic 7: Credit transactions: Debtors (1) 92
Topic 8: Price theory 101
Formal Assessment Task 2: Data response (see Section 3)
Topic 9: Sectors of the economy 111
Revision Term 2 118
Mid-year Examination practice paper: Memo 123

Term 3
Topic 10: Looking back, looking ahead 126
Topic 11: Trade unions 127
Formal Assessment Task 3: Project (see Section 3)
Topic 12: Credit transactions: Debtors (2) 133
Topic 13: Credit transactions: Creditors (1) 158
Topic 14: Functions of a business 164

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Topic 15: Credit transactions: Creditors (2) 170
Revision Term 3 184
Controlled Test 2 192

Term 4
Topic 16: Looking back, looking ahead 199
Topic 17: Transactions: Cash and credit 200
Topic 18: Business plan 240
Revision Term 4 248
End-of-year Examination practice paper: Memo 259

3. FORMAL ASSESSMENT 265


1. Assessment
 in Economic and Management Sciences in
Grade 9 266
2. Programme of Assessment 268
3. Formal Assessment Tasks 270
Formal Assessment Task 1: Assignment  270
Formal Assessment Task 2: Data response 276
Formal Assessment Task 3: Project 284
4. Tests and Examinations: Guidance 289
5. Recording and reporting 296

4. RESOURCES 301
1. Actual
 end-of-year examination paper and
marking memorandum 302
2. PowerPoint CD 318
3. List of useful reading material and Internet resources  319
4. Glossary for teachers 320
5. Lesson plan template 324

5. ASSESSMENT TEMPLATES 325

6. S
 OURCE DOCUMENTS AND
JOURNAL TEMPLATES 329

7. DOCUMENTS 339

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1. Introduction
1. C
 urriculum and Assessment Policy
Statement (CAPS) 2
2. Economic and Management Sciences
as a subject  2
3. How Study & Master Economic and
Management Sciences Grade 9 works 4
4. Grade 9 Annual Teaching Plan  7

EMS 9 TG (ENG).indb 1 6/5/13 6:22:30 PM


1. Curriculum and Assessment Policy Statement
(CAPS)
A single Curriculum and Assessment Policy Statement (CAPS)
exists for each school subject. The CAPS for each subject details the
minimum outcomes and standards of the learning process, as well as
assessment processes and procedures.

For more information on the CAPS, please see Section 1 of the CAPS
document for Economic and Management Sciences.

2. Economic and Management Sciences as


a subject
Aims
Economic and Management Sciences is a fundamental subject and
is therefore compulsory for all Grade 7 to 9 learners. As a practical
subject, its aim is to equip learners with real-life skills for their
personal development and the development of their communities. In
other words, Economic and Management Sciences aims to:
• Develop learners’ skills to deal with the efficient and effective use
of different types of private, public or collective resources to satisfy
people’s needs and wants.
• Guide learners to reflect critically on the impact of resource
exploitation on the environment and on people.
• Teach learners to deal with the effective management of scarce
resources in order to maximise profit.
• Provide opportunities for learners to expand their own personal
development.
• Guide learners using tasks that promote the idea of sustainable
economic growth and the development of their communities.

Economic and Management Sciences topics


The issues dealt with in Economic and Management Sciences are
inter-related and covered through three topics:
• The economy
• Financial literacy
• Entrepreneurship
The table below indicates the main topics in the Economic and
Management Sciences curriculum.

Topic Grade 7 Grade 8 Grade 9


1 The economy • History of money • Government • Economic systems
• Needs and wants • The National Budget • The circular flow
• Goods and services • Standard of living • Price theory
• Inequality and • Markets • Trade unions
poverty
• The production
process

2 INTRODUCTION

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Topic Grade 7 Grade 8 Grade 9
2 Financial literacy • Savings • Accounting concepts • Cash Receipts
• Budgets • Accounting cycle Journal and Cash
• Income and expenses • Source documents Payments Journal of
• Accounting concepts • Cash Receipts a sole trader
Journal and Cash • Posting to the
Payments Journal of General Ledger
a service business • Preparing a Trial
• Effects of cash Balance
transactions on the • Recording
accounting equation transactions in the
• General Ledger Debtors Journal,
• Trial Balance Creditors Journal
• Posting to the
Debtors Ledger and
Creditors Ledger

3 Entrepreneurship • The entrepreneur • Factors of production • Sectors of the


• Starting a business • Forms of ownership economy
• Businesses • Levels of • Functions of a
• Entrepreneur’s Day management business
• Functions of • A business plan
management

Overview of content
An overview of the content of Economic and Management Sciences
entails the following:
• the needs and wants of different communities in societies
• the nature, processes and production of goods and services, and
business activities within the different sectors
• financial management, accounting as a tool for management of a
business, and record keeping
• the influence of demand and supply, and pricing
• the flow of money, goods and services between households,
businesses and government, and the rights and responsibilities of
the different role players in the economy
• the way in which to achieve sustainable growth, reduce poverty
and distribute wealth fairly, while still pursuing profitability
• entrepreneurial skills and knowledge needed to manage self and
the environment effectively
• basic aspects of leadership and management
• the role of savings in sustainable economic growth and
development
• trade unions and their influence in the economy
• the importance of using resources sustainably, effectively and
efficiently
• the functioning of both formal and informal businesses.
Time allocation
The teaching time for Economic and Management Sciences is
two hours per week. As this subject involves the development of
accounting skills of learners in Grade 9, one hour per week must be
used for financial literacy in terms of the Annual Teaching Plan.

INTRODUCTION 3

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The instructional time per year for each Economic and Management
Sciences topic in Grade 9 is as follows:

Topic Number of
hours per year
The economy 19
Financial literacy 32
Entrepreneurship 13
Revision 8
Contact time 72
Examinations 8
Total hours 80
Total weeks 40

For information on assessment in Economic and Management


Sciences, please see Section 3 of this Teacher’s Guide.

3. How Study & Master Economic and Management


Sciences Grade 9 works
Teaching and learning materials required for
Economic and Management Sciences
• Each learner should have a textbook and a calculator.
• Learners should each have one Cash Journal exercise book, one
General Ledger exercise book and a normal exercise book.
• Teachers should have a textbook with a Teacher’s Guide.

Course components
Study & Master Economic and Management Sciences Grade 9 consists of a:
• Learner’s Book
• Teacher’s Guide
Learner’s Book
The Learner’s Book is divided into four terms that cover the three
Economic and Management Sciences topics in the same order as they
appear in the Annual Teaching Plan of the CAPS document. Thus
each term in the Learner’s Book is divided as follows:
• Economic and Management Sciences topics
• Content within each topic as outlined in the CAPS document
• Activities.
There is a revision section at the end of each term which learners
can use to revise the terms’ work in preparation for the controlled
tests at the end of Terms 1 and 3, and the mid-year and end-of-year
examinations at the end of Terms 2 and 4.

Formal assessment opportunities are included in the Learner’s Book


where appropriate:

4 INTRODUCTION

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• Examination practice papers appear at the end of Terms 2 and 4
for the mid-year and end-of-year examinations.
• The actual end-of-year examination paper and marking
memorandum appears in the Resources section of this
Teacher’s Guide.
• The two controlled tests and their marking memorandums appear
at the end of Terms 2 and 4 in Section 2 of this Teacher’s Guide.

Teacher’s Guide
The Teacher’s Guide provides information and guidance on:
• Economic and Management Sciences as a subject (Section 1)
• planning for the Grade 9 year and lesson-by-lesson guidance,
including tips to cover resources, a list of new words and
concepts, and preparation required prior to teaching the topic
(Sections 1 and 2)
• suggested answers for all activities in the Learner’s Book
(Section 2). Please note that the answers given are guidelines only.
You should encourage creative and critical thinking from learners,
wherever appropriate.
• informal assessment suggestions (Section 2)
• consolidation (remedial) and extension activity suggestions
(Section 2)
• controlled tests and marking memorandums (Section 2)
• a Programme of Assessment (Section 3)
• guidance on the assessment of all Formal Assessment Tasks
(Section 3)
• marking memorandums for all Formal Assessment Tasks (Section 3)
• recording and reporting of formal assessment (Section 3)
• end-of-year examination paper and marking memorandum
(Section 4) and the memorandums for the Learner’s Book
examination practice papers (Section 2)

Section 2 mirrors the Learner’s Book and is divided into terms.

You will see these icons next to the activities in the Learner’s Book
and Teacher’s Guide. This is what the icons mean:

These icons mean


work alone

work in pairs

group work

class work

INTRODUCTION 5

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Inclusivity
An important part of teaching is to accommodate all learners,
including those who experience barriers to learning. Study & Master
Economic and Management Sciences takes into account that learners
come from different backgrounds and have different abilities. So it
offers learning material that learners can relate to while extending
their learning and experiences. There are a variety of types of activities
– activities that appeal to learners of all levels and backgrounds, and
that offer opportunities to work individually, in pairs, in groups or
as a whole class. This Teacher’s Guide also provides consolidation
(remedial) and extension activities for each topic, which teachers need
when they have to manage a class of diverse learners.

Section 4 (Resources) also provides templates for learners, a


PowerPoint CD and a list of useful reading material and Internet
resources that you can use to further your own knowledge within the
Economic and Management Sciences curriculum.

6 INTRODUCTION

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EMS 9 TG (ENG).indb 7
4. Grade 9 Annual Teaching Plan
The table below indicates how Study & Master Economic and
Management Sciences Grade 9 covers all requirements of the CAPS for
Economic and Management Sciences and how it is intended for use in
each of the 40 weeks in the school year. It is compulsory to complete
all the topics as indicated in the Annual Teaching Plan. When
teaching these topics, the context of the school should be considered.

TERM 1

Week Economic and Management Topic Topic title No. of Economic and Management Sciences Resources
(2 hours Sciences topic no. hours CAPS content
per week)
1 Revision 1 Looking back, 2 • Revise Grade 8 work Textbook, mind maps
looking ahead • Give learners an overview of what will
be taught during the first term
2—4 Financial literacy 2 Cash Receipts 3 • Cash transactions of a trading business Textbook, relevant exercise
(1 hour per Journal and Cash • Effect of cash transactions on the books and templates,
week) Payments Journal accounting equation calculator (if possible)
(sole trader)
2—4 The economy 3 Economic systems 3 • The three major economic systems Textbook, relevant
(1 hour per • A planned economy, market economy newspaper and magazine
week) and mixed economy and Internet articles;
• Origin of each system information on the global
• Advantages and disadvantages of each economy and different
economic system economic systems
• Characteristics of each economic
system

INTRODUCTION
• The global economy

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8

EMS 9 TG (ENG).indb 8
Week Economic and Management Topic Topic title No. of Economic and Management Sciences Resources
(2 hours Sciences topic no. hours CAPS content
per week)
5—10 Financial literacy 4 General Ledger and 6 • Posting of cash transactions of a trading Textbook, relevant exercise
(1 hour per Trial Balance (sole business from Cash Receipts Journal books and templates,
week) trader) (CRJ) and Cash Payments Journal (CPJ) calculator (if possible)
to General Ledger
• Preparing of a Trial Balance of a trading

INTRODUCTION
business
5—10 The economy 5 Circular flow 6 • The participants in the circular flow of a Textbook, relevant exercise
(1 hour per closed economy books and templates,
week) • Flow of goods and services, money and calculator (if possible)
factors of production in the circular flow
of a closed economy
• Illustrate by using a flow diagram
10 Revision Term 1 Revise all work covered during this term Textbook
Formal assessment:
1. Assignment (40%)
2. Controlled test (60%) (must include all topics covered in Term 1)

TERM 2
Week Economic and Management Topic Topic title No. of Economic and Management Sciences Resources
(2 hours Sciences topic no. hours CAPS content
per week)
1 Revision 6 Looking back, 2 • Revise the work covered in the first Textbook, mind maps
looking ahead term
• Give learners an overview of what will
be taught during the second term

6/5/13 6:22:31 PM
Week Economic and Management Topic Topic title No. of Economic and Management Sciences Resources
(2 hours Sciences topic no. hours CAPS content

EMS 9 TG (ENG).indb 9
per week)
2—7 Financial literacy 7 Credit transactions: 6 • Credit sales Textbook, relevant exercise
(1 hour per Debtors (1) • Debtors books and templates,
week) • National Credit Act calculator (if possible)
• Debtors allowance
• Accounting cycle
• Recording of transactions to Debtors
Journal (DJ)
• Recording of receipts from debtors in
the Cash Receipts Journal (CRJ)
2—7 The economy 8 Price theory 6 • Law of demand, demand schedule and Textbook, relevant
(1 hour per graphical illustration of the demand newspaper and magazine
week) curve and Internet articles,
• Law of supply, supply schedule and newsprint sheets,
graphical illustration of the supply curve old magazines and
• Equilibrium price and quantity newspapers, examples of
• Change in quantity demanded relevant adverts
• Change in quantity supplied
• Increase and decrease in demand
• Increase and decrease in supply
• Graphical illustration of the change in
demand and the change in supply
8—9 Entrepreneurship 9 Sectors of the 4 • The primary sector, the secondary Textbook, relevant
economy sector, the tertiary sector newspaper and magazine
• Types of businesses found in the three and Internet articles,
sectors examples of local
• The interrelationship of the three businesses and different
sectors jobs
• Sustainable use of resources in the
three sectors
• The role of the three sectors in the
economy
• Types of skills required in each sector

INTRODUCTION
10 Revision Term 2 Revise all work covered during this term Textbook
10 Mid-year examination (must be based on the work covered in Terms 1–2)

9
Formal assessment:
1. Data response (40%)
2. Mid-year examination (60%)

6/5/13 6:22:31 PM
TERM 3

10

EMS 9 TG (ENG).indb 10
Week Economic and Management Topic Topic title No. of Economic and Management Sciences Resources
(2 hours Sciences topic no. hours CAPS content
per week)
1 Revision 10 Looking back, 2 • Revise the work covered in the second Textbook, mind maps
looking ahead term
• Give learners an overview of what will

INTRODUCTION
be taught during the third term
2—5 The economy 11 Trade unions 4 • Concept of trade unions Textbook, relevant
(1 hour per • Brief historical development of trade newspaper and magazine
week) unions and Internet articles,
• The roles and responsibilities of trade newsprint (scissors, glue,
unions in South Africa coloured pens), local and
• Effect of trade unions in businesses international information
• Contribution of trade unions to on trade unions and
sustainable growth and development industrial action
2—5 Financial literacy 12 Credit transactions: 4 • Posting to the Debtors Ledger and Textbook, relevant exercise
(1 hour per Debtors (2) General Ledger books and templates,
week) • Effect of credit transactions on the calculator (if possible)
accounting equation
6—8 Financial literacy 13 Credit transactions: 3 • Creditors Textbook, relevant exercise
(1 hour per Creditors (1) • Creditors allowance books and templates,
week) • Accounting cycle calculator (if possible)
• Recording of transactions in the
Creditors Journal (CJ)
6—8 Entrepreneurship 14 Functions of a 3 • Functions of a business: administration, Textbook, relevant
(1 hour per business purchasing, marketing, finances, public newspaper and magazine
week) relations, human resources, production, and Internet articles, local
general management, and risk businessperson/speaker to
management visit
• Characteristics of the business
functions
• Role and importance of the business
functions

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EMS 9 TG (ENG).indb 11
Week Economic and Management Topic Topic title No. of Economic and Management Sciences Resources
(2 hours Sciences topic no. hours CAPS content
per week)
9—10 Financial literacy 15 Credit transactions: 4 • Recording of payments to creditors in Textbook, relevant exercise
Creditors (2) the Cash Payments Journal (CPJ) books and templates,
• Posting to the Creditors Ledger and calculator (if possible)
General Ledger
• Effect of credit transactions on the
accounting equation
10 Revision Term 3 Revise all work covered during this term Textbook
Formal assessment:
1. Project (40%)
2. Controlled test (60%) (must include all topics covered in Term 3)

TERM 4
Week Economic and Management Topic Topic title No. of Economic and Management Sciences Resources
(2 hours Sciences topic no. hours CAPS content
per week)
1 Revision 16 Looking back, 2 • Revise the work covered in the third Textbook, mind maps
looking ahead term
• Give learners an overview of what will
be taught during the fourth term
2—7 Financial literacy 17 Transactions: Cash 6 • Recording of cash and credit Textbook, relevant exercise
(1 hour per and credit transactions of a sole trader in the books and templates,
week) subsidiary journals calculator (if possible)
• Posting to the Debtors Journal (DJ),
Creditors Journal (CJ) and General

INTRODUCTION
Ledger
• Preparing of a trial balance

11

6/5/13 6:22:31 PM
12
Week Economic and Management Topic Topic title No. of Economic and Management Sciences Resources

EMS 9 TG (ENG).indb 12
(2 hours Sciences topic no. hours CAPS content
per week)
2—7 Entrepreneurship 18 Business plan 6 • Concept of a business plan Textbook, relevant
(1 hour per • Components of a business plan newspaper and magazine
week) • Format of a business plan [the front and Internet articles,
cover, table of contents, description sample business plans
of the product or services offered by from banks, examples of

INTRODUCTION
the business, goals of the business, business plans and vision
the business owner, production statements from local and
plan, marketing plan, management other businesses
plan, SWOT (strengths, weaknesses,
opportunities, threats) analysis and
conclusion]
• Financial plan (fixed and variable costs,
break-even points, mark-up on sales,
profit percentage)
8—9 Revision Term 4 Revise all work covered during this term Textbook
8—9 Examination preparations 4 • Revise the work covered throughout the Textbook, mind maps
year
• Study techniques
• Examination writing skills
10 End–of–year examination (must include all topics covered in Terms 1—4)
Formal assessment:
1. End-of-year examination

6/5/13 6:22:31 PM
2. Lesson by lesson
This section contains teaching notes for the topics in the Learner’s
Book; answers to all the activities; informal assessment suggestions;
consolidation (remedial) and extension activity suggestions and
revision activities.

Term 1 14
Formal Assessment Task 1: Assignment
(see Section 3)

Term 2 91
Formal Assessment Task 2: Data response
(see Section 3)

Term 3 126
Formal Assessment Task 3: Project
(see Section 3)

Term 4 199

13

EMS 9 TG (ENG).indb 13 6/5/13 6:22:31 PM


TERM 1

Topic
UnitLooking
Discover
1 back,
your looking
strengths
ahead
1 Learner’s Book pages 2—5
xx—xx Duration:
Duration 2 hours

Term and week/s


Curriculum and Assessment Policy Statement
Term 1, Week 1 (CAPS) content
In this topic, learners will:
• revise what they learnt in Grade 8
• get a brief glimpse of what they will learn in Term 1
Teaching the topic
• This is an opportunity to consolidate what the learners learnt
in the previous grade. If learners are still struggling with some
concepts, give them additional activities or revision activities to
do. Those who understand the work well can help those who
are struggling.
• Encourage learners to draw mind maps (similar to those drawn in
this topic) to revise what they learnt in the previous year.
• Once you are comfortable that learners understand the content so
far, you may continue with the overview of the new term.
• When revising the new term, do not go into too much detail –
you need spend no more than 10–15 minutes on the overview.
• Mention to the learners that they may use the overview mind
map provided, and add their own notes during the term so that
they have a complete mind map of the term’s work by the end of
the term.

14 LESSON BY LESSON  TERM 1

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Topic Cash Receipts Journal and Cash
Payments Journal (sole trader)
2 Learner’s Book pages 6—18 Duration: 3 hours

Term and week/s Curriculum and Assessment Policy Statement


Term 1, Weeks 2–4 (CAPS) content
New words In this topic, learners will learn about FINANCIAL LITERACY.
and concepts They will look at:
trading business;
profit mark-up;
• cash transactions of a trading business
trading stock; cost • the effect of cash transactions on the accounting equation
of sales; selling
price; cost price Resources
Learners must each have an exercise book called an ‘Eight money
column’ or ‘Cash money column’. Exercise books are also required
for the calculations of cost price, selling price and profit margins, as
well as for completing the accounting equations. Photocopy the Cash
Receipts Journal and Cash Payments Journal templates found at the
end of this guide if necessary.

A calculator for each learner is essential.

Preparation
• Read through the topic and familiarise yourself with the content
that you will need to teach. Think about what learners may
already know about the topics, what skills they already have and
any areas of difficulty that you think they might encounter.
• Explaining percentages can be difficult to master. Ensure that
you have fully understood the content before explaining it to the
learners. Ask the Mathematics teacher at your school for help if
you are struggling with the concepts.

Teaching the topic


There are 3 lessons in this topic.
Lesson Week Pages Activities
2 2 15—16 2.1—2.4
3 3 16—18 2.5
4 4 18 2.6—2.8

Lesson 2
• Refer learners to the illustration of the trading business in
Figure 2.1 of the Learner’s Book. Discuss the two different types
of businesses and explain why this is a trading business. Learners
may be familiar with trading businesses from their Entrepreneur’s
Day efforts.

LESSON BY LESSON  TERM 1 15

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• Explain the different concepts detailed in the Learner’s Book page 7.
• Work through the example of Tabana Wood and explain how to
calculate the selling price of trading stock.
• Do Activity 2.1.
• Explain how to calculate the cost price or cost of sales of goods.
• Do Activity 2.2.
• Work through the example of Tabana Wood and explain how to
calculate the profit mark-up or profit margin or percentage.
• Do Activity 2.3.
• Another good way to explain all percentage calculations, is
according to this calculation principle, giving the formula first
each time:
– What I WANT is placed at the top and the other values that I
HAVE are placed diagonally ACROSS from each other.
– So, if you want to calculate the selling price for the first
Tabana Wood example in the Learner’s Book page 8, you
place that above the line (115%) and the values that you have
(100 → 185) diagonally across from each other:
​ 185 ​  = R212,75
​ 115 ​ × ____
____
100 1
– If you want to calculate the cost price in the next example
in the Learner’s Book page 9, you place it above the line
(100%) and the values that you have (133​ __13 ​→ 330)
diagonally across from each other:
_____ ​ 330
​  100  ​ × ____  ​  = R247,50
133​ __  ​ 1
1
3
– Remember that __​ 13  ​is 1 divided by 3 which equals
0.3333333. So, on your calculater it will be 100 divided
by 133.3333333 multiplied by 330 = R247,50.
– And if you want to calculate the profit percentage in the last
Tabana Wood example, you will place the profit made above
the line (R400) and the values that you have (1 600 → 100)
diagonally across from each other:
​  400  ​ 
_____ ​ 100
× ____  ​  = 25%
1 600 1
• Do Activity 2.4.
• Learners do this activity for homework.

Lesson 3
• Discuss the example of the CPJ for Abel Dealers in the Learner’s
Book page 12. Explain that every time you buy goods with the
intention of selling them again, you enter these transactions in the
Trading stock column.
• Discuss the example of the CRJ for Abel Dealers in the Learner’s
Book page 13.
• Explain each transaction as follows:
15 May: The source document will be a cash register roll, so
we write only Sales in the Details column. The Sales amount of
R1 240 (R620 × 2) will appear in the Analysis of receipts and

16 LESSON BY LESSON  TERM 1

EMS 9 TG (ENG).indb 16 6/5/13 6:22:31 PM


Sales columns. Show learners how to calculate the cost price and
enter this in the Cost of sales column: In the transaction on the
14th in the CPJ above, learners see that one garden bench costs
R400. So, the cost price will be R800 (R400 × 2).
25 May: The cost price of the three garden chairs will first be
entered in the Cost of sales column, R339 (R113 × 3). Then
calculate the selling price and enter it in the Analysis of receipts
and in the Sales columns, R593,25 (R339 × ___ ​ 175
100
  ​).
30 May: The Sales amount of R3 315 will appear in the Analysis
of receipts and Sales columns. The cost price of R2 275 will
appear in the Cost of sales column. All of these transactions are
the only transactions for their specific days, so those amounts
appear individually in the Bank column as well.
• Do Activity 2.5.
• Remind learners about the guidelines for the CRJ and the CPJ again.
– It is important that you refer often to the fact that the CRJ is
for RECEIPTS and the CPJ for PAYMENTS.
– In the CRJ, each transaction is recorded in the Analysis of
receipts column, except when the transaction indicates that
the money is deposited directly into the bank.
– In the CRJ, each amount is deposited or banked daily
(entered in the Bank column). When there is more than one
transaction on the same day, all the transactions of that day
are added together, a line is drawn below the last amount and
the total is entered in the Bank column.
– In the CPJ, each transaction (each cheque number) is
recorded in the Bank column. So, each cheque number
should show an amount in the Bank column. After that the
transaction is allocated to a specific column. If there isn’t
a specific column for it, then it is allocated to the Sundry
accounts column.
– In the CRJ and CPJ, the transaction is allocated to a specific
column such as Sales or Trading stock. If there isn’t a specific
column for it, then it is allocated to the Sundry accounts column.
– The number of analysis columns for which provision must be
made in the CRJ and the CPJ depends on the requirements of
each individual business and is determined by the nature and
type of business.
– Provision is always made for Sundry accounts because it is not
possible to provide individual analysis columns for every type
of receipt or payment.
– Details column of the CRJ: The name of the person or
business appears in this column if a receipt is issued, otherwise
we write the details of the transaction such as Services
rendered or Sales.
– Name of payee column of the CPJ: The name of the person or
business to which the cheque is issued appears in this column.
When a cheque is issued for Wages or Cash float, it is always
issued as Cash.

LESSON BY LESSON  TERM 1 17

EMS 9 TG (ENG).indb 17 6/5/13 6:22:31 PM


– Cross-checking in the CRJ: The total of the Bank column
must be equal to the total of the analysis columns (Cost of
sales is EXCLUDED) plus the total of Sundry accounts. Cost
of sales is NOT added because there is NO cash involved.
– Cross-checking in the CPJ: The total of the Bank column
must be equal to the total of the analysis columns plus the
total of Sundry accounts.

Lesson 4
• Do examples 1 and 2 in the Learner’s Book pages 14–15 to
explain the effect in the General Ledger when stock is purchased
for cash, using the terms account debited and account credited.
Ask questions such as why Trading Stock is debited (because it is
an Asset that has increased) and why Bank is credited (because it is
an Asset that has decreased).
• Do Activity 2.6.
• Do the example in the Learner’s Book pages 15–17 to explain how
to complete the accounting equation when stock is sold for cash.
– Step 1: Explain that the trading stock on shelves decreases,
so the effect on the accounting equation is that trading stock
decreases.
– Step 2: Explain that the selling price of the goods increases the
money in the bank, therefore cash increases.
– Step 3: Explain that the selling price (sales) increases Owner’s
equity and the cost price (cost of sales) decreases Owner’s
equity. We show only the net effect (profit earned) on the
Owner’s equity.
• Do Activities 2.7 and 2.8.

Answers
Activity 2.1
Middle order (10)
No. Cost price (R) Profit % Selling price (R)
1. 720,00 40 ✔✔ R1 008
2. 300,00 65 ✔✔ R495
3. 440,00 35 ✔✔ R594
4. 380,00 9 ✔✔ R414,20
5. 720,00 60 ✔✔ R1 152

Assist learners who struggle with this activity. They must understand
these basic calculations before progressing. Ensure that learners
understand how to use their calculators, as different calculators work
differently.

18 LESSON BY LESSON  TERM 1

EMS 9 TG (ENG).indb 18 6/5/13 6:22:31 PM


Activity 2.2
Middle order (10)
No. Selling price (R) Profit % Cost price (R)
1. 960,00 50 ✔✔ R640
2. 1 050,00 5 ✔✔ R1 000
3. 237,50 25 ✔✔ R190
4. 880,00 10 ✔✔ R800
1
5. 390,00 33​ __
3
 ​  ✔✔ R292,50

Assist learners who struggle with this activity. Remind them that the
​ 1  ​is typed in as 0.3 with the three repeated as many times as
fraction __
3
their calculator can accommodate. Allow them to do the calculation
of 1 divided by 3 themselves, to see the answer.

Show them, for example, that __ ​ 2 ​  is a repeated fraction and needs to be
3
typed in as 0.6 with as many sixes as their calculator can accommodate.
Allow them to type in 2 divided by 3 to see the answer for themselves.

Activity 2.3
Middle order (10)
No. Cost price (R) Selling price (R) Profit %
1. 235,00 340,75 ✔✔ 45%
1
2. 996,00 1 328,00 ✔✔ 33​ __
3  ​%
3. 654,00 735,75 ✔✔ 12,5%
4. 1 265,00 2 125,20 ✔✔ 68%
5. 645,00 993,30 ✔✔ 54%

Activity 2.4
Middle and Higher order (30)

No. Cost price Profit % Selling price Profit amount


1. R953,00 ✔ 50 ✔ R1 429,50 R476,50
2. R1 156,00 ✔ 15 ✔ R1 329,40 ✔ R173,40
3. ✔ R7 768,00 ✔ 35 R10 486,80 ✔ R2 718,80
4. R357,00 ✔ 20 ✔ R428,40 ✔ R71,40
5. ✔ R12 560,00 ✔ 25 R15 700,00 ✔ R3 140,00
6. R444,00 ✔ 45 R643,80 ✔ R199,80
7. ✔ R8 860,00 ✔ 74 R15 416,40 R 6 556,40
8. ✔ R15 850,00 ✔ 15 R18 227,50 R2 377,50
9. R14 450,00 ✔ 23 ✔ R17 773,50 R3 323,50
1
10. R12 555,00 ✔ 33​ __
3 ​  R16 740,00 ✔ R4 185,00
2
11. ✔ R88 500,00 ✔ 66​ __
3​  R147 500,00 ✔ R59 000,00
12. ✔ R65 345,00 ✔ 65 R107 819,25 ✔ R42 474,25

LESSON BY LESSON  TERM 1 19

EMS 9 TG (ENG).indb 19 6/5/13 6:22:32 PM


Activity 2.5
Middle order (55)

Cash Receipts Journal of Bubble Soap Shop for July 2017 CRJ2
Doc. Day Details Fol. Analysis of Bank Sales Cost of Sundry accounts
no. receipts sales
Amount Fol. Details

12 01 K Oppelt ✔✔ 19 500 00 ✔ 19 500 00 Capital ✔


CRR Sales ✔ 1 599 00 ✔ 21 099 00 ✔ 1 599 00 ✔ 1 066 00
Rent
13 19 M Salie ✔ 1 780 00 ✔ 1 780 00 income ✔
CRR Sales ✔ 2 337 00 ✔ 4 117 00 ✔ 2 337 00 ✔ 1 558 00

14 30 K Oppelt ✔ 5 500 00 ✔ 5 500 00 Capital ✔


CRR Sales ✔ 8 835 00 ✔ 14 335 00 ✔ 8 835 00 ✔ 5 890 00
✔ 39 551 00 12 771 00 8 514 00 ✔ 26 780 00 (24)

Cash Payments Journal of Bubble Soap Shop for July 2017 CPJ2
Doc. Day Name of Fol. Bank Trading stock Wages Packing Sundry accounts
no. payee material
Amount Fol. Details
Clean-as-
51 03 Whistle ✔ 2 300 00 ✔✔ 2 223 00 ✔ 77 00
Longland
52 06 Traders ✔ 4 108 00 ✔ 4 070 00 Equipment ✔

✔ 38 00 Stationery ✔
53 07 Cash ✔ 620 00 ✔ 620 00
54 10 Corbin Shop ✔ 1 225 00 ✔ 1 225 00

55 13 Kearns Shop ✔ 423 00 ✔ 299 00 ✔ 124 00 Stationery ✔


56 14 Cash ✔ 620 00 ✔ 620 00

57 21 Telkom ✔ 348 00 ✔ 348 00 Telephone ✔


City Water and
58 22 Treasurer ✔ 1 041 00 ✔ 595 00 electricity ✔

✔ 446 00 Drawings ✔
59 28 Cash ✔ 1 240 00 ✔ 1 240 00
✔ 11 925 00 3 448 00 2 480 00 376 00 ✔ 5 621 00 (31)

Calculation for capital contribution increase: R195 000 × 10% =


R19 500
Explain how to calculate cash discount. If learners have a scientific
calculator, they can calculate the answer just by entering R2 340 – 5%
and the answer (R2 223) will appear. Using an ordinary calculator
they first have to calculate the 5%: R2 340 × 5% = R117. Then the
answer is subtracted: R2 340 – R117 = R2 223.

20 LESSON BY LESSON  TERM 1

EMS 9 TG (ENG).indb 20 6/5/13 6:22:32 PM


Activity 2.6
Middle order (12)

No. General Ledger Assets Owner’s Equity


Account Account Effect Reason Effect Reason
debited credited
1. Trading Bank ✔ ✔—2 400 Cash decreases
stock ✔ ✔
✔ +2 400 Trading stock
increases ✔
2. Trading Bank ✔ ✔—1 450 Cash decreases
stock ✔ ✔
✔ +1 450 Trading stock
increases ✔

Activity 2.7
Middle order (20)

No. General Ledger Assets Owner’s Equity


Account Account Effect Reason Effect Reason
debited credited
1. Bank ✔ Sales ✔ ✔ +230 Cash increases ✔ ✔ +130 Profit earned ✔
Cost of sales Trading ✔ —100 Trading stock
✔ stock ✔ decreases ✔
2. Bank ✔ Sales ✔ ✔ +368 Cash increases ✔ ✔ +138 Profit earned ✔
Cost of sales Trading ✔ —230 Trading stock
✔ stock ✔ decreases ✔

Activity 2.8
Middle order (63)

General Ledger Assets Owner’s Equity


Date Account Account Effect Reason Effect Reason
debited credited
01 Bank ✔ Capital ✔ ✔ +17 000 Cash increases ✔ ✔ +17 000 Capital
contribution

Bank ✔ Sales ✔ ✔ +1 340 Cash increases ✔ ✔ +268 Profit earned
Cost of sales Trading ✔ —1 072 Trading stock
✔ stock ✔ decreases ✔
04 Equipment Bank ✔ ✔ —4 778 Cash decreases ✔
✔ ✔ +4 778 Equipment
increases ✔
17 Stationery ✔ Bank ✔ ✔ —77 Cash decreases ✔ ✔ —77 Stationery —
expense ✔
Trading Bank ✔ ✔ —2 546 Cash decreases ✔
stock ✔ ✔ +2 546 Trading stock
increases ✔
21 Drawings ✔ Bank ✔ ✔ —570 Cash decreases ✔ ✔ —570 Drawings by
the owner ✔

LESSON BY LESSON  TERM 1 21

EMS 9 TG (ENG).indb 21 6/5/13 6:22:32 PM


General Ledger Assets Owner’s Equity
No. Account Account Effect Reason Effect Reason
debited credited
26 Bank ✔ Rent income ✔ +1 110 Cash increases ✔ ✔ +1 110 Rent income
✔ ✔
Bank ✔ Sales ✔ ✔ +2 550 Cash increases ✔ ✔ +510 Profit earned

Cost of sales Trading ✔ —2 040 Trading stock
✔ stock ✔ decreases ✔
29 Telephone ✔ Bank ✔ ✔ —833 Cash decreases ✔ —421 Telephone —
expense ✔
Water and Bank ✔ —412 Water and
electricity ✔ electricity —
expense ✔

For information Informal assessment


on Informal
assessment, refer to Activities 2.1—2.3: Learners do the activities on the board. You
the self-assessment, work through their calculations and correct any mistakes so that
peer assessment and they can mark their homework correctly.  (30)
group assessment
templates in Activity 2.4: Learners mark their own work or that of a partner.
Section 5 of this Ask one learner at a time to call out the answer or to fill in the
Teacher’s Guide. answer on the board and the other learners mark the answers.  (30)

Activity 2.5: Do the activity on the board, working through


each transaction and showing learners clearly how each is done.
Learners mark their own work.  (55)

Activities 2.6—2.8: Do all the activities on the board and


explain each transaction again. Ask learners each time whether
Assets or Owners’ equity is affected and whether they will debit or
credit an account, giving reasons. Learners check and mark their
own work.  (95)

Consolidation
• Mr J P Ras is the owner of Roto Traders. The business uses a
constant mark-up of 40% on cost price.

Required
• Record the transactions for February in the Cash Receipts Journal
and Cash Payments Journal.
• Provide the following columns in the cash journals:
– CRJ2: Analysis of receipts, Bank, Sales, Cost of sales, and
Sundry accounts
– CPJ2: Bank, Trading stock, Wages and Sundry accounts
• Complete the transactions of the 3rd, 17th, 21st and 28th
according to the example below.

22 LESSON BY LESSON  TERM 1

EMS 9 TG (ENG).indb 22 6/5/13 6:22:32 PM


Example: Paid the telephone account at Grocery Garden, R312.

No. Account Account Assets Owner’s Equity


debited credited Effect Reason Effect Reason
e.g. Telephone Bank —R312 Cash decreases —R312 Telephone —
expense

Transactions for February 2019


01 Roto Traders rents a building from Dahli Buildings for R41 520 a
year. Paid the rent for February with cheque no. 121.
03 Purchased merchandise from Shop Nina for R9 780.
09 Cash sales according to the cash register roll, R6 384.
Received R7 750 from the owner to increase his capital
contribution. Issued receipt no. 24 to him.
14 Paid the two-weekly wages of R1 380.
17 Cost price of goods sold for the day amounted to R3 225.
21 Issued a cheque for R13 464 to Regal Traders for goods, R12 885,
and the rest for stationery bought.
23 Cash sales for the day, R1 330.
25 Paid the business telephone account, R587, and the water and
electricity of R776 at the municipality.
26 Purchased cupboards and chairs from Wellman Suppliers to use in
business, R3 114.
28 Wages paid for the past two weeks. Workers received a 10% increase.
Received R655 for the room that Sive Stores rents.
Cash sales for the day with a cost price of R6 455.
Cash Receipts Journal of Roto Traders for February 2019 CRJ2
Doc. Day Details Fol. Analysis of Bank Sales Cost of Sundry accounts
no. receipts sales Amount Fol. Details
CRR 09 Sales 6 384 00 6 384 00 4 560 00
24 J P Ras 7 750 00 14 134 00 7 750 00 Capital
CRR 17 Sales 4 515 00 4 515 00 4 515 00 3 225 00
CRR 23 Sales 1 330 00 1 330 00 1 330 00 950 00
Rent
25 28 Sive Stores 655 00 655 00 income
CRR Sales 9 037 00 9 692 00 9 037 00 6 455 00
29 671 00 21 266 00 15 190 00 8 405 00

Cash Payments Journal of Roto Traders for February 2019 CPJ2


Doc. Day Name of payee Fol. Bank Trading Wages Sundry accounts
no. stock Amount Fol. Details
121 01 Dahli Buildings 3 460 00 3460 00 Rent expense
122 03 Shop Nina 9 780 00 9 780 00
123 14 Cash 1 380 00 1 380 00
124 21 Regal Traders 13 464 00 12 885 00 579 00 Stationery
125 25 Municipality 1 363 00 587 00 Telephone
Water and
776 00 electricity
126 26 Wellman Suppliers 3 114 00 3 114 00 Equipment
127 28 Cash 1 518 00 1 518 00
34 079 00 22 665 00 2 898 00 8 516 00

LESSON BY LESSON  TERM 1 23

EMS 9 TG (ENG).indb 23 6/5/13 6:22:33 PM


No. Account Account Assets Owner’s Equity
debited credited Effect Reason Effect Reason
03 Trading stock Bank —9 780 Cash decreases
+9 780 Trading stock
increases
17 Bank Sales +4 515 Cash increases +1 290 Profit earned
Cost of sales Trading stock —3 225 Trading stock
decreases
21 Trading stock Bank —13 464 Cash decreases —579 Stationery —
expense
Stationery Bank +12 885 Trading stock
increases
28 Wages Bank —1 518 Cash decreases —1 518 Wages —
expense
Bank Rent income +655 Cash increases +655 Rent income
Bank Sales +9 037 Cash increases +2 582 Profit earned
Cost of sales Trading stock —6 455 Trading stock
decreases

Extension
• Show the following calculations.
1. Merchandise with a cost price of R2 225 is sold. Calculate the
selling price if the profit margin is 13%.
R 2 225 ?
% 100 13 113

113 ​ = R2 514,25
R2 225 × ​ ____
100
2. Issued a cheque to the City Treasurer for R1 041. It is for
the business’s water and electricity of R595 and the rest is for
the owner’s water and electricity. Calculate the amount
of drawings.
R1 041 – R595 = R446
3. Sold goods for R4 184,05. Calculate the cost price if the profit
margin is 57%.
R ? 4 184,05
% 100 57 157

100 ​ = R2 665
R4 184,05 × ​ ____
157
4. Paid the owner’s personal telephone account, R212, as well
as the business’s telephone account of R532. Calculate the
amount of the cheque.
R212 + R532 = R744
5. Calculate the cost price of goods sold for R11 272,69 with a
profit percentage of 43%.
R ? 11 272,69
% 100 43 143

100 ​ = R7 883
R11 272,69 × ​ ____
143

24 LESSON BY LESSON  TERM 1

EMS 9 TG (ENG).indb 24 6/5/13 6:22:33 PM


6. The Trial Balance shows the following balances:
Sales R90 400; Cost of sales R67 800
Merchandise with a selling price of R18 088 is sold. Calculate
the cost price.
22 600 ​ 
R90 400 – R67 800 = R22 600; ​ ______ 1 ​ %
× 100 = 33​ __
67 800 3
R18 088 × _____​  100  ​ = R13 566
1  ​
133​ __
3
7. Calculate the profit margin if the selling price is R5 946,88
and the cost price is R4 646.
R5 946,88 – R4 646 = R1 300,88
R1 300,88
​ _________  ​ 
 × 100 = 28%
R4 646
8. Workers received a 10% increase on their wages of R1 130.
Calculate the amount received by the workers now.
R1 130 + 10% = R1 243
9. Stock with a cost price of R3 559 is sold at a profit margin of
29%. Calculate the sales amount.
129 ​ = R4 591,11
R3 559 × ​ ____
100
10. Issued a cheque for goods, R2 340 less 5% cash discount, and
packing material, R77. Calculate the cheque amount.
R2 340 – 5% = R2 223; R2 223 + R77 = R2 300
11. The Trial Balance shows the following balances:
Sales R26 289,64; Cost of sales R15 556
Merchandise with a selling price of R24 420,50 is sold.
Calculate the cost price (cost of sales).
R26 289,64 – R15 556 = R10 733,64
10 733,64
​ _________  ​ 
 × 100 = 69%
15 556
R24 420,50 × ​ ____100 ​ = R14 450
169
12. Paid the business’s telephone account, R587, and the water
and electricity of R776. Calculate the amount payable.
R587 + R776 = R1 363
13. The owner increased his capital by 17% to R140 985.
Calculate the capital increase.
17  ​ × R140 985 = R20 485
​ ____
117
14. A building is rented for R41 604 per year. Calculate the rent
for one month.
R41 604
​ _______  ​ 
 = R3 467
12
15. Bought stock for R13 456 and received cash discount of
12,5%. Calculate the amount payable.
R13 456 – 12,5% = R11 774
16. The Trial Balance shows the following balance:
Capital R315 600
The owner increased his capital contribution to R470 000.
Calculate the amount that should be entered in the CRJ.
R470 000 – R315 600 = R154 400

LESSON BY LESSON  TERM 1 25

EMS 9 TG (ENG).indb 25 6/5/13 6:22:33 PM


17. Issued a cheque for R655. It is to pay for the business’s water
and electricity account, R424, as well as for the owner’s water
and electricity account. Calculate the drawings amount.
R655 – R424 = R231
18. The Trial Balance shows the following balances:
Sales R71 882,60; Cost of sales R33 590
Merchandise with a cost price of R11 652 is sold. Calculate the
selling price.
R71 882,60 – R33 590 = R38 292,60
38 292,60
​ _________  ​ 
 × 100 = 114%
33 590
214 ​ = R24 935,28
R11 652 × ​ ____
100
19. Purchased the following and paid R423 by cheque: packing
material, R299, and the rest was for stationery. Calculate the
amount of stationery purchased.
R423 – R299 = R124
20. The owner increased his capital by 13,5% to R176 833.
Calculate the capital increase.
​  13,5  ​ 
R176 833 × _____ = R21 033
113,5

Topic
UnitEconomic
1 systems
3 Learner’s Book pages 19—28 Duration: 3 hours

Term and week/s


Curriculum and Assessment Policy Statement
Term 1, Weeks 2–4 (CAPS) content
New words In this topic, learners will learn about THE ECONOMY. They will
and concepts look at:
planned economy; • The three major economic systems:
market economy;
mixed economy
– planned economy
– market economy
– mixed economy
• Origin of each economic system
• Advantages and disadvantages of each economic system
• Characteristics of each economic system
• The global economy
Resources
Do research continuously throughout the year to source newspaper
and magazine articles about EMS. Briefly explore this year’s content
and collect articles on all of the topics as you come across them
through the year. Use articles you find later in the year about content
you covered earlier in the year as revision.

26 LESSON BY LESSON  TERM 1

EMS 9 TG (ENG).indb 26 6/5/13 6:22:33 PM


For this topic, gather news articles from newspapers, magazines and
the Internet about the different types of economic systems. Try to find
articles about planned economies such as North Korea, Burma and
Cuba and about the former Soviet Union.

Find articles about the global economy. News articles about how
economic changes in one part of the world affect other parts of the
world would be excellent resources for this topic. Articles about the
effects of the 2007–2008 global financial crisis would also be helpful.

Information and news articles about the leading emerging economies


of Brazil, Russia, India, China and South Africa (the BRICS
countries) would add value to your teaching.

Preparation
• Read through the topic and familiarise yourself with the content
that you will need to teach. Think about what learners may
already know about the topics, what skills they already have and
any areas of difficulty that you think they might encounter.
• Gather your resources and plan how you will integrate them into
your teaching.
• Decide whether you want to set Activity 3.1 as homework or as a
class-time activity.

Teaching the topic


There are 3 lessons in this topic.
Lesson Week Pages Activities
2 2 27—28 3.1
3 3 28 —
4 4 28—29 3.2—3.3

Lesson 2
• Start by having a class discussion about wanting things that are
unavailable because there is a high demand for them. Learners can
give examples of goods and services that they have really wanted,
but have been unable to buy or find because so many other people
wanted them too.
• Discuss the former Soviet Union. Ask the learners what they know
about its communist economy. Then discuss the economy of a
country such as the United States of America. See if the learners
can draw comparisons between the two in the areas of land and
business ownership and resource allocation.
• Explain that there are different economic systems in the world’s
countries, but that all of them aim to solve the economic problem.
Explain what the economic problem is. Learners should remember
this from Grades 7 and 8.
• Move on to the section on planned economies in the Learner’s
Book page 20.

LESSON BY LESSON  TERM 1 27

EMS 9 TG (ENG).indb 27 6/5/13 6:22:33 PM


• If time allows, have a discussion about what learners think living
in a planned economy would be like. Encourage them to think
critically about a planned economy’s decision making and how
this lies exclusively with the government.
• Work through the characteristics and origins of planned
economies. Use your resources to supplement your teaching.
• Ask learners to look at the map in Figure 3.2 of the Learner’s
Book. Ensure that they know where the countries with planned
economies are situated.
• Before working through Table 3.1 in the Learner’s Book, ask
learners to think of their own advantages and disadvantages of
planned economies.
• Then work through the table, discussing what the learners think life
would be like without being free to choose products and services.
• Do Activity 3.1.

Lesson 3
• Recap what you taught about the planned economy in Lesson 2.
• Use the photo in Figure 3.4 of the Learner’s Book and your
resources as a starting point for a discussion about the market
economy. Ask learners to compare what they think supermarkets
in a market economy would look like with what they think
supermarkets in a planned economy would look like.
• Explain what a market economy is and its characteristics and
origins. Use your resources to supplement your teaching.
• Just as you did last week, ask learners to think of their own advantages
and disadvantages of market economies, before working through
Table 3.2 of the Learner’s Book with them. Encourage them to think
beyond the attraction of a wide range of consumer goods and to
see that planned economies do have some advantages over market
economies. Point out that market economies can be very unfair
and unequal societies. Encourage them to consider the ethics of an
economy that is profit driven rather than welfare driven.
• Ask the learners if this is fair, especially in developing countries
like South Africa. Use this as a starting point to lead the learners
towards understanding that South Africa has a mixed economy.
• If there is time, divide the class into groups to discuss this and ask
each group to give feedback to the class.

Lesson 4
• Recap what you taught in Lessons 2 and 3 about planned and
market economies.
• Remind learners about the discussions you had at the end of
last week’s lesson on the implications of profit-driven market
economies for people in developing countries.
• Introduce the mixed economy and teach its characteristics and
origins using your resources.
• Just as you did in Lessons 2 and 3, ask learners to think of their
own advantages and disadvantages of mixed economies before you
teach Table 3.3 in the Learner’s Book.

28 LESSON BY LESSON  TERM 1

EMS 9 TG (ENG).indb 28 6/5/13 6:22:33 PM


• Summarise your teaching using Figure 3.5 of the Learner’s Book.
• Do Activity 3.2.
• When learners have completed the activity, ask them whether they
think the different economies in the world can function completely
independently of each other. Use your resources on the global
financial crisis of 2007–2008 to supplement your discussion.
• Introduce the concept of the global economy and work through
the text in the Learner’s Book page 27 with the learners. Discuss
how different economies affect the global economy.
• Do Activity 3.3.

Answers
Activity 3.1
1. Lower order (3)
... an economic system ✔ in which the government or workers’
councils make all the decisions about the production and
consumption of goods and services, ✔ based on their idea of what
is good for all the people of that country. ✔
2. Middle order (1)
The government controls the factors of production. ✔
3. Higher order (6)
The jobs were called ‘iron rice bowls’ because the government
gave workers everything they needed to live – job security, food,
housing and other benefits. ✔ Rice is the staple food in China so
an ‘iron rice bowl’ referred to a secure (iron is a strong metal) ✔
supply of necessities (staples such as food). ✔ The government
could do this because planned economies are not profit-driven. ✔
This would be too expensive for market economies to do, and the
job security would make workers unproductive. ✔ Workers would
know that whether they worked hard or not, they would still get
everything they needed from the government. ✔

Activity 3.2
1. Higher order (24)
A: This photo shows a country with a planned economy or a
mixed economy. ✔ The disadvantages are that the economy may
be inflexible, ✔ have little incentive for growth ✔ and limited
consumer choices (planned economy) ✔ or that the economy may
be bureaucratic, corrupt and have limited government resources
to allocate to welfare (mixed economy). ✔ Or the photo shows a
market economy ✔ with huge inequality between rich and poor
✔ because of the economy’s profit-driven nature. ✔ Learners
name one advantage of the economic system they select. ✔
B: This photo shows a market economy with a choice of a wide
range of consumer goods. ✔ Learners name one advantage ✔ and
disadvantage ✔ of a market economy.

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C: This photo shows a market economy with a large gap between
rich and poor. ✔ Or it shows a mixed economy that has limited
economic growth, ✔ resulting in some citizens being wealthy and
others poor. ✔ Learners name one advantage ✔ and disadvantage
✔ of a market or mixed economy.
D: This photo shows a market economy where control rests with
big businesses, ✔ who may be more interested in making a profit
than in the welfare of citizens. ✔ This may cause workers to strike
for better pay and conditions. Or it shows a mixed economy
where economic growth is limited by inadequate government
resources and citizens strike to improve service delivery.
E: This photo shows a planned economy, ✔ in which the state is
focused on welfare ✔ but lacks the economic growth and flexibility
to make profits to allocate to the welfare system. ✔ Or it shows a
mixed economy, ✔ where resources are allocated to welfare but the
country’s fairly slow economic growth does not allow for sufficient
resources to be allocated there. ✔
2. Higher order (2)
Learners give their own opinions. Accept any reasonable answers
that are well thought through. For example, learners could say
that a planned economy is best for South Africa ✔ because of the
country’s large gap between rich and poor ✔;
OR they could say that the market economy is best ✔ because
government intervention in the economy is not solving problems
such as inflation and unemployment. ✔
3. Higher order (5)
Learners give their own opinions. Accept any reasonable answers
that are well thought through. For example, learners could say
that wealth taxes should be increased to subsidise the poor, or that
government spending should be more transparent to the voters.
(one ✔ per reasonable answer)
4. Middle order (18)
Planned economy Market economy Mixed economy
Who controls natural The government ✔ Individuals and The government,
resources? businesses ✔ individuals and
businesses ✔
Who controls labour The government ✔ Individuals and The government,
resources? businesses ✔ individuals and
businesses ✔
Who controls capital? The government ✔ Individuals and The government,
businesses ✔ individuals and
businesses ✔
Who decides what The government ✔ Individuals and Individuals and
to produce and how businesses ✔ businesses ✔
much?
Who decides how to The government ✔ Individuals and Individuals and
distribute goods and businesses ✔ businesses ✔
services?
Who decides on The government ✔ Individuals and Individuals and
workers’ jobs? businesses ✔ businesses ✔

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Activity 3.3
Higher order
Learners read, discuss and compare their articles in their groups. Each
group must produce a list relating their articles and the economic crisis
to South Africa and/or other parts of the world. For example, learners
could mention South Africa’s reliance on foreign direct investment,
and how countries such as the United States of America and European
countries have had to reduce their foreign investments to rescue their
own economies.

For information Informal assessment


on Informal
assessment, refer to Activity 3.1: If you have set this activity for homework, take in the
the self-assessment, learners’ answers and mark them. If you do the activity during class
peer assessment and time, observe how well the learners can focus on independent work.
group assessment Make notes of what you see. Take in the answers and mark them. (13)
templates in
Section 5 of this Activity 3.2: Observe how well the learners cooperate in pair
Teacher’s Guide. work and make notes of what you see. Take in the learners’ answers
and mark them.  (49)

Activity 3.3: Observe the learners to see how confidently they can
apply their knowledge to real-world situations, and whether they use
their initiative to find appropriate articles.  (observation-based)

Consolidation
• Write a paragraph in which you describe planned, market and
mixed economies briefly.
A planned economy is an economic system in which the
government or workers’ councils make all the decisions about
the production and consumption of goods and services, based on
their idea of what is good for all the people of that country.
A market economy is an unplanned economy in which land, property
and businesses are owned by private people, not the government.
A mixed economy is a mixture of private and government control
of the economy. The government, as well as people and businesses,
owns the land and natural resources.
• Explain the economic problem.
The economic problem is how to meet the endless wants and
needs of people with limited resources.
• Name two advantages and two disadvantages of each economic
system.
Learners name any two advantages and disadvantages of each
economic system such as:

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Table 3.1 The advantages and disadvantages of planned economies

Advantages of planned Disadvantages of planned


economies economies
They can be very stable because They can limit economic growth
they are closed systems. and innovation as there is no
entrepreneurship.
They can stimulate growth in There is no freedom of choice
industry because the government for consumers. Directing what
doesn’t have to wait for capital consumers want does not always
to accumulate before it makes work. For example, consumers
investments in heavy industry. have few choices about which
The government can direct products to buy – the government
economic resources to specific makes a limited range of things
areas. like clothing and foods available,
and consumers have to buy what
the government makes available.
The government can direct They are inflexible systems that
economic resources to areas cannot adapt to change quickly.
where they are most needed.
They look after the welfare of all There is no incentive for people
of the government’s citizens. to do their jobs well.
They are more focused on It is difficult to motivate workers
citizens’ welfare than on profit to excel.
and growth.

Table 3.2 The advantages and disadvantages of market economies

Advantages of market Disadvantages of market


economies economies
They are very flexible and can There are large differences
adapt quickly to change because between the wealth of citizens –
individuals don’t have to wait for some get rich while others stay
the government to tell them how poor.
to adapt.
Individuals can choose what they They focus on profit rather than
want to produce and how much on the welfare of citizens.
they want to produce goods for.
Consumers have a wide range of The government controls the
products and services to choose economy as little as possible,
from. so big businesses can have too
much control.
They reward innovation and They make products and services
technological development. available to consumers that may
harm consumers.
They are good for economic
growth because capital flows
naturally to places where it gives
the highest returns.

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Advantages of market Disadvantages of market
economies cont. economies cont.
There is economic freedom, so
if people work hard they are
rewarded and can improve their
lives.

Table 3.3 The advantages and disadvantages of mixed economies

Advantages of mixed economies Disadvantages of mixed


economies
They combine government and Economic growth can be limited
private businesses for good because the government
economic growth. allocates lots of resources to
citizens’ welfare.
The government works to Heavy government involvement
encourage the economy to grow in the economy through
in a balanced way so incomes regulation makes them
are more equal than in market bureaucratic and open to
economies. corruption.
They encourage private
businesses to make contributions
to citizens’ welfare.
They promote competition but
protect citizens too.

Extension
You are a carpenter living in a country with a planned economy.
Do some research about planned economies and write a short
report about what your life is like. Include your thoughts on your
home, shops, public services and work.
Learners give their own opinions. They should say that they need to
live and work where the government places them; that their housing
is modest because the wealth is distributed among all of the country’s
citizens; and that they have limited choices when they shop. They
should mention that their jobs are secure but not very well paid, and
that the government provides services such as healthcare and education.

Formal assessment
For information on Formal Assessment Task 1: Assignment and on
how to assess learner’s assignments, controlled tests, case studies
and projects, please see Section 3 of this Teacher’s Guide.

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Topic General Ledger and Trial Balance
(sole trader)
4 Learner’s Book pages 29—47 Duration: 6 hours

Curriculum and Assessment Policy Statement


Term and week/s
Term 1, Weeks (CAPS) content
5–10
In this topic, learners will learn about FINANCIAL LITERACY.
New words They will look at:
and concepts • posting cash transactions of a trading business from Cash Receipts
General Ledger; Journal and Cash Payments Journal to the General Ledger
Trial Balance;
Trading Stock
• preparing a Trial Balance of a trading business
account; Cost of
Sales account; Resources
posting Learners must each have an exercise book called a ‘Double Ledger’
and an ‘Eight money column’ or ‘Cash money column’. Exercise
books are also required for completing the accounting equations.
Photocopy the Cash Receipts Journal, Cash Payments Journal,
General Ledger and accounting equation templates found at the end
of this guide if necessary.

A calculator for each learner is essential.

Preparation
• Read through the topic and familiarise yourself with the content
that you will need to teach. Think about what learners may
already know about the topics, what skills they already have and
any areas of difficulty that you think they might encounter.
• The learners already know how to record transactions in the CRJ
and CPJ of a services business to the General Ledger and how to
do a Trial Balance. Use this knowledge to build on when you are
teaching the same for a trading business.
• It might be difficult for learners to understand the posting of the
Cost of Sales and Trading Stock accounts, so pay special attention
to these.

Teaching the topic


There are 6 lessons in this topic.
Lesson Week Pages Activities
5 5 35—36 4.1
6 6 36 4.2—4.3
7 7 37 4.4
8 8 37 4.5
9 9 37 4.6
10 10 37 4.7

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Lesson 5
• Discuss the concept of stock control and why it is important in
a business. Revise the layouts of the General Ledger and the Trial
Balance with learners.
• Discuss the example of Abel Dealers in the Learner’s Book pages
30–32 for posting the CRJ and CPJ to the General Ledger.
Show learners the new columns that have been added.
• Explain each transaction in the CPJ as follows:
Total of the Bank, R3 300: Bank is credited, because it’s an Asset
that has decreased.
Total of Stationery, R350: Stationery is debited, because it’s an
expense that has decreased Owners’ equity on the debit side.
Total of Trading stock, R2 400: Trading Stock is debited, because
it’s an Asset that has increased.
Total of Sundry accounts: Each entry is posted, not the total.
Telephone (R550) is debited, because it’s an expense that has
decreased Owner’s equity.
• Explain the posting of the Sales amount in the CRJ as follows:
– Indicate the account debited and the account credited, with
the total amount only:
Debited Bank Credited Sales
The amount 1 505
forms part of
Total receipts

– Write the name of the one account in the details of the other
account.
Bank Sales
Total Bank 1 505
receipts 11 505

We cannot write Sales here, because Total receipts includes other


receipts such as Capital and Rent income as well.
• Explain the posting of the Cost of sales in the CRJ as follows:
– Indicate the account debited and the account credited, with
the total amount only:
Debited Cost of Sales Credited Trading Stock
860 860

Cost of sales is not a cash item and so doesn’t form part of Total
receipts. Cost of Sales is debited, because it decreased Owner’s
equity. Trading Stock is credited, because the stock is sold and so
assets have decreased on the credit side.
– Write the name of one account in the details of the other
account.

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Cost of Sales Trading Stock
Trading Cost of
stock 860 sales 860

• Do Activity 4.1.
• Revise the following guidelines:
– Posting of the CRJ: the journal where receipts are entered,
which increases cash in the business’s bank account.
– There are two ways that you can explain this:
• Bank has been debited because it has increased (Assets
increase on the debit side) and according to the double-
entry principle, all the other accounts (EXCEPT Cost of
Sales) should be credited OR
• Identify each account as you did in the example above.
– Posting of the CPJ: the journal where payments are entered,
which decreases cash in the business’s bank account. There are
two ways that you can explain this:
• The bank has been credited because it has decreased
(Assets decrease on the credit side) and according to the
double-entry principle, all the other accounts should be
debited OR
• Identify each account as you did in the example above.
– Heading: The heading of the ledger contains ONLY the name
of the business, NOT the date.
– Date: Analysis columns are posted on the last day of the
specific month. Entries in the Sundry accounts are posted on
the day that the transaction occurs.
– Folios: When a transaction is posted, the folio of each ledger
account must be entered in the journal. In the Sundry
accounts column, the folio is entered in the folio column
provided and in the analysis columns, the folio is entered
below the total of each column. Learners cannot enter the
folio numbers if the completed journal appears only in the
Learner’s Book. However, all the others must be entered.
• Briefly revise the balancing of General Ledger accounts.

Lesson 6
• Do Activity 4.1 on the board. Learners check and mark their
homework.
• Briefly revise the preparation of the Trial Balance.
• Use the General Ledger of Activity 4.1 on the board to draw up a
Trial Balance.
• Do Activity 4.2.
• This activity is done as an example in class.
• Do Activity 4.3.

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Lesson 7
• Check and mark Activity 4.3.
• Do Activity 4.4.

Lesson 8
• Check and mark Activity 4.4.
• Do Activity 4.5.

Lesson 9
• Check and mark Activity 4.5.
• Do Activity 4.6.

Lesson 10
• Check and mark Activity 4.6.
• Do Activity 4.7.

Answers
Activity 4.1
Middle and Higher order (66)
1.–2.
Explain that the missing balance of the Capital account is calculated
by adding all the credit balances and subtracting this total from the
total of all the debit balances.

NOTE: The mark-up percentage of 75% is very high and considered


to be unethical business practce.

General Ledger of Corcia Traders


Balance Sheet accounts
Dr Capital B1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Jul 01 Balance b/d ✔ 195 000 00
Bank ✔ CRJ2 ✔ 19 500 00
30 Bank ✔ CRJ2 ✔ 5 500 00
✔ 220 000 00 (6)

Dr Drawings B2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Jul 01 Balance b/d ✔ 5 745 00

22 Bank ✔ CPJ2 ✔ 446 00

✔ 6 191 00 (4)

Dr Land and Buildings B3 Cr


Date Details Fol. Amount Date Details Fol. Amount
2017
Jul 01 Balance b/d ✔ 105 000 00 (1)

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Dr Vehicles B4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Jul 01 Balance b/d ✔ 64 065 00 (1)

Dr Equipment B5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Jul 01 Balance b/d ✔ 1 250 00

06 Bank ✔ CPJ2 ✔ 4 070 00

✔ 5 320 00 (4)

Dr Trading Stock B6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017 2017
Jul 01 Balance b/d ✔ 8 482 00 Jul 31 Cost of sales ✔ CRJ2 ✔ 8 514 00
31 Bank ✔ CPJ2 ✔ 3 448 00 Balance c/d ✔ 3 416 00
11 930 00 11 930 00
01 Balance b/d ✔ 3 416 00 (7)

Dr Bank B7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017 2017
Jul 01 Balance b/d ✔ 16 386 00 Jul 31 Total payments ✔ CPJ2 ✔ 11 925 00
31 Total receipts ✔ CRJ2 ✔ 39 551 00 Balance ✔ c/d 44 012 00
55 937 00 55 937 00
2017
Aug 01 Balance b/d ✔ 44 012 00 (7)

Dr Cash Float B8 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Jul 01 Balance b/d ✔ 450 00 (1)

Nominal accounts
Dr Sales N1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Jul 01 Balance b/d ✔ 20 340 00
31 Bank ✔ CRJ2 ✔ 12 771 00
✔ 33 111 00 (4)

Dr Cost of Sales N2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Jul 01 Balance b/d ✔ 13 560 00

31 Trading stock ✔ CRJ2 ✔ 8 514 00

✔ 22 074 00 (4)

38 LESSON BY LESSON  TERM 1

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Dr Rent Income N3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Jul 01 Balance b/d ✔ 7 000 00
19 Bank ✔ CRJ2 ✔ 1 780 00
✔ 8 780 00 (4)

Dr Wages N4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Jul 01 Balance b/d ✔ 3 330 00

31 Bank ✔ CPJ2 ✔ 2 480 00

✔ 5 810 00 (4)

Dr Packing Material N5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Jul 01 Balance b/d ✔ 753 00

31 Bank ✔ CPJ2 ✔ 376 00

✔ 1 129 00 (4)

Dr Trading Licence N6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Jul 01 Balance b/d ✔ 414 00 (1)

Dr Stationery N7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Jul 01 Balance b/d ✔ 577 00

06 Bank ✔ CPJ2 ✔ 38 00

13 Bank ✔ CPJ2 ✔ 124 00

✔ 739 00 (6)

Dr Water and Electricity N8 Cr


Date Details Fol. Amount Date Details Fol. Amount
2017
Jul 01 Balance b/d ✔ 1 334 00

22 Bank ✔ CPJ2 ✔ 595 00

✔ 1 929 00 (4)

Dr Telephone N9 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Jul 01 Balance b/d ✔ 994 00

21 Bank ✔ CPJ2 ✔ 348 00

✔ 1 342 00 (4)

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Activity 4.2
Middle order (20)
Trial Balance of Corcia Traders on 31 July 2017 ✔
Balance Sheet accounts Fol. Debit Credit
Capital B1 ✔ 220 000 00
Drawings B2 ✔ 6 191 00
Land and buildings B3 ✔ 105 000 00
Vehicles B4 ✔ 64 065 00
Equipment B5 ✔ 5 320 00
Trading stock B6 ✔ 3 416 00
Bank B7 ✔ 44 012 00
Cash float B8 ✔ 450 00
Nominal accounts
Sales N1 ✔ 33 111 00
Cost of sales N2 ✔ 22 074 00
Rent income N3 ✔ 8 780 00
Wages N4 ✔ 5 810 00
Packing material N5 ✔ 1 129 00
Trading licence N6 ✔ 414 00
Stationery N7 ✔ 739 00
Water and electricity N8 ✔ 1 929 00
Telephone N9 ✔ 1 342 00
✔ 261 891 00 ✔ 261 891 00

Activity 4.3
1. Middle order (83)
Ensure the learners know how to open the Journals and General
Ledger by themselves. This is the first activity where learners complete
a services business and a trading business at the same time. Explain
that Amiena sells (Sales) and rents out dresses (Services rendered –
Current income).

Learners must also calculate the balance of the Capital account.


They can only do that by adding the credit balances (R44 730 +
R8 764 = R53 494) and subtracting the total from the total of the
debit balances (R5 970 + R65 500 + R9 430 + R28 482 + R124 987
+ R560 + R25 560 + R4 321 + R2 640 + R234 + R753 + R414 +
R6 400 + R1 112 + R876 + R377 + R1 378 + R9 500 = R288 494).
So, R288 494 – R53 494 = R235 000.

40 LESSON BY LESSON  TERM 1

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Cash Receipts Journal of Amiena’s Dresses for September 2016 CRJ9
Doc. Day Details Fol. Analysis of Bank Sales Cost of Current Sundry accounts
no. receipts sales income
Amount Fol. Details
301 02 Sales 2 125 00 ✔2 125 00 ✔2 125 00 ✔1 250 00
Services
302 07 rendered ✔380 00 ✔ 380 00
303 Sales ✔4 904 50 ✔5 284 50 ✔4 904 50 ✔2 885 00
304 16 Sales ✔8 134 50 ✔8 134 50 ✔4 785 00
Services
305 rendered ✔1 550 00 ✔9 684 50 ✔1550 00
K61 21 A Hassiem ✔11 750 00 ✔11 750 00 B1 Capital✔
Services
306 rendered ✔790 00 ✔12 540 00 ✔790 00
Rent
K62 29 S Hardy ✔1 325 00 ✔1 325 00 N4 income✔
307 Sales ✔3 323 50 ✔4 648 50 ✔3 323 50 ✔1 955 00
34 282 50 18 487 50 10 875 00 2 720 00 ✔13 075 00 (32)
✔ ✔ B7 N1 N2/B6✔

Cash Payments Journal of Amiena’s Dresses for September 2016 CPJ9


Doc. Day Name of Fol. Bank Trading Material Wages Stationery Sundry accounts
no. payee stock cost
Amount Fol. Details
Meliska's
107 01 Materials ✔2 331 00 ✔2 331 00
✔ Trading
108 03 Municipality ✔340 00 ✔340 00 N9 licence✔
Spamer Land and
109 05 Buildings ✔135 000 00 ✔135 000 00 B3 buildings✔
Rent
110 06 M Mentoor ✔3 200 00 ✔3 200 00 N10 expense✔
111 09 Bernett ✔4 260 00 ✔4 260 00 B5 Equipment✔
Marcel's
112 11 Dresses ✔10 350 00 ✔10 350 00
113 13 Inkpen ✔433 00 ✔433 00
114 14 Cash ✔660 00 ✔660 00
115 17 Telkom ✔744 00 ✔212 00 B2 Drawings✔
✔532 00 N12 Telephone✔
Water and
116 18 Municipality ✔897 00 ✔655 00 N11 electricity✔
✔242 00 N13 Rates✔
Marcel's
117 23 Dresses ✔13 268 00 ✔12 580 00 ✔688 00
Monre Packing
118 24 Crafts ✔667 00 ✔114 00 ✔553 00 N8 material✔
Rafiek’s Vehicle
119 27 Motors ✔1 365 00 ✔776 00 N14 expense✔
✔589 00 B2 Drawings✔
120 28 Cash ✔660 00 ✔660 00
121 30 N Ochse ✔4 555 00 ✔4 555 00 N15 Salaries✔
✔ 178 730 00 22 930 00 3 019 00 1 320 00 547 00 ✔150 914 00 (51)
B7 B6 N5 N6 N7 ✔

LESSON BY LESSON  TERM 1 41

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2.–3. Middle order (90)
General Ledger of Amiena’s Dresses
Balance Sheet accounts
Dr Capital B1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Sep 01 Balance b/d ✔ 235 000 00
21 Bank ✔ CRJ9 ✔ 11 750 00
✔ 246 750 00 (4)

Dr Drawings B2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Sep 01 Balance b/d ✔ 5 970 00

17 Bank ✔ CPJ9 ✔ 212 00

27 Bank ✔ CPJ9 ✔ 589 00

✔ 6 771 00 (6)

Dr Land and Buildings B3 Cr


Date Details Fol. Amount Date Details Fol. Amount
2016
Sep 05 Bank CPJ9 ✔ 135 000 00 (1)

Dr Vehicles B4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Sep 01 Balance b/d ✔ 65 500 00 (1)

Dr Equipment B5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Sep 01 Balance b/d ✔ 9 430 00

09 Bank ✔ CPJ9 ✔ 4 260 00

✔ 13 690 00 (4)

Dr Trading Stock B6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016 2016
Sep 01 Balance b/d ✔ 28 482 00 Sep 30 Cost of sales ✔ CRJ9 ✔ 10 875 00
30 Bank ✔ CPJ9 ✔ 22 930 00 Balance c/d ✔ 40 537 00
✔ 51 412 00 51 412 00
2016
Oct 01 Balance b/d ✔ 40 537 00 (8)

Dr Bank B7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016 2016
Sep 01 Balance b/d ✔ 124 987 00 Sep 30 Total payments ✔ CPJ9 ✔ 178 730 00
30 Total receipts ✔ CRJ9 ✔ 34 282 50
Balance c/d ✔ 19 460 50
178 730 00 178 730 00
2016
Oct 01 Balance b/d ✔ 19 460 50 (7)

42 LESSON BY LESSON  TERM 1

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Dr Cash Float B8 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Sep 01 Balance b/d ✔ 560 00 (1)

Nominal accounts
Dr Sales N1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Sep 01 Balance b/d ✔ 43 452 00
30 Bank ✔ CRJ9 ✔ 18 487 50
✔ 61 939 50 (4)

Dr Cost of Sales N2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Sep 01 Balance b/d ✔ 25 560 00

30 Trading stock ✔ CRJ9 ✔ 10 875 00

✔ 36 435 00 (4)

Dr Current Income N3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Sep 01 Balance b/d ✔ 10 042 00
30 Bank ✔ CRJ9 ✔ 2 720 00
✔ 12 762 00 (4)

Dr Rent Income N4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Sep 29 Bank ✔ CRJ9 ✔ 1 325 00 (2)

Dr Material Cost N5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Sep 01 Balance b/d ✔ 4 321 00

30 Bank ✔ CPJ9 ✔ 3 019 00

✔ 7 340 00 (4)

Dr Wages N6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Sep 01 Balance b/d ✔ 2 640 00

30 Bank ✔ CPJ9 ✔ 1 320 00

✔ 3 960 00 (4)

Dr Stationery N7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Sep 01 Balance b/d ✔ 234 00

30 Bank ✔ CPJ9 ✔ 547 00

✔ 781 00 (4)

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EMS 9 TG (ENG).indb 43 6/5/13 6:22:36 PM


Dr Packing Material N8 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Sep 01 Balance b/d ✔ 753 00

24 Bank ✔ CPJ9 ✔ 553 00

✔ 1 306 00 (4)

Dr Trading Licence N9 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Sep 01 Balance b/d ✔ 414 00

03 Bank ✔ CPJ9 ✔ 340 00

✔ 754 00 (4)

Dr Rent Expense N10 Cr


Date Details Fol. Amount Date Details Fol. Amount
2016
Sep 01 Balance b/d ✔ 6 400 00

06 Bank ✔ CPJ9 ✔ 3 200 00

✔ 9 600 00 (4)

Dr Water and Electricity N11 Cr


Date Details Fol. Amount Date Details Fol. Amount
2016
Sep 01 Balance b/d ✔ 1 112 00

18 Bank ✔ CPJ9 ✔ 655 00

✔ 1 767 00 (4)

Dr Telephone N12 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Sep 01 Balance b/d ✔ 876 00

17 Bank ✔ CPJ9 ✔ 532 00

✔ 1 408 00 (4)

Dr Rates N13 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Sep 01 Balance b/d ✔ 377 00

18 Bank ✔ CPJ9 ✔ 242 00

✔ 619 00 (4)

Dr Vehicle Expense N14 Cr


Date Details Fol. Amount Date Details Fol. Amount
2016
Sep 01 Balance b/d ✔ 1 378 00

27 Bank ✔ CPJ9 ✔ 776 00

✔ 2 154 00 (4)

44 LESSON BY LESSON  TERM 1

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Dr Salaries N15 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Sep 01 Balance b/d ✔ 9 500 00

30 Bank ✔ CPJ9 ✔ 4 555 00

✔ 14 055 00 (4)

4. Lower order (28)


Trial Balance of Amiena’s Dresses on 30 September 2016 ✔
Balance Sheet accounts ✔ Fol. Debit Credit
Capital ✔ B1 246 750 00
Drawings ✔ B2 6 771 00
Land and buildings ✔ B3 135 000 00
Vehicles ✔ B4 65 500 00
Equipment ✔ B5 13 690 00
Trading stock ✔ B6 40 537 00
Bank ✔ B7 19 460 50
Cash float ✔ B8 560 00
Nominal accounts ✔
Sales ✔ N1 61 939 50
Cost of sales ✔ N2 36 435 00
Current income ✔ N3 12 762 00
Rent income ✔ N4 1 325 00
Material cost ✔ N5 7 340 00
Wages ✔ N6 3 960 00
Stationery ✔ N7 781 00
Packing material ✔ N8 1 306 00
Trading licence ✔ N9 754 00
Rent expense ✔ N10 9 600 00
Water and electricity ✔ N11 1 767 00
Telephone ✔ N12 1 408 00
Rates ✔ N13 619 00
Vehicle expense ✔ N14 2 154 00
Salaries ✔ N15 14 055 00
✔ 342 237 00 ✔ 342 237 00

5. Middle order (48)

Date Account Account Assets Owner’s Equity


debited credited Effect Reason Effect Reason
03 Trading Bank ✔ ✔ —340 Cash ✔ —340 Trading
licence ✔ decreases ✔ licence —
expense ✔
05 Land and Bank ✔ ✔ —135 000 Cash
buildings ✔ decreases ✔
✔ +135 000 Land and
buildings
increases ✔
07 Bank ✔ Current ✔ +380 Cash ✔ +380 Current
income ✔ increases ✔ income ✔

LESSON BY LESSON  TERM 1 45

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Date Account Account Assets Owner’s Equity
debited credited Effect Reason Effect Reason
Bank ✔ Sales ✔ ✔ +4 904,50 Cash ✔ +2 019,50 Profit earned
increases ✔ ✔
Cost of sales Trading stock ✔ —2 885 Trading stock
✔ ✔ decreases ✔
23 Trading stock Bank ✔ ✔ —13 268 Cash ✔ —688 Material cost
✔ decreases ✔ — expense ✔
Material cost Bank ✔ ✔ +12 580 Trading stock
✔ increases ✔
27 Vehicle Bank ✔ ✔ —1 365 Cash ✔ —776 Vehicle
expense ✔ decreases ✔ expense ✔
Drawings ✔ Bank ✔ ✔ —589 Drawings ✔

Activity 4.4
1. Middle order (58)
Ensure the learners know how to open the Journals and General
Ledger by themselves.
Two balances are missing. Learners must first calculate the
balance of the Cost of Sales account and then the balance of
the Wages account.

The opening balance of Cost of Sales is calculated as follows,


according to the formula learnt in Topic 2:
​ ____ ​ 35 535
100 ​ × ______ ​  = R23 690
150 1

The opening balance of the Wages account is calculated as follows:


Add up the credit balances (R237 000 + R52 424 + R35 535
+ R5 400 = R330 359) and subtract this total from the total of
the debit balances (R5 400 + R158 000 + R64 200 + R28 536
+ R44 436 + R350 + R23 690 + R470 + R468 + R793 + R656
= R326 999). So, R326 999 – R330 359 = R3 360.

Cash Receipts Journal of Ceebock Shirts for June 2012 CRJ6


Doc. Day Details Fol. Analysis of Bank Sales Cost of sales Sundry accounts
no. receipts
Amount Fol. Details

35 01 G Pieterse ✔12 000 00 ✔12 000 00 B1 Capital✔
CRR 07 Sales 29 106 00 ✔29 106 00 ✔29 106 00 ✔19 404 00
CRR 16 Sales 12 285 00 ✔12 285 00 ✔12 285 00 ✔8 190 00
CRR 23 Sales 22 365 00 ✔22 365 00 ✔22 365 00 ✔14 910 00
CRR 30 Sales ✔18 585 00 ✔18 585 00 ✔12 390 00
36 D Sanbona ✔3 560 00 ✔22 145 00 ✔3 560 00 N3 Rent income✔
✔ 97 901 00 82 341 00 54 894 00 15 560 00 ✔ (23)
B7 N1 N2/B6✔

46 LESSON BY LESSON  TERM 1

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Cash Payments Journal of Ceebock Shirts for June 2012 CPJ6
Doc. Day Name of payee Fol. Bank Trading Wages Sundry accounts
no. stock
Amount Fol. Details
84 03 Municipality ✔250 00 ✔250 00 N5✔ Trading licence✔
85 04 Krombecks ✔5 250 00 ✔5 250 00
86 09 Write & Wrong ✔165 00 ✔165 00 N6 Stationery✔
87 11 Jan Pienaar ✔8 820 00 ✔8 820 00
88 12 Cash ✔1 300 00 ✔1 300 00 B2 Drawings✔
89 Cash ✔1 255 00 ✔1 255 00
90 16 Sparrebosch ✔5 330 00 ✔5 330 00 B5 Equipment✔
91 19 Cash ✔1 255 00 ✔1 255 00
Water and
92 Municipality ✔655 00 ✔424 00 N7 electricity✔
✔231 00 B2 Drawings✔
93 23 Krombecks ✔2 604 00 ✔2 604 00
94 26 Cash ✔1 505 00 ✔1 255 00 ✔250 00 B8 Cash float✔
✔ 28 389 00 16 674 00 3 765 00 ✔7 950 00 (35)
B7 B6 N4✔

2.–3. Middle and Higher order (63)


General Ledger of Ceebock Shirts
Balance Sheet accounts
Dr Capital B1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jun 01 Balance b/d ✔ 237 000 00
Bank ✔ CRJ6 ✔ 12 000 00
✔ 249 000 00 (4)

Dr Drawings B2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jun 01 Balance b/d ✔ 5 400 00
12 Bank ✔ CPJ6 ✔ 1 300 00
19 Bank ✔ CPJ6 ✔ 231 00
✔ 6 931 00 (6)

Dr Land and Buildings B3 Cr


Date Details Fol. Amount Date Details Fol. Amount
2012
Jun 01 Balance b/d ✔ 158 000 00 (1)

Dr Vehicles B4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jun 01 Balance b/d ✔ 64 200 00 (1)

Dr Equipment B5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jun 01 Balance b/d ✔ 28 536 00
16 Bank ✔ CPJ6 ✔ 5 330 00
✔ 33 866 00 (4)

LESSON BY LESSON  TERM 1 47

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Dr Trading Stock B6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012 2012
Jun 01 Balance b/d ✔ 44 436 00 Jun 30 Cost of sales ✔ CRJ6 ✔ 54 894 00
30 Bank ✔ CPJ6 ✔ 16 674 00 Balance c/d ✔ 6 216 00
61 110 00 61 110 00
2012
Jul 01 Balance b/d ✔ 6 216 00 (7)

Dr Bank B7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012 2012
Jun 30 Total receipts ✔ CRJ6 ✔ 97 901 00 Jun 01 Balance b/d ✔ 52 424 00
30 Total payments ✔ CPJ6 ✔ 28 389 00
Balance c/d ✔ 17 088 00
97 901 00 97 901 00
2012
Jul 01 Balance b/d ✔ 17 088 00 (7)

Dr Cash Float B8 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jun 01 Balance b/d ✔ 350 00
26 Bank ✔ CPJ6 ✔ 250 00
✔ 600 00 (4)

Nominal accounts
Dr Sales N1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jun 01 Balance b/d ✔ 35 535 00
30 Bank ✔ CRJ6 ✔ 82 341 00
✔ 117 876 00 (4)

Dr Cost of Sales N2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jun 01 Balance b/d ✔ 23 690 00
30 Trading stock ✔ CRJ6 ✔ 54 894 00
✔ 78 584 00 (4)

Dr Rent Income N3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jun 01 Balance b/d ✔ 5 400 00
30 Bank ✔ CRJ6 ✔ 3 560 00
✔ 8 960 00 (4)

48 LESSON BY LESSON  TERM 1

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Dr Wages N4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jun 01 Balance b/d ✔ 3 360 00
30 Bank ✔ CPJ6 ✔ 3 765 00
✔ 7 125 00 (4)

Dr Trading Licence N5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jun 01 Balance b/d ✔ 470 00
03 Bank ✔ CPJ6 ✔ 250 00
✔ 720 00 (4)

Dr Stationery N6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jun 01 Balance b/d ✔ 468 00
09 Bank ✔ CPJ6 ✔ 165 00
✔ 633 00 (4)

Dr Water and Electricity N7 Cr


Date Details Fol. Amount Date Details Fol. Amount
2012
Jun 01 Balance b/d ✔ 793 00
19 Bank ✔ CPJ6 ✔ 424 00
✔ 1 217 00 (4)

Dr Telephone N8 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jun 01 Balance b/d ✔ 656 00 (1)

LESSON BY LESSON  TERM 1 49

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4. Middle order (18)
Trial Balance of Ceebock Shirts on 30 June 2012 ✔
Balance Sheet accounts Fol. Debit Credit
Capital ✔ B1 249 000
Drawings ✔ B2 6 931
Land and buildings ✔ B3 158 000
Vehicles ✔ B4 64 200
Equipment ✔ B5 33 866
Trading stock ✔ B6 6 216
Bank ✔ B7 17 088
Cash float ✔ B8 600
Nominal accounts
Sales ✔ N1 117 876
Cost of sales ✔ N2 78 584
Rent income ✔ N3 8 960
Wages ✔ N4 7 125
Trading licence ✔ N5 720
Stationery ✔ N6 633
Water and electricity ✔ N7 1 217
Telephone ✔ N8 656
✔ 375 836 375 836

5. Middle and Higher order (7)


a. R54 894 ✔ (1)

R54 894✔
b. ​ _________
   ​ 
= 1 307 T-shirts are sold. ✔ (3)
42✔
R6 216 ✔ 
c. ​ _________ ​ 
= 148 T-shirts are left over. ✔ (3)
42✔

Activity 4.5
Question 1 follows on the next page.
2. Middle order (37)
Learners must calculate the profit percentage according to the
formula learnt in Topic 2:
Calculate the profit amount:
Profit = R5 855,10 – R3 365 = R 2 490,10.
​ 2 490,10
The profit percentage is: ________ 100 ​  = 74%
× ​ ____
 ​ 

3 365 1

50 LESSON BY LESSON  TERM 1

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Cash Receipts Journal of Amacooka Traders for March 2016 CRJ3
Doc. Day Details Fol. Analysis of Bank Sales Cost of Sundry accounts
no. receipts sales
Amount Fol. Details

22 01 K Alva ✔25 000 00 ✔25 000 00 B1 Capital✔

CRR 12 Sales 930 90 ✔930 90 ✔930 90 ✔535 00

CRR 21 Sales 756 90 ✔756 90 ✔756 90 ✔435 00

CRR 23 Sales 2 061 90 ✔2 061 90 ✔2 061 90 ✔1 185 00

CRR 28 Sales 793 44 ✔793 44 ✔793 44 ✔456 00

CRR 31 Sales ✔1 348 50 ✔1 348 50 ✔775 00

23 D Radyn ✔1 215 00 ✔2 563 50 ✔1 215 00 N11 Rent income✔

✔ 32 106 64 5 891 64 3 386 00 ✔26 215 00 (26)


B5 N1 N2/B4✔

Cash Payments Journal of Amacooka Traders for March 2016 ✔ CPJ3


Doc. Day Name of payee Fol. Bank Stationery Wages Trading Sundry accounts
no. stock
Amount Fol. Details

021 02 Dot Rentals ✔1 215 00 ✔1 215 00 N3 Rent expense✔

022 Municipality ✔163 00 ✔163 00 N4 Trading licence✔

023 Melville Furniture ✔2 223 00 ✔2 223 00 B3 Equipment✔

024 Cash ✔115 00 ✔115 00 B6 Cash float✔

025 04 Welcook Suppliers ✔3 764 00 ✔3 764 00

026 06 Pens Galore ✔233 00 ✔233 00

027 07 Cash ✔375 00 ✔375 00

028 09 Paarl Post ✔224 00 ✔224 00 N5 Advertisements✔


Packing
029 18 Plastika Ltd ✔341 00 ✔341 00 N6 material✔

030 21 Cash ✔500 00 ✔375 00 ✔125 00 B6 Cash float✔


Water and
031 25 Municipality ✔342 00 ✔342 00 N7 electricity✔
Packing
032 Waldo Suppliers ✔614 00 ✔481 00 N6 material✔

✔133 00 N5 Advertisements✔

033 27 Nelson & Co. ✔2 113 00 ✔2 113 00

034 29 J Witche ✔1 110 00 ✔1 110 00 N8 Salaries✔

035 Welcook Suppliers ✔1 440 00 ✔1 440 00

036 30 Cash ✔660 00 ✔660 00 B2 Drawings✔

✔ 15 432 00 233 00 750 00 7 317 00 ✔7 132 00 (51)


B5 N10 N9 B4 ✔

1., 3. and 4. Middle order (32)


The opening balance of the Packing Material account is calculated as
follows: Add up the credit balances (R36 500 + R5 855,10 + R1 215 =
R43 570,10) and subtract this total from the total of the debit balances
(R815 + R3 544 + R8 793 + R8 722 + R200 + R3 365 + R4 860 +
R130 + R338 + R478 + R4 440 + R6 000 + R562,10 = R42 247,10).
So, R43 570,10 – R42 247,10 = R1 323.

LESSON BY LESSON  TERM 1 51

EMS 9 TG (ENG).indb 51 6/5/13 6:22:38 PM


General Ledger of Amacooka Traders
Balance Sheet accounts
Dr Capital B1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Mar 01 Balance b/d ✔ 36 500 00
Bank ✔ CRJ3 ✔ 25 000 00
✔ 61 500 00 (4)

Dr Drawings B2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Mar 01 Balance b/d ✔ 815 00
30 Bank ✔ CPJ3 ✔ 660 00
✔ 1 475 00 (4)

Dr Equipment B3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Mar 01 Balance b/d ✔ 3 544 00
02 Bank ✔ CPJ3 ✔ 2 223 00
✔ 5 767 00 (4)

Dr Trading Stock B4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016 2016
Mar 01 Balance b/d ✔ 8 793 00 Mar 31 Cost of sales ✔ CRJ3 ✔ 3 386 00
31 Bank ✔ CPJ3 ✔ 7 317 00 Balance c/d ✔ 12 724 00
16 110 00 16 110 00
2016
Apr 01 Balance b/d ✔ 12 724 00 (7)

Dr Bank B5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016 2016
Mar 01 Balance b/d ✔ 8 722 00 Mar 31 Total payments ✔ CPJ3 ✔ 15 432 00
31 Total receipts ✔ CRJ3 ✔ 32 106 64 Balance c/d ✔ 25 396 64
40 828 64 40 828 64
2016
Apr 01 Balance b/d ✔ 25 396 64 (7)

Dr Cash Float B6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Mar 01 Balance b/d ✔ 200 00
02 Bank ✔ CPJ3 ✔ 115 00
21 Bank ✔ CPJ3 ✔ 125 00
✔ 440 00 (6)

52 LESSON BY LESSON  TERM 1

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Nominal accounts
Dr Sales N1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Mar 01 Balance b/d ✔ 5 855 10
31 Bank ✔ CRJ3 ✔ 5 891 64
✔ 11 746 74 (4)

Dr Cost of Sales N2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Mar 01 Balance b/d ✔ 3 365 00
31 Trading stock ✔ CRJ3 ✔ 3 386 00
✔ 6 751 00 (4)

Dr Rent Expense N3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Mar 01 Balance b/d ✔ 4 860 00
02 Bank ✔ CPJ3 ✔ 1 215 00
✔ 6 075 00 (4)

Dr Trading Licence N4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Mar 01 Balance b/d ✔ 130 00
02 Bank ✔ CPJ3 ✔ 163 00
✔ 293 00 (4)

Dr Advertisements N5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Mar 01 Balance b/d ✔ 338 00
09 Bank ✔ CPJ3 ✔ 224 00
25 Bank ✔ CPJ3 ✔ 133 00
✔ 695 00 (6)

Dr Packing Material N6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Mar 01 Balance b/d ✔ 1 323 00
18 Bank ✔ CPJ3 ✔ 341 00
25 Bank ✔ CPJ3 ✔ 481 00
✔ 2 145 00 (6)

Dr Water and Electricity N7 Cr


Date Details Fol. Amount Date Details Fol. Amount
2016
Mar 01 Balance b/d ✔ 478 00
25 Bank ✔ CPJ3 ✔ 342 00
✔ 820 00 (4)

LESSON BY LESSON  TERM 1 53

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Dr Salaries N8 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Mar 01 Balance b/d ✔ 4 440 00
29 Bank ✔ CPJ3 ✔ 1 110 00
✔ 5 550 00 (4)

Dr Wages N9 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Mar 01 Balance b/d ✔ 6 000 00
31 Bank ✔ CPJ3 ✔ 750 00
✔ 6 750 00 (4)

Dr Stationery N10 Cr
Date Details Fol. Amount Date Details Fol. Amount
2016
Mar 01 Balance b/d ✔ 562 10
31 Bank ✔ CPJ3 ✔ 233 00
✔ 795 10 (4)

Dr Rent Income N11 Cr


Date Details Fol. Amount Date Details Fol. Amount
2016
Mar 01 Balance b/d ✔ 1 215 00
31 Bank ✔ CRJ3 ✔ 1 215 00
✔ 2 430 00 (4)

5. Middle order (20)


Trial Balance of Amacooka Traders on 31 March 2016 ✔
Balance Sheet accounts Fol. Debit Credit
Capital ✔ B1 61 500 00
Drawings ✔ B2 1 475 00
Equipment ✔ B3 5 767 00
Trading stock ✔ B4 12 724 00
Bank ✔ B5 25 396 64
Cash float ✔ B6 440 00
Nominal accounts

Sales ✔ N1 11 746 74
Cost of sales ✔ N2 6 751 00
Rent expense ✔ N3 6 075 00
Trading licence ✔ N4 293 00
Advertisements ✔ N5 695 00
Packing material ✔✔ N6 2 145 00
Water and electricity ✔ N7 820 00
Salaries ✔ N8 5 550 00
Wages ✔ N9 6 750 00
Stationery ✔ N10 795 10
Rent income ✔ N11 2 430 00
✔ 75 676 74 75 676 74

54 LESSON BY LESSON  TERM 1

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6. Middle order (64)

Day General Ledger Assets Owner’s Equity


Account Account Effect Reason Effect Reason
debited credited
02 Rent expense ✔ Bank ✔ ✔ —1 215 Cash decreases ✔ ✔ —1 215 Rent expense ✔
Trading licence Bank ✔ ✔ —163 Cash decreases ✔ ✔ —163 Trading licence
✔ — expense ✔
Equipment ✔ Bank ✔ ✔ —2 223 Cash decreases ✔
✔ +2 223 Equipment
increases ✔
Cash float ✔ Bank ✔ ✔ +115 Cash (cash float)
increases ✔
✔ —115 Cash decreases ✔
04 Trading stock ✔ Bank ✔ ✔ —3 764 Cash decreases ✔
✔ +3 764 Trading stock
increases ✔
06 Stationery ✔ Bank ✔ ✔ —233 Cash decreases ✔ ✔ —233 Stationery —
expense ✔
18 Packing Bank ✔ ✔ —341 Cash decreases ✔ ✔ —341 Packing
material ✔ material —
expense ✔
30 Drawings ✔ Bank ✔ ✔ —660 Cash decreases ✔ ✔ —660 Drawings ✔
31 Bank ✔ Sales ✔ ✔ +1 348,50 Cash increases ✔ ✔ +573,50 Profit earned ✔
Cost of sales ✔ Trading ✔ —775 Trading stock
stock ✔ decreases ✔
Bank ✔ Rent ✔ +1 215 Cash increases ✔ ✔ +1 215 Rent income ✔
income ✔

Activity 4.6
1. Middle order (60)
In this activity, learners use three different profit percentages.
Explain this beforehand, to ensure they understand which
percentage is used with which sales.

Work through the calculation on the 27th with learners:


​  15  ​ × R132 250 = R17 250.
____
115

Cash Receipts Journal of Zanzara Dealers for March 2015 CRJ3


Doc. Day Details Fol. Analysis of Bank Sales Cost of sales Sundry accounts
no. receipts
Amount Fol. Details
36 04 P Prins ✔1 500 00 ✔1 500 00 N7✔ Rent income✔
16 Sales ✔16 800 00 ✔18 300 00 ✔16 800 00 ✔12 600 00
17 08 Sales 3 625 00 ✔3 625 00 ✔3 625 00 ✔2 500 00
18 13 Sales 420 50 ✔420 50 ✔420 50 ✔290 00
19 20 Sales 56 250 00 ✔56 250 00 ✔56 250 00 ✔45 000 00
37 27 W Victor ✔17 250 00 ✔17 250 00 B1 Capital✔
20 Sales ✔762 70 ✔18 012 70 ✔762 70 ✔526 00
✔ 96 608 20 77 858 20 60 916 00 ✔18 750 00 (27)
B5 N1 N2/B4✔

LESSON BY LESSON  TERM 1 55

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Cash Payments Journal of Zanzara Dealers for March 2015 CPJ3
Doc. Day Name of Fol. Bank Trading stock Wages Stationery Sundry accounts
no. payee
Amount Fol. Details
114 01 Cash ✔500 00 ✔500 00 B6✔ Cash float✔
Halo
115 03 Machinery ✔5 780 00 ✔5 780 00 B3 Equipment✔
Pulley
116 07 Dealers ✔13 500 00 ✔13 500 00
Zebra
117 09 Motors ✔335 00 ✔335 00 N4 Fuel✔
118 11 Cash ✔850 00 ✔850 00
119 15 W Victor ✔1 145 00 ✔1 145 00 B2 Drawings✔
120 18 Cash ✔850 00 ✔850 00
Speed
121 22 Dealers ✔78 000 00 ✔78 000 00
Pages
122 25 Stationery ✔230 00 ✔230 00
123 26 Cash ✔850 00 ✔850 00
124 31 Telkom ✔665 00 ✔365 00 N6 Telephone✔
✔300 00 B2 Drawings✔
✔ 102 705 00 91 500 00 2 550 00 230 00 ✔8 425 00 (33)
B5 B4 N5 N3✔

2.–3. Middle order (60)

General Ledger of Zanzara Dealers


Balance Sheet accounts
Dr Capital B1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015
Mar 01 Balance b/d ✔ 115 000 00
27 Bank ✔ CRJ3 ✔ 17 250 00
✔ 132 250 00 (4)

Dr Drawings B2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015
Mar 01 Balance b/d ✔ 5 500 00
15 Bank ✔ CPJ3 ✔ 1 145 00
31 Bank ✔ CPJ3 ✔ 300 00
✔ 6 945 00 (6)

Dr Equipment B3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015
Mar 01 Balance b/d ✔ 23 000 00
03 Bank ✔ CPJ3 ✔ 5 780 00
✔ 28 780 00 (4)

56 LESSON BY LESSON  TERM 1

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Dr Trading Stock B4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015 2015
Mar 01 Balance b/d ✔ 101 476 00 Mar 31 Cost of sales ✔ CRJ3 ✔ 60 916 00
31 Bank ✔ CPJ3 ✔ 91 500 00 Balance ✔ c/d 132 060 00
192 976 00 192 976 00
2015
Apr 01 Balance b/d ✔ 132 060 00 (7)

Dr Bank B5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015 2015
Mar 01 Balance b/d ✔ 31 343 00 Mar 31 Total payments ✔ CPJ3 ✔ 102 705 00
31 Total receipts ✔ CRJ3 ✔ 96 608 20 Balance ✔ c/d 25 246 20
127 951 20 127 951 20
2015
Apr 01 Balance b/d ✔ 25 246 20 (7)

Dr Cash Float B6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015
Mar 01 Balance b/d ✔ 150 00
Bank ✔ CPJ3 ✔ 500 00
✔ 650 00 (4)

Nominal accounts
Dr Sales N1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015
Mar 01 Balance b/d ✔ 125 000 00
31 Bank ✔ CRJ3 ✔ 77 858 20
✔ 202 858 20 (4)

Dr Cost of Sales N2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015
Mar 01 Balance b/d ✔ 80 600 00
31 Trading stock ✔ CRJ3 ✔ 60 916 00
✔ 141 516 00 (4)

Dr Stationery N3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015
Mar 01 Balance b/d ✔ 780 00
31 Bank ✔ CPJ3 ✔ 230 00
✔ 1 010 00 (4)

Dr Fuel N4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015
Mar 01 Balance b/d ✔ 775 00
09 Bank ✔ CPJ3 ✔ 335 00
✔ 1 110 00 (4)

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Dr Wages N5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015
Mar 01 Balance b/d ✔ 1 500 00
31 Bank ✔ CPJ3 ✔ 2 550 00
✔ 4 050 00 (4)

Dr Telephone N6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015
Mar 01 Balance b/d ✔ 876 00
31 Bank ✔ CPJ3 ✔ 365 00
✔ 1 241 00 (4)

Dr Rent Income N7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015
Mar 01 Balance b/d ✔ 6 000 00
04 Bank ✔ CRJ3 ✔ 1 500 00
✔ 7 500 00 (4)

4. Middle order (14)


Trial Balance of Zanzara Dealers on 31 March 2015
Balance Sheet accounts Fol. Debit Credit
Capital ✔ B1 132 250 00
Drawings ✔ B2 6 945 00
Equipment ✔ B3 28 780 00
Trading stock ✔ B4 132 060 00
Bank ✔ B5 25 246 20
Cash float ✔ B6 650 00
Nominal accounts
Sales ✔ N1 202 858 20
Cost of sales ✔ N2 141 516 00
Stationery ✔ N3 1 010 00
Fuel ✔ N4 1 110 00
Wages ✔ N5 4 050 00
Telephone ✔ N6 1 241 00
Rent income ✔ N7 7 500 00
342 608 20 ✔ 342 608 20

Activity 4.7
1.–2. Middle order (69)
Tell learners that the source documents shown must also be
entered in the journals, and not only the transactions.
Learners must understand that stationery purchased can be for
business use (Stationery) or for the resale of stationery (Trading Stock).
Two balances are missing. Learners must first calculate the
balance of the Cost of Sales account and then the balance of the
Bank account.

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The opening balance of Cost of Sales can be calculated according to
the formula learnt in Topic 2:
100 
​ ____ ​ 20 342
 ​× ______  ​ 
 = R14 530
140 1
The opening balance of the Bank account is calculated as follows:
Add the credit balances (R106 000 + R20 342 + R1 408 = R127 750)
and subtract this total from the total of the debit balances
(R934 + R95 000 + R5 710 + R6 280 + R150 + R14 530 + R1 650
+ R976 + R543 + R182 + R557 + R65 + R332 = R126 909).
So, R127 750 – R126 909 = R841.

Cash Receipts Journal of Cut & Paste Shop for May 2018 CRJ5
Doc. Day Details Fol. Analysis of Bank Sales Cost of Sundry accounts
no. receipts sales
Amount Fol. Details
CRR 05 Sales 987 00 ✔987 00 ✔987 00 ✔705 00
14 09 J Henneman 155 00 ✔155 00 ✔155 00 N10✔ Rent income✔
CRR 12 Sales 947 80 ✔947 80 ✔947 80 ✔677 00
CRR 19 Sales ✔1 377 60 ✔1 377 60 ✔984 00
15 J Kritzinger ✔4 500 00 ✔5 877 60 ✔4 500 00 B1 Capital✔
CRR 28 Sales 985 60 ✔985 60 ✔985 60 ✔704 00
✔ ✔ 8 953 00 4 298 00 3 070 00 ✔4 655 00 (24)
B6 N1 N2/B5✔

Cash Payments Journal of Cut & Paste Shop for May 2018 CPJ5
Doc. Day Name of Fol. Bank Trading Stationery Consumable Sundry accounts
no. payee stock goods
Amount Fol. Details
Scribblers
103 02 Suppliers ✔1 476 00 ✔1 374 00 ✔102 00
King
104 06 Brokers ✔217 00 ✔217 00 N9 Insurance✔
Office
105 07 Suppliers ✔1 296 00 ✔1 251 00 ✔45 00 N11 Advertisements✔
Klix
106 10 Packaging ✔383 00 ✔383 00
Quick
107 11 Repairs ✔116 00 ✔116 00 N7 Repairs✔
108 12 Pacerpunt ✔50 00 ✔50 00
Scribblers
109 14 Suppliers ✔2 779 00 ✔1 402 00 ✔1 377 00 B4 Equipment✔
110 15 Cash ✔520 00 ✔500 00 N3 Wages✔
✔20 00 N8 Postage✔
111 18 Pacerpunt ✔616 00 ✔616 00
Klix
112 20 Packaging ✔208 00 ✔91 00 ✔117 00
Soapy
113 21 Suds ✔112 00 ✔112 00
J
114 24 Kritzinger ✔560 00 ✔560 00 B2 Drawings✔
115 27 Post Office ✔312 00 ✔312 00 N5 Telephone✔
HB
116 30 Croxley ✔3 450 00 ✔3 450 00 N12 Salaries✔
✔ 12 095 00 4 643 00 243 00 612 00 ✔6 597 00 (45)
B6 B5 N6 N4✔

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General Ledger of Cut & Paste Shop
Balance Sheet accounts
Dr Capital B1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2018
May 01 Balance b/d ✔ 106 000 00
19 Bank ✔ CRJ5 ✔ 4 500 00
✔ 110 500 00 (4)

Dr Drawings B2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2018
May 01 Balance b/d ✔ 934 00
24 Bank ✔ CPJ5 ✔ 560 00
✔ 1 494 00 (4)

Dr Land and Buildings B3 Cr


Date Details Fol. Amount Date Details Fol. Amount
2018
May 01 Balance b/d ✔ 95 000 00 (1)

Dr Equipment B4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2018
May 01 Balance b/d ✔ 5 710 00
14 Bank ✔ CPJ5 ✔ 1 377 00
✔ 7 087 00 (4)

Dr Trading Stock B5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2018 2018
May 01 Balance b/d ✔ 6 280 00 May 31 Cost of sales CRJ5 ✔ 3 070 00
31 Bank ✔ CPJ5 ✔ 4 643 00 Balance ✔ c/d ✔ 7 853 00
10 923 00 10 923 00
2018
Jun 01 Balance b/d ✔ 7 853 00 (7)

Dr Bank B6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2018 2018
May 01 Balance b/d ✔ 841 00 May 31 Total payments ✔ CPJ5 ✔ 12 095 00
31 Total receipts ✔ CRJ5 ✔ 8 953 00
Balance ✔ c/d ✔ 2 301 00
12 095 00 12 095 00
2018
Jun 01 Balance b/d ✔ 2 301 00 (8)

Dr Cash Float B7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2018
May 01 Balance b/d ✔ 150 00 (1)

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Nominal accounts
Dr Sales N1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2018
May 01 Balance b/d ✔ 20 342 00
31 Bank ✔ CRJ5 ✔ 4 298 00
✔ 24 640 00 (4)

Dr Cost of Sales N2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2018
May 01 Balance b/d ✔ 14 530 00
31 Trading stock ✔ CRJ5 ✔ 3 070 00
✔ 17 600 00 (4)

Dr Wages N3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2018
May 01 Balance b/d ✔ 1 650 00
15 Bank ✔ CPJ5 ✔ 500 00
✔ 2 150 00 (4)

Dr Consumable Goods N4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2018
May 01 Balance b/d ✔ 976 00
31 Bank ✔ CPJ5 ✔ 612 00
✔ 1 588 00 (4)

Dr Telephone N5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2018
May 01 Balance b/d ✔ 543 00
27 Bank ✔ CPJ5 ✔ 312 00
✔ 855 00 (4)

Dr Stationery N6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2018
May 01 Balance b/d ✔ 182 00
31 Bank ✔ CPJ5 ✔ 243 00
✔ 425 00 (4)

Dr Repairs N7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2018
May 01 Balance b/d ✔ 557 00
11 Bank ✔ CPJ5 ✔ 116 00
✔ 673 00 (4)

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Dr Postage N8 Cr
Date Details Fol. Amount Date Details Fol. Amount
2018
May 01 Balance b/d ✔ 65 00
15 Bank ✔ CPJ5 ✔ 20 00
✔ 85 00 (4)

Dr Insurance N9 Cr
Date Details Fol. Amount Date Details Fol. Amount
2018
May 01 Balance b/d ✔ 332 00
06 Bank ✔ CPJ5 ✔ 217 00
✔ 549 00 (4)

Dr Rent Income N10 Cr


Date Details Fol. Amount Date Details Fol. Amount
2018
May 01 Balance b/d ✔ 1 408 00
09 Bank ✔ CRJ5 ✔ 155 00
✔ 1 563 00 (4)

Dr Advertisements N11 Cr
Date Details Fol. Amount Date Details Fol. Amount
2018
May 07 Bank CPJ5 ✔ 45 00 (1)
Dr Salaries N12 Cr
Date Details Fol. Amount Date Details Fol. Amount
2018
May 30 Bank CPJ5 ✔ 3 450 00 (1)

4. Middle order (20)


Trial Balance of Cut & Paste Shop on 31 May 2018
Balance Sheet accounts Fol. Debit Credit
Capital ✔ B1 110 500
Drawings ✔ B2 1 494
Land and buildings ✔ B3 95 000
Equipment ✔ B4 7 087
Trading stock ✔ B5 7 853
Bank ✔ B6 2 301
Cash float ✔ B7 150
Nominal accounts
Sales ✔ N1 24 640
Cost of sales ✔ N2 17 600
Wages ✔ N3 2 150
Consumable goods ✔ N4 1 588
Telephone ✔ N5 855
Stationery ✔ N6 425
Repairs ✔ N7 673
Postage ✔ N8 85
Insurance ✔ N9 549
Rent income ✔ N10 1 563
Advertisements ✔ N11 45
Salaries ✔ N12 3 450
139 004 ✔ 139 004

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5. Middle order (60)

Date Account Account Effect Reason Effect Reason


debited credited
02 Stationery ✔ Bank ✔ ✔ —1 476 Cash ✔—102 Stationery —
decreases ✔ expense ✔
Trading stock Bank ✔ ✔ +1 374 Trading stock
✔ increases ✔
05 Bank ✔ Sales ✔ ✔ +987 Cash ✔ +282 Profit earned
increases ✔ ✔
Cost of sales ✔ Trading stock ✔ —705 Trading stock
✔ decreases ✔
06 Insurance ✔ Bank ✔ ✔ —217 Cash ✔ —217 Insurance —
decreases ✔ expense ✔
07 Trading stock Bank ✔ ✔ —1 296 Cash ✔ —45 Advertisement
✔ decreases ✔ — expense ✔
Advertisement Bank ✔ ✔ +1 251 Trading stock
✔ increases ✔
09 Bank ✔ Rent income ✔ +155 Cash ✔ +155 Rent income ✔
✔ increases ✔
10 Consumables Bank ✔ ✔ —383 Cash ✔ —383 Consumable
✔ decreases ✔ goods —
expense ✔
24 Drawings ✔ Bank ✔ ✔ —560 Cash ✔ —560 Drawings ✔
decreases ✔
30 Salary ✔ Bank ✔ ✔ —3 450 Cash ✔ —3 450 Salary —
decreases ✔ expense ✔

For information Informal assessment


on Informal
assessment, refer to Activities 4.1—4.7: Learners check and mark these activities.
the self-assessment, Use an overhead/data projector to illustrate the answers to the
peer assessment and CRJs and CPJs and show the General Ledgers on the board, posting
group assessment from the completed Journals to the Ledger. The Trial Balances can
templates in also be shown on the board.
Section 5 of this
Give handouts so learners can mark their activities at their
Teacher’s Guide.
desks, while you call one learner at a time to check their books.
A useful technique is to mark one activity’s Journals in one
lesson and the General Ledger and Trial Balance of that activity
during the next lesson, together with the next activity’s Journals. By
marking the Journals of each activity first, before learners do the
General Ledger and Trial Balance for the same activity, learners do
not carry mistakes made in the Journals on into the General Ledger
and Trial Balance. (988)

Consolidation
• Copy the accounts below into your ledger and complete each
account. Answer the questions that follow. Wonderland Toy
Stores uses a profit mark-up of 65% on cost price.

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General Ledger of Wonderland Toy Stores
Balance Sheet accounts
Dr Bank B8 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012 2012
Dec 01 Balance b/d 8 766 00 Dec 31 ? ? ?
31 ? ? Balance c/d 3 423 00
? 22 787 00
2013
Jan 01 Balance b/d 3 423 00

Dr Trading Stock B9 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012 2012
Dec 01 Balance b/d 85 680 00 Dec 31 ? CRJ 12 200 00
31 ? CPJ ? Balance c/d ?
2013
Jan 01 Balance b/d 88 143 00

Nominal accounts
Dr Sales N1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Dec 01 Balance c/d 15 870 00
31 ? ?

• Questions
1. Name the contra-account for the amount of R12 200.
Cost of sales
2. What is the value of the trading stock purchased in
December? R14 663
3. Name the contra-account for the amount given at
Question 2. Bank
4. How much cash was received in December? R14 021
5. In which journal can the information given for Question 4
be found? CRJ
6. How much cash was paid out in December? R19 364
7. In which journal can the information given for Question 6
be found? CPJ
8. What was the cost price of the goods sold for cash
in December? R12 200
9. In which journal can the information for Question 8
be found? CRJ
10. What is the selling price of the merchandise sold
in December? R20 130
11. What is the contra-account for the amount given for
Question 10? Bank
12. In which journal was the information for Question 11
recorded? CRJ

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General Ledger of Wonderland Toy Stores
Balance Sheet accounts
Dr Bank B8 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012 2012
Dec 01 Balance b/d 8 766 00 Dec 31 Total payments CPJ 19 364 00
31 Total receipts CRJ 14 021 00 Balance c/d 3 423 00
22 787 00 22 787 00
2013
Jan 01 Balance b/d 3 423 00

Dr Trading Stock B9 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012 2012
Dec 01 Balance b/d 85 680 00 Dec 31 Cost of sales CRJ 12 200 00
31 Bank CPJ 14 663 00 Balance c/d 88 143 00
100 343 00 100 343 00
2013
Jan 01 Balance b/d 88 143 00

Nominal accounts
Dr Sales N1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Dec 01 Balance b/d 15 870 00
31 Bank CRJ 20 130 00
36 000 00

Extension
K Masinga has a dairy on his farm, called Valley Farm Milk.
Required
Take all the information into account and compile a Trial Balance.
Information
He buys his milk from the local farmers at R3 per litre, pasteurises it
in his factory and sells it to Ding-Dong Dairies for R4,25 per litre,
and for R4,50 per litre to some shops in the town nearby. He also
buys cheese from Ding-Dong Dairies at R30/kg and sells it to the
local community at R36/kg.
At the end of July 2016 the following balances and information
appeared in the books of the business:
Capital R360 600, Drawings R800, Land and buildings,
R255 000, Equipment R44 360, Trading stock R0, Bank R16 896,
Sales R15 250, Cost of sales R12 500, Insurance R980, Telephone
R810, Water and electricity R8 727 and Consumables R765.
Notes
The bank shows the correct balance.
No milk or cheese is left from the previous months.
However, the bookkeeper closed off the books before all transactions
had been completed.

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At the moment there are 3 500 litres of milk in the tanks. Ding-Dong
Dairies will collect this on 1 August.
Valley Farm also purchased 50 kg of cheese of which 2 kg is left.
K Masinga took home 2,5 kg of cheese and 50 litres of milk for
personal use.
In the course of the month Valley Farm supplied 1 500 litres of milk
to the local shops and 8 200 litres of milk to Ding-Dong Dairies.
They also purchased an additional milk tank, R12 000, and had
improvements done to the existing storeroom to accommodate the
additional tank at a cost of R25 000.
This is a difficult activity and will be a challenge for most learners.
Assist learners who need help by calculating the Trading stock, Sales
and Cost of sales amounts.
Here is an analysis of the activity.
1. At the moment there are 3 500 litres of milk in the tanks.
3 500 litres of milk is trading stock (3 500 × 3 = R10 500).
2. Valley Farm also purchased 50 kg of cheese of which 2 kg is left.
2 kg cheese forms part of Trading stock (2 × 30 = R60).
3. K Masinga took home 2,5 kg of cheese and 50 litres of milk for
personal use.
Drawings (2,5 kg × 30) + (50 litres × 3) = R225. Both amounts
are calculated at cost price.
4. During the course of the month, Valley Farm Milk supplied
1 500 litres of milk to the local shops and 8 200 litres of milk
to Ding-Dong Dairies.
Sales: Milk = (1 500 litres × 4,50) + (8 200 litres × 4,25) = R41 600
Cheese = 50 kg – 2 kg (left over) – 2,5 kg (owner took for
himself ) = 45,5 kg sold = 45,5 kg × 36 = R1 638
Cost of sales:
Milk = (1 500 litres × R3) + (8 200 litres × R3) = R29 100
Cheese = 45,5 kg × 30 = R1 365

Trial Balance of Valley Farm Milk on 31 July 2016


Balance Sheet accounts Fol. Debit Credit
Capital 360 600
Drawings (800 + 75 + 150) 1 025
Land and buildings (255 000 + 25 000) 280 000
Equipment (44 360 + 12 000) 56 360
Trading stock 10 560
Bank 16 896
Nominal accounts
Sales (15 250 + 43 238) 58 488
Cost of sales (30 465 + 12 500) 42 965
Insurance 980
Telephone 810
Water and electricity 8 727
Consumables 765
419 088 419 088

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Topic
UnitCircular
1 flow
5 Learner’s Book pages 48—56 Duration: 5 hours

Term and week/s


Curriculum and Assessment Policy Statement
Term 1, Weeks 5–9 (CAPS) content
New words In this topic, learners will learn about THE ECONOMY. They will
and concepts look at:
circular flow; closed • the participants in the circular flow of a closed economy
economy; factor
market; circular
• flow of goods and services, money and factors of production in
the circular flow of a closed economy
flow diagram
• a flow diagram of a circular flow model
Resources
Gather your resources and teaching content from Grade 8 as you will
need to recap Grade 8 work before you start teaching this topic. Recap
content on the role of households, businesses and the government in
the economy and on the goods and services and factor markets, as this
information is the foundation for your teaching of the circular flow.
Try to find new resources on this content to supplement your existing
resources.

You may want to give the learners large sheets of newsprint for
Activities 5.2 and 5.3 as they will need to draw their own circular
flow diagrams.

Preparation
• Read through the topic and familiarise yourself with the content
that you will need to teach. Think about what learners may
already know about the topics, what skills they already have and
any areas of difficulty that you think they might encounter.
• Work through your Grade 8 teaching content and resources for
the sections you will recap in Lesson 5.
• Read your informal assessment notes from Grade 8 to remind
yourself about where your learners were developmentally when
they covered this work last year. Use this information to assess the
learners informally again during this topic.
• Use your Grade 8 teaching notes to remind yourself about content
that learners struggled with last year. Assess whether they have
mastered the content when you recap it in Lesson 5, and prepare
to re-teach trouble spots if necessary.
• Gather your resources from Grade 8 and your new resources for
Grade 9 and plan how you will integrate them into your teaching.

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Teaching the topic
There are 5 lessons in this topic.
Lesson Week Pages Activities
5 5 68 —
6 6 68 —
7 7 69 5.1
8 8 69 5.2
9 9 69 5.3

Lesson 5
• The work you taught in Grade 8 on the role of households, businesses
and the government in the economy, and the goods and services
and factor markets are an essential part of learners’ understanding
of the circular flow. You will need to ensure that the learners recall
that information by recapping Grade 8 content this week.
• Start by recapping the role of households, businesses and the
government in the economy, using the text and photo in the
Learner’s Book page 48 and your Grade 8 material.
• You may want to use class quizzes in your recap to make it
more fun for the learners, and to reward those who recall and
understand what they learnt last year.
• Question the learners frequently to assess what they have
remembered, so that you can re-teach content if necessary.
• Recap the goods and services and factor markets with the learners
using the text and photos in the Learner’s Book page 49 and your
Grade 8 notes and resources.
• Introduce the concept of the circular flow.

Lesson 6
• Recap the definition of the circular flow from Lesson 5.
• Ask learners if they know what a closed economy is. Explain that
this is largely a theoretical concept because most countries today
trade with other countries in some way.
• Ensure that learners understand that the circular flow diagram
is based on a closed economy for simplicity’s sake, and that the
flow is just a model to illustrate concepts. It is not an accurate
reflection of how economies work in reality. Explain that a model
is a representation, for example a model airplane is not a real
airplane, just a representation of one.
• Work through the participants in the circular flow model in the
spider diagram in Figure 5.3 of the Learner’s Book.

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Lesson 7
• Recap the participants in the circular flow from Lesson 6.
• Do Activity 5.1.
• Allow enough time for learners to do this activity in class and
work through the answers as a class.
• Discuss the three diagrams in Figure 5.4 of the Learner’s Book.

Lesson 8
• Recap the flow of goods and services from Lesson 7.
• Do Activity 5.2.
• Allow enough time for learners to do this activity in class.
• Introduce the idea that the flows that you have discussed so far do
not happen in isolation, do not stop and that the participants in
the flows rely on one another.
• Work through Figure 5.6 in the Learner’s Book with the learners,
ensuring that they understand that the diagram is a combination
of the three diagrams in Figure 5.4 of the Learner’s Book.
• Let learners draw their own diagrams on large sheets of newsprint
in groups.

Lesson 9
• Recap the circular flow diagram from Lesson 8.
• Work through the analysis of Figure 5.6 in the text that follows
the diagram in the Learner’s Book page 55.
• Do Activity 5.3.
• Allow enough time for learners to do this activity in class so that
you can help the learners if they get stuck.

Answers
Activity 5.1
1.–7. Lower order (10)
1. produce ✔; sell ✔; distribute ✔
2. profit ✔
3. produce ✔
4. earn ✔
5. spend ✔
6. collects ✔; taxes ✔
7. spends ✔

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Activity 5.2
1. Middle order (4)
Learners have their own discussions and make notes. Their notes
could mention that money flows from consumers to Malika’s
business ✔; from Malika’s business to the delivery driver and
flower arranger through salaries; ✔ from Malika’s business to
the government in the form of tax; ✔ from consumers to the
government in the form of the VAT that consumers pay when
they buy Malika’s flowers; ✔ and so on.
Learners’ diagrams could look like this:

2. Higher order (13)


Learners draw their own diagrams of what they have discussed
and written. Accept any reasonable diagram that shows realistic
relationships between concepts. The aim is to lead the learners
towards drawing their own circular flow diagrams. So, ideally the
diagrams should resemble the one in Figure 5.6 of the Learner’s
Book page 54.

Activity 5.3
1. Higher order (20)
Learners’ situations will vary, as will their answers. They work
alone on this activity to make their notes relevant to their lives
and personal experiences. Be sensitive to learners whose parents or
caregivers may be unemployed. Help them to see that social grants

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are also a form of income, if their families receive social grants.
Otherwise, give them some alternatives of your own, such as the
example of the nursing job or any similar example. Be available to
assist them quietly and confidentially if necessary.
Learners’ answers could read as follows:
My brother is my caregiver. ✔ He works for a large cellphone
company. ✔ Money flows from his company in the form of his
salary to our household. ✔ He pays tax on his salary, so money
flows from my brother to the government through this direct
tax. ✔ He buys groceries and pays our rent, so money flows from
our household to businesses such as supermarkets. ✔ Part of this
spending is tax such as VAT, so money flows from our household
to the government in the form of these indirect taxes. ✔ Before
my brother was employed, we received a social grant, so money
flowed from the government to our household. ✔
Learners use their notes to draw their own circular flow models.
Award 13 marks for the diagrams as per Activity 5.2 Q2. As
example of the diagram is as follows:

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For information Informal assessment
on Informal
assessment, refer to Activity 5.1: Observe the learners’ ability to focus on individual
the self-assessment, work. Make notes of your observations. (no marks)
peer assessment and
group assessment
Activity 5.2: Take in the learners’ answers and mark them.
templates in Observe the pair interactions and make notes of what you see. (17)
Section 5 of this Activity 5.3: Observe how well the learners are able to focus
Teacher’s Guide. on their own work and motivate themselves to work outside of a
group situation. Take the answers in and mark them. (20)

Consolidation
• Name the participants in the circular flow.
– households
– businesses
– the government
– the goods and services market
– the factor market
• Explain a closed economy.
A closed economy is an economy that does not trade or interact
with other economies at all. There are no exports or imports in a
closed economy; it is self-sufficient.
• Define the circular flow model.
The circular flow is a model that describes the movement of
money through the economy between participants.

Extension
Explain why we say that the circular flow model is a model of how
money, goods and services flow through the economy.
We say this because the circular flow is just a simple model of how
money flows through the economy. It is based on the following
assumptions, which are not a true reflection of economic reality:
• Households spend all of the income that they earn on goods and
services – they do not save any money.
• Households purchase all of the goods and services that businesses
produce.
The model uses a closed economy to show that households consume
all of the goods and services that businesses produce (no goods or
services come from other economies) and that businesses only get
the factors of production they need from the households. In the real
world, we know that this is not the case.

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Revision Term 1
Learner’s Book pages 57—60

Topic 2: CRJ and CPJ (sole trader)


Activity 1: Revise the CRJ and CPJ of a sole trader
Middle order

Cash Receipts Journal of Check-my-figure for September 2019 CRJ4


Doc. Day Details Fol. Analysis of Bank Sales Cost of Current Sundry accounts
no. receipts sales income
Amount Fol. Details
Services
CRR 05 rendered ✔ 2 500 00 2 500 00

CRR Sales ✔ 1 667 00 4 167 00 1 667 00 1 250 25


Services
CRR 19 rendered ✔ 3 050 00 3 050 00

CRR Sales ✔ 1 215 00 4 265 00 1 215 00 911 25


Services
CRR 28 rendered ✔ 7 965 00 7 965 00 7 965 00
Rent
23 30 P Bosman ✔ 650 00 650 00 N4 income

CRR Sales ✔ 4 224 00 4 224 00 3 168 00


Services
CRR rendered ✔ 906 00 5 780 00 906 00
22 177 00 7 106 00 5 329 50 14 421 00 650 00
B6 N1 N2/B5 N3

Cash Payments Journal of Check-my-figure for September 2019 CPJ4


Doc. Day Name of Fol. Bank Trading Consumable Wages Sundry accounts
no. payee stock goods
Amount Fol. Details
Check-it
324 02 Centre ✔ 4 950 00 4 950 00 N7 Rent expense
Cleansing
325 04 Suppliers ✔ 3 560 00 3 560 00 B4 Equipment
The Writer’s
326 09 Shoppe ✔ 557 00 557 00 N8 Stationery
Natural
Health
327 11 Shoppe ✔ 2 716 00 1 793 00 923 00
328 14 Cash ✔ 2 590 00 2 590 00
329 16 Zest Fitness ✔ 1 850 00 1 850 00 B4 Equipment
330 22 A Gilliland ✔ 850 00 850 00 B2 Drawings
Rooibos
331 25 Health ✔ 4 640 00 3 845 00 795 00
332 28 Cash ✔ 2 800 00 2 800 00
Water and
333 29 Municipality ✔ 556 00 556 00 N9 electricity
25 069 00 5 638 00 1 718 00 5 390 00 12 323 00
B6 B5 N6 N5

(18)

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Topic 3: Economic systems
Activity 2: Revise economic systems
2.1 Define an economic system. (3) Lower order
An economic system is a system that a country chooses ✔ to
allocate its resources ✔ and distribute its goods and resources. ✔
2.2 Explain what the economic problem is. (2) Lower order
The economic problem is how to meet the endless wants and
needs of people ✔ with limited resources. ✔
2.3 Name and explain the characteristics of the three main
economic systems. (30) Middle order
In a planned economy, ✔ the government owns the land and
natural resources, the factories and the farms. ✔ People are
not allowed to own property. ✔ The government decides what
should be produced and how much it should be sold for. ✔ The
government also decides who gets how much of what is produced.
✔ So, there is no competition with businesses offering goods and
services at different prices. ✔ This kind of economy is based on
the idea that every worker should do the job he or she is able to
do and they should get what they need to live. ✔ In a planned
economy, workers don’t have a choice about what they want to
do. ✔ Government gives workers everything they need to live,
including their food. ✔ This system is also called a command
economy or directed economy. ✔
The aim of business in a market economy ✔ is to make a profit.
✔ The government’s purpose is to allow business to make a profit.
✔ Entrepreneurs decide what goods and services to produce and
how much to charge for them based on what they think people
want and are willing to pay. ✔ Businesses and people borrow
money from banks and investors. ✔ Workers can choose what
kind of work they do and who they want to work for. ✔ So, in
a market economy, consumers, the government and businesses
spend money on goods and services. ✔ Workers and businesses
make money from producing goods and services. ✔ The
government makes money from taxes ✔ and spends money on
public services. ✔
In a mixed economy, ✔ capital comes from banks, shareholders
and the government through spending of taxes. ✔ Entrepreneurs
decide what to produce. ✔ The government spends taxes on
education, housing and clean water, for example. ✔ It also passes
laws to control certain economic activity. ✔ Most countries in
the world today have a mixed economy with different degrees of
government control. ✔ South Africa is a mixed economy. ✔ The
mixed economy has its origins in both the planned and the market
economy. ✔ Some countries felt that a middle way between the
two was the best way – they wanted to look after the welfare of
their citizens ✔ but still ensure balanced economic growth for all
by allowing private ownership of land and businesses. ✔

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2.4 Give three advantages of each economic system you named in
Question 2.3. (9) Middle order

Advantages of planned economies (Any 3 × 1 = 3)


They can be very stable because they are closed systems.
They can stimulate growth in industry because the government
doesn’t have to wait for capital to accumulate before it makes
investments in heavy industry. The government can direct economic
resources to specific areas.
The government can direct economic resources to areas where they
are most needed.
They look after the welfare of all of the government’s citizens.
They are more focused on citizens’ welfare than on profit and growth.

Advantages of market economies (Any 3 × 1 = 3)


They are very flexible and can adapt quickly to change because
individuals don’t have to wait for the government to tell them how to
adapt.
Individuals can choose what they want to produce and how much they
want to produce goods for.
Consumers have a wide range of products and services to choose
from.
They reward innovation and technological development.
They are good for economic growth because capital flows naturally to
places where it gives the highest returns.
There is economic freedom, so if people work hard they are rewarded
and can improve their lives.

Advantages of mixed economies (Any 3 × 1 = 3)


They combine government and private businesses for good economic
growth.
The government works to encourage the economy to grow in a
balanced way so incomes are more equal than in market economies.
They encourage private businesses to make contributions to citizens’
welfare.
They promote competition but protect citizens too.

2.5 Give two disadvantages of each economic system you named in


Question 2.3. (6) Middle order

Disadvantages of planned economies (Any 2 × 1 = 2)


They can limit economic growth and innovation as there is no
entrepreneurship.
There is no freedom of choice for consumers. Directing what
consumers want does not always work. For example, consumers
have few choices about which products to buy — the government
makes a limited range of things like clothing and foods available, and
consumers have to buy what the government makes available.
They are inflexible systems that cannot adapt to change quickly.
There is no incentive for people to do their jobs well.
It is difficult to motivate workers to excel.

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Disadvantages of market economies (Any 2 × 1 = 2)
There are large differences between the wealth of citizens — some get
rich while others stay poor.
They focus on profit rather than on the welfare of citizens.
The government controls the economy as little as possible, so big
businesses can have too much control.
They make products and services available to consumers that may
harm consumers.

Disadvantages of mixed economies (Any 2 × 1 = 2)


Economic growth can be limited because the government allocates
lots of resources to citizens’ welfare.
Heavy government involvement in the economy through regulation
makes them bureaucratic and open to corruption.

2.6 Explain what the global economy is. (3) Lower order
The global economy is the economy of the world formed ✔ by
interlinked national economies ✔ that all affect each other. ✔

Topic 4: General Ledger and Trial Balance


Activity 3: Revise opening and balancing GL accounts
3.1–3.2 Middle and Higher order
Learners should first calculate the missing amounts in the CRJ and
CPJ: The activity doesn’t give the profit margin, so calculate that first:
Profit = R10 800 – R7 500 = R3 300
​ 3 300 ​ × 100 = 44%
Profit % = _____
7 500
Then calculate the Sales amount:
​ 144 
Sales = ____  ​× R4 850 = R6 984
100
Calculate the Bank amount.
R12 750 + R6 984 = R19 734
Calculate the Trading stock amount.
R12 479 – R1 200 – R915 – R3 480 = R6 884
General Ledger of Top Carpets
Balance Sheet accounts
Dr Capital B1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
Aug 01 Balance b/d ✔ 35 469 00
25 Bank CRJ8 ✔ 12 000 00
✔ 47 469 00

Dr Equipment B2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
Aug 01 Balance b/d ✔ 12 542 00
23 Bank CPJ8 ✔ 2 134 00
✔ 14 676 00

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Dr Trading Stock B3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013 2013
Aug 01 Balance ✔ b/d 6 754 00 Aug 31 Cost of sales ✔ CRJ8 4 850 00
31 Bank ✔ CPJ8 6 884 00 Balance ✔ c/d 8 788 00
13 638 00 13 638 00
2013
Sept 01 Balance ✔ b/d 8 788 00

Dr Bank B4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013 2013
Aug 01 Balance ✔ b/d 8 775 00 Aug 31 Total payments ✔ CPJ8 12 479 00
31 Total receipts ✔ CRJ8 19 734 00 Balance ✔ c/d 16 030 00
28 509 00 28 509 00
2013
Sept 01 Balance ✔ b/d 16 030 00

Nominal accounts
Dr Sales N1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
Aug 01 Balance b/d ✔ 10 800 00
31 Bank CRJ8 ✔ 6 984 00
✔ 17 784 00

Dr Cost of Sales N2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
Aug 01 Balance b/d ✔ 7 500 00
31 Trading stock CPJ8 ✔ 4 850 00
✔ 12 350 00

Dr Rent Income N3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
Aug 01 Balance b/d ✔ 3 500 00
05 Bank CRJ8 ✔ 750 00
✔ 4 250 00

Dr Stationery N4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
Aug 01 Balance b/d ✔ 425 00
13 Bank CPJ8 ✔ 91 00
✔ 516 00

(28)

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Activity 4: Revise the GL and TB of a sole trader
4.1 Lower order; 4.2 Middle order
General Ledger of Check-my-figure
Balance Sheet accounts
Dr Capital B1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
Sep 01 Balance b/d ✔ 150 171 00

Dr Drawings B2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
Sep 01 Balance b/d ✔ 3 850 00
22 Bank CPJ4 ✔ 850 00
✔ 4 700 00

Dr Vehicles B3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
Sep 01 Balance b/d ✔ 84 065 00

Dr Equipment B4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
Sep 01 Balance b/d ✔ 51 250 00
04 Bank CPJ4 ✔ 3 560 00
16 Bank CPJ4 ✔ 1 850 00
56 660 00

Dr Trading Stock B5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019 2019
Sep 01 Balance ✔ b/d 4 820 00 Sep 30 Cost of sales ✔ CRJ4 5 329 50
30 Bank ✔ CPJ4 5 638 00 Balance ✔ c/d 5 128 50
10 458 00 10 458 00
2019
Oct 01 Balance ✔ b/d 5 128 50

Dr Bank B6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019 2019
Sep 01 Balance ✔ b/d 25 709 00 Sep 30 Total payments ✔ CPJ4 25 069 00
30 Total receipts ✔ CRJ4 22 177 00 Balance ✔ c/d 22 817 00
47 886 00 47 886 00
2019
Oct 01 Balance ✔ b/d 22 817 00

Dr Cash Float B7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
Sep 01 Balance b/d ✔ 400 00

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Nominal accounts
Dr Sales N1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
Sep 01 Balance b/d ✔ 18 080 00
30 Bank CRJ4 ✔ 7 106 00
✔ 25 186 00

Dr Cost of Sales N2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
Sep 01 Balance b/d ✔ 13 560 00
30 Trading stock CRJ4 ✔ 5 329 50
✔ 18 889 50

Dr Current Income N3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
Sep 01 Balance b/d ✔ 36 130 00
30 Bank CRJ4 ✔ 14 421 00
✔ 50 551 00

Dr Rent Income N4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
Sep 01 Balance b/d ✔ 1 408 00
30 Bank CRJ4 ✔ 650 00
✔ 2 058 00

Dr Wages N5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
Sep 01 Balance b/d ✔ 2 410 00
30 Bank CPJ4 ✔ 5 390 00
✔ 7 800 00

Dr Consumable Goods N6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
Sep 01 Balance b/d ✔ 7 541 00
30 Bank CPJ4 ✔ 1 718 00
✔ 9 259 00

Dr Rent Expense N7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
Sep 01 Balance b/d ✔ 9 875 00
02 Bank CPJ4 ✔ 4 950 00
✔ 14 825 00

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Dr Stationery N8 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
Sep 01 Balance b/d ✔ 210 00
09 Bank CPJ4 ✔ 557 00
✔ 767 00

Dr Water and Electricity N9 Cr


Date Details Fol. Amount Date Details Fol. Amount
2019
Sep 01 Balance b/d ✔ 659 00
29 Bank CPJ4 ✔ 556 00
✔ 1 215 00

Dr Telephone N10 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
Sep 01 Balance b/d ✔ 1 440 00
(47)
4.3 Middle order
Trial Balance of Check-my-figure on 30 September 2019
Balance Sheet accounts Fol. Debit Credit
Capital B1 150 171 00 ✔
Drawings B2 4 700 00 ✔
Vehicles B3 84 065 00 ✔
Equipment B4 56 660 00 ✔
Trading stock B5 5 128 50 ✔
Bank B6 22 817 00 ✔
Cash float B7 400 00 ✔
Nominal accounts ✔
Sales N1 25 186 00 ✔
Cost of sales N2 18 889 50 ✔
Current income N3 50 551 00 ✔
Rent income N4 2 058 00 ✔
Wages N5 7 800 00 ✔
Consumable goods N6 9 259 00 ✔
Rent expense N7 14 825 00 ✔
Stationery N8 767 00 ✔
Water and electricity N9 1 215 00 ✔
Telephone N10 1 440 00 ✔
227 966 00 227 966 00

(18)
Topic 5: The circular flow
Activity 5: Revise the circular flow
5.1 Define the circular flow. (3) Lower order
The circular flow is a model ✔ that describes the movement of
money ✔ through the economy between participants. ✔
5.2 Explain why the circular flow is not an accurate reflection of
economic reality. (4) Middle order

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The model uses a closed economy ✔ to show that households
consume all of the goods and services that businesses produce
(no goods or services come from other economies) ✔ and that
businesses only get the factors of production they need from
the households. ✔ In the real world, we know that this is not
the case. ✔
5.3 State what governments consume in the circular flow. (2)
Lower order
They consume money from households and businesses ✔ through
tax. ✔
5.4 State what governments produce in the circular flow. (2)
Lower order
They produce goods and services ✔ for households and businesses
to buy. ✔
5.5 Who are the participants in the circular flow? (5) Lower order
• households ✔
• businesses ✔
• the government ✔
• the goods and services market ✔
• the factor market ✔
5.6 Explain the role of the markets in the circular flow. (4)
Lower order
The goods and services market in an economy is all of the places
where goods and services are exchanged in economic transactions.
✔ Households use their incomes to buy goods and services from
businesses and from the government on the goods and services
market. ✔ These goods and services are finished products that
businesses have produced using the factors of production. ✔
The factor market is where people buy and sell the services of
the factors of production themselves – land, capital, labour and
entrepreneurship. ✔
5.7 Why are factors of production important in the circular flow?
(2) Higher order
Without factors of production, businesses and the government
would not be able to produce goods or offer services ✔ to sell on
the goods and services market. ✔
5.8 Explain why the circular flow model is circular. (2)
Lower order
It is circular because the flow never stops ✔ and the participants
in the flow all rely on one another. ✔

TOTAL MARKS: 188

Formal assessment
For information on how to assess learner’s assignments, controlled
tests, case studies and projects, please see Section 3 of this
Teacher’s Guide.

LESSON BY LESSON  TERM 1 81

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GRADE 9 CONTROLLED TEST 1 TERM 1
TIME: 1 HOUR TOTAL: 100 MARKS

SECTION A
QUESTION 1 [20 marks; 12 minutes]
TASK
Answer the following questions.

1.1 Name the THREE economic systems and explain the main
characteristic of each.  (6)
1.2 Name TWO advantages of each economic system.  (6)
1.3 Name TWO disadvantages of each economic system.  (6)
1.4 Explain what the term global economy means.  (2)
[20]

QUESTION 2 [20 marks; 12 minutes]


TASK
Study the diagram below and then answer the questions.

2.1 Explain how money flows from households to businesses and


from businesses to households.  (8)
2.2 Explain why money flows out of the South African economy
when goods are imported.  (2)
2.3 Explain where households get the money from that they spend on
goods and services.  (4)
2.4 Who owns the factors of production?  (2)
2.5 How do foreign countries contribute to money flowing into the
South African economy?  (4)
[20]

The economic cycle

Government

Consumers/Households Factors of production Producers/Businesses

Goods and services

Goods and services

Foreign sector

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SECTION B
QUESTION 3 [8 marks; 5 minutes]
TASK
Answer the following questions.

3.1 Jerry buys a motorcycle for R15 000 and sells it to Tom for
R22 500. How much profit did Jerry make?  (2)
3.2 What percentage profit did Jerry make in the above transaction? (2)
3.3 Smurfie puts a 30% mark up on his fruit. He buys oranges at R10
a bag at the Johannesburg fresh fruit and vegetable market. How
much does Smurfie sell the bag of oranges for?  (2)
3.4 The hardware store sells paint at a mark-up of 60%. How much
do they buy the paint for if they sell it for R500?  (2)
[8]

QUESTION 4 [18 marks; 11 minutes]


TASK
Use the totals that are given below, calculate those that are missing
and set up the following accounts in the General Ledger of Clever
Dealers. Balance the accounts where required.
NOTE: The business uses a 50% mark-up on cost price.

TOTALS AS AT 31 MARCH 2014


CRJ: Bank R? Cost of sales R?
Sales R42 000 Sundry accounts R103 000
CPJ: Bank R71 507 Stationery R2 777
Trading stock R51 300 Sundry accounts R17 430 [18]
Bank

Trading Stock

Sales

LESSON BY LESSON  TERM 1 83

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Cost of Sales

QUESTION 5 [28 marks; 17 minutes]


S Deetlefs is the owner of Deetlefs Stores. During March 2014, the
following transactions occurred.

TASK
Enter the transactions in the Cash Receipts Journal and the Cash
Payments Journal. You do not need to close the journals.

Transactions for March 2014


01 Cash sales of merchandise, R8 400 (cost price R6 000).
03 S Deetlefs increases his capital contribution by paying in R30 000
with the cashier. Issue receipt no. 10.
05 Issue cheque no. 37 for R3 444 to Total Insurers in payment of
the annual insurance premium.
06 Pay the weekly wages, R1 500.
15 Receive a cheque from R Pretorius in payment of rental of a suite
of offices in the building, R4 800.
18 Issue a cheque for R8 900 to Fourie Dealers for the following:
merchandise R3 500, equipment R5 000, stationery of R400.
27 The owner takes R120 from petty cash for his own use.

Cash Receipts Journal of Deetlefs Stores for March 2014 CRJ3


Doc. Day Details Fol. Analysis of Bank Sales Cost of Sundry accounts
no. receipts sales
Amount Fol. Details

Cash Payments Journal of Deetlefs Stores for March 2014 CPJ3


Doc. Day Name of payee Fol. Bank Wages Trading Sundry accounts
no. stock
Amount Fol. Details

 [28]

84 LESSON BY LESSON  TERM 1

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QUESTION 6  [6 marks; 3 minutes]
TASK
Show the effect the following transaction has on the accounting
equation, and give reasons.
Sold merchandise (cost R750) for R1 000 cash.

ASSETS EQUITY
Effect Reason Effect Reason

[6]
 TOTAL: 100 MARKS

LESSON BY LESSON  TERM 1 85

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GRADE 9 CONTROLLED TEST 1: MEMO TERM 1
TIME: 1 HOUR TOTAL: 100 MARKS

SECTION A
QUESTION 1
1.1 Planned economy: ✔ the government owns, plans and controls all
the economic activities of a country. ✔
Market economy: ✔ in a free market economy, the owners of
private businesses are allowed to manage their businesses as they
wish, to make a profit. ✔
Mixed economy: ✔ the government, as well as people and
businesses, own the land and natural resources. ✔ (6)
1.2 Advantages of a planned economy:
• stable system, since it is a closed system
• government can direct economic resources to specific areas
• government can direct economic resources to where they are
most needed
• looks after the welfare of all the government’s citizens
• more focused on citizens’ welfare than on profit and
growth  (any✔✔)
Advantages of a market economy:
• very flexible and adaptable system
• individuals can choose what and how much they want to produce
• consumers have a wide range of products and services to
choose from
• innovation and technological development is rewarded
• good for economic growth because capital flows naturally to
places where it gives the highest returns
• there is economic freedom, so if people work hard they are
rewarded and can improve their lives (any✔✔)
Advantages of a mixed economy:
• combines government and private businesses for good
economic growth
• government works to encourage the economy to grow in
a balanced way so incomes are more equal than in market
economies
• encourages private businesses to make contributions to
citizens’ welfare
• promotes competition, but also protects citizens (any✔✔)
 (6)
1.3 Disadvantages of a planned economy:
• can limit economic growth and innovation as there is no
entrepreneurship
• no freedom of choice for consumers
• inflexible system that cannot adapt to change quickly
• there is no incentive for people to do their jobs well
• it is difficult to motivate workers to excel  (any ✔✔)

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Disadvantages of a market economy
• large differences between the wealth of citizens – some get rich
while others stay poor
• focus is on profit, rather than the welfare of citizens
• the government controls the economy as little as possible, so
big businesses can have too much control
• makes products and services available to consumers that may
harm consumers  (any✔✔)
Disadvantages of a mixed economy:
• economic growth can be limited, because the government
allocates lots of resources to the citizens’ welfare
• heavy government involvement in the economy through
regulation makes them bureaucratic and open to corruption
 (any✔✔)
 (6)
1.4 The global economy is the economy of the world ✔ formed by
interlinked national economies that all affect one another. ✔ (2)
[20]

QUESTION 2
2.1 Households own the factors of production, which they sell to
businesses in exchange for money. ✔✔ Businesses use these
factors of production to produce goods and services. ✔✔
Businesses pay the households for the factors of production in
the form of salaries and wages. ✔ The money flows from the
businesses to the households. ✔ Households use the salaries and
wages to purchase goods and services from producers to meet their
needs and desires. ✔ The money flows back to the producers. ✔
 (any 4 × 2 = 8)
2.2 Money flows out of the country when goods are imported, ✔
because money that could be spent in our country is now being
spent outside South Africa to buy goods. ✔ The revenue goes to a
different country, not South Africa. (2)
2.3 Salaries (monthly) and wages (weekly) ✔✔; state grants ✔✔
 (2 × 2 = 4)
2.4 Households ✔✔ (2)
2.5 Foreign countries help money flow into the economy by buying
goods and services from South Africa. ✔ This means that we
either export goods and services to other countries, or goods and
services ✔ are imported from South Africa over there. Foreign
countries pay for goods and services ✔ and the money flows into
our economy. ✔
 (4)
[20]

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SECTION B
QUESTION 3
3.1 Profit = Sales – Cost of Sales
= R22 500 – R15 000
= R7 500 ✔✔

R7 500 
3.2 ​ _______ ​ 
× 100 = 50% ✔✔
R15 000

130 ​ × 10 = R13 ✔✔
3.3 ​ ____
100

100 ​ × 500 = R312,50 ✔✔


3.4 ​ ____ [8]
160

QUESTION 4
General Ledger of Clever Dealers
Balance Sheet accounts
Dr Bank Cr
Date Details Fol. Amount Date Details Fol. Amount
2014 2014
Mar 31 Total receipts ✔ CRJ ✔✔ 145 000 00 Mar 31 Total payments ✔ CPJ ✔ 71 507 00
Balance c/d ✔ 73 493 00
145 000 00 145 000 00
2014
Apr 01 Balance b/d 73 493✔ 00
(7)

Dr Trading Stock Cr
Date Details Fol. Amount Date Details Fol. Amount
2014 2014
Mar 31 Bank ✔ CPJ ✔ 51 300 00 Mar 31 Cost of sales ✔ CRJ ✔✔ 28 000 00
Balance c/d ✔ 23 300 00
51 300 00 51 300 00
2014
Apr 01 Balance b/d 23 300✔ 00
(7)

Dr Sales Cr
Date Details Fol. Amount Date Details Fol. Amount
2014
Mar 31 Bank ✔ CRJ ✔ 42 000 00
(2)

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Dr Cost of Sales Cr
Date Details Fol. Amount Date Details Fol. Amount
2014
Mar 31 Trading stock ✔ CRJ ✔28 000 00
(2)
Dates and Folios: –1, max –2 [18]

QUESTION 5
Cash Receipts Journal of Deetlefs Stores for March 2014 CRJ3
Doc. Day Details Fol. Analysis of Bank Sales Cost of Sundry accounts
no. receipts sales
Amount Fol. Details

CRR 01 Sales ✔8 400,00 ✔8 400,00 ✔8 400,00 ✔6 000,00

10 03 S Deetlefs ✔30 000,00 ✔30 000,00 ✔30 000,00 Capital ✔


Rent
11 15 R Pretorius ✔4 800,00 ✔4 800,00 ✔4 800,00 income✔


(13)

Cash Payments Journal of Deetlefs Stores for March 2014 CPJ3


Doc. Day Name of payee Fol. Bank Wages Trading Sundry accounts
no. stock
Amount Fol. Details

37 05 Total Insurers ✔3 444,00 ✔3 444,00 Insurance ✔

38 06 Cash ✔1 500,00 ✔1 500,00

39 18 Fourie Dealers ✔8 900,00 ✔3 500,00 ✔5 000,00 Equipment ✔

✔400,00 Stationery ✔

40 27 Cash ✔120,00 ✔120,00 Drawings ✔

[15]
Mark the two columns together
[28]

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QUESTION 6
ASSETS EQUITY
Effect Reason Effect Reason
✔+1 000 Cash increases ✔ ✔+250 Profit✔

✔—750 Trading stock


decreases ✔

[6]
 TOTAL: 100 MARKS

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TERM 2

Topic
UnitLooking
Discover
1 back,
your looking
strengths
ahead
6
1 Learner’s Book pages 62—64
xx—xx Duration:
Duration 2 hours

Term and week/s Curriculum and Assessment Policy Statement


Term 2, Week 1 (CAPS) content
In this topic, learners will:
• revise what they learnt in Term 1
• get a brief glimpse of what they will learn in Term 2
Teaching the topic
• This is an opportunity to consolidate what the learners learnt
in the previous term. If learners are still struggling with some
concepts, give them additional activities or revision activities to
do. Those who understand the work well can help those who
are struggling.
• Encourage learners to draw mind maps (similar to those drawn in
this topic) to revise what they learnt in the previous term.
• Once you are comfortable that learners understand the content so
far, you may continue with the overview of the new term.
• When revising the new term, do not go into too much detail –
you need spend no more than 10–15 minutes on the overview.
• Mention to the learners that they may use the overview mind
map provided, and add their own notes during the term so that
they have a complete mind map of the term’s work by the end of
the term.

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Topic
UnitCredit
1 transactions: Debtors (1)
7 Learner’s Book pages 65—79 Duration: 6 hours

Term and week/s Curriculum and Assessment Policy Statement


Term 2, Weeks 2–7 (CAPS) content
New words In this topic, learners will learn about FINANCIAL LITERACY.
and concepts They will look at:
credit sales;
debtors; National
• credit sales
Credit Act; • debtors
debtors allowance; • the National Credit Act
creditworthy; • debtors allowance
credit limits; credit • the accounting cycle
agreement; terms • recording transactions in the Debtors Journal (DJ)
of credit; Debtors • recording receipts from debtors in the Cash Receipts Journal (CRJ)
Journal
Resources
Learners must each have an exercise book called an ‘Eight money
column’ or ‘Cash money column’ for the CRJ and a ‘Journal’ or
‘Treble Cash’ book for the DJ. Exercise books are also required for
the calculations. Photocopy the Cash Receipts Journal and Debtors
Journal templates found at the end of this guide if necessary.

A calculator for each learner is essential.

Preparation
• Read through the topic and familiarise yourself with the content
that you will need to teach. Think about what learners may
already know about the topics, what skills they already have and
any areas of difficulty that you think they might encounter.
• You should be aware of the differing needs of your learners by
now and learners already know how to record cash transactions in
a CRJ and CPJ. Consider the types of credit transactions learners
will encounter and decide how you are going to explain them to
your learners.

Teaching the topic


There are 6 lessons in this topic.
Lesson Week Pages Activities
2 2 93 7.1
3 3 93 7.2—7.3
4 4 94 7.4—7.5
5 5 94 7.6—7.7
6 6 94 7.8
7 7 94 —

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Lesson 2
• Refer to Figure 7.1 in the Learner’s Book and discuss what it
means to buy on credit and how you apply for credit. Discuss the
documents required to apply for credit. Find out what learners
understand about these concepts.
• Work through the text explaining the concepts about credit in
the Learner’s Book pages 65–66. Pay attention to the content that
learners are not familiar with.
• Discuss the advantages and disadvantages of credit to businesses
and to customers.
• Follow the example of Lamond Traders to explain the recording of
credit sales. The source document is an invoice. Show the invoice
on the board and remind learners how to fill it in.
• Remind learners what the definition of a debtor is and discuss the
National Credit Act and its implications.
• Explain what debtors allowance is and why businesses offer this
option. Use the example of J Doolan returning one pair of sandals
to Lamond Traders.
• Continue with the Lamond Traders example and introduce
recording transactions in the Debtors Journal. Show learners how
to record that invoice in the journal’s different columns and to
calculate the cost of sales (cost price).
• Discuss each step of the accounting cycle for credit transactions
in the Learner’s Book pages 70 –71 as you work through the
example. Refer to these steps as you go along, from the point
where a debtor places an order until the point where it is paid for.
• Do Activity 7.1.
• It is important that you explain to the learners that only CREDIT
SALES are entered into the Debtors Journal. Each transaction
(each invoice number) is recorded in the Sales column and the
Cost of sales column.
• As a control check, ensure that when the journal is completed, the
total of the Cost of sales column must be equal to the calculation
of the cost price of the Sales column.

Lesson 3
• Work through the example of Lamond Traders and J Doolan to
explain the recording of receipts in the CRJ. Discuss the steps
again. An invoice for goods sold was issued (entered in the DJ)
and J Doolan received a receipt for part payment of his account
(entered in the CRJ).
• Explain that this is a new transaction for the CRJ, when a debtor
pays his account. They will enter the amount in the Debtors
control column of the CRJ.
• Briefly discuss the term Debtors control account, which is opened
in the General Ledger when credit sales to debtors are entered (from
the DJ) and when payments from debtors are entered (from the
CRJ). The Debtors control account controls all the transactions of
the debtors in the Debtors Ledger. This is covered in Topic 12.
• Do Activities 7.2 and 7.3.

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Lesson 4
• Mark and check the previous activities.
• Do Activities 7.4 and 7.5.
• Learners can do these activities on their own or with a partner.
Assist those learners who are struggling while they work.

Lesson 5
• Mark and check the previous activities.
• Do Activities 7.6 and 7.7.

Lesson 6
• Mark and check the previous activities.
• Do Activity 7.8.

Lesson 7
• Use this lesson as an opportunity to mark, check and complete the
activities you’ve done during this topic.
• Spend time consolidating this content with learners, especially
those who are struggling. Give stronger learners a chance to do the
extension activity and give input where required.
• Learners must understand this content as it forms the basis for
Topic 12. Once they understand the DJ, it is easier to integrate
the knowledge for the CJ and Creditors control (Topics 13 and 15).

Answers
Activity 7.1
Middle order (8)
Debtors Journal of Trendy Stores for April 2013 DJ4
Doc. Day Debtor Fol. Sales Cost of sales
no.
01 04 G Jezi ✔ 382 80 ✔ 264 00
02 19 S Shumwe ✔ 1 595 00 ✔ 1 100 00
03 24 L Mene ✔ 1 371 70 ✔ 946 00
✔ 3 349 50 ✔ 2 310 00

Note that the Cost of sales has three entries, which added together
equal R2 310 (R264 + R1 100 + R946 = R2 310). This amount must
equal the calculation of the Cost of sales (cost price) of the total of
​ 100 ​ = R2 310).
Sales column (R3 349,50 × ____
145

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Activity 7.2
Middle order (16)

In this activity the CRJ is added. This is the first activity where
learners do a CRJ and a DJ together. So, they must remember to
allocate transactions to two journals:
• the DJ for all CREDIT SALES (goods sold on credit)
• the CRJ for all RECEIPTS (when a debtor pays his debt).
Point out that Activity 7.2 follows on from Activity 7.1, so the invoice
numbers must follow those of Activity 7.1.

Debtors Journal of Trendy Stores for May 2013 DJ2


Doc. Day Debtor Fol. Sales Cost of sales
no.
04 10 G Jezi ✔ 474 15 ✔ 327 00
05 17 S Shumwe ✔ 1 754 50 ✔ 1 210 00
06 30 L Mene ✔ 1 493 50 ✔ 1 030 00
✔ 3 722 15 ✔ 2 567 00 (8)

Cash Receipts Journal of Trendy Stores for May 2013 CRJ1


Doc. Day Details Fol. Analysis of Bank Debtors Sundry accounts
no. receipts control
Amount Fol. Details
001 02 G Jezi 382 80 ✔ 382 80 ✔ 382 80
002 21 S Shumwe 1 595 00 ✔ 1 595 00 ✔ 1 595 00
003 24 L Mene 1 371 70 ✔ 1 371 70 ✔ 1 371 70
✔ 3 349 50 ✔ 3 349 50 (8)

Activity 7.3
Middle order (15)
Choose one of the debtor’s accounts to discuss with learners. Refer to
the debtor’s credit limit and the credit term of 30 days.

1. G Jezi’s account is managed well. ✔ He kept within his credit


limit ✔ of R1 500 and paid his account within 30 days. ✔ (3)
2. The account of L Mene is managed ✔ well. His account is paid
within 30 days ✔ and the account is within his credit limit ✔ of
R1 500. (3)
3. The account of S Shumwe is not managed ✔ well. In April he
kept within the credit limit, ✔ but he did not pay his account
within the 30-day period. ✔ Yet Trendy Stores allowed him to
buy even more goods. S Shumwe also exceeded his credit limit. ✔
This is a risky situation and equates to irresponsible lending. ✔ (5)
4. Sales for April: R3 349,50 ✔ + Sales for May: R3 722,15 ✔–
Payments in May: R3 349,50 ✔ = Total owed by debtors on 31
May: R3 722,15. ✔ (4)

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Activity 7.4
Middle order (8)
Debtors Journal of Pestana Traders for June 2018 DJ1
Doc. Day Debtor Fol. Sales Cost of sales
no.
01 09 E Simpiwe ✔ 1 440 00 ✔ 900 00
02 15 W Dube ✔ 944 00 ✔ 590 00
03 27 W Tokani ✔ 720 00 ✔ 450 00
✔ 3 104 00 ✔ 1 940 00

Activity 7.5
Middle order (15)
Debtors Journal of Pestana Traders for July 2018 DJ2
Doc. Day Debtor Fol. Sales Cost of sales
no.
04 08 W Dube ✔ 230 00 ✔ 143 75
05 15 E Simpiwe ✔ 550 00 ✔ 343 75
06 31 W Tokani ✔ 820 00 ✔ 512 50
✔ 1 600 00 ✔ 1 000 00 (8)

Cash Receipts Journal of Pestana Traders for July 2018 CRJ2


Doc. Day Details Fol. Analysis of Bank Debtors Sundry accounts
no. receipts control Amount Fol. Details
25 02 E Simpiwe 1 200 00 ✔ 1 200 00 ✔ 1 200 00
26 22 W Tokani 720 00 ✔ 720 00 ✔ 720 00
27 25 W Dube 574 00 ✔ 574 00 ✔ 574 00
2 494 00 ✔ 2 494 00 (7)

Activity 7.6
1. Higher order (8)

Debtor W Dube E Simpiwe W Tokani

Invoice/Sales (+) +R944 ✔ R1 440 ✔ R720

OR +R230 ✔ —R1 200 ✔ —R720


Receipts/Payments (—) —R574 ✔ +R550 ✔ +R820

Total amount owed R600 ✔ R790 ✔ R820 (8)

2. Higher order (12)


a. The account of W Tokani is managed well, ✔ although it is
the account with the largest outstanding amount. ✔ W Tokani
paid his account within 30 days ✔ and he didn’t exceed his credit
limit. ✔ (4)
b. The account of W Dube is not managed well ✔ as he didn’t pay
his account within 30 days. ✔ Pestana Traders also allowed him to
exceed his credit limit. ✔ This is a risky situation and equates to
irresponsible lending. ✔ (4)
c. The account of E Simpiwe is not managed well. ✔ His account
is paid within 30 days, ✔ but not in full. Pestana Traders also
allowed him to buy more goods ✔ before his account was paid,
which was risky. ✔ (4)

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The purpose of this activity is to encourage learners to think about
debtors’ accounts. For example, how much the debtor owed the
business at the end of the month. The activity doesn’t need to
be completed in this format, as long as learners can calculate the
outstanding amounts owed by the debtors. Do the account of
W Dube with learners as an example and they can complete the
others on their own. Ensure learners understand that they must
add any sales and invoices and subtract payments or receipts.

Activity 7.7
Lower order (10)

Column A Column B
1. Credit ✔ D. Postponed payment
2. National Credit Act ✔ G. Discourages reckless lending
3. Debtors ✔ H. Current assets
4. Cash Receipts Journal F. Subsidiary journal for receipts of a
✔ debtor
5. Duplicate invoice ✔ J. Source document issued to a
debtor for goods sold
6. Granting credit ✔ A. To allow someone credit
7. Debtors Journal ✔ I. Subsidiary journal for sales to
debtors
8. Credit limit ✔ E. The rand value that a client can
spend/buy for
9. Receipts ✔ B. Source document issued to debtor
for payment received
10. Credit term ✔ C. How much time a client has to
repay a debt

Activity 7.8
1. Middle order (50)
Debtors Journal of Sijaji Traders for September 2019 DJ3
Doc. Day Debtor Fol. Sales Cost of sales
no.
113 03 E Trout ✔ 3 920 00 ✔ 3 136 00
114 08 V Sigingiqi ✔ 2 404 00 ✔ 1 923 20
115 12 E Trout ✔ 4 568 00 ✔ 3 654 40
116 16 S Sophi ✔ 1 900 00 ✔ 1 520 00
117 24 V Sigingiqi ✔ 3 860 00 ✔ 3 088 00
118 27 S Sophi ✔ 2 750 00 ✔ 2 200 00
✔ ✔ 19 402 00 ✔ 15 521 60 (15)

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Cash Receipts Journal of Sijaji Traders for September 2019 CRJ3
Doc. Day Details Fol. Analysis of Bank Sales Cost of Debtors Sundry accounts
no. receipts sales control
Amount Fol. Details
74 01 M Sijaji ✔8 500 00 8 500 00 Capital✔
CRR Sales ✔2 484 00 ✔10 984 00 ✔2 484 00 ✔1 987 20
75 09 E Trout ✔3 516 00 ✔3 516 00
CRR Sales ✔3 354 00 ✔6 870 00 ✔3 354 00 ✔2 683 20
V
76 15 Sigingiqi ✔3 588 00 ✔3 588 00
CRR Sales ✔2 626 00 ✔6 214 00 ✔2 626 00 ✔2 100 80
CRR 20 Sales ✔8 464 00 ✔8 464 00 ✔6 771 20
S Rent
77 Rivalland ✔2 598 00 ✔11 062 00 ✔2 598 00 income✔
V
78 26 Sigingiqi ✔2 800 00 ✔2 800 00 ✔2 800 00
79 30 E Trout ✔4 256 00 ✔4 256 00
80 S Sophi ✔2 881 00 ✔7 137 00 ✔2 881 00
✔ 45 067 00 16 928 00 13 542 40 17 041 00 ✔11 098 00 (35)

2. Higher order (25)


Debtor E Trout V Sigingiqi S Sophi
Opening balance ✔ 2 250 ✔ 3 222 ✔ 1 112
Transactions: Sales (+) or ✔ +3 920 ✔ +2 404 ✔ +1 900
Payments (—)
✔ —3 516 ✔ —3 588 ✔ +2 750
✔ +4 568 ✔ +3 860 ✔ —2 881
✔ —4 256 ✔ —2 800
Closing balance ✔ R2 966 ✔ R3 098 ✔ R2 881 (17)

Debtors’ accounts balances Control of debtors’ accounts


E Trout ✔ 2 966 Opening balance ✔ 6 584
V Sigingiqi ✔ 3 098 Total sales to debtors DJ ✔ +19 402
S Sophi ✔ 2 881 Total payments by debtors CRJ ✔ —17 041
✔ R8 945 Closing balance ✔ R8 945 (8)

Assist learners with the calculation of the amount paid by S Sophi on


the 30th: Balance of R1 112 + R1 900 + R2 750 = R5 762. If half of
​ R5 762
the account is paid: ______  ​  = R2 881 is paid. Learners can also do
2
Question 2 to calculate the outstanding amount.

When learners do the debtors’ schedule, they may need help.


The closing balance of each debtor is entered in the ‘Debtors’ accounts
balances’ table. This is added to reach a total amount. In the other
table, ‘Control of debtors’ accounts’, the opening balance is the total
owed by debtors at the beginning of the month; total sales is the total
from the DJ for the month; and total payments by debtors is the total
from the Debtors control column in the CRJ. The totals of these two
tables must be the same.

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Informal assessment When you do Activity 7.6, highlight
each figure in the previous activities so that
Activities 7.1—7.3: Do these activities
learners can clearly see where the figures
on the board and explain each transaction
come from.
as you work through them. Learners mark
The other two activities can also be
and check their own work. (39)
displayed on an overhead/data projector
Activities 7.4—7.6: Plan your board work and Activity 7.6 completed on the board
so that all three activities fit on the board, if using that information. (31)
possible. Complete each activity on the board
Activities 7.7—7.8: Learners mark their
and explain each transaction. Learners must
own work using a handout. Check each
check and mark their own work and correct
learner’s book while the others complete
any mistakes.
the activities. (85)

For information
Consolidation
on Informal Read the keywords, which would form part of a transaction, and
assessment, refer to decide in which journal each entry would appear. You must be
the self-assessment, able to distinguish between the DJ (credit sales), CRJ (receipts)
peer assessment and and the CPJ (payments).
group assessment
No. Keyword(s) Journal
templates in
Section 5 of this 1. Receipt issued CRJ
Teacher’s Guide. 2. Paid debt (to the business) CRJ
3. Cashed cheque CPJ
4. Invoice issued DJ
5. Payment; cheque issued CPJ
6. Purchased goods and paid CPJ
7. Paid by cheque CPJ
8. Cash sales; according to cash register roll CRJ
9. Merchandise sold on credit DJ
10. Settlement of an account CRJ
11. Sold merchandise for cash CRJ
12. Sold goods on credit DJ
13. Bought a computer and paid CPJ
14. Merchandise sold for cash CRJ
15. Received; in payment of an account CRJ
16. Received rent payment CRJ

Extension
Read through the transactions of Sports Wholesalers below and
record ONLY those that are applicable to the Debtors Journal and
Cash Receipts Journal for March 2012. Don’t close off the journals.
Sports Wholesalers trades in sports equipment and uses a mark-up of
80% on cost price.
Notes:
• Remember to exclude transactions that don’t belong in the DJ
and CRJ.
• It is considered unethical business practice to have a high mark-up
precentage. It is only used here for ease of calculation.

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The following information was taken from the business’s books:
Debtors List on 1 March 2012:
J Botha, R150 J Kallis, R88

Transactions for March 2012


01 H Amla, the owner, increases his capital contribution by R50 000.
Issued receipt no. 75.
Cash sales of R4 770 as per cash register roll.
03 G Smith bought goods for R225 and asked that they be charged
to his account. Issued invoice no. 125.
07 Issued cheque no. 023 in favour of Kyle Suppliers for the
following:
• Goods, R3 000
• Printer, R1 900
• Office stationery, R650.
13 J Kallis orders sport equipment, R522. Charge this to his account.
15 Issued a cheque to Dee Andra and received the following:
• Merchandise, R4 200 (less 5% trade discount)
• Equipment, R1 010
• Stationery, R650 (of which R300 was for the owner’s
personal use).
17 Received a cheque from J Botha to pay his debt as at
1 March 2012.
Cash sales of merchandise with a cost price of R3 520.
20 Issued a cheque in favour of SPM for R2 400. R700 was for rates
and taxes, R1 200 for water and electricity and the remainder for
the personal rates and taxes of the owner.
29 Cash sales of R5 346 (cost price R2 970).
Received a cheque from J Kallis in full payment of his account
to date.
30 Issued an invoice to J Kallis, R234 (cost price R130).

Cash Receipts Journal of Sports Wholesalers for March 2012 CRJ3


Doc. Day Details Fol. Analysis of Bank Sales Cost of Debtors Sundry accounts
no. receipts sales control
Amount Fol. Details

75 01 H Amla 50 000 00 50 000 00 Capital

CRR Sales 4 770 00 54 770 00 4 770 00 2 650 00

76 17 J Botha 150 00 150 00

CRR Sales 6 336 00 6 486 00 6 336 00 3 520 00

CRR 29 Sales 5 346 00 5 346 00 2 970 00

77 J Kallis 610 00 5 956 00 610 00

Debtors Journal of Sports Wholesalers for March 2012 DJ3


Doc. Day Debtor Fol. Sales Cost of sales
no.
125 03 G Smith 225 00 125 00
126 13 J Kallis 522 00 290 00
127 30 J Kallis 234 00 130 00

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Topic
UnitPrice
1 theory
8 Learner’s Book pages 80—94 Duration: 6 hours

Curriculum and Assessment Policy Statement


Term and week/s
Term 2, Weeks 2–7 (CAPS) content
In this topic, learners will learn about THE ECONOMY. They will
New words look at:
and concepts
price theory; law of • law of demand and a graphical illustration of the demand curve
demand; demand • law of supply and graphical illustration of the supply curve
curve; x-axis; y-axis; • equilibrium price and quantity
law of supply; • change in quantity demanded
supply curve; • change in quantity supplied
equilibrium price; • increase and decrease in demand
quantity demanded;
quantity supplied
• increase and decrease in supply
• graphical illustration of the change in demand and the change
in supply

Resources
This topic requires learners to become familiar with drawing the
demand and supply curves, so you may want to get lots of large
newsprint sheets so they can practise their skills.
Find local examples to illustrate the change in prices of goods and
services according to supply and demand in your area, using the
examples in the Learner’s Book as a guide.
Source news articles from magazines, the Internet and newspapers
about price changes, supply and demand. You could also find adverts
for seasonal goods and services and discuss how the prices of these
goods change at different times of the year such as heaters in winter;
fans in summer; tyre and car service prices around school holidays and
accommodation prices around the festive season. Ask the learners to bring
their own examples to class as well. Display them on a noticeboard.
Gather old newspapers and magazines that the learners can use to
source articles and adverts about supply and demand.

Preparation
• Read through the topic and familiarise yourself with the content
that you will need to teach. Think about what learners may
already know about the topics, what skills they already have and
any areas of difficulty that you think they might encounter.
• Learners may struggle with this content and you run the risk of
confusing them if you are not absolutely sure of your facts when you
teach. It is critical that you are familiar with the content and with
drawing supply and demand curves before you teach this topic.
You will need to be confident and authoritative in your teaching.

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• Extract the demand and supply graphs you will need from the
Learner’s Book and draw additional graphs to show your own
examples to supplement your teaching.
• Gather your articles and adverts. Plan how you will integrate them
into your teaching.
• Each week in this topic builds on content taught in the previous
week, so make sure that progression occurs and that the learners
understand each lesson’s work before you progress to the next lesson.

Teaching the topic


There are 6 lessons in this topic.
Lesson Week Pages Activities
2 2 102 —
3 3 102—103 8.1
4 4 103 —
5 5 103 8.2
6 6 103—104 8.3
7 7 104 8.4—8.6

Lesson 2
• Use the text on page 80 and the photograph in Figure 8.1 of the
Learner’s Book as a starting point for your discussion about price
theory.
• Ask learners to give some more examples of price changes in
response to demand for goods and services. Ask them to look out
over the next few weeks for adverts and articles about this and to
bring them to class.
• Work through the text in the Learner’s Book page 81 that defines
demand and the law of demand.
• If the learners have brought their own examples of articles and
adverts showing demand to class, discuss them. If you have old
newspapers or magazines that they can use, hand them out and let
them search for examples to discuss.
• If you have time, start introducing the demand curve.

Lesson 3
• Recap demand and the law of demand.
• Explain that economists use graphs to show the relationship
between demand, supply and price and that these graphs help us
to understand how businesses price goods and services.
• Work through the demand curve in Figure 8.2 of the Learner’s
Book with the learners. It may be easier for them to understand if
you draw the graph on the board or on a large sheet of newsprint,
teaching the elements as you draw them in.
• Analyse the demand curve using the points below Figure 8.2 in
the Learner’s Book page 82.
• Work through the cellphone example in Figure 8.3 of the
Learner’s Book.
• Teach the learners how to read data off the curve using the text
below Figure 8.3 in the Learner’s Book.

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• If there is time, use one of your own demand curve examples to
reinforce your teaching.
• Do Activity 8.1.

Lesson 4
• Recap demand, the law of demand and the demand curve.
• Give the learners some newsprint sheets and divide them into
groups. Ask them to draw a demand curve using units and
quantities that you give them.
• Ask the learners if, in the light of what they know about demand,
they can guess what supply is and how supply and price would be
related.
• Use the text and the illustrations in Figure 8.4 of the Learner’s
Book to teach supply and how supply influences prices.
• Ask the learners what they think would happen if supply is greater
than demand and if demand is greater than supply.
• Ask the learners if they can work out what the law of supply is,
knowing what they know about the law of demand.
• Explain the law of supply.

Lesson 5
• Use the graph in Figure 8.5 of the Learner’s Book to teach
the supply curve, using the same method as you used to teach
the demand curve. Draw the graph on the board or a sheet of
newsprint, explaining its elements as you draw them in.
• Analyse the supply curve using the points below Figure 8.5 in the
Learner’s Book pages 84–85.
• Work through the cellphone example in Figure 8.6 of the
Learner’s Book.
• Teach the learners how to read data off the curve using the text
below Figure 8.6 in the Learner’s Book page 85.
• If there is time, use one of your own supply curve examples to
reinforce your teaching.
• Do Activity 8.2.
• Allow time for the learners to complete this activity in class.

Lesson 6
• Recap demand, supply, the laws of demand and supply and the
demand and supply curves.
• You may want to leave some examples of demand and supply
curves visible on the classroom wall for a few weeks so that
learners can refer to them at any time during your teaching.
• Remind the learners that these curves form part of price theory.
Then teach the equilibrium price of a product.
• Using Figure 8.7 of the Learner’s Book, teach learners how to find
the equilibrium price and quantity using a graph.
• Work through Figure 8.8 of the Learner’s Book, showing the
equilibrium price and quantity for the cellphone example. Analyse
the graph using the points below Figure 8.8 in the Learner’s Book.

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• Do Activity 8.3.
• Allow time for the learners to complete this activity in class.
• Use Figure 8.9 in the Learner’s Book to teach movement along the
demand curve in response to a change in quantity demanded.
• Use Figure 8.10 in the Learner’s Book to teach movement along
the supply curve in response to a change in quantity supplied.

Lesson 7
• Recap equilibrium price and quantity, change in quantity
demanded and change in quantity supplied by revising the graphs
you taught in Lesson 6 to ensure progression.
• Do Activity 8.4.
• Continue by teaching increase and decrease in demand. Use
Figure 8.11 in the Learner’s Book to show what happens to the
demand curve when there is an increase and decrease in demand.
• Link the concepts of an increase or decrease in demand and an
increase or decrease in supply. Ask learners what they think will
happen to the supply curve if supply increases or decreases.
• Using Figure 8.12 in the Learner’s Book, teach the supply curve
shift that happens in response to an increase or decrease in supply.
• Do Activities 8.5 and 8.6.
• Allow time for the learners to complete these activites in class so
that you can help them if they get stuck.

Answers
Activity 8.1
Middle order (10)
Learners’ graphs should look like this:
y
R2 500
P2

R2 000
Price

R1 500

R1 000

R500
P1

x
15 000 30 000 45 000 60 000
Quantity

Award marks as follows:


• Two marks for the correct placement of and units on the
x-axis
• Two marks for the correct placement of and units on the
y-axis
• Two marks for the correct demand curve
• Two marks for P1 correctly shown
• Two marks for P2 correctly shown.

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Activity 8.2
1. Lower order (3)
Demand is the quantity of a good or service ✔ that consumers
want to buy ✔ when the good or service is at a specific price. ✔
2. Lower order (2)
Supply is how much of a good or service is available ✔ for
consumers to buy. ✔
3. Middle order (2)
Supply is high, ✔ so the price is low. ✔
4. Higher order (1)
Yes, there are clothes for winter and summer, and fashions or
trends also change regularly. ✔
5. Middle order (3)
When a shop has a sale, it lowers the prices of its goods. ✔ When
the price of goods is low, the quantity demanded will be high. ✔
By lowering the prices, the shop hopes to increase the demand for
its goods and so, sell more goods. ✔
6. Middle order (10)
Learners’ graphs should look like this:
y
R2 500
P2

R2 000
Price

R1 500

R1 000

R500
P1

x
15 000 30 000 45 000 60 000
Quantity

Award marks as follows:


• Two marks for the correct placement of and units on the
x-axis
• Two marks for the correct placement of and units on the
y-axis
• Two marks for the correct supply curve
• Two marks for P1 correctly shown
• Two marks for P2 correctly shown.
Activity 8.3
1. Lower order (1)
The price of a product when demand equals supply. ✔
2. Middle order (8)
Learners draw and label a graph like the one in Figure 8.7.
Award marks as follows:
• One mark for the x-axis correctly labelled
• One mark for the y-axis correctly labelled

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• Two marks for the demand curve
• Two marks for the supply curve
• Two marks for the indication of the price and quantity at
which the curves intersect

3. Higher order (10)


Learners’ graphs look like this:
y
R12

R10

Price in
R8
Rand

R6

R4

x
200 400 600 800 1000

Quantity

Award marks as follows:


• Two marks for the correct placement of and units on the
x-axis
• Two marks for the correct placement of and units on the
y-axis
• Two marks for the correct supply curve
• Two marks for the correct demand curve
• Two marks for the indication of the price and quantity at
which the curves intersect

4. Middle order (2)


The equilibrium price is R8 ✔ and the equilibrium quantity
is 600. ✔

Activity 8.4
1.–2.: Middle order (32)
1. a. Learners’ graphs should look like this:
y
R5 000

R4 500
Price

R4 000

R3 500

R3 000
Demand (D)
x
1 000 2 000 3 000 4 000 5 000
Quantity

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Award marks as follows:
• Two marks for the correct placement of and units on the
x-axis
• Two marks for the correct placement of and units on the
y-axis
• Two marks for the correct demand curve
• Four marks for the plotting lines correctly shown
• Two marks for the arrows showing the slope of the demand
curve (12)

b. The change in quantity demanded causes a movement along the


demand curve. ✔ For example, when the price of laptops is R3 000
(low), demand is high (5 000). ✔ But when the price of laptops
is R5 000 (high), demand is low (1 000). ✔ The movement
along the demand curve is shown by the arrows in the graph. ✔
As the price increases, the demand drops. (4)

2. a. Learners’ graphs should look like this:


y
Supply (S)
R5 000

R4 500
Price

R4 000

R3 500

R3 000

x
1 000 2 000 3 000 4 000 5 000
Quantity

Award marks as follows:


• Two marks for the correct placement of and units on the
x-axis
• Two marks for the correct placement of and units on the
y-axis
• Two marks for the correct supply curve
• Four marks for the plotting lines correctly shown
• Two marks for the arrows showing the slope of the supply
curve (12)

b. The change in quantity supplied causes a movement along the


supply curve. ✔ For example, when the price of laptops is R3 000
(low), supply is low (1 000). ✔ But when the price of laptops
is R5 000 (high), supply is high (5 000). ✔ The movement
along the supply curve is shown by the arrows in the graph.
✔ As the price increases, the supply increases, and suppliers are
willing to provide more. (4)

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Activity 8.5
1.–2.: Middle order (28)
1. Learners’ graphs should look like this:
y

Price (R)
P2

D2

D1
x
Q1 Q2
Quantity

Award marks as follows:


• Two marks for the correct placement of and labelling of the
x-axis
• Two marks for the correct placement of and labelling of the
y-axis
• Two marks for demand curve D1
• Two marks for demand curve D2
• Two marks for P1 correctly shown
• Two marks for Q1 and Q2 correctly shown
• Two marks for the arrows indicating the direction of the
demand curve shift. (14)
The graphs must show that the whole demand curve shifts to the right.

2. Learners’ graphs should look like this:


Shift in supply of citrus fruits

y S2

S1
Price (R)

P2

x
Q2 Q1
Quantity

Award marks as follows:


• Two marks for the correct placement of and labelling of the
x-axis
• Two marks for the correct placement of and labelling of the
y-axis
• Two marks for supply curve S1
• Two marks for supply curve S2
• Two marks for P1 correctly shown

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• Two marks for Q1 and Q2 correctly shown
• Two marks for the arrows indicating the direction of the
supply curve shift. (14)
The graphs must show that the whole supply curve shifts to the left.

Activity 8.6
1. Lower order (1)
Changes in the quantity that consumers demand are always
caused by a change in price. ✔
2. Middle order (13)
A change in quantity demanded causes movements up or down
the demand curve. ✔ Learners draw a rough diagram such as the
one in Figure 8.9 of the Learner’s Book to illustrate this.
Award marks as follows:
• Two marks for the correct placement of and units on the
x-axis
• Two marks for the correct placement of and units on the
y-axis
• Two marks for the correct demand curve
• Four marks for the plotting lines correctly shown
• Two marks for the arrows showing the slope of the demand
curve (12)
3. Lower order (1)
Changes in the quantity that producers supply are always caused
by a change in price. ✔
4. Middle order (13)
A change in quantity supplied causes movements up and down
the supply curve. ✔ Learners draw a rough diagram such as the
one in Figure 8.10 of the Learner’s Book to illustrate this.
Award marks as follows:
• Two marks for the correct placement of and units on the
x-axis
• Two marks for the correct placement of and units on the
y-axis
• Two marks for the correct supply curve
• Four marks for the plotting lines correctly shown
• Two marks for the arrows showing the slope of the supply
curve (12)
5. Higher order (29)
The demand and supply curves shift. ✔ Learners draw rough
diagrams such as Figures 8.11 and 8.12 of the Learner’s Book to
illustrate these shifts. Award marks for these graphs as per Activity
8.5, Questions 1 and 2 (14 + 14 = 28).

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Informal assessment demonstrates understanding. Use Activity
8.5 for peer assessment and allow learners
Activity 8.1: Observe the learners’ group
to check each other’s graphs and point out
interactions and make notes about how their
ways of representing the information more
ability to share information with a group is
accurately, if necessary. (103)
developing. (no marks)
Activity 8.6: Take in the learners’
Activities 8.2, 8.3, 8.4 and 8.5:
answers and mark them to assess how well
Take in the learners’ graphs and mark
the learners are able to work on their own.
them to ensure that they have interpreted
Observe them as they work to see how
the question information correctly and
focused they remain on the task. Be available
represented it graphically in a way that
to assist them if they get stuck.  (57)

Consolidation
For information
on Informal • Explain price theory.
assessment, refer to Price theory is the economic theory that states that the price of
the self-assessment, goods and services depends on the relationship between their
peer assessment and supply and their demand.
group assessment • State the laws of demand and supply.
templates in
Section 5 of this
The law of demand is a law in economics that states that
consumers buy more of a good or service when its price goes
Teacher’s Guide.
down, and less of a good or service when its price goes up.
Another way of explaining the law of demand is as follows: if the
supply of a good or service does not change, when demand goes
up price increases and when demand goes down price decreases.
The law of supply is a law that states that if demand stays the
same, when supply of a good or service increases its price drops,
and when supply of a good or service decreases its price goes up.
• Define equilibrium price.
Equilibrium price is the price of a product when demand
equals supply.
Extension
• Draw a supply and demand curve using the following
information and determine the equilibrium price and
quantity of skateboards.

Demand for skateboards Supply of skateboards


R150 1 500 R150 300
R300 1 200 R300 600
R450 900 R450 900
R600 600 R600 1 200
R750 300 R750 1 500

Learners’ graphs look like this:

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y
R750

R600

Price in
R450
Rand

R300

R150

300 600 900 1200 1500

Quantity x
The equilibrium price is R450 and the equilibrium quantity is 900.

Formal assessment
For information on Formal Assessment Task 2: Data response and on
how to assess learner’s assignments, controlled tests, case studies
and projects, please see Section 3 of this Teacher’s Guide.

Topic
UnitSectors
1 of the economy
9 Learner’s Book pages 95—105 Duration: 4 hours

Term and week/s


Curriculum and Assessment Policy Statement
Term 2, Weeks 8–9 (CAPS) content
New words In this topic, learners will learn about ENTREPRENEURSHIP. They
and concepts will look at:
primary sector; • the primary sector
secondary sector;
tertiary sector;
• the secondary sector
agricultural; • the tertiary sector
industrial; • types of businesses found in the three sectors
interrelationships; • the interrelationship of the three sectors
sustainability; • sustainable use of resources in the three sectors
skills levels • the role of the three sectors in the economy
• types of skills required in each sector
Resources
This topic recaps some of the content you taught in Grade 8. Reuse
your Grade 8 resources, such as articles about and pictures of the
different economic sectors and the businesses in them, and find new
ones to supplement your existing ones.

Make a list of some of the local businesses in your area and note
whether they are in the primary, secondary or tertiary sectors. Using

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local examples will be most effective for this topic. Make notes about
how the local businesses you have listed are interrelated.

You will be recapping sustainable resource use so have your resources


for renewable and non-renewable resources ready, or find new ones.

Gather articles and information about skilled, unskilled and semi-


skilled labour and sustainable resource use. Articles about developed
and developing countries and the role that the economic sectors play
in these countries will also be very helpful. Make a list of your own
examples of jobs that require skilled, semi-skilled and unskilled labour.

Preparation
• Read through the topic and familiarise yourself with the content
that you will need to teach. Think about what learners may
already know about the topics, what skills they already have and
any areas of difficulty that you think they might encounter.
• Revise what you have already taught the learners about the
primary, secondary and tertiary sectors and sustainable resource
use in Grade 8.

• Anticipate what your learners may know about different levels of


skills in the labour force. If most of your learners are fairly well-
off, they may be familiar with skilled and semi-skilled labour. If
your learners struggle with poverty, they may be more familiar
with unskilled labour positions. Prepare yourself for the kinds of
experiences your learners may have had so that you can teach this
content sensitively.
• Avoid stigmatising any type of labour in your teaching. Make sure
that your learners do not do so either.
• Gather your resources and plan how you will integrate them into
your teaching. Ask the learners to bring their own news articles
and resources to class that are relevant to this topic’s content.

Teaching the topic


There are 2 lessons in this topic.
Lesson Week Pages Activities
8 8 112—113 9.1
9 9 113 9.2—9.3

Lesson 8
• Start by recapping what the learners remember about the primary,
secondary and tertiary sectors from Grade 8, using the photos and
class discussion questions in the Learner’s Book page 95.
• You may want to use a class quiz to do this. Alternatively, allow
the learners to have a ten-minute group discussion about the three
sectors and to prepare some notes about what they remember to
present to the class.

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• Using your articles and picture resources, and the text and photos
in the Learner’s Book pages 96—98, recap the three sectors.
• Ask learners to provide their own examples of businesses in each
sector to contribute to the discussion.
• Do Activity 9.1.
• Allow time for the learners to complete this activity in class and to
report back in their groups.
• Use the diagrams in Figures 9.5, 9.6, 9.7 and 9.8 in the Learner’s
Book, and your own resources, to teach the interrelationship of
the three sectors.

Lesson 9
• Recap the three sectors and their interrelationship.
• Do Activity 9.2.
• Allow time for the learners to complete this activity in class and to
report back in their groups.
• Recap what the learners know about sustainable resource use,
renewable resources and non-renewable resources.
• Work through the text on sustainable use of resources in the three
sectors in the Learner’s Book page 102.
• Ask the learners if they know which sector most of the money
comes from in developed and developing countries. Ask them to
explain their answers. Use your own resources to discuss this.
• Work through the text on the role of the three sectors in the
economy in the Learner’s Book page 103.
• Ask the learners to name some of the jobs they know something
about. Write the list on the board. With the learners’ input,
classify the jobs according to the level of skills the learners think
people need to do each job.
• Use this classification and your own examples as a starting point
for teaching skilled, unskilled and semi-skilled labour.
• Work through the text in the Learner’s Book pages 103—105 on
the types of skills required in each sector and the levels of skills
that each sector requires.
• Do Activity 9.3.
• Allow time for the learners to start this activity in class and plan
their research and report-writing as homework.

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Answers
Activity 9.1
1., 2., 3b and c, 4.: Middle order; 3a and d: Higher order
1.–3. (14)
Learners give their own local examples and base their group discussion
and reports on the examples they chose. For example, if they live in
a rural wheat-farming area, they could answer the following as one
business example in Question 3:
a. The commercial wheat farms in this area need lots of fertile land;
✔ enough rainfall in winter ✔; cool temperatures in the growing
season ✔; fertilisers ✔; seed ✔; harvesters ✔; farm workers ✔,
and so on.
b. They produce wheat ✔, which they sell to mills such as Bokomo
Foods for processing. ✔
c. They work directly with ✔ natural resources, so they are primary-
sector industries. ✔
d. Without the wheat farmers, the mills such as Bokomo Foods
would have no inputs for producing their goods, which include
breakfast cereals. ✔ These secondary-sector industries would
not survive without the commercial wheat farmers. ✔ They
are also linked to retail industries in the tertiary sector because
retail businesses such as general dealers and supermarkets buy
manufactured foods from secondary-sector businesses such as
Bokomo. ✔ Without food suppliers, retail businesses would have
no goods to sell. ✔ Encourage learners to see connections between
all five of the businesses they chose for this question.
4. Learners use their answers in Question 3 a–d and streamline
them into an informal report that they can discuss with others
in the class. Award 8 marks for the contents of the report (one mark
for each point made) and two marks for report structure. (10)

Activity 9.2
1.–3.: Middle and Higher order (25)
There are two components to this activity: the group discussion and
the class presentation. Ensure that the learners discuss Question 2
creatively and critically. They should show evidence that they can
integrate and apply what they have learnt to their real-life experiences.
Encourage the groups to think of creative ways of portraying their
presentation information.
Learners recall what they discussed in Activity 9.1 about the
relationships between the businesses in different sectors in their area.
They apply this to their own lives. For example, in Question 2 learners
could say the following: If the wheat industry in the area collapsed
because the wheat crop failed due to drought, ✔ the commercial
farmers would not be able to continue financially. ✔ The price of
wheat would go up because it would be scarce, ✔ so Bokomo Foods
would have to pay a lot more for its production inputs. ✔ This

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would mean that they would have to charge more money for their
food goods, ✔ which would put financial pressure on consumers.
✔ Consumers would have to cut their spending in other areas to
afford food. ✔ So, they would spend less on important things such
as healthcare and education. ✔ Other industries, such as leisure,
entertainment and tourism, ✔ would suffer because people would
save their money to spend on essential goods instead. ✔
Encourage learners to choose a presentation format that they enjoy for
Question 3. They could use a formal report or something more creative
such as a short play. Ensure that all learners participate in the report-back
and that, whichever presentation format they choose, they still convey
information accurately and clearly. Award 10 marks for presentation
content and 5 marks for how the information was conveyed.

Activity 9.3
1.–2.: Higher order; 3. Middle order (15)
Learners refer to their work in Activity 9.1 and do independent
research, which they then correlate with their partners’ research to
prepare a short report.
Learners progress through Activities 9.1 and 9.2 and build on their
knowledge to research how skilled the labour is in different businesses
from different sectors. They focus on any two businesses that they
discussed in Activity 9.1. Make sure that this decision is democratic
and that dominant learners do not insist on researching their own
choices. They use the media centre; local library; Internet or local
universities and colleges or the school’s career guidance advisor to do
their research. Their research does not have to be exhaustive – they
are not aiming to find out exactly what they need to study and how
they need to qualify to work in the positions. They just need to assess
what the work entails and what skill level it requires. For example, a
commercial wheat farm requires high skill and expertise levels to plan
the farm’s operations and to determine when to plant and harvest.
There is also specialised equipment that needs operating and high-end
analysis of soil chemistry to be done. However, farm workers who
need to plough the fields to prepare for planting do not need to be as
skilled as the farm’s specialists.

Learners use their research to draft a short report, with an


introduction paragraph, two separate body paragraphs (one for each
business) and a concluding paragraph. Award 10 marks for report
content and 5 marks for structure and presentation.

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Informal assessment
Activity 9.1: Observe how well the learners interact in groups and
how fairly they contribute to the group work. Make notes about your
observations. Use the following rubric to assess the reports.

Rubric

Rating code Description of competence Percentage


7 Outstanding achievement: the report 80—100
covered all of the required areas fully,
showed evidence of thorough research
and understanding, was submitted on
time and was well written
6 Meritorious achievement: the report 70—79
covered all of the required areas with
most of the detail required, showed
evidence of good research and
understanding, was submitted on time
and was well written
5 Substantial achievement: the report 60—69
covered most of the required areas,
showed evidence of research and
understanding and was submitted
on time
4 Adequate achievement: the report 50—59
covered little of the required
information, showed little evidence
of research and understanding, was
submitted on time and contained a
few writing and presentation errors
3 Moderate achievement: the 40—49
report covered very little of the
required information, showed very
little evidence of research and
understanding, and contained
writing errors
2 Elementary achievement: the 30—39
report covered hardly any required
areas, showed almost no evidence
of research and understanding and
contained many writing errors
1 Not achieved: the report was not 0—29
submitted at all or was submitted late

Activity 9.2: Observe the group discussion and make notes on


each group’s performance, focusing on the content the learners
present as well as the way in which they present it. Reward fresh
and innovative ways of presenting the information. (no marks)

Activity 9.3: Take in the learners’ reports and mark them to


assess how well the learners are able to collaborate on a report.(15)

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For information Consolidation
on Informal • Describe the primary, secondary and tertiary sectors and give
assessment, refer to your own example of a business in each sector.
the self-assessment,
peer assessment and The primary sector is the economic sector in which businesses use
group assessment land and natural resources as raw materials.
templates in
Section 5 of this The secondary sector is the economic sector in which people use
Teacher’s Guide. raw materials from the primary sector to process or manufacture
things people can use.

The tertiary sector is the economic sector in which businesses offer


services to the public.

Learners give their own examples of a business in each sector.


• Which type of country makes most of its money from the
primary sector – a developing country or a developed
country? Explain.
A developing country, because more people work close to the
land in these countries, which are less industrialised than
developed countries.

Extension
Describe the connection between standard of living and the
tertiary sector.
The tertiary sector plays a larger role in the economies of developed
countries than in developing countries. This is because the standard
of living is higher in developed countries, so people can afford services
such as entertainment, tourism and media. In developing countries
where the standard of living is lower, many of the services in the
tertiary sector, such as restaurants, holiday accommodation, financial
services and entertainment are an unaffordable luxury.

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Revision Term 2
Learner’s Book pages 106—109

Topic 7: Credit transactions: Debtors (1)


Activity 1: Revise credit transactions with debtors

1.1–1.3 Middle order


Debtors Journal of Tonbren Traders for November 2015 DJ11
Doc. Day Debtor Fol. Sales Cost of sales
no.
89 04 F Abrahams ✔ 3 501 00 ✔ 2 625 75
90 13 A Carolus ✔ 4 563 00 ✔ 3 422 25
91 N Baard ✔ 3 582 00 ✔ 2 686 50
92 21 F Abrahams ✔ 5 152 00 ✔ 3 864 00
93 26 A Carolus ✔ 2 757 00 ✔ 2 067 75
19 555 00 14 666 25

(10)

Cash Receipts Journal of Tonbren Traders for November 2015 CRJ11


Doc. Day Details Fol. Analysis of Bank Sales Cost of Debtors Sundry accounts
no. receipts sales control
Amount Fol. Details
55 01 P Gahno ✔25 000 00 ✔25 000 00 Capital✔

56 N Baard ✔1 117 00 ✔26 117 00 ✔1 117 00

CRR 11 Sales ✔3 357 00 ✔3 357 00 ✔2 517 75

57 A Carolus ✔2 034 00 ✔5 391 00 ✔2 034 00


F
58 15 Abrahams ✔7 721 00 ✔7 721 00

CRR Sales ✔8 460 00 ✔16 181 00 ✔8 460 00 ✔6 345 00

CRR 24 Sales ✔448 00 ✔448 00 ✔336 00

59 A Carolus ✔4 250 00 ✔4 698 00 ✔4 250 00


Rent
60 30 S Jacobs ✔5 600 00 ✔5 600 00 income✔
F
61 Abrahams ✔2 420 00 ✔8 020 00 2 420 00
60 407 00 12 265 00 9 198 75 17 542 00 30 600 00

Calculation of the amount paid by F Abrahams on the 15th:


Balance (R4 220) + R3 501 = R7 721

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Cash Payments Journal of Tonbren Traders for November 2015 CPJ11
Doc. Day Name of payee Fol. Bank Trading Wages Sundry accounts
no. stock
Amount Fol. Details
221 02 Cash ✔4 330 00 ✔4 330 00
Water and
222 05 Municipality ✔866 00 ✔866 00 electricity✔
Jandre & Eugan
223 08 Stores ✔8 552 00 ✔8 552 00
224 10 Inkpencil ✔661 00 ✔661 00 Stationery✔
Jandre & Eugan
225 14 Stores ✔2 333 00 ✔2 333 00
226 16 Cash ✔4 330 00 ✔4 330 00
227 18 Telkom ✔1 023 00 ✔445 00 Drawings✔
✔578 00 Telephone✔
228 22 PC Answers ✔4 220 00 ✔4 220 00 Equipment✔
229 27 Goods-for-All ✔5 668 00 ✔5 202 00 ✔466 00 Drawings✔
230 30 Cash ✔4 330 00 ✔4 330 00
36 313 00 16 087 00 12 990 00 7 236 00

(67)

1.4 Higher order


Schedule of the debtors’ accounts.
Debtor F Abrahams N Baard A Carolus
Opening balance ✔ 4 220 ✔ 1 117 ✔ 3 434
Transactions: Sales (+) or ✔ +3 501 ✔ —1 117 ✔ —2 034
Payments(—)
✔ —7 721 ✔ +3 582 ✔ +4 563
✔ +5 152 ✔ —4 250
✔ —2 420 ✔ +2 757
Closing balance ✔ R2 732 ✔ R3 582 ✔ R4 470

Debtors’ accounts balances Control of debtors’ accounts


F Abrahams ✔ 2 732 Opening balance ✔ 8 771
N Baard ✔ 3 582 Total sales to debtors DJ ✔ +19 555
A Carolus ✔ 4 470 Total payments by debtors CRJ ✔ —17 542
R10 784 Closing balance ✔ R10 784

(23)

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Topic 8: Price theory
Activity 2: Revise price theory
2.1 Define price theory. (3) Lower order
Price theory is the economic theory ✔that states that the price of
goods and services ✔depends on the relationship between their
supply and their demand. ✔
2.2 According to price theory, which two factors influence the
price of goods and services? (2) Lower order
Supply ✔ and demand ✔
2.3 Define demand. Explain the law of demand. (7) Middle order
Demand is the quantity of a good or service that consumers want
to buy ✔ when the good or service is at a specific price. ✔ The
law of demand is a law in economics ✔ that states that consumers
buy more of a good or service ✔ when its price goes down, ✔ and
less of a good or service ✔ when its price goes up. ✔
2.4 Define supply. Explain the law of supply. (6) Middle order
Supply is how much of a good or service is available ✔for
consumers to buy. ✔ The law of supply is a law that states ✔ that
if demand stays the same, ✔ when supply of a good or service
increases its price drops, ✔ and when supply of a good or service
decreases its price goes up. ✔
2.5 Make a rough labelled drawing of a demand curve. Write some
notes to explain what the graph shows. (14) Middle order
Learners draw a graph that resembles Figure 8.2 of the Learner’s
Book. Their notes say something like this:
• You plot price on the y-axis ✔ and quantity on the x-axis. ✔
• When the price of a good or service is low (at P1), ✔ the
quantity demanded will be high (Q1). ✔
• When the price of a good or service is high (at P2), ✔ the
quantity demanded will be low (Q2). ✔
• The relationship between price and quantity demanded makes
a curve. ✔
Award the same number of marks for the presence of these notes
on the learners’ drawings.
2.6 Explain how demand curves and supply curves are different.
(2) Middle order
A demand curve is a graph showing how the demand for a good
or service and its price are related, ✔ whereas a supply curve is a
graph showing how the supply of a good or service and its price
are related. ✔
2.7 What happens to price when supply increases? (1) Lower order
Price drops. ✔
2.8 What happens to price when demand increases? (1)
Lower order
Price increases. ✔
2.9 Describe the equilibrium price of a good or service. (2)
Lower order
Equilibrium price is the price of a product ✔ when demand
equals supply. ✔

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2.10 Draw a rough labelled graph showing a good’s equilibrium
price and quantity. (10) Middle order
Learners’ diagrams should resemble the graph in Figure 8.7
of the Learner’s Book. Award marks for the following: axes
labelled correctly; ✔✔ demand curve the correct shape; ✔✔
supply curve the correct shape; ✔✔ demand and supply curves
intersect; ✔✔ plotting of the equilibrium point done correctly
to show a price on the y-axis and a quantity on the x-axis. ✔✔
2.11 Complete the following sentences. (4) Lower order
a. A change in quantity demanded causes a movement up or
down the demand curve. ✔
b. A change in quantity supplied causes a movement up or
down the supply curve. ✔
c. An increase or decrease in demand causes a shift of the
demand curve. ✔
d. An increase or decrease in supply causes a shift of the supply
curve. ✔

Topic 9: Sectors of the economy


Activity 3: Revise the sectors of the economy
3.1 What is an economic sector? (2) Lower order
It is a way of grouping business activities. ✔✔
3.2 Name and briefly explain the three economic sectors. (6)
Middle order
• Primary sector: ✔ the economic sector in which businesses
use land and natural resources as raw materials. ✔
• Secondary sector: ✔ the economic sector in which people
use raw materials from the primary sector to process or
manufacture things people can use. ✔
• Tertiary sector: ✔ the economic sector in which businesses
offer services to the public. ✔
3.3 Name three types of businesses in each of the economic sectors
you named in Question 3.2. (9) Middle order
• Primary sector: fishing, farming, mining ✔✔✔
• Secondary sector: food and drink factories, textile factories,
clothing manufacturers ✔✔✔
• Tertiary sector: banks, hospitals, hotels ✔✔✔
(any other correct answers)
3.4 The economic sectors are interrelated and depend on one
another for survival. Explain this statement. (8) Higher order
Businesses in the primary sector need other businesses to buy
their products. ✔ Businesses in the secondary sector need the raw
materials that the primary sector produces. ✔ Businesses in the
secondary sector make finished goods for another company to sell
or export. ✔ The secondary and tertiary sectors are also linked
to each other and to the primary sector. ✔ The tertiary sector
needs products from the primary sector. ✔ This is because the
tertiary sector uses what the secondary sector manufactures. ✔
No business can happen in any of the sectors if the primary sector

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does not supply food such as wheat, sugar and meat for workers in
all of the sectors to buy and eat. ✔ So, if one sector breaks down,
the other two sectors cannot work properly. ✔
3.5 Explain why the primary sector in particular needs to use
resources sustainably. (6) Middle order
The primary sector uses many resources, ✔ so it needs to be
extremely careful to use resources sustainably. ✔ If the resources
that the primary sector uses, such as soil, forests, water, coal, oil,
fish stocks and minerals, are used up, ✔ this sector will no longer
be able to provide raw materials ✔ for the secondary sector to use
✔ to produce goods. ✔
3.6 Describe the role the primary sector plays in the economies
of developed countries and of developing countries. (5)
Middle order
In poorer countries, most of the money comes from the primary
sector. ✔✔ This is because more people work close to the land.
✔ So, the primary sector plays a bigger role in the economies of
developing countries. ✔✔
3.7 Describe the role the tertiary sector plays in the economies
of developed countries and of developing countries. (5)
Middle order
In richer countries, most of the money comes from the tertiary
sector. ✔✔ This is because most people provide services to others.
✔✔ So, the tertiary sector plays a larger role in the economies of
developed countries. ✔
3.8 Briefly discuss the skill levels that the primary, secondary and
tertiary sectors require. (7) Middle order
In very general terms, the primary sector requires lower levels of
skills, ✔ such as the skills of unskilled workers; ✔ the secondary
sector ✔ requires the level of skills that semi-skilled workers have;
✔ and the tertiary sector ✔ requires the level of skills that skilled
workers have. ✔ However, this is not exclusively the case. ✔

TOTAL MARKS: 190

Formal assessment
For information on how to assess learners’ assignments, controlled
tests, examinations, case studies and projects, please see Section 3
of this Teacher’s Guide.

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GRADE 9 MID-YEAR EXAMINATION TERM 2
Practice Paper: MEMO
TIME: 1 HOUR TOTAL: 100 MARKS

SECTION A Learner’s Book pages 110—114


QUESTION 1
1.1 Mixed ✔✔
1.2 Market economy ✔✔
1.3 Exports ✔✔  (6)

QUESTION 2
2.1 True ✔✔
2.2 True ✔✔  (4)

QUESTION 3
Factor Demand Supply Price
e.g.: If a popular pop star Increases Increases Increases
dies, how will this affect
the market for his CDs?
3.1 Summer clothes are Decreases Decreases Decreases
sold at the end of the ✔ ✔ ✔
summer.
3.2 A large clothing store Increases Decreases Decreases
has a summer sale. ✔ ✔ ✔
3.3 It starts raining during Increases ✔ Increases ✔ Increases ✔
a Saturday outdoor market
day sale. How does this
affect the market for
umbrellas?
3.4 An extra supplier starts Remains Increases Decreases
selling umbrellas at the constant ✔ ✔ ✔
outdoor market day.

(12)

QUESTION 4
4.1 Primary sector:✔✔uses land and natural resources as raw
materials ✔✔
Secondary sector:✔✔uses raw materials from the primary sector
to process or manufacture things people can use ✔✔
Tertiary sector:✔✔offers services to the public ✔✔  (12)
4.2 Primary sector: mining, farming, forestry, fishing ✔✔
 (any 1 × 2 = 2)
Secondary sector: clothing manufacturers, car factories,
construction ✔✔ (any 1 × 2 = 2)
Tertiary sector: hospitals, schools, transportation services,
entertainment services ✔✔ (any 1 × 2 = 2)
 (6)
 [18]

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SECTION B
QUESTION 5
No. Source Journal Account Account Assets Equity
document debited credited
5.1 Cheque CPJ✔ Trading Bank✔  +12 000✔
counterfoil✔ stock✔  —12 000✔
5.2 Cash register CRJ✔ Bank ✔ Sales✔  +800✔  +800 or
roll✔  +250✔
Cost of Trading  —550✔  —550
sales✔ stock✔
5.3 Duplicate CRJ✔ Bank✔ Rent  +2 000✔  +2 000✔
receipt✔ income✔

(21)

QUESTION 6
Trial Balance of Rice Krispie Dealers on 31 October 2014
Balance Sheet accounts Fol. Debit Credit
Capital B1 ✔✔52 021
Drawings B2 ✔150
Equipment B3 ✔1 875
Vehicles B4 ✔12 500
Trading stock B5 ✔6 205
Bank B6 ✔23 802
Cash float B7 ✔50
Nominal accounts
Sales N1 ✔10 788
Cost of sales N2 ✔✔8 091
Salaries N3 ✔2 760
Wages N4 ✔4 510
Trading licence N5 ✔100
Rent expense N6 ✔2 400
Insurance N7 ✔80
Stationery N8 ✔286
62 809 62 809

 (17)

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QUESTION 7
684  ​ 
7.1 ​ _____ ×100 = 25% ✔✔  (2)
2 736
7.2
Debtors Journal of Gunz Dealers for July 2014 DJ7
Doc. Day Debtor Fol. Sales Cost of sales
no.
302 03 P Borman ✔960 00 ✔✔768 00
303 14 S Moll ✔720 00 ✔576 00
304 30 T Gomes ✔462 00 ✔369 60
305 S Moll ✔580 00 ✔464 00

(9)

Cash Receipts Journal of Gunz Dealers for July 2014 CRJ3


Doc. Day Details Fol. Analysis of Bank Sales Cost of sales Debtors
no. receipts control
909 03 S Moll ✔ 520 00 ✔ 520 00 ✔ 520 00

CRR 07 Sales ✔ 6 600 00 ✔ 6 600 00 ✔ 6 600 00 ✔ 5 280 00


910 21 P Borman ✔ 1 370 00 ✔✔ 1 370 00 ✔ 1 370 00

Doc. no. –1 Mark the two columns together (11)


[22]

 TOTAL: 100 MARKS

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TERM 3

Topic
UnitLooking
Discover
1 back,
your looking
strengths
ahead
10
1 Learner’s Book pages 116—119
xx—xx Duration:
Duration 2 hours

Term and week/s


Curriculum and Assessment Policy Statement
Term 3, Week 1 (CAPS) content
In this topic, learners will:
• revise what they learnt in Term 2
• get a brief glimpse of what they will learn in Term 3
Teaching the topic
• This is an opportunity to consolidate what the learners learnt
in the previous term. If learners are still struggling with some
concepts, give them additional activities or revision activities
to do. Those who understand the work well can help those who
are struggling.
• Encourage learners to draw mind maps (similar to those drawn in
this topic) to revise what they learnt in the previous term.
• Once you are comfortable that learners understand the content so
far, you may continue with the overview of the new term.
• When revising the new term, do not go into too much detail –
you need spend no more than 10–15 minutes on the overview.
• Mention to the learners that they may use the overview mind
map provided, and add their own notes during the term so that
they have a complete mind map of the term’s work by the end
of the term.

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Topic
UnitTrade
1 unions
11 Learner’s Book pages 120—129 Duration: 4 hours

Term and week/s


Curriculum and Assessment Policy Statement
Term 3, Weeks 2–5 (CAPS) content
New words In this topic, learners will learn about THE ECONOMY. They will
and concepts look at:
trade unions; • the concept of trade unions
negotiations; blue-
collar workers;
• a brief historical development of trade unions
white-collar • the roles and responsibilities of trade unions in South Africa
workers; tradesmen; • the effect of trade unions in businesses
COSATU; • the contribution of trade unions to sustainable growth and
collective development
bargaining;
retrenchment; Resources
strikes; workplace Gather pamphlets and news articles about trade unions from
forums; CCMA newspapers, magazines and the Internet. If there are trade union
offices in your area, visit them and collect information and brochures.
Alternatively, access their websites. The Congress of South African
Trade Unions (Cosatu) website is a good place to start: http://www.
cosatu.org.za/.

Find articles about industrial action in South Africa and in other


countries such as France, where industrial action happens quite
frequently. Research any industrial action that may have happened in
your area recently. Ask the trade unions involved what the dispute was
about and how it was resolved.

You will need old newspapers or Internet access for the learners for
Activity 11.1. This activity will also require materials for the learners
to make scrapbooks – large sheets of newsprint, pairs of scissors and
glue, and paint or coloured pencils if available.

Access a copy of the Labour Relations Act (LRA) and Constitution of


South Africa. If you have an Internet connection, find them here:
http://www.gov.za/documents/download.php?f=161934 (LRA)
http://www.gov.za/documents/constitution/1996/constitution.pdf
(Constitution). The Department of Labour’s website is a good
resource for this topic as well: https://www.labour.gov.za/.

If you do not have Internet access, contact your local government


office.

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Contact the Commission for Conciliation, Mediation and Arbitration
(CCMA) and ask them to provide information or brochures about
what they do: http://www.ccma.org.za/, 0861 16 16 16 or info@
ccma.org.za.

Preparation
• Read through the topic and familiarise yourself with the content
that you will need to teach. Think about what learners may
already know about the topics, what skills they already have and
any areas of difficulty that you think they might encounter.
• Gather your resources and plan how you will integrate them into
your teaching.
• Familiarise yourself with how a debate works for Activity 11.2,
if you do not know. If your school has a debating society, talk
to the teacher who runs it and find out about how to hold a
successful debate.

Teaching the topic


There are 4 lessons in this topic.
Lesson Week Pages Activities
2 2 128 11.1
3 3 128—129 11.2
4 4 129 —
5 5 129 11.3

Lesson 2
• Introduce the concept of trade unions by discussing your school’s
elected student council and what it does for learners. Link this to
the concept of trade unions and what they do for workers.
• Use one of your news articles about or photos of a recent strike,
preferably in your area, to continue the discussion on what trade
unions are. Show some pamphlets that you have collected from
trade union offices; pass them around so that the learners can look
at them and discuss them.
• Work through the text in the Learner’s Book page 121.
• Do Activity 11.1.
• Learners use class time to plan how they will find and speak to
trade union members and come up with ideas for their scrapbook
presentations.
• Set learners the homework task of finding and talking to a trade
union member before the next class.

Lesson 3
• Give learners some more time in class to work on Activity 11.1.
What they do not finish they need to complete for homework.
• Work through the text and timeline (Figure 11.4) in the Learner’s
Book page 123 showing the history of trade unions. Discuss the
history of trade unions using the photos in Figures 11.3 and 11.5
in the Learner’s Book.

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• Now that the learners know a little about trade unions, ask them
what they think the roles and responsibilities of trade unions are.
Write their suggestions on the board.
• Work through the text on the roles and responsibilities of trade
unions in the Learner’s Book pages 124—126.
• Do Activity 11.2.
• Learners work in small groups to discuss the importance of trade
unions and draw up their summary tables. Encourage them
to note any differences of opinion they may encounter for a
discussion in Lesson 4.

Lesson 4
• In this lesson, ask learners to think about the discussions they had
while doing Activity 11.2 in Lesson 3.
• Working as a class, have an informal debate/discussion about the
following two opposing points of view:
1. Labour law should protect workers enough for trade unions
not to be necessary. Trade unions are bad for the economy
because when they organise strikes, the country loses millions
of rands.
2. Trade unions are an essential part of labour law. Economic
growth can never be more important than workers’ rights.
• Conclude the discussion by encouraging the class to reach an
agreement.

Lesson 5
• Ask the learners to suggest some ways in which trade unions affect
businesses. Use your resources to supplement this discussion.
• Work through the text on the effects of trade unions on
businesses. Use your LRA, CCMA and SA Constitution resources
to supplement your teaching.
• Recap sustainable growth and development, then teach this
content in the Learner’s Book pages 127–128.
• Do Activity 11.3.
• Set this activity as homework if there is not enough time to
supervise it during class time.

Answers
Activity 11.1
1. Lower order (2)
Cosatu is the Congress of South African Trade Unions, ✔
a federation of many of the trade unions in South Africa. ✔
2. Middle order (5)
A trade union negotiates with employers for their members. ✔
A trade union is controlled, run and paid for by its members. ✔
Trade unions negotiate with employers to get the best deal for
their members ✔ in terms of hiring, firing, wages and working
conditions. ✔ They are organisations of workers that protect the
rights and promote the interests of their members. ✔

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3. Higher order (Any 5 × 1 = 5)
Learners give names such as Police and Prisons Civil Rights Union
(POPCRU), South African Democratic Nurses’ Union (SADNU);
Democratic Nursing Organisation of South Africa (DENOSA);
South African Democratic Teachers Union (SADTU); Southern
African Clothing and Textile Workers Union (SACTWU); Food
and Allied Workers Union (FAWU); National Education, Health
and Allied Workers’ Union (NEHAWU); National Union of
Mineworkers (NUM) and South African Transport and Allied
Workers Union (SATAWU).
4. Higher order (7)
Learners’ information will vary according to who they speak to
and the union they choose.
5. Higher order (10)
Encourage learners to present their information creatively and
attractively. Display the scrapbooks for other pairs to look at.
Award 8 marks for content display and 2 marks for attractive
presentation

Activity 11.2
1. Higher order (8)
Learners’ answers should make the following connections: In
developing countries, economies depend largely on the primary
sector. ✔ Many workers in this sector are unskilled or semi-
skilled. ✔ This means that they are easier to exploit. ✔ In South
Africa, the mining industry and the apartheid government
exploited mineworkers to enrich the country. ✔ These workers
had no political or economic rights. ✔ Trade unions empower
workers and help them to avoid being exploited ✔ by employers
who have more power than workers. ✔ This means that all of the
participants in the economy benefit from economic activity, and
not just employers. ✔
2. Middle order (14)
Learners’ tables should look like this:
Trade union roles Trade union responsibilities
Organise industrial action ✔ Negotiate with employers to
improve working conditions ✔
Negotiate with employers Try to attract new trade union
through collective bargaining to members ✔
improve working conditions ✔
Work to get the government to Not force anyone into joining a
pass laws that will improve their trade union ✔
members’ lives ✔
Provide professional training, Make decisions based on a
legal advice and legal secret vote by all their members
representation for their ✔
members ✔
Represent workers’ interests Ensure that industrial action is
during disputes with employers lawful and peaceful ✔

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Trade union roles Trade union responsibilities
Work with employers to get Make reasonable demands on
employees a greater say in the employers ✔
decisions that management
make ✔
Help to settle disputes between
employers and employees ✔
Help to bring about peaceful,
democratic workplaces ✔

Activity 11.3
1. Higher order (8)
Learners give their own examples. They mention that trade unions
make for an educated workforce ✔ that is respected and encouraged
to improve its skills. ✔ They ensure healthy dialogue between
workers and employers ✔ in an environment where the rights of
employers and employees are protected by law. ✔ By protecting
the rights of employers and employees, trade unions contribute to
sustainable growth and development. ✔ A business that exploits its
workers is not growing and developing sustainably. ✔ A business
that respects its workers and develops their skills ✔ is creating a
climate for sustainable growth and development. ✔
2. Middle order (16)
Learners mention the following: Trade unions have the potential
to have great effects on businesses. ✔ To know what these
effects are, businesses need to be familiar with the LRA and the
Constitution of South Africa. ✔ This legislation gives workers and
their unions the right to:
• Form, join and take part in a trade union ✔
• Settle disagreements with their employers through an
independent third party, the CCMA. The CCMA is an official
and independent group of people from the government,
organised business and organised labour ✔
• at the workplace for union reasons ✔
Be
• Elect trade union representatives at the workplace ✔
• Take time off for union activities ✔
• Access information for collective bargaining purposes ✔
• Strike, although not all strikes are protected by the Act. ✔
These trade union rights help to guide businesses and employees
in labour relations. ✔ The LRA makes labour legislation in South
Africa consistent with the International Labour Organisation’s
(ILO) international labour laws. ✔ Businesses need to ensure they
accommodate trade unions. ✔ So, they need to know about:
• Collective bargaining: A process that workers and businesses
use to negotiate about working conditions ✔
• Workplace forums: Employee forums that give employees a
say in how a business is run ✔
• Industrial action ✔
• Disciplinary action, including disputes and dismissals. ✔

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Informal assessment Activity 11.2: Make detailed notes of
learners’ abilities to analyse and tabulate
Activity 11.1: Observe the pair interactions
information. (12)
to make sure that learners are contributing
equally to the work required. Take in and Activity 11.3: Take in the learners’ answers
mark the scrapbooks. (29) and mark them to assess how well the
learners are able to work on their own. (24)

For information Consolidation


on Informal • Define a workplace forum.
assessment, refer to An employee forum that gives employees a say in how a business
the self-assessment, is run.
peer assessment and • Define the CCMA.
group assessment The Commission for Conciliation, Mediation and Arbitration
templates in
(CCMA) is an official and independent group of people from the
Section 5 of this
Teacher’s Guide.
government, organised business and organised labour. It helps
employees to settle disagreements with their employers through an
independent third party.
• List the responsibilities of trade unions.
Trade unions must:
— Negotiate with employers to improve their members’ working
conditions
— Try to attract new trade union members
— Not force anyone into joining a trade union
— Make decisions based on a secret vote by all their members
— Ensure that all industrial action is lawful and peaceful
— Make reasonable demands on the employers
— Help to settle disputes between employers and employees
— Help to bring about peaceful workplaces.
Extension
Find out about the ILO. Write a brief report about what it is, what
it does, what organisation it belongs to and why it was established.
Learners do their own research. They mention that the ILO is a
United Nations agency that draws up and enforces international
labour standards. It runs the International Labour Conference every
year and aims to ensure social justice for workers all over the world.

Formal assessment
For information on Formal Assessment Task 3: Project and on how
to assess learner’s assignments, controlled tests, case studies and
projects, please see Section 3 of this Teacher’s Guide.

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Topic
UnitCredit
1 transactions: Debtors (2)
12 Learner’s Book pages 130—154 Duration: 4 hours

Term and week/s Curriculum and Assessment Policy Statement


Term 3, Weeks 2–5 (CAPS) content
New words In this topic, learners will learn about FINANCIAL LITERACY.
and concepts They will look at:
Debtors Ledger;
posting; General
• posting to the Debtors Ledger and General Ledger
Ledger; Debtors • the effect of credit transactions on the accounting equation
List; debtors’
accounts; Debtors Resources
Control account Learners must each have an exercise book called an ‘Eight money
column’ or ‘Cash money column’ for the CRJ, and preferably a
‘Journal’ exercise book (with two money columns only) or a ‘Treble
Cash’ book for the DJ. They will need a Double Ledger book for the
General Ledger and a ‘Treble Cash’ book for the Debtors Ledger.

It works well if learners do the Debtors Ledger (Topic 15) in the


‘Treble Cash’ book and the Debtors Journal in the two-money
column ‘Journal’ book. This helps them not to get confused between
the Debtors Journal and the Debtors Ledger. Photocopy the Cash
Receipts Journal, Debtors Journal, Debtors Ledger and General
Ledger templates found at the end of this guide if necessary.

A calculator for each learner is essential.

Preparation
• Read through the topic and familiarise yourself with the content
that you will need to teach. Think about what learners may
already know about the topics, what skills they already have and
any areas of difficulty that you think they might encounter.
• The learners already know how to record transactions in a CRJ
and DJ. They also know how to post Journals to the General
Ledger. However, the three-column ledger will be new to them.
This may be challenging for them to master and you need to
consider how you plan to explain it.

Teaching the topic


There are 4 lessons in this topic.
Lesson Week Pages Activities
2 2 134 12.1
3 3 134—135 12.2
4 4 135 12.3
5 5 136 12.4—12.7

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Lesson 2
• Refer to Figure 12.1 in the Learner’s Book and discuss outstanding
debts.
• Do Activity 12.1 Question 1.
• Discuss the examples of Lamond Traders and Small Traders in the
Learner’s Book and posting an invoice and receipt to the Debtors
Ledger. Explain each step as you go along.
1. Source document – Invoice from the Debtors Journal: posted
to the debit side, because it increases the debtor’s account.
2. Source document – Receipt from the Cash Receipts Journal:
posted to the credit side, because it decreases the debtor’s
account.
• Explain that the Debtors Ledger differs from the General Ledger
in that it is updated as soon as a transaction takes place. The
Debtors Ledger account then shows the balance due after each
transaction, while the General Ledger is balanced at the end of the
month and shows only this balance.
• Do Activity 12.1 Questions 2 and 3.
• Continue with the next example of Emma Shoppe and posting
the Debtors Journal to the General Ledger. Emphasise the
following:

1. Selling price
Debtors Control Sales
The Asset increased and the The Owner’s equity increased
debtor’s account increased by by the selling price of the
the debt incurred goods

2. Cost price
Cost of Sales Trading Stock
The Owner’s equity decreased The Asset decreased because
by the cost price of the goods the stock decreased

• Then discuss the posting of the CRJ to the General Ledger


(debtors).
• Do Activity 12.1 Questions 4 and 5.
• Discuss the examples in the Learner’s Book pages 141–142
showing the effect these examples of posting have on the
accounting equation.
• Do Activity 12.1 Question 6.
• If the learners struggle with grasping this content, use the
additional example of Naik Traders in the Learner’s Book
pages 137–140 to explain it again.

Lesson 3
• Mark and check Activity 12.1.
• Review the Debtors Ledger and emphasise where we get the
information from:

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DJ Invoice Entry in the debit column Add amount to the
balance
CRJ Receipt Entry in the credit column Subtract amount from the
balance

• Debtors can settle their accounts in three ways:


– Settle accounts on the first of the month, for example, 1 April:
Debtor pays the previous month’s account in full
– Settle accounts in full (up to date): Debtor pays the full
amount that he or she owes up until that day in full
– Settle accounts in part: Debtor pays only a part of his or her
account.
• Do Activity 12.2.
• Ask learners to open their journals for the activity and assist them
with a few of the calculations.
• You can do the calculations with the learners or let them do them
on their own. Remind them that they also need to allocate the
transactions shown by all the source documents in the activity.

Lesson 4
• Mark and check Activity 12.2.
• Do Activity 12.3.
• It is difficult to explain an account like Trading Stock with only
half the information. Goods have been sold, but not yet bought,
so where do the goods come from? So, in this activity, two half-
completed accounts have been added to do the Trading Stock
account in full, with entries from the CPJ (cash purchases), the
CRJ (the cost price of goods sold for cash) and the DJ (the cost
price of goods sold on credit).
• The Trading Stock and Debtors Control accounts are key accounts
and the relationship between them must be clearly understood.
Write the following on the board and explain the two accounts
to learners or use a specific figure in the activity and ask them to
explain what the figure means. Sometimes if learners understand it
in this way, the content becomes more real to them.

Dr Trading Stock Cr
Balance (stock left over from previous Cost of sales CRJ (cost price of goods sold
month) for cash)
Bank CPJ (stock purchased for cash) Cost of sales DJ (cost price of goods sold for
credit)
Balance (stock left over for this month)

Dr Debtors Control Cr
Balance (amount owed by debtors from Bank CRJ (cash received from debtors
previous month) in payment of their accounts)
Sales DJ (credit sales to debtors) Balance (amount owed by debtors at the
end of the month)

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Lesson 5
• Mark and check Activity 12.3.
• Do Activity 12.4.
• This activity will assist learners to see the bigger picture and how
the content fits together.
• Do Activity 12.5.
• This is an excellent activity to practise the General Ledger.
If there are struggling learners, help them work out the
calculations and the missing balances in the General Ledger
beforehand.
• Do Activity 12.6.
• This activity may be easy for some of them to do. So, continue to
spend time with struggling learners.
• Do Activity 12.7.
• If there is time available, do the examples in the Learner’s Book
pages 150–152 on analysing and interpreting accounts as an
enrichment activity. This can also be used as a challenge for
learners who understand the content.

Answers
Activity 12.1

1. Middle order (45)

Cash Receipts Journal of The Scribble Shoppe for June 2012 CRJ6
Doc. Day Details Fol. Analysis of Bank Sales Cost of Debtors Sundry accounts
no. receipts sales control
Amount Fol. Details
401 01 P Theron ✔200 000 00 ✔200 000 00 B1✔ Capital✔

CRR 02 Sales 1 200 00 ✔1 200 00 ✔1 200 00 ✔960 00

402 05 F Meyer D1 ✔1 600 00 ✔1 600 00

403 A Fieties D2 ✔4 000 00 ✔5 600 00 ✔4 000 00

404 13 F Meyer D1 3 040 00 ✔3 040 00 ✔3 040 00


Galileo Rent
405 17 Distributors ✔3 200 00 ✔3 200 00 N4 income✔

CRR Sales ✔3 600 00 ✔6 800 00 ✔3 600 00 ✔2 880 00

406 25 A Fieties D2 6 000 00 ✔6 000 00 ✔6 000 00


Services Current
CRR 29 rendered ✔3 000 00 ✔3 000 00 N3 income✔

CRR Sales ✔2 800 00 ✔5 800 00 ✔2 800 00 ✔2 240 00

✔ ✔ 228 440 00 7 600 00 6 080 00 14 640 00 ✔206 200 00 (34)


B4 N1 N2/B2 B3✔

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Debtors Journal of The Scribble Shoppe for June 2012 DJ6
Doc. Day Debtor Fol. Sales Cost of sales
no.
981 02 F Meyer D1 ✔ 2 400 00 ✔ 1 920 00
982 03 A Fieties D2 ✔ 6 000 00 ✔ 4 800 00
983 06 H Mojalefa D3 ✔ 1 400 00 ✔ 1 120 00
984 19 A Fieties D2 ✔ 1 600 00 ✔ 1 280 00
✔ ✔ 11 400 00 ✔ 9 120 00 (11)
B3/N1 N2/B2

2. Middle order (22)


Debtors Ledger of The Scribble Shoppe
F Meyer D1
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2012
Jun 01 Account rendered ✔ 2 240 00

02 Invoice no. 981 ✔ DJ6 ✔ 2 400 00 4 640 00

05 Receipt no. 402 ✔ CRJ6 ✔ 1 600 00 3 040 00

13 Receipt no. 404 ✔ CRJ6 ✔ 3 040 00 ✔ 0 00


No entry — Cash
29 transaction (8)

A Fieties D2
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2012
Jun 01 Account rendered ✔ 4 000 00
03 Invoice no. 982 ✔ DJ6 ✔ 6 000 00 10 000 00
05 Receipt no. 403 ✔ CRJ6 ✔ 4 000 00 6 000 00
19 Invoice no. 984 ✔ DJ6 ✔ 1 600 00 7 600 00
25 Receipt no. 406 ✔ CRJ6 ✔ 6 000 00 ✔ 1 600 00 (10)

H Mojalefa D3
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2012
Jun 01 Account rendered ✔ 7 200 00
06 Invoice no. 983 ✔ DJ6 ✔ 1 400 00 ✔ 8 600 00 (4)

3.–4. Lower order (39)

General Ledger of The Scribble Shoppe


Balance Sheet accounts
Dr Capital B1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jun 01 Balance b/d ✔ 215 000 00
Bank ✔ CRJ6 ✔ 200 000 00
✔ 415 000 00 (4)

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Dr Trading Stock B2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012 2012
Jun 01 Balance b/d ✔ 26 788 00 Jun 30 Cost of sales ✔ CRJ6 ✔ 6 080 00
Cost of sales ✔ DJ6 ✔ 9 120 00 (5)

Dr Debtors Control B3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012 2012
Jun 01 Balance b/d ✔ 13 440 00 Jun 30 Bank ✔ CRJ6 ✔ 14 640 00
30 Sales ✔ DJ6 ✔ 11 400 00 Balance ✔ c/d 10 200 00
24 840 00 24 840 00
2012
Jul 01 Balance b/d ✔ 10 200 00 (7)

Dr Bank B4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jun 01 Balance b/d ✔ 51 668 00
30 Total receipts ✔ CRJ6 ✔ 228 440 00 (3)

Nominal accounts
Dr Sales N1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jun 01 Balance b/d ✔ 57 221 25
30 Bank ✔ CRJ6 ✔ 7 600 00
Debtors control ✔ DJ6 ✔ 11 400 00
✔ 76 221 25 (6)

Dr Cost of Sales N2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jun 01 Balance b/d ✔ 45 777 00
30 Trading stock ✔ CRJ6 ✔ 6 080 00
Trading stock ✔ DJ6 ✔ 9 120 00
✔ 60 977 00 (6)

Dr Current Income N3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jun 01 Balance b/d ✔ 13 442 00
29 Bank ✔ CRJ6 ✔ 3 000 00
✔ 16 442 00 (4)

Dr Rent Income N4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jun 01 Balance b/d ✔ 9 400 00
17 Bank ✔ CRJ6 ✔ 3 200 00
✔ 12 600 00 (4)

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5. Middle order (4)

List (schedule) of balances of debtors on 30 June 2012


F Meyer D1 R0 ✔
A Fieties D2 R1 600 ✔
H Mojalefa D3 R8 600 ✔
Debtors control B3 R10 200 ✔

Learners calculate the balance of the Debtors Control account =


F Meyer + A Fieties + H Mojalefa = R2 240 + R4 000 + R7 200 =
R13 440

6. Middle order (30)

No. Assets Owner’s Equity Liabilities


Effect Reason Effect Reason Effect Reason
01 ✔ +200 000 Cash increases ✔ ✔ +200 000 Capital
contribution ✔
02 ✔ +2 400 Debtors increase ✔ +480 Profit earned ✔

✔—1 920 Trading stock
decreases ✔
✔ +1 200 Cash increases ✔ ✔ +240 Profit earned ✔
✔ —960 Trading stock
decreases ✔
25 ✔ —6 000 Debtors decrease

✔ +6 000 Cash increases ✔
29 ✔ +3 000 Cash increases ✔ ✔ +3 000 Current income

✔ +2 800 Cash increases ✔ ✔ +560 Profit earned ✔
✔ —2 240 Trading stock
decreases ✔

7. Middle order (40)

No. Account debited Account credited A OE L


e.g. Bank ✔ Current income ✔ ✔ +1 337 ✔ +1 337
01 Bank ✔ Capital ✔ ✔ +200 000 ✔ +200 000
02 Debtors control ✔ Sales ✔ ✔ +2 400 ✔ +2 400
Cost of sales ✔ Trading stock ✔ ✔ —1 920 ✔ —1 920
Bank ✔ Sales ✔ ✔ +1 200 ✔ +1 200
Cost of sales ✔ Trading stock ✔ ✔ —960 ✔ —960
25 Bank ✔ Debtors control ✔ ✔✔ ±6 000
29 Bank ✔ Current income ✔ ✔ +3 000 ✔ +3 000
Bank ✔ Sales ✔ ✔ +2 800 ✔ +2 800
Cost of sales ✔ Trading stock ✔ ✔—2 240 ✔ —2 240

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Activity 12.2

Learners must calculate the profit percentage:


Profit = Sales – Cost of sales (use the balance amounts)
= R41 400 – R34 500
= R6 900
​  Profit  
________ ​  6 900 
 ​× 100 = ______  ​ 
× 100 = 20%
Cost price 34 500
The cost of sales for 3 July is calculated as follows:
​ 100 ​ = R2 400
2 880 × ____
120
Learners calculate the balance of D Nyathi =
Debtors control – R Matthyser – N Mapetla =
R15 120 – R3 720 – R5 160

1. Middle order (40)

Cash Receipts Journal of Wiechers Traders for July 2015 CRJ7


Doc. Day Details Fol. Analysis of Bank Sales Cost of sales Debtors Sundry accounts
no. receipts control
Amount Fol. Details
161 03 D Nyathi D2 ✔6 240 00 ✔6 240 00
CRR Sales ✔43 200 00 ✔49 440 00 ✔43 200 00 ✔36 000 00
R
162 07 Matthyser D1 1 440 00 ✔1 440 00 ✔1 440 00
CRR 14 Sales ✔39 600 00 ✔39 600 00 ✔33 000 00
M
163 Wiechers ✔120 000 00 ✔159 600 00 ✔120 000 00 B1 Capital✔
164 24 Sales ✔1 440 00 ✔1 440 00 ✔1 200 00
Rent
165 S Vianello ✔3 600 00 ✔5 040 00 ✔3 600 00 N3 income✔
166 31 D Nyathi D2 ✔6 690 00 ✔6 690 00 6 690 00
✔ ✔ 222 210 00 84 240 00 70 200 00 14 370 00 123 600 00

B4 N1 N2/B2 B3✔ (27)

Debtors Journal of Wiechers Traders for July 2015 DJ7


Doc. Day Debtor Fol. Sales Cost of sales
no.
294 03 R Matthyser D1 ✔ 2 880 00 ✔ 2 400 00
295 07 N Mapetla D3 ✔ 3 840 00 ✔ 3 200 00
296 18 D Nyathi D2 ✔ 4 440 00 ✔ 3 700 00
297 N Mapetla D3 ✔ 2 580 00 ✔ 2 150 00
298 30 D Nyathi D2 ✔ 2 250 00 ✔ 1 875 00
✔ ✔ 15 990 00 ✔ 13 325 00 (13)
B3/N1 N2/B2

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2. Middle order (22)
Debtors Ledger of Wiechers Traders
R Matthyser D1
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2015
Jul 01 Account rendered ✔ 3 720 00
03 Invoice no. 294 ✔ DJ7 ✔ 2 880 00 6 600 00
07 Receipt no. 162 ✔ CRJ7 ✔ 1 440 00 ✔ 5 160 00 (6)

D Nyathi D2
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2015
Jul 01 Account rendered ✔ 6 240 00
03 Receipt no. 161 ✔ CRJ7 ✔ 6 240 00 0 00
18 Invoice no. 296 ✔ DJ7 ✔ 4 440 00 4 440 00
30 Invoice no. 298 ✔ DJ7 ✔ 2 250 00 6 690 00
31 Receipt no. 166 ✔ CRJ7 ✔ 6 690 00 ✔ 0 00 (10)

N Mapetla D3
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2015
Jul 01 Account rendered ✔ 5 160 00
07 Invoice no. 295 ✔ DJ7 ✔ 3 840 00 9 000 00
18 Invoice no. 297 ✔ DJ7 ✔ 2 580 00 ✔ 11 580 00 (6)

3. Lower order (31)


General Ledger of Wiechers Traders
Balance Sheet accounts
Dr Capital B1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015
Jul 01 Balance b/d ✔ 480 000 00
14 Bank ✔ CRJ7 ✔ 120 000 00 (3)

Dr Trading Stock B2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015 2015
Jul 01 Balance b/d ✔ 51 780 00 Jul 31 Cost of sales ✔ CRJ7 ✔ 70 200 00
Cost of sales ✔ DJ7 ✔ 13 325 00 (5)

Dr Debtors Control B3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015 2015
Jul 01 Balance b/d ✔ 15 120 00 Jul 31 Bank ✔ CRJ7 ✔ 14 370 00
31 Sales ✔ DJ7 ✔ 15 990 00 Balance c/d ✔ 16 740 00
31 110 00 31 110 00
2015
Aug 01 Balance b/d ✔ 16 740 00 (7)

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Dr Bank B4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015
Jul 01 Balance b/d ✔ 51 678 00
31 Total receipts ✔ CRJ7 ✔ 222 210 00 (3)

Nominal accounts
Dr Sales N1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015
Jul 01 Balance b/d ✔ 41 400 00
31 Bank ✔ CRJ7 ✔ 84 240 00
Debtors control ✔ DJ7 ✔ 15 990 00 (5)

Dr Cost of Sales N2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015
Jul 01 Balance b/d ✔ 34 500 00
31 Trading stock ✔ CRJ7 ✔ 70 200 00
Trading stock ✔ DJ7 ✔ 13 325 00 (5)

Dr Rent Income N3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015
Jul 01 Balance b/d ✔ 7 200 00
24 Bank ✔ CRJ7 ✔ 3 600 00 (3)

4. Middle order (4)


List (schedule) of balances of debtors on 31 July 2015
R Matthyser D1 R5 160 ✔
D Nyathi D2 R0 ✔
N Mapetla D3 R11 580 ✔
Debtors control B3 R16 740 ✔

5. Middle order (20)


No. Assets Owner’s Equity Liabilities
Effect Reason Effect Reason Effect Reason
07 ✔—1 440 Debtors
decrease ✔
✔ +1 440 Cash increases

✔ +3 840 Debtors increase +640 Profit earned ✔
✔—3 200 Trading stock
decreases
14 ✔+39 600 Cash increases +6 600 Profit earned ✔

✔—33 000 Trading stock
decreases ✔
✔+120 000 Cash increases +120 000 Capital
✔ contribution ✔

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6. Middle order (28)
No. Account debited Account credited A OE
e.g. Bank ✔ Current income ✔ ✔ +1 337 ✔ +1 337
07 Bank ✔ Debtors control ✔ ✔✔ ± 1 440
Debtors control ✔ Sales ✔ ✔ +3 840 ✔ +3 840
Cost of sales ✔ Trading stock ✔ ✔ —3 200 ✔ —3 200
14 Bank ✔ Sales ✔ ✔ +39 600 ✔ +39 600
Cost of sales ✔ Trading stock ✔ ✔ —33 000 ✔ —33 000
Bank ✔ Capital ✔ ✔ +120 000 ✔ +120 000

Activity 12.3
1. a.–b. Middle order (37)
Debtors Journal of Dilbert Traders for January 2017 DJ1
Doc. Day Debtor Fol. Sales Cost of sales
no.
506 02 B Ferreira D1 ✔ 2 160 00 ✔ 1 800 00
507 07 B Ferreira D1 ✔ 960 00 ✔ 800 00
508 19 J de Lange D2 ✔ 312 00 ✔ 260 00
509 27 J de Lange D2 ✔ 864 00 ✔ 720 00
510 B Ferreira D1 ✔ 744 00 ✔ 620 00
✔ 5 040 00 ✔ 4 200 00 (12)
B6/N1 N2/B5

Cash Receipts Journal of Dilbert Traders for January 2017 CRJ1


Doc. Day Details Fol. Analysis of Bank Sales Cost of sales Debtors Sundry accounts
no. receipts control
Amount Fol. Details

CRR 02 Sales 8 880 00 ✔8 880 00 ✔8 880 00 ✔7 400 00

301 04 B Ferreira D1 4 704 00 ✔4 704 00 ✔4 704 00


J de
302 07 Lange D2 1 408 00 ✔1 408 00 ✔1 408 00
CRR 19 Sales 15 360 00 ✔15 360 00 ✔15 360 00 ✔12 800 00
J de
303 24 Lange D2 ✔1 984 00 ✔1 984 00

CRR Sales ✔15 000 00 ✔16 984 00 ✔15 000 00 ✔12 500 00

CRR 30 Sales ✔20 400 00 ✔20 400 00 ✔17 000 00

304 B Ferreira D1 ✔2 400 00 ✔22 800 00 ✔2 400 00

✔ 70 136 00 59 640 00 49 700 00 ✔10 496 00 (25)


B7 N1 N2/B5 B6 ✔

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2. Middle order (23)
Debtors Ledger of Dilbert Traders
B Ferreira D1
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2017
Jan 01 Account rendered ✔ 3 240 00
02 Invoice no. 506 ✔ DJ1 ✔ 2 160 00 5 400 00
04 Receipt no. 301 ✔ CRJ1 ✔ 4 704 00 696 00
07 Invoice no. 507 ✔ DJ1 ✔ 960 00 1 656 00
27 Invoice no. 510 ✔ DJ1 ✔ 744 00 2 400 00
30 Receipt no. 304 ✔ CRJ1 ✔ 2 400 00 ✔ 0 00 (12)

J de Lange D2
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2017
Jan 01 Account rendered ✔ 14 838 00
07 Receipt no. 302 ✔ CRJ1 ✔ 1 408 00 13 430 00
19 Invoice no. 508 ✔ DJ1 ✔ 312 00 13 742 00
24 Receipt no. 303 ✔ CRJ1 ✔ 1 984 00 11 758 00
27 Invoice no. 509 ✔ DJ1 ✔ 864 00 ✔ 12 622 00 (10)

D Gifford D3
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2017
Jan 01 Account rendered ✔ 15 522 00 (1)

3. Middle order (35)


General Ledger of Dilbert Traders
Balance Sheet accounts
Dr Trading Stock b5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017 2017
Jan 01 Balance b/d ✔ 56 800 00 Jan 31 Cost of sales ✔ CRJ1 ✔ 49 700 00
31 Bank ✔ CPJ1 ✔ 33 680 00 Cost of sales ✔ DJ1 ✔ 4 200 00
Balance c/d ✔ 36 580 00
90 480 00 90 480 00
2017
Feb 01 Balance b/d ✔ 36 580 00 (9)

Dr Debtors Control b6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017 2017
Jan 01 Balance b/d ✔ 33 600 00 Jan 31 Bank ✔ CRJ1 ✔ 10 496 00
31 Sales ✔ DJ1 ✔ 5 040 00 Balance ✔ c/d 28 144 00
38 640 00 38 640 00
2017
Feb 01 Balance b/d ✔ 28 144 00 (7)

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Dr Bank b7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017 2017
Jan 01 Balance b/d ✔ 3 400 00 Jan 31 Total payments ✔ CPJ1 ✔ 36 960 00
31 Total receipts ✔ CRJ1 ✔ 70 136 00 Balance c/d ✔ 36 576 00
73 536 00 73 536 00
2017
Feb 01 Balance b/d ✔ 36 576 00 (7)

Nominal accounts
Dr Sales n1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Jan 01 Balance b/d ✔ 241 200 00
31 Bank ✔ CRJ1 ✔ 59 640 00
Debtors control ✔ DJ1 ✔ 5 040 00
✔ 305 880 00 (6)

Dr Cost of Sales n2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Jan 01 Balance b/d ✔ 201 000 00
31 Trading stock ✔ CRJ1 ✔ 49 700 00
Trading stock ✔ DJ1 ✔ 4 200 00
✔ 254 900 00 (6)

4. Higher order (11)


a. It implements more cash sales ✔ as in January, goods to the
value of R59 640 were sold for cash whereas only R5 040 were
credit sales. ✔✔ (3)
b. Advantages:
• The business will not run into cash flow problems. ✔✔
• They can finance the credit sales (debtors) from the
cash sales. ✔✔
• The business requires less operating capital. ✔✔
• There are fewer bad debts. ✔✔
(Any two)
Disadvantages:
• They could sell more goods if credit sales could increase
to the same level as that of the cash sales. ✔✔
• Their credit option is not utilised to its maximum. ✔✔
• Their credit allowance policy as well as their credit
collection policy is probably too stringent. ✔✔ (8)
(Any two)

LESSON BY LESSON  TERM 3 145

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Activity 12.4
1. Middle order (25)
Learners complete the CRJ and use the completed DJ and CPJ to post
to the General and Debtors Ledgers.

Cash Receipts Journal of Storm Stores for December 2020 CRJ12


Doc. Day Details Fol. Analysis of Bank Sales Cost of sales Debtors Sundry accounts
no. receipts control
Amount Fol. Details

CRR 01 Sales 1 200 00 ✔1 200 00 ✔1 200 00 ✔857 14


CRR 04 Sales 10 080 00 ✔10 080 00 ✔10 080 00 ✔7 200 00

R10 09 S Storm ✔24 000 00 ✔24 000 00 B1 Capital ✔


CRR 11 Sales 22 800 00 ✔22 800 00 ✔22 800 00 ✔16 285 71

R11 14 A Andani D2 66 300 00 ✔66 300 00 ✔66 300 00


Rent
R12 15 G Tamba ✔36 000 00 ✔36 000 00 N3 income ✔

CRR 25 Sales 7 560 00 ✔7 560 00 ✔7 560 00 ✔5 400 00


R13 30 S Miba D3 59 700 00 ✔59 700 00 ✔59 700 00
✔ 227 640 00 41 640 00 29 742 85 126 000 00 ✔60 000 00

B7 N1 N2/B5 B6✔

2. Middle order (51)


General Ledger of Storm Stores
Balance Sheet accounts
Dr Capital b1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2020
Dec 01 Balance b/d ✔ 156 000 00
09 Bank ✔ CRJ12 ✔ 24 000 00
✔ 180 000 00 (4)

Dr Trading Stock b5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2020 2020
Dec 01 Balance b/d ✔ 95 670 00 Dec 31 Cost of sales ✔ CRJ12 ✔ 29 742 85
31 Bank ✔ CPJ12 ✔ 101 400 00 Cost of sales ✔ DJ12 ✔ 69 428 57
Balance c/d ✔ 97 898 58
197 070 00 197 070 00
2021
Jan 01 Balance b/d ✔ 97 898 58 (9)

Dr Debtors Control b6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2020 ✔ 139 2020
Dec 01 Balance b/d 200 00 Dec 31 Bank ✔ CRJ12 ✔ 126 000 00
31 Sales ✔ DJ12 ✔ 97 200 00 Balance c/d ✔ 110 400 00
236 400 00 236 400 00
2021
Jan 01 Balance b/d ✔ 110 400 00 (7)

146 LESSON BY LESSON  TERM 3

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Dr Bank b7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2020 2020
Dec 01 Balance b/d ✔ 56 777 00 Dec 31 Total payments ✔ CPJ12 ✔ 157 200 00
31 Total receipts ✔ CRJ12 ✔ 227 640 00 Balance c/d ✔ 127 217 00
284 417 00 284 417 00
2021
Jan 01 Balance b/d ✔ 127 217 00 (7)

Nominal accounts
Dr Sales n1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2020
Dec 01 Balance b/d ✔ 113 484 00
31 Bank ✔ CRJ12 ✔ 41 640 00
Debtors control ✔ DJ12 ✔ 97 200 00
✔ 252 324 00 (6)

Dr Cost of Sales n2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2020
Dec 01 Balance b/d ✔ 81 060 00
31 Trading stock ✔ CRJ12 ✔ 29 742 85
Trading stock ✔ DJ12 ✔ 69 428 57
✔ 180 231 42 (6)

Dr Rent Income n3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2020
Dec 01 Balance b/d ✔ 12 000 00
15 Bank ✔ CRJ12 ✔ 36 000 00
✔ 48 000 00 (4)

Dr Wages n4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2020
Dec 01 Balance b/d ✔ 4 500 00
31 Bank ✔ CPJ12 ✔ 3 000 00
✔ 7 500 00 (4)

Dr Stationery n5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2020
Dec 01 Balance b/d ✔ 465 00
31 Bank ✔ CPJ12 ✔ 4 800 00
✔ 5 265 00 (4)

LESSON BY LESSON  TERM 3 147

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3. Middle order (24)
Debtors Ledger of Storm Stores
C Gwari D1
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2020
Dec 01 Account rendered ✔ 2 400 00

30 Invoice no. F35 ✔ DJ12 ✔ 37 980 00 ✔ 40 380 00 (4)

A Andani D2
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2020
Dec 01 Account rendered ✔ 45 000 00

04 Invoice no. F31 ✔ DJ12 ✔ 7 500 00 52 500 00

08 Invoice no. F32 ✔ DJ12 ✔ 13 800 00 66 300 00


14 Receipt no. R11 ✔ CRJ12 ✔ 66 300 00 0 00
17 Invoice no. F34 ✔ DJ12 ✔ 10 320 00 ✔ 10 320 00 (10)

S Miba D3
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2020
Dec 01 Account rendered ✔ 91 800 00

11 Invoice no. F33 ✔ DJ12 ✔ 27 600 00 119 400 00


30 Receipt no. R13 ✔ CRJ12 ✔ 59 700 00 ✔ 59 700 00 (6)

List (schedule) of balances of debtors on 31 December 2020

C Gwari D1 R40 380 ✔


A Andani D2 R10 320 ✔
S Miba D3 R59 700 ✔
Debtors control B6 R110 400 ✔ (4)

Activity 12.5
Middle and Higher order (44)
The learners must do a few calculations beforehand. You can help
them with the calculations or ask them to work on their own.

Calculations:
Debtors control = K Barlow + E Jones = R10 812 + R8 415 = R19 227
profit
Profit margin = ________
​    ​ 
× 100 (use the balance amounts)
cost price
(145 095 – 116 076)
= _________________
​   ​
     × 100 = 25%
116 076
100 ​ = R32 762,40
Cost of sales (in DJ) = R40 953 × ​ ____
125
Sales (in CRJ) = R3 947 706 – R12 750 – R3 574 080 = R360 876

​ 100  ​ = R288 700,80


Cost of sales (in CRJ) = R360 876 × ____
125
Bank (in CPJ) = R393 847,50 + R6 120 + R41 488,50 = R441 456

148 LESSON BY LESSON  TERM 3

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General Ledger of Mittner Traders
Balance Sheet accounts
Dr Trading Stock b7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015 2015
Mar 01 Balance b/d ✔ 53 677 50 Mar 31 Cost of sales ✔ DJ3 ✔✔ 32 762 40
31 Bank ✔ CPJ3 ✔ 393 847 50 Cost of sales ✔ CRJ3 ✔✔ 288 700 80
Balance c/d ✔ 126 061 80
447 525 00 447 525 00
2015
Apr 01 Balance b/d ✔ 126 061 80 (11)

Dr Debtors Control b8 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015 2015
Mar 01 Balance b/d ✔✔ 19 227 00 Mar 31 Bank ✔ CRJ3 ✔ 12 750 00
31 Sales ✔ DJ3 ✔ 40 953 00 Balance c/d ✔ 47 430 00
60 180 00 60 180 00
2015
Apr 01 Balance b/d ✔ 47 430 00 (8)

Dr Bank b9 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015 2015
Mar 01 Balance b/d ✔ 208 437 00 Mar 31 Total payments ✔ CPJ3 ✔✔ 441 456 00
31 Total receipts ✔ CRJ3 ✔ 3 947 706 00 Balance c/d ✔ 3 714 687 00
4 156 143 00 4 156 143 00
2015
Apr 01 Balance b/d ✔ 3 714 687 00 (8)

Nominal accounts
Dr Sales n1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015
Mar 01 Balance b/d ✔ 145 095 00
31 Debtors control ✔ DJ3 ✔ 40 953 00
Bank ✔ CRJ3 ✔✔ 360 876 00
✔ 546 924 00 (7)

Dr Cost of Sales n2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015
Mar 01 Balance b/d ✔ 116 076 00
31 Trading stock ✔ CRJ3 ✔ 288 700 00
Trading stock ✔ DJ3 ✔ 32 762 40
✔ 437 538 40 (6)

LESSON BY LESSON  TERM 3 149

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Dr Stationery n4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015
Mar 01 Balance b/d ✔ 8 670 00
31 Bank ✔ CPJ3 ✔ 6 120 00
✔ 14 790 00 (4)

Activity 12.6
Middle order (15)
Learners record the transactions directly into the Debtors Ledger,
instead of posting them from the CRJ and DJ. Pay attention to the
last transaction. It must not be entered in F Gabu’s account, because
he has already paid for it.

Debtors Ledger of Faber Traders


F Gabu D1
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2013
Feb 01 Account rendered ✔ ✔ 13 952 00
06 Invoice ✔ DJ ✔ 1 424 00 15 376 00
09 Receipt ✔ CRJ ✔ 13 952 00 1 424 00
15 Invoice ✔ DJ ✔ 532 00 1 956 00
18 Receipt ✔ CRJ ✔ 1 200 00 756 00
21 Invoice ✔ DJ ✔ 852 00 1 608 00
26 Receipt ✔ CRJ ✔ 1 608 00 ✔ 0 00

Activity 12.7
Middle order (50)
Day Source Account Account Assets Owner’s Equity
document debited credited Effect Reason Effect Reason
1. Deposit slip Bank ✔ Capital ✔ ✔ +100 000 Cash ✔ +100 000 Owner’s
(duplicate) increases ✔ capital
✔ contribution
✔ (7)
2. Invoice Debtors Sales ✔ ✔ +7 440 Debtors ✔ +1 860 Profit
(duplicate) ✔ control ✔ increase ✔ earned ✔
Cost of Trading ✔ —5 580 Trading
sales ✔ stock ✔ stock
decreases ✔ (11)
3. Receipt Bank ✔ Rent ✔ +7 000 Cash ✔ +7 000 Rent income
(duplicate) ✔ income ✔ increases ✔ ✔
4. Cheque Stationery Bank ✔ ✔ —1 908 Cash ✔ —1 908 Stationery —
(7)
counterfoil ✔ ✔ decreases ✔ expense ✔ (7)
5. Cash Bank ✔ Sales ✔ ✔ +19 012 Cash ✔ +5 432 Profit
register roll ✔ increases ✔ earned ✔
Cost of Trading ✔ —13 580 Trading
sales ✔ stock ✔ stock
decreases ✔ (11)
6. Receipt Bank ✔ Debtors ✔ +11 856 Cash
(duplicate) ✔ control ✔ increases ✔
✔ —11 856 Debtors
decrease ✔ (7)

150 LESSON BY LESSON  TERM 3

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For information Informal assessment
on Informal
assessment, refer to Activities 12.1—12.2: Show the CRJ and DJ on an overhead/data
the self-assessment, projector. Then show how you post to the Debtors Ledger step by step
peer assessment and on the board. You can highlight the invoices in one colour and insert
group assessment them in the same colour in the debit column of the Debtors Ledger.
templates in Highlight the receipts in another colour and insert them in the same
Section 5 of this
colour in the credit column of the Debtors Ledger. (325)
Teacher’s Guide.
Activities 12.3—12.4: One way to mark these activities is by
giving a handout to each learner. This gives learners that struggle
time to work at their own pace. This also gives you some time to
check learners’ books individually. (206)

Activity 12.5: The best way to mark a General Ledger is by doing


it on the board, as you explain where the answers are found. (44)

Activities 12.6—12.7: These activities can be used for peer


assessments. (65)

Consolidation
C Nel is the owner of Reitsma Traders. The business sells goods at
cost price + 30%.

Balances on 1 December 2014


Capital R36 000 Sales R73 320
Drawings R2 110 Cost of sales R56 400
Trading stock R54 800 Stationery R554
Debtors control R20 936 Wages R8 450
Bank R16 040 Water and electricity R898
Debtors: S Moore R?
E Klopper R4 044
P Ciel R1 280
M Gama R2 652

The following source documents were issued during December.


Duplicate invoices for goods sold:
No. Date To Amount
010 03 S Moore R808
011 08 E Klopper R1 212
012 16 P Ciel R1 616
013 23 M Gama R2 020

Duplicate receipts:
Date Details
02 No. 555 to S Moore as part-settlement of his account: R8 136
07 No. 556 to C Nel as capital contribution: R17 200
15 No. 557 to M Gama as part-settlement of his account: R1 768

LESSON BY LESSON  TERM 3 151

EMS 9 TG (ENG).indb 151 6/5/13 6:22:55 PM


Cash sales according to cash register roll:
Date Amount
07 R16 800
15 R4 800
28 R12 400

Cheque counterfoils:
No. Date To For Amount
7441 04 Drakenstein Water and electricity R1 280
Municipality
7442 09 Cash Wages R16 492
7443 17 Circle Stationers Stationery R680
7444 24 Anahita Ltd. Trading stock R12 800
7445 28 C Nel Drawings R5 200

Required
Record the transactions in the following subsidiary books:
1. Debtors Journal for December 2014
2. Cash Receipts Journal for December 2014 with columns for
Analysis of receipts, Bank, Sales, Cost of sales, Debtors control
and Sundry accounts.
Hint: There are two source documents involved with the CRJ.
Make sure to record them in date order.
3. Cash Payments Journal for December 2014 with columns for
Bank, Trading stock, Stationery, Wages and Sundry accounts.
4. Post the journals to the debtors’ accounts in the Debtors
Ledger and draw up a Debtors List.
5. Open the accounts with the given balances in the General
Ledger.
6. Post from the journals to these accounts and balance the
accounts where necessary.
Remind learners which source document to use with which journal.

Source document Journal


Duplicate invoice DJ
Duplicate receipt CRJ
Cash register roll CRJ
Cheque counterfoil CPJ

Help them to calculate the balance of S Moore’s account as follows:


S Moore = Debtors control – E Klopper – P Ciel – M Gama
= R20 936 – R4 044 – R1 280 – R2 652
= R12 960

152 LESSON BY LESSON  TERM 3

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1.
Debtors Journal of Reitsma Traders for December 2014 DJ12
Doc. Day Debtor Fol. Sales Cost of sales
no.
010 03 S Moore D1 808 00 621 54
011 08 E Klopper D2 1 212 00 932 31
012 16 P Ciel D3 1 616 00 1 243 08
013 23 M Gama D4 2 020 00 1 553 85
5 656 00 4 350 78

B6/N1 N2/B5

2.–3.
Cash Receipts Journal of Reitsma Traders for December 2014 CRJ12
Doc. Day Details Fol. Analysis of Bank Sales Cost of Debtors Sundry accounts
no. receipts sales control Amount Fol. Details
555 02 S Moore D1 8 136 00 8 136 00 8 136 00
CRR 07 Sales 16 800 00 16 800 00 12 923 08
556 C Nel 17 200 00 34 000 00 17 200 00 B1 Capital
CRR 15 Sales 4 800 00 4 800 00 3 692 31
557 M Gama D4 1 768 00 6 568 00 1 768 00
CRR 28 Sales 12 400 00 12 400 00 12 400 00 9 538 46
61 104 00 34 000 00 26 153 85 9 904 00 17 200 00
B7 N1 N2/B5 B6

Cash Payments Journal of Reitsma Traders for December 2014 CPJ12


Doc. Day Name of Fol. Bank Trading stock Stationery Wages Sundry accounts
no. payee
Amount Fol. Details
Drakenstein Water and
7441 04 Municipality 1 280 00 1 280 00 N5 electricity
7442 09 Cash 16 492 00 16 492 00
Circle
7443 17 Stationers 680 00 680 00
7444 24 Anahita Ltd 12 800 00 12 800 00
7445 28 C Nel 5 200 00 5 200 00 B2 Drawings
36 452 00 12 800 00 680 00 16 492 00 6 480 00

B7 B5 N3 N4

4.
Debtors Ledger of Reitsma Traders
S Moore D1
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2014
Dec 01 Account rendered 12 960 00
02 Receipt no. 555 CRJ12 8 136 00 4 824 00
03 Invoice no. 010 DJ12 808 00 5 632 00

LESSON BY LESSON  TERM 3 153

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E Klopper D2
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2014
Dec 01 Account rendered 4 044 00

08 Invoice no. 011 DJ12 1 212 00 5 256 00

P Ciel D3
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2014
Dec 01 Account rendered 1 280 00

16 Invoice no. 012 DJ12 1 616 00 2 896 00

M Gama D4
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2014
Dec 01 Account rendered 2 652 00
15 Receipt no. 557 CRJ12 1 768 00 884 00
23 Invoice no. 013 DJ12 2 020 00 2 904 00

List (schedule) of balances of debtors on 31 December 2014


S Moore D1 R5 632
E Klopper D2 R5 256
P Ciel D3 R2 896
M Gama D4 R2 904
Debtors control B6 R16 688

5.–6.
General Ledger of Reitsma Traders
Balance Sheet accounts
Dr Capital b1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2014
Dec 01 Balance b/d 36 000 00
07 Bank CRJ12 17 200 00
53 200 00

Dr Drawings b2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2014
Dec 01 Balance b/d 2 110 00
28 Bank CPJ12 5 200 00
7 310 00

Dr Trading Stock b5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2014 2014
Dec 01 Balance b/d 54 800 00 Dec 31 Cost of sales CRJ12 26 153 85
31 Bank CPJ12 12 800 00 Cost of sales DJ12 4 350 78
Balance c/d 37 095 37
67 600 00 67 600 00
2015
Jan 01 Balance b/d 37 095 37

154 LESSON BY LESSON  TERM 3

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Dr Debtors Control b6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2014 2014
Dec 01 Balance b/d 20 936 00 Dec 31 Bank CRJ12 9 904 00
31 Sales DJ12 5 656 00 Balance c/d 16 688 00
26 592 00 26 592 00
2015
Jan 01 Balance b/d 16 688 00

Dr Bank b7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2014 2014
Dec 1 Balance b/d 16 040 00 Dec 31 Total payments CPJ12 36 452 00
31 Total receipts CRJ12 61 104 00 Balance c/d 40 692 00
77 144 00 77 144 00
2015
Jan 01 Balance b/d 40 692 00

Nominal accounts
Dr Sales n1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2014
Dec 01 Balance b/d 73 320 00
31 Bank CRJ12 34 000 00
Debtors control DJ12 5 656 00
112 976 00

Dr Cost of Sales n2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2014
Dec 01 Balance b/d 56 400 00
31 Trading stock CRJ12 26 153 85
Trading stock DJ12 4 350 78
86 904 63

Dr Stationery n3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2014
Dec 01 Balance b/d 554 00
31 Bank CPJ12 680 00
1 234 00

Dr Wages n4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2014
Dec 01 Balance b/d 8 450 00
31 Bank CPJ12 16 492 00
24 942 00

LESSON BY LESSON  TERM 3 155

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Dr Water and Electricity n5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2014
Dec 01 Balance b/d 898 00
04 Bank CPJ12 1 280 00
2 178 00

Extension
• Your scatterbrained friend, M Schutte, has asked for your
help. He has lost his Debtors Control account in the General
Ledger that you drew up for him. However, he still has the
Debtors Ledger.

Required
Recreate the Debtors Control account from the Debtors Ledger.

Information
Debtors Ledger of Schutte Traders
S Mdaka D1
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2013
Nov Account rendered 8 200 80

Invoice no. 522 DJ 5 311 44 13 512 24


Receipt no. 771 CRJ 8 200 80 5 311 44
Invoice no. 525 DJ 18 392 40 23 703 84

J Tanner D2
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2013
Nov Account rendered 14 520 00

Invoice no. 524 11 707 20 26 227 20


Receipt no. 773 CRJ 26 227 20 0 00
Invoice no. 526 DJ 10 114 20 10 114 20

A Falck D3
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2013
Nov Account rendered 6 868 80

Invoice no. 523 13 199 40 20 068 20


Receipt no. 772 CRJ 5 400 00 14 668 20

Receipt no. 774 CRJ 3 600 00 11 068 20

General Ledger of Schutte Traders


Balance Sheet account
Dr Debtors Control b6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013 2013
Nov 01 Balance b/d 29 589 60 Nov 30 Bank CRJ 43 428 00
30 Sales DJ 58 724 64 Balance c/d 44 886 24
88 314 24 88 314 24
2013
Dec 01 Balance b/d 44 886 24

156 LESSON BY LESSON  TERM 3

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Calculations
Balance (total of the debtors’ account rendered at the beginning of the
month):
R8 200,80 + R14 520 + R6 868,80 = R29 589,60
Sales (total of all invoices): R5 311,44 + R18 392,40 + R11 707,20 +
R10 114,20 + R13 199,40 = R58 724,64
Bank (total of all receipts): R8 200,80 + R26 227,20 + R5 400 +
R3 600 = R43 428
Balance (total of the debtors’ final balances): R23 703,84 +
R10 114,20 + R11 068,20 = R44 886,24

• Ciao Café has two debtors: T Holiasmenos and A Janse van


Vuuren.

Required
Study the accounts below from the Debtors Ledger and complete
the Debtors Journal from the information given. Profit mark-up is
50% on cost price.

Debtors Ledger of Ciao Café


T Holiasmenos D1
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2018
Nov 01 Account rendered 1 835 49

03 Invoice no. 903 DJ 1 466 25 3 301 74


05 Receipt no. 656 CRJ 1 300 50 2 001 24
15 Invoice no. 905 DJ 3 487 89 5 489 13

17 Receipt no. 677 CRJ 5 100 00 389 13

A Janse van Vuuren D2


Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2018
Nov 01 Account rendered 10 354 53

10 Invoice no. 904 DJ 8 157 45 18 511 98

19 Invoice no. 906 DJ 10 260 69 28 772 67

25 Receipt no. 687 CRJ 28 772 67 0 00

Debtors Journal of Ciao Café for November 2018 DJ11


Doc. Day Balance Sheet accounts Fol. Sales Cost of sales
no.
903 03 T Holiasmenos D1 1 466 25 977 50
904 10 A Janse van Vuuren D2 8 157 45 5 438 30
905 15 T Holiasmenos D1 3 487 89 2 325 26
906 19 A Janse van Vuuren D2 10 260 69 6 840 46
23 372 28 15 581 52

Learners use the invoices from the two Debtors Ledger accounts and
place them in date order in the Debtors Journal. They focus only on
invoices because this is a Debtors Journal. The cost of sales must also
be calculated.

LESSON BY LESSON  TERM 3 157

EMS 9 TG (ENG).indb 157 6/5/13 6:22:56 PM


​ 100 ​ = R977,50
3 Nov: R1 466,25 × ____
150
​ 100 ​ = R5 438,30
10 Nov: R8 157,45 × ____
150
15 Nov: R3 487,89 × ​ 100 ​ = R2 325,26
____
150
19 Nov: R10 260,69 × ____​ 100 ​ = R6 840,46
150

Topic
UnitCredit
1 transactions: Creditors (1)
13 Learner’s Book pages 155—163 Duration: 3 hours

Curriculum and Assessment Policy Statement


(CAPS) content

In this topic, learners will learn about FINANCIAL LITERACY.


They will look at:
• creditors
• creditors allowance
Term and week/s • the accounting cycle
Term 3, Weeks 6–8
• recording of transactions in the Creditors Journal (CJ)
New words
and concepts
Resources
creditors; trade Learners must each have an exercise book called an ‘Eight money
discount; credit column’ or ‘Cash money column’ for the CPJ and the CJ. Photocopy
invoice; creditors the Cash Payments Journal and Creditors Journal templates found at
allowances; the end of this guide if necessary.
Creditors Journal
A calculator for each learner is essential.

Preparation
• Read through the topic and familiarise yourself with the content
that you will need to teach. Think about what learners may
already know about the topics, what skills they already have and
any areas of difficulty that you think they might encounter.
• The learners already know how to record transactions in a CPJ.
Transactions in the CJ are quite similar, so they may find this easy
to do.

Teaching the topic


There are 3 lessons in this topic.
Lesson Week Pages Activities
6 6 159 13.1—13.2
7 7 160 13.3
8 8 160 13.4

158 LESSON BY LESSON  TERM 3

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Lesson 6
• Refer to Figure 13.1 in the Learners Book and have a class
discussion on buying on credit and how to identify who is the
debtor and who is the creditor in credit transactions. Assess what
learners understand and where they are struggling.
• Discuss each section outlined in the Learner’s Book, including
creditors, recording credit purchases and trade discount.
• Use the examples given in the Learner’s Book to assist your
teaching. For example, the Learner’s Book page 158 example of
Wilson Traders returning a leather chair to Africa Leathers to
explain creditors allowance. Learners will deal with this concept in
more detail in Grade 10.
• Discuss the steps in the accounting cycle from the point where the
business places the order to the creditor until the point where the
business pays for the order.
• Use the example of Tucson Stores in the Learner’s Book. Refer to
the accounting cycle and each step as you go along.
1. Source document – Invoice: Show the invoice on the board
and revise with learners how to fill it in. Remind them that
this will be the original invoice that they receive and will need
to renumbered.
2. Journal – Creditors Journal: Show learners how to allocate
that invoice in the Creditors Journal in the different columns.
Stationery and Packing material will be allocated to the Sundry
accounts column because there are no analysis columns for them.
• Do Activity 13.1.
• It is important that you explain to learners that only CREDIT
PURCHASES are entered into the Creditors Journal.
• Each transaction (each invoice number) is recorded in the
Creditors control column. In other words, for each (renumbered)
invoice there must be an amount in the Creditors control column.
After that the transaction is allocated to a specific column. If there
is no specific column for it, then it is allocated to the Sundry
accounts column.
• The number of analysis columns for which provision must be
made depends on the requirements of each individual business
and is determined by the nature and type of business.
• Provision is always made for Sundry accounts in the journal
because it is not possible to provide individual analysis columns
for every type of receipt or payment.
• Creditors column: In this column we write the name of the
person or business from whom the invoice is received.
• Cross-checking with the CJ: The total of the Creditors control
column must be equal to the total of the analysis columns plus the
total of the Sundry accounts column.
• Do Activity 13.2.

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Lesson 7
• Mark and check Activities 13.1 and 13.2.
• Do Activity 13.3.

Lesson 8
• Mark and check Activity 13.3.
• Do Activity 13.4.

Answers
Activity 13.1
1. Middle order (4)
R9 080 × 7,5% = R681 ✔✔
R9 080 – R681 = R8 399 ✔✔

2. Middle order (18)


Learners complete the invoice. Emphasise who issued the invoice
(Diva Designs) and who is receiving it (Lara Fashions).

DIVA DESIGNS
217 Iziko Street, Durban, 4001
Original Tax Invoice
VAT no.: 42811 NO. V253
TO: Lara Fashions
98 Bree Street ✔
CAPE TOWN
8000 14 March 2013 ✔

BOUGHT FROM: Diva Designs ✔


QUANTITY DETAILS PRICE AMOUNT
20 Dresses ✔ 210 00 ✔ 4 200 00
25 Skirts ✔ 138 00 ✔ 3 450 00
50 Blouses ✔ 89 00 ✔ 4 450 00
100 Pairs socks ✔ 16 00 ✔ 1 600 00
30 Pairs of trousers ✔ 114 00 ✔ 3 420 00
TOTAL ✔ 17 120 00
20% TRADE DISCOUNT ✔✔✔—2 024 00
TOTAL DUE ✔ 15 096 00

Calculations for the trade discount:


(20 × R210) + (25 × R138) + (50 × R89) + (100 × R16) +
(30 × R114) = R17 120
Trade discount: R17 120 – R7 000 = R10 120
R10 120 × 20% = R2 024
Pay attention to the pocket calculators learners have and the different
ways in which they work.

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Activity 13.2
Middle order (10)

Creditors Journal of Books Galore for September 2016 CJ9


Doc. Day Creditor Fol. Creditors Trading Repairs Sundry accounts
no. control stock
Amount Fol. Details
CNC News
101 02 Suppliers *C1 ✔ 4 117 00 ✔ 4 117 00

102 09 Tech B2E *C2 ✔ 368 00 ✔ 368 00


103 16 Grab Publishers *C3 ✔ 4 019 00 ✔ 3 618 00 ✔ 401 00 *N8 Stationery ✔
✔ 8 504 00 7 735 00 368 00 ✔ 401 00

*B7 *B6 *N10

*Folio numbers are only inserted once posting has been done from
Activity 15.1 in Topic 15.

Activity 13.3
Middle order (18)
Learners must pay attention to the following:
4 May: R85 × 10 = R850; R850 – 6% = R799
8 May: If a transaction doesn’t say whether goods are bought on credit
or cash, it is accepted to be on credit.
14 May: R3 810 – 10% = R3 429; R3 429 + R4 800 = R8 229

Creditors Journal of Barnes Stationers for May 2020 CJ5


Doc. Day Creditor Fol. Creditors Trading stock Stationery Sundry accounts
no. control
Amount Fol. Details

21 04 Fitch & Co. C2 ✔✔ 799 00 ✔ 799 00

22 08 Khaya Suppliers C1 ✔ 783 00 ✔ 783 00

23 14 Fitch & Co. C2 ✔ 8 229 00 ✔✔ 3 429 00 ✔ 4 800 00 *B6 Equipment ✔

24 20 Khaya Suppliers C1 ✔ 1 140 00 ✔ 1 140 00

25 26 The Advertiser C4 ✔ 824 00 ✔ 824 00 Advertisements ✔


✔ * 11 775 00 5 368 00 783 00 ✔ 5 624 00

*B8 *B7 *N5 ✔

*Folio numbers are only inserted once posting has been done from
Activity 15.2 in Topic 15.

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Activity 13.4
Middle order (22)

Creditors Journal of Blaine Traders for September 2012 CJ9


Doc. Day Creditor Fol. Creditors Trading stock Sundry accounts
no. control Amount Fol. Details
622 08 Eggers Traders C3 ✔✔ 6 313 70 ✔ 6 313 70
623 21 Cotfab Distributors C1 ✔ 1 280 40 ✔ 1 280 40
624 25 Neven & Co. C2 ✔ 5 315 70 ✔✔ 2 851 20 ✔ 417 00 *N6 Packing material ✔
✔ 1 800 00 *B6 Equipment ✔
✔ 247 50 *N5 Stationery ✔
625 29 Eggers Traders C3 ✔ 4 824 00 ✔ 4 824 00 *N5 Stationery ✔
626 30 Cotfab Distributors C1 ✔✔ 2 340 00 ✔ 2 340 00
✔ * 20 073 80 12 785 30 ✔ 7 288 50

*B9 *B7

*Folio numbers are only inserted once posting has been done from
Activity 15.3 in Topic 15.
Learners must pay attention to the following:
8 Sep: R6 646 – 5% = R6 313,70
25 Sep: R3 240 – 12% = R2 851,20; R2851,20 + R417 + R1 800 +
R247,50 = R5 315,70
30 Sep: R2 400 – 2,5% = R2 340

For information Informal assessment


on Informal
Activity 13.1: Show the invoice on an overhead/data projector.
assessment, refer to
Fill in each section, explaining as you go along. Learners can check
the self-assessment,
peer assessment and their own work. (22)
group assessment Activities 13.2—13.3: Do the CJ on the board while you explain
templates in
each transaction. Show how to calculate the different amounts where
Section 5 of this
the trade discounts apply again. Learners can mark their own work. (28)
Teacher’s Guide.
Activity 13.4: This activity can be a peer assessment, using
a handout. (22)

Consolidation
• Read each transaction and complete the table below.
Example: Paid the telephone account, R650.

No. Account 1 Account 2 Amount


e.g. Telephone Bank 650

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Transactions for May 2012
01 Received an invoice from Pretorius Suppliers for purchases of
goods of R7 400, less 12,5% trade discount.
02 Purchase stationery from Pen & Paper for R189 on credit.
03 Received an invoice from CJ Motors R3 367 for repairs done to
the delivery van.
04 Purchase a computer for R6 800 from Madlelo on credit.
05 Purchase merchandise from MJ Fashions and receive their credit
invoice for R12 900.

No. Account 1 Account 2 Amount


01 Trading stock Creditors control R6 475
02 Stationery Creditors control R189
03 Repairs Creditors control R3 367
04 Equipment Creditors control R6 800
05 Trading stock Creditors control R12 900

Extension
Analyse the creditors’ accounts of Zandvliet by answering the
questions that follow.

Creditors Credit limit Credit term Month 1 Month 2


Purchases Purchases
Amalienstein R5 100 60 days 3 000 4 000
De Tradouw R23 000 60 days 14 000 8 000
Le Domaine R7 500 30 days 4 000
Afrimat R15 000 60 days 8 500 2 100
Les Hauts R25 000 30 days 12 000 16 000

1. Calculate the outstanding amount of each creditor at the end


of Month 2.

Amalienstein R7 000 R3 000 + R4 000


De Tradouw R22 000 R14 000 + R8 000
Le Domaine R4 000 R4 000
Afrimat R10 600 R8 500 + R2 100
Les Hauts R28 000 R12 000 + R16 000

2. Which account(s) is/are not managed well?


Amalienstein: the credit terms are R5 100, but the debt is
R7 000 after 60 days
Les Hauts: the credit terms are R25 000, but the debt is
R28 000 after 30 days
3. Which account(s) is/are managed well?
Le Domaine: the credit terms are R7 500, but the debt is only
R4 000 after 30 days
De Tradouw: the credit terms are R23 000, but the debt is
R22 000 after 60 days
Afrimat: the credit terms are R15 000, but the debt is R10 600
after 60 days

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4. Which account do you think was managed the best?
Le Domaine
5. Calculate the total amount owed to the creditors.
R7 000 + R22 000 + R4 000 + R10 600 + R28 000 = R71 600

Topic
UnitFunctions
1 of a business
14 Learner’s Book pages 164—176 Duration: 3 hours

Term and week/s


Curriculum and Assessment Policy Statement
Term 3, Weeks 6–8 (CAPS) content
In this topic, learners will learn about ENTREPRENEURSHIP.
New words
They will look at:
and concepts
eight business • the eight main functions:
functions; – administration
administration; – purchasing
purchasing; – marketing
marketing; finance; – financial
public relations;
human resources;
– public relations
production; general – human resources
management; risk – production
management – general management
• risk management
• characteristics of the business functions
• role and importance of the business functions
Resources
Gather news articles from newspapers, magazines and the Internet
that deal with any of the eight business functions.

Source businesspeople in your area who could come to the class to


talk to the learners about the business functions. Arrange, in good
time, for the speaker to come during Lesson 8.

Preparation
• Read through the topic and familiarise yourself with the content
that you will need to teach. Think about what learners may
already know about the topics, what skills they already have and
any areas of difficulty that you think they might encounter.
• Gather your resources and plan how you will integrate them into
your teaching.
• Prepare a brief on what you would like the businessperson to talk
to your class about. Make the arrangements for the talk with plenty
of time to spare, and have a backup speaker ready or an alternative
lesson planned in case the speaker cancels at short notice.

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• Plan your teaching for Lessons 6 and 7 well, as there is a lot of
content to get through in two hours.
• Prepare questions for a class quiz that you can use to revise the
business functions at the end of Lesson 7.

Teaching the topic


There are 3 lessons in this topic.
Lesson Week Pages Activities
6 6 165 —
7 7 165 —
8 8 165—166 14.1—14.2

Lesson 6
• There is a lot of content to work through this week so make sure
you have an efficient system in place for teaching this content.
• Have a brief discussion about participating in a school team
effort where different functions are required for the team to be
successful. Use your resources and the diagram in Figure 14.2 of
the Learner’s Book as a starting point for your discussion of what
business functions are.
• Ask the learners if they can use the discussion to think of what the
business functions would be. Introduce the eight functions.
• Work through the text in the Learner’s Book pages 166–170
about the administration, purchasing, marketing and finance
functions and their characteristics, roles and importance.
• Ask the learners to think about how each function manages the
business’s risk, and teach risk management after you’ve taught each
function.

Lesson 7
• There is a lot of content to work through this week so make sure
you have an efficient system in place for teaching this content.
• Recap briefly what you taught last week about the administration,
purchasing, marketing and finance functions.
• As you did last week, work through the text in the Learner’s
Book pages 170–175 on the public relations, human resources,
production and general management functions and their
characteristics, roles and importance.
• Ask learners to think about how each function manages the business’s
risk. Teach risk management after you’ve taught each function.
• If there is time, have a class quiz in which you ask questions you
have prepared to revise the business functions.

Lesson 8
• Arrange for the visiting businessperson you have chosen to be at
the school for this week’s lesson.
• Introduce the speaker to the class.

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• Tell learners to take notes during the speaker’s talk and hand in
summary notes of the talk for assessment.
• Ensure that the learners listen respectfully and allow time for them
to ask questions if they have any.
• Do Activities 14.1 and 14.2.
• If there is no time to do these activities during class time, set them
for homework as individual work.

Answers
Activity 14.1
1.–3. Middle order (20)
Learners make summary notes of the talk that the speaker gave. Make
sure they are comprehensive and show evidence that the learners have
understood and can apply the contents of the talk. Award 15 marks
for summary content (one mark per point) and 5 marks for content
accuracy and summary structure.

Activity 14.2
Middle order (72)
Business What it does Why it is important How it manages risk
function
Administration Runs the administrative This is an important Businesses are at risk
side of the business. ✔ function because without if their administrative
Keeps administration of accurate record-keeping functions do not work
the business’s operations and administration, ✔ it is properly. ✔ If a business is
running smoothly. ✔ difficult to keep track of not administered smoothly,
what is happening in all the business’s performance
of the departments of the suffers. ✔ When a
business. ✔ business’s administrative
systems are in place, there
is less risk of the business
experiencing problems. ✔
Purchasing Procures or buys all of the This is an important It is important for the
raw materials and finished function because without purchasing function to
products that a business the raw materials needed work properly to manage
needs to function. ✔ to produce goods ✔, a the risk of a business
Purchases things that the business has no outputs running out of the inputs it
business needs to operate and makes no money. ✔ needs to produce outputs.
that are not necessarily ✔ Businesses risk losing
part of producing goods. money if their production
✔ For example, employees processes are delayed due
need desks, computers, to a lack of raw materials.
telephones and stationery. ✔ Delays are expensive
✔ The business also needs and give the business a bad
packaging materials if it reputation. ✔ Businesses
produces goods that it also risk losing money if
packs for sale and services the purchasing function
such as cleaning and is not able to purchase
equipment repair services. goods or raw materials
✔ Keeps an appropriate at the best possible price.
supply of raw materials and ✔ Businesses cannot
other goods and services afford to spend more
available to the business than is necessary on their
so that the business can production costs. ✔
achieve its objectives. ✔

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Business What it does Why it is important How it manages risk
function
Marketing Makes potential customers This is an important When businesses spend
aware of the business’s function because if nobody money to produce goods
goods or services. ✔ knows about or can access or offer services, they
Appeals to a need that the business’s goods, ✔ take a risk because they
potential customers have the business will not make do not know if customers
and provides a way of sales. ✔ will buy their outputs. ✔
meeting that need. ✔ The marketing function
Determines what goods the can manage this risk by
business should produce; bringing customers and
✔ determines how the outputs together so that
business and its goods the business can meet
should be branded to customers’ needs and get a
have the biggest impact return on the money they
on potential customers; invested in production. ✔
✔ determines the best
distribution channels
for the business’s
goods; ✔ advertises and
promotes the goods; ✔
provides publicity for the
business and its goods; ✔
determines the best pricing
for the business’s goods;
✔ finds a target market
for the goods; ✔ makes
decisions about how to
standardise production
processes and manages the
marketing budget. ✔
Finance Manages all of the aspects This is an important A business’s money is at
of the business’s finances. function because huge risk from criminal
✔ businesses exist to make acts such as fraud and
a profit. ✔ They cannot theft and from bad
make a profit if money is business decisions. ✔ The
mismanaged. ✔ finance function constantly
evaluates the business’s
financial risk and makes
sure that these risks are
managed. ✔
Public Gives businesses positive This is an important role The public relations
relations publicity and exposes because consumers’ function is important for
them to as many potential impressions of a business managing the risk of a
customers as possible in as guide them to make their business getting a bad
positive a way as possible buying choices. ✔ reputation. ✔ It is very easy
to encourage sales. ✔ for one consumer to be
Communicates with the unhappy with a good and to
public about what the spread the news about his
business does. ✔ or her bad experience with
a business. ✔ If people hear
enough bad stories about
a business, they will stop
using that business. ✔ The
public relations function
makes sure that consumers
see the business positively
by communicating with
the public and telling them
about all of the business’s
good qualities. ✔

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Business What it does Why it is important How it manages risk
function
Human Manages the people in a It is an important role A dissatisfied workforce
resources business. ✔ Looks after because when employees puts the business at risk
the welfare of employees are not treated well, of industrial action. ✔ An
and ensures that the they do not work well. ✔ unhappy workforce is an
business has the right Good human resources unproductive workforce.
number of employees, with management and skills ✔ This puts the business
the right skills, to operate development are essential at risk of losing money
productively and profitably. for the business’s due to low productivity
✔ productivity. ✔ and of producing poor-
quality goods because of
a lack of motivation and
incentive to work well. ✔
A strong human resources
function allows a business
to manage the risks
associated with staffing. ✔
Production Manages all aspects of This is an important Businesses spend lots of
a business’s production function because without a money on inputs for the
process, including getting well-managed production production process. ✔
the resources or inputs process, ✔ businesses Things like raw materials,
required for the production cannot produce quality employee training and
process in the right goods cost-effectively equipment and machinery
quantities at the right time; enough for the business to for manufacturing are very
✔ manages all aspects of cover its production costs expensive. ✔ They run the
the production process, and make a profit. ✔ risk of this money being
including efficiency and wasted if the production
quality; ✔ scheduling process does not produce
the production process; good-quality goods on
✔ choosing the best schedule. ✔ A strong
production method for production function makes
the good; ✔ managing sure that the production
the production budget; process is efficient and
✔ controlling production that outputs can cover
costs; ✔ keeping up to date production costs. ✔
with technology that makes
production faster and
cheaper ✔ and improving
the production process
to produce better-quality
goods more efficiently. ✔
General Oversees and manages This is an important Because this function
management all of the other business function because manages all of the other
functions. ✔ a business cannot functions, it can observe
operate without strong and analyse how the other
overall leadership and functions are performing
management. ✔ and assess whether they
are putting the business
at risk. ✔ This function
constantly checks the
progress of the business
and of all its functions
against the business’s
vision and mission. ✔
General management
manages risk by making
sure that all of the
functions are working
properly and working
together in the best
interests of the business. ✔

Learners use the topic content in the Learner’s Book to complete the
table with their own summary notes, such as the ones above.

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For information Informal assessment
on Informal
assessment, refer to Activity 14.1: Take in the learners’ summary notes and mark
the self-assessment, them. Observe the learners during the talk and assess how well they
peer assessment and are able to focus and absorb information from an external source. (20)
group assessment
templates in Activity 14.2: Take in the learners’ tables and mark them to
Section 5 of this assess how well the learners are able to summarise information
Teacher’s Guide. for revision. (72)

Consolidation
• Name the eight business functions.
Administration, purchasing, marketing, finance, public relations,
human resources, production, general management
• Discuss the role of the general management function of a
business.
The general management function is the function that oversees
and manages all of the other business functions. Its main role is
to steer the business in the direction of its mission and vision by
managing the activities of the other business functions.
• Explain how the production function helps to manage a
business’s risk.
Businesses spend lots of money on inputs for the production
process. Things like raw materials, employee training and
equipment and machinery for manufacturing are very expensive.
They run the risk of this money being wasted if the production
process does not produce good-quality products on schedule.
A strong production function makes sure that the production
process is efficient and that outputs can cover production costs.

Extension
Choose a business in your area. Find out what it does. Write a
short report in which you say what you think the eight business
functions will do in that business.
Learners choose a local business, research it, and analyse it. They write
down what they think each function will do in that specific business.
For example, if they choose a supermarket, they could say that the
purchasing function buys the supermarket’s stock to sell; the marketing
function produces the television, newspaper and radio adverts that
the local area sees; the human resources function hires cashiers, shelf-
packers, managers and bakery staff, and so on. Learners should show the
integration and application of knowledge to a real business context.

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Topic
UnitCredit
1 transactions: Creditors (2)
15 Learner’s Book pages 177—196 Duration: 4 hours

Term and week/s Curriculum and Assessment Policy Statement


Term 3, Weeks (CAPS) content
9–10
In this topic, learners will learn about FINANCIAL LITERACY.
New words They will look at:
and concepts
cheques;
• recording of payments to creditors in the Cash Payments Journal
(CPJ)
counterfoils;
signing rights; • posting to the Creditors Ledger and General Ledger
Creditors Ledger; • the effect of credit transactions on the accounting equation
General Ledger;
Creditors List; Resources
creditors’ accounts; Learners must each have an exercise book called an ‘Eight money
Creditors Control column’ or ‘Cash money column’ for the CPJ and the CJ. They also
account
need a ‘Double Ledger’ book for the General Ledger and a ‘Treble
Cash’ book for the Creditors Ledger. Photocopy the Cash Payments
and the Creditors Journals and the Creditors and General Ledger
templates found at the end of this guide if necessary.

A calculator for each learner is essential.

Preparation
• Read through the topic and familiarise yourself with the content
that you will need to teach. Think about what learners may
already know about the topics, what skills they already have and
any areas of difficulty that you think they might encounter.
• The learners already know how to record transactions in a General
Ledger. Posting from the CJ to the General Ledger should be
fairly easy for the learners to master because it is done in the same
way as posting from the CPJ.
• Learners are familiar with a three-column ledger and they
also know how to post journals to the Debtors Ledger, which
looks similar to the Creditors Ledger. This should help their
understanding of this content.
• It may be difficult for them to understand that you have two
‘three-column ledgers’ that look exactly the same, but function
in exactly the opposite way to each other. Consider how you will
explain this to learners.

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Teaching the topic
There are 2 lessons in this topic.
Lesson Week Pages Activities
9 9 171—172 15.1—15.2
10 10 172—173 15.3—15.5

Lesson 9
• Refer to Figure 15.1 in the Learner’s Book and discuss the
differences between buying for cash and buying on credit. Remind
learners about the National Credit Act briefly from Topic 7 and
use it to revise buying on credit.
• Continue with recording payments to creditors in the CPJ using
the example of Tucson Stores and Chapman Suppliers in the
Learner’s Book.
• Discuss the steps from the point where the business places the
order until the point where the order is paid.
• Talk about the accounting cycle and explain each step as you
go along.
1. Source document – Cheque: Show learners a cheque on the
board and remind them how to complete it.
2. Journal – Cash Payments Journal: Show learners how to
allocate that cheque payment in the journal, in the Bank and
in the Creditors control columns.
• Do Activity 15.1 Question 1.
• Continue with the example of  Tucson Stores, covering posting
to the Creditors and General Ledgers. Discuss each step as you
go along.
1. Source document – Invoice from the Creditors Journal: posted
to the credit side because it increases the creditor’s account.
2. Source document – Cheque from the Cash Payments Journal:
posted to the debit side because it decreases the creditor’s
account.
• Explain that the Creditor’s Ledger differs from the General Ledger
in that it is updated as soon as a transaction takes place. The
ledger account then shows the balance due after each transaction,
while the General Ledger shows only the closing balance at the
end of the month.
• Do Activity 15.1 Question 2.
• Discuss posting the Creditors Journal to the General Ledger
for creditors, continuing with the example of Chelsea Traders.
There are two ways to explain this:
1. The Creditors Control account has been credited because it
increased (liabilities increase on the credit side) and according
to the double-entry principle, all the other accounts are
debited OR
2. Identify each account, for example: Trading Stock is an
Asset that increased because we bought some stock or
Stationery is an expense that decreased Owner’s equity and
is therefore debited.

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• Emphasise the following:
1. Credit purchases of an Asset
Creditors Control Trading Stock
Liability Asset increased
increased because the
because debt stock has
to a creditor increased
increased

2. Credit purchase of an Expense


Creditors Control Stationery
Liability Stationery is an
increased expense that
because debt decreased the
to a creditor Owners’ equity
increased

3. Payment of the creditor’s account


Creditors Control Bank
Liability Asset
decreased decreased
because debt because the
to a creditor Bank decreased
decreased by a payment

• Use the next example of Sarama Shop in the Learner’s Book


pages 185–189 to consolidate this content.
• Do Activity 15.2.
• Work through this activity with the learners and explain the
calculations. If there are learners struggling with this content, then
calculate the missing figures with them beforehand.

Lesson 10
• Mark and check the previous activities.
• Review the Creditors Ledger and emphasise where we get the
information from:
CJ Invoice Entry in the credit column Add amount to the
balance
CPJ Cheque Entry in the debit column Subtract amount from the
balance

• The business can settle creditors’ accounts in three ways:


– Settle accounts on the first of the month, for example 1 April:
Business pays the previous month’s account in full to the
creditor
– Settle accounts in full (up to date): Business pays the full
amount that he owes up until that day in full
– Settle accounts in part: Business only pays a part of the
creditor’s account.
• Do Activity 15.3.

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• Ask learners to open their journals for the activity and assist them
with the calculations if necessary.
• Do Activity 15.4.
• There is only one calculation in this activity. See whether learners
are able to do this calculation on their own.
• Discuss the effect of credit transactions on the accounting equation.
Start with cash purchases and move on to credit purchases.
• Do Activity 15.5.
• Work through the examples of the accounting equation,
explaining each transaction as you go along.
• If there is time available, do the example in the Learner’s Book
pages 194–196 on analysing and interpreting accounts as an
enrichment activity. This can also be used as a challenge for
learners who understand the content.

Answers
Activity 15.1
1. Middle order (18)
Cash Payments Journal of Books Galore for September 2016 CPJ9
Doc. Day Name of Fol. Bank Creditors Stationery Wages Sundry accounts
no. payee control
Amount Fol. Details
Grab
0432 07 Publishers *C3 ✔ 558 00 ✔ 558 00
CNC News
0433 13 Suppliers *C1 ✔ 1 375 00 ✔ 1 375 00
0434 14 Cash ✔ 600 00 ✔ 600 00
0435 23 Boxes Inc. ✔ 196 00 ✔ 196 00
0436 24 Tech B2E ✔ 9 450 00 ✔ 9 450 00 *N10 Repairs ✔
0437 29 Cash ✔ 600 00 ✔ 600 00
0438 30 Tech B2E *C2 ✔ 2 638 00 ✔ 2 638 00
✔ 15 417 00 4 571 00 196 00 1 200 00 ✔ 9 450 00

*B5 *B7 *N8 ✔

*Folio numbers are only inserted once cross-entries have been made.

2. Middle order (22)


Creditors Ledger of Books Galore
CNC News Suppliers C1
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2016
Sept 01 Account rendered ✔ 3 420 00
02 Invoice no. 101 ✔ CJ9 ✔ 4 117 00 7 537 00
13 Cheque no. 0433 ✔ CPJ9 ✔ 1 375 00 ✔ 6 162 00 (6)

Tech B2E C2
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2016
Sept 01 Account rendered ✔ 2 270 00
09 Invoice no. 102 ✔ CJ9 ✔ 368 00 2 638 00
30 Cheque no. 0438 ✔ CPJ9 ✔ 2 638 00 ✔ 0 00 (6)

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Grab Publishers C3
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2016
Sept 01 Account rendered ✔ 558 00
07 Cheque no. 0432 ✔ CPJ9 ✔ 558 00 0 00
16 Invoice no. 103 ✔ CJ9 ✔ 4 019 00 ✔ 4 019 00 (6)

List (schedule) of creditors balances on 30 September 2016


CNC News Suppliers C1 R6 162,00 ✔
Tech B2E C2 R0,00 ✔
Grab Publishers C3 R4 019,00 ✔
Creditors control B7 R10 181,00 ✔ (4)

Activity 15.2
1. Middle order (26)

Cash Payments Journal of Barnes Stationers for May 2020 CPJ5


Doc. Day Name of Fol. Bank Trading stock Creditors Wages Sundry accounts
no. payee control
Amount Fol. Details
56 02 Onelogix C3 ✔✔ 10 340 00 ✔ 10 340 00
57 04 Telkom ✔ 569 00 ✔ 569 00 Drawings ✔
58 16 Fitch & Co. C2 ✔✔ 31 028 00 ✔ 31 028 00
59 Cash ✔ 840 00 ✔ 840 00
60 23 Cash ✔ 840 00 ✔ 840 00
Mia Casa Rent
61 28 Agents ✔ 4 800 00 ✔ 4 800 00 expense ✔
Wapnick
62 30 Suppliers ✔ 54 047 00 ✔ 48 165 00 ✔ 482 00 N5 Stationery ✔
✔ ✔ 5 400 00 B6 Equipment ✔
✔ 102 464 00 48 165 00 41 368 00 1 680 00 ✔ 11 251 00

B5 B7 B8 ✔

Learners must pay attention to the following:


2 May: The outstanding balance of Onelogix = Creditors control –
Khaya Suppliers – Fitch & Co. = R71 940 – R39 600 – R22 000 =
R10 340
16 May: R22 000 + R799 + R8 229 = R31 028

2. Middle order (26)

Creditors Ledger of Barnes Stationers


Khaya Suppliers C1
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2020
May 01 Account rendered ✔ 39 600 00
08 Invoice no. 22 ✔ CJ5 ✔ 783 00 40 383 00
20 Invoice no. 24 ✔ CJ5 ✔ 1 140 00 ✔ 41 523 00 (6)

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Fitch & Co. C2
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2020
May 01 Account rendered ✔ 22 000 00
04 Invoice no. 21 ✔ CJ5 ✔ 799 00 22 799 00
14 Invoice no. 23 ✔ CJ5 ✔ 8 229 00 31 028 00
16 Cheque no. 58 ✔ CPJ5 ✔ 31 028 00 ✔ 0 00 (8)

Onelogix C3
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2020
May 01 Account rendered ✔ 10 340 00
02 Cheque no. 56 ✔ CPJ5 ✔ 10 340 00 ✔ 0 00 (4)

The Advertiser C4
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2020
May 26 Invoice no. 25 ✔ CJ5 ✔ 824 00 ✔ 824 00 (3)

List (schedule) of creditors balances on 30 September 2016


Khaya Suppliers C1 R41 523,00 ✔
Fitch & Co. C2 R0,00 ✔
Onelogix C3 R0,00 ✔
The Advertiser C4 R824,00 ✔
Creditors control B8 R42 347,00 ✔ (5)

3. Middle order (28)


General Ledger of Barnes Stationers
Balance Sheet accounts
Dr Bank b5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2020 2020
May 01 Balance b/d ✔ 85 800 00 May 31 Total payments ✔ CPJ5 ✔ 102 464 00 (3)

Dr Equipment b6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2020
May 01 Balance b/d ✔ 137 500 00
14 Creditors control ✔ CJ5 ✔ 4 800 00
30 Bank ✔ CPJ5 ✔ 5 400 00
✔ 147 700 00 (6)

Dr Trading Stock b7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2020
May 01 Balance b/d ✔ 92 950 00
31 Creditors control ✔ CJ5 ✔ 5 368 00
Bank ✔ CPJ5 ✔ 48 165 00
✔ 146 483 00 (6)

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Dr Creditors Control b8 Cr
Date Details Fol. Amount Date Details Fol. Amount
2020 2020
May 31 Bank ✔ CPJ5 ✔ 41 368 00 May 01 Balance b/d ✔ 71 940 00
Balance c/d ✔ 42 347 00 31 Sundry purchases ✔ CJ5 ✔ 11 775 00
83 715 00 83 715 00
2020
Jun 01 Balance ✔ b/d 42 347 00 (7)

Nominal accounts
Dr Stationery n5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2020
May 01 Balance b/d ✔ 7 370 00
30 Bank ✔ CPJ5 ✔ 482 00
31 Creditors control ✔ CJ5 ✔ 783 00
✔ 8 635 00 (6)

Activity 15.3
Learners must pay attention to the following calculations:
The balance of the Creditors control
= Cotfab Distributors + Neven & Co. + Eggers Traders + Singh Stores
= R2 340 + R9 510 + R2 364 + R390
= R14 604
29 Sep: R2 340 + R1 280,40 = R3 620,40

1. Middle order (21)

Cash Payments Journal of Blaine Traders for September 2012 CPJ9


Doc. Day Name of payee Fol. Bank Trading stock Creditors Sundry accounts
no. control
Amount Fol. Details
840 02 Neven & Co. C2 ✔ 5 910 00 ✔ 5 910 00
841 04 Bestbier Furniture ✔ 12 700 00 ✔ 12 700 00 B6 Equipment ✔
842 12 Eggers Traders C3 ✔ 2 364 00 ✔ 2 364 00

843 14 Neven & Co. ✔ 2 794 00 ✔ 2 794 00


Vehicle –
844 23 Kaan Motors ✔ 1 020 00 ✔ 1 020 00 expenses ✔

845 27 Neven & Co. C2 ✔ 3 600 00 ✔ 3 600 00

846 29 Cotfab Distributors C1 ✔✔ 3 620 40 ✔ 3 620 40


✔ ✔ 32 008 40 2 794 00 15 494 40 ✔ 13 720 00

B7 B9 ✔

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2. Middle order (28)
Creditors Ledger of Blaine Traders
Cotfab Distributors C1
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2012
Sep 01 Account rendered ✔ 2 340 00

21 Invoice no. 623 ✔ CJ9 ✔ 1 280 40 3 620 40

29 Cheque no. 846 ✔ CPJ9 ✔ 3 620 40 ✔ 0 00


30 Invoice no. 626 CJ9 2 340 00 2 340 00 (6)

Neven & Co. C2


Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2012
Sep 01 Account rendered ✔ 9 510 00

02 Cheque no. 840 ✔ CPJ9 ✔ 5 910 00 3 600 00

25 Invoice no. 624 ✔ CJ9 ✔ 5 315 70 8 915 70

27 Cheque no. 845 ✔ CPJ9 ✔ 3 600 00 ✔ 5 315 70 (8)

Eggers Traders C3
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2012
Sep 01 Account rendered ✔ 2 364 00

08 Invoice no. 622 ✔ CJ9 ✔ 6 313 70 8 677 70

12 Cheque no. 842 ✔ CPJ9 ✔ 2 364 00 6 313 70

29 Invoice no. 625 ✔ CJ9 ✔ 4 824 00 ✔ 11 137 70 (8)

Singh Stores C4
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2012
Sep 01 Account rendered ✔ 390 00 (1)

List (schedule) of creditors’ balances on 30 September 2012


Cotfab Distributors C1 R2 340,00 ✔
Neven & Co. C2 R5 315,70 ✔
Eggers Traders C3 R11 137,70 ✔
Singh Stores C4 R390,00 ✔
Creditors control B9 R19 183,40 ✔ (5)

3. Middle order (26)

General Ledger of Blaine Traders


Balance Sheet accounts
Dr Equipment b6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Sep 01 Balance b/d ✔ 53 648 00
04 Bank ✔ CPJ9 ✔ 12 700 00
25 Creditors control ✔ CJ9 ✔ 1 800 00 (5)

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Dr Trading Stock b7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Sept 01 Balance b/d ✔ 7 095 00
30 Creditors control ✔ CJ9 ✔ 12 785 30
Bank ✔ CPJ9 ✔ 2 794 00 (5)

Dr Creditors Control b9 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012 2012
Sept 30 Bank ✔ CPJ9 ✔ 15 494 40 Sept 01 Balance b/d ✔✔ 14 604 00
Balance ✔ c/d 19 183 40 30 Sundry purchases ✔ CJ9 ✔ 20 073 80
34 677 80 34 677 80
2012
Oct 01 Balance b/d ✔ 19 183 40 (8)

Nominal accounts
Dr Stationery n5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Sept 01 Balance b/d ✔ 652 00
25 Creditors control ✔ CJ9 ✔ 247 50
29 Creditors control ✔ CJ9 ✔ 4 824 00 (5)

Dr Packing Material n6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Sept 01 Balance b/d ✔ 780 00
25 Creditors control ✔ CJ9 ✔ 417 00 (3)

Activity 15.4
1.–2. Middle order (24)
Learners must pay attention to the calculation for Stationery:
R162 537 – R78 642 – R18 360 – R54 264 = R11 271

General Ledger of Moody Traders


Balance Sheet accounts
Dr Trading Stock b6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015
Jun 01 Balance b/d ✔ 591 600 00
30 Bank ✔ CPJ6 ✔ 71 400 00
Creditors control ✔ CJ6 ✔ 78 642 00
✔ 741 642 00 (6)

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Dr Creditors Control b7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015 2015
Jun 30 Bank ✔ CPJ6 ✔ 96 900 00 Jun 01 Balance b/d ✔ 107 100 00
Balance c/d ✔ 172 737 00 30 Sundry purchases ✔ CJ6 ✔ 162 537 00
269 637 00 269 637 00
2015
Jul 01 Balance b/d ✔ 172 737 00 (7)

Nominal accounts
Dr Stationery n4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015
Jun 01 Balance b/d ✔ 23 460 00
21 Bank ✔ CPJ6 ✔ 12 750 00
30 Creditors control ✔ CJ6 ✔✔ 11 271 00
✔ 47 481 00 (7)

Dr Packing Material n5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015
Jun 01 Balance b/d ✔ 8 215 00
30 Creditors control ✔ CJ6 ✔ 18 360 00
✔ 26 575 00 (4)

Activity 15.5
Middle order (70)
No. Source Account Account ASSETS OWNER’S EQUITY LIABILITIES
document debited credited Effect Reason Effect Reason Effect Reason
01 Bank Bank ✔ Capital ✔ ✔+400 000 Cash ✔+400 000 Owners capital
deposit slip increases ✔ contribution ✔
(duplicate) ✔
02 Cheque Rent Bank ✔ ✔—27 400 Cash ✔—27 400 Rent —
counterfoil ✔ expense ✔ decreases ✔ expense ✔
03 Invoice Equipment Creditors ✔+94 260 Equipment ✔+94 260 Owe
(original) ✔ ✔ control ✔ increases ✔ creditors
more ✔
04 Invoice Stationery Creditors ✔—569 Stationery — ✔+569 Owe
(original) ✔ ✔ control ✔ expense ✔ creditors
more ✔
05 Cheque Drawings Bank ✔ ✔—680 Cash ✔—680 Drawings ✔
counterfoil ✔ ✔ decreases ✔
06 Cheque Telephone Bank ✔ ✔—961 Cash ✔—961 Telephone —
counterfoil ✔ ✔ decreases ✔ expense ✔
07 Cheque Creditors Bank ✔ ✔—25 000 Cash ✔—25 000 Owe
counterfoil ✔ control ✔ decreases ✔ creditors
less ✔
08 Invoice Trading Creditors ✔+31 450 Trading ✔+31 450 Owe
(original) ✔ stock ✔ control ✔ stock creditors
increases ✔ more ✔
09 Cheque Wages ✔ Bank ✔ ✔—1 700 Cash ✔—1 700 Wages —
counterfoil ✔ decreases ✔ expense ✔
10 Cheque Trading Bank ✔ ✔—26 890 Cash
counterfoil ✔ stock ✔ decreases ✔
✔+26 890 Trading
stock
increases ✔

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For information Informal assessment
on Informal
assessment, refer to Activity 15.1: Show the CPJ on an overhead/data projector while
the self-assessment, you work through each transaction. Then show the completed CJ
peer assessment and from Activity 13.2 together with the CPJ. Explain step by step on the
group assessment board how you post to the Creditors Ledger. Highlight the invoices
templates in in one colour and use the same colour in the credit column of the
Section 5 of this
Creditors Ledger. Highlight the cheques in another colour and
Teacher’s Guide.
use the same colour in the debit column of the Creditors Ledger.
Learners can mark their own work.  (40)

Activities 15.2—15.3: Show the CPJ on an overhead/data


projector while you work through each transaction. Then show
the completed CJ from Activity 13.3 together with the CPJ. Explain
step by step how you post to the Creditors Ledger and the General
Ledger, using different colours for each journal.
Another way to mark Activity 15.3 is by using a handout. This
gives learners who are struggling time to work at their own pace
and you some time to check learners’ books.  (155)

Activity 15.4: A good method of marking a General Ledger is by


doing it on the board, as you explain where the answers come from.
Learners’ answers can also be marked by a partner using a handout
for informal assessment class marks.  (24)

Activity 15.5: Learners do this activity on the board. Call one


learner at a time to the board to complete a transaction, while you
do corrections, if necessary. This is a good way to assess whether
learners still struggle with the accounting equation and in what
areas.  (70)

Consolidation
• Complete the following sentences.
– A credit transaction is a transaction where the business buys
items on credit.
– A creditor is a Current liability because the business must pay
back the debt within one year.
– After the business orders goods, it receives an original invoice
with the goods.
– Creditors are suppliers to whom the business owes money.
• TRANSACTION: Received invoice 756 from EMS Suppliers
for goods, R1 970 less 2,5% trade discount; 5 packs of paper,
R57,20 each; and 9 rolls of packing material at R5 each.
The last invoice entered in the CJ of Huguenot All Sorts was
no. 233. Complete the invoice on 3 March 2016. Complete the
CJ entry for this invoice.

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ORIGINAL NO. 756
234
INVOICE
Tax invoice
VAT no. 25894
3 March 2016
TO: Huguenot All Sorts
BOUGHT FROM: EMS SUPPLIERS

Quantity Description PRICE AMOUNT


Goods less 2,5% trade discount 1 920 75
5 Packs of paper 57 20 286 00
9 Rolls packing material 5 00 45 00
2 251 75

Creditors Journal of Huguenot All Sorts for March 2016 CJ3


Doc. Day Creditors Fol. Creditors Trading stock Sundry accounts
no. control
Amount Fol. Details
234 03 EMS Suppliers 2 251 75 1 920 75 286 00 Stationery
45 00 Packing material

Extension
• Use the four creditors’ accounts of Neverland Suppliers to
draw up the Creditors Control account in the General Ledger.

Creditors Ledger of Neverland Suppliers


Captain Hook Traders C1
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2012
Jul 01 Account rendered 2 115 00

15 Invoice no. 63 CJ 2 423 00 4 538 00

28 Invoice no. 65 CPJ 4 413 00 8 951 00

Peter Pan Stores C2


Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2012
Jul 01 Account rendered 1 458 00
04 Cheque no. 704 CPJ 1 458 00 0 00
25 Invoice no. 64 CJ 1 989 00 1 989 00

Tinkerbell Shoppe C3
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2012
Jul 01 Account rendered 2 314 00
15 Invoice no. 62 CJ 1 470 00 3 784 00
21 Cheque no. 707 CPJ 964 00 2 820 00

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Wendy & Co.  C4
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2012
Jul 06 Invoice no. 61 CJ 295 00 295 00

This activity appears easy, however learners find it difficult to


understand exactly what they need to do. Do an example with them
first if necessary. Learners must understand the basic ‘picture’ of the
Creditors Control account:

Dr Creditors Control Cr
Bank CPJ (total of all payments/cheques) Balance b/d (total of the creditors’ accounts
Balance c/d (total of the creditors’ final rendered at the beginning of the month)
balances) Sundry purchases CJ (total of all invoices)

General Ledger of Neverland Suppliers


Balance Sheet accounts
Dr Creditors Control b6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012 2012
Jul 31 Bank CPJ 2 422 00 Jul 01 Balance b/d 5 887 00
Balance c/d 14 055 00 31 Sundry purchases CJ 10 590 00
16 477 00 16 477 00
2012
Jul 01 Balance b/d 14 055 00

• Use the information below and draw up a Creditors control


account in the books of Serotonin Traders. Balance the
account and supply appropriate folio references.

Transactions for October 2017


01 Total amount owing to creditors, R435 917,62.
30 Total credit purchases of items during the month, R502 172,40.
Total payments to creditors during the month, R522 912,60.

General Ledger of Serotonin Traders


Balance Sheet account
Dr Creditors Control b9 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017 2017
Oct 31 Bank CPJ 522 912 60 Oct 01 Balance b/d 435 917 62
Balance c/d 415 177 42 31 Sundry purchases CJ 502 172 40
938 090 02 938 090 02
2017
Nov 01 Balance b/d 415 177 42

• Record the transactions of Thierry’s Furnishers on the next


page in the account of Evangelino’s Traders. Supply the
required folio references; document numbers may be ignored.

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Transactions for November 2014
01 Amount owed to Evangelino’s Traders, R25 926,00.
03 Bought goods on credit from Evangelino’s Traders, R141,00.
06 Bought packing material by cheque from Evangelino’s Traders,
R3 258,00.
15 Received goods on credit rendered by Evangelino’s Traders, R472,80.
25 Sent a cheque to Evangelino’s Traders in settlement of the amount
to date.

Creditors Ledger of Thierry’s Furnishers


Evangelino’s Traders C1
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2014
Nov 01 Account rendered 25 926 00
03 Invoice CJ 141 00 26 067 00
15 Invoice CJ 472 80 26 539 80
25 Cheque CPJ 26 539 80 0 00

The transaction of 6 May is a cash transaction, so it is not shown in


the Creditors Ledger. The business has already paid for these goods.

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Revision Term 3
Learner’s Book pages 197—202

Topic 11: Trade unions


Activity 1: Revise trade unions
1.1 Define a trade union. (7) Lower order
A trade union is an organised association of workers ✔ in a trade,
group of trades, or a profession, ✔ that is formed to protect and
further the workers’ rights and interests. ✔ It negotiates with
employers for their members. ✔ A trade union is controlled,
run and paid for by its members. ✔ Trade unions negotiate
with employers to get the best deal for their members in terms
of hiring, firing, wages and working conditions. ✔ They are
organisations of workers that protect the rights and promote the
interests of their members. ✔
1.2 Explain what an organised worker is. (1) Lower order
A worker who belongs to a trade union ✔
1.3 Describe a trade union’s main function. (2) Lower order
To protect worker rights ✔ and promote worker interests ✔
1.4 There are trade unions for four different groups of workers
in South Africa. Name each group and give a brief description
of each. (8) Middle order
• General workers: ✔ Skilled and unskilled employees in a
range of industries ✔
• Tradesmen: ✔ Employees with particular skills such as
bricklaying ✔
• Blue-collar workers: ✔ Skilled and unskilled workers in a
particular industry ✔
• White-collar workers: ✔ Professionals such as teachers ✔
1.5 Write a paragraph explaining how trade unions helped to end
apartheid. (14) Middle order
Cheap labour helped to build South Africa during the apartheid
years. ✔ The apartheid government took away black South
Africans’ freedom to work and live where they wanted to. ✔ They
became guest workers in their own country because of the system
of black homelands. ✔ If you worked outside of the homelands
you were regarded as migrant labour. ✔ Black workers were
very poorly paid and overworked. ✔ They fought for the end of
apartheid as well as for better working conditions. ✔ The trade
union movement in South Africa helped to change apartheid laws
and to bring about the rights that South African workers enjoy
today. ✔ One of the most important of those rights is the right
to take industrial action such as to strike. ✔ Trade unions were a
strong force that helped to bring about political change. ✔ Today,
the government sets minimum wages for workers in different

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industries, including domestic workers and farm labourers. ✔ In
the 1980s, Cosatu organised mass strikes against new labour laws.
✔ The trade unions, together with community organisations,
arranged many stay-aways through which people demanded
political change. ✔ Many trade union leaders became well-known
members of the African National Congress (ANC) after the 1994
elections. ✔ After the first democratic elections of 1994, the new
government passed new labour laws to protect workers. ✔
1.6 What is industrial action? (2) Lower order
It is action that workers take ✔ to protest against their employers. ✔
1.7 Name five roles of trade unions. (5) Lower order
Trade unions:
• Negotiate with employers through collective bargaining
to improve their members’ wages, benefits and working
conditions and to manage retrenchments ✔
• Work to get the government to pass laws that will improve
their members’ lives ✔
• Provide professional training, legal advice and legal
representation for their members ✔
• Organise industrial action ✔
• Represent workers’ interests during disputes with employers ✔
• Work with employers to get employees a greater say in the
decisions that management makes. ✔ (Any 5)
1.8 Define collective bargaining. (3) Lower order
This is when trade unions ✔ negotiate workers’ rights ✔ with
employers. ✔
1.9 Name five responsibilities of trade unions. (5) Lower order
Trade unions must:
• Negotiate with employers to improve their members’ working
conditions ✔
• Try to attract new trade union members ✔
• Not force anyone into joining a trade union ✔
• Make decisions based on a secret vote by all their members ✔
• Ensure that all industrial action is lawful and peaceful ✔
• Make reasonable demands on the employers ✔
• Help to settle disputes between employers and employees ✔
• Help to bring about peaceful workplaces. ✔ (Any 5)
1.10 Describe how trade unions affect businesses. (20) Middle order
Trade unions have a lot of power. ✔ They have the potential to
have great effects on businesses. ✔ To know what these effects
are, businesses need to be familiar with the Labour Relations
Act (LRA) and the Constitution of South Africa. ✔ This
legislation gives workers and their unions the right to:
• Form, join and take part in a trade union ✔
• Settle disagreements with their employers through an
independent third party, the Commission for Conciliation,
Mediation and Arbitration (CCMA). The CCMA is
an official and independent group of people from the
government, organised business and organised labour ✔

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• Be at the workplace for union reasons ✔
• Elect trade union representatives at the workplace ✔
• Take time off for union activities ✔
• Access information for collective bargaining purposes ✔
• Strike, although not all strikes are protected by the Act. ✔
These trade union rights help to guide businesses and employees
in labour relations. ✔ The LRA makes labour legislation
in South Africa consistent with the International Labour
Organisation’s (ILO) international labour laws. ✔
Businesses need to make sure they accommodate trade unions.
✔ So, they need to know about:
• Collective bargaining: ✔ A process that workers and
businesses use to negotiate about working conditions ✔
• Workplace forums: ✔ Employee forums that give employees
a say in how a business is run ✔
• Industrial action ✔
• Disciplinary action: ✔ Including disputes and dismissals ✔
1.11 What is a workplace forum? (3) Lower order
An employee forum ✔ that gives employees a say ✔ in how a
business is run ✔
1.12 Explain how trade unions can contribute to sustainable
growth and development. (7) Middle order
Trade unions make for an educated workforce ✔ that is
respected and encouraged to improve its skills. ✔ They ensure
healthy dialogue between workers and employers ✔ in an
environment where the rights of employers and employees
are protected by law. ✔ By protecting the rights of employers
and employees, trade unions contribute to sustainable growth
and development. ✔ A business that exploits its workers is not
growing and developing sustainably. ✔ A business that respects
its workers and develops their skills is creating a climate for
sustainable growth and development. ✔

Topic 12: Credit transactions: Debtors (2)


Activity 2: Revise credit transactions for debtors
2.1 Middle order
November 2019
01 P Nagiah owes Glacier Traders R16 800. ✔
21 P Nagiah bought items for R4 600 from Glacier Traders. ✔
Source document: Invoice (duplicate). ✔
28 P Nagiah pays R13 000 to Glacier Traders. ✔
Source document: Receipt (duplicate). ✔
30 P Nagiah owes Glacier Traders R8 400. ✔ (6)

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2.2 Middle order
a. CRJ ✔
b. CPJ ✔
c. CRJ ✔
d. CRJ ✔
e. DJ ✔ (5)
2.3 Middle order
a. B (1) and (3) ✔
b. B only (2) ✔
c. C only (4) ✔ (3)
2.4 Middle order
a. Sales is an income account and income increases when goods
are sold. ✔ Income accounts increase by credit entries. ✔
b. Trading stock is an Asset and this asset decreases by the cost
price of goods sold, as the stock is no longer in the business.
✔ Asset accounts decrease by credit entries. ✔
c. Cost of sales is an Expense and increases when more goods are
sold. ✔ Expense accounts increase by debit entries. ✔
(3 × 2 = 6)

Topic 13: Credit transactions: Creditors (1)


Activity 3: Revise credit transactions for creditors
3.1 Middle order

A 665 ✔ E R994 ✔ H R3 582 ✔


B N ✔ F CJ ✔ I R993 ✔
C B ✔ G R8 118 ✔ J R21 112 ✔
D Creditors control ✔
(10)
3.2 Higher order
R3 980 – R3 582 = R398 ✔✔
​  398  ​ 
Trade discount = _____ × 100 = 10% ✔✔✔ (5)
3 980

Topic 14: Functions of a business


Activity 4: Revise the functions of a business
4.1 What is a business function? (3) Lower order
An operation or process ✔ that people in the business perform
often ✔ to help the business to achieve its objectives ✔
4.2 There are eight business functions. Name them. (8)
Lower order
• Administration function ✔
• Purchasing function ✔
• Marketing function ✔
• Finance function ✔
• Public relations function ✔
• Human resources function ✔
• Production function ✔
• General management function ✔

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4.3 Name the business function that handles and records
information and keeps records. (1) Lower order
The administration function ✔
4.4 List five activities of the purchasing function. (5) Lower order
The purchasing function is responsible for:
• Acquiring raw materials at the best possible price ✔
• Making sure that the raw materials are ordered on time so that
production is not held up ✔
• Making sure that purchases stay within budget ✔
• Keeping accurate records of purchases ✔
• Making sure that there is always enough stock of raw
materials, but not too much. When there is too much, it
means that the business has spent money unnecessarily on raw
materials that it doesn’t need yet. That money could have been
better spent elsewhere in the business. ✔
4.5 Explain how the production function helps a business to
manage risk. (9) Middle order
It is important for the purchasing function to work properly to
manage the risk of a business running out of the inputs it needs
✔ to produce outputs. ✔ Businesses risk losing money if their
production processes are delayed due to a lack of raw materials. ✔
Delays are expensive ✔ and give the business a bad reputation. ✔
Businesses also risk losing money ✔ if the purchasing function is
not able to purchase goods or raw materials ✔ at the best possible
price. ✔ Businesses cannot afford to spend more than is necessary
on their production costs. ✔
4.6 Define publicity. (2) Lower order
Actions that are designed to attract the interest ✔ of the public ✔
4.7 Which business function determines which distribution
channels to use for a business’s goods? (1) Middle order
The marketing function ✔
4.8 Explain why the finance function is so important. (3)
Middle order
The role of the finance function is to manage all of the aspects of
the business’s finances. ✔ This is an important function because
businesses exist to make a profit. ✔ They cannot make a profit if
money is mismanaged. ✔
4.9 What is public relations? (6) Lower order
Public relations is about giving businesses positive publicity ✔
and exposing them to as many potential customers as possible ✔
in as positive a way as possible ✔ to encourage sales. ✔ The public
relations function communicates with the public ✔ about what
the business does. ✔
4.10 Name five responsibilities of the HR function. (5) Lower
order
The human resources function manages a business’s staffing. It
deals with the following:
• Recruiting or hiring staff ✔
• Defining job descriptions ✔

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• Administering staff leave ✔
• Retaining staff so that they do not go and work for the
competition ✔
• Dismissing and retrenching staff if necessary in a way that
complies with labour legislation ✔
• Keeping staff happy, fulfilled and motivated so that they
perform well ✔
• Training staff and developing their skills ✔
• Ensuring that the workplace is healthy and safe, in
compliance with occupational health and safety laws ✔
• Working with trade unions to maintain good labour
relations and resolve disputes ✔
• Keeping the business compliant with laws such as the
Employment Equity Act, Labour Relations Act, Basic
Conditions of Employment Act and Skills Development
Act. ✔ (Any 5)
4.11 Describe the responsibilities of the production function.
(10) Middle order
The production function manages all aspects of a business’s
production process, ✔ including:
• Getting the resources or inputs required for the production
process in the right quantities at the right time ✔✔
• Managing all aspects of the production process, including
efficiency and quality ✔
• Scheduling the production process ✔
• Choosing the best production method for the goods ✔
• Managing the production budget ✔
• Controlling production costs ✔
• Keeping up to date with technology that makes production
faster and cheaper ✔
• Improving the production process to produce better-quality
goods more efficiently. ✔
4.12 Which business function makes sure that all of the functions
work together? (1) Lower order
The general management function ✔

Topic 15: Credit transactions: Creditors (2)


Activity 5: Revise credit transactions for creditors
Learners must pay attention to the following:
13 May: R6 246 + R22 412 = R 28 658

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5.1 Middle order
Cash Payments Journal of Rent-a-Costume & Décor for May 2019 CPJ5
Doc. Day Name of Fol. Bank Creditors Wages Trading stock Sundry accounts
no. payee control
Amount Fol. Details
81 02 Pen & Paper ✔1 068 00 ✔547 00 N5 Stationery✔
Material
✔521 00 N6 cost✔
82 08 Cash ✔500 00 ✔500 00 Cash float✔
83 Cash ✔3 400 00 ✔3 400 00
Forsyth
84 13 Traders C1 ✔28 658 00 ✔28 658 00
85 15 Cash ✔3 400 00 ✔3 400 00
86 Cash ✔600 00 ✔600 00 B2 Drawings✔
87 Cash ✔3 655 00 ✔3 655 00
88 17 Thembelani’s C2 ✔23 250 00 ✔1 250 00 ✔22 000 00
89 18 Telkom ✔1 418 00 ✔1 040 00 Telephone✔
✔378 00 B2 Drawings✔
90 25 Cash ✔23 500 00 ✔3 400 00 ✔20 100 00 B5 Equipment✔
91 27 B Bell-Roberts ✔11 700 00 ✔11 700 00 Salaries✔
✔ 101 149 00 29 908 00 10 200 00 25 655 00 35 386 00

B8 B9 (35)

5.2 Middle order


Creditors Journal of Rent-a-Costume & Décor for May 2019 CJ5
Doc. Day Creditor Fol. Creditors Trading stock Stationery Sundry accounts
no. control
Amount Fol. Details
21 06 Thembelani’s C2 ✔23 936 00 ✔23 936 00 B5 Equipment✔
22 11 Forsyth Traders C1 ✔22 412 00 ✔19 850 00 N6 Material cost✔
✔2 562 00 Repairs✔
Bacchus
23 21 Stationers C4 ✔876 00 ✔625 00 ✔251 00 Packing material✔
24 24 Thembelani’s C2 ✔16 300 00 ✔15 400 00 ✔900 00 B2 Drawings✔
25 30 Kidz Parties C3 ✔410 00 ✔410 00 Advertisements✔
✔ 63 934 00 15 400 00 625 00 47 909 00

B8 B9 N5 (20)

5.3 Middle order


General Ledger of Rent-a-Costume & Décor
Balance Sheet accounts
Dr Drawings b2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
May 01 Balance b/d ✔ 7 000 00
15 Bank CPJ5 ✔ 600 00
18 Bank CPJ5 ✔ 378 00
24 Creditors control CJ5 ✔ 900 00
✔ 8 878 00

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Dr Creditors Control b8 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019 2019
May 31 Bank ✔ CPJ5 29 908 00 May 01 Balance ✔ b/d 12 552 00 ✔
Balance ✔ c/d 46 578 00 31 Sundry purchases ✔ CJ5 63 934 00 ✔

76 486 00 76 486 00
2019
Jun 01 Balance ✔ b/d 46 578 00

Dr Trading Stock b9 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
May 01 Balance b/d ✔ 192 213 00
31 Creditors control CJ5 ✔ 15 400 00
Bank CPJ5 ✔ 25 655 00
✔ 233 268 00

Nominal accounts
Dr Stationery n5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
May 01 Balance b/d ✔ 749 00
02 Bank CPJ5 ✔ 547 00
31 Creditors control CJ5 ✔ 625 00
✔ 1 921 00

(20)
5.4 Middle order
Creditors Ledger of Rent-a-Costume & Décor
Thembelani’s C2
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2019
May 01 Account rendered✔ ✔1 378 00
06 Invoice no. 21✔ CJ5 ✔ 23 936 00 ✔25 314 00
17 Cheque no. 88✔ CPJ5 ✔ 1 250 00 ✔24 064 00
24 Invoice no. 24✔ CJ5 ✔ 16 300 00 ✔40 364 00
✔ (12)

TOTAL MARKS: 253

Formal assessment
For information on how to assess learners’ assignments, controlled
tests, case studies and projects, please see Section 3 of this
Teacher’s Guide.

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GRADE 9 CONTROLLED TEST 2 TERM 3
TIME: 1 HOUR TOTAL: 100 MARKS

SECTION A
QUESTION 1 [20 marks; 12 minutes]
TASK
Read the information and answer the following questions.

Short history of COSATU


The Congress of South African Trade Unions (COSATU) was launched in December 1985 after
four years of unity talks between unions opposed to apartheid and committed to a non-
racial, non-sexist and democratic South Africa. At our launch we represented less than half a
million workers organised into 33 unions. We currently have more than two million workers,
of whom at least 1.8 million are paid up. Even by international standards we have been among
the fastest growing trade union movements in the world. Today, when most trade unions are
facing a decline in membership, we have continued to grow.

Our main broad strategic objectives have always been:


• to improve the material conditions of our members and of the working people as a whole
• to organise the unorganised
• to ensure that participation of workers takes place in the struggle for peace and
democratic principles.

Since its inception, it is a federation based on the following core principle: Non-racialism — COSATU
rejects apartheid and racism in all its forms. We believe that all workers, regardless of race, should
organise and unite. Now more than ever before we need to bury the apartheid legacy.
Source: www.COSATU.org.za

1.1 What does the acronym COSATU stand for? (2)


1.2 When was COSATU founded? (2)
1.3 In South Africa there are trade unions for four groups of workers.
Name each group and give a brief description of each. (8)
1.4 Name two of COSATU’s goals. (4)
1.5 Define the following concepts:
1.5.1 Collective bargaining (2)
1.5.2 Workplace forums  (2)
[20]

SECTION B
QUESTION 2 [28 marks; 17 minutes]
TASK
Toys for Us toy store sells toys to various other toy stores in the area.
Dinkie Toy is the owner and manager of the store.

2.1 Complete the Debtors Control and Trading Stock accounts in the
General Ledger.
2.2 Complete Baby Boom’s account in the Debtors Ledger.

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The partially completed accounts appear below.

Additional information
1. The total of the Debtors list at the end of August amounted to
R55 600.
2. The company applies a mark-up of 100% on cost.
3. Goods worth R76 800 were purchased cash during the month.
4. The cost of goods sold on credit was R26 540.
5. The cost of goods sold for cash was R32 180.
6. The total amount of money received from debtors amounted to
R61 040.
7. Total for invoices received for goods, R55 310.

NOTE: The mark-up percentage of 100% is very high and considered


to be unethical business practice. It is only used here for ease of
calculation.

Debtors Ledger of Toys for Us


Baby Boom D1
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2014
Sept 01 Account rendered 17 890 00

05 DJ 22 790 00
14 Receipt 7 200 00
18 Invoice 9 950 00
31 CRJ 0 00

(8)

General Ledger of Toys for Us


Balance Sheet accounts
Dr Debtors Control Cr
Date Details Fol. Amount Date Details Fol. Amount
2014 2014
Sep 01 Balance b/d Sep 30 Bank CRJ
30 DJ Balance c/d

2014
Oct 01 Balance b/d

(8)
Dr Trading Stock Cr
Date Details Fol. Amount Date Details Fol. Amount
2014 2014
Sep 01 Balance b/d Sep 30 CRJ

30 CPJ DJ

CJ Balance c/d

2014
Oct 01 Balance b/d 81 430 00

(12)
[28]

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QUESTION 3 [20 marks; 12 minutes]
TASK
Use the given information and show the entries in the following
journals of Letabu Dealers for March 2014. It is not necessary to
close the journals.

3.1 Cash Payments Journal (CPJ)


3.2 Creditors Journal (CJ)

Transactions for March 2014


02 Pay Hillside Properties R4 000 rental for March. Pay with cheque
001.
Receive a cash register to the value of R12 300 from Home and
Office. Pay by cheque.
04 Receive invoice L56 for R25 000 from Hanlulene Suppliers for
merchandise bought on credit. Renumber the invoice to A52.
14 Buy stationery of R500 and trading stock of R5 000 from
Wholesale 4 SA. Pay by cheque.
15 Buy a computer on credit from Home and Office for R12 500
(Invoice FM56).
18 Buy trading stock from Hanlulene Suppliers for R10 000 and pay
by cheque.
24 Invoice L59 is received from Hanlulene Suppliers together with
trading stock bought on credit, R5 000.
28 Pay Hanlulene Suppliers by paying the account in full.
(20)

Cash Payments Journal of Letabu Dealers for March 2014 CPJ1


Doc. Day Name of Fol. Bank Trading Creditors Stationery Sundry accounts
no. payee stock control
Amount Fol. Details

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Creditors’ Journal of Letabu Dealers for March 2014 CJ1
Doc. Day Creditor Fol. Creditors Trading stock Stationery Sundry accounts
no. control
Amount Fol. Details

QUESTION 4 [12 marks; 7 minutes]


TASK
Show what effect the following transactions have on the accounting
equation.
1. Buying goods on credit from Greytow Ltd for R12 350 less 20%
trade discount.
2. Paying Kruger & Co. R9 865 in settlement of their account.
3. Receiving R3 000 from J McKenzie as partial payment of the
amount she owes on her account. [12]

No. Assets Owner’s Equity Liabilities


Effect Reason Effect Reason Effect Reason

SECTION C
QUESTION 5 [20 marks; 12 minutes]

5.1 Name and describe the eight business functions.  (16)


5.2 Define the following terms:
5.2.1 Publicity  (2)
5.2.2 Public relations  (2)
[20]

 TOTAL: 100 MARKS

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GRADE 9 CONTROLLED TEST 2: MEMO TERM 3
TIME: 1 HOUR TOTAL: 100 MARKS

SECTION A
QUESTION 1
1.1 Congress of South African Trade Unions ✔✔
1.2 December 1985 ✔✔
1.3 General workers: skilled and unskilled workers in a range of
industries ✔✔
Tradesmen: employees with particular skills such as bricklaying ✔✔
Blue-collar workers: skilled and unskilled workers in a particular
industry ✔✔
White-collar workers: professionals such as teachers ✔✔ (4 × 2 = 8)
1.4
• to improve the material conditions of their members and of
the working people as a whole ✔✔
• to organise the unorganised ✔✔
• to ensure that participation of workers takes place in the
struggle for peace and democratic principles ✔✔
• promoting a core principle of non-racialism ✔✔ (any 2 × 2 = 4)
1.5
1.5.1 When trade unions negotiate workers’ rights and working
conditions with employers ✔✔
1.5.2 Employee forums that give employees a say in how a
business is run. ✔✔
(20)

SECTION B
QUESTION 2
2.1
General Ledger of Toys for Us
Balance Sheet accounts
Dr Debtors Control Cr
Date Details Fol. Amount Date Details Fol. Amount
2014 2014
Sep 01 Balance b/d ✔55 600 00 Sep 30 Bank CRJ ✔61 040 00
30 Sales ✔ DJ ✔✔53 080 00 Balance c/d ✔47 640 00
108 680 00 108 680 00
2014
Oct 01 Balance b/d ✔✔47 640 00

(8)
Dr Trading Stock Cr
Date Details Fol. Amount Date Details Fol. Amount
2014 2014
Sep 01 Balance b/d ✔✔8 040 00 Sep 30 Cost of sales ✔ CRJ ✔32 180 00
30 Bank ✔ CPJ ✔76 800 00 Cost of sales ✔ DJ ✔26 540 00
Creditors’ control✔ CJ ✔55 310 00 Balance c/d ✔81 430 00
140 150 00 ✔140 150 00
2014
Oct 01 Balance b/d 81 430 00

(12)

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2.2
Debtors Ledger of Toys for Us
Baby Boom D1
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2014
Sept 01 Account rendered 17 890 00

05 Invoice ✔ DJ ✔4 900 00 22 790 00


14 Receipt CRJ✔ ✔15 590 00 7 200 00
18 Invoice DJ✔ ✔2 750 00 9 950 00
31 Receipt ✔ CRJ ✔9 950 00 0 00

(8)

QUESTION 3
3.1
Cash Payments Journal of Letabu Dealers for March 2014 CPJ1
Doc. Day Name of Fol. Bank Trading stock Creditors Stationery Sundry accounts
no. payee control
Amount Fol. Details

Hillside Rent
001 02 Properties ✔4 000 00 ✔4 000 00 expense✔

Home and Equipment


002 Office ✔12 300 00 ✔12 300 00 ✔
Wholesale
003 14 4 SA ✔5 500 00 ✔5 000 00 ✔500 00

Hanlulene
004 18 Suppliers ✔10 000 00 ✔10 000 00

Hanlulene
005 28 Suppliers ✔30 000 00 30 000✔ 00

—1

(13)

3.2
Creditors’ Journal of Letabu Dealers for March 2014 CJ1
Doc. Day Creditor Fol. Creditors Trading stock Stationery Sundry accounts
no. control
Amount Fol. Details

Hanlulene
A52 04 Suppliers ✔25 000 00 ✔25 000 00

Home and
A53 15 Office ✔12 500 00 ✔12 500 00 Equipment ✔

Hanlulene
A54 24 Suppliers ✔5 000 00 ✔5 000 00

—1

(7)

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QUESTION 4
No. Assets Owner’s Equity Liabilities
Effect Reason Effect Reason Effect Reason
1. ✔+9 880 Trading stock ✔+9 880 Creditors’ debt
increases✔ increases✔
2. ✔—9 865 Cash decreases ✔—9 865 Creditors’ debt
✔ decreases✔
3. ✔+3 000 Cash
increases✔
✔—3 000 Debtors
decreases✔

(12)

SECTION C
QUESTION 5
5.1 General management: oversees and manages all of the other
business functions, including planning and strategising to achieve
business objectives. ✔✔
Purchasing: procures or buys all of the raw materials and finished
goods that a business needs to function. ✔✔
Production: manages all aspects of a business’s production,
including getting the resources or inputs required for the
production process in the right quantities at the right time
and managing all aspects of the production process, including
efficiency and quality. ✔✔
Marketing: makes customers aware of the business and its goods
and develops strategies for getting goods to customers. ✔✔
Public relations: gives businesses positive publicity and exposes
them to as many potential customers as possible in as positive a
way as possible to encourage sales. ✔✔
Human resources: manages the people in a business (staffing) and
looks after the business’s human capital. ✔✔
Administration: keeps administration (record-keeping) of the
business’s operations running smoothly. ✔✔
Finance: manages all aspects of the business’s finances (money). ✔✔
(8 × 2 = 16)
5.2
5.2.1 Actions designed to attract the interest of the public. ✔✔
5.2.2 Public relations involves giving businesses positive publicity
✔ and exposing them to as many potential customers as
possible ✔ in as positive a way as possible to encourage
sales. ✔✔ (4)

 TOTAL: 100 MARKS

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TERM 4

Topic
UnitLooking
Discover
1 back,
your looking
strengths
ahead
16
1 Learner’s Book pages 204—207
xx—xx Duration:
Duration 2 hours

Term and week/s


Curriculum and Assessment Policy Statement
Term 4, Week 1 (CAPS) content
In this topic, learners will:
• revise what they learnt in Term 3
• get a brief glimpse of what they will learn in Term 4
Teaching the topic
• This is an opportunity to consolidate what the learners learnt
in the previous term. If learners are still struggling with some
concepts, give them additional activities or revision activities
to do. Those who understand the work well can help those who
are struggling.
• Encourage learners to draw mind maps (similar to those drawn in
this topic) to revise what they learnt in the previous term.
• Once you are comfortable that learners understand the content so
far, you may continue with the overview of the new term.
• When revising the new term, do not go into too much detail –
you need spend no more than 10–15 minutes on the overview.
• Mention to the learners that they may use the overview mind
map provided, and add their own notes during the term so that
they have a complete mind map of the term’s work by the end
of the term.

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Topic
UnitTransactions:
1 Cash and credit
17 Learner’s Book pages 208—237 Duration: 6 hours

Term and week/s


Curriculum and Assessment Policy Statement
Term 4, Weeks 2–7 (CAPS) content
In this topic, you will learn about FINANCIAL LITERACY. We will
look at:
• recording cash and credit transactions of a sole trader in the
subsidiary journals
• posting to the Debtors Journal (DJ), Creditors Journal (CJ) and
General Ledger
• preparing a Trial Balance
Resources
Learners must each have an exercise book called an ‘Eight money
column’ or ‘Cash money column’ for the CRJ, CPJ and CJ and
preferably a ‘Journal’ book (with two money columns only) or a
‘Treble Cash’ book for the DJ. Also, a ‘Double Ledger’ book for
the General Ledger and a ‘Treble Cash’ book for the Debtors and
Creditors Ledgers are required.

Photocopy the Cash Receipts, Cash Payments, Creditors and Debtors


Journal templates, as well as the Debtors, Creditors and General
Ledger templates found at the end of this guide if necessary.

A calculator for each learner is essential.

Preparation
• Read through the topic and familiarise yourself with the content
that you will need to teach. Think about what learners may
already know about the topics, what skills they already have and
any areas of difficulty that you think they might encounter.
• Learners already know how to record all the different transactions
in the journals. They also know how to post the different journals
to the General Ledger and to the Debtors and Creditors Ledgers.
• However, it may be difficult for them to master all four journals
at the same time. Consider how you are going to present this
information to learners in a way that will enable them to
understand how all the content fits together.

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Teaching the topic
There are 6 lessons in this topic.
Lesson Week Pages Activities
2 2 201—202 17.1—17.2
3 3 202 17.3
4 4 202 17.4
5 5 202 17.5
6 6 202 17.6
7 7 203 17.7—17.10

Lesson 2
• Refer to Figure 17.1 in the Learner’s Book and have a class
discussion on the cash and credit transactions learnt to date.
Use the accounting cycle to outline the four processes involved
on the board. Explain that this topic will give learners many
opportunities to practise what they have learnt.
• Check that all learners understand the basics of recording cash
and credit transactions of a sole trader in the subsidiary journals.
• Do Activity 17.1.
• Discuss the first part of the Heysteck Stores example in the
Learner’s Book page 211, covering the recording of transactions in
the different subsidiary journals. Reinforce the different journals
as follows:
1. Each journal differs from the others by the specific source
document that is used:

CRJ CPJ DJ CJ
Cash register Cheque Duplicate Original
roll counterfoil invoice issued invoice received
Duplicate
receipt
Deposit slip

2. A transaction will use certain key words to give an indication


of the specific journal to be used:

CRJ CPJ DJ CJ
Cash received Cash paid Credit sales Credit
purchases

• Do Activity 17.2 Question 1.


• Help learners do the calculations for cost prices in the Heysteck
Stores example because profit margin is 33​ __13 ​%. Cost price
100   
calculations for the 4th: ​ ____ ​× R3 501 = R2 625,75
1
__
133​ 3 ​
• Give learners a handout for Activity 17.2’s CRJ, CPJ, CJ and DJ
which they can use to do corrections at home and to post to the
different ledgers asked for in Questions 2 and 3.

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• Work through the next part of the Heysteck Stores example,
covering the posting to the Debtors and Creditors Ledgers.
Reinforce the differences between the Debtors and Creditors
Ledgers as follows:

Debtors Ledger: Creditors Ledger:


DJ → Invoice → Dr + CJ → Invoice → Cr +

CRJ → Receipt → Cr — CPJ → Cheque → Dr —

• Work through the next part of the Heysteck Stores example,


covering the posting to the General Ledger and the preparation of
a Trial Balance.
• Use different colours to assist learners in following the transactions
and journal entries through the example as shown in the Learner’s
Book example. Do this when you explain the activities as well.
• The following diagram may help those learners that struggle with
the General Ledger:

Journal Posting
Debit: Bank
CRJ Credit: All the other accounts
except for Cost of Sales
Credit: Bank
CPJ
Debit: All the other accounts
Debit: Debtors Control
Credit: Sales
DJ
Debit: Cost of Sales
Credit: Trading Stock
Credit: Creditors Control
CJ
Debit: All the other accounts

• Do Activity 17.2 Questions 2–4.

Lesson 3
• Mark and check Activity 17.2.
• Do Activity 17.3.

Lesson 4
• Mark and check Activity 17.3.
• Do Activity 17.4.

Lesson 5
• Mark and check Activity 17.4.
• Do Activity 17.5.

Lesson 6
• Mark and check Activity 17.5.
• Do Activity 17.6.

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Lesson 7
• Mark and check Activity 17.6.
• Do Activity 17.7.
• This activity gives learners more practice with how all the
information fits together.
• Do Activity 17.8.
• This activity reinforces the General Ledger.
• Do Activities 17.9 and 17.10.
• These two activities reinforce the Debtors and Creditors Ledgers.

Answers
Activity 17.1
Middle order (91)
This activity aims at assisting learners to make the correct choice of
journal, before they begin with the activities involving the completion
of journals.
No. Transaction Journal Two accounts involved
1. Cashed a cheque for wages CPJ Bank Wages
2. Paid rent CPJ ✔ Bank ✔ Rent expense ✔
3. Purchased goods on credit CJ ✔ Creditors control ✔ Trading stock ✔
4. Cash received for services CRJ ✔ Bank ✔ Current income ✔
rendered
5. Paid an outstanding account CPJ ✔ Bank ✔ Creditors control ✔
6. Repairs paid cash CPJ ✔ Bank ✔ Repairs ✔
7. Owner took cash for his own use CPJ ✔ Bank ✔ Drawings ✔
8. Purchased a vehicle and paid CPJ ✔ Bank ✔ Vehicles ✔
for it
9. Consumable goods purchased CJ ✔ Creditors control ✔ Consumable goods
on credit ✔
10. Paid for stationery bought CPJ ✔ Bank ✔ Stationery ✔
11. Purchased goods and paid CPJ ✔ Bank ✔ Trading stock ✔
by cheque
12. Purchased a building and paid CPJ ✔ Bank ✔ Land and buildings
by cheque ✔
13. Received cash for the rent of a CRJ ✔ Bank ✔ Rent income ✔
building
14. Packing material purchased CJ ✔ Creditors control ✔ Packing material ✔
on credit
15. Cash sales of goods (selling price) CRJ ✔ Bank ✔ Sales ✔
(cost price) Cost of sales ✔ Trading stock ✔
16. Paid the telephone account CPJ ✔ Bank ✔ Telephone ✔
17. Cashed a cheque for the cash CPJ ✔ Bank ✔ Cash float ✔
register
18. Received an invoice for repairs CJ ✔ Creditors control ✔ Repairs ✔
19. Paid the water and electricity CPJ ✔ Bank ✔ Water and
electricity ✔

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No. Transaction Journal Two accounts involved
20. Owner increased his capital CRJ ✔ Bank ✔ Capital ✔
contribution
21. Paid the trading licence CPJ ✔ Bank ✔ Trading licence ✔
22. Purchased equipment on credit CJ ✔ Creditors control ✔ Equipment ✔
23. Paid for packing material bought CPJ ✔ Bank ✔ Packing material ✔
24. Issued an invoice for goods DJ ✔ Debtors control ✔ Sales ✔
(selling price)
(cost price) Cost of sales ✔ Trading stock ✔
25. Purchased a vehicle on credit CJ ✔ Creditors control ✔ Vehicles ✔
26. Purchased stationery on credit CJ ✔ Creditors control ✔ Stationery ✔
27. Paid for a computer bought CPJ ✔ Bank ✔ Equipment ✔
28. Issued a cheque to pay a salary CPJ ✔ Bank ✔ Salaries ✔
29. Received an invoice for an CJ ✔ Creditors control ✔ Advertisement ✔
advertisement taken out in the
local paper
30. Issued a receipt for payment of CRJ ✔ Bank ✔ Debtors control ✔
an account

Activity 17.2

1. Lower and Middle order (75)

Cash Receipts Journal of Viwe Traders for July 2012 CRJ5


Doc. Day Details Fol. Analysis of Bank Sales Cost of Debtors Sundry accounts
no. receipts sales control
Amount Fol. Details
113 02 X Viwe ✔25 140 00 25 140 00 B1 Capital✔
CRR 06 Sales 2 905 00 ✔2 905 00 ✔2 324 00
114 E Roux D1 880 00 ✔3 785 00 ✔880 00
CRR 11 Sales 2 205 00 ✔2 205 00 ✔1 764 00
115 M Smuts D2 3 500 00 ✔5 705 00 ✔3 500 00
CRR 18 Sales 2 380 00 ✔2 380 00 ✔1 904 00
116 W Truter D3 3 659 00 ✔6 039 00 ✔3 659 00
CRR 25 Sales 2 222 50 ✔2 222 50 ✔2 222 50 ✔1 778 00
CRR 31 Sales 1 438 50 ✔1 438 50 ✔1 150 80
Fortuin Rent
117 Shoppe 1 880 00 ✔3 318 50 1 880 00 N3 income✔
✔ 46 210 00 11 151 00 8 920 80 8 039 00 27 020 00

B8 N1 N2/B6 B7
(22)
Note: Mark up = 25%

204 LESSON BY LESSON  TERM 4

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Cash Payments Journal of Viwe Traders for July 2012 CPJ5
Doc. Day Name of Fol. Bank Trading Wages Creditors Sundry accounts
no. payee stock control Amount Fol. Details
Sume
337 03 Traders C2 ✔2 700 00 ✔2 700 00
338 05 Cash ✔1 197 00 ✔850 00 347 00 N8 Telephone✔
Jolise
339 08 Stores C1 ✔7 103 00 ✔7 103 00
340 11 Nienke Ltd ✔2 315 00 ✔2 210 00 105 00 N5 Stationery✔
341 13 Janko Ltd C3 ✔4 416 00 ✔4 416 00
Jolise
342 16 Stores ✔5 815 00 5 815 00 B5 Equipment✔
343 17 Cash ✔1 200 00 ✔850 00 350 00 B9 Cash float✔
City Municipal
344 24 Treasurer ✔1 441 00 864 00 N7 services✔
577 00 B2 Drawings✔
Tegan
345 27 Traders ✔3 913 00 ✔3 312 00 601 00 N5 Stationery✔
Sume
346 31 Traders ✔1 331 00 ✔997 00 334 00 N9 Advertising✔
✔ 31 431 00 6 519 00 1 700 00 14 219 00 8 993 00 (27)
B8 B6 N4 B10

Debtors Journal of Viwe Traders for July 2012 DJ5


Doc. Day Debtor Fol. Sales Cost of sales
no.
451 02 E Roux D1 ✔ 934 50 ✔ 747 60
452 09 M Smuts D2 ✔ 6 524 00 ✔ 5 219 20
453 12 W Truter D3 ✔ 2 709 00 ✔ 2 167 20
454 17 E Roux D1 ✔ 8 324 75 ✔ 6 659 80
455 27 W Truter D3 ✔ 8 267 00 ✔ 6 613 60
✔ 26 759 25 21 407 40 (11)
B7/N1 N2/B6

Creditors Journal of Viwe Traders for July 2012 CJ5


Doc. Day Creditor Fol. Creditors Trading Stationery Sundry accounts
no. control stock
Amount Fol. Details
661 07 Jolise Stores C1 ✔ 4 143 00 ✔ 3 588 00 555 00 N6 Packing material ✔
662 13 Sume Traders C2 ✔ 15 429 00 ✔ 7 311 00 8 118 00 B5 Equipment ✔
663 20 Janko Ltd C3 ✔ 10 220 00 ✔ 9 226 00 ✔ 994 00
664 25 Jolise Stores C1 ✔ 932 00 282 00 N6 Packing material ✔
650 00 N9 Advertising ✔
665 28 Janko Ltd C3 ✔ 993 00 ✔ 993 00
✔ 31 717 00 21 118 00 994 00 9 605 00 (15)
B10 B6 N5

2. Middle order (70)


General Ledger of Viwe Traders
Balance Sheet accounts
Dr Capital B1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jul 01 Balance b/d ✔ 289 860 00
02 Bank CRJ5 ✔ 25 140 00
✔ 315 000 00 (3)

LESSON BY LESSON  TERM 4 205

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Dr Drawings B2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jul 01 Balance b/d ✔ 23 224 00
24 Bank CPJ5 ✔ 577 00
✔ 23 801 00 (3)

Dr Land and Buildings B3 Cr


Date Details Fol. Amount Date Details Fol. Amount
2012
Jul 01 Balance b/d ✔ 185 000 00 (1)

Dr Vehicles B4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jul 01 Balance b/d ✔ 88 600 00 (1)

Dr Equipment B5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jul 01 Balance b/d ✔ 7 924 00
13 Creditors control CJ5 ✔ 8 118 00
16 Bank CPJ5 ✔ 5 815 00
✔ 21 857 00 (4)

Dr Trading Stock B6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012 2012
Jul 01 Balance b/d ✔ 36 109 00 Jul 31 Cost of sales CRJ5 ✔ 8 920 80
31 Bank CPJ5 ✔ 6 519 00 Cost of sales DJ5 ✔ 21 407 40
Creditors control CJ5 ✔ 21 118 00 Balance c/d ✔ 33 417 80
63 746 00 63 746 00
2012
Aug 01 Balance b/d ✔ 33 417 80 (7)

Dr Debtors Control B7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012 2012
Jul 01 Balance b/d ✔ 2 948 00 Jul 31 Bank CRJ5 ✔ 8 039 00
31 Sales DJ5 ✔ 26 759 25 Balance c/d ✔ 21 668 25
29 707 25 29 707 25
2012
Aug 01 Balance b/d ✔ 21 668 25 (5)

Dr Bank B8 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012 2012
Jul 01 Balance b/d ✔ 7 582 00 Jul 31 Total payments CPJ5 ✔ 31 431 00
31 Total receipts CRJ5 ✔ 46 210 00 Balance c/d ✔ 22 361 00
53 792 00 53 792 00
2012
Aug 01 Balance b/d ✔ 22 361 00 (5)

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Dr Cash Float B9 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jul 01 Balance b/d ✔ 100 00
17 Bank CPJ5 ✔ 350 00
✔ 450 00 (3)

Dr Creditors Control B10 Cr


Date Details Fol. Amount Date Details Fol. Amount
2012 2012
Jul 31 Bank CPJ5 ✔ 14 219 00 Jul 01 Balance b/d ✔ 11 131 00
Balance c/d ✔ 28 629 00 31 Sundry purchases CJ5 ✔ 31 717 00
42 848 00 42 848 00
2012
Aug 01 Balance b/d ✔ 28 629 00 (5)

Nominal accounts
Dr Sales N1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jul 01 Balance b/d ✔ 132 300 00
31 Bank CRJ5 ✔ 11 151 00
Debtors control DJ5 ✔ 26 759 25
✔ 170 210 25 (4)

Dr Cost of Sales n2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jul 01 Balance b/d ✔ 75 600 00
31 Trading stock CRJ5 ✔ 8 920 80
Trading stock DJ5 ✔ 21 407 40
✔ 105 928 20 (4)

Dr Rent Income n3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jul 01 Balance b/d ✔ 8 800 00
31 Bank CRJ5 ✔ 1 880 00
✔ 10 680 00 (3)

Dr Wages n4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jul 01 Balance b/d ✔ 9 850 00
31 Bank CPJ5 ✔ 1 700 00
✔ 11 550 00 (3)

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Dr Stationery n5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jul 01 Balance b/d ✔ 887 00
11 Bank CPJ5 ✔ 105 00
27 Bank CPJ5 ✔ 601 00
31 Creditors control CJ5 ✔ 994 00
✔ 2 587 00 (5)

Dr Packing Material n6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jul 01 Balance b/d ✔ 990 00
07 Creditors control CJ5 ✔ 555 00
25 Creditors control CJ5 ✔ 282 00
✔ 1 827 00 (4)

Dr Municipal Services n7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jul 01 Balance b/d ✔ 1 334 00
24 Bank CPJ5 ✔ 864 00
✔ 2 198 00 (3)

Dr Telephone n8 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jul 01 Balance b/d ✔ 1 146 00
05 Bank CPJ5 ✔ 347 00
✔ 1 493 00 (3)

Dr Advertising n9 Cr
Date Details Fol. Amount Date Details Fol. Amount
2012
Jul 01 Balance b/d ✔ 797 00
25 Creditors control CJ5 ✔ 650 00
31 Bank CPJ5 ✔ 334 00
✔ 1 781 00 (4)

3. Middle order (36)


Debtors Ledger of Viwe Traders
E Roux D1
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2012
Jul 01 Account rendered ✔ 880 00

02 Invoice no. 451 DJ5 ✔ 934 50 1 814 50


06 Receipt no. 114 CRJ5 ✔ 880 00 ✔ 934 50
17 Invoice no. 454 DJ5 ✔ 8 324 75 9 259 25 (5)

208 LESSON BY LESSON  TERM 4

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M Smuts D2
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2012
Jul 01 Account rendered ✔ 1 118 00

09 Invoice no. 452 DJ5 ✔ 6 524 00 7 642 00


11 Receipt no. 115 CRJ5 ✔ 3 500 00 ✔ 4 142 00 (4)

W Truter D3
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2012
Jul 01 Account rendered ✔ 950 00

12 Invoice no. 453 DJ5 ✔ 2 709 00 3 659 00


18 Receipt no. 116 CRJ5 ✔ 3 659 00 0 00
27 Invoice no. 455 DJ5 ✔ 8 267 00 ✔ 8 267 00 (5)

List (schedule) of balances of debtors on 31 July 2012


E Roux D1 R9 259,25 ✔
M Smuts D2 R4 142,00 ✔
W Truter D3 R8 267,00 ✔
Debtors control B7 R21 668,25 ✔ (4)

Creditors Ledger of Viwe Traders


Jolise Stores C1
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2012
Jul 01 Account rendered ✔ 2 960 00
07 Invoice no. 661 CJ5 ✔ 4 143 00 7 103 00
08 Cheque no. 339 CPJ5 ✔ 7 103 00 0 00
25 Invoice no. 664 CJ5 ✔ 932 00 ✔ 932 00 (5)

Sume Traders C2
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2012
Jul 01 Account rendered ✔ 3 755 00
03 Cheque no. 337 CPJ5 ✔ 2 700 00 1 055 00
13 Invoice no. 662 CJ5 ✔ 15 429 00 ✔ 16 484 00 (4)

Janko Ltd C3
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2012
Jul 01 Account rendered ✔ 4 416 00
13 Cheque no. 341 CPJ5 ✔ 4 416 00 0 00
20 Invoice no. 663 CJ5 ✔ 10 220 00 10 220 00
28 Invoice no. 665 CJ5 ✔ 993 00 ✔ 11 213 00 (5)

List (schedule) of balances of creditors on 31 July 2012


Jolise Traders C1 R932,00 ✔
Sume Traders C2 R16 484,00 ✔
Janko Ltd C3 R11 213,00 ✔
Creditors control B10 R28 629,00 ✔ (4)

LESSON BY LESSON  TERM 4 209

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4. Lower order (20)
Trial Balance of Viwe Traders on 31 July 2012 ✔
Balance Sheet accounts Fol. Debit Credit
Capital ✔ B1 315 000 00
Drawings ✔ B2 23 801 00
Land and buildings ✔ B3 185 000 00
Vehicles ✔ B4 88 600 00
Equipment ✔ B5 21 857 00
Trading stock ✔ B6 33 417 80
Debtors control ✔ B7 21 668 25
Bank ✔ B8 22 361 00
Cash float ✔ B9 450 00
Creditors control ✔ B10 28 629 00
Nominal accounts
Sales ✔ N1 170 210 25
Cost of sales ✔ N2 105 928 20
Rent income ✔ N3 10 680 00
Wages ✔ N4 11 550 00
Stationery ✔ N5 2 587 00
Packing material ✔ N6 1 827 00
Municipal services ✔ N7 2 198 00
Telephone ✔ N8 1 493 00
Advertising ✔ N9 1 781 00
524 519 25 524 519 25

Activity 17.3

1. Middle and Higher order (66)

Cash Receipts Journal of Valley Traders for August 2013 CRJ7


Doc. Day Details Fol. Analysis of Bank Sales Cost of Debtors Sundry accounts
no. receipts sales control
Amount Fol. Details
CRR 02 Sales 735 00 ✔ 735 00 ✔ 490 00
H van der
80 Vyver D1 9 662 00 ✔ 10 397 00 ✔ 9 662 00
81 05 A Robain D3 3 240 00 ✔ 3 240 00 ✔ 3 240 00
CRR 11 Sales 1 020 00 ✔ 1 020 00 ✔ 680 00
82 D Brandt D2 9 830 00 ✔ 10 850 00 ✔ 9 830 00
✔6
CRR 23 Sales 10 275 00 ✔ 10 275 00 850 00
Rent
83 C Fourie 2 300 00 ✔ 12 575 00 2 300 00 N3 income ✔
CRR 31 Sales 1 533 00 1 533 00 ✔ 1 533 00 ✔ 1 022 00
✔ 38 595 00 13 563 00 9 042 00 22 732 00 2 300 00

B7 N1 N2/B5 B6
(17)

210 LESSON BY LESSON  TERM 4

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Cash Payments Journal of Valley Traders for August 2013 CPJ7
Doc. Day Name of Fol. Bank Trading stock Creditors Wages Sundry accounts
no. payee control
Amount Fol. Details
Firmani
109 04 Stores C1 ✔ 19 688 00 ✔ 19 688 00
110 09 Snell Stores ✔ 21 265 00 ✔ 20 400 00 865 00 N5 Stationery ✔
111 Cash ✔ 5 350 00 ✔ 4 700 00 650 00 B2 Drawings ✔
Hauptfleisch
112 10 Ltd C2 ✔ 19 500 00 ✔ 19 500 00
Xangelé
113 19 Traders C3 ✔ 3 556 00 ✔ 3 556 00
Burger Consumable
114 Shoppe ✔ 2 617 00 ✔ 2 148 00 469 00 N6 goods ✔
115 21 Cash ✔ 4 700 00 ✔ 4 700 00
Telkom SA
116 Ltd ✔ 466 00 466 00 N7 Telephone ✔
City Water and
117 27 Treasurer ✔ 858 00 858 00 N8 electricity ✔
Hauptfleisch
118 29 Ltd ✔ 2 950 00 ✔ 1 800 00 1 150 00 B4 Equipment ✔
✔ 80 950 00 24 348 00 42 744 00 9 400 00 4 458 00 (25)
B7 B5 B9 N4

Debtors Journal of Valley Traders for August 2013 DJ7


Doc. Day Debtor Fol. Sales Cost of sales
no.
221 04 D Brandt D2 ✔ 1 836 00 ✔ 1 224 00
222 15 H van der Vyver D1 ✔ 1 662 00 ✔ 1 108 00
223 21 A Robain D3 ✔ 2 463 00 ✔ 1 642 00
224 29 D Brandt D2 ✔ 2 349 00 ✔ 1 566 00
✔ ✔ 8 310 00 ✔ 5 540 00 (11)
B6/N1 N2/B5

Creditors Journal of Valley Traders for August 2013 CJ7


Doc. Day Creditor Fol. Creditors Trading Stationery Consumable Sundry accounts
no. control stock goods
Amount Fol. Details
Firmani
182 05 Stores C1 ✔ 3 204 00 ✔ 2 717 00 ✔ 487 00
Xangelé Equipment
183 12 Traders C3 ✔ 5 131 00 ✔ 3 067 00 ✔ 614 00 1 450 00 B4 ✔
Firmani
184 27 Stores C1 ✔ 733 00 733 00 N9 Repairs ✔
Hauptfleisch
185 30 Ltd C2 ✔ 1 046 00 ✔ 456 00 ✔ 590 00
✔ 10 114 00 5 784 00 943 00 1 204 00 2 183 00 (13)
B9 B5 N5 N6

2. Middle order (63)


General Ledger of Valley Traders
Balance Sheet accounts
Dr Capital b1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
Aug 01 Balance b/d ✔147 700 00 (1)

LESSON BY LESSON  TERM 4 211

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Dr Drawings b2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
Aug 01 Balance b/d ✔ 22 180 00
09 Bank CPJ7 ✔ 650 00
✔ 22 830 00 (3)

Dr Land and Buildings b3 Cr


Date Details Fol. Amount Date Details Fol. Amount
2013
Aug 01 Balance b/d ✔ 95 000 00 (1)

Dr Equipment b4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
Aug 01 Balance b/d ✔ 33 585 00
12 Creditors control CJ7 ✔ 1 450 00
29 Bank CPJ7 ✔ 1 150 00
✔ 36 185 00 (4)

Dr Trading Stock b5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013 2013
Aug 01 Balance b/d ✔ 31 921 00 Aug 31 Cost of sales CRJ7 ✔ 9 042 00
31 Bank CPJ7 ✔ 24 348 00 Cost of sales DJ7 ✔ 5 540 00
Creditors control CJ7 ✔ 5 784 00 Balance c/d ✔ 47 471 00
62 053 00 62 053 00
2013
Sep 01 Balance b/d ✔ 47 471 00 (7)

Dr Debtors Control b6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013 2013
Aug 01 Balance b/d ✔ 28 986 00 Aug 31 Bank CRJ7 ✔ 22 732 00
31 Sales DJ7 ✔ 8 310 00 Balance c/d ✔ 14 564 00
37 296 00 37 296 00
2013
Sep 01 Balance b/d ✔ 14 564 00 (5)

Dr Bank b7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013 2013
Aug 01 Balance b/d ✔ 18 035 00 Aug 31 Total payments CPJ7 ✔ 80 950 00
31 Total receipts CRJ7 ✔ 38 595 00
Balance c/d ✔ 24 320 00
80 950 00 80 950 00
2013
Sep 01 Balance b/d ✔ 24 320 00 (5)

Dr Cash Float b8 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
Aug 01 Balance b/d ✔ 350 00 (1)

212 LESSON BY LESSON  TERM 4

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Dr Creditors Control b9 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013 2013
Aug 31 Bank CPJ7 ✔ 42 744 00 Aug 01 Balance b/d ✔ 88 597 00
Balance c/d ✔ 55 967 00 31 Sundry purchases CJ7 ✔ 10 114 00
98 711 00 98 711 00
2013
Sep 01 Balance b/d ✔ 55 967 00 (5)

Nominal accounts
Dr Sales n1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
Aug 01 Balance b/d ✔ 135 615 00
31 Bank CRJ7 ✔ 13 563 00
Debtors control DJ7 ✔ 8 310 00
✔ 157 488 00 (4)

Dr Cost of Sales n2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
Aug 01 Balance c/d ✔ 95 210 00
31 Trading stock CRJ7 ✔ 9 042 00
Trading stock DJ7 ✔ 5 540 00
✔ 109 792 00 (4)

Dr Rent Income n3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
Aug 01 Balance b/d ✔ 28 875 00
23 Bank CRJ7 ✔ 2 300 00
✔ 31 175 00 (3)

Dr Wages n4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
Aug 01 Balance b/d ✔ 28 000 00
31 Bank CPJ7 ✔ 9 400 00
✔ 37 400 00 (3)

Dr Stationery n5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
Aug 01 Balance b/d ✔ 6 823 00
09 Bank CPJ7 ✔ 865 00
31 Creditors control CJ7 ✔ 943 00
✔ 8 631 00 (4)

LESSON BY LESSON  TERM 4 213

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Dr Consumable Goods n6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
Aug 01 Balance b/d ✔ 7 038 00
19 Bank CPJ7 ✔ 469 00
31 Creditors control CJ7 ✔ 1 204 00
✔ 8 711 00 (4)

Dr Telephone n7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
Aug 01 Balance b/d ✔ 8 052 00
21 Bank CPJ7 ✔ 466 00
✔ 8 518 00 (3)

Dr Water and Electricity n8 Cr


Date Details Fol. Amount Date Details Fol. Amount
2013
Aug 01 Balance b/d ✔ 9 218 00
27 Bank CPJ7 ✔ 858 00
✔ 10 076 00 (3)

Dr Repairs n9 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
Aug 01 Balance b/d ✔ 16 389 00
27 Creditors control CJ7 ✔ 733 00
✔ 17 122 00 (3)

3. Middle order (34)


Debtors Ledger of Valley Traders
H van der Vyver D1
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2013
Aug 01 Account rendered ✔ 9 662 00
02 Receipt no. 80 CRJ7 ✔ 9 662 00 0 00
15 Invoice no. 222 DJ7 ✔ 1 662 00 ✔ 1 662 00 (4)

D Brandt D2
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2013
Aug 01 Account rendered ✔ 12 883 00
04 Invoice no. 221 DJ7 ✔ 1 836 00 14 719 00
11 Receipt no. 82 CRJ7 ✔ 9 830 00 4 889 00
29 Invoice no. 224 DJ7 ✔ 2 349 00 ✔ 7 238 00 (5)

A Robain D3
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2013
Aug 01 Account rendered ✔ 6 441 00
05 Receipt no. 81 CRJ7 ✔ 3 240 00 3 201 00
21 Invoice no. 223 DJ7 ✔ 2 463 00 ✔ 5 664 00 (4)

214 LESSON BY LESSON  TERM 4

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List (schedule) of balances of debtors on 31 August 2013
H van der Vyver D1 R1 662,00 ✔
D Brandt D2 R7 238,00 ✔
A Robain D3 R5 664,00 ✔
Debtors control B6 R14 564,00 ✔ (4)

Creditors Ledger of Valley Traders


Firmani Stores C1
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2013
Aug 01 Account rendered ✔ 19 688 00
04 Cheque no. 109 CPJ7 ✔ 19 688 00 0 00
05 Invoice no. 182 CJ7 ✔ 3 204 00 3 204 00
27 Invoice no. 184 CJ7 ✔ 733 00 ✔ 3 937 00 (5)

Hauptfleisch Ltd C2
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2013
Aug 01 Account rendered ✔ 29 532 00
10 Cheque no. 112 CPJ7 ✔ 19 500 00 10 032 00
30 Invoice no. 185 CJ7 ✔ 1 046 00 ✔ 11 078 00 (4)

Xangelé Traders C3
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2013
Aug 01 Account rendered ✔ 39 377 00
12 Invoice no. 183 CJ7 ✔ 5 131 00 44 508 00
19 Cheque no. 113 CPJ7 ✔ 3 556 00 ✔ 40 952 00 (4)

List (schedule) of balances of creditors on 31 August 2013


Firmani Stores C1 R3 937,00 ✔
Hauptfleisch Ltd C2 R11 078,00 ✔
Xangelé Traders C3 R40 952,00 ✔
Creditors control B9 R55 967,00 ✔ (4)

4. Lower order (18)


Trial Balance of Valley Traders on 31 August 2013
Balance Sheet accounts Fol. Debit Credit
Capital ✔ B1 147 700
Drawings ✔ B2 22 830
Land and buildings ✔ B3 95 000
Equipment ✔ B4 36 185
Trading stock ✔ B5 47 471
Debtors control ✔ B6 14 564
Bank ✔ B7 24 320
Cash float ✔ B8 350
Creditors control ✔ B9 55 967

LESSON BY LESSON  TERM 4 215

EMS 9 TG (ENG).indb 215 6/5/13 6:23:07 PM


Nominal accounts
Sales ✔ N1 157 488
Cost of sales ✔ N2 109 792
Rent income ✔ N3 31 175
Wages ✔ N4 37 400
Stationery ✔ N5 8 631
Consumable goods ✔ N6 8 711
Telephone ✔ N7 8 518
Water and electricity ✔ N8 10 076
Repairs ✔ N9 17 122
416 650 416 650

Activity 17.4
Learners will need to do these calculations:
20 May: R1 889 + R9 006,50 = R10 895,50
29 May: R451 + R4 740 = R5 191
Guide the learners when opening the ledger accounts, especially
with the placement order of the accounts in the Balance Sheet and
Nominal account sections.

1. Middle and Higher order (47)


Cash Receipts Journal of Electrics for All for May 2013 CRJ5
Doc. Day Details Fol. Analysis of Bank Sales Cost of sales Debtors Sundry accounts
no. receipts control
Amount Fol. Details

50 01 M Busiswe ✔ 24 000 00 24 000 00 B1 Capital ✔

CRR 12 Sales 774 00 ✔ 774 00 ✔ 516 00

51 F Step D2 500 00 ✔ 1 274 00 ✔ 500 00

52 29 L Laager D1 5 671 00 ✔ 5 671 00 ✔ 480 00 ✔ 320 00 ✔ 5 191 00

CRR 31 Sales 3 570 00 ✔ 3 570 00 ✔ 2 380 00


Rent
53 R Jacobs 3 500 00 ✔ 7 070 00 3 500 00 N8 income ✔
✔ 38 015 00 4 824 00 3 216 00 5 691 00 27 500 00

B8 N1 N2/B6 B7 (15)

Cash Payments Journal of Electrics for All for May 2013 CPJ5
Doc. Day Name of payee Fol. Bank Trading Packing Creditors Sundry accounts
no. stock material control
Amount Fol. Details

107 04 Pata Motors ✔ 77 023 00 76 500 00 B4 Vehicles✔

523 00 N4 Fuel✔

108 09 Piek and Pay Stores ✔ 1 275 00 554 00 B2 Drawings✔


Water and
electricity
721 00 N7 ✔

109 12 H Bosman C2 ✔ 800 00 ✔ 800 00

110 13 H Bosman ✔ 585 00 ✔ 585 00

111 20 W Hugo C1 ✔ 10 895 50 ✔ 10 895 50

112 27 I Louw ✔ 4 880 00 4 880 00 N6 Salaries✔

113 30 H Bosman ✔ 2 667 00 ✔ 2 667 00


✔ 98 125 50 2 667 00 585 00 11 695 50 83 178 00

B8 B6 N3 B9 (17)
216 LESSON BY LESSON  TERM 4

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Creditors Journal of Electrics for All for May 2013 CJ5
Doc. Day Creditor Fol. Creditors Trading Packing Sundry accounts
no. control stock material
Amount Fol. Details
332 14 H Bosman C2 ✔ 805 00 ✔ 805 00

333 16 W Hugo C1 ✔ 9 006 50 ✔ 2 150 50 ✔ 256 00 6 600 00 B5 Equipment ✔


334 23 Lebo Suppliers C3 ✔ 6 410 00 ✔ 4 610 00 ✔ 1 800 00

✔ 16 221 50 7 565 50 2 056 00 6 600 00 (10)


B9 B6 N3

Debtors Journal of Electrics for All for May 2013 DJ5


Doc. Day Balance Sheet accounts Fol. Sales Cost of sales
no.
60 18 L Laager D1 ✔ 4 740 00 ✔ 3 792 00
61 24 F Step D2 ✔ 849 00 ✔ 679 20
✔ 5 589 00 3 471 20 (5)
B7/N1 N2/B6

2. Middle order (60)


General Ledger of Electrics for All
Balance Sheet accounts
Dr Capital b1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
May 01 Balance b/d ✔ 160 000 00
Bank CRJ5 ✔ 24 000 00
✔ 184 000 00 (3)

Dr Drawings b2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
May 01 Balance b/d ✔ 6 180 00
09 Bank CPJ5 ✔ 554 00
✔ 6 734 00 (3)

Dr Land and Buildings b3 Cr


Date Details Fol. Amount Date Details Fol. Amount
2013
May 01 Balance b/d ✔125 000 00 (1)

Dr Vehicles b4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
May 01 Balance b/d ✔ 71 467 00
04 Bank CPJ5 ✔ 76 500 00
✔ 147 967 00 (3)

Dr Equipment b5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
May 01 Balance b/d ✔ 7 068 00
16 Creditors control CJ5 ✔ 6 600 00
✔ 13 668 00 (3)

LESSON BY LESSON  TERM 4 217

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Dr Trading Stock b6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013 2013
May 01 Balance b/d ✔ 7 837 00 May 31 Cost of sales DJ5 ✔ 4 358 00
31 Bank CPJ5 ✔ 2 667 00 Cost of sales CRJ5 ✔ 3 216 00
Creditors control CJ5 ✔ 7 565 50 Balance c/d ✔ 10 495 50
18 069 50 18 069 50
2013
Jun 01 Balance b/d ✔ 10 495 50 (7)

Dr Debtors Control b7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013 2013
May 01 Balance b/d ✔ 1 140 00 May 31 Bank CRJ5 ✔ 5 691 00
31 Sales DJ5 ✔ 5 589 00 Balance c/d ✔ 1 038 00
6 729 00 6 729 00
2013
Jun 01 Balance b/d ✔ 1 038 00 (5)

Dr Bank b8 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013 2013
May 31 Total receipts CRJ5 ✔ 38 015 00 May 01 Balance b/d ✔ 8 825 00
Balance c/d ✔ 68 935 50 31 Total payments CPJ5 ✔ 98 125 50
106 950 50 106 950 50
2013
Jun 01 Balance b/d ✔ 68 935 50 (5)

Dr Creditors Control b9 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013 2013
May 31 Bank CPJ5 ✔ 11 695 50 May 01 Balance b/d ✔ 27 082 00
Balance c/d ✔ 31 608 00 31 Sundry purchases CJ5 ✔ 16 221 50
43 303 50 43 303 50
2013
Jun 01 Balance b/d ✔ 31 608 00 (5)

Nominal accounts
Dr Sales n1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
May 01 Balance b/d ✔ 81 600 00
31 Bank CRJ5 ✔ 4 824 00
Debtors control DJ5 ✔ 5 589 00
✔ 92 013 00 (4)

Dr Cost of Sales n2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
May 01 Balance b/d ✔ 54 400 00
31 Trading stock DJ5 ✔ 4 358 00
Trading stock CRJ5 ✔ 3 216 00
✔ 61 974 00 (4)

218 LESSON BY LESSON  TERM 4

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Dr Packing Material n3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
May 01 Balance b/d ✔ 630 00
31 Bank CPJ5 ✔ 585 00
31 Creditors control CJ5 ✔ 2 056 00
✔ 3 271 00 (4)

Dr Fuel n4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
May 01 Balance b/d ✔ 580 00
04 Bank CPJ5 ✔ 523 00
✔ 1 103 00 (3)

Dr Telephone n5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
May 01 Balance b/d ✔ 479 00 (1)

Dr Salaries n6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
May 01 Balance b/d ✔ 9 372 00
27 Bank CPJ5 ✔ 4 880 00
✔ 14 252 00 (3)

Dr Water and Electricity n7 Cr


Date Details Fol. Amount Date Details Fol. Amount
2013
May 01 Balance b/d ✔ 854 00
09 Bank CPJ5 ✔ 721 00
✔ 1 575 00 (3)

Dr Rent Income n8 Cr
Date Details Fol. Amount Date Details Fol. Amount
2013
May 01 Balance b/d ✔ 7 500 00
31 Bank CRJ5 ✔ 3 500 00
✔ 11 000 00 (3)

3. Middle order (26)


Debtors Ledger of Electrics for All
L Laager D1
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2013
May 01 Account rendered ✔ 451 00
18 Invoice no. 60 DJ5 ✔ 4 740 00 5 191 00

29 Receipt no. 52 CRJ5 ✔ 5 191 00 ✔ 0 00 (4)

LESSON BY LESSON  TERM 4 219

EMS 9 TG (ENG).indb 219 6/5/13 6:23:08 PM


F Step D2
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2013
May 01 Account rendered ✔ 689 00

12 Receipt no. 51 CRJ5 ✔ 500 00 189 00

24 Invoice no. 61 DJ5 ✔ 849 00 ✔ 1 038 00 (4)

List (schedule) of balances of debtors on 31 May 2013


L Laager D1 R0,00 ✔
F Step D2 R1 038,00 ✔
Debtors control B7 R1 038,00 ✔ (3)

Creditors Ledger of Electrics for All


W Hugo C1
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2013
May 01 Account rendered ✔ 1 889 00

16 Invoice no. 333 CJ5 ✔ 9 006 50 10 895 50

20 Cheque no. 111 CPJ5 ✔ 10 895 50 ✔ 0 00 (4)

H Bosman C2
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2013
May 01 Account rendered ✔ 4 300 00

12 Cheque no. 109 CPJ5 ✔ 800 00 3 500 00

14 Invoice no. 332 CJ5 ✔ 805 00 ✔ 4 305 00 (4)

Lebo Suppliers C3
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2013
May 01 Account rendered ✔ 20 893 00

23 Invoice no. 334 CJ5 ✔ 6 410 00 ✔ 27 303 00 (3)

List (schedule) of balances of creditors on 31 May 2013


W Hugo C1 R0,00 ✔
H Bosman C2 R4 305,00 ✔
Lebo Suppliers C3 R27 303,00 ✔
Creditors control B9 R31 608,00 ✔ (4)

4. Lower order (18)


Trial Balance of Electrics for All on 31 May 2013 ✔
Balance Sheet accounts Fol. Debit Credit
Capital ✔ B1 184 000 00
Drawings ✔ B2 6 734 00
Land and buildings ✔ B3 125 000 00
Vehicles ✔ B4 147 967 00
Equipment ✔ B5 13 668 00
Trading stock ✔ B6 10 495 50
Debtors control ✔ B7 1 038 00
Bank ✔ B8 68 935 50
Creditors control ✔ B9 31 608 00

220 LESSON BY LESSON  TERM 4

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Nominal accounts
Sales ✔ N1 92 013 00
Cost of sales ✔ N2 61 974 00
Packing material ✔ N3 3 271 00
Fuel ✔ N4 1 103 00
Telephone ✔ N5 479 00
Salaries ✔ N6 14 252 00
Water and electricity ✔ N7 1 575 00
Rent income ✔ N8 11 000 00
387 556 50 387 556 50

Activity 17.5
1. Middle and Higher order (52)
NOTE: The high mark-up percentage of 190% that learners have
to calculate is considered unethical business practice. It is only
used here for ease of calculation.
Cash Receipts Journal of Slamet Stores for April 2014 CRJ4
Doc. Day Details Fol. Analysis of Bank Sales Cost of Debtors Sundry accounts
no. receipts sales control Amount Fol. Details
87 04 D Slamet 29 162 00 ✔ 29 162 00 29 162 00 B1 Capital ✔
88 13 T Baxter D1 1 060 00 ✔ 1 060 00
CRR Sales 2 175 00 ✔ 3 235 00 ✔ 2 175 00 ✔ 750 00
CRR 16 Sales 2 958 00 ✔ 2 958 00 ✔ 1 020 00
89 L Zoar D3 350 00 ✔ 3 308 00 ✔ 350 00
Rent
90 30 R Philander 1 246 00 1 246 00 N3 income ✔
91 J Domingo D2 13 329 30 ✔ 14 575 30 ✔ 13 329 30
✔ 50 280 30 5 133 00 1 770 00 14 739 30 30 408 00 (14)
B8 N1 N2/B6 B7

Cash Payments Journal of Slamet Stores for April 2014 CPJ4


Doc. Day Name of Fol. Bank Trading Creditors Wages Sundry accounts
no. payee stock control Amount Fol. Details
107 04 Boyd Traders C3 ✔ 107 00 ✔ 107 00
108 05 D Slamet ✔ 345 00 345 00 B2 Drawings ✔
109 12 Cash ✔ 1 200 00 ✔ 1 200 00
Mountifield
110 14 Ltd C1 ✔ 7 346 00 ✔ 7 346 00
111 18 Boyd Traders ✔ 4 002 00 ✔ 3 486 00 516 00 N5 Stationery ✔
Cekiso
112 23 Suppliers C2 ✔ 2 423 00 ✔ 2 423 00
113 26 Cash ✔ 1 200 00 ✔ 1 200 00
Telkom SA Telephone
114 28 Ltd ✔ 341 00 341 00 N7 ✔
Water and
115 29 Municipality ✔ 612 00 612 00 N8 electricity ✔
✔ 17 576 00 3 486 00 9 876 00 2 400 00 1 814 00 (20)
B8 B6 B9 N4

Debtors Journal of Slamet Stores for April 2014 DJ4


Doc. Day Debtor Fol. Sales Cost of sales
no.
321 07 L Zoar D3 ✔ 1 461 60 ✔ 504 00
322 11 T Baxter D1 ✔ 1 740 00 ✔ 600 00
323 20 J Domingo D2 ✔ 9 706 30 ✔ 3 347 00
✔ 12 907 90 4 451 00 (7)
B7/N1 N2/B6

LESSON BY LESSON  TERM 4 221

EMS 9 TG (ENG).indb 221 6/5/13 6:23:09 PM


Creditors Journal of Slamet Stores for April 2014 CJ4
Doc. Day Creditor Fol. Creditors Trading Stationery Sundry accounts
no. control stock
Amount Fol. Details
116 02 Mountifield Ltd C1 ✔ 3 623 00 ✔ 3 623 00

117 19 Cekiso Suppliers C2 ✔ 3 192 00 2 899 00 B5 Equipment ✔


293 00 N6 Advertising ✔
118 22 Mountifield Ltd C1 ✔ 356 00 ✔ 356 00
119 27 Boyd Traders C3 ✔ 3 694 85 ✔ 3 183 85 ✔ 511 00

✔ 10 865 85 7 162 85 511 00 3 192 00 (11)


B9 B6 N5

2. Middle order (60)


General Ledger of Slamet Stores
Balance Sheet accounts
Dr Capital B1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2014
Apr 01 Balance b/d ✔ 95 838 00
04 Bank CRJ4 ✔ 29 162 00
✔ 125 000 00 (3)

Dr Drawings b2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2014
Apr 01 Balance b/d ✔ 5 935 00
05 Bank CPJ4 ✔ 345 00
✔ 6 280 00 (3)

Dr Land and Buildings b3 Cr


Date Details Fol. Amount Date Details Fol. Amount
2014
Apr 01 Balance b/d ✔ 135 000 00 (1)

Dr Vehicles b4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2014
Apr 01 Balance b/d ✔ 50 900 00 (1)

Dr Equipment b5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2014
Apr 01 Balance b/d ✔ 12 524 00
19 Creditors control CJ4 ✔ 2 899 00
✔ 15 423 00 (3)

Dr Trading Stock b6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2014 2014
Apr 01 Balance b/d ✔ 10 745 00 Apr 30 Cost of sales CRJ4 ✔ 1 770 00
30 Bank CPJ4 ✔ 3 486 00 Cost of sales DJ4 ✔ 4 451 00
Creditors control CJ4 ✔ 7 162 85 Balance c/d ✔ 15 172 85
21 393 85 21 393 85
2014
May 01 Balance b/d ✔ 15 172 85 (7)

222 LESSON BY LESSON  TERM 4

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Dr Debtors Control b7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2014 2014
Apr 01 Balance b/d ✔ 5 586 00 Apr 30 Bank CRJ4 ✔ 14 739 30
30 Sales DJ4 ✔ 12 907 90 Balance c/d ✔ 3 754 60
18 493 90 18 493 90
2014
May 01 Balance b/d ✔ 3 754 60 (5)

Dr Bank b8 Cr
Date Details Fol. Amount Date Details Fol. Amount
2014 2014
Apr 01 Balance b/d ✔ 22 836 00 Apr 30 Total payments CPJ4 ✔ 17 576 00
30 Total receipts CRJ4 ✔ 50 280 30 Balance c/d ✔ 55 540 30
73 116 30 73 116 30
2014
May 01 Balance b/d ✔ 55 540 30 (5)

Dr Creditors Control b9 Cr
Date Details Fol. Amount Date Details Fol. Amount
2014 2014
Apr 30 Bank CPJ4 ✔ 9 876 00 Apr 01 Balance b/d ✔ 6 253 00
Balance c/d ✔ 7 242 85 30 Sundry purchases CJ4 ✔ 10 865 85
17 118 85 17 118 85
2014
May 01 Balance b/d ✔ 7 242 85 (5)

Nominal accounts
Dr Sales n1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2014
Apr 01 Balance b/d ✔ 221 125 00
30 Bank CRJ4 ✔ 5 133 00
Debtors control DJ4 ✔ 12 907 90
✔ 239 165 90 (4)

Dr Cost of Sales n2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2014
Apr 01 Balance b/d ✔ 76 250 00
30 Trading stock CRJ4 ✔ 1 770 00
Trading stock DJ4 ✔ 4 451 00
✔ 82 471 00 (4)

Dr Rent Income n3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2014
Apr 01 Balance b/d ✔ 2 642 00
30 Bank CRJ4 ✔ 1 246 00
✔ 3 888 00 (3)

LESSON BY LESSON  TERM 4 223

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Dr Wages n4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2014
Apr 01 Balance b/d ✔ 2 915 00
30 Bank CPJ4 ✔ 2 400 00
✔ 5 315 00 (3)

Dr Stationery n5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2014
Apr 01 Balance b/d ✔ 942 00
18 Bank CPJ4 ✔ 516 00
30 Creditors control CJ4 ✔ 511 00
✔ 1 969 00 (4)

Dr Advertising n6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2014
Apr 01 Balance b/d ✔ 323 00
19 Creditors control CJ4 ✔ 293 00
✔ 616 00 (3)

Dr Telephone n7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2014
Apr 01 Balance b/d ✔ 1 068 00
28 Bank CPJ4 ✔ 341 00
✔ 1 409 00 (3)

Dr Water and Electricity n8 Cr


Date Details Fol. Amount Date Details Fol. Amount
2014
Apr 01 Balance b/d ✔ 834 00
29 Bank CPJ4 ✔ 612 00
✔ 1 446 00 (3)

3. Middle order (33)


Debtors Ledger of Slamet Stores
T Baxter D1
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2014
Apr 01 Account rendered ✔ 1 263 00
11 Invoice no. 322 DJ4 ✔ 1 740 00 3 003 00

13 Receipt no. 88 CRJ4 ✔ 1 060 00 ✔ 1 943 00 (4)

224 LESSON BY LESSON  TERM 4

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J Domingo D2
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2014
Apr 01 Account rendered ✔ 3 623 00
20 Invoice no. 323 DJ4 ✔ 9 706 30 13 329 30
30 Receipt no. 91 CRJ4 ✔ 13 329 30 ✔ 0 00 (4)

L Zoar D3
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2014
Apr 01 Account rendered ✔ 700 00
07 Invoice no. 321 DJ4 ✔ 1 461 60 2 161 60
16 Receipt no. 89 CRJ4 ✔ 350 00 ✔ 1 811 60 (4)

List (schedule) of balances of debtors on 30 April 2014


T Baxter D1 R1 943,00 ✔
J Domingo D2 R0,00 ✔
L Zoar D3 R1 811,60 ✔
Debtors control B7 R3 754,60 ✔ (4)

Creditors Ledger of Slamet Stores


Mountifield Ltd C1
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2014
Apr 01 Account rendered ✔ 3 723 00
02 Invoice no. 116 CJ4 ✔ 3 623 00 7 346 00
14 Cheque no. 110 CPJ4 ✔ 7 346 00 0 00
22 Invoice no. 184 CJ4 ✔ 356 00 ✔ 356 00 (5)

Cekiso Suppliers C2
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2014
Apr 01 Account rendered ✔ 2 423 00
19 Invoice no. 117 CJ4 ✔ 3 192 00 5 615 00
23 Cheque no. 112 CPJ4 ✔ 2 423 00 ✔ 3 192 00 (4)

Boyd Traders C3
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2014
Apr 01 Account rendered ✔ 107 00
04 Cheque no. 107 CPJ4 ✔ 107 00 0 00
27 Invoice no. 119 CJ4 ✔ 3 694 85 ✔ 3 694 85 (4)

List (schedule) of balances of creditors on 30 April 2014


Mountifield Ltd C1 R356,00 ✔
Cekiso Suppliers C2 R3 192,00 ✔
Boyd Traders C3 R3 694,85 ✔
Creditors control B9 R7 242,85 ✔ (4)

LESSON BY LESSON  TERM 4 225

EMS 9 TG (ENG).indb 225 6/5/13 6:23:10 PM


4. Lower order (18)
Trial Balance of Slamet Stores on 30 April 2014 ✔
Balance Sheet accounts Fol. Debit Credit
Capital ✔ B1 125 000 00
Drawings ✔ B2 6 280 00
Land and buildings ✔ B3 135 000 00
Vehicles ✔ B4 50 900 00
Equipment ✔ B5 15 423 00
Trading stock ✔ B6 15 172 85
Debtors control ✔ B7 3 754 60
Bank ✔ B8 55 540 30
Creditors control ✔ B9 7 242 85
Nominal accounts
Sales ✔ N1 239 165 90
Cost of sales ✔ N2 82 471 00
Rent income ✔ N3 3 888 00
Wages ✔ N4 5 315 00
Stationery ✔ N5 1 969 00
Advertising ✔ N6 616 00
Telephone ✔ N7 1 409 00
Water and electricity ✔ N8 1 446 00
375 296 75 375 296 75

Activity 17.6
1. Middle and Higher order (66)
Cash Receipts Journal of Nani Traders for March 2017 CRJ3
Doc. Day Details Fol. Analysis of Bank Sales Cost of Debtors Sundry accounts
no. receipts sales control
Amount Fol. Details
46 01 A Kelby D2 342 00 ✔ 342 00
CRR Sales 544 00 ✔ 886 00 ✔ 544 00 ✔ 340 00
CRR 04 Sales 480 00 ✔ 480 00 ✔ 300 00
47 J Agulhas D3 165 00 ✔ 645 00 ✔ 165 00
48 14 C Kurz D4 300 00 ✔ 300 00
Rent
49 J Majiet 1 000 00 ✔ 1 300 00 1 000 00 N8 income✔
A
50 27 Khonjwayo D1 850 00 ✔ 850 00
CRR Sales 720 00 ✔ 1 570 00 ✔ 720 00 ✔ 450 00
A
51 28 Khonjwayo D1 484 00 ✔ 484 00 ✔ 484 00

✔ 4 885 00 1 744 00 1 090 00 2 141 00 1 000 00 (18)


B9 N1 N2/B6 B7

226 LESSON BY LESSON  TERM 4

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Cash Payments Journal of Nani Traders for March 2017 CPJ3
Doc. Day Name of Fol. Bank Trading Wages Creditors Sundry accounts
no. payee stock control Amount Fol. Details
182 04 E Carlse C2 ✔1 386 00 ✔1 386 00
183 T Emslie ✔6 150 00 ✔2 350 00 3 800 00 B5 Equipment✔
184 05 Cash ✔680 00 ✔680 00
185 07 Cash ✔660 00 200 00 B10 Cash float✔
460 00 B2 Drawings✔
186 18 Cash ✔375 00 ✔180 00 ✔150 00 45 00 N3 Stationery✔
187 27 Cash ✔800 00 ✔680 00 120 00 B2 Drawings✔
188 28 N Fortuin C1 ✔2 496 00 ✔2 496 00
189 N Fortuin ✔5 080 00 ✔5 080 00
Tamson
D/O Insurers ✔582 00 582 00 N9 Insurance✔
✔ 18 209 00 7 610 00 1 510 00 3 882 00 5 207 00 (24)
B9 B6 N4 B8

Debtors Journal of Nani Traders for March 2017 DJ3


Doc. Day Debtor Fol. Sales Cost of sales
no.
138 08 A Khonjwayo D1 ✔ 416 00 ✔ 260 00
139 19 A Khonjwayo D1 ✔ 608 00 ✔ 380 00
140 J Agulhas D3 ✔ 270 00 ✔ 168 75
141 27 A Kelby D2 ✔ 128 00 ✔ 80 00
✔ 1 422 00 888 75 (9)
B7/N1 N2/B6

Creditors Journal of Nani Traders for March 2017 CJ3


Doc. Day Creditor Fol. Creditors Trading Stationery Sundry accounts
no. control stock Amount Fol. Details
303 03 AllSorts C5 ✔ 10 445 00 ✔ 1 505 00 ✔ 360 00 8 580 00 B5 Equipment ✔
304 06 N Fortuin C1 ✔ 1 504 00 ✔ 1 380 00 ✔ 124 00
305 09 R Jones C4 ✔ 3 040 00 ✔ 3 040 00
306 10 N Fortuin C1 ✔ 720 00 ✔ 720 00
Packing
307 28 Writer’s Shoppe C3 ✔ 274 00 ✔ 211 00 63 00 N5 material ✔
✔ 15 983 00 6 645 00 695 00 8 643 00 (15)
B8 B6 N3

2. Middle order (60)


General Ledger of Nani Traders
Balance Sheet accounts
Dr Capital b1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Mar 01 Balance b/d ✔ 150 171 00 (1)

Dr Drawings b2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Mar 01 Balance b/d ✔ 3 850 00
07 Bank CPJ3 ✔ 460 00
27 Bank CPJ3 ✔ 120 00
✔ 4 430 00 (4)

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Dr Land and Buildings b3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Mar 01 Balance b/d ✔ 77 500 00 (1)

Dr Vehicles b4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Mar 01 Balance b/d ✔ 26 800 00 (1)

Dr Equipment b5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Mar 01 Balance b/d ✔ 38 250 00
03 Creditors control CJ3 ✔ 8 580 00
04 Bank CPJ3 ✔ 3 800 00
✔ 50 630 00 (4)

Dr Trading Stock b6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017 2017
Mar 01 Balance b/d ✔ 4 820 00 Mar 31 Cost of sales DJ3 ✔ 888 75
31 Bank CPJ3 ✔ 7 610 00 Cost of sales CRJ3 ✔ 1 090 00
Creditors control CJ3 ✔ 6 645 00 Balance c/d ✔ 17 096 25
19 075 00 19 075 00
2017
Apr 01 Balance b/d ✔ 17 096 25 (7)

Dr Debtors Control b7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017 2017
Mar 01 Balance b/d ✔ 2 120 00 Mar 31 Bank CRJ3 ✔ 2 141 00
31 Sales DJ3 ✔ 1 422 00 Balance c/d ✔ 1 401 00
3 542 00 3 542 00
2017
Apr 01 Balance b/d ✔ 1 401 00 (5)

Dr Creditors Control b8 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017 2017
Mar 31 Bank CPJ3 ✔ 3 882 00 Mar 01 Balance b/d ✔ 5 245 00
Balance c/d ✔ 17 346 00 31 Sundry purchases CJ3 ✔ 15 983 00
21 228 00 21 228 00
2017
Apr 01 Balance b/d ✔ 17 346 00 (5)

Dr Bank b9 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017 2017
Mar 31 Balance b/d ✔ 5 709 00 Mar 31 Total payments CPJ3 ✔ 18 209 00
Total receipts CPJ3 ✔ 4 885 00
Balance c/d ✔ 7 615 00
18 209 00 18 209 00
2017
Apr 01 Balance b/d ✔ 7 615 00 (5)

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Dr Cash Float b10 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Mar 01 Balance b/d ✔ 400 00
07 Bank CPJ3 ✔ 200 00
✔ 600 00 (3)

Nominal accounts
Dr Sales n1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Mar 01 Balance b/d ✔ 18 080 00
31 Bank CRJ3 ✔ 1 744 00
Debtors control DJ3 ✔ 1 422 00
✔ 21 246 00 (4)

Dr Cost of Sales n2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Mar 01 Balance b/d ✔ 11 300 00
31 Trading stock DJ3 ✔ 888 75
Trading stock CRJ3 ✔ 1 090 00
✔ 13 278 75 (4)

Dr Stationery n3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Mar 01 Balance b/d ✔ 210 00
18 Bank CPJ3 ✔ 45 00
31 Creditors control CJ3 ✔ 695 00
✔ 950 00 (4)

Dr Wages N4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Mar 01 Balance b/d ✔ 2 410 00
31 Bank CPJ3 ✔ 1 510 00
✔ 3 920 00 (3)

Dr Packing Material n5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Mar 01 Balance b/d ✔ 635 00
28 Creditors control CJ3 ✔ 63 00
✔ 698 00 (3)

Dr Telephone n6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Mar 01 Balance b/d ✔ 370 00 (1)

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Dr Water and Electricity n7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Mar 01 Balance b/d ✔ 562 00 (1)

Dr Rent Income n8 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Mar 01 Balance b/d ✔ 1 440 00
14 Bank CRJ3 ✔ 1 000 00
✔ 2 440 00 (3)

Dr Insurance n9 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Mar 28 Bank CPJ3 ✔ 582 00 (1)

3. Middle order (45)


Debtors Ledger of Nani Traders
A Khonjwayo D1
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2017
Mar 01 Account rendered ✔ 310 00

08 Invoice no. 138 DJ3 ✔ 416 00 726 00

19 Invoice no. 139 DJ3 ✔ 608 00 1 334 00

27 Receipt no. 50 CRJ3 ✔ 850 00 484 00

28 Receipt no. 51 CRJ3 ✔ 484 00 ✔ 0 00 (6)

A Kelby D2
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2017
Mar 01 Account rendered ✔ 1 345 00
Receipt no. 46 CRJ3 ✔ 342 00 1 003 00
27 Invoice no. 141 DJ3 ✔ 128 00 ✔ 1 131 00 (4)

J Agulhas D3
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2017
Mar 01 Account rendered ✔ 165 00

04 Receipt no. 47 CRJ3 ✔ 165 00 0 00

19 Invoice no. 140 DJ3 ✔ 270 00 ✔ 270 00 (4)

C Kurz D4
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2017
Mar 01 Account rendered ✔ 300 00
14 Receipt no. 48 CRJ3 ✔ 300 00 ✔ 0 00 (3)

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List (schedule) of balances of debtors on 31 March 2017
A Khonjwayo D1 R0,00 ✔
A Kelby D2 R1 131,00 ✔
J Agulhas D3 R270,00 ✔
C Kurz D4 R0,00 ✔
Debtors control B7 R1 401,00 ✔ (5)

Creditors Ledger of Nani Traders


N Fortuin C1
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2017
Mar 01 Account rendered ✔ 1 230 00
06 Invoice no. 304 CJ3 ✔ 1 504 00 2 734 00
10 Invoice no. 306 CJ3 ✔ 720 00 3 454 00
28 Cheque no. 188 CPJ3 ✔ 2 496 00 ✔ 958 00 (5)

E Carlse C2
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2017
Mar 01 Account rendered ✔ 1 386 00
04 Cheque no. 182 CPJ3 ✔ 1 386 00 ✔ 0 00 (3)

Writer’s Shoppe C3
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2017
Mar 01 Account rendered ✔ 724 00
28 Invoice no. 307 CJ3 ✔ 274 00 ✔ 998 00 (3)

R Jones C4
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2017
Mar 01 Account rendered ✔ 1 576 00
09 Invoice no. 305 CJ3 ✔ 3 040 00 ✔ 4 616 00 (3)

AllSorts C5
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2017
Mar 01 Account rendered ✔ 329 00
03 Invoice no. 303 CJ3 ✔ 10 445 00 ✔ 10 774 00 (3)

List (schedule) of balances of creditors on 31 March 2017


N Fortuin C1 R958,00 ✔
E Carlse C2 R0,00 ✔
Writer’s Shoppe C3 R998,00 ✔
R Jones C4 R4 616,00 ✔
AllSorts C5 R10 774,00 ✔
Creditors control B8 R17 346,00 ✔ (6)

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4. Lower order (20)
Trial Balance of Nani Traders on 31 March 2017 ✔
Balance Sheet accounts Fol. Debit Credit
Capital ✔ B1 150 171 00
Drawings ✔ B2 4 430 00
Land and buildings ✔ B3 77 500 00
Vehicles ✔ B4 26 800 00
Equipment ✔ B5 50 630 00
Trading stock ✔ B6 17 096 25
Debtors control ✔ B7 1 401 00
Creditors control ✔ B8 17 346 00
Bank ✔ B9 7 615 00
Cash float ✔ B10 600 00
Nominal accounts
Sales ✔ N1 21 246 00
Cost of sales ✔ N2 13 278 75
Stationery ✔ N3 950 00
Wages ✔ N4 3 920 00
Packing material ✔ N5 698 00
Telephone ✔ N6 370 00
Water and electricity ✔ N7 562 00
Rent income ✔ N8 2 440 00
Insurance ✔ N9 582 00
198 818 00 198 818 00

Activity 17.7

1. Middle and Higher order (16)


This activity has three journals already completed. Learners
must complete the CRJ and then post all the journals to the
General Ledger.

Cash Receipts Journal of Cyclone Cycles for November 2019 CRJ3


Doc. Day Details Fol. Analysis Bank Sales Cost of Current Debtors Sundry accounts
no. of receipts sales income control
Amount Fol. Details
G
37 01 Hassiem ✔143 000 00 143 000 00 B1 Capital ✔
A
38 03 Valverde 2 190 00 ✔2 190 00 ✔1 460 00
J Rent
39 Philander 9 900 00 ✔12 090 00 9 900 00 N3 income ✔

CRR 09 S April 330 00 ✔330 00 ✔330 00

40 13 E Zabel 770 00 ✔770 00 ✔770 00


Services
CRR 18 rendered 105 00 ✔105 00 ✔105 00

41 23 I Basson 6 963 00 6 963 00 ✔6 963 00 ✔4 642 00


P
42 28 Salvodelli 825 00 825 00 ✔825 00

✔ 164 083 00 9 153 00 6 102 00 435 00 1 595 00 152 900 00

B9 N1 N2/B6 N4 B7

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2. Higher order (18)
Cash Payments Journal of Cyclone Cycles for November 2019 CPJ3
Doc. Day Name of Fol. Bank Trading Consumable Wages Creditors Sundry accounts
no. payee stock goods control
Amount Fol. Details

30 Total b/d 68 750 00 26 400 00 16 500 00 22 000 00 ✔✔3 850 00


Ride
201 Traders ✔14 300 00 ✔14 300 00

202 Cash ✔9 250 00 ✔9 250 00


Slipstream
203 Stores ✔2 200 00 ✔2 200 00

✔ 94 500 00 40 700 00 16 500 00 31 250 00 6 050 00 (9)


B9 B6 N6 N5 B8

Debtors Journal of Cyclone Cycles for November 2019 DJ3


Doc. Day Debtor Fol. Sales Cost of sales
no.
30 Total b/d 1 170 00 ✔ 780 00
331 Sales ✔ 3 630 00 ✔ 2 420 00
4 800 00 3 200 00 (3)
B7/N1 N2/B6

Creditors Journal of Cyclone Cycles for November 2019 CJ3


Doc. Day Creditor Fol. Creditors Trading Consumable Sundry accounts
no. control stock goods
Amount Fol. Details
30 Total b/d 26 180 00 14 850 00 11 000 00 ✔✔330 00
213 Sprint Suppliers ✔12 100 00 ✔12 100 00
214 Spin Gear Stores ✔16 500 00 ✔16 500 00
54 780 00 26 950 00 27 500 00 330 00 (6)
B8 B6 N6

3. Middle order (46)


General Ledger of Cyclone Cycles
Balance Sheet accounts
Dr Capital b1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
Nov 01 Balance b/d ✔550 000 00
Bank CRJ3 ✔143 000 00
✔693 000 00 (3)

Dr Trading Stock b6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019 2019
Nov 01 Balance b/d ✔ 168 520 00 Nov 30 Cost of sales DJ3 ✔ 3 200 00
30 Bank CPJ3 ✔ 40 700 00 Cost of sales CRJ3 ✔ 6 102 00
Creditors control CJ3 ✔ 26 950 00 Balance c/d ✔ 226 868 00
236 170 00 236 170 00
2019
Dec 01 Balance b/d ✔ 226 868 00 (7)

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Dr Debtors Control b7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019 2019
Nov 01 Balance b/d ✔ 2 420 00 Nov 30 Bank CRJ3 ✔ 1 595 00
30 Sales DJ3 ✔ 4 800 00 Balance c/d ✔ 5 625 00
7 220 00 7 220 00
2019
Dec 01 Balance b/d ✔ 5 625 00 (5)
Dr Creditors Control b8 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019 2019
Nov 30 Bank CPJ3 ✔ 6 050 00 Nov 01 Balance b/d ✔ 7 793 00
Balance c/d ✔ 56 523 00 30 Sundry purchases CJ3 ✔ 54 780 00
62 573 00 62 573 00
2019
Dec 01 Balance b/d ✔ 56 523 00 (5)

Dr Bank b9 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019 2019
Nov 01 Balance b/d ✔ 12 550 00 Nov 30 Total payments CPJ3 ✔ 94 500 00
30 Total receipts CRJ3 ✔ 164 083 00 Balance c/d ✔ 82 133 00
176 633 00 176 633 00
2019
Dec 01 Balance b/d ✔ 82 133 00 (5)

Nominal accounts
Dr Sales n1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
Nov 01 Balance b/d ✔ 98 700 00
30 Bank CRJ3 ✔ 9 153 00
Debtors control DJ3 ✔ 4 800 00
✔ 112 653 00 (4)

Dr Cost of Sales n2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
Nov 01 Balance b/d ✔ 65 800 00
30 Trading stock CRJ3 ✔ 6 102 00
Trading stock DJ3 ✔ 3 200 00
✔ 75 102 00 (4)

Dr Rent Income n3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
Nov 01 Balance b/d ✔ 34 650 00
03 Bank CRJ3 ✔ 9 900 00
✔ 44 550 00 (3)

Dr Current Income n4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
Nov 01 Balance b/d ✔ 1 200 00
30 Bank CRJ3 ✔ 435 00
✔ 1 635 00 (3)

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Dr Wages n5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
Nov 01 Balance b/d ✔ 62 500 00
30 Bank CPJ3 ✔ 31 250 00
✔ 93 750 00 (3)

Dr Consumable Goods n6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
Nov 01 Balance b/d ✔ 3 127 00
30 Bank CPJ3 ✔ 16 500 00
Creditors control CJ3 ✔ 27 500 00
✔ 47 127 00 (4)

Activity 17.8
Higher order (46)
There are a few calculations that you need to help the learners with. If
they are struggling, work through the answers to the missing figures
beforehand.

General Ledger of Fleur de Lys Suppliers


Balance Sheet accounts
Dr Trading Stock b6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015 2015
Jun 01 Balance b/d ✔ 1 101 600 00 Jun 30 Cost of sales ✔ DJ6 ✔ 224 400 00
30 Bank ✔ CPJ6 ✔ 71 400 00 Cost of sales ✔ CRJ6 ✔ 626 200 00
Creditors control ✔ CJ6 ✔ 78 642 00 Balance c/d ✔ 401 042 00
1 251 642 00 1 251 642 00
2015
Jul 01 Balance b/d ✔ 401 042 00 (11)
Dr Debtors Control b7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015 2015
Jun 01 Balance b/d ✔ 219 300 00 Jun 30 Bank ✔ CRJ6 ✔ 358 569 00
30 Sales ✔ DJ6 ✔ 309 672 00 Balance c/d ✔ 170 403 00
528 972 00 528 972 00
2015
Jul 01 Balance b/d ✔ 170 403 00 (8)

Dr Creditors Control b9 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015 2015
Jun 30 Bank ✔ CPJ6 ✔ 20 900 00 Jun 01 Balance b/d ✔ 107 100 00
Balance c/d ✔ 248 737 00 30 Sundry purchases ✔ CJ6 ✔ 162 537 00
269 637 00 269 637 00
2015
Jul 01 Balance b/d ✔ 248 737 00 (7)

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Nominal accounts
Dr Sales n1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015
Jun 01 Balance b/d ✔ 3 561 228 00
30 Bank ✔ CRJ6 ✔✔ 864 156 00
Debtors control ✔ DJ6 ✔ 309 672 00
✔ 4 735 056 00 (7)

Dr Cost of Sales n2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015
Jun 01 Balance b/d ✔ 2 580 600 00
30 Trading stock ✔ CRJ6 ✔ 626 200 00
Trading stock ✔ DJ6 ✔ 224 400 00
✔ 3 431 200 00 (6)

Dr Stationery n3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2015
Jun 01 Balance b/d ✔ 23 460 00
16 Bank ✔ CPJ6 ✔ 12 750 00
30 Creditors control ✔ CJ6 ✔✔ 11 220 00
✔ 47 430 00 (7)

Calculations for missing amounts:


1. CRJ: Sales
To calculate the sales, you need to calculate the profit percentage
first.
Profit = R3 561 228 – R2 580 600 = R980 628
profit
Profit % = ________
​    ​ 
× 100
cost price
​  980 628 
= _________  ​ 
× 100
2 580 600
= 38%
Sales ​ 138 ​ × R626 200 = R864 156
= ____
100
2. CRJ: Debtors control
R2 259 708 – R864 156 – R1 036 983 = R358 569
3. CJ: Stationery
R162 537 – R78 642 – R18 360 – R54 315 = R11 220

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Activity 17.9
Middle and Higher order (24)
Learners must pay close attention to who is selling to whom, and who
issued and/or received the invoice. Use this to help them remember:

Source document Journal


Duplicate receipt issued CRJ
Cheque counterfoil CPJ
Duplicate invoice issued DJ
Original invoice received CJ

Creditors Ledger of Franklins Interiors


Woolford Suppliers C1
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2013
Apr 01 Account rendered ✔ 7 139 20
04 Invoice ✔ CJ ✔ 9 645 53 16 784 73
14 Invoice ✔ CJ ✔ 1 750 08 18 534 81
17 Cheque ✔ CPJ ✔ 18 534 81 0 00
24 Invoice ✔ CJ ✔ 16 518 40 16 518 40
31 Invoice ✔ CJ ✔ ✔ 690 40 ✔ 17 208 80 (13)

Debtors Ledger of Franklins Interiors


A Zelinsky D1
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2013
Apr 01 Account rendered ✔ 2 374 40
07 Invoice ✔ DJ ✔ 13 448 00 15 822 40
11 Receipt ✔ CRJ ✔ 2 374 40 13 448 00
21 Invoice ✔ DJ ✔ 5 888 00 19 336 00
27 Receipt ✔ CRJ✔ ✔ 4 000 00 ✔ 15 336 00 (11)

Activity 17.10
1. Higher order (7)
Learners should first calculate the balance of L Mhlopo:
R2 834 – R1 492 – R688 = R654
General Ledger of Shero Traders
Dr Debtors Control Cr
Date Details Fol. Amount Date Details Fol. Amount
2013 2013
Jun 01 Balance b/d ✔ 2 834 00 Jun 31 Bank ✔ CRJ ✔ 4 225 00
30 Sales ✔ DJ ✔ 5 630 00 Balance c/d ✔ 4 239 00
8 464 00 8 464 00
2013
Jul 01 Balance b/d ✔ 4 239 00

LESSON BY LESSON  TERM 4 237

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2. Higher order (11)
For information Debtors Ledger of Shero Traders
on Informal L Mhlopo D1
assessment, refer to Date Details/Document no. Fol. Debit (+) Credit (–) Balance
the self-assessment, 2013
Jun 01 Account rendered ✔✔ 654 00
peer assessment and
05 Invoice no. 64 ✔ DJ ✔ 512 00 1 166 00
group assessment
09 Invoice no. 67 ✔ DJ ✔ 756 00 1 922 00
templates in
13 Receipt no. 187 ✔ CRJ ✔ 654 00 1 268 00
Section 5 of this
29 Receipt no. 194 ✔ CRJ ✔ 1 268 00 ✔ 0 00
Teacher’s Guide.

Informal assessment If learners make mistakes in their


journals, they don’t carry those mistakes
Activity 17.1: Do Activity 17.1 orally in class,
forward to their ledgers and Trial Balance.
giving each learner an opportunity to answer,
So, mark the journals of each activity first,
while they mark their activities at the same
before you ask learners to do the ledgers and
time. This works well as an introduction to
Trial Balance. (887)
Activity 17.2. (91)
Activity 17.7: Show the CRJ on an
Activities 17.2—17.6: These activities
overhead/data projector and learners mark
can be checked and marked by the learners
their own work. A good method for marking
on their own. These activities are marked
the General Ledger is by doing it on the
best using a handout. Learners mark their
board, as you explain where the answers
activities, while you check their books.
come from. If time is limited, mark the
For all of these activities, a good method
activity using a handout. (80)
is to mark an activity’s journals in one lesson
and the ledgers of that activity during the Activities 17.8—17.10: Do these activities
next lesson, together with the journals of on the board. Learners mark their own work
the next activity. or check a partner’s work. They can also be
marked as informal class assessments. (88)

Consolidation
Indicate the effect of each of the following transactions on the
accounting equation.

Example: Bought stationery on credit from Ricky Traders for R220.


No. Source Journal Account Account A OE L
document debited credited
e.g. Original invoice CJ Stationery Creditors —220 +220
control

Transactions
01 The owner increased his capital contribution by 25% to R20 000.
02 Received rent for the month from Thomas Services, R800.
03 Bought merchandise on credit from Tak Traders, R370 less 10%
trade discount.
04 Sold merchandise on credit to D Parsons, R99 (cost price R62).
05 Paid L Amber by cheque in payment of the business account, R370.
06 The owner took a cash cheque of the business to pay his personal
telephone account of R100.

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07 Received a cheque from M Mponeng to settle her debt of R375.
08 Sold merchandise for cash to K Mettler, R770 (cost price R616).
09 Issued a cheque to Mbenenge Motors for a delivery vehicle
purchased, R18 000, and fuel, R110.
10 Stationery purchased on credit from Moenti Ltd for R380, as well
as equipment to the value of R11 842.
11 Bought the following on credit from Junaid Ltd: Goods,
R2 150 less 12% trade discount, packing material, R256, and a
fax machine for office use, R1 600.
12 Issued a cheque to Stokes Insurers in settlement of the owner’s insurance
premium, R250, and the business’s insurance premium, R400.

No. Source Journal Account Account A OE L


document debited credited
e.g. Original invoice CJ Stationery Creditors —220 +220
control
01 Duplicate CRJ Bank Capital +4 000 +4 000
receipt/deposit
slip
02 Duplicate receipt CRJ Bank Rent — income +800 +800
03 Original invoice CJ Trading stock Creditors +333 +333
control
04 Duplicate invoice DJ Debtors Sales +99 +99
control
Cost of sales Trading stock —62 —62
05 Cheque CPJ Creditors Bank —370 —370
counterfoil control
06 Cheque CPJ Drawings Bank —100 —100
counterfoil
07 Duplicate receipt CRJ Bank Debtors ±375
control
08 Cash register roll CRJ Bank Sales +770 +770
Cost of sales Trading stock —616 —616
09 Cheque CPJ Vehicles Bank ±18 000
counterfoil
Fuel Bank —110 —110
10 Original invoice CJ Equipment Creditors +11 842 +11 842
control
Stationery Creditors —380 +380
control
11 Original invoice CJ Trading stock Creditors +1 892 +1 892
control
Packing Creditors —256 +256
material control
Equipment Creditors +1 600 +1 600
control
12 Cheque CPJ Drawings Bank —250 —250
counterfoil
Insurance Bank —400 —400

LESSON BY LESSON  TERM 4 239

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Extension (18)
Complete the table by filling in the missing words.

Transaction Source document Journal Account(s) debited Account(s)


credited
Credit sales Duplicate invoice DJ Debtors control Sales
Cost of sales Trading stock
Cash purchases Cheque counterfoil CPJ Trading stock Bank
Capital contribution Duplicate receipt CRJ Bank Capital
Payment received Duplicate receipt CRJ Bank Debtors control
from debtor
Equipment bought Original credit CJ Equipment Creditors control
on credit invoice
Paid creditor by Cheque counterfoil CPJ Creditors control Bank
cheque
Cash sales Cash register roll CRJ Bank Sales
Cost of sales Trading stock
Rent received Duplicate receipt CRJ Bank Rent income
Owner withdrew Cheque counterfoil CPJ Drawings Bank
cash

Topic
UnitBusiness
1 plan
18 Learner’s Book pages 238—251 Duration: 6 hours

Term and week/s


Curriculum and Assessment Policy Statement
Term 4, Weeks 2–7 (CAPS) content
In this topic, learners will learn about ENTREPRENEURSHIP. They
New words
will look at:
and concepts
projections; • concept of a business plan
production plan; • components of a business plan
marketing plan; • format of a business plan:
management plan; – front cover
financial plan; – table of contents
SWOT analysis;
batch production;
– description of the good or service
mass production; – goals of the business
job production; – who owns the business
unique selling – production plan
points; break- – marketing plan
even points; profit – management plan
percentage – SWOT analysis
– conclusion
• financial plan:
– fixed and variable costs
– break-even points
– mark-up on sales
– profit percentage

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Resources
Try to find a sample business plan from a business in your area to
show the learners.
Gather news articles from magazines, newspapers and the Internet
about the importance of planning in a business. Also look for articles
about the importance of a good business plan for entrepreneurs and
SMMEs. Banks such as Standard Bank offer advice on writing a
business plan. Many entrepreneurs apply to banks for financing so
banks assist them with writing a good business plan. You could visit
a consultant at your local bank for information about how to write a
business plan or look for information on the banks’ websites.

Find examples of vision statements to share with the learners. You


can find these on large businesses’ websites or by contacting the
businesses directly.
You will recap the SWOT analysis that you taught in Grade 7, so use
the resources you gathered for that content again and supplement
them with new ones. You will also revise start-up capital briefly, as
well as goal-setting.
Preparation
• Read through the topic and familiarise yourself with the content
that you will need to teach. Think about what learners may
already know about the topics, what skills they already have and
any areas of difficulty that you think they might encounter.
• Gather your resources and plan how you will integrate them into
your teaching.
• Try to look at a real example of a business plan or to find sample
business plans on websites such as this one: http://southafrica.
smetoolkit.org/sa/en/category/2944/Business-Plans .

Teaching the topic


There are 6 lessons in this topic.
Lesson Week Pages Activities
2 2 241—242 —
3 3 242 18.1
4 4 242 18.2
5 5 243 18.3
6 6 243 18.4
7 7 243 18.5

Lesson 2
• Begin by talking about planning, using the text in the Learner’s
Book pages 238–239. Ensure that this discussion is relevant to the
learners’ lives, and not only to the business context.

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• Revise start-up capital. Remind the learners that starting a new
business is expensive and capital is difficult to find. Ask them how
they think they could show potential investors that they have a
good business idea and that they are organised and serious about
starting the business.
• Explain that the business plan is an important part of planning
a new business or planning for the extension or expansion of an
existing business.
• Introduce the concept of a business plan.
• Have a brainstorming session about the kind of information
learners think a business plan would need to cover. They
close their Learner’s Books for this session and think of ideas
independently.
• Then work through their ideas along with the text on
the components of a business plan in Figure 18.2 of the
Learner’s Book.

Lesson 3
• This week you will start teaching the format of a business plan.
Talk about why the learners think a standardised format would be
useful, and why it is best to follow a standardised format instead
of presenting information in your own way.
• Ask them what they think a good format would look like, given
the components that need to go into a business plan.
• Work through the diagram in Figure 18.3 of the Learner’s Book
giving the format of a business plan.
• Discuss the front cover using Figure 18.4 and table of contents
using Figure 18.5 of the Learner’s Book.
• Do Activity 18.1.
• Learners do this activity in class time. Give them time to discuss
the questions.

Lesson 4
• Continue with the format of a business plan. Ask learners why
they think it is important to describe the business’s goods or
services in a business plan.
• Talk about business goals, revising the content you taught in
Grade 7. Spend some time on vision statements. Use the Learner’s
Book examples and your own resources to teach learners what
makes a good vision statement.
• Do Activity 18.2.
• Let the learners have some fun defining a business and writing a
vision statement for it. Ensure that they spend this time defining
the business and its goals so that they know what to write in their
vision statements.
• Allow time for report-backs to the class. The groups should enjoy
hearing what their peers came up with in this activity. Encourage
and reward creative and critical thinking.

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Lesson 5
• Move on to the part of the business plan that describes who owns
the business. Ask learners why they think this information might
be important.
• Discuss the production plan and its importance. Link this to
the content you taught about production when you taught the
business functions last term.
• Discuss the marketing plan and its importance. Link this to the
content you taught about marketing when you taught the business
functions last term.
• Do Activity 18.3.
• If there is time, allow learners to do this during class so that you
can help them if they get stuck. Set it as homework if there is
no time.

Lesson 6
• Start by working through and discussing the learners’ answers for
Activity 18.3.
• Talk about the management plan and its importance. Link this
to the content you taught about general management when you
taught the business functions last term.
• Revise the SWOT analysis from Grade 7 using Figure 18.8 in the
Learner’s Book.
• Talk about the importance of the SWOT analysis in the context
of a business plan.
• Do Activity 18.4.
• Learners complete this activity in class.

Lesson 7
• Start by going through the learners’ answers to Activity 18.4.
• Move on to the financial plan. Discuss this plan and its
importance. Link this to the content you taught about finance
when you taught the business functions last term.
• Recap fixed and variable costs, break-even points and mark-ups
from Entrepreneur’s Day in Grade 7 and the Income Statement
from Grade 8.
• Work through the profit percentage calculation with the learners
and give them some examples to calculate in pairs.
• Do Activity 18.5.
• Conclude by referring to the diagram about the format of the
business plan in Figure 18.3 of the Learner’s Book to summarise
and recap.

Answers
Activity 18.1
1. Lower order (3)
A business plan is a formal, written plan ✔ that gives a detailed
description ✔ of how a business is going to achieve its goals. ✔

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2. Middle order (4)
Business plans represent everything that your business is about.
✔ So, it is important to prepare a business plan properly. ✔ An
incomplete, badly written or sloppy business plan will tell readers
that your business is badly run and that you do not care about
being meticulous. ✔ Investors will not want to finance a badly
run business. ✔
3. Higher order (any 4)
Learners give their own opinions and say why they agree or disagree.
For example, they could say they agree because planning and analysis
is critical to the success of a business ✔ you cannot just start a business
and hope that it will work. ✔ Or they could say they do not agree
because if a business idea is good enough, ✔ it will work no matter
what. ✔ You often see people making a living out of businesses that
started without following the strict structure of a business plan. ✔
Ideally, learners should recognise the value of the business plan and see
that it is instrumental in turning an idea into reality. ✔
4. Middle order (7)
Learners should include the logo, ✔ name, ✔ personal details,
✔ date of preparation ✔ and a slogan ✔. Ensure that it looks
professional ✔ and shows that learners have given some thought
to its preparation. ✔

Activity 18.2
1. Lower order (3)
A business’s vision statement is a statement of what the business
aims to achieve ✔ in the medium term or the long term. ✔
The vision statement helps managers to choose the best actions
to take to reach the business’s goals. ✔
2. Higher order (5)
Learners take some time to talk about exactly how they see the
business so that they have a base on which to build their vision
statements. Let them work freely and creatively and use some
entrepreneurial initiative, but make sure that the vision statement
is not simply a marketing slogan. They must have defined the
business well enough for the vision statement to give the business’s
medium-term and long-term goals.

Activity 18.3
1. Middle order (4)
Preparing it helps you to make sure that your production process
is properly planned. ✔ Production equipment is a large part
of a business’s start-up costs, ✔ so if you are using the business
plan to apply for start-up capital, ✔ potential investors want to
see that you have spent lots of time planning and organising the
production function. ✔

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2. Middle order (4)
The production plan contains information about the kind of
production process that the business uses. ✔ It needs to specify
what kind of production system the business uses, as well as:
• Where the business gets its raw materials from ✔
• What equipment and machinery it needs to manufacture
its goods ✔
• What equipment and machinery the business already has and
what it still needs to get for manufacturing to be possible. ✔
3. Lower order (2)
The marketing plan is the part of the business plan ✔ that explains
how the business is going to market its goods and services. ✔
4. Middle order (8)
The marketing plan should include the following information:
• What marketing aims the business wants to achieve ✔
• An explanation of how your goods and services will benefit
consumers ✔
• Details about the market research you have done to establish
whether there is a market for your business ✔
• Details about the target market you have identified for your
business ✔
• Information about your competitors and a plan for how you
plan to stay ahead of them ✔
• Details about how you plan to advertise and brand your
business and about what the advertising budget will be ✔
• Information about the monthly and yearly sales targets you
have set for the business ✔
• Information about how you plan to price your goods and
what payment methods your business will accept. ✔

Activity 18.4
1.–3. Higher order (19)
1. Learners do their own SWOT analysis of the Whale View
Restaurant and Coffee Shop. Ensure that they write an accurate
conclusion that shows that there are more opportunities and
strengths than threats and weaknesses about the business idea.
Check that they have come up with strategies to overcome the
threats and weaknesses that could affect the business negatively.
2. Learners’ answers could be structured as follows:
STRENGTHS WEAKNESSES
• Setting ✔ • Whale season is a very busy time,
• Tourist trade is guaranteed every so the coffee shop will need more
year at whale season ✔ staff, but it cannot maintain its
• Tourists visit Hermanus staff numbers all year as there is
throughout the year not enough business ✔
• When people are on holiday, • The owner has run restaurants
they like to take a break from before but may not be familiar
preparing meals and treat with coffee shop trade in small
themselves to things like coffee towns such as Hermanus ✔
and cake ✔

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OPPORTUNITIES THREATS
• Hermanus is growing because of • This is a tourist destination, so
increasing tourist numbers ✔ there is strong competition – lots
• The numbers of people moving of coffee shops all catering for
there from Cape Town is also tourists ✔
growing (people no longer need • If behaviour patterns of whales
to work in an office and can stay change and they move away
in touch with their businesses from Hermanus, the town could
using the Internet) ✔ lose many of its tourists ✔
• So, the numbers of people
coming to the coffee shop could
increase all year round ✔ (10)

3. Sample conclusion: Whale View Restaurant and Coffee Shop has


the potential to succeed. ✔ The tourist trade is guaranteed over
whale season, ✔ and the increasing population of the town means
that the business could operate profitably out of season. ✔ As the
owner, my experience stands in my favour. ✔ I know the restaurant
trade and can transfer my skills to refocus on the coffee shop trade.
✔ I will need to plan my staffing well to accommodate seasonal
changes in the business, ✔ and make sure that I maintain a high
profile all year round so that people remember my business. ✔ I
will run specials out of season and keep advertising, ✔ and I will
make sure that the quality and service that people experience at my
business is always excellent, so that they keep coming back. ✔ (9)

Activity 18.5
1. Lower order (2)
The financial plan is the business owner’s opportunity to show
that the business’s finances have been planned thoroughly ✔ and
that the business is financially viable. ✔
2. Lower order (8)
The financial plan states what the business’s financial goals are. ✔
It gives information about how much financing the business needs
to start up or to expand. ✔ This includes information about how
much money the owners have to invest in the business. ✔ It also
states the capital sources that the owners are investigating. ✔ The
financial plan also gives the following information:
• Fixed and variable costs ✔
• Break-even points ✔
• Mark-ups on sales ✔
• The profit percentage. ✔
3. Middle order (4)
Potential investors want to see that the owners are innovative
and plan to look in many different places for capital. ✔ They
also want to see that the owners are willing to make sacrifices for
the business by investing their own capital into the business. ✔
This tells investors that the owners are serious about the business
✔ and will work hard to make the business a success to get the
money back that they put in. ✔

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Informal assessment Activity 18.3: Take in the learners’
answers and mark them.  (18)
Activity 18.1: Observe the group interactions
and make notes of what you see.  (no marks) Activity 18.4: Observe the group
interactions and make notes about how well
Activity 18.2: Observe the group
the learners can apply what they know to
interactions and note who drives the process
business contexts.  (no marks)
in this activity. Make sure that no group
members get a ‘free ride’ by sitting back Activity 18.5: Take in the learners’ answers
and letting more driven learners do all the and mark them to assess how well the learners
thinking and executing.  (no marks) are able to work on their own.  (14)

For information Consolidation


on Informal • Explain the difference between fixed and variable costs.
assessment, refer to Fixed costs are production costs that do not change when the
the self-assessment, number of goods that a business produces changes. Variable
peer assessment and costs are costs that do change according to the number of
group assessment goods produced.
templates in
Section 5 of this • Define a break-even point.
Teacher’s Guide. Break-even points are the points at which a business makes
enough money to cover its production costs.
• Why are break-even points an important part of a business plan?
This is important business plan information because potential
investors need to see that your financial targets are realistic.
• Explain what a management plan is.
The management plan tells potential investors a lot about a
business. By looking at the management plan, potential investors
can see whether the managers of the business have enough skills
and experience to make the business succeed.

Extension
• A well-designed logo on the front cover of a business plan gives
the business a professional look. It tells people that you have
given thought to how the business is branded. Think about a
business that you would like to start. Write down what it is and
what it would do. Write a vision statement for the business, and
design a logo and an overall look for the business’s branding.
Write some notes about why you chose the logo and branding
that you did. What does it say about you, and what does it say
about your business to potential investors?
Learners give their own business idea, business description, vision
statement, logo and branding ideas. They write about why they
designed the logo and branding as they did and explain how the
logo, vision statement and branding say something about them
and their business to potential investors.
• Write a short paragraph about why you think branding is part
of marketing a business.
Learners give their own opinions.

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Revision Term 4
Learner’s Book pages 252—257

Topic 17: Transactions: Cash and credit


Activity 1: Revise journals
1.1 Middle order
Cash Receipts Journal of Adams Traders for May 2019 CRJ5
Doc. Day Details Fol. Analysis of Bank Sales Cost of Debtors Sundry accounts
no. receipts sales control
Amount Fol. Details
446 01 T Adams ✔2 600 00 ✔2 600 00 B1 Capital✔
Vuzi Rent
447 Properties ✔1 200 00 ✔3 800 00 ✔1 200 00 N3 income✔

448 10 L April D1 ✔2 815 80 ✔2 815 80

449 M Alexander D3 ✔5 525 00 ✔8 340 80 ✔5 525 00

CRR 14 Sales ✔1 809 00 ✔1 809 00 ✔1 340 00

450 S Fortuin D2 ✔1 500 00 ✔3 309 00 ✔1 500 00

CRR 26 Sales ✔8 775 00 ✔8 775 00 ✔6 500 00

Rent
451 M Schaiffer ✔1 250 00 ✔10 025 00 ✔1 250 00 N3 income✔

25 474 80 10 584 00 7 840 00 9 840 80 5 050 00

B7 N1 N2/B5 B6 (25)

Cash Payments Journal of Adams Traders for May 2019 CPJ5


Doc. Day Name of Fol. Bank Trading Wages Creditors Sundry accounts
no. payee stock control
Amount Fol. Details

313 02 Tamsan ✔6 653 00 ✔6 600 00 ✔53 00 N5 Stationery✔

314 09 Cash ✔2 650 00 ✔2 650 00

315 20 Cash ✔2 650 00 ✔2 650 00

316 23 C Booysen C1 ✔2 660 00 ✔2 660 00

317 25 Sun Insurers ✔320 00 ✔320 00 B2 Drawings✔

318 28 M Marx ✔1 600 00 ✔1 600 00 N8 Salaries✔


Water and
319 31 City Council ✔1 008 00 ✔356 00 N6 electricity✔

✔ ✔652 00 B2 Drawings✔

17 541 00 6 600 00 5 300 00 2 660 00 2 981 00

B7 B5 N4 B8 (22)

Debtors Journal of Adams Traders for May 2019 DJ5


Doc. Day Balance Sheet accounts Fol. Sales Cost of sales
no.
91 03 L April D1 ✔894 60 ✔497 00
92 08 S Fortuin D2 ✔1 429 20 ✔794 00
93 L April D1 ✔934 20 ✔519 00
94 22 M Alexander D3 ✔1 548 00 ✔860 00
4 806 00 2 670 00

B6/N1 N2/B5 (8)

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Creditors Journal of Adams Traders for May 2019 CJ5
Doc. Day Creditor Fol. Creditors Trading Stationery Sundry accounts
no. control stock
Amount Fol. Details
146 04 C Booysen C1 ✔650 00 ✔650 00

147 12 A Botes C2 ✔1 620 00 ✔1 620 00

148 21 C Booysen C1 ✔5 112 00 ✔231 00 ✔4 881 00 B4 Equipment✔


149 24 A Botes C2 ✔2 266 00 ✔1 334 00 ✔932 00 N7 Packing material✔
9 648 00 3 604 00 231 00 5 813 00

B8 B5 N5 (12)

1.2 Lower order


General Ledger of Adams Traders
Balance Sheet accounts
Dr Capital b1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
May 01 Balance✔ b/d 177 400 00
Bank✔ CRJ5 2 600 00
✔ 180 000 00

Dr Drawings b2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
May 01 Balance b/d 19 204 00 ✔

25 Bank CPJ5 320 00 ✔✔

31 Bank CPJ5 652 00 ✔✔

20 176 00 ✔

Dr Land and Buildings b3 Cr


Date Details Fol. Amount Date Details Fol. Amount
2019
May 01 Balance b/d 106 000 00 ✔

Dr Equipment b4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
May 01 Balance b/d 41 356 00 ✔

21 Creditors control CJ5 4 881 00 ✔✔

46 237 00 ✔

Dr Trading Stock b5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019 2019
May 01 Balance✔ b/d 47 354 00 May 31 Cost of sales✔✔ CRJ5 7 840 00
31 Bank✔✔ CPJ5 6 600 00 Cost of sales✔✔ DJ5 2 670 00
Creditors control✔✔ CJ5 3 604 00 Balance✔ c/d 47 048 00
57 558 00 57 558 00
2019
Jun 01 Balance b/d 47 048 00

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Dr Debtors Control b6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019 2019
May 01 Balance✔ b/d 10 062 00 May 31 Bank✔✔ CRJ5 9 840 80
31 Sales✔✔ DJ5 4 806 00 Balance✔ c/d 5 027 20
14 868 00 14 868 00
2019
Jun 01 Balance✔ b/d 5 027 20

Dr Bank b7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019 2019
May 01 Balance✔ b/d 11 611 00 May 31 Total payments✔✔ CPJ5 17 541 00
31 Total receipts✔✔ CRJ5 25 474 80 Balance✔ c/d 19 544 80
37 085 80 37 085 80
2019
Jun 01 Balance✔ b/d 19 544 80

Dr Creditors Control b8 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019 2019
May 31 Bank✔✔ CPJ5 2 660 00 May 01 Balance✔ b/d 8 778 00
Balance✔ c/d 15 766 00 31 Sundry purchases✔✔ CJ5 9 648 00
18 426 00 18 426 00
2019
Jun 01 Balance✔ b/d 15 766 00

Nominal accounts
Dr Sales n1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
May 01 Balance✔ b/d 227 600 00
31 Bank✔✔ CRJ5 10 584 00
Debtors control✔✔ DJ5 4 806 00
✔ 242 990 00

Dr Cost of Sales N2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
May 01 Balance b/d ✔ 113 800 00

31 Trading stock CRJ5 ✔✔ 7 840 00


Trading stock DJ5 ✔ 2 670 00

✔ 124 310 00

Dr Rent Income n3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
May 01 Balance✔ b/d 17 422 00

Bank✔ CRJ5 1 200 00

26 Bank✔ CRJ5 1 250 00

✔ 19 872 00

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Dr Wages n4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
May 01 Balance b/d ✔ 6 981 00

31 Bank CPJ5 ✔✔ 5 300 00


✔ 12 281 00

Dr Stationery n5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
May 01 Balance b/d ✔ 5 010 00

02 Bank CPJ5 ✔✔ 53 00

30 Creditors control CJ5 ✔✔ 231 00

✔ 5 294 00

Dr Water and Electricity n6 Cr


Date Details Fol. Amount Date Details Fol. Amount
2019
May 01 Balance b/d ✔ 1 997 00

31 Bank CPJ5 ✔✔ 356 00

✔ 2 353 00

Dr Packing Material n7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
May 01 Balance b/d ✔ 733 00

24 Creditors control CJ5 ✔✔ 932 00

✔ 1 665 00

Dr Salaries n8 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
May 01 Balance b/d ✔ 62 378 00

28 Bank CPJ5 ✔✔ 1 600 00

✔ 63 978 00

Dr Telephone n9 Cr
Date Details Fol. Amount Date Details Fol. Amount
2019
May 01 Balance b/d ✔ 4 714 00

(84)
1.3 Middle order
Debtors Ledger of Adams Traders
L April D1
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2019
May 01 Account rendered✔ 987 00

03 Invoice no. 91✔✔ DJ5 894 60 1 881 60


08 Invoice no. 93✔✔ DJ5 934 20 2 815 80
10 Receipt no. 448✔✔ CRJ5 2 815 80 0 00

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S Fortuin D2
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2019
May 01 Account rendered✔ 1 550 00

08 Invoice no. 92✔✔ DJ5 1 429 20 2 979 20


14 Receipt no. 450✔✔ CRJ5 1 500 00 1 479 20

M Alexander D3
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2019
May 01 Account rendered✔ 7 525 00
10 Receipt no. 449✔✔ CRJ5 5 525 00 2 000 00
22 Invoice no. 94✔✔ DJ5 1 548 00 3 548 00

List (schedule) of balances of debtors on 31 May 2019


L April D1 R0,00
S Fortuin D2 R1 479,20
M Alexander D3 R3 548,00
Debtors control B6 R5 027,20

Creditors Ledger of Adams Traders


C Booysen C1
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2019
May 01 Account rendered✔ 1 660 00
04 Invoice no. 146✔✔ CJ5 650 00 2 310 00
21 Invoice no. 148✔✔ CJ5 5 112 00 7 422 00
23 Cheque no. 316✔✔ CPJ5 2 660 00 4 762 00

A Botes C2
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2019
May 01 Account rendered✔ 2 165 00
12 Invoice no. 147✔✔ CJ5 1 620 00 3 785 00
24 Invoice no. 149✔✔ CJ5 2 266 00 6 051 00

W de Jager C3
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2019
May 01 Account rendered✔ 4 953 00

List (schedule) of balances of creditors on 31 May 2019


C Booysen C1 R4 762,00
A Botes C2 R6 051,00
W de Jager C3 R4 953,00
Creditors control B8 R15 766,00
(30)

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1.4 Lower order
Trial Balance of Adams Traders on 31 May 2019
Balance Sheet accounts Fol. Debit Credit
Capital B1 ✔ 180 000 00
Drawings B2 ✔20 176 00
Land and buildings B3 ✔106 000 00
Equipment B4 ✔46 237 00
Trading stock B5 ✔47 048 00
Debtors control B6 ✔5 027 20
Bank B7 ✔19 544 80
Creditors control B8 ✔15 766 00
Nominal accounts
Sales N1 ✔242 990 00
Cost of sales N2 ✔124 310 00
Rent income N3 ✔19 872 00
Wages N4 ✔12 281 00
Stationery N5 ✔5 294 00
Water and electricity N6 ✔2 353 00
Packing material N7 ✔1 665 00
Salaries N8 ✔63 978 00
Telephone N9 ✔4 714 00
458 628 00 458 628 00

(17)
Activity 2: Revise ledgers
Middle and Higher order
General Ledger of Olivier Traders
Balance Sheet accounts
Dr Equipment b4 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Mar 01 Balance b/d ✔ 54 306 00

18 Bank CPJ3 ✔✔ 21 224 00


31 Creditors control CJ3 ✔ 2 560 00

78 090 00

Dr Trading Stock b5 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017 2017
Mar 01 Balance✔ b/d 1 052 50 Mar 31 Cost of sales✔✔ DJ3 622 50
31 Bank✔✔ CPJ3 7 722 50 Cost of sales✔✔ CRJ3 5 307 00
Creditors control✔✔ CJ3 4 320 00 Balance✔ c/d 7 165 50
13 095 00 13 095 00
2017
Apr 01 Balance✔ b/d 7 165 50

Dr Debtors Control b6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017 2017
Mar 01 Balance✔ b/d 377 00 Mar 31 Bank✔✔ CRJ3 250 00
31 Sales✔✔ DJ3 830 00 Balance✔ c/d 957 00
1 207 00 1 207 00
2017
Apr 01 Balance✔ b/d 957 00

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Dr Bank b7 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017 2017
Mar 01 Balance✔ b/d 4 087 50 Mar 31 Total payments✔✔ CPJ6 43 276 00
31 Total receipts✔✔ CRJ6 77 406 00 Balance✔ c/d 38 217 50
81 493 50 81 493 50
2017
Apr 01 Balance✔ b/d 38 217 50

Dr Creditors Control B8 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017 2017
Mar 31 Bank✔✔ CPJ3 4 620 00 Mar 01 Balance✔ b/d 1 060 10
Balance✔ c/d 3 683 00 31 Sundry purchases✔✔ CJ3 7 242 90
8 303 00 8 303 00
2017
Apr 01 Balance✔ b/d 3 683 00

Nominal accounts
Dr Sales n1 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Mar 01 Balance✔ b/d 89 700 00
31 Bank✔✔ CRJ3 7 076 00
Debtors control✔✔ DJ3 830 00
✔ 97 606 00

Dr Cost of Sales n2 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Mar 01 Balance c/d ✔ 67 275 00

31 Trading stock CRJ3 ✔✔ 5 307 00

Trading stock DJ3 ✔✔ 622 50

✔ 73 204 50

Dr Stationery n3 Cr
Date Details Fol. Amount Date Details Fol. Amount
2017
Mar 01 Balance b/d ✔ 633 00

16 Bank CPJ6 ✔✔ 411 00

31 Bank CPJ6 ✔✔ 123 00

Creditors control CJ6 ✔✔ 362 90

✔ 1 529 90

(56)
Calculations of missing amounts:
1. Calculating the profit mark-up, using the balance figures:
(R89 700 – R67 275)
Profit % = ​ _______________     ​× 100 = 33⅓
67 275
2. CRJ: Cost of sales
100  ​ 
Cost of sales = ​ _____ × R7 076 = R5 307
133⅓
3. DJ: Cost of sales
​  100  ​ 
Cost of sales = _____ × R830 = R622,50
133⅓

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4. CJ: Creditors control
R4 320 + R2 560 + R362,90 = R7 242,90
5. Balance: Debtors control
R212 + R165 = R377
6. Balance: Creditors control
R420 + R365,70 + R274,40 = R1 060,10

Activity 3: Revise Debtors and Creditors Ledgers


Higher order
Debtors Ledger of Lindsay Suppliers
Wihan Traders D1
Date Details/Document no. Fol. Debit (+) Credit (–) Balance
2016
Dec 01 Account rendered✔ 992 70
05 Invoice no. 104✔✔ DJ 396 32 1 389 02
09 Receipt no. 461✔✔ CRJ 992 70 396 32

Creditors Ledger of Lindsay Suppliers


Veejay and Singh C1
Date Details/Document no. Fol. Debit (–) Credit (+) Balance
2016
Dec 01 Account rendered✔ 885 40
10 Invoice no. 82✔✔ CJ 5 250 00 6 135 40
15 Invoice no. 85✔✔ CJ 1 667 40 7 802 80
30 Cheque no. T45✔✔ CPJ 7 802 80 0 00

(12)
Activity 4: Revise accounting equations
Middle and Higher order

GENERAL LEDGER
No. Source Journal Account Account A OE L
document debited credited
4.1 Duplicate CRJ✔ Bank✔ Capital✔ ✔+13 800 ✔+13 800
receipt ✔
4.2 Cheque CPJ✔ Trading stock ✔ Bank✔ ✔✔± R1 450
counterfoil✔
4.3 Cash register CRJ✔ Bank✔ Sales✔ ✔+543,75 ✔+543,75
roll✔ Cost of sales✔ Trading stock✔ ✔—435 ✔ —435
4.4 Original invoice CJ✔ Trading stock✔ Creditors ✔+7 264 ✔+7 264
✔ control✔
4.5 Duplicate receipt CRJ✔ Bank✔ Debtors ✔✔± 306
✔ control✔
4.6 Cheque CPJ✔ Insurance✔ Bank✔ ✔—245 ✔—245
counterfoil ✔ Drawings✔ Bank✔ ✔—105 ✔—105

4.7 Duplicate invoice DJ✔ Debtors Sales✔ ✔+375 ✔+375


✔ control✔
Cost of sales✔ Trading stock✔ ✔—250 ✔—250

4.8 Cheque CPJ✔ Creditors Bank✔ ✔—980 ✔—980


counterfoil ✔ control✔
4.9 Cheque CPJ✔ Repairs✔ Bank✔ ✔—260 ✔—260
counterfoil✔
4.10 Original invoice ✔ CJ✔ Stationery✔ Creditors ✔—213 ✔+213
control✔
(72)

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Topic 18: Business plan
Activity 5: Revise the business plan
5.1 Define a business plan. (5) Lower order
A business plan is a formal, ✔ written plan ✔ that gives a detailed
description of how a business is going to achieve its goals. ✔ It
includes information about the business’s finances, ✔ and shows
projections of how much money the business aims to make. ✔
5.2 What are projections, and why are they so important in a
business plan? (3) Lower order
A projection is an estimate of what is going to happen ✔ based on
how things are happening in the present. ✔ They are important
because investors will not invest capital in a business that projects
that it won’t make very much money. ✔
5.3 Explain why it is so important to prepare a business plan
properly. (4) Middle order
Business plans represent everything that your business is about.
✔ So, it is important to prepare a business plan properly. ✔ An
incomplete, badly written or sloppy business plan will tell readers
that your business is badly run ✔ and that you do not care about
being meticulous. ✔
5.4 Name the components of a business plan. (5) Lower order
• Information about the business: what it does, who owns it
and what its goals are ✔
• Production plan ✔
• Marketing plan ✔
• Management plan ✔
• Financial plan ✔
5.5 Make brief summary notes of what format a business plan
should follow. (10) Middle order
A business plan should follow this format:
• Front cover ✔
• Table of contents ✔
• Description of the goods or services offered by the business ✔
• Goals of the business ✔
• Who owns the business ✔
• The production plan ✔
• The marketing plan ✔
• The management plan ✔
• SWOT analysis and conclusion ✔
• Financial plan ✔
5.6 List all the information about the description of the goods or
services offered by the business that the business plan should
contain. (6) Lower order
In this section of the business plan, you:
• Explain the nature of the business ✔
• State what goods and services the business offers ✔
• Say what you think the demands for your goods and services
is or will be ✔

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• Include a description of the location of the business, for
example: close to popular tourist whale-watching spots, in a
popular coastal holiday town, on the main road where there is
a lot of tourist traffic ✔
• Describe briefly what makes your business’s goods unique ✔
• Say whether you are pricing your goods and services as luxury
or budget goods to give an idea of where they fit into the
market. ✔
5.7 Define a business’s vision statement. (4) Lower order
A business’s vision statement is a statement of what the business
aims to achieve ✔ in the medium term or the long term. ✔ The
vision statement helps managers to choose the best actions to take
✔ to reach the business’s goals. ✔
5.8 Why do you think a vision statement is an important part of a
business plan? (2) Middle order
It shows investors ✔ that you have well-developed medium-term
and long-term goals. ✔
5.9 What should the production plan of a business plan specify?
(4) Lower order
The production plan needs to specify what kind of production
process the business uses. ✔ It also needs to specify the following:
• Where the business gets its raw materials from ✔
• What equipment and machinery it needs to manufacture
its goods ✔
• What equipment and machinery the business already has and
what it still needs to get for manufacturing to be possible. ✔
5.10 Give two reasons why a production plan’s information is
important to a business plan. (2) Lower order
It is important because preparing it helps you to make sure
that your production process is properly planned. ✔ Also,
production equipment is a large part of a business’s start-up
costs, ✔so if you are using the business plan to apply for start-
up capital, potential investors want to see that you have spent
lots of time planning and organising the production function.
✔ (Any 2)
5.11 Define a management plan. (3) Lower order
The management plan tells potential investors a lot about a
business. ✔ By looking at the management plan, potential
investors can see whether the managers of the business have
enough skills and experience ✔ to make the business succeed. ✔
5.12 Explain why you need to include a SWOT analysis in a
business plan. (10) Middle order
A SWOT analysis maps out the things that could affect the
success of a business. ✔ It allows you to identify areas you need
to work on ✔ (threats and weaknesses) ✔ and areas you need to
emphasise ✔ (strengths and opportunities). ✔ If there are more
strengths and opportunities than threats and weaknesses, ✔ the
business has a good chance of succeeding. ✔

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Investors want to know that your business plan is showing
them the full picture. ✔ They want to know that you are skilled
enough to be able to identify threats and to acknowledge
weaknesses. ✔ They also want to know that you are skilled
enough to exploit business opportunities and recognise
strengths. ✔ So, you need to include a SWOT analysis of your
business in the business plan.
5.13 Why is the conclusion to the SWOT analysis important? (4)
Middle order
The conclusion is where you show that there are more
opportunities and strengths ✔ than threats and weaknesses
about your business idea. ✔ You also need to show that you
have come up with strategies to overcome the threats and
weaknesses ✔ that could affect your business negatively. ✔
5.14 List the four pieces of information that are important to the
financial plan. (4) Lower order
Information about the following:
• Fixed and variable costs ✔
• Break-even points ✔
• Mark-ups on sales ✔
• The profit percentage. ✔
5.15 Why is the financial plan one of the most important parts of
the business plan? (3) Lower order
No business will work if it is not financially feasible. ✔ The
financial plan is the business owner’s opportunity to show that
the business’s finances have been planned thoroughly ✔ and
that the business is financially viable. ✔

TOTAL MARKS: 407

Formal assessment
For information on how to assess learner’s assignments, controlled
tests, examinations, case studies and projects, please see Section 3
of this Teacher’s Guide.

Note: Actual end-of-year examination paper and memo can be found


in the Resources section at the end of this guide.

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GRADE 9 END-OF-YEAR EXAMINATION TERM 4
PRACTICE PAPER: MEMO
TIME: 2 HOURS TOTAL: 200 MARKS

SECTION A Learner’s Book pages 258—268


QUESTION 1
1.1 A
1.2 D
1.3 B
1.4 C
1.5 D
1.6 B
1.7 A
1.8 B
1.9 B
1.10 D (10 × 2 = 20)

QUESTION 2
2.1 C
2.2 M
2.3 F
2.4 B
2.5 G
2.6 E
2.7 I
2.8 L
2.9 D
2.10 K (10 × 2 = 20)

QUESTION 3
Selling Price % profit on cost Cost
(% mark-up)
R150 50% R100✔✔
R500 25% R400✔✔
R800 60%✔✔ R500
R385✔✔ 10% R350
R60 20%✔✔ R50

(5 × 2 = 10)

QUESTION 4
4.1 True
4.2 False
4.3 False
4.4 True
4.5 False (5 × 2 = 10)

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SECTION B
QUESTION 5
Characteristics Planned economy Market economy Mixed economy
5.1 Government makes all Land, property and Government, people
the decisions✔✔ businesses owned by and businesses own
private people ✔✔ the land and natural
resources ✔✔
5.2 Government owns Entrepreneurs decide Capital comes from
the land and natural what goods and banks, shareholders
resources ✔✔ services to produce and the government
✔✔ ✔✔

(12)

QUESTION 6
Role of government:
• Collects taxes from households and businesses
• Uses money to provide goods and services for households and
businesses to buy
• Employs households and pays their wages and salaries
• Employs businesses as service providers, contractors, etc.
 (any 3 × 1 = 3)

Role of businesses:
• They are manufacturers
• Provide goods and services to households
• Receive money from households for goods and services
• Pay wages and salaries to households for labour
• Pay taxes to the government on profits earned
• Receive goods and services from the government
 (any 3 × 1 = 3)

Role of the foreign sector:


• Interaction occurs between the businesses of the foreign sector and
the South African economic cycle
• South Africa pays money for imported goods and services
• South Africa receives money for goods and services exported to
other foreign countries
• South Africa invests money abroad
• The foreign sector invests money in South Africa
 (any 3 × 1 = 3)

Role of households:
• Households include consumers of goods and services
• Spend money on goods and services
• Pay taxes to the government on the income they earn (PAYE)
• Receive goods and services from the government, e.g. healthcare,
education, roads
• Earn salaries and wages in exchange for labour
 (any 3 × 1 = 3)

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QUESTION 7
7.1 Demand is the quantity of a good or service that consumers want
to buy when the good or service is at a specific price. ✔✔

7.2 Supply is how much of a good or service is available for consumers


to buy. ✔✔

7.3 and 7.4

R1000
S
R900

R800 Supply curve


(S)
Price per pair of jeans

R700
üü
R600 Demand curve
(D)
R500

R400

R300
D
R200

R100

50 100 150 200 250 300

Quantity

Allocate 4 marks to the graph: 2 marks per curve

7.5 Market equilibrium price ✔✔

7.6 Demand will decrease ✔✔

7.7 Demand will increase ✔✔


[16]

LESSON BY LESSON  TERM 4 261

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SECTION C
QUESTION 8
No. Source Journal Assets Equity Liabilities
document Effect Reason Effect Reason Effect Reason
1. Original CJ ✔ ✔—4 680 Stationery ✔+4 680 Creditors
invoice ✔ — expense increase ✔

2. Cheque CPJ ✔ ✔—2 500 Cash ✔—2 500 Drawings✔
counterfoil decreases
✔ ✔
3. Duplicate DJ✔ ✔+5 000 Debtors ✔+1 000 Profit ✔
invoice ✔ increase✔
4. ✔—4 000 Trading
stock
decreases✔
5. Cheque CPJ✔ ✔+350 Cash
counterfoil (Cash float)
✔ increases ✔
✔—350 Cash
decreases

6. Duplicate CRJ ✔ ✔+2 800 Cash
receipt ✔ increases✔
✔—2 800 Debtors
decrease✔
(32)
QUESTION 9
General Ledger of Sinothando Dealers
Dr Debtors Control Cr
Date Details Fol. Amount Date Details Fol. Amount
2014 2014
Apr 01 Balance b/d ✔ 14 700 00 Apr 30 Bank ✔ CRJ3 ✔✔ 4 065 00
30 Sales ✔ DJ3 ✔ 3 500 00 Balance c/d ✔✔ 14 135 00
18 200 00 18 200 00
2014
May 01 Balance b/d 14 135✔ 00
(9)

Dr Trading Stock Cr
Date Details Fol. Amount Date Details Fol. Amount
2014 2014
Apr 01 Balance b/d ✔ 2 600 00 Apr 30 Cost of sales ✔ CRJ3 ✔ 8 600 00
30 Bank ✔ CPJ3 ✔ 8 400 00 Cost of sales ✔ DJ3 ✔✔ 2 800 00
Creditors control ✔ CJ3 ✔ 1 700 00
(10)
Dr Creditors Control Cr
Date Details Fol. Amount Date Details Fol. Amount
2014 2014
Apr 30 Bank ✔ CPJ3 ✔✔ 1 705 00 Apr 01 Balance b/d ✔ 920 00
30 Sundry purchases ✔ CJ3 ✔✔ 5 010 00

✔ DATES  (7)
✔ FOLIO NUMBERS
[28]

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SECTION D
QUESTION 10
10.1 Performance of daily tasks such as answering phone calls
and emails; doing clerical work; paying accounts; handling,
recording and filing information; planning; scheduling,
record-keeping; organising; being thorough and meticulous
and paying attention to detail; being good at setting up
efficient systems; being able to liaise with people from all of
the departments in the business; managing the administration
budget  (any 1 × 2 = 2)

10.2 Acquiring raw materials at the best possible price


Ensuring that the raw materials are ordered on time so that
production is not held up ✔✔
Ensuring that purchases stay within budget ✔✔
Keeping accurate records of purchases ✔✔
Ensuring there is always enough stock of raw materials, but
not too much. ✔✔ (any 3 × 2 = 6)

10.3 A strong production function ensures that the production


process is efficient ✔and that outputs can cover the production
costs. ✔ (2)

10.4 It manages all aspects of the business’s finances. ✔ The main


objective of businesses is to make a profit. A business cannot
make a profit if money is mismanaged. ✔ (2)

10.5 The main purpose of the public relations function involves


giving businesses positive publicity and exposing them to as
many potential customers as possible in as positive a way as
possible to encourage sales. ✔ It is about creating a good image
of a business in the eyes of the public. ✔ (2)

10.6 The human resources function manages the people in a


business. ✔✔ It looks after the welfare of the employees and
ensures that the business has the right number of employees,
with the right skills, to operate productively and profitably.
✔✔ It deals with recruiting or hiring staff; ✔✔ defining job
descriptions; administering staff leave; ✔✔ retaining staff
so that they do not go and work for the competition; ✔✔
dismissing and retrenching staff if necessary in a way that
complies with labour legislation; ✔✔ keeping staff happy,
fulfilled and motivated so that they perform well; training staff
and developing their skills; ✔✔ ensuring that the workplace is
healthy and safe, in compliance with occupational health and
safety laws; ✔✔ working with trade unions to maintain good
labour relations and resolve disputes; ✔✔ keeping the business
compliant with labour legislation. ✔✔ (any 3 × 2 = 6)
[20]

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QUESTION 11
11.1 A formal, written plan that gives a detailed description of how a
business is going to achieve its goals. ✔✔

11.2 The overseas tourists will stay with South Africans, eat their
food and experience Cape hospitality. ✔✔

11.3 Form of ownership: Sibu is working by himself, so he cannot


establish a partnership. A partnership consists of 2–20 people.
His choices are either a sole trader or a close corporation. ✔✔

Location: He can run his business from his home, but he


should make sure that his target market can reach him to make
reservations. He must be accessible to his tourists. ✔✔

Competition: There are 30 other competitors. He must know


what his competitors are doing and what their price per tour is.
He must ensure that his tour price is competitive. ✔✔

11.4 Overseas tourist magazines, ✔✔ Internet with a personal


website ✔✔

11.5 Profit = Income ✔ – expenses ✔

11.6 Petrol, unforeseen expenses, Vuyo’s salary.  (any 2 × 2 = 4)


[20]

TOTAL: 200 MARKS

264 LESSON BY LESSON  TERM 4

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3. Formal Assessment
1. A
 ssessment in Economic and
Management Sciences in Grade 9  266
2. Programme of Assessment  268
3. Formal Assessment Tasks  270
 ormal Assessment Task 1:
F
Assignment 270
 ormal Assessment Task 2:
F
Data response 276
 ormal Assessment Task 3:
F
Project 284
4. Tests and Examinations: Guidance 289
5. Recording and reporting  296

265

EMS 9 TG (ENG).indb 265 6/5/13 6:23:18 PM


1. Assessment in Economic and Management
Sciences in Grade 9

Assessment in Economic and Management Sciences focuses on the


knowledge, skills and values inherent in the activities of production,
consumption, exchange and making meaningful and informed
financial decisions in economic and social environments.

Economic and Management Sciences covers valuable skills such as


economic, entrepreneurship, financial and managerial skills that
prepare learners for success in different economic and business
environments. Teachers must consider all these skills when planning
teaching, learning and assessment activities.

Tasks should cover the content and concepts according to the


Annual Teaching Plan. They should include a variety of activities and
strategies that assess knowledge and skills. These assessment strategies
may form the focus of specific tasks or they may be used together as
part of a task.

In Economic and Management Sciences, the following forms of


assessment are preferred, although they are not the only ones that you
may use:
• projects
• tests (both class tests and controlled tests)
• data responses
• examinations
• oral presentations
• case studies
• assignments
• posters.
Assessment in Grade 9 is made up of:
• informal or daily assessment
• formal assessment.
In Study & Master Economic and Management Sciences Grade 9:
• Informal assessment advice is given as part of the lesson guidance
in the Lesson-by-lesson section (Section 2) of this Teacher’s Guide.
• Detailed guidance and assessment tools for formal assessment are
provided in this section.

266 FORMAL ASSESSMENT

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Summary of formal assessments expected in Grade 9
Grade Formal assessments SBA (40%) Final examination Total
(60%)
• 2 formal
assessments
• 1 formal assessment
– project
Refer to Programme Refer to Programme
9 • 2 tests 100
of Assessment of Assessment
• Mid-year
examination
• End-of-year
examination

FORMAL ASSESSMENT 267

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2. Programme of Assessment

The Programme of Assessment provided in Study & Master Economic


and Management Sciences Grade 9 is in line with the Curriculum and
Assessment Policy Statement (CAPS) for Economic and Management
Sciences and thus spreads out the formal assessment tasks throughout
the year. It is made up of assignments, controlled tests, case studies,
data responses, projects and exams. This is reflected in the table below.
Term Week Type of Tool(s) of Content and topic focus Learner’s Book Total Contribution
formal assessment of assessment and/or Teacher’s number of to year mark
assessment Guide page marks of
reference task
1 5 Assignment Rubric/ The economy Teacher’s Guide 50 150
memo • Topic 3: Economic pp. 270—275
systems
1 10 Controlled Memo Financial literacy Teacher’s Guide 100
Test 1 • Topic 2: Cash Receipts pp. 82—90
(60 minutes) Journal and Cash
Payments Journal (sole
trader)
• Topic 4: General Ledger
and Trial Balance (sole
trader)
The economy
• Topic 3: Economic
systems
• Topic 5: Circular flow
2 7 Data Memo The economy Teacher’s Guide 50 150
response • Topic 8: Price theory pp. 270—274
2 10 Mid-year Memo Financial literacy Learner’s Book 100
exam • Topic 2: Cash Receipts pp. 110—114
(60 minutes) Journal and Cash Teacher’s Guide
Payments Journal (sole pp. 123—125
trader)
• Topic 4: General Ledger
and Trial Balance (sole
trader)
• Topic 7: Credit
transactions: Debtors (1)
The economy
• Topic 3: Economic
systems
• Topic 5: Circular flow
• Topic 8: Price theory
Entrepreneurship
• Topic 9: Sectors of the
economy
3 5 Project Rubric/ The economy Teacher’s Guide 50 150
memo • Topic 11: Trade unions pp. 284—288
3 10 Controlled Memo The economy Teacher’s Guide 100
Test 2 • Topic 11: Trade unions pp. 192—198
(60 minutes) Financial literacy
• Topic 12: Credit
transactions:
Debtors (2)
• Topic 13: Credit
transactions:
Creditors (1)
• Topic 15: Credit
transactions:
Creditors (2)
Entrepreneurship
• Topic 14: Functions of a
business

268 FORMAL ASSESSMENT

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Term Week Type of Tool(s) of Content and topic focus Learner’s Book Total Contribution
formal assessment of assessment and/or Teacher’s number of to year mark
assessment Guide page marks of
reference task
4 10 End-of-year Memo Financial literacy Learner’s Book 200 200
exam • Topic 2: Cash Receipts pp. 258—268
(120 Journal and Cash Teacher’s Guide
minutes) Payments Journal (sole pp. 259—264 and
trader) 302—317
• Topic 4: General Ledger
and Trial Balance (sole
trader)
• Topic 7: Credit
transactions: Debtors (1)
• Topic 12: Credit
transactions:
Debtors (2)
• Topic 13: Credit
transactions:
Creditors (1)
• Topic 15: Credit
transactions:
Creditors (2)
• Topic 17: Transactions:
Cash and credit
The economy
• Topic 3: Economic
systems
• Topic 5: Circular flow
• Topic 8: Price theory
• Topic 11: Trade unions
Entrepreneurship
• Topic 9: Sectors of the
economy
• Topic 14: Functions of a
business
• Topic 18: Business plan

SBA Examination
Term 1: 150
Term 2: 150 Written examination: 200
Term 3: 150
Convert to 40% Convert to 60%
Year mark: SBA + end-of-year examination = 100%

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3. Formal Assessment Tasks

When scheduling a task, the resource needs of a task must be


considered. For example, you may want to schedule a task on the
National Budget at the time when the Minister of Finance makes
his presentation. Alternatively, you may want to link tasks to other
significant or special days and events. You should allow time for
research, if necessary – perhaps during holidays or long weekends – so
that all learners can go to a library or interview people, or do whatever
the task requires.

Formal Assessment Task 1


Term 1, to be completed by Week 5 Marks: 50

Type of task: Assignment

Economic and Management Sciences topic:


The economy
Topic 3: Economic systems

Resources
Curriculum and Assessment Policy Statement
Photocopies of (CAPS) content
assessment rubric
• The three major economic systems:
– planned economy
– market economy
– mixed economy
• Origin of each economic system
• Advantages and disadvantages of each economic system
• Characteristics of each economic system
• The global economy

Background
In this task, learners are required to:
• Write an essay in which they discuss, compare and contrast
the three main economic systems: planned economies, market
economies and mixed economies.
• Talk about what the three types of economic systems are; how
they are similar; how they are different; their advantages and their
disadvantages.
• Do their own research and write one paragraph in which they
briefly describe an example of each type of economy.

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Outlining the task with the learners
• Allow time in Term 1, immediately after you have completed
Topic 3 in Week 5, to talk about this Formal Assessment Task
with the learners.
• Read through the task with them and answer any queries.
• Allow learners one week to complete their responses.
• Remind the learners that their paragraph of research must show
that they have understood the content of this topic.
• Draw the learners’ attention to how the task will be assessed.

Assessing the task


1. The main points of the essay have been outlined below in the
memorandum, including mark allocations.
2. Learners’ essays will vary, but they should contain the most
important information and have an introduction, body
paragraphs and conclusion.
3. Ensure that learners have understood the content and have
applied it creatively, particularly in their own paragraph of
research.
4. Use the rubric below to assess the learners’ assignments.
5. Record your assessments in the Formal Assessment Task 1 column
on the Record sheet for Formal Assessment Tasks 1, 2 and 3
(page 297).

Rubric
Use the following rubric to assess learners’ assignments.

Rating code Description of competence Percentage


7 Outstanding achievement: 80—100
the essay covered all of the
required areas fully, analysed
each economic system,
gave good examples and
descriptions of each economic
system, was submitted on
time and was well written and
well presented
6 Meritorious achievement: 70—79
the essay covered all of
the required areas with
most of the detail required,
gave examples of each of
the economic systems,
was submitted on time and
was well written and well
presented
5 Substantial achievement: the 60—69
essay covered most of the
required areas, gave examples
of some of the economic
systems and was submitted
on time

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Rating code Description of competence Percentage
4 Adequate achievement: the 50—59
essay covered few of the
economic systems, gave
examples of the economic
systems, was submitted on
time and contained a few
writing and presentation
errors
3 Moderate achievement: the 40—49
essay covered some of the
economic systems, gave
no examples of economic
systems, and contained
writing and presentation
errors
2 Elementary achievement: 30—39
the essay covered hardly
any required areas, gave no
examples and contained many
writing and presentation
areas
1 Not achieved: the essay was 0—29
not submitted at all or was
submitted late

Memorandum
Learners must talk about:
1. What the three types of economic systems are (4)
2. How they are similar (10)
3. How they are different (10)
4. Their advantages (10)
5. Their disadvantages. (10)
They must also do their own research and write one paragraph in
which they briefly describe an example of each type of economy. (6)

An economic system is a system that a country chooses to allocate its


resources and distribute its goods and resources. ✔ There are three
main economic systems: planned economies, market economies and
mixed economies. ✔✔✔

How they are similar: The aim of an economic system is to solve the
economic problem. ✔✔ The economic problem is how to meet the
endless wants and needs of people ✔✔ with limited resources. ✔✔
Someone has to decide what to produce and how to produce it, ✔
how much to charge for the product or service ✔ and how to share
it out among the people of the country (distribution). ✔ Different
countries have come up with different ways of doing this. These ways
are economic systems. ✔

A planned economy is an economic system in which the government


or workers’ councils make all the decisions about the production
and consumption of goods and services, based on their idea of what

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is good for all the people of that country. ✔ The government owns
the land and natural resources, the factories and the farms. ✔ The
government decides what should be produced and how much it
should be sold for. ✔ The government also decides who gets how
much of what is produced. ✔ So, there is no competition with
businesses offering goods and services at different prices. ✔ This
system is also called a command economy ✔ or directed economy.
✔ Examples of planned economies are Burma, North Korea and the
former Soviet Union. ✔✔✔

The advantages of planned economies are as follows: They can be very


stable because they are closed systems; ✔ they can stimulate growth
in industry because the government doesn’t have to wait for capital
to accumulate before it makes investments in heavy industry, rather
the government can direct economic resources to specific areas; ✔
the government can direct economic resources to areas where they are
most needed; ✔ they look after the welfare of all of the government’s
citizens; ✔ and they are more focused on citizens’ welfare than on
profit and growth. ✔ The disadvantages are: they can limit economic
growth and innovation as there is no entrepreneurship; ✔ there is no
freedom of choice for consumers; ✔ they are inflexible systems that
cannot adapt to change quickly; ✔ there is no incentive for people to
do their jobs well; ✔ and it is difficult to motivate workers to excel. ✔

A market economy is an unplanned economy in which land, property


and businesses are owned by private people, not the government.
✔ The aim of business in a market economy is to make a profit. ✔
The government’s purpose is to allow business to make a profit. ✔
Entrepreneurs decide what goods and services to produce and how
much to charge for them based on what they think people want and
are willing to pay. ✔ Businesses and people borrow money from banks
and investors. ✔ Workers can choose what kind of work they do and
who they want to work for. ✔ So, in a market economy, consumers,
the government and businesses spend money on goods and services.
✔ Workers and businesses make money from producing goods and
services. ✔ The government makes money from taxes and spends
money on public services. ✔

The advantages of market economies are as follows: they are very


flexible and can adapt quickly to change because individuals don’t
have to wait for the government to tell them how to adapt; ✔
individuals can choose what they want to produce and how much
they want to produce goods for; ✔ consumers have a wide range of
products and services to choose from; ✔ they reward innovation and
technological development; ✔ they are good for economic growth
because capital flows naturally to places where it gives the highest
returns; ✔ and there is economic freedom, so if people work hard
they are rewarded and can improve their lives. ✔ The disadvantages
are: there are large differences between the wealth of citizens – some

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get rich while others stay poor; ✔ they focus on profit rather than
on the welfare of citizens; ✔ the government controls the economy
as little as possible, so big businesses can have too much control; ✔
and they make products and services available to consumers that may
harm consumers. ✔

A mixed economy is a mixture of private and government control of


the economy. ✔ The government, as well as people and businesses,
owns the land and natural resources. ✔ In a mixed economy, capital
comes from banks, shareholders and the government through spending
of taxes. ✔ Entrepreneurs decide what to produce. ✔ The government
spends taxes on education, housing and clean water, for example. ✔ It
also passes laws to control certain economic activity. ✔ For example,
the South African government has passed laws that make businesses
hire people who were left out of the economy once controlled by the
apartheid government. This is called affirmative action. Most countries
in the world today have a mixed economy with different degrees of
government control. ✔✔ South Africa is a mixed economy. ✔

The advantages of mixed economies are as follows: they combine


government and private businesses for good economic growth; ✔ the
government works to encourage the economy to grow in a balanced
way so incomes are more equal than in market economies; ✔ they
encourage private businesses to make contributions to citizens’
welfare; ✔ and they promote competition but protect citizens too.

✔ The disadvantages are: economic growth can be limited because


the government allocates lots of resources to citizens’ welfare; ✔ and
heavy government involvement in the economy through regulation
makes them bureaucratic and open to corruption. ✔

Learners add their own paragraph of research here, then conclude


the essay. (6)

Formal Assessment Task 1


Formal Assessment Task 1 guideline follows. This must be
photocopied for learners.

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Formal Assessment Task 1
Assignment Time: 60 minutes Marks: 50

Economic systems
In this assignment, you are required to write an essay in which you
discuss, compare and contrast the three main economic systems:
planned economies, market economies and mixed economies.
Talk about:
1. What the three types of economic systems are  (4)
2. How they are similar  (10)
3. How they are different  (10)
4. Their advantages  (10)
5. Their disadvantages.  (10)

Also do your own research and write one paragraph in which you
briefly describe an example of each type of economy. (6)

Your teacher will use the following rubric to assess your assignment.

Rubric
Rating code Description of competence Percentage
7 Outstanding achievement: the group worked well together 80—100
to formulate a questionnaire, asked the questions
effectively and respectfully and each member of the group
submitted a comprehensive, well-written report in time.
6 Meritorious achievement: the group worked well together 70—79
to formulate a good questionnaire, asked questions
respectfully, and each group member submitted a well-
written report on time.
5 Substantial achievement: the group mostly worked 60—69
well together to formulate a good questionnaire, asked
questions respectfully, and most group members submitted
well-written reports on time.
4 Adequate achievement: the group worked together to formulate 50—59
an adequate questionnaire, asked questions respectfully,
and some group members submitted reports on time.
3 Moderate achievement: the group struggled to work 40—49
together, formulated a questionnaire that was not
comprehensive, asked questions respectfully, and some
group members submitted reports on time.
2 Elementary achievement: the group could not work together 30—39
to formulate a comprehensive questionnaire. They relied on
the shop steward to volunteer information and take the lead,
and few group members submitted reports on time.
1 Not achieved: the group did not function, did not formulate 0—29
a questionnaire or arrange a shop steward interview, and no
reports were submitted.

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Formal Assessment Task 2
Term 2, to be completed by Week 7 Marks: 50

Type of task: Data response

Economic and Management Sciences topic:


The economy
Topic 8: Price theory

Resources
Curriculum and Assessment Policy Statement
Photocopies of (CAPS) content
assessment rubric
• Law of demand and a graphical illustration of the demand curve
• Law of supply and graphical illustration of the supply curve
• Equilibrium price and quantity
• Change in quantity demanded
• Change in quantity supplied
• Increase and decrease in demand
• Increase and decrease in supply
• Graphical illustration of the change in demand and the change
in supply

Background
In this task, learners are required to:
• Use the information given to answer relevant questions.
• Show an understanding and retention of the relevant theory.
• Use a real-life case study/scenario/information to apply their
knowledge of the topic.

Outlining the task with the learners


• Allow time in Term 2, immediately after you have completed
Lessons 6 –7 of Topic 8, to talk about this Formal Assessment Task
with the learners.
• Read through the task with them and answer any queries.
• Allow learners one week to complete their responses.
• Remind learners that they must apply the content that they have
learnt when they answer the questions.
• Draw the learners’ attention to how the task will be assessed.

Assessing the task


1. The answers to the questions are below, including the mark
allocation per question.
2. When you mark learners’ answers, ensure that they have
understood the content and address any problems in your
feedback to them.

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3. The task and its memorandum are below. Use the memorandum
to assess learners’ responses.
4. Record your assessments in the Formal Assessment Task 2 column
on the Record sheet for Formal Assessment Tasks 1, 2 and 3
(page 297).

Rubric

Rating code Description of competence Percentage


7 Outstanding achievement 80—100
6 Meritorious achievement 70—79
5 Substantial achievement 60—69
4 Adequate achievement 50—59
3 Moderate achievement 40—49
2 Elementary achievement 30—39
1 Not achieved 0—29

Learners use the following information to answer the questions


(memorandum included below).

Fifteen years ago, South Africans were not familiar with the wide range of coffee-drinking
options that people in the USA and Europe have been used to for many years. American
coffee-shop chain Starbucks was founded in 1971. Today, there are over 20 000 Starbucks
shops in countries of the world. Since many international companies did not invest in South
Africa during apartheid, South Africans were not exposed to the Starbucks coffee-drinking
culture.

Today, with exposure in South Africa to cultures and businesses from all over the world, a
uniquely South African style of coffee shop is becoming more and more popular. An example
of such a coffee shop is Vida e Caffè, which has 51 outlets in South Africa. These outlets serve
many different styles of coffee, such as lattes, cappuccinos, frozen coffees and espressos.
They are trendy and fun, and they make a lot of money.

Suppose that in 1980s, the suburb of Cambridge in East London had one coffee shop called
Theo’s. Theo’s only served normal filter coffee. Theo’s coffee sales were doing well, so he
decided to put up his prices. He also tried a December special, where he offered coffee at
a lower price. When he charged R2,00 for a coffee for his special December offer, he would
sell 300 coffees per month. At his normal price of R2,50 per coffee, he sold 200 coffees in a
month. And when he put up his price to R3,00 a coffee, he sold 100 coffees a month.

1. Draw the demand curve showing the relationship between


Theo’s price and quantity demanded. (10)
Learners’ graphs look like this. Award marks as follows:
Two marks for the correct placement of and units on the x-axis
Two marks for the correct placement of and units on the y-axis
Two marks for the correct demand curve
Two marks for P1 correctly shown
Two marks for P2 correctly shown.

FORMAL ASSESSMENT 277

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R3,00
P2

Price
R2,50

R2,00
P1

100 200 300


Quantity

Fast forward to 2000. Theo’s now has so much experience in the


coffee shop trade that he decided to buy a franchise of the popular
New York-style coffee shop chain, called Perc Up. He is still in the
same East London suburb, but East Londoners have got to like the
American style of drinking a wide variety of quality coffees in an
upbeat location.

2. Analyse what has influenced the demand for coffee in


Theo’s town.  (2)
A change in consumers’ preference. ✔ Coffee shops have become
more fashionable and more people want to be seen in them. ✔
3. Describe four other factors that can influence demand,
with an example of each.  (8)
Learners list any three of the following:
• New technology, ✔ such as a smartphone that has a new
function, can mean that the demand for a new product
increases. ✔
• Changes in a country’s population ✔ can affect the demand
for goods and services. For example, a country that has a
younger population will have a high demand for products
such as cellphones, tablets and trendy clothes. But a country
that has an older population, such as Japan, will have more of
a demand for medical services and products that older people
prefer, such as more conservative, durable clothing.✔
• Price ✔ can affect demand. You have seen that when the
price of a good or service is low, the quantity demanded will
be high, and that when the price of a good or service is high,
demand will be low. ✔
• Income levels ✔ also affect demand. When incomes are higher,
there is more demand for goods and services. When incomes
are lower, there is less demand for goods and services. ✔

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• Competition ✔ affects demand too. For example, if one
cellphone company offers the newest smartphone for R300
per month on contract, and another cellphone provider starts
competing by offering the same smartphone for R250 per
month, demand for the smartphone will increase. ✔
• The nature of a product or service ✔ also affects demand.
Basic necessities, such as bread, maize meal and healthcare are
always in demand because everybody needs them and will try
to buy them no matter how much they cost. ✔
• Consumers’ expectations about products and services ✔
also affect demand. For example, if people know that the price
of laptop is going to increase next week, they will all want to
buy the laptop this week to save money. The demand for the
laptop will increase until the price increases. ✔

Theo ‘s business does well until 2005, when a plant disease attacks
coffee plantations. It spreads throughout South America, where most
of Perc Up’s beans are grown. This affects supply.

4. What factor affecting supply is this an example of?  (1)


It is an example of a natural disaster: coffee growers have no
healthy coffee beans to supply to coffee shops. ✔

Theo’s sales drop as a result of the drop in supply. He has to do


something to keep his business going, so he increases his prices
as follows:

Price Quantity
R20,00 400
R15,00 600
R10,00 800

5. Draw the supply curve showing the relationship between


price and quantity supplied after the plant disease affects
Theo’s capacity to supply coffees.  (10)
Learners’ graphs look like this. Award marks as follows:
Two marks for the correct placement of and units on the x-axis
Two marks for the correct placement of and units on the y-axis
Two marks for the correct supply curve
Two marks for P1 correctly shown
Two marks for P2 correctly shown.

FORMAL ASSESSMENT 279

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R20
P2

Price
R15

R10
P1

800 600 400


Quantity

6. Describe four other factors that affect supply, with an


example of each.  (8)
• New production technology ✔ can also increase supply.
For example, the supply of wheat used to be limited to what
it was possible for farm workers to harvest by hand. When
technology resulted in combine harvesters, farms could
increase their supply of wheat dramatically. ✔
• The price of goods that are related to a specific good ✔
can affect supply. For example, textile manufacturers need
cotton to produce textiles for clothing. If there is a drought
and the cotton crop is affected negatively, the cotton price
will increase. This will make it more expensive for textile
producers to buy cotton. They will have to reduce their supply
of textiles. ✔
• Producers’ expectations about products and services ✔ can
also affect supply. For example, if there is a weather forecast
for a heat wave, ice cream producers expect the demand for
their products to increase. So, they will increase heir ice cream
supply. ✔
• Government regulations ✔ can affect supply. For example, if
a government policy comes into effect that imposes an import
duty on a product, supply of that product will decrease. ✔
• The cost of production inputs ✔ affects supply as well. If
labour or raw materials, for example, become more expensive,
producers will need to reduce their supply. ✔

By 2007, the effects of the plant disease have passed. Business at


Perc Up returns to normal. Theo wants to find the price at which his
coffees will have a perfect balance in the market – the price at which
demand and supply will be the same.

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7. What is this price called? (1)
It is called equilibrium price. ✔

Theo spends some time analysing his business records and extracts
the following figures about the relationship between demand, supply
and price in his business:

Demand for coffee Supply of coffee


Price Quantity Price Quantity
R15,00 800 R15,00 400
R20,00 600 R20,00 600
R25,00 400 R25,00 800

8. Draw a graph showing the equilibrium price for Perc Up. (10)
Learners’ graphs look like this. Award marks as follows:
Two marks for the correct placement of and units on the x-axis
Two marks for the correct placement of and units on the y-axis
Two marks for the correct supply curve
Two marks for the correct demand curve
Two marks for the indication of the price and quantity at which
the curves intersect (10)

R25

R20
Price

R15

R10

200 400 600 800


Quantity

Formal Assessment Task 2


Formal Assessment Task 2 guideline follows. This must be
photocopied for learners.

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Formal Assessment Task 2
Data response Time: 60 minutes Marks: 50

Fifteen years ago, South Africans were not familiar with the wide range of coffee-drinking
options that people in the USA and Europe have been used to for many years. American
coffee-shop chain Starbucks was founded in 1971. Today, there are over 20 000 Starbucks
shops in countries of the world. Since many international companies did not invest in South
Africa during apartheid, South Africans were not exposed to the Starbucks coffee-drinking
culture.

Today, with exposure in South Africa to cultures and businesses from all over the world, a
uniquely South African style of coffee shop is becoming more and more popular. An example
of such a coffee shop is Vida e Caffè, which has 51 outlets in South Africa. These outlets serve
many different styles of coffee, such as lattes, cappuccinos, frozen coffees and espressos.
They are trendy and fun, and they make a lot of money.

Suppose that in 1980s, the suburb of Cambridge in East London had one coffee shop called
Theo’s. Theo’s only served normal filter coffee. Theo’s coffee sales were doing well, so he
decided to put up his prices. He also tried a December special, where he offered coffee at
a lower price. When he charged R2,00 for a coffee for his special December offer, he would
sell 300 coffees per month. At his normal price of R2,50 per coffee, he sold 200 coffees in a
month. And when he put up his price to R3,00 a coffee, he sold 100 coffees a month.

1. Draw the demand curve showing the relationship between


Theo’s price and quantity demanded.  (10)

Fast forward to 2000. Theo’s now has so much experience in the


coffee shop trade that he decided to buy a franchise of the popular
New York-style coffee shop chain, called Perc Up. He is still in the
same East London suburb, but East Londoners have got to like the
American style of drinking a wide variety of quality coffees in an
upbeat location.

2. Analyse what has influenced the demand for coffee in


Theo’s town.  (2)

3. Describe four other factors that can influence demand,


with an example of each.  (8)

Theo ‘s business does well until 2005, when a plant disease attacks
coffee plantations. It spreads throughout South America, where most
of Perc Up’s beans are grown. This affects supply.

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4. What factor affecting supply is this an example of?  (1)

Theo’s sales drop as a result of the drop in supply. He has to do


something to keep his business going, so he increases his prices
as follows:

Price Quantity
R20,00 400
R15,00 600
R10,00 800

5. Draw the supply curve showing the relationship between


price and quantity supplied after the plant disease affects
Theo’s capacity to supply coffees.  (10)

6. Describe four other factors that affect supply, with an


example of each.  (8)

By 2007, the effects of the plant disease have passed. Business at


Perc Up returns to normal. Theo wants to find the price at which his
coffees will have a perfect balance in the market – the price at which
demand and supply will be the same.

7. What is this price called?  (1)

Theo spends some time analysing his business records and extracts
the following figures about the relationship between demand, supply
and price in his business:

Demand for coffee Supply of coffee


Price Quantity Price Quantity
R15,00 800 R15,00 400
R20,00 600 R20,00 600
R25,00 400 R25,00 800

8. Draw a graph showing the equilibrium price for Perc Up.  (10)

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Formal Assessment Task 3
Term 3, to be completed by Week 5 Marks: 50

Type of task: Project

Economic and Management Sciences topic:


The economy
Topic 11: Trade unions

Resources
Curriculum and Assessment Policy Statement
Photocopies of (CAPS) content
assessment rubric
• The concept of trade unions
• A brief historical development of trade unions
• The roles and responsibilities of trade unions in South Africa
• The effect of trade unions in businesses
• The contribution of trade unions to sustainable growth and
development.

Background
This project requires learners to:
• Find out about the trade unions that represent workers in
businesses in their area. If they cannot find a business that has
organised workers, they contact any trade union that operates in
any business in your province.
• Work in groups to contact their chosen business; formulate
questions to ask the business’s shop steward about his or her trade
union work; interview the shop steward at the business or at
school and prepare a report about trade unions.

Outlining the task with the learners


• Allow time in Term 3, around Weeks 2 or 3, and after you have
started Topic 11, to talk about this Formal Assessment Task with
the learners.
• Read through the task with them and answer any queries.
• Allow learners one or two weeks to complete the project. Some
of the work will be done during class time and some will be
completed for homework.
• Remind the learners that they will be assessed both on their ability
to work effectively as a group and on their individual reports.

Assessing the task


1. The detailed requirements of this task and guidelines for how you
can assist the learners are below.
2. During the course of the project, carefully observe learners and
make notes on their group participation and general behaviour

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during the class activities and the interviews. These notes will
assist you when you assess each group’s performance.
3. Take in the learners’ individual reports and mark them.
4. Use the rubric below to assess the learners’ responses.
5. Record your assessments in the Formal Assessment Task 3 column
on the Record sheet for Formal Assessment Tasks 1, 2 and 3
(page 297).

Rubric
Rating code Description of competence Percentage
7 Outstanding achievement: the 80—100
group worked well together
to formulate a questionnaire,
asked the questions effectively
and respectfully and each
member of the group submitted
a comprehensive, well-written
report in time.
6 Meritorious achievement: the 70—79
group worked well together to
formulate a good questionnaire,
asked questions respectfully, and
each group member submitted a
well-written report on time.
5 Substantial achievement: the 60—69
group mostly worked well
together to formulate a good
questionnaire, asked questions
respectfully, and most group
members submitted well-written
reports on time.
4 Adequate achievement: the group 50—59
worked together to formulate
an adequate questionnaire,
asked questions respectfully, and
some group members submitted
reports on time.
3 Moderate achievement: the 40—49
group struggled to work together,
formulated a questionnaire that
was not comprehensive, asked
questions respectfully, and
some group members submitted
reports on time.
2 Elementary achievement: the 30—39
group could not work together
to formulate a comprehensive
questionnaire. They relied on
the shop steward to volunteer
information and take the
lead, and few group members
submitted reports on time.
1 Not achieved: the group did not 0—29
function, did not formulate a
questionnaire or arrange a shop
steward interview, and no reports
were submitted.

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Part 1: Contact businesses to find out about their
trade unions (class time)  (5)
1. Help the learners to select and make contact with businesses in
your area that are likely to have organised workers.
2. The shop steward is the person in a business who represents the
organised workers and communicates with management on their
behalf. Choose a business. Help the learners to find out who the shop
steward is in that business and to make contact with him or her.

Part 2: Prepare a list of questions to ask the shop


steward (homework)  (15)
1. Learners will need to find out information about the following:
a. What is the name of the trade union that the shop steward
represents?
b. How did the trade union come about? How long has it been
running for?
c. What are the main worker concerns that the shop steward
deals with?
d. How does the trade union act as a link between workers and
management?
e. What kind of workers does the trade union represent –
general workers, tradesmen, blue-collar workers or white-
collar workers?
f. What are the roles and responsibilities of the trade union in
the shop steward’s specific business?
Learners write up their group’s own list of questions based on the
information they need to get and on the specific business they are
researching. Guide the learners towards writing up questionnaires that
will yield good results.

Part 3: Interview the shop steward (class time) (15)


1. Help the learners to set up a meeting with the shop steward at
the business. Meet with the shop steward or arrange for the shop
steward to come to your school to address you.
2. Learners listen carefully to what the shop steward has to say and
make notes.

Part 4: Prepare a report about trade unions


(homework)  (15)
1. Each group member prepares an individual report about the
questions their group asked and the answers they got.
2. They hand in the reports to you for assessment.

Formal Assessment Task 3


Formal Assessment Task 3 guideline follows. This must be
photocopied for learners.

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Formal Assessment Task 3
Project Marks: 50

Trade unions
In this project, your group is required to find out about the trade
unions that represent workers in businesses in your area. If you cannot
find a business that has organised workers, contact any trade union
that operates in any business in your province.

Part 1: Contact businesses to find out about


their trade unions (class time).  (5)
1. Your teacher will help you to select and make contact with
businesses in your area that are likely to have organised workers.
2. The shop steward is the person in a business who represents the
organised workers and communicates with management on their
behalf. Choose a business. Your teacher will help you to find out
who the shop steward is in that business and to make contact with
him or her.

Part 2: Prepare a list of questions to ask the


shop steward (homework). (15)
1. You will need to find out information about the following:
a. What is the name of the trade union that the shop steward
represents?
b. How did the trade union come about? How long has it been
running for?
c. What are the main worker concerns that the shop steward
deals with?
d. How does the trade union act as a link between workers and
management?
e. What kind of workers does the trade union represent –
general workers, tradesmen, blue-collar workers or white-
collar workers?
f. What are the roles and responsibilities of the trade union in
the shop steward’s specific business?
Write up your group’s own list of questions based on the
information you need to get and on the specific business you
are researching.

Part 3: Interview the shop steward (class time). (15)


1. Your teacher will help you to set up a meeting with the shop
steward at the business. Meet with the shop steward or arrange for
the shop steward to come to your school to address you.
2. Listen carefully to what the shop steward has to say and make notes.

FORMAL ASSESSMENT 287

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Part 4: Prepare a report about trade unions
(homework). (15)
1. Each group member prepares an individual report about the
questions your group asked and the answers you got.
2. Hand in your report to your teacher for assessment.

Your teacher will use the following rubric to assess your project.

Rubric
Rating code Description of competence Percentage
7 Outstanding achievement: the 80—100
group worked well together
to formulate a questionnaire,
asked the questions effectively
and respectfully and each
member of the group submitted
a comprehensive, well-written
report in time.
6 Meritorious achievement: the 70—79
group worked well together to
formulate a good questionnaire,
asked questions respectfully, and
each group member submitted a
well-written report on time.
5 Substantial achievement: the 60—69
group mostly worked well
together to formulate a good
questionnaire, asked questions
respectfully, and most group
members submitted well-written
reports on time.
4 Adequate achievement: the group 50—59
worked together to formulate
an adequate questionnaire,
asked questions respectfully, and
some group members submitted
reports on time.
3 Moderate achievement: the 40—49
group struggled to work together,
formulated a questionnaire that
was not comprehensive, asked
questions respectfully, and
some group members submitted
reports on time.
2 Elementary achievement: the 30—39
group could not work together
to formulate a comprehensive
questionnaire. They relied on
the shop steward to volunteer
information and take the
lead, and few group members
submitted reports on time.
1 Not achieved: the group did not 0—29
function, did not formulate a
questionnaire or arrange a shop
steward interview, and no reports
were submitted.

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4. Tests and Examinations: Guidance

• Tests and examinations may include a variety of assessment styles


such as multiple-choice questions, one-line answers, true-and-
false questions, filling in the missing word, written paragraphs,
labelling diagrams and doing calculations.
• Tests and examinations must be completed under strictly
controlled conditions.
• The end-of-year examination for Grade 9 is set externally, and
marked and moderated internally.

Tests and examinations must cater for a range of cognitive levels. The
following is the suggested weighting for the Senior Phase:

Cognitive levels Activity Percentage of task


Assessing knowledge
Lower order 30%
and remembering
Assessing
Middle order understanding and 40%
application
Analysing, evaluating
Higher order 30%
and creating

FORMAL ASSESSMENT 289

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Controlled Test 1
Term 1, Week 10 Marks: 100

Economic and Management Sciences topics:


Financial literacy
• Topic 2: Cash Receipts Journal and Cash Payments Journal
(sole trader)
• Topic 4: General Ledger and Trial Balance (sole trader)
The economy
• Topic 3: Economic systems
• Topic 5: Circular flow

Resources
Curriculum and Assessment Policy Statement
Teacher’s Guide: (CAPS) content
pages 82–90
Content, knowledge and skills covered in Topics 2–5
A photocopy of the
test paper for each
learner
Background
• You will find a photocopiable copy of Controlled Test 1 on pages
82–90 of this guide. Photocopy the test for each learner.
• The first controlled test focuses on all material covered in Term 1
and should be written in Week 10 of Term 1.
• These controlled tests follow a similar format as the examinations.

Outlining the task with the learners


• Ensure that learners are aware from the beginning of Term 1,
and remind them regularly, that they will be assessed on content
covered in Topics 2 –5.
• Explain to the learners that controlled tests look the same and
require the same preparation as examinations.

Assessing the task


1. You will find a photocopiable memorandum for Controlled
Test 1 on pages 83 – 86 of this guide. You may photocopy this
memorandum.
2. Mark the learners’ tests according to this memorandum.
3. Record learners’ marks in the Controlled Test 1 column on the
Record sheet for Controlled Tests 1 and 3 (page 298).

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Mid-year Examination
Term 2, Week 10 Marks: 100

Economic and Management Sciences topics:


Financial literacy
• Topic 2: Cash Receipts Journal and Cash Payments Journal
(sole trader)
• Topic 4: General Ledger and Trial Balance (sole trader)
• Topic 7: Credit transactions: Debtors (1)
The economy
• Topic 3: Economic systems
• Topic 5: Circular flow
• Topic 8: Price theory
Entrepreneurship
• Topic 9: Sectors of the economy
Curriculum and Assessment Policy Statement
Resources
Learner’s Book (CAPS) content
pages 110 – 114
Content, knowledge and skills covered in Terms 1–2
Teacher’s Guide
pages 123 – 125
Background
The mid-year examination focuses on all material covered in Terms 1
and 2 and the questions require lower-order, middle-order and higher-
order thinking skills from the learners. The examination is divided
into two sections as follows:
• Section A: All questions are compulsory and they require short,
direct answers that range from one word to a sentence in length.
Learners apply their knowledge of content learnt thus far in a
combination of ways (40 marks).
• Section B: All questions are compulsory and learners are required
to answer questions to show understanding of content and solve
problems using the financial accounting they have learnt, in
different case studies/scenarios (60 marks).

Outlining the task with the learners


• At the beginning of Term 2, spend some time discussing with the
learners what material they will need to cover for the examination.
• In Weeks 4 or 5 of Term 2, spend some time discussing the format
of the examination with the learners, including how much time
they will be given to complete it. You can refer to the notes in
‘Background’ above to help you with this explanation.

FORMAL ASSESSMENT 291

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• In Weeks 9 –10 of Term 2, spend time preparing for the
examination.
• Explain that the way the examination is structured means that
they will not be able to leave out any sections of work as they
prepare for it.

The task
• The learners will find an examination practice paper on pages
110 –114 of the Learner’s Book. The marking memorandum to
this paper appears on pages 123 –125 of this guide (Section 2).
• Use the format of this mid-year examination practice paper
to prepare an actual mid-year examination paper. Refer to the
guidelines here and in the CAPS document to help you. The
Learner’s Book also has a Study skills section that might be useful.

Assessing the task


1. Formulate a memorandum for the examination.
2. Mark the learners’ exams according to this memorandum.
3. Record learners’ marks in the Mid-year examination column on
the Record sheet for Mid-year and End-of-year examinations
(page 299).

292 FORMAL ASSESSMENT

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Controlled Test 2
Term 3, Week 10 Marks: 100

Economic and Management Sciences topics:


The economy
• Topic 11: Trade unions
Financial literacy
• Topic 12: Credit transactions: Debtors (2)
• Topic 13: Credit transactions: Creditors (1)
• Topic 15: Credit transactions: Creditors (2)
Entrepreneurship
• Topic 14: Functions of a business

Resources Curriculum and Assessment Policy Statement


Teacher’s Guide: (CAPS) content
pages 192–198
Content, knowledge and skills covered in Topics 11–15
A photocopy of the
test paper for each
learner Background
• You will find a photocopiable copy of Controlled Test 2 on pages
185 –188 of this guide. Photocopy the test for each learner.
• The second controlled test focuses on all material covered in
Term 3 and should be written in Week 10 of Term 3.
• These controlled tests follow a similar format as the examinations.

Outlining the task with the learners


• Ensure that learners are aware from the beginning of Term 3,
and remind them regularly, that they will be assessed on content
covered in Topics 11–15.
• Explain to the learners that controlled tests look the same and
require the same preparation as examinations.

Assessing the task


1. You will find a photocopiable memorandum for Controlled
Test 2 on pages 195 –198 of this guide. You may photocopy this
memorandum.
2. Mark the learners’ tests according to this memorandum.
3. Record learners’ marks in the Controlled Test 2 column on the
Record sheet for Controlled Tests 1 and 2 (page 298).

FORMAL ASSESSMENT 293

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End-of-year Examination
Term 4, Weeks 8–10 Marks: 200

Economic and Management Sciences topics:


Financial literacy
• Topic 2: Cash Receipts Journal and Cash Payments Journal
(sole trader)
• Topic 4: General Ledger and Trial Balance (sole trader)
• Topic 7: Credit transactions: Debtors (1)
• Topic 12: Credit transactions: Debtors (2)
• Topic 13: Credit transactions: Creditors (1)
• Topic 15: Credit transactions: Creditors (2)
• Topic 17: Transactions: Cash and credit
The economy
• Topic 3: Economic systems
• Topic 5: Circular flow
• Topic 8: Price theory
• Topic 11: Trade unions
Entrepreneurship
• Topic 9: Sectors of the economy
• Topic 14: Functions of a business
• Topic 18: Business plan
Resources Curriculum and Assessment Policy Statement
Learner’s Book (CAPS) content
pages 258–268
Content, knowledge and skills covered in Terms 1– 4
Teacher’s Guide
pages 259–264
and 292–317 Background
A photocopy of
The end-of-year examination focuses on all material covered during
the end-of-year the year and the questions require lower-order, middle-order and
examination paper higher-order thinking skills from the learners. The examination is
for each learner divided into four sections as follows:
• Section A: Covers all the topics
All questions are compulsory and they require short, direct
answers that range from one word to a phrase or a full sentence in
length (60 marks).
• Section B: Topic: The economy
All questions are compulsory and they require learners to present
and apply their knowledge and skills in answers that range from
short, direct responses, full sentences in point form to extended
writing in short paragraphs (40 marks).

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• Section C: Topic: Financial literacy
All questions are compulsory and learners are required to answer
questions to show understanding of content and solve problems
using the financial accounting they have learnt, in different
scenarios (60 marks).
• Section D: Topic: Entrepreneurship
All questions are compulsory and learners are required to use their
knowledge and skills to apply content to case studies and real-life
scenarios (40 marks).

Outlining the task with the learners


• At the beginning of Term 4, spend some time discussing with
the learners what material will need to be covered by them in the
examination.
• In Week 4 of Term 4, spend some time reminding learners
about the format of the examination, including how much time
they will be given to complete it. You can refer to the notes in
‘Background’ above to help you with this explanation.
• In Weeks 8 –9 of Term 4, spend time preparing for the
examination.
• Explain that the way the examination is structured means that
they will not be able to leave out any sections of work as they
prepare for it.

The task
• The learners will find an examination practice paper on pages
258 –268 of the Learner’s Book. The marking memorandum to
this paper appears on pages 259–264 of this guide (Section 2).
• An end-of-year examination paper for the actual examination
appears on pages 302–312 of this guide (Section 4). Photocopy
this examination paper for the learners.

Assessing the task


1. You will find a photocopiable memorandum for the actual end-
of-year examination on pages 313 – 317 of this guide (Section 4).
You may photocopy this memorandum.
2. Mark the learners’ exams according to this memorandum.
3. Record learners’ marks in the End-of-year year examination
column on the Record sheet for Mid-year and End-of-year
examinations (page 299).

FORMAL ASSESSMENT 295

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5. Recording and reporting

The results of all Formal Assessment Tasks, tests and examinations


should be recorded and are used for reporting on learners’
performance each term.

Recording is a process by which you document the level of a


learner’s performance in a specific assessment task. Records of learner
performance should provide evidence of the learner’s conceptual
progression within a grade and her or his readiness to progress or be
promoted to the next grade. Records of learner performance should
also be used to verify the progress made by yourself and your learners
in the teaching and learning process.

The Programme of Assessment (pages 268–269) details how a learner’s


Economic and Management Sciences mark per term is arrived at.

The following photocopiable assessment recording tools are provided


in this section:
• Record sheet for Formal Assessment Tasks 1, 2 and 3
• Record sheet for Controlled Tests 1 and 2
• Record sheet for Mid-year and End-of-year examinations
• Economic and Management Sciences assessment record sheet
Reporting is a process of communicating learner performance
to learners, parents, schools, and other stakeholders. Learner
performance can be reported in a number of ways. These include
report cards, parents’ meetings, school visitation days, parent-teacher
conferences, phone calls, letters, class or school newsletters, etc. Marks
in all subjects must be recorded in percentages. Reporting on learners’
progress in Economic and Management Sciences should be done
using the following seven rating codes and descriptors:

Rating code Description of competence Percentage


7 Outstanding achievement 80–100
6 Meritorious achievement 70–79
5 Substantial achievement 60–69
4 Adequate achievement 50–59
3 Moderate achievement 40–49
2 Elementary achievement 30–39
1 Not achieved 0–29

296 FORMAL ASSESSMENT

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EMS 9 TG (ENG).indb 297
Record sheet for Formal Assessment Tasks 1, 2 and 3
Class:  Year:

Learners’ names Formal Assessment Task 1 Formal Assessment Task 2 Formal Assessment Task 3
50 marks 50 marks 50 marks
MARK PERCENTAGE MARK PERCENTAGE MARK PERCENTAGE

FORMAL ASSESSMENT
297

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Record sheet for Controlled Tests 1 and 2

EMS 9 TG (ENG).indb 298


298
Class:  Year:

Learners’ names Controlled Test 1 Controlled Test 3


100 marks 100 marks
MARK PERCENTAGE MARK PERCENTAGE

FORMAL ASSESSMENT

6/5/13 6:23:21 PM
EMS 9 TG (ENG).indb 299
Record sheet for Mid-year and End-of-year examinations
Class:  Year:

Learners’ names Mid-year examination End-of-year examination


100 marks 200 marks
MARK PERCENTAGE MARK PERCENTAGE

FORMAL ASSESSMENT
299

6/5/13 6:23:21 PM
Economics and Management Sciences assessment record sheet

EMS 9 TG (ENG).indb 300


300
Grade: Class:  Year:

Term 1 Term 2 Term 3 Term 4


Name of task Assignment Controlled Data response Mid-year Project Controlled End-of-year Total for the %
test exam test exam year Divide
Date of learner’s
assessment: mark by 650
and multiply
Marks 50 100 50 100 50 100 200 650 by 100
Learners’ names

FORMAL ASSESSMENT

6/5/13 6:23:21 PM
4. Resources
1. A
 ctual end-of-year examination paper
and marking memorandum 302
2. PowerPoint CD 318
3. List of useful reading material and
Internet resources 319
4. Glossary for teachers 320
5. Lesson plan template 324

301

EMS 9 TG (ENG).indb 301 6/5/13 6:23:21 PM


1. Actual end-of-year examination paper and
marking memorandum

GRADE 9 END-OF-YEAR EXAMINATION TERM 4


TIME: 2 HOURS TOTAL: 200 MARKS

SECTION A
QUESTION 1  [20 marks; 12 minutes]
TASK
Choose the correct answer and write down only the correct letter next
to the number.

1.1 A product is sold at R1 200 with a mark-up of 25%.The cost price


of this product was:
A: R300
B: R960
C: R1 500
D: R900

1.2 What source document is used to enter the transaction in our


books when we purchase goods for cash?
A: Original invoice
B: Duplicate invoice
C: Receipt
D: Cheque counterfoil

1.3
Dr Cost of Sales Cr
Date Details Fol. Amount Date Details Fol. Amount
Trading stock CRJ 1 480 00

A reason for the entry in the above-mentioned account:


A: Merchandise is sold for cash
B: Profit on the merchandise sold
C: Cost of merchandise sold for credit
D: Cost of merchandise sold for cash

1.4 The following is not an advantage of the market economy:


A: Can adapt to change quickly
B: Consumers have a wide variety of products and services to
choose from
C: Big businesses have great degree of control
D: There is economic freedom

302 RESOURCES

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1.5 The following are businesses in the primary sector:
A: Farming
B: Food factories
C: Hospitals
D: Construction

1.6 A Trial Balance is:


A: A list of balances drawn up before completing the
General Ledger
B: A list of balances drawn up after completing the
General Ledger
C: A list of incomes drawn up before completing the
General Ledger
D: A list of expenses drawn up before completing the
General Ledger

1.7 Which one is not correct: The law of supply and demand states
the following:
A: Demand rises, price rises
B: Supply falls, price rises
C: Demand falls, price rises
D: Demand rises, price falls

1.8 In South Africa there are unions for:


A: General workers
B: Artisans
C: Blue- and white-collar workers
D: All of the above

1.9 The marketing plan of your business plan should contain the
following:
A: Target market
B: Initial costs
C: Breakeven point
D: Profit percentages

1.10 The general management function is not responsible for


the following:
A: Administration of staff leave
B: High-level planning
C: Planning, organising and controlling resources
D: Manage all the other managers in the business (10 × 2 = 20)

RESOURCES 303

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QUESTION 2 [10 marks; 6 minutes]
TASK
Indicate whether the following statements are TRUE or FALSE. Only
write the number and TRUE or FALSE.

2.1 When you sell on credit, you will be able to sell more stock,
because customers do not have to wait until they have cash to buy.
2.2 The most important income of a business concern is current income.
2.3 In the economic cycle, goods and services, money and factors of
production flow through the economy.
2.4 A unique selling point is a quality of a product or service that
makes consumers buy that product or service instead of others.
2.5 There are nine business functions, usually performed by different
departments in the business.  (5 × 2 = 10)

QUESTION 3 [20 marks; 12 minutes]


TASK
Match the term in Column A to the explanation in Column B. Only
write the number and letter from each column.

Column A Column B
3.1 Economic problem A Actions designed to attract the
interest of the public
3.2 Collective bargaining B Are repaid within a period of
one year
3.3 Current liabilities C Stop working to force management
to increase your wages and improve
your working conditions
3.4 Projection D The amount supplied is greater than
the amount demanded
3.5 Market equilibrium E Incur a cost to obtain an income
price
3.6 Expense F How to satisfy unlimited needs and
wants with limited resources
3.7 Publicity G Owner’s interest in the business
3.8 Trading stock H An estimate of what will happen in
the future based on how things are
in the present
3.9 Balance I A process where workers and
businesses negotiate working
conditions
3.10 Strike J The price at which the supply of and
demand for a product is the same
K Established to protect and promote
workers' rights
L Difference between the debit and
credit sides of an account in the
General Ledger
M Goods that are being traded

(20)

304 RESOURCES

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QUESTION 4 [10 marks; 6 minutes]
TASK
Fill in the missing words. Choose from the following.

earn, produce, spend, collect, profit, taxes, sell, spend, distribute

4.1 Businesses _____________, _____________ and


_____________ goods and services.
4.2 The main objective of a business is to make a _____________.
4.3 Workers help to _____________ goods and services.
4.4 Workers _____________ money.
4.5 Workers then _____________ money.
4.6 The government _____________ money through
_____________.
4.7 The government then _____________ money to improve
people’s lives.  (10)

SECTION B
QUESTION 5 [19 marks; 11 minutes]
TASK
Answer the following questions.

5.1 List the THREE main economic systems used by all countries and
discuss each one briefly.  (9)
5.2 Explain what is meant by a closed economy.  (2)
5.3 List the FIVE participants of the economic cycle in a closed
economy.  (5)
5.4 What is consumed and produced by the government in the
economic cycle?  (3)
 (19)

RESOURCES 305

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QUESTION 6 [9 marks; 5 minutes]
TASK
Complete the following table.
Demand Supply Price
Example: Why do High High Low
people buy more
grapes in December
than in July?
Why are oranges
more expensive in
December than in
July?
Why is holiday
accommodation more
expensive in the peak
holiday season?
Why do clothing
stores have sales
at the end of the
summer and winter
seasons?

(9)

QUESTION 7 [12 marks; 7 minutes]


TASK
Read the information below and answer the questions.

A trade union is an organisation founded by workers to take care


of their economic and social interests. In the late 1980s, large
numbers of people in South Africa joined the main trade unions,
namely the Congress of South African Trade Unions (COSATU),
the National Council of Trade Unions and the Federation of South
African Trade Unions. There is close cooperation between the
trade unions in South Africa to bring about political, economic
and social changes.

7.1 Name THREE roles of trade unions.  (6)


7.2 State THREE responsibilities of trade unions.  (6)
 [12]

306 RESOURCES

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SECTION C
QUESTION 8  [35 marks; 21 minutes]
The subsidiary journals of Lenro Traders for April 2014 have been
recorded and concluded. Column totals of the subsidiary journals
are given.

TASK
Post the items to the following accounts as provided on your
answer sheet.

Balances, among others, on 1 April 2014


Trading stock R8 800
Debtors control R12 328
Creditors control R9 456
Wages R478
Sales R79 706

NOTE: Balance the Trading Stock and Creditors Control accounts only.
No other additions or balancing are required. Folio numbers must be
indicated in all ledger accounts.

COLUMN TOTALS FOR APRIL 2014

Cash Receipts Journal of Lenro Traders for April 2014 CRJ2


Bank Sales Cost of sales Debtors control Sundry accounts
R11 933,00 R11 310,00 R9 048,00 R? R180,00

Cash Payments Journal of Lenro Traders for April 2014 CPJ2


Bank Trading stock Wages Creditors control Sundry accounts
R11 300,00 R3 139,00 R999,00 R6 085,00 R1 077,00

Debtors Journal of Lenro Traders for April 2014  DJ2


Sales Cost of sales
R443,00 R354,00

Creditors Journal of Lenro Traders for April 2014 CJ2


Creditors control Packing material Trading stock Sundry accounts
R? R555,00 R5 948,00 R666,00

RESOURCES 307

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General Ledger of Lenro Traders
Dr Debtors Control Cr
Date Details Fol. Amount Date Details Fol. Amount

(6)
Dr Trading Stock Cr
Date Details Fol. Amount Date Details Fol. Amount

(12)
Dr Creditors Control Cr
Date Details Fol. Amount Date Details Fol. Amount

(9)
Dr Sales Cr
Date Details Fol. Amount Date Details Fol. Amount

(5)
Dr Wages Cr
Date Details Fol. Amount Date Details Fol. Amount

(3)
[35]

308 RESOURCES

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QUESTION 9 [10 marks; 6 minutes]
Study the following account of T West, a creditor, as it appears in
the Creditors Ledger of Martin Limited for October 2014. Some
information has been omitted.

TASK
Answer the questions that follow.

Information
The following balances appear in the list of creditors on 30 September
2014.

Z East R1 520
Creditors control R2 690
U South R120
T West R?
K Winters R570

Creditors Ledger of Martin Limited


T West C3
Day Details/Document no. Fol. Debit Credit Balance
2014
Oct 01 Account rendered R?
05 Invoice no. 25 R?
20 Cheque no. 38 R?
25 Invoice no. 30 R?
31 Cheque no. 45 550,00 550,00

9.1 Calculate the amount owed by T West on 1 October 2014.


9.2 The goods purchased from T West were invoiced on 5 October at
R1 040. A trade discount of 5% must still be taken into account.
Calculate the invoice amount.
9.3 Name the account to be debited and the account to be credited
for the transaction of the 20th.
9.4 Calculate the amount paid to T West on the 20th if the account is
paid in full.
9.5 What was the amount of invoice no. 30, received from T West for
stationery purchased on the 25th? (10)

QUESTION 10 [15 marks; 9 minutes]


TASK
Show what effect the following transactions have on the accounting
equation.

1. Debtor A Cronjé settled his account by cheque, R580.


2. Sold merchandise on credit to C Buck, R720 (cost price R450).
3. Withdraw a cheque for R800 for the owner’s personal use.

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ASSETS EQUITY LIABILITIES
Effect Reason Effect Reason Effect Reason

(15)

SECTION D
QUESTION 11  [15 marks; 9 minutes]
TASK
Study the table below from the SARS website and answer the
questions.

TOP TEN IMPORT COMMODITIES FOR NOVEMBER 2008


No. Description Value
1. Crude oil R7 192 908 141
2. Gold, monetary R5 552 008 727
3. Plane with an unloaded mass of a maximum R1 366 075 664
15 000 kg
4. Original equipment components for vehicles R1 242 768 905
5. Telephones for cellular networks R1 131 588 222
6. Refined copper R796 888 333
7. Copper ore R766 585 686
8. Electrical energy R557 587 948
9. Motor vehicles with a specific cylinder R555 762 951
capacity
10. Distillate fuel R526 869 408

11.1 Which of the imported goods fall under the primary sector?  (2)
11.2 South Africa imports most of its goods from the __________
sector.  (2)
11.3 From the above table it is clear that South Africa does not have
a strong manufacturing sector. Explain why it is important to
have a strong manufacturing sector.  (2)
11.4 South Africa exports mainly metals and minerals. Name
THREE metals or minerals that South Africa exports.  (3)
11.5 South Africa also exports agricultural products such as wheat
and maize. Name TWO circumstances when you think South
Africa will import agricultural products.  (4)
11.6 Why do you think South Africa has to import crude oil?  (2)
 [15]

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QUESTION 12 [11 marks; 7 minutes]
TASK
Certain business functions appear below. There is also a list of
responsibilities. Clarify the responsibilities and write them next to the
correct business function.

DEPARTMENT RESPONSIBILITIES
FINANCE 1.
2.
PRODUCTION and 1.
PURCHASING 2.
MARKETING 1.
2.
ADMINISTRATION 1.
2.
HUMAN RESOURCES 1.
2.
PUBLIC RELATIONS 1.

(11)
List of responsibilities
a. Chooses the person with the best qualifications for the job
b. Promotes a positive public image of the company
c. Buys stock from the best suppliers at the lowest possible cost
d. Answers the telephone and emails
e. Chooses the best method of production for the goods
f. Advertises the goods
g. Manages the cash flow of the business
h. Works with unions
i. Finds the target market for the goods
j. Does all the filing
k. Keeps the assets of the business safe

QUESTION 13 [14 marks; 9 minutes]


TASK
Read the case study and answer the questions.

In January, Patrick makes 25 security gates. The material costs


him R11 250 (R450 × 25 gates). He pays himself R150 for each
gate he makes, so his total labour cost is R3 750. He pays R2 500
rent per month for his premises and electricity costs him R250
per month. He pays his younger brother R400 per month to do his
bookkeeping, and advertising costs him R250 per month. Many of
the costs (rent, advertising, his brother’s salary) remain the same
regardless of how many gates Patrick makes. These are the FIXED
COSTS of the business. Other costs (raw materials and his own
labour) vary, depending on how many gates he makes. These are
called VARIABLE COSTS.

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Total costs of production = fixed costs + variable costs

13.1 Calculate Patrick’s costs for making 25 gates using this example:

FIXED COSTS
Rent R2 500
Electricity R250
Bookkeeping R400
Advertising R250
Total fixed costs R__________

VARIABLE COSTS
Materials R11 250
Labour R3 750
Total variable costs R__________

TOTAL COSTS R__________

 (3)

13.2 Now calculate Patrick’s costs if he makes 40 gates. (6)


13.3 Calculate the unit cost if he makes 40 gates a month. Work
out his profit on each gate if he sells them at R1 000 each. (2)
13.4 Does Patrick make more or less profit on the gates if he only
makes 25? Explain the difference.  (3)
 [14]

TOTAL: 200 MARKS

312 RESOURCES

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GRADE 9 END-OF-YEAR EXAMINATION: MEMO TERM 4
TIME: 2 HOURS TOTAL: 200 MARKS

SECTION A
QUESTION 1
1.1 B ✔✔
1.2 D ✔✔
1.3 D ✔✔
1.4 C ✔✔
1.5 A ✔✔
1.6 B ✔✔
1.7 C ✔✔
1.8 D ✔✔
1.9 A ✔✔
1.10 A ✔✔ (10 × 2 = 20)

QUESTION 2
2.1 True ✔✔
2.2 False ✔✔
2.3 True ✔✔
2.4 True ✔✔
2.5 False ✔✔ (5 × 2 = 10)

QUESTION 3
3.1 F ✔✔
3.2 I ✔✔
3.3 B ✔✔
3.4 H ✔✔
3.5 J ✔✔
3.6 E ✔✔
3.7 A ✔✔
3.8 M ✔✔
3.9 L ✔✔
3.10 C ✔✔ (10 × 2 = 20)

QUESTION 4
4.1 collect, sell and distribute ✔✔✔
4.2 profit ✔
4.3 produce ✔
4.4 earn ✔
4.5 spend ✔
4.6 earn, taxes ✔✔
4.7 spends ✔ (10 × 1 = 10)

SECTION B
QUESTION 5
5.1 Market economic system: ✔
Government does not play an active role ✔
All economic decisions are made by private individuals ✔

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Planned economic system: ✔
All land and capital owned by the government ✔
Government takes all economic decisions and receives all profit ✔

Mixed economic system: ✔


Mixture of private and government control of the economy ✔✔
 (9)

5.2 A closed economy does not trade with other economies; has
little or no interaction with other national economies.  (2)

5.3 Households ✔
Businesses ✔
Government ✔
Goods and services market ✔
Factor market ✔  (5)

5.4 Government consumes money ✔from households and businesses


through taxation and produces goods ✔ and services ✔to
businesses and households.  (3)
 [19]

QUESTION 6
Demand Supply Price
Example: Why do High High Low
people buy more
grapes in December
than in July?
Why are oranges High ✔ Low ✔ High ✔
more expensive in
December than in
July?
Why is holiday High ✔ Low ✔ High ✔
accommodation more
expensive in the peak
holiday season?
Why do clothing Low ✔ High ✔ Low ✔
stores have sales
at the end of the
summer and winter
seasons?

(9)

QUESTION 7
7.1 Role of trade unions: Unions can organise the following:
• Workers can stop working and strike.
• Workers can stop working overtime or work less overtime.
• Workers can advertise their problems with posters and protests.
• Workers can picket – they can stand outside a workplace and
try to prevent people going into or out of the building.

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• Negotiate with employers through collective bargaining
to improve their members’ wages, benefits and working
conditions and to manage retrenchments.
• Work to get the government to pass laws that will improve
their members’ lives.
• Provide professional training, legal advice and legal
representation for their members.
• Organise industrial action.
• Represent workers’ interests during disputes with employers.
• Work with employers to get employees a greater say in the
decisions that management makes. (any 3 × 2 = 6)

7.2 Responsibilities of trade unions:


• Negotiate with employers to improve their members’ working
conditions.
• Try to attract new trade union members.
• Not force anyone into joining a trade union.
• Make decisions based on a secret vote by all their members.
• Ensure that all industrial action is lawful and peaceful.
• Make reasonable demands on the employers.
• Help to settle disputes between employers and employees.
• Help to bring about peaceful workplaces. (any 3 × 2 = 6)

SECTION C
QUESTION 8
General Ledger of Lenro Traders
Dr Debtors Control Cr
Date Details Fol. Amount Date Details Fol. Amount
2014 2014
Apr 01 Balance b/d ✔ 12 328 00 Apr 30 Bank ✔ CRJ2 443✔✔ 00
30 Sales ✔ DJ2 ✔ 443 00
(6)
Dr Trading Stock Cr
Date Details Fol. Amount Date Details Fol. Amount
2014 2014
Apr 01 Balance b/d ✔ 8 800 00 Apr 30 Cost of sales ✔ CRJ2 ✔ 9 048 00
30 Bank ✔ CPJ2 ✔ 3 139 00 Cost of sales ✔ DJ2 ✔354 00
Creditors control ✔ CJ2 ✔ 5 948 00 Balance c/d ✔✔ 8 485 00
17 887 00 17 887 00
2014
May 01 Balance b/d ✔ 8 485 00

(12)

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Dr Creditors Control Cr
Date Details Fol. Amount Date Details Fol. Amount
2014 2014
Apr 30 Bank ✔ CPJ2 ✔ 6 085 00 Apr 01 Balance b/d ✔ 9 456 00
Balance c/d ✔✔ 10 540 00 30 Sundry purchases ✔ CJ2 ✔✔ 7 169 00
16 625 00 16 625 00
2014
May 01 Balance b/d ✔ 10 540 00
(9)
Dr Sales Cr
Date Details Fol. Amount Date Details Fol. Amount
2014
Apr 01 Balance b/d ✔ 79 706 00
Bank ✔ CRJ2 ✔ 11 310 00
Debtors control ✔ DJ2 ✔ 443 00
(5)
Dr Wages Cr
Date Details Fol. Amount Date Details Fol. Amount
2014
Apr 01 Balance b/d ✔ 478 00
30 Bank ✔ CPJ2 ✔ 999 00

(3)
[35]
QUESTION 9
9.1 R480✔✔
9.2 R988✔✔
9.3 Debit: Creditors control ✔ Credit: Bank ✔
9.4 R1 468✔✔
9.5 R1 100✔✔ (10)

QUESTION 10
ASSETS EQUITY LIABILITIES
Effect Reason Effect Reason Effect Reason
1. +580✔ Cash increases✔
—580✔ Debtors
decrease✔
2. +720✔ Debtors increase✔ +270✔✔ Profit✔
—450✔ Trading
stock✔decreases
3. —800✔ Cash decreases ✔ —800✔ Drawings✔

(15)

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SECTION D
QUESTION 11
11.1 Crude oil ✔✔
11.2 Secondary sector ✔✔
11.3 South Africa needs to export more manufacturing goods to
achieve sustainable economic growth. We cannot compete in
international trade if we do not have a successful manufacturing
sector. ✔✔
11.4 Gold, copper, platinum, iron ore, coal (any ✔✔✔)
11.5 If there has been a drought or a crop failure, or when demand
exceeds supply.  (any 2 × 2 = 4)
11.6 SA does not have oil deposits. Oil is very important to an
economy. ✔✔ [15]

QUESTION 12
DEPARTMENT RESPONSIBILITIES
FINANCE 1. Manages the cash flow of the business ✔
2. Keeps the assets of the business safe ✔
PRODUCTION and 1. Buys stock from the best suppliers at the
PURCHASING lowest possible cost ✔
2. Chooses the best method of production for
the goods ✔
MARKETING 1. Advertises the goods ✔
2. Finds the target market for the goods ✔
ADMINISTRATION 1. Answers the telephone and e-mails ✔
2. Does all the filing ✔
HUMAN RESOURCES 1. Chooses the person with the best
qualifications for the job ✔
2. Works with unions ✔
PUBLIC RELATIONS 1. Promotes a positive public image of the
company ✔

(11)

QUESTION 13
13.1 R3 400✔+ R15 000✔ = R18 400✔

13.2 Total costs of production = Fixed costs + Variable costs


=R3 400✔ + R18 000✔✔ + R6 000✔✔
= R27 400✔

27 400
13.3 ​ ______ ✔
 ​ 
  = R685 per gate
40
R1 000 – R685 = R315✔

R18 400
13.4 ​ _______ ​ 
= R736✔

25
R1 000 – R736 = R264
If he makes 25, he makes less profit; R264 instead of R315.
He should rather make 40 gates.✔✔ (14)

TOTAL: 200 MARKS

RESOURCES 317

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2. PowerPoint CD

This Teacher’s Guide comes with a CD that provides MS PowerPoint


slides for some of the Economic and Management Sciences lessons.

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3. List of useful reading material and Internet resources

1. Read as much literature as you can that is relevant to Economic


and Management Sciences:
• Financial magazines e.g. Financial Mail
• Financial newspapers e.g. Business Day and the financial
sections in newspapers e.g. Personal Finance section in the
Sunday Times
• Internet websites dealing with national and international
financial and economic matters, especially entrepreneurs and
entrepreneurship
• National Geographic for information on people and their life
circumstances around the world

2. Stay abreast of current affairs and events that impact the South
African and global economies e.g. natural disasters, economic
changes, industrial action, financial crises and the development of
the emerging economies of Brazil, Russia, India, China and South
Africa (the BRICS countries).

3. The Congress of South African Trade Unions (Cosatu) website is


a good place to start reading about trade unions: http://
www.cosatu. org.za/. Visit the offices of local trade unions in your
area.
4. Access a copy of the Labour Relations Act (LRA) and
Constitution of South Africa at http://www.gov.za/documents/
download.php?f=161934 (LRA) and http://www.gov.za/
documents/constitution/1996/constitution.pdf (SA
Constitution)
5. Department of Labour’s website: https://
www.labour.gov.za/. Contact your local government office.

6. Commission for Conciliation, Mediation and Arbitration


(CCMA): http://www.ccma.org.za/, 0861 16 16 16 or info@
ccma.org.za.

RESOURCES 319

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4. Glossary for teachers

accountability – the acknowledgement and assumption of


responsibility for your actions, duties and decisions. Someone who is
accountable should be able to justify and explain his/her decisions and
actions
accounting concepts – words that are used in accounting (e.g. assets,
owner’s equity, liabilities)
accounting cycle – steps that are followed from the initiating of a
transaction to the final reporting on it
accounting equation – assets = owner’s equity + liabilities
acquisition and disposal of tangible assets – the purchase and sale of
fixed assets
administrative costs – the costs incurred in administering a
manufacturing business
Balance Sheet – a statement that reflects the financial position of the
business on a specific date
books of first entry – all subsidiary journals (Cash, Debtors,
Creditors and General Journals, etc.)
break-even point – the point when the cost of the number of units of
a good produced equals the total sales of that good sold, with no loss
or profit to the business
business cycle – the fluctuation of economic activity in the economy
(sometimes with no regular intervals)
business plan – an action plan that entrepreneurs draw up for the
purpose of starting a business
cash budget – cash forecast of future cash receipts and payments,
setting out the expected cash receipts and cash payments over the
budget period
circular flow – the flow of goods and services in one direction and
money in another and opposite direction, between consumers,
businesses, the public sector and the foreign sector
close corporation – a form of ownership (according to Act 74 of
1984)
code of ethics – a written set of rules and guidelines which outline
the moral standards and ethical principles to be followed by an
organisation and all of its members
company – a form of ownership (according to Act 61 of 1973 as
amended)
consumer – someone who uses goods and services to satisfy wants
consumable goods – items that are used up (consumed) during the
financial year, such as stationery, packaging and cleaning materials
contemporary – existing at the present time

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cost principles – the methods used to classify and determine costs
(e.g. direct cost, indirect cost)
creditors payment schedules – timelines to pay creditors
current accounting practices – current accounting practice in South
Africa, determined by the various Acts of Parliament and GAAP
cycle – the oscillation of the values of economic variables around a
secular trend line
debtors collection schedules – timelines for receipt of payments
from debtors
depreciation – a decrease in the value of an asset over a period of time
direct labour costs – the salaries and wages paid to the employees
who are directly involved in the manufacture of a good
direct material costs – the costs of all the raw materials that are used
directly in the manufacture of a good
discuss – compare a number of possible views about an issue or
problem and weigh up their relative importance
drawings – cash or other assets that the owner withdraws from the
business
economic empowerment – enhancing the ability of people to take
control of their lives and make responsible economic decisions
economic growth – an increase in the economic activity of the
country which results in a rise in the standard of living
economy – an area in which production, consumption and exchange
takes place
employee contributions – money deducted from the employee’s
salary towards a particular fund (e.g. medical aid, Unemployment
Insurance Fund)
employer contributions – additional contributions by the employer
towards the various employee funds (e.g. Unemployment Insurance Fund)
entrepreneur – a person with a good idea who combines the factors
of production to produce goods and services
ethics – the moral values and principles that set the standards of good
and proper conduct for people and organisations
evaluate – compare a number of views about an issue or problem and
weigh up their relative importance (like discuss); a final judgement is
essential
examine – break down a problem or an issue in order to understand it
exchange – trading goods and services for money
externality – third-party effect; a consequence of an economic activity
which affects other parties without this being reflected in market prices
factors of production – the physical, financial and human resources
used in production
final accounts – accounts that are prepared for the determination
of profit or loss and the distribution of these in accordance with
accounting practice

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financial accounting – financial information primarily for
internal use
financial period – a predetermined timeline for financial activities
financial statement – final report reflecting financial results and
position for a given period in accordance with accounting practice
fixed costs – costs that remain the same regardless of the level of
production
franchise – the right to run a business using the name and idea of an
established person
Generally Accepted Accounting Practices (GAAP) – concepts
and principles according to accounting standards regulated by the
Companies Act (Act No. 61 of 1993), and which are acceptable in the
financial world
global economy – the world-wide economy
human right – a right that belongs to all persons
indigenous – originating in the region or country where found;
native
indirect labour costs – the salaries and wages paid to the employees
who are not directly involved in the manufacture of a good
indirect material costs – the cost of the raw materials used in the
manufacturing process, which are either not directly identifiable in
the finished goods or are a relatively insignificant part of the finished
goods
insurance – providing financial protection in the event of loss
internal audit – an independent objective assurance and consulting
activity designed to add value and improve an organisation’s operation
internal control – an action taken by management to enhance the
likelihood that established objectives and goals will be achieved
International Financial Reporting Standards (IFRS) – a single
set of high-quality financial reporting standards, developed by the
International Accounting Standards Board (IASB), which is fast
becoming the global standard for the preparation of public company
financial statements
inventory – various stocks on hand for resale or manufacturing
purposes
investigate – to look for evidence, explain and analyse (e.g. investigate
why the government chose to increase interest rates in July)
King Code – a report drawn up by a South African committee
chaired by former High Court judge Mervyn King, which sets out
the principles and guidelines relating to good and ethical corporate
governance
macro-economics – the part of Economics concerned with large-scale
or general economic factors (e.g. interest rates, national productivity)
managerial accounting – provides financial information primarily for
internal use

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marginalised – having been pushed to the margins or edges (e.g.
marginalised people – people who have been pushed to the edge of
economic activity – the poorest, the unemployed, those most vulnerable)
market – the interface of buyers and sellers that influences the price of
a good or service
marketing mix – the combination of price, product, place and
promotion to make a good or service desirable to the consumer
micro-economics – the part of Economics concerned with single
factors and focusing on the smallest decision-making unit
mortgage bond – a loan taken out at a commercial bank in order to
buy property, which is repaid over a long period (usually 20 years) and
is classified as a non-current liability
need – the desire for a good or a service
needs analysis – identifying the needs of customers
non-profit organisation – an organisation whose major focus point is
service delivery and not profit
price – the amount of money paid for a good or service
production cost – various costs incurred in the production of a good
productivity – a measurement of the output of labour in production
profitability – a business’s ability to generate profit and is a measure
of how well a business has performed
projected Income Statement – a forecast of future revenue and
expenditure
sustainability – the ability to maintain economic, social and
environmental resources, by operating in a manner that does not
jeopardise our current and future social, environmental and economic
well-being
sustainable development – development that meets the needs of the
present without compromising the ability of future generations to
meet their own needs
tangible assets – all fixed assets (moveable and non-moveable)
trade union – an association established by workers to look after their
interests (e.g. salaries, working conditions)
transparency – an open and honest way of doing things that allows
other people to know exactly what you are doing and does not seek to
hide the truth
variable costs – the costs that change with the level of production
ventures – commercial undertakings where there is a possibility of loss
as well as profit
vulnerable – exposed to attack or harm, either physical or emotional
(e.g. economically, women, children, the elderly, the handicapped,
the poor)
want – a need backed by the willingness to sacrifice resources to satisfy it
workplace forum – committee of workers operating at the workplace
to address issues that concern them directly

RESOURCES 323

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5. Lesson plan template

Topic of lesson:

Term/Week/Learner’s
Book page reference/
Time
Curriculum and
Assessment Policy
Statement (CAPS)
content:
Resources:

New words and


concepts:

Preparation:

Teaching the topic


(guidelines for each
lesson):

Answers for activities:

Informal assessment
of relevant activities:

Consolidation/
extension activities and
answers:

324 RESOURCES

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5. Assessment Templates
1. Self–assessment template 326
2. Peer assessment template 327
3. Group assessment template  328

325

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1. Self-assessment template

EMS 9 TG (ENG).indb 326


326
My name: ___________________________________________________________________________________

Date: __________________________________________ Activity: ___________________________________


Choose one of the columns to record how well you did this activity.

7 6 5 4 3 2 1
Outstanding Meritorious Substantial Adequate Moderate Elementary Not achieved
(80—100%) (70—79%) (60—69%) (50—59%) (40—49%) (30—39%) (0—29%)
I understood exactly I understood what to I understood what to I understood more or I needed some help I needed quite a lot I did not understand
what to do and did do very well and did do well and did good less what to do and and completed some of help to do this. I the work at all. I need
outstanding work. very good work. work. completed most of of the work. was not sure what a lot of help.

ASSESSMENT TEMPLATES
the work. to do.

Comments on my work
1. What I liked about my work
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________

2. How I can improve my work


____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________

6/5/13 6:23:23 PM
EMS 9 TG (ENG).indb 327
2. Peer assessment template
My name: ___________________________________________________________________________________
My partner’s name: __________________________________________________________________________
Date: ___________________________________ Activity: __________________________________________
Choose one of the columns to record how well your friend did this activity.

7 6 5 4 3 2 1
Outstanding Meritorious Substantial Adequate Moderate Elementary Not achieved
(80—100%) (70—79%) (60—69%) (50—59%) (40—49%) (30—39%) (0—29%)
I cannot find There are not many There are a few I think this needs a I think my partner I don’t think my I don’t think my
anything wrong things that can be things that can be bit more work and needs some help with partner understood partner understands
with this work. It is improved. It is very improved, but I think then it will be good. this. everything very well. this work at all.
excellent. good. this is good.

Comments on my partner’s work


1. What I liked about my partner’s work
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________

2. How my partner can improve his/her work


____________________________________________________________________________________________
____________________________________________________________________________________________

ASSESSMENT TEMPLATES
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________

327

6/5/13 6:23:23 PM
3. Group assessment template

EMS 9 TG (ENG).indb 328


328
Names: _____________________________________________________________________________________
Date: ________________________________________Activity: ______________________________________
Choose one column to show how well your group did this activity.

Criteria 7 6 5 4 3 2 1
Outstanding Meritorious Substantial Adequate Moderate Elementary Not achieved
(80—100%) (70—79%) (60—69%) (50—59%) (40—49%) (30—39%) (0—29%)
We made decisions
together
Everyone contributed

ASSESSMENT TEMPLATES
ideas
We gave each other a
turn to talk
We followed the
instructions
We used the time to
work together

Comments on our group’s work


1. What I liked about my group’s work
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________

2. How we as a group can improve our work


____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________

6/5/13 6:23:23 PM
6. Source documents and
journal templates
1. Cash Payments Journal 330
2. Cash Receipts Journal  331
3. General Ledger account 332
4. Trial Balance  333
5. Debtors Ledger  334
6. Creditors Ledger 334
7. Accounting Equation 335
8. Debtors Journal 335
9. Creditors Journal  336
10. Deposit slip 337
11. Cheque and cheque counterfoil 337
12. Receipt 338
13. Cash Invoice 338

329

EMS 9 TG (ENG).indb 329 6/5/13 6:23:23 PM


1.

EMS 9 TG (ENG).indb 330


330
Cash Payments Journal of _________________________for ______________ CPJ___
Doc. Day Name of payee Fol. Bank Stationery Wages Sundry accounts
no.
Amount Fol. Details

SOURCE DOCUMENTS AND JOURNAL TEMPLATES

6/5/13 6:23:23 PM
EMS 9 TG (ENG).indb 331
2.

Cash Receipts Journal of _________________________for ______________ CRJ___


Doc. Day Details Fol. Analysis of receipts Bank Current Income Sundry accounts
no.
Amount Fol. Details

SOURCE DOCUMENTS AND JOURNAL TEMPLATES


331

6/5/13 6:23:24 PM
3.

General Ledger of _______________________

________________________________ account
Dr _______________________ ___ Cr

Date Details Fol. Amount Date Details Fol. Amount

Dr _______________________ ___ Cr

Date Details Fol. Amount Date Details Fol. Amount

Dr _______________________ ___ Cr

Date Details Fol. Amount Date Details Fol. Amount

Dr _______________________ ___ Cr

Date Details Fol. Amount Date Details Fol. Amount

332 SOURCE DOCUMENTS AND JOURNAL TEMPLATES

EMS 9 TG (ENG).indb 332 6/5/13 6:23:24 PM


4.
Trial Balance of _________________________ on ___________________

Balance Sheet accounts Fol. Debit Credit

Nominal accounts

SOURCE DOCUMENTS AND JOURNAL TEMPLATES 333

EMS 9 TG (ENG).indb 333 6/5/13 6:23:24 PM


5.
Debtors Ledger of _________________________

_________________________________________ _____
Date Details/Document no. Fol. Debit (+) Credit (—) Balance

6.
Creditors Ledger of _________________________

_________________________________________ _____
Date Details/Document no. Fol. Debit (—) Credit (+) Balance

334 SOURCE DOCUMENTS AND JOURNAL TEMPLATES

EMS 9 TG (ENG).indb 334 6/5/13 6:23:24 PM


7.
Assets Owner’s Equity Liabilities
Effect Reason Effect Reason Effect Reason

8.
Debtors Journal of ________________________________________ DJ____
Doc. Day Debtor Fol. Sales Cost of sales
no.

SOURCE DOCUMENTS AND JOURNAL TEMPLATES 335

EMS 9 TG (ENG).indb 335 6/5/13 6:23:24 PM


9.
Creditors Journal of ________________________________________ CJ____
Doc. Day Creditor Fol. Creditors Trading Stationery Sundry accounts
no. control stock
Amount Fol. Details

336 SOURCE DOCUMENTS AND JOURNAL TEMPLATES

EMS 9 TG (ENG).indb 336 6/5/13 6:23:24 PM


10.

DEPOSIT SLIP
Bank
Date _______________________________________
Cash being deposited
Credit Account number
R c
Note
Silver
Bronze
Money orders
Sub-total
Cheques Drawer’s Bank
Branch name / clearance code
deposited name
1
2
3
Details of depositor
Name Total R
Signature Tel.
Deposit reference

11.
004-003
TO CHEQUE
FOR BRANCH
Balance R

Deposit R Pay:
Subtotal R The amount of rand R
Other debits R cent or Bearer
This cheque R

Balance R 123 004003 4569876009 18


123

SOURCE DOCUMENTS AND JOURNAL TEMPLATES 337

EMS 9 TG (ENG).indb 337 6/5/13 6:23:24 PM


12.

NO.
RECEIPT

Received from:

The amount of:


R

For payment of:

13.

NO.
CASH INVOICE
Date:

TO:

BOUGHT FROM:

Quantity Description Unit price Amount

E & OE

338 SOURCE DOCUMENTS AND JOURNAL TEMPLATES

EMS 9 TG (ENG).indb 338 6/5/13 6:23:24 PM


Formal Assessment Task 1: Answer sheet

7. Documents
You can use this section to file the Curriculum and Assessment
Policy Statement (CAPS) for Economic and Management Sciences
(Grades 7—9) as well as other documentation received from the
Department of Basic Education.

339

EMS 9 TG (ENG).indb 339 6/5/13 6:23:25 PM


EMS 9 TG (ENG).indb 340 6/5/13 6:23:25 PM
Grade
Study & Master
9 Economic and
Management Sciences
Study & Master Economic and Management Sciences has been
especially developed by an experienced author team for the
Curriculum and Assessment Policy Statement (CAPS). This new
and easy-to-use course helps learners to master essential content
and skills in Economic and Management Sciences.

The comprehensive Learner’s Book:


• explains key concepts as well as economic and accounting
terms in accessible language
• includes real-life examples
• provides glossary boxes in the margin as well as a
comprehensive glossary in the back for easy reference
• offers opportunities for frequent consolidation in its Review
and Exam Preparation sections.

The innovative Teacher’s Guide includes:


• extended contents pages for easy daily planning
• guidance on the teaching and assessment of each lesson
• answers to all the activities in the Learner’s Book
• a comprehensive glossary
• photocopiable assessment tasks, tests and exemplar
examination papers and memorandums
• photocopiable templates and resources for the teacher.

Marietjie Barnard’s extended teaching experience has manifested in her being awarded for the National
Teaching Awards and in excellent national results. She has previously published with Cambridge when she
was the lead author of an Accounting course aimed at bridging the gap between Grades 9 and 10.

www.cup.co.za

SM_EMS_G9_TG_CAPS_ENG.indd 2 2013/06/05 5:59 PM

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