Directorate: Curriculum FET

SUBJECT and GRADE Mathematical Literacy gr.11

TERM 3 Week 5
TOPIC Financial documents- Workplace
AIMS OF LESSON Work with the following financial documents:
- documents related to the workplace and small business finances, including:
- salary slips; budgets; quotations; invoices; receipts; bank documents
In order to:
Understand the terminology used in documents, including:
• date or time period of the document
• opening and closing balance
• credit and debit
• payment due
• minimum payment
• tariff cost
• income, expenses, profit / loss
• VAT
• UIF, nett salary, gross salary, deductions
• items and quantities
Explain and demonstrate how the values that appear in the documents are determined.

RESOURCES Paper based resources Digital resources

Platinum Mathematical Literacy Learner's Book https://www.youtube.com/watch?v=GF57Fx3jvTg
The answer series GR. 11 and 12 https://www.youtube.com/watch?v=zVM6MoCfJsE
Your textbook
INTRODUCTION Interpreting and understanding financial documents is an important life skill. The skill empowers you to make
responsible financial decisions.

This lesson links to the previous one as we are still studying financial documents, but this week we are looking
at sources of income within a workplace / small business context

CONCEPTS AND Salary slips

SKILLS A salary slip is a record of information about compensation.
By law, the employer must provide employees with a salary slip that contains the following information:

Name, ID
SALARY SLIP number and
employee
number of
employee
Paypoint nr. Employee number Surname and Initials ID number
358/12855 DM002587 B. Davies 7405210058083
Job title: Carve Medical tax Number of
Air hostess credits: dependents: Amounts
deducted by
Principal member + 1 the employer
dependent from the
Payment Date: Date of appointment: Leave available Sick leave available salary BEFORE
20190531 19950101 22 32 it is paid into
INCOME DEDUCTIONS the
employee's
Description Amount Description Amount account
Basic salary 10 995.00 PAYE 5 156.57
Overtime 1 400.00 Medical aid
contribution 1 250.00 Paid to
Pension fund 824.63 SARS
UIF B
Usually 1%
of Gross
Gross income A Total deductions C Income
Nett income D

Please note:
A salary is a fixed payment for a fixed period based on an annual total. It is not based on the number of hours
worked.

A wage is a payment for work based on an hourly / daily / weekly / piecework rate.
Budgets

Just like with a personal budget, a business must also plan carefully around its income and expenses. Refer to
the notes on budgets and income and expenditure statements in week four's lesson.

Remember:
 A budget is a list of planned expenses
 An income and expenditure statement is a list of actual expenses and income

Quotations
A quote is an estimate of costs issued by a service provider. It is usually only valid for a specific time period.
Quotations can be used to ensure that the consumer uses the cheapest supplier.
 QUOTATION: INSTALLATION OF WATER TANK:

QUOTE
Salesperson: Quinton Bali
Quote for:
Mr. Charles Mabele
Kerkstraat 15
Bellville
Cape Town, 7580
Quote valid until: 2018/06/24

AMT DESCRIPTION UNIT AMOUNT

PRICE
1 WATER TANK R 9 300.00 R 9 300.00
3 FILTERS R 1 500.00 R 4 500.00
1 WATER PUMP R 2 180.00 R 2 180.00
1 WORK R 5 400.00 R 5 400.00
SUBTOTAL R 21 380.00
TAX RATE 15.00%
VAT R 3 207.00
TOTAL R 24 587.00

Invoices
An invoice is a list of goods or services rendered, as well as a statement of the amount owed. It is important to
note that “unit price” or a “quantity” is often given, which then needs to be multiplied by the number of items
purchased in order to get the total price. VAT is shown separately on an invoice, so that VAT-registered
companies can claim VAT back from the government.
The important features of an invoice are illustrated below:

Exemplar questions:
1. Who is the service provider?
2. How many hubcaps were purchased?
3. What is the unit cost for labour (A)?
4. Calculate the balance due for this invoice.
 Answers
1. Express wheels
2. R3 400 ÷ R850 = 4
3. R4 500 ÷ 7.5 = R600
4. Subtotal = R 41 120.18
VAT (@ 14%) = R41 120.18 × 14% = R5 756.83
⸫Balance due = R 5756,83 + R41 120, 18 = R46 877,01
Question 1
ACTIVITIES /
ASSESSMENT Consider the salary slip and answer the questions that follow:

SALARY SLIP

16 Ridge way, Lanseria

Pay point Employee number Surname and Initials ID number

358/12855 DM002587 B. Davies 7405210058083
Job title Carve Medical tax Number of
Air hostess credits: dependents:
Principal member + 1
dependent
Payment Date: Date of appointment: Leave available Sick leave available
20190531 19950101 22 32
INCOME DEDUCTIONS
Description Amount Description Amount
Basic salary 10 995.00 Current tax 5 156.57
Overtime 1 400.00 Medical aid
contribution 1 250.00
Pension fund 824.63
UIF B

Gross income A Total deductions D

Nett income E
 a) On what date was Ms. Davies appointed?
b) For which month and year is the salary slip?
c) Determine Ms. Davies' age.
d) Determine the value of A, Me. Davies' gross income
e) Using the information in Table 1, TABLE 1: UIF
calculate the value of B, Ms. Davies’ 1% of gross income up to and including R14 872
contribution to UIF. Income of more than R14 872 - a fixed contribution of
R148,72
f) What does the abbreviation UIF stand
for?
g) Calculate D, The total deductions
h) Calculate E, ms. Davies' nett income

Question 2

SNYMAN AND PARTNERS

SALARY SLIP
EMPLOYEE SEPTEMBER 2018
H Retief Payment Date 20180928
ID number 6811250106087 Tax number 15673/89
Date of appointment 19970801 Bank NEDBANK
Account number 6433033
Branch Pretoria

EARNINGS DEDUCTIONS
Item Item
0001 Basic salary R32 658,98 0002 Tax RSA R9 714.22
0003 Motor scheme R 2 784.32 0012 Pension R2 445,67
0596 Medical aid R3 089.00
0934 Union fees R 79,00
0930 UIF RB

GROSS SALARY A TOTAL DEDUCTIONS C

NETT SALARY D
 a) Calculate the values of A, B, C and D.
b) Enter the day and month of H Retief's birthday
c) What percentage (up to 1 decimal number) is the pension deduction of the basic salary?
d) Calculate what percentage of his gross salary he receives after deductions.
e) How much will the contribution of Snyman and partners be to the UIF?
Question 3
Pieter runs a small business from his garage where he services cars. He is drawing up a budget for September.
3.1
Income Rands Expenses Rands
23 Services 17 250 Parts B
20 Car washes 1 600 Detergents 240.00
Water 250.00
Other 500.00
Total income A Total expenses 3 630.00
a) Calculate the price per car service
b) Calculate the Total income A
c) Calculate the Parts, B
d) How much profit or loss does Pieter think he will make?

3.2 At the end of September, Pieter prepares an income and expenditure statement for his car service business.
Pieter had the following expenses: The water bill was R367,98, cleaning products worked out at R199,99,
the spare parts for the month amounted to R3 687,07, other expenses amounted to R46,99. The actual
income was 32 Services and 45 car washes, and two of the customers also appreciated his work so much
that they each gave him an extra tip, one customer gave R100 and the other one gave R200.
(a) Complete the INCOME and EXPENDITURE statement for September
INCOME RANDS EXPENSES RANDS

TOTAL TOTAL
(b) Determine whether Pieter made a profit or a loss and the amount thereof.
(c) What suggestions can you make to Pieter to improve his small business?

Question 4
Johannes, the owner of Tutombu Construction Company in Centurion, is interested in renting construction
equipment to prepare a piece of land to build a new shopping center. A quotation from HB Williams Plant Hire
is provided below
 a) Write down the last date on which the given quotation will be valid.
b) Calculate the missing values A and B.
c) What does VAT stand for?
d) Calculate the 14% VAT payable on the total amount.
e) Calculate the deposit amount that John will have to pay before the work can begin.

Question 5
 a) Which company is the service provider?

b) What is Mr Finlay's cell phone number?

c) What kind of cellphone do you think Mr Finlay owns? Explain your answer.
d) For which service did he receive a 100%100% refund? Explain your answer.
e) Does Mr Finlay receive any other discounts? If so, what where they?
f) What is the most expensive item in the list of transactions? What do you think this amount is for?
g) How do we know that Mr Finlay has been an MTN client since at least November 2011?
h) Can Mr Finlay make calls to international numbers on his phone? Explain your answer.
i) How many days does he have to query this invoice?
j) MTN includes the average spent per month, over the last 66 months. Show how they calculate this average.
k) Show how MTN calculated the 14% VAT that is added to the total excluding VAT

ANSWERS Question 1
a) January 1, 1995
b) May 2019
c) May 1974 to May 2019 = 45
d) R10 995 + R1 400 = R 12 395
e) R 12 395 × 1% = R 123,95
f) Unemployment insurance fund
g) R7 355,15
h) R5 039,85

Question 2
a) A = 35,443.30
B = 326.59
C = 15 654.48
D = 19 788.82
b) November 25
 2445 ,67
c) ×100=7 , 5 %
32658 , 98

19 788 , 82
d) ×100=55 , 83 %
35 443 , 30
e) 29.5 R326,59

Question 3
17250
3.1 a) =R 750
23
a) R18 850
b) R3 630 -500-250-240 = R2 640

3.2. a)

INCOME RANDS EXPENSES RANDS

32×750 SERVICES 24 000.00 WATER 367.98
45×80 WASHES 3,600.00 CLEANING 199.99
MATERIALS
FEES 300.00 PARTS 3,687.07
OTHER 46.99
R27 900.00 R4 302.03

b) Profit: R23,597.97
c) Slightly increase prices of services and car washes

Question 4
a) June 15, 2016
b) A: R62 480 ÷ R220 = R 284
B: 300 × R315 = R103 500
c) Value added tax
d) R535 680 × 14% = R74 995.20.
e) R 74 995,20 × 60% = R44 997,12 (VAT incl.)
100
R44 997,12 × =R 39 471 , 16
114
 Question 5
a) MTN
b) 081 423 7012
c) A Blackberry - the transaction column lists Blackberry internet services.
d) He received a full discount for his Blackberry Internet Service. We know this because the same amount
that is added to his account (R51,75) is also subtracted.
e) Mr Finlay received a R7,02 discount for “CLI Monthly Discount”
f) The most expensive item is “MTN 200 TopUp Subscription”. This is the fixed amount that Mr Finlay
pays for his cellphone contract (an MTN TopUp 200 type contract) each month.
g) The invoice includes Mr Finlay's last 6 billing periods, the first of which is dated 11-2011.
h) Yes. One of the “Additional Services” listed in the grey column on the left-hand side of the page is
“Allow International Calling”
i) Mr Finlay has 30days to query the invoice.
amount
Total months
j) Average = 6
Number of months

R 398+ 299+299+299+299+ 299

=
6 months

1893
=
6
=R315,50
k) Total excluding VAT = R262,28
14
14% of R262,28 = R262,28× = R36,72
100
CONSOLIDATION It is important to read carefully when working with financial documents to avoid making the wrong financial decisions.
Remember to refer to your Textbook and other sources to study different documents.
VALUES Knowledge of financial documents ensures well-thought-out, responsible financial decisions in the future.