EMS Classic Grade 9 Educator’s Guide · China COMMUNISM/PLANNED United States CAPITALISM /MARKET...

Lisa Akerman | Séan Topper | Yvette Russell | Cathlyn Dracatos

CAPS Aligned

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Educator’s GuideEMS Classic Grade 9

Economic and ManagementSciences – Grade 9 Classic

Educator’s Guide

CAPS Aligned

Lisa Akerman

Séan Topper

Yvette Russell

Cathlyn Dracatos

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EMS Classic Grade 9 Educator’s Guide

© 2018 Excom Publishers

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NOTE: Use of pronouns: Any gender shall include the other gender, and the singular shall include the plural and vice versa.

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EMS Classic Grade 9 Educator’s Guide Table of Contents


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Chapter 1 The Economy 1

Chapter 2 Financial Literacy 9

Chapter 3 Entreperneurship 40

Notes on using the Educators Guide: ○ Time does not allow for a group of learners to do every exercise in the books. In many cases, there are

several class discussion or research options throughout the chapter. The Educator must decide which are the most appropriate ones for that specific group of learners.

○ Some exercises using Rubrics or other Marking Guidelines do not require further Memoranda.

○ Some exercises are self-reflection, or group/class discussions and cannot be given specific Memoranda, especially when they are based on newspaper articles, website information or current affairs.

○ Other exercises and case studies have Memoranda in keyword format, not full sentences such as the learners are required to use. These are merely guidelines for the Educator who should keep in mind that answers could cover a broader spectrum than given here.

○ Learners should be encouraged to give their own opinion, motivations etc. In many cases the process is more important than the actual answer i.e. assess thinking process rather than simply factual knowledge.

PLEASE NOTE:

This Educator’s Guide provides answers for Exercises in the EMS Classic Textbook, Grade 9.

1

EMS Classic Grade 9 Educator’s Guide Chapter 1


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Task 1:

Example only

Communism/Command • Full Government Control

Capitalism/Market • Less Government Control

Task 2:

Identify the economic system of the countries below, namely Capitalist, socialism or communist.

Country Predominate Economic System

China COMMUNISM/PLANNED

United States CAPITALISM /MARKET

Canada CAPITALISM /MARKET

Cuba COMMUNISM/PLANNED

Zimbabwe COMMUNISM/PLANNED

South Africa SOCIALIST/MIXED

1. Another name for capitalism is market system

2. In a free market system businesses try to maximize their profits

3. If prices are determined by demand and supply, it is a capitalist system.

4. South Africa has a mixed economy.

5. Under a system of communism/planned all businesses are owned by the government.

6. The businesses that the government owns in South Africa form part of the public sector.

7. Businesses owned by private entrepreneurs operate in the private sector.

Chapter 1: THE ECONOMY

Unit 1: Economic Systems

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8. Any other relevant and suitable examples.

Service: Reason not performed by Private Sector

Defence/Police It is not a profit making organization.

EducationLegally all children have to go to school until they reach Grade 9 or the age of 15. This is a law which Government has laid down so they must supply the necessary facilities for citizens to be able to uphold this law.

Public Health Care According to our new Constitution, we all have rights and one of them is the right to health care.

Infrastructure The Government is responsible for providing these services so that the private enterprise can use them in order to make money.

Conservation Looking after our natural resources for all citizens to enjoy.

Task 3:

1. Students will use own words but essentially answer needs to encapsulate that A1 involves artificial (not produced by a human brain/computer generated information) decision making based on data received.

2. The contribution of AI will be substantial – a 14% projected growth in GDP as a result of the use of AI by 2030 (which is only 12 years away!)

3. Yes – Human intelligence will be required to determine the strategic and ethical application of AI and be responsible for “providing challenge and oversight to (AI) decisions”.

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Task 4:

Household – Two households, Thando and his workers.

Households own all factors of production. Thando acts as an entrepreneur and supplies jobs to his workers. However, without the workers selling their labour, Thando will not be able to run his business (farm).

Business – Thando and business he trades with. Businesses employ factors of production.

Businesses buy factors of production from households. In return for using the factors of production, the business will remunerate the factors of production. Goods will then be sold to satisfy the needs of the target market. Businesses are profit driven and must pay tax to the government on all profit made.

Foreign sector – Importing and exporting.

Thando exports some of his produce. This brings money into South Africa and help to stabilize the exchange rate.

Government – Taxes, RDP

Government is responsible to provide services to the citizens of the country. These services include police, justice, education, health etc. In order to provide these services Government needs money. All households must pay tax on income. Businesses are taxed on profits made. The South African Government has a special task to develop previously disadvantage communities. This is called the RDP – Reconstruction and Development Program.

Interdependence: (How all the sectors are interlinked?)

The Business (Thando) employs labour from other households in exchange for wages and salaries. The business uses the money that it generates to purchase other capital goods to increase the business capacity. The Business exports goods overseas and thus receives money in return. This money is then invested back into the business or invested in financial institutions. Government claims a portion of the profits for tax and also provides the basic infrastructure in which the business can operate.

Unit 2: The Circular Flow

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Task 5:

Capital - Money invested into the production of the textbook. This could also take the form of fixed assets such as printers, computers.

Entrepreneurship - The authors of this EMS textbook who planned the writing and printing of the books and then also the marketing and selling of it.

Land - Trees which were used to produce paper which in turn was manufactured into a book.

Labour - Foresters, paper mills, textbook writers

Task 6:

Each learner’s answer will be different, and Educators must check that the correct exchange rate is used. Below is an example given.

1. Price x Units per ZAR (in particular currency)

Name of product:

Nike shoes

Rand Value

R1 400.00

Exchange rate

R1 = $0.13

Imported Currency Value

$103.87

2. South African’s would pay less for items imported from America.

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Unit 3: Price Theory

Price per ice cream Quantity demanded (purchased) Total spent

R10 500 R5 000

R8 750 R6 000

R6 1 000 R6 000

R4 2 000 R8 000

R2 2 200 R4 400

Supply table, the supply curve and the law of supply:

Price per unit of ice cream Quantity offered/supplied

R3 100

R4 200

R5 300

R6 400

R7 500

02468

1012

500 750 1000 2000 2 200

Price

-Ran

d

Quantity

Demand Graph

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Price per ice cream Quantity demanded Quantity supplied Equilibrium?

R10 100 500 Supply 400 > demand

R8 200 400 Supply 200 > demand

R6 300 300 Equilibrium

R4 400 200 Demand 200 > supply

R2 500 100 Demand 400 > supply

Equilibrium price:

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Task 7:

1. The place where goods and services are bought and sold is called the MARKET. (1)

2. Prices of goods and services are determined by SUPPLY and DEMAND. (2)

3. The higher the demand for a product, the HIGHER the price will be, if the supply stays constant (1)

4. If there are a large number of suppliers selling the same product, there will be competition between them to sell to the same target market. It can therefore be said that an excess supply will lead to LOWER prices. (1)

5. The exchange value of an article is the same as the SELLING PRICE of the article. (1)

6. One of the advantages of competition is that businesses will try to sell the best QUALITY product at the LOWEST price to attract more customers. (2)

Task 8:

1.

Source: www.coveringdelta.wordpress.com [Downloaded 8 October 20xx]

2. The equilibrium point has shifted to the right. This means that the price that the customers are prepared to pay for the product has increased and the quantity has increased too. In other words, more goods can be supplied.

3.

Source: http://www.uri.edu/artsci/newecn/Classes/Art/INT1/Eco/S_D/Comparative.Statics.html [Downloaded 8 October 20xx]

4. The equilibrium point has shifted to the left. The price has increased but the quantity supplied has decreased. So the product becomes more expensive.

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Task 9:

NUMSA agrees to wage deal in steel and engineering industry:

1. A wage agreement is usually the result of Collective Bargaining which is a process of negotiation between employers and a group of employees. It is an agreement that regulates and stipulates working salaries, working conditions, benefits, rights for workers who are in full-time employment.

2. a) Solidarity and NUMSA

b) Steel and Engineering Industries Federation of South Africa

3. The National Union of Metalworkers of South Africa (Numsa) is the largest trade union in South Africa and the biggest union of metalworkers on the continent.

Source: http://www.huffingtonpost.co.za/camalita-naicker/where-numsa-sas-biggest-and-most-militant-trade-union-is-goin_a_21632347/ [Downloaded: 25 January 2018]

NOTE: COSATA is a Congress of Unions, and the above information may change. Educators need to check at the time of doing the exercise.

4. Mouthpiece for worker’s rights

◦ Collective bargaining for its members

◦ Improve working conditions of employment

◦ Negotiate on behalf of employees

◦ Offer legal advice

◦ Represent employees in disciplinary hearing

◦ Any other relevant

5. Students’ articles’ will dictate answers. Ensure that they address the three issues specifically.

Task 10:

List three careers that you are personally interested in, and the Trade Unions that represent them:

Unit 4: Trade Unions

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Task 11:

Discount in Rand Amount Paid

1 780 4 420

2 11 445,25 80 116,75

3 3,15 41,85

4 309 927

5 146,88 5 728,12

6 199,13 357,60

7 5 128 5 128

8 1656,90 3 866,10

9 181,80 828,20

10 340 8 160

Chapter 2: FINANCIAL LITERACY

Unit 1: Revision

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Task 12.1:

ASSETS = OWNER’S EQUITY + LIABILITIES

Number Amount Reason Amount Reason Amount Reason

1 +800 000 Bank increases +800 000 Capital increases

2 +850 000 Land & Buildings purchased

-850 000 Bank increases

3 +6 000 Bank increases +6 000 Current inc (income)

4 -1 500 Bank decreases -1 500 Water & Elec (exp)

5 -2 000 Bank decreases -2 000 Consumable stores (exp)

6 -13 000 Bank decreases -13 000 Wages (expense)

7 +6 450 Equipment increases

-6 450 Bank decreases

8 +9 000 Equipment increases

-9 000 Bank decreases

9 -4 000 Bank decreases -4 000 Advertising (expense)

10 +25 985 Bank increases +25 985 Current inc (income)

11 -11 700 Bank decreases

+11 700 Equipment increases

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Task 12.2:

No. Journal Source Document Account Debit Account Credit

1 CRJ Duplicate Receipt Bank Capital

2 CPJ Cheque Counterfoil Land and Buildings Bank

3 CRJ Cash Register Roll Bank Current Income

4 CPJ Cheque Counterfoil Electricity Bank

5 CPJ Cheque Counterfoil Consumable Stores Bank

6 CPJ Cheque Counterfoil Wages Bank

7 CPJ Cheque Counterfoil Equipment Bank


9 CPJ Cheque Counterfoil Advertising Bank

10 CRJ Cash Register Roll Bank Current Income


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Task 13:

Cash Receipts Journal of Invisible Cleaners for January 20xx CRJ1

Doc D Details Fol Analysis of Receipts Bank Current

IncomeSundry Amount Fol Details

R01 1 Mr Muscle 205 000 - 205 000 205 000 - Capital

crr 3 Services Rendered 400 - 400 400 -

b/s 7 Books Galore 4 200 4 200 - Rent Income

R02 11 Mr Muscle 70 000 - 70 000 70 000 - Capital

crr 18

Services Rendered 1 790 - 1 790 1 790 -

crr 30

Services Rendered 5 759 - 5 759 5 759 -

287 149 7 949 - 279 200 -

Task 14:

Cash Receipts Journal of DJ’s for ALL for January 20xx CRJ1



R01 1 Mr Kay 500 000 - 500 000 - 500 000 - Capital

crr 3 Services Rendered 4 000 - 4 000 - 4 000 -

bs 6 ABSA Bank 250 - 250 - Interest Income

R02 15 Mr Kay 50 000 - 50 000 - 50 000 - Capital

crr 19

Services Rendered 21 525 - 21 525 - 21 525 -

crr 20

Services Rendered 5 600 - 5 600 - 5 600 -

R03 29 Mr Kay 50 000 - 50 000 - 50 000 - Capital

631 375 - 31 125 - 600 250 -

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Task 15:

Cash Receipts Journal of Zippy’s Waste Removal for October 20xx CRJ1



R01 1 Zola Seven 300 000 - 300 000 - Capital

crr Services Rendered 900 - 300 900 - 900 -

crr 4 Services Rendered 880 - 880 - 880 -

crr 9 Services Rendered 1 430 - 1 430 - 1 430 -

R02 15 Mr Homeless 5 000 - 5 000 - Rent Income

R03 Zola Seven 50 000 - 55 000 - 50 000 - Capital

crr 23 Services Rendered 750 - 750 - 750 -

b/s 28 FNB 30 - 30 - 30 - Interest

Income

358 990 - 3 960 - 355 030 -

Task 16:

Cash Payment Journal of Reds Hairdresser for January 20xx CPJ1

Doc Day Name of Payee Fol Bank Wages Stationery Sundry Amount Fol Details

Q 541 3 Doring

Distributors 5 550 - 5 550 -

542 Cash 14 000 - 14 000 -

543 5

Cresta Management Services

8 990 - 8 990 - Rent Expense

544 Teddy Suppliers 4 645 - 4 645 - Stationery

545 9 Cash 7 220 - 7 220 -

546 15 I Ivans 9 300 - 9 300 - Equipment 547 R Ramsy 6 900 - 6 900 - Trading

Inventory 548 21 Metro Cash and

Carry 1 200 - 1 200 -

549 Cash 4 625 - 4 625 -

550 30 Trip Repairs 4 880 - 4 880 - Repairs

551 Cash 10 300 - 10 300 -

77 610 - 36 145 - 6 750 - 34 715 -

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Task 17:

Cash Payment Journal of Eric’s Plumbers for June 20xx CPJ1

Doc Day Name of Payee Fol Bank Material Cost Equipment Sundry

Amount Fol Details

Q 222 1 Municipality 892 - 892 - Water and

Electricity

223 Fran’s Properties 5 600 - 5 600 - Rent Expense

224 Comp-Limited 10 000 - 10 000 -

225 5 Wobker Plumbers 2 563 - 2563 -

226 Sam’s Suppliers 785 - 785 - Stationery

227 8 Cash 4 156 - 4 156 - Wages

228 10 James’ Stores 4 887 - 4 887 -

229 15 ROPCC 1 580 - 1580 -

230 Hart’s Wholesalers 6 990 - 6 990 -

231 Cash 7 500 - 7 500 - Wages

232 26 Beta Stores 2 560 - 2 560 -

233 Telkom 4 100 - 4 100 - Telephone

234 29 Car CC 1 600 - 1 600 - Repairs

235 30 Sam’s Suppliers 450 - 450 - Stationery

53 663 - 4 143 - 2 4437 - 25 083 -

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Task 18:

Cash Receipt Journal of Topies Tailors for October 20xx CRJ1



R 01 1 Mrs Topies 200 000 00 200 000 - 200 000 - Capital

crr 4 Services rendered 12 000 00 12 000 - 12 000 -

crr 6 Services rendered 4 500 00 4 500 -

R 02 Hilda Cronje 2 220 00 6 720 - 2 220 - Rent income

R 03 11 Mrs Topies 205 000 00 205 000 - 205 000 - Capital

crr 24

Services rendered 6 890 00 6 890 - 6 890 -

430 610 - 23 390 - 407 220 -

Cash Payment Journal of Topies Tailors for October 20xx CPJ 1

Doc Day Name of Payee Fol Bank Stationery Wages Sundry Amount Fol Details

Q01 1 Colombo Estates 5 550 - 5 550 - Rent expense

02 4 Cash 3 170 - 3 170 -

03 6 Montana- Traders 55 - 55 -

04 10 Fielas Insureres 6 640 - 6 640 - Insurance

05 11 Sommer Lekker 980 - 980 - Packing material

06 Cash 5 900 - 5 900 -

07 15 Donkie Traders 2 850 - 2 850 -

08 Rhodes Furniture 11 000 - 11 000 - Equipment

09 23 Steve’s Motors 122 000 - 122 000 - Vehicles

10 25 Montana - Traders 145 - 145 -

11 30 Computer CC 4 000 - 4 000 - Equipment

162 290 - 3 050 - 9 070 - 150 170 -

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Task 19:

Cash Receipt Journal of Troy Hairdresser for January 20xx CRJ 1



R 01 3 Mrs Gabriella 395 000 395 000 Capital

Crr Services rendered 6 500 401 500 6 500

Crr 13 Services rendered 12 985 12 985 12 985

Crr 20 Services rendered 4 000 4 000

R 02 Mrs Mooi 105 000 109 000 105 000 Capital

Crr 29 Services rendered 775 775 775

524 260 24 260 500 000

Cash Payment Journal of Troy Hairdresser for January 20xx CPJ 1

Doc Day Name of Payee Fol Bank Equipment Wages Sundry Amount Fol Details

Q 01 3 Tina’s Traders 3 450 3 450

02 Dik-Daan Estates 5 980 5 980 Rent expense

03 10 Rooibos-Rand 6 700 6 700

04 13 Siembamba Estates 175 000 175 000 Land and

buildings 05 15 Jimmy’s 10 700 10 700

06 Bennies Dealers 1 600 1 600 Packing material

07 20 Cash 1 200 1 200

08 29 Cash 555 555

09 30 Tops traders 558 558 Stationery

205 743 20 850 1 755 183 138

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Task 20:

Cash Receipts Journal of Rambo Services - August 20xx CRJ1

Doc D Details Fol Analysisof receipt Bank Current


R01 1 R Rambo 78 000 - 78 000 - 78 000 - B1 Capital

CRR 10 Services rendered 7 125 - 7 125 - 7 125 -



R02 30 R. Rambo 49 300 - 49 300 - 49 300 - B1 Capital

R03 31 F. Frans 4 000 - 4 000 - 4 000 - N2 Rent income

144 307 - 13 007 - 131 300 -

B2 N1

Cash Payments Journal of Rambo Services - August 20xx CPJ1

Doc D Name of Payee Fol Bank Equipment Wages Sundry Amount Fol Detail

01 1 Fiela Frames 640 - 640 - N4 Stationery

02 Leon’s Estates 95 000 - 95 000 - B4 Land & Buildings

03 8 Silly Stores 3 880 - 3 880 -

04 13 Cats Dealers 6 700 - 6 700 -

05 15 C N A 962 - 962 - N4 Stationery

06 19 Toyota Dealers 1 105 - 1 105 - N5 Repairs

07 Steve’s CC 555 - 555 - N6 Packing material

08 22 Cash 1 890 - 1 890 -

09 25 Silly Stores 1 444 - 1 444 -

10 26 Cash 7 350 - 7 350 -

11 28 Durban Spa 5 830 - 5 830 - B5 Drawings

12 C N A 88 - 88 - N4 Stationery

13 30 Rob Robertse 7 600 - 7 600 - N7 Salary

133 044 12 024 - 9 240 - 111 780 -

B2 B3 N3

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General Ledger of Rambo Services

Balance Sheet Section

Capital B1

20xx

Aug1 Bank CRJ 78 000 00

30 Bank CRJ 49 300 00

127 300 00

Drawings B2

20xx Aug 28 Bank CPJ1 5 830 00

Land and Buildings B3

20xx Aug 1 Bank CPJ 95 000 00

Equipment B4

20xx Aug 31 Bank CPJ 12 024 00

Bank B5

20xx Aug 31 TotalReceipts CRJ 144 307 00 20xx

Aug 31 Total Payments CPJ 133 044 00

Balance C/d 11 263 00

144 307 00 144 307 00

Sept 1 Balance B/d 11 263 00

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Task 21:

Cash Receipts Journal of Dainfern CC for February 20xx CRJ1

Doc D Details Fol Analysis of Receipts

Bank Amount

Current Income

Sundry Amount Fol Details

R 01 1 Mrs. Randall 550 000 - 550 000 - 550 000 - B1 Capital


R 02 12 Mrs. Randall 100 000 - 100 000 - B1 Capital

CRR Services rendered 2 333 - 102 333 - 2 333 -

R 03 15 Baby Blue 4 100 - 4 100 - N2 Rent income

CRR Services rendered 755 - 4 855 - 755 -



671 644 - 17 544 654 100 -

B5 N1

Cash Payments Journal of Dainfern CC for February 20xx CPJ1

Doc D Name of Payee Fol Bank Wages Stationery Sundry Amount Fol Details

01 1 Dean Developers 250 000 - 250 000 - B2 Land and

Buildings

02 4 Municipality 560 - 560 - N5 Water and Electricity

03 6 Cash 1 500 - 1 500 -

04 FRB Partnership 480 - 480 -

05 9 Manie Motors 185 000 - 185 000 - B3 Vehicles

06 12 Cash 11 500 - 11 500 -

07 17 Mark-Traders 6 980 - 6 980 - N6 Packing material

08 22 Rina Jansen 2 500 - 2 500 - N7 Rent expense

09 28 Cash 4 230 - 4 230 -

10 Sam’s Stationery 8 700 - 8 700 -

471 450 17 230 9 180 445 040

B5 N3 N4

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General Ledger of Dainfern CC

Capital B1

20xx Feb 1 Bank CRJ1 550 000 -

12 Bank CRJ1 100 000 -

650 000 -

Land and Buildings B3 20xx Feb 1 Bank CPJ1 250 000 -

Vehicles B420xx Feb 8 Bank CPJ1 185 000 -

Bank B1 20xx Feb 28

Total Receipts or Sundry Accounts

CRJ1 671 644 - 20xx Feb 28

Total Payments or Sundry Accounts

CPJ1 471 450 -

Balance C/d 200 194 -

671 644 - 671 644 -

Mar 1 Balance B/d 200 194 -

Current Income N120xx Feb 28 Bank CRJ1 17 544 -

Rent Income N2

20xx Feb 15 Bank CRJ1 4 100 -

Wages N3 20xx Feb 28 Bank CPJ1 17 230 -

Stationery N4 20xx Feb 28 Bank CPJ1 9 180 -

Water and Electricity N5 20xx Feb 3 Bank CPJ1 560 -

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Task 22:

Cost price Mark-Up Selling price

1) R 100 R50 R150

2) R 880 10% R968

3) R4 200 25% R5 250

4) R999 5% R1 048.95

5) R909.09 10% R1 000

6) R2 000 30% R2 600

7) R4 217.86 40% R 5 905

8) R2 933.33 50% R4 400

9) R4 500 100% R9 000

10) R7 500 20% R9 000

Packing Material N6 20xx Feb 18 Bank CPJ1 6 980 -

Rent Expense N7 20xx Feb 21 Bank CPJ1 2 500 -

Unit 2: Cash Transactions of a trading business - Sole Trader

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Task 24:

Cash Receipt Journal of Vaughn Retailers for December 20xx CRJ 1

Doc Day Details FolAnalysis

of Receipts

Bank Sales Cost of sales

Debtors control


R 01 1 Ms

Vaughn 500 000 500 000 500 000 Capital

crr 5 Sales 10 500 10 500 10 500 7 500

crr 16 Sales 12 040 12 040 8 600

R 02 Ms

Vaughn 32 000 44 040 32 000 Capital

crr 18 Sales 18 200 18 200 18 220 13 000

crr 20 Sales 16 800 16 800 16 800 12 000

R 03 28 Ms

Vaughn 20 000 20 000 Capital

crr Sales 8 932 28 932 8 932 6 380

618 472 66 492 47 480 552 000

Task 23:

Cash Receipt Journal of Pumpkin-Printers for March 20xx CRJ1

Doc Day Details FolAnalysis

of Receipts


Debtors control


R001 1 Mr Pumpkin 155 000 155 000 Capital

crr 3 Sales 1 500 1 500 1 500 1 000

crr 10 Sales 3 000 3 000 2 000

R002 Mr Banana 3 000 6 000 3 000 Rent

Income

crr 18 Sales 9 000 9 000 6 000

B/S FNB 95 95 Interest Income

R003 Mr Pumpkin 66 000 66 000 Capital

crr 22 Sales 4 500 4 500 4 500 3 000

R004 30 Mr Pumpkin 269 000 269 000 269 000 Capital

511 095 18 000 12 000 3 095 490 000

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Task 25:

Cash Receipt Journal of Dull Dealers for May 20xx CRJ1

Doc D Details FolAnalysis

of Receipts

Bank Sales Cost of Sales


R 01 1 Daphne Dull 195 000 195 000 195 000 Capital

crr 5 Sales 2 000 2 000 2 000 1 000

xx 11 Sales 9 000 9 000 4 500

R 02 Daphne Dull 125 000 134 000 125 000 Capital

xx 22 Sales 1 800 1 800 900

R 03 Daphne Dull 30 000 31 800 30 000 Capital

362 800 12 800 6 400 350 000

CASH RECEIPTS JOURNAL

Cash Payment Journal of Dull Dealers for May 20xx CPJ 1

Doc Day Details FolAnalysis of Receipts


Debtors control


R01 1 Cash ‘n Carry 3 500 3 500

02 3 Jimmy’s Sole Traders 25 000 25 000

03 5 Cash 6 330 6 330 Wages

04 Survival CC 5 650 5 650

05 11 Packers (Pty) Ltd 955 955 Packing

material

06 16 The Star 320 320 Advertising

07 Sammy’s Shop 2 840 440 2 400

08 Hill Dealers 11 250 11 250

09 22 Cash 5 900 5 900

10 30 Damelin College 31 000 31 000 Drawings

11 B Naude 15 500 15 500 Salary

108 245 440 36 800 16 900 54 105

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Task 26:

General Ledger of Pumpkin Printers


Bank B1

20xx Mar 31

Total receipts or Sundry Accounts

CRJ1 511 095 -

Trading Inventory B220xx Mar 31 Cost of Sales CRJ1 12 000 -

Nominal Account Section

Sales N120xx Mar 31 Bank CRJ1 18 000 -

Cost of Sales N220xx Mar 31 Trading

Inventory CRJ1 12 000 -

Unit 3: General Ledger and Trial Balance

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Task 27:

General Ledger of

Capital B1

20xx Dec 1 Balance b/d 20 000 -

Bank CRJ1 500 000 - 8 Bank CRJ1 32 000 -

28 Bank CRJ1 20 000 - 572 000 -

Bank B220xx Dec 1 Balance b/d 255 000 -

31 Total Receipts CRJ1 618 472 - 873 472 -

Trading Inventory B320xx Dec 1 Balance b/d 100 000 - 20xx

Dec 31 Cost of Sales CRJ1 47 480 -

Balance c/d 52 520 -

100 000 - 100 000 -20xx Jan 1 Balance b/d 52 520 -

Sales N120xx Dec 1 Total b/d 135 000 -

31 Bank CRJ1 66 472 -201 472 -

Cost of Sales N220xx Dec 1 Total b/d 96 000 -

31 Trading Inventory CRJ1 47 480 -

143 480 -

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Task 28:

General Ledger of Dull Dealers


Capital B120xx May 1 Balance b/d 105 000 -

Bank CRJ1 195 000 - 11 Bank CRJ1 125 000 -

22 Bank CRJ1 30 000 - 455 000 -

Equipment B220xx May 1 Balance b/d 5 000 -

31 Bank CPJ1 16 900 - 21 900 -

Bank B320xx May 1 Balance b/d 90 000 - 20xx

May 31 Total Payments CPJ1 108 245 -

31 Total Receipts CRJ1 362 800 - Balance c/d 344 555 -

452 800 - 452 800 -June 1 Balance b/d 344 555 -

Trading Inventory B420xx May 1 Balance b/d 60 000 - 20xx

May 31 Cost of Sales CRJ1 6 400 -

3 Bank CPJ1 25 000 - Balance c/d 81 000 -16 Bank CPJ1 2400

87 400 - 87 400 -20xx June 1 Balance b/d 81 000 -


Sales N120xx May 1 Total b/d 120 000 -

31 Bank CRJ1 12 800 -132 800 -

Cost of Sales N220xx May 1 Total b/d 60 000 -

31 Trading Inventory CRJ1 6 400 -

66 400 -

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Task 29:

Trial Balance of Rambo Services - 31 July 20xx

Fol Debit Credit

Balance sheet section

Bank B5 20 700

135 900 135 900

Task 30:

Trial Balance of Cyris Lodge - 31 May 20xx

Fol Debit Credit

Balance sheet section

Capital B1 233 225

Drawings B2 12 100

Land and Buildings B3 100 088

Vehicles B4 35 700

Equipment B5 58 200

Bank B6 30 549

Nominal account section

Interest income N1 9 488

Sales N2 17 268

Rent Income N3 1 998

Interest expense N4 9 003

Salary N5 10 546

Wages N6 4 890

Fuel N7 903

261 979 261 979

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Task 31:

Debtors Journal of King’s Traders for May 20xx DJ1

Doc Day Details / Debtor Fol Sales Cost of Sales

012 5 R. Muller DL1 600 - 400 -

013 9 B. Smit DL2 900 - 600 -

014 12 P. Nel DL3 675 - 450 -

015 15 D. Krantz DL4 1 200 - 800 -

3375 - 2 250 -

Task 32:

Debtors Journal of Queen’s Traders for June 20xx DJDoc Day Details / Debtor Fol Sales Cost of Sales

08 4 Margaret’s Cafe DL1 800 - 350 -

09 8 Dianne’s Boutique DL2 1 200 - 800 -

10 15 Grace Kelly Models DL3 675 - 450 -

11 21 Dianne’s Boutique DL2 780 - 520 -

3 455 - 2 120 -

Debtors Ledger of Queen’s Traders for June 20xx

Margaret’s Cafe DL1

Date Details Fol Debit Credit Balance

20xx June 1 Account Rendered or

Balance 800 -

4 Duplicate Invoice 08 DJ1 800 - 1 600 -

Dianne’s Boutique DL2


Balance 500 -

8 Duplicate Invoice 09 DJ1 1 200 - 1 700 -


Grace Kelly Models DL3


Balance 700 -


Unit 4: Credit Sales Transactions

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Task 33:

Cash Receipts Journal of Akerman Traders Pty (Ltd) for September 20xx CRJ1

Doc no. Day Details Fol Analysis of

Receipts Bank Sales Cost of sales

Debtors control

Sundry Amount

Fol Details

46 1 L Akerman 200 000 200 000 200 000 Capital

crr 4 Sales 11 500 11 500 8 846,15

47 Mini HP Traders D1 3 000 14 500 3 000

crr 9 Sales 9750 9750 7 500

48 Apple Consultants D2 19 500 29 250 19 500

49 15 Centrino cc D3 30 000 30 000 30 000

crr 18 Sales 26 000 26 000 26 000 20 000

50 28 L Akerman 50 000 50 000 50 000 Capital

349 750 49 125 36 346,15 52 500 250 000

N1 B1 B2

Akerman Traders Pty (Ltd) for September 20xx DJ1Doc Day Details / Debtor Fol Sales Cost of Sales

100 4 Centrino cc DL3 18 000 - 12 000 -

101 7 Apple Consultants DL2 24 000 - 16 000 -

102 9 Centrino cc DL3 10 125 - 6 750 -

103 21 Mini HP Traders DL1 4 500 - 3 000 -

56 625 - 37 750 -

B2/N1 B1/N2

Debtors Ledger of Akerman Traders Pty (Ltd)

Mini HP Traders DL1

Date Details Fol Debit Credit Balance 20xx Sept 1 Account Rendered /

Balance 3 000 -

4 Duplicate Receipt 47 CRJ1 3 000 - - -


Apple Consultants DL220xx Sept 1 Account Rendered /

Balance 15 000 -


9 Duplicate Receipt 48 CRJ1 19 500 - 19 500 -

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Centrino CC DL320xx Sept 1 Account Rendered 27 000 -



15 Duplicate Receipt 49 CRJ1 30 000 - 25 125 -

General Ledger of Akerman Traders Pty (Ltd)Balance Sheet Section

Trading Inventory20xx Sept 1 Balance b/d 241 000 - 20xx

Sept 30 Cost of Sales CRJ1 36 346 15

Cost of Sales DJ1 37 750 -

Balance c/d 166 903 85

241 000 - 241 000 -

20xx Oct 1 Balance b/d 166 903 85

Debtors Control

20xx Sept 1 Balance b/d 45 000 - 20xx

Sept 30 Bank CRJ1 52 500 -

30 Sales DJ1 56 625 - Balance c/d 49 125 -

101 625 - 101 625 -

20xx Oct 1 Balance b/d 49 125 -


Sales

20xx Sept 1 Total b/d 55 000 -

30 Debtors Control DJ1 56 625 -

Bank CRJ1 49 125 -

160 750 -

Cost of Sales

20xx Sept 1 Total b/d 37 692 -

30 Trading Inventory CRJ1 36 346 15

Trading Inventory DJ1 37 750 -

111 788 15

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Task 34:

No. Assets = Owners Equity + Liabilities

Amount Reason Amount Reason Amount Reason

1 +R600 Debtors Increase +R600 Sales increase

-R450 Trading stock sold -R450 Cost of Sales

2 +R300 Debtors Increase +R300 Sales increase

-R225 Trading stock sold -R225 Cost of Sales

3 ±R300 Debtors paidBank increases

4 ±R150 Debtors paidBank increases

Task 34.1:

Debtors Allowances Journal of Wazowski Suppliers for June 20XX DAJ

Doc Day Debtor Fol Debtors allowances Cost of sales

CN25 4 Randall Boggs 805 - 460 -

CN26 10 J Sullivan 560 - 320 -

CN27 18 Waternoose 227 50 130 -

1 592 50 910 -

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Task 35:

Creditors Journal of Olympic Shop for March 20xx CJ1

Doc Day Creditor Fol Creditors Control

Trading Inventory Stationery Sundry

Amount Fol Details

25 2 Bolt & Run C1 8 000 - 8 000 -

26 8 Zeus’s Packagers C2 578 - 578 -

27 15 Johnson Wholesalers C3 18 000 - 18 000 -

28 19 Johnson Wholesalers C3 2 000 - 2 000 - Stationery

29 28 Bolt & Run C1 9 000 - 9 000 -

37 578 - 35 000 - 578 - 2 000 -

Creditors Ledger of Olympic Shop

Bolt & Run C1

Date Details /Document number Fol Debit Credit Balance 20xx March 2 Original Invoice 25 CJ1 8 000 - 8 000 -

28 Original Invoice 28 CJ1 9 000 - 17 000 -

Zeus’s Packagers C220xx March 8 Original Invoice 26 CJ1 578 - 578 -

Johnson Wholesalers C320xx March 15 Original Invoice 27 CJ1 18 000 - 18 000 -

19 Original Invoice 28 2 000 - 20 000 -

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Task 36:

NOTE: Account rendered or Balance may be used

Creditors Ledger of Orange County Traders

Purple Rain CL1

Date Details /Document number Fol Debit Credit Balance 20xx March 1 Account Rendered 2 455 -

2 Original Invoice 23 CJ6 2 898 - 5353 -


28 Cheque 76 9 231 - 2 455 -

Black Forest CL220xx March 1 Account Rendered 943 -

Pink Floyd CL320xx March 1 Account Rendered 8 992 -

Cheque CPJ6 3 000 - 5 992 -

5 Original Invoice 24 CJ6 5 294 - 698 -


28 Original Invoice 29 CJ6 822 - 3 987 -

Blue Steel CL420xx March 1 Account Rendered 2000 -


12 Cheque 74 CPJ6 9 773 - 2 000 -


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General Ledger of Orange County TradersBalance Sheet Section

Equipment20xx Mar 9 Creditors

Control CJ6 9 773 -

Trading Inventory

20xx Mar 1 Balance b/d 25 698 -

31 Creditors Control CJ1 12 898 -

Bank CPJ 2 000 -

40 596 -

Creditors Control

20xx Mar 31 Bank CPJ6 22 004 - 20xx

Mar 1 Balance b/d 14 390 -

Balance c/d 21 173 - 31 Sundry accounts CJ6 28 787 -

43 177 - 43 177 -

20xx April 1 Balance b/d 21 173 -


Stationery

20xx Mar 1 Total b/d 329 -

31 Creditors control CJ6 6 116 -

6 445 -

Telephone

20xx Mar 3 Bank CPJ6 567 -

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Task 37:

No. Assets = Owners Equity + LiabilitiesAmount Reason Amount Reason Amount Reason

1 +R2 000 Trading Inventory purchased +R2 000 Owe Creditors

more

2 -R2 500 Stationery (exp) +R2 500 Owe Creditors

more

3 -R2 000 Bank Decreases -R2 000 Owe Creditors less

4 -R1 250 Bank Decreases -R1 250 Owe Creditors less

Task 37.1:

Creditors Allowances Journal of ABC Suppliers for June 20xx CAJ

Doc Day Details Fol Creditors Control

Trading Stock Stationery Sundry

Amount Fol Details

DN1 2 Mkhize Suppliers 220 - 180 - 40 -

DN2 15 Top Shot Stores 260 - 260 -

DN3 21 Top Gear Advertisers 202 - 202 -

682 - 440 - 242 -

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Task 38:

Trial Balance of Olympic Clothes – 31 August 20xx

Fol Debit Credit

Balance Sheet section

Capital B1 400 000

Drawings B2 80 000

Land and Buildings B3 520 000

Vehicles B4 255 000

Equipment B5 70 000

Debtors Control B6 54 000

Trading Stock B7 148 000

Bank B8 38 000

Petty Cash B9 1 500

Cash Float B10 2 000

Creditors Control B11 44 500

Mortgage Loan: FNB B12 230 000

Nominal Account section

Sales N1 890 000

Cost of Sales N2 256 000

Rental Income N3 150 000

Interest Income N4 3 800

Wages N5 50 000

Stationery N6 4 500

Salary N7 172 000

Water and Electricity N8 7 300

Advertising N9 2 000

Fuel N10 7 000

Insurance N11 24 000

Telephone N12 4 000

Interest on Loan: ABC Bank N13 23 000

1 718 300 1 718 300

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NOTE: Also referred to as a Statement of Profit and Loss Olympic ClothesIncome Statement for year ended on 31 August 20xx Sales 890 000 -

Cost of Sales (256 000 -)

Gross Profit 634 000 -

Income for services rendered 0

Other operating income 150 000 -

Rental Income 150 000 -

Operating expenses (270 800 -)

Wages 50 000 -

Stationery 4 500 -

Salary 172 000 -

Water and Electricity 7 300 -

Advertising 2 000 -

Fuel 7 000 -

Insurance 24 000 -

Telephone 4 000 -

Interest Income 3 800 -

Interest Expense (23 000 -)

Net profit for the year 494 000 -

Olympic ClothesBalance Sheet on 31 August 20xxASSETS Note

Non-Current Assets 845 000 -

Tangible Assets 1 845 000 -

Current Assets 243 500 -

Inventory 148 000 -

Trade and other receivables 54 000 -

Cash and cash equivalents 2 41 500 -

TOTAL ASSETS 1 088 500 -

EQUITY and LIABILITIES

Owner’s Equity 3 814 000 -

Non-Current Liabilities 230 000 -

Mortgage Loan: FNB 230 000 -

Current Liabilities 44 500 -

Trade and other payables 44 500 -

TOTAL EQUITY AND LIABILITIES 1 088 500 -

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Notes to the Balance Sheet:

1. Tangible Assets

Land and Buildings R520 000

Vehicles R255 000

Equipment R 70 000

R845 000

2. Cash and Cash Equivalents

Bank R38 000

Petty cash R 1 500

Cash Float R 2 000

R41 500

3. Owners equity

Capital balance R400 000

Net Profit R494 000

Drawings (80 000)

R814 000

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Task 39:

Profitability ratio:

==> Operating expenses on Sales.

(16 530 ÷ 90 000) x 100 = 18,4%

==> Net profit on Sales.

(73 970 ÷ 90 000) x 100 = 82,2%

Liquidity ratio:

Current assets : Current liabilities

97 650 : 41 250

2,4 :1

This means that for every R1 that the business needs to pay short term debt, they are able to generate R2.40 in short term assets. In other words, the business is liquid because short term liabilities can be covered by short term assets.

Solvency ratio:

Total assets : Total liabilities

295 650: 141 250

2,1:1

If the business is Insolvent it means the business is bankrupt, ie owes more than it owns. In this case the business is solvent because for every R1 is owes (liabilities) it is able to generate R2.10 if all assets are sold.

Return on Investment

==> Return on Owner’s equity = Net profit/average owners equity x 100/1

(73 970 ÷ 154 400) x 100 = 47,9%

Return on total capital employed = Net profit/(Owner’s equity + long term borrowed capital) x 100/1

73 970 ÷(154 400 + 100 000) x 100 = 29,1%

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Task 40:

Use the assessment grid to assess the learners :

Criteria

Are all 3 sectors labelled ? 2

Are all 3 examples listed ? 2

Have suitable pictures been used ? 2

Is the poster neatly presented ? 2

Has a link been shown between the sectors ? 2

10

Task 41:

Identify the sector that the following businesses operate in.

Business Sector Business SectorPrivate hospital Tertiary Construction company SecondaryCarpentry Secondary Chicken Farm PrimaryPrinting Press Tertiary BT Games TertiaryEdgars Tertiary Transnet TertiaryCheckers All Dischem Secondary and TertiaryLawyers Tertiary Plumber TertiaryForestry Primary Commercial Fishing AllSter Kinekor Tertiary Fish Monger PrimaryBeef farm Primary KFC Tertiary

NOTE: Students could argue additional sectors, e.g. the fishmonger may sell his own wares. The motivation, and showing understanding of the concept is what is important.

Chapter 3: ENTREPRENEURSHIP

Unit 1: Sectors of the Economy

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Task 42:

Ensure that groups are brainstorming widely and looking at possibilities and opportunities, depending on the school policy i.e. are they able to sell at sports functions or only at the market day?

What are their options: What access do they have to goods or services through parents etc? Mindmap should be detailed before they make a decision. See Worksheet 1 at end of book.

Unit 2: Functions of a Business

Task 43:

Ensure that they look at all the FOP: Capital, Raw Materials, Labour and Entrepreneurship and address each one, even if, for example, they will not be using any outside labour.

Name must be appropriate and have a reason – what does it represent? Do they have a logo and business identity?

Ensure that they have covered all aspects regarding purchasing - do they have serviettes if it is a food product, do they have wrapping, receipt books (or printed receipts) etc.?

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Task 44:

Principal:

○ They way he/she dresses as they meet a lot of parents and important people

○ The way they speak to school at assemblies, parents, prospective parents and other gatherings

Staff

○ The way they handle parents

○ The way they represent the school at inter-school meetings/ sports events/ exam committees/marking sessions etc.

Receptionists

○ The way they answer the phone

○ The information they have to direct personal or phone enquiries to the right people

○ The way they handle upset parents, suppliers etc (remember they are at the front line of service)

Prefect

○ the way they treat juniors and whether they earn respect.

○ interaction with staff or people from other schools

Captain of Sports team

○ the way they handle team and competition

○ the way they lead and accept defeat gracefully

Yourself

○ the way you wear your uniform and act when in public

○ greeting or helping visitors on campus

Any other relevant.

Task 45:

Application based, depending on school.

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Task 46:

Application based depending on the business that each group is planning.

Task 47:

Advert design based on AIDA critria and marked on rubric in Worksheet 4.

Unit 3: Business Plan

YOUR VISION IS OUR MISSION

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Economic and Management Sciences Classic for Grade 9This CAPS aligned Grade 9 Studying EMS Classic book covers all the aspects of the EMS curriculum, taking the student on a journey where they will discovery accounting principles and learn about the exciting world of business and economics. It exposes them to all the aspects of Business Studies, Accounting and Economics that will assist them in making subject choices for the FET phase.

Bubbles Inside‘Bubbles’ are short, interactive online lessons that allow learners to revise concepts and get additional examples and explanations. Simply scan the QR codes or click on the active links in the eBook version.

www.excompublishers.co.za

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