PROVINCIAL EXAMINATION

JUNE 2023
GRADE 9

ECONOMIC AND MANAGEMENT SCIENCES:

FINANCIAL LITERACY

PAPER 1

TIME: 1 hour

MARKS: 50

8 pages and an answer book of 7 pages

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 ECONOMIC AND MANAGEMENT SCIENCES 2
(Paper 1) GRADE 9

INSTRUCTIONS AND INFORMATION

1. This question paper consists of Sections A, B and C (Financial Literacy topics)

and is based on the prescribed content framework in the CAPS Amendment
Document and ATP.

SECTION A: SHORT QUESTIONS

QUESTION 1.1: Multiple-choice questions (5)

QUESTION 1.2: Matching items (5)
[10]

SECTION B: ACCOUNTING EQUATION AND JOURNALS

QUESTION 2: Accounting Equation (9)

QUESTION 3: Journals (16)
[25]

SECTION C: GENERAL LEDGER AND TRIAL BALANCE

QUESTION 4: General Ledger (8)

QUESTION 5: Trial Balance (7)
[15]

2. ALL the questions are compulsory.

3. Answer ALL the questions in the ANSWER BOOK provided.

4. Write neatly and legibly.

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SECTION A: SHORT QUESTIONS

QUESTION 1

1.1 MULTIPLE-CHOICE QUESTIONS

Various options are provided as possible answers to the following questions.

Choose the correct answer and write only the letter (A – D) next to the question
number (1.1.1 to 1.1.5) in the ANSWER BOOK provided.

1.1.1 Trading stock can be classified as a/an …

A fixed asset.
B liability.
C expense.
D current asset. (1)

1.1.2 A credit sale transaction takes place between the business and the …

A owner.
B tenant.
C debtor.
D creditor. (1)

1.1.3 The difference between the cost price of goods sold and the selling price
is called …

A mark-up.
B cost of sales.
C income.
D drawings. (1)

1.1.4 Goods costing R3 500 are sold on account to M. Sithole for R5 000.
M. Sithole owes the business …

A R3 500.
B R5 000.
C R1 500.
D R8 500. (1)

1.1.5 The NCA provides debt counselling for consumers who have no solution
on how to repay debts. NCA is an acronym for …

A National Council of Accountants.

B National Credit Act.
C New Creditors' Association.
D Nominal Credit Account. (1)
[5]

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1.2 MATCHING ITEMS

Choose a term in COLUMN B that matches the description in COLUMN A. Write

only the letter (A – G) next to the question number (1.2.1 to 1.2.5) in your
ANSWER BOOK e.g. 1.2.6 H.

COLUMN A COLUMN B

1.2.1 Capital and drawings A Duplicate receipt

1.2.2 The source document used by the business B Duplicate invoice

to record credit sales
C Trial Balance
1.2.3 Bank overdraft
D General Ledger
1.2.4 The maximum amount that a debtor can owe
E Owner’s equity
1.2.5 Tests if the double entry principle has been
applied F Liability

G Credit limit
(5 x 1) [5]

TOTAL SECTION A: 10

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SECTION B: ACCOUNTING EQUATION AND JOURNALS

QUESTION 2: ACCOUNTING EQUATION

Analyse the following transactions and show the effect that each one has on the
accounting equation.

No. Transaction
e.g. Paid R500 through EFT to Pen and Paper for stationery purchased.
2.1 Goods costing R2 500 were sold for R4 000 cash to Dan Ncube.
2.2 T. Moagi (a debtor) deposited R1 800 into the business bank account as part
payment on her account.
[9]

QUESTION 3: JOURNALS

Mr Reddy is the owner of Red Hot Dealz, a business that sells goods to its customers
both for cash and on credit. Goods are sold at cost plus 75% mark-up.

Mr Reddy has many grandchildren. He often takes money from the business to buy
gifts for them.

He is also away on many business trips and leaves his staff unsupervised. Mr Reddy is
concerned that there are many debtors who are not paying their accounts on time, and
some are not paying at all.

REQUIRED:

3.1 Use the information provided below to record the transactions for Red Hot
Dealz in the following journals for the month ending March 2023.
Do not close off the journals at the end of the month.

3.1.1 Cash Receipts Journal (7)

3.1.2 Cash Payments Journal (3)

3.1.3 Debtors' Journal (3)

3.2 Answer the following questions.

3.2.1 Complete the following statement by filling in the missing word.

The money that Mr Reddy takes from the business to buy gifts for his
grandchildren should be recorded as __________. (1)

3.2.2 Identify TWO things that Mr Reddy must consider before allowing a
customer to buy on account. (2)

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TRANSACTIONS – March 2023

5 Cash sales for the day, R5 250.

9 Goods costing R2 500 was sold on credit to B. Baloyi. Invoice no. 23 was
issued.

11 Purchased trading stock from FM Suppliers. EFT no. 72 was processed

for
R3 625.

15 A debit order for R1 000 was processed to FIN Surance for the monthly
insurance premium.

25 B. Baloyi settled his account in full. Receipt 32 was issued to him. He was
owing R255 at the beginning of the month. [16]

TOTAL SECTION B: 25

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SECTION C: GENERAL LEDGER AND TRIAL BALANCE

QUESTION 4: GENERAL LEDGER

The following records were extracted from the books of Tabby Wholesalers on 30 April
2023.

REQUIRED:

Use the information below to complete the following General Ledger accounts for the
month ending 30 April 2023.

(Do not balance the accounts.)

4.1. Debtors' Control (3)

4.2 Sales (5)

The following column totals appeared in the subsidiary journals of Tabby

Wholesalers on 30 April 2023.

Cash Receipts Journal of Tabby Wholesalers – April 2023 CRJ1

Bank Sales Cost of sales Debtors' Sundry
control Accounts
140 290 ? 8 700 1 290 125 000

Cash Payments Journal of Tabby Wholesalers – April 2023 CPJ1

Bank Trading stock Stationery Wages Sundry
Accounts
120 415 21 500 1 240 1 680 95 995

Debtors' Journal of Tabby Wholesalers – April 2023 DJ1

Sales Cost of sales
3 015 1 375
[8]

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QUESTION 5: TRIAL BALANCE

The following Trial Balance has been extracted from the books of VIP Traders.
Valerie Prinsloo, the owner of the store, is struggling to complete the trial balance and has
requested you to assist her.

REQUIRED:

5.1. Complete the Trial Balance for the month ended May 2023 using the information
provided below. (5)

5.2 Choose the correct answer from within brackets. Use the information in the Trial
Balance.

Show a calculation to prove your answer.

The business achieved a profit mark-up of (50%/33⅓%). (2)

INFORMATION

Trial Balance of VIP Traders for May 2023

Fol. Debit Credit

BALANCE SHEET ACCOUNTS SECTION
Capital B1 ?
Drawings B2 8 000
Land and buildings B3 95 000
Equipment B4 20 000
Debtors' control B5 15 500
Bank B6 20 043

NOMINAL ACCOUNTS SECTION

Sales N1 240 000
Cost of sales N2 160 000
Rent income N3 6 000
Water and electricity N4 5 495
Sundry expenses N5 4 962
? ?

Additional Information:
 On 1 May 2023, the capital balance was R120 000. Valerie had increased the
capital amount during the month of May by 30%.
 Valerie does not know where the following must be recorded:
– Salaries and Wages – R 21 000
– Trading Stock – R 52 000 [7]

TOTAL SECTION C: 15

TOTAL: 50
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