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ECONOMIC AND MANAGEMENT SCIENCES FACILITATOR’S GUIDE Grade 9
A member of the FUTURELEARN group
Economic and Management Sciences Facilitator’s guide
1809-E-EMS-FG01
Í2)È-E-EMS-FG01ÂÎ
Grade 9
CAPS aligned
JVW Earle SM Earle
Facilitator’s Guide G09 ~ Economic and Management Sciences
CONTENTS Page
LESSON ELEMENTS TIMETABLE AND TIME MANAGEMENT ASSESSMENT REQUIREMENTS STUDY TIPS AND METHODS PREFACE HOW TO USE THE FACILITATOR’S GUIDE YEAR PLAN
3 5 7 8 9 10 11 13
UNIT 1
Revision of Grade 8 work FINANCIAL LITERACY: CASH RECEIPTS AND THE CASH PAYMENTS JOURNALS Cash transactions of a trading business 14 Lesson 1 − 2 14 Activity 1 15 Lesson 3 Effect of cash transactions on the accounting equation 15 Activity 2 16 Activity 3 THE ECONOMY: ECONOMIC SYSTEMS Lesson 6 Advantages, disadvantages and characteristics of each of the 17 economic systems and the global economy 17 Activity 4 19 Activity 5 19 Activity 6 FINANCIAL LITERACY: GENERAL LEDGER AND TRIAL BALANCE (SOLE TRADER) Posting of cash transactions 19 Lesson 7 − 10 20 Activity 7 Preparation of a Trial Balance of a trading business 23 Lesson 11 − 12 23 Activity 8 THE ECONOMY: THE ECONOMIC CYCLE The participants in the economic cycle of a closed economy 27 Lesson 13 − 14 27 Activity 9 Flow diagram of an economic cycle 27 Lesson 17 − 18 27 Activity 10 29 UNIT 2 Revision of work done in first term and an overview what will be done in the second term. FINANCIAL LITERACY: CREDIT TRANSACTIONS – DEBTORS 30 Lesson 23 Posting of transactions to the Debtors Journal (DJ) 30 Activity 11 Posting of goods received from debtors in the Cash Receipt 31 Lesson 24 Journal 31 Activity 12 THE ECONOMY: PRICE THEORY The Law of Demand, supply curve and graphic representation 33 Lesson 25 of the demand curve 33 Activity 13 34 Activity 14 The Law of Supply, supply curve and graphic representation of 34 Lesson 26 the supply curve 34 Activity 15
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Facilitator’s Guide G09 ~ Economic and Management Sciences
Lesson 27
Lesson 32
Equilibrium price and quantity Activity 16 ENTREPRENEURSHIP: SECTORS IN THE ECONOMY Continuous use of resources in the three sectors Activity 17 Activity 18
UNIT 3
35 35 36 36 37 38
Revision of work done in term 2 and an overview of work to be done in term 3. THE ECONOMY: TRADE UNIONS 42 Lesson 33 Concept of trade unions and their historical development 42 Activity 19 42 Lesson 36 Contribution of trade unions to sustainable growth and development 42 Activity 20 FINANCIAL LITERACY: CREDIT TRANSACTIONS – DEBTORS 43 Lesson 40 The effect of credit transactions on the accounting equation 43 Activity 21 48 Lesson 42 Accounting Cycle 48 Activity 22 Lesson 43 Noting of transactions in the Creditors Journal (CJ) and 49 Creditors Discount Journal (CDJ) 49 Activity 23 ENTREPRENEURSHIP: BUSINESS FUNCTIONS 50 Lesson 45 – 46 The role and importance of business functions 50 Activity 24 51 Activity 25 FINANCIAL LITERACY: CREDIT TRANSACTIONS – CREDITORS (PAYMENTS) 52 Lesson 48 Posting to the Creditors Ledger and the General Ledger and the effect of credit transactions on the accounting equation 52 Activity 26 57 UNIT 4 Revision of work done in Term 3 and an overview what is to be done in Term 4. FINANCIAL LITERACY TRANSACTIONS: CASH AND CREDITS TRANSACTIONS 59 Lesson 52 – 54 Preparing a Trial Balance 60 Activity 27 ENTREPRENEURSHIP AND BUSINESS PLAN 68 Lesson 55 Concept of a business plan 69 Activity 28 69 Lesson 56 Components of a business plan 69 Activity 29 70 Lesson 57 Format of a business plan 70 Activity 30 71 Lesson 58 Production plan, marketing plan, management plan 71 Activity 31 72 Lesson 59 SWOT analysis and conclusion 72 Activity 32
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Facilitator’s Guide G09 ~ Economic and Management Sciences
YEAR PLAN TERM 1
TOPIC 1
Revision
2
Financial literacy: Cash Receipts Journal and Cash Payments Journal
3
The economy: Economic systems
4
Financial literacy: General Ledger and trial balance
5
The economy: The circular flow
2
6
Revision
7
Financial literacy: Credit transactions – debtors
8
The economy: Price theory
9
Entrepreneurship: Sectors of the economy
10 June examination 3
11 Revision 12 The economy: Trade unions 13 Financial literacy: Credit transactions – debtors 14 Financial literacy: Credit transactions – creditors 15 Entrepreneurship: Functions of a business 16 Financial literacy: Credit transactions – creditors
4
17 Revision 18 Financial literacy: Transactions – cash and credit
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STARTING
COMPLETION
DATE
DATE
Facilitator’s Guide G09 ~ Economic and Management Sciences
19 Entrepreneurship: Business plan 20 Examination preparation 21 November examination
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Facilitator’s Guide G09 ~ Economic and Management Sciences
Unit
1
UNIT 1 Revision At the beginning of each lesson, there is a revision section. The purpose of the revision section is to give the learner an overview of what was discussed in the previous unit. Specifically in this revision section, it gives the learner an overview of what was covered in Grade 8. The learner can briefly read though the information in his study guide as reminder of what was discussed in the previous unit. There are ten true or false questions to be completed by the learner. The facilitator and learner must not spend a lot of time on the revision sections. The facilitator can verbally ask the questions or the learner can write down his answers.
Revision activity: True or false 1 2 3 4 5 6 7 8 9 10
False True True True True True True True True False
No marks are recorded in this activity; it is only for revision purposes.
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Facilitator’s Guide G09 ~ Economic and Management Sciences
Unit
1
FINANCIAL LITERACY: CASH RECEIPTS JOURNAL AND CASH PAYMENT JOURNAL LEARNING AIMS After completing this lesson, you must be able to do the following: Cash Payments Journal Cash Receipts Journal The effect of cash transactions on the Accounting Equation.
Lesson 1 – 2 ACTIVITY 1 Cost price (R) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
200 500 (c) R 300 (d) R 2 000 800 1 750 4 450 3 000 (i) R 1 600 2 800
Calculations: a) SP = CP x (100 + %profit)
Profit mark-up % 25 % 30 % 40 % 20 % (e) 50 % (f) 50 % 60 % (h) 35 % 25 % (j) 22,5 %
f)
PROFIT = R2 625 – R1 750 = R875
= 210 x (100 + 25) 100 = R250
b)
SP = 500 x 130 100 = R650
Selling price (R) (a) R 250 (b) R 650 420 2 400 1 200 2 625 (g) R 7 120 4 050 2 000 3 430
PROFIT MARGIN = 875 x 100 1 750 = 50% g) SP = 4 450 x 160 100 = R7 120 h) PROFIT = R4 050 – R3 000 = R1 050 PROFIT MARGIN = 1 050 x 100 3 000 = 35%
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Facilitator’s Guide G09 ~ Economic and Management Sciences
c) CP = SP x 100 (100 + %profit)
Unit
1
i) CP = 2 000 x 100 (100 + 25)
= 420 x 100 (100 + 40)
= R1 600
= R300 d) CP = 2 400 x 100 120 = R2000 e)
j)
PROFIT = R3 430 – R2 800 = R630 PROFIT MARGIN = 630 x 100 2 800
PROFIT = R1 200 – R800 = R400 = 22,5% PROFIT MARGIN = Profit x 100 CP = 400 x 100 800 = 50%
Lesson 3 ACTIVITY 2 Effect on assets and owner’s equity:
Date
Effect
1.
+ 90 000
2. 3.
– 35 000 + 35 000 – 28 000 + 28 000 – 17 500
4.
+ 17 500
5.
– 1 000
6.
– 500 + 5 600
7.
– 3 500 90 600
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Assets = Owner’s equity + Liabilities Reason Effect Reason Effect Owner’s capital Cash increase + 90 000 contribution increase Cash decrease Vehicles increase Cash decrease Equipment increase Cash decrease Trading stock increase Trading licence is Cash decrease – 1 000 an expense Wages is an Cash decreased – 500 expense Cash increase Trading stock decrease
+ 2 100 90 600
15
Profit on sales
Reason
Facilitator’s Guide G09 ~ Economic and Management Sciences
Unit
ACTIVITY 3 CASH RECEIPT JOURNAL OF CHIVA TRADERS FOR JULY 20.3 Doc. Nr. 101 CRR CRR 102 CRR 103 CRR
Day
Details
1 5 9 16 18
S. Chiva Sales Sales S. Chiva Sales J. Pillay Sales
30
Analysis of receipts 8 600 11 200 12 000 12 600 4 500 25 800
Bank 120 000 8 600 11 200 12 000
00 00 00 00 00 00
17 100 25 800 194 700
Cost of sales
Sales 00 00 00 00 00 00 00
8 600 11 200
00 00
6 880 8 960
00 00
12 600
00
10 080
00
25 800 58 200
00 00
20 640 46 560
00 00
CRJ 01
Amount 120 000
00
Sundry accounts Fol. Details Capital
12 000
00
Capital
4 500
00
Rent Income
136 500
00
CASH PAYMENTS JOURNAL OF CHIVA TRADERS FOR JULY 20.3 Doc. Nr. 01 02 03 04 05 06 07 08 09 10 11 B/S 12 13
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Day
Name of payee
2 4 7
Makro Mac Motors City Council Cash Makro ANP Stationers Cash Flora Suppliers City Council Mac Motors Cash ABC Bank Cash ANP Stationers
11 12 14 15 17 20 21 23 28 31
Bank 16 500 65 000 900 2 100 22 500 650 2 100 750 1 900 3 100 2 100 185 2 100 725 120 610
00 00 00 00 00 00 00 00 00 00 00 00 00 00 00
Trading inventory 16 500 00
22 500
Wages
Stationery
2 100
00
2 100
00
Sundry accounts Fol. Details
Amount 65 000 900
00 00
Vehicles Trading Licence
750 1 900 3 100
00 00 00
Packaging material Water and electricity Drawings
185
00
Bank charges
71 835
00
00 650
39 000
CPJ 01
00
2 100
00
2 100
00
8 400
00
16
725 1 375
00
00 00
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Facilitator’s Guide G09 ~ Economic and Management Sciences
Unit
1
THE ECONOMY: ECONOMIC SYSTEMS LEARNING AIMS In this lesson, the learner will learn more about THE ECONOMY. We are going to explore and study the following: The three main economic systems • planned economy • market economy • mixed economy Origin of every economic system. Advantages and disadvantages of each economic system. Characteristics of each economic system. The global economy.
Lesson 6 ACTIVITY 4 4.1.
a) Market economy b) Planned economy c) Mixed economy
4.2. a) Planned economy Characteristics: (Any 3) • The government makes all the decisions regarding production and the consumption of goods and services. • Businesses are owned and controlled by the government – and therefore take all the profits. • Few people are rich while the majority is poor. • Resources are the property of the government. Advantages • The government has full control over the economy which leads
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b) Market economy Characteristics: • Factors of production are owned by individuals. • The government is not actively involved in the providing of goods and services (mostly entrepreneurs).
c) Mixed economy Characteristics: • The government plays an important role in solving the economic problems. • Services (removal of waste, water and electricity) are provided by the government • Some businesses are owned by the government while other is owned by individuals.
Advantages • Entrepreneurship and innovation are encouraged and
Advantages • The government allow the individual to use and benefit from
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Facilitator’s Guide G09 ~ Economic and Management Sciences
to a stable economy • Equal distribution of goods and services as well as resources. • The government owns and controls factors of production. • Prices are determined by the government – minimal profits. • Does not suffer under economic systems.
Disadvantages • Entrepreneurship is discouraged. • The government controls variety of goods available. • Uneven distribution of resources. • The government may not have the time or expertise to manage all the government owned assets i.e. if banks were to be nationalised in South Africa the government will be able to run it at a profit. • Workers are exploited. • People do not have the freedom to enhance their economic position, there are little or no incentive to encourage hard work. • The government, as manufacturer, cannot make an accurate guess on how consumers will behave.
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Unit
emphasised. • Increasing of competition between businesses. • Individuals can improve their standard of living by starting their own businesses. • Productivity is high. • Individuals have freedom of choice. • Increasing of skills development. • Innovation is encouraged to create new and products at competitive prices. Disadvantages • Not everyone can afford a variety goods and services. • Job losses for the unskilled i.e. mechanisation. • Exploitation of workers. • Large businesses have an unfair advantage above smaller businesses with less capital.
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country’s infrastructure. • Encouragement for innovating entrepreneurship is rewarded.
Disadvantages • Income tax rates are relatively high. • Economic growth can be limited as the government allocated a large portion of resources to the welfare of its inhabitants. • Large government participation in the economy by means of regulations, which makes the government bureaucratic and accessible for corruption.
Facilitator’s Guide G09 ~ Economic and Management Sciences
Unit
1
ACTIVITY 5 5.1.1 5.1.2 5.1.3 5.1.4 5.1.5
Market economy Mixed economy Planned economy Planned economy Planned economy
ACTIVITY 6 6.1
Yes, any person must be able to start his/her own business and provide goods and services to satisfy the buyer’s needs and desires to increase their life standards. (Also look at the advantages of a mixed economy.)
6.2
No, because entrepreneurship is not encouraged. The government fully controls the economy, which leads to the disproportionate distribution of resources. (Look at the disadvantages of the planned economy).
FINANCIAL LITERACY GENERAL LEDGER AND TRIAL BALANCE (SOLE TRADER) Lesson 7 – 10 LEARNING AIMS After completing this lesson, the learner must be able to do the following: Posting cash transactions of a trading business from the Cash Receipts Journal (CRJ) and Cash Payments Journal (CPJ) to the General Ledger. Preparing a Trial Balance of a trading business.
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Facilitator’s Guide G09 ~ Economic and Management Sciences
Unit
ACTIVITY 7 GENERAL LEDGER AND TRIAL BALANCE (SOLE TRADER) CASH RECEIPT JOURNAL OF BANIE TRADERS FOR MAY 20.3 Doc. Nr. 001 CRR CRR CRR
Day
Details
1 8 9 17
L. Banie Sales Sales Sales
Analysis of receipts 225 000 00 480 00 2 560 00 2 880 00
Bank
Sales
225 000 480 2 560 2 880 230 920 B5
00 00 00 00 00
Cost of sales
480 2 560 2 880 5 920 N1
00 00 00
300 1 600 1 800 3 700 N2/B4
00 00 00 00
Amount 225 000
225 000
CRJ 01 00
00
CASH PAYMENT JOURNAL OF BANIE TRADERS FOR MAY 20.3 Doc. Nr. 001 002 003 004 005 006 007 008 009 010 011 012 013 014
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Day 2
5 12 16 19 23 26 29 30
Name of payee JJ Builders Municipality Super Rent Makro ANP Cash Cash Makro Cash Caxton Municipality Cash N. Jordaan L. Banie
Bank 100 000 280 1 700 20 000 1 240 420 420 1 500 420 320 195 420 3 500 5 000 135 415 B5
Stationery 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00
1 240
20 000
00
1 500
00
CRJ 01
Amount 100 000 280 1 700
00 00 00
Sundry accounts Fol. Details B3 Buildings N5 Trading licence N6 Rent expense
320 195
00 00
N7 N8
Advertisements Water & Electricity
3 500 5 000 110 995
00 00 00
N9 B2
Salaries Withdrawals
00 420 420
00 00
420
00
420
1 240 N3
Trading stock
Wages
Sundry accounts Fol. Details Capital
00
1680 N4
00
00
20
21 500 B4
00
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Facilitator’s Guide G09 ~ Economic and Management Sciences
Unit
1
GENERAL LEDGER OF BANIE TRADERS BALANCE SHEET ACCOUNTS SECTION CAPITAL Month
Day
Details
Fol
Amount
B1
Month
Day
Details
Fol
20.1 May
1
Bank
CRJ 1
DRAWINGS 20.1 May
30
Bank
CPJ 1
2
Bank
CPJ 1
5 000
B3
100 000
TRADING STOCK 20.1 May
31
Bank
31
Sundry accounts
CPJ 1
20.1 21 500 May
B4 31
Cost of sales
31
Sundry accounts
BANK 20.1 May
CRJ 1
225 000
B2
BUILDINGS 20.1 May
Amount
20.1 230 290 May
CRJ 1
3 700
B5 CPJ 1
135 415
NOMINAL ACCOUNTS SECTION SALES Month
Day
Detail
Fol
Amount
N1
Month
Day
Detail
Fol
20.1 May
31
Bank
CRJ 1
COST OF SALES 20.1 May
31
Trading stock
CRJ 1
3 700
STATIONERY 20.1 May
31
Bank
CPJ 1
31
Bank
CPJ 1
2
Bank
CPJ 1
2
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Bank
CPJ 1
N5
280
RENT EXPENSE 20.1 May
N4
1 680
TRADING LICENCE 20.1 May
N3
1 240
WAGES 20.1 May
N2
1 700
21
N6
Amount
5 920
Facilitator’s Guide G09 ~ Economic and Management Sciences
Unit
ADVERTISING 20.1 Mei
23
Bank
CPJ 1
26
Bank
CPJ 1
29
Bank
CPJ 1
N8
195
SALARIES 20.1 May
N7
320
WATER EN ELECTRICITY 20.1 May
1
N9
3 500
NOTE: Checking of addition is essential. Cash receipts journal: Sales (R5 920) + Sundry accounts (R225 000) = Bank (R230 920) The total of the cost of sales column does not form part of the check, because the total of cost of sales does not represent an amount received. Cash payments journal: Stationery (R1 240) + Wages (R1 680) + Trading stock (R21 500) + Sundry accounts (R110 995) = Bank (135 415) The double entry principle is applied as follows: CASH RECEIPTS JOURNAL Accounts debited Accounts credited Bank R230 920 Capital Cost of sales R3 700 Trading stock Sales Total of debits R234 620 Total of credits CASH PAYMENTS JOURNAL Accounts debited Accounts credited Buildings R100 000 Bank Trading stock R21 500 Stationery R1 240 Wages R1 680 Trading licence R280 Rent expense R1 700 Advertisements R320 Water & Electricity R195 Salaries R3 500 Withdrawals R5 000 Total of debits R135 415 Total of credits
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R225 000 R3 700 R5 920 R234 620
R135 415
R135 415
Facilitator’s Guide G09 ~ Economic and Management Sciences
Unit
Lesson 11 – 12 ACTIVITY 8 CASH RECEIPTS JOURNAL OF RAIDER TRADERS FOR APRIL 20.2 Doc Nno 23 Crr Crr Crr Crr
Day 1 2 10 24 28
Details S. Raider Sales Sales Sales Sales
Analysis of receipts (70 000 – 63 309) 6 691 6 416 4 904 6 328 8 008
Bank 00 00 00 00 00
6 691 6 416 4 904 6 328 8 008 32 347 B6
Sales 00 00 00 00 00 00
6 416 4 904 6 328 8 008 25 656 N1
CRJ 02 Sundry accounts Amount Fol. Detail
Cost of sales 00 00 00 00 00
4 010 3 065 3 955 5 005 16 035 N2/B5
00 00 00 00 00
CASH PAYMENT JOURNAL OF RAIDER TRADERS FOR APRIL 20.2 Doc No 163 164 165 166 167 168 169 170 171 172 173 174
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Day 7 8 14 15 17 21 26 27 28 30
Name of Payee JJ Suppliers Cash Makro Cash Fine Stationery Telkom Cash ABC Traders S. Raider Cash Y. Young Kees Properties
Bank
Stationery
13 580 530 6 100 495 318 243 525 2 655 500 538 3 900 1 420
00 00 00 00 00 00 00 00 00 00 00 00
30 804 B6
00
Wages 530
00
495
00
525
00
Trading stock
6 100 318
6 691
00
6 691
00
B1
Capital
CPJ 02
Amount
Sundry Accounts Fol. Details
13 580
00
B3
Equipment
243
00
N8
Telephone
500
00
B2
Drawings
3 900 1 420
00 00
N5 N3
Salaries Rent expense
19 643
00
00
00
2 655 538
318 00 N4
00
00
2 088 00 N6
23
8 755 00 B5
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Facilitator’s Guide G09 ~ Economic and Management Sciences
Unit
1
GENERAL LEDGER OF RAIDER TRADERS BALANCE SHEET SECTION CAPITAL Month
Day
Detail
Fol
Amount
B1
Month
Day
Detail
Fol
20.2 Apr
1
Balance Bank
b/d CRJ 2
Amount
63 309 6 691 70 000
DRAWINGS 20.2 Apr
27
Bank
CPJ 2
B2
500
EQUIPMENT 20.2 Apr
1 7
Balance Bank
b/d CPJ 2
B3
12 050 13 580 25 630
VEHICLES 20.2 Apr
1
Balance
b/d
26 700
TRADING STOCK 20.2 Apr
May
1
Balance
b/d
30
Bank
CPJ 2
1
Balance
b/d
B4
20.2 15 850 Apr
B5 30
8 755
Cost of sales Balance
24 605 8 570
May
1
Balance
30
Sundry accounts
1
Balance
b/d
CRJ 2 b/d
20.2 780 Apr
32 347
20.2 Apr
1
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Balance
b/d
150
24
8 570
B6 30
Sundry accounts
Balance
CPJ 2
30 804
c/d
2 323
33 127 2 323
CASH FLOAT
16 035
24 605
BANK 20.2 Apr
CRJ 2 c/d
33 127
B7