INSTRUCTIONS

1. Answer all the questions on the ​answer sheet​ provided.

2. Read all questions carefully and follow the instructions precisely.
3. Answer in ​dark pencil​ or ​blue​ or ​black ink​ – no ​tippex !
4. Marks will be deducted for ​untidy work.

SECTION A (SHORT QUESTIONS)

Question 1

1.1 Name the three levels of government. (3)

Legislative government

Executive government

Judicial government

1.2 Name three goods that are VAT exempt. (3)

Paraffin

Brown bread

Dried food

1.3 Give an example of an indirect tax and a direct tax. (2)

Indirect Tax Value Added Tax

Direct Tax Personal income tax

1.4 Give 2 examples of Fixed Assets ( use their proper names, i.e. NOT premises ) (2)

Land

Cars

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SECTION B (THE ECONOMY)

Question 2

2.1 Name one type of consumer market. (1)

Financial services

2.2 Name two types of factor markets. (2)

Capital Entrepreneurship

2.3 What are motorists charged for the right to use public roads ? (1)

Tax on petrol

2.4 What do we call the way in which an individual or a group live every day. (1)

L​iving standard

5
Question 3
3.1 Indicate if the following refer to ​skilled, semi-skilled or unskilled workers. ​ (5)

​ANSWER
3.1.1 Factory cleaner unskilled
3.1.2 Lawyer skilled
3.1.3 Mechanic semi-skilled
3.1.4 Nurse skilled
3.1.5 Teacher skilled

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 SECTION C (FINANCIAL LITERACY)

Question 4

Analyse the following transactions of Vans Garden Service, by completing the table below.

Example​ – Paid Telkom for the telephone account by cheque, R975.

Transaction no.

1 The owner started his business with R120 000 as his capital contribution.
2 The business bought lawnmowers and spades from Game Stores, R38 500.
3 Received R8 500 for garden services rendered to customers.
4 Purchased lever-arch files and receipt books from CNA, R125.

No. Source Document Account Debit Account ASSETS OWNER’S

Credit EQUITY
Example Cheque counterfoil Telephone Bank -975 -975

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​Question 5

​Using the transactions provided below, draw up the Cash Receipts Journal and Cash Payments Journal of
Eddie’s Plumbing Services for the month of May 2019.
Journals are to be closed off at the end of the month.

​TRANSACTIONS

DAY
1 S. Eddie commenced his business, Eddie’s Plumbing Services by depositing R100 000 directly into the
business bank account. Issued receipt no. 01.

5 The business purchased a bakkie and paid by cheque no. 001, R85 000.
Cash received for services rendered, R4 500.

9 Eddie’s Plumbing Services installed a new geyser at M. Salah’s home and received R2 450.

14 Paid wages in cash to the labourers, Angus and Fred. They earn R2000 each.

20 Eddie’s Plumbing Services received a cash donation of R2 750 from Willows Community Trust.
This was as a result of him giving several people work.
S. Eddie increased his capital contribution to R175 000.

21 Paid wages for the week to the same employees.

Cash received for services rendered, R9 450.

23 The business purchased a computer, chairs and a desk for the office from Game, R55 000.

25 Purchased stationery from Waltons, R650. Paid by cheque.

28 Paid the rent to the landlord, Warren Pat, for the office space, R9 500.

31 Paid the salary of the receptionist, N. Kwana, R6 500.

CASH RECEIPTS JOURNAL OF Eddie’s Plumbing services - 2019 May CRJ1

Doc. Analysis of Current Sundry Accounts

Day Details Fol. Bank
No. Receipts Income Amount Fol Details
1 1 S.Eddie 100000 Capital

2 5 Services rendered 4500 4500 4500

3 9 M.Salah 2450 2450 2450

4 20 Willows Community 2750 2750 Donation

Trust
5 20 S.Eddie 75000 75000 Capital

6 21 Services rendered 9450 9450 9450

CASH PAYMENTS JOURNAL OF Eddie’s Plumbing Services - May 2019 CPJ1

Doc. Sundry Accounts

Day Name of Payee Fol. Bank Wages Equipment
No. Amount Fol Details
1 5 85000 85000

2 14 Angus 2000 2000

3 14 Fred 2000 2000

4 21 Angus 2000 2000

5 21 Fred 2000 2000

6 23 Game 55000 55000

7 25 Waltons 550 550

8 28 Warren Pat 9500 9500 Rent Payment

9 31 N.Kwana 6500 6500

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SECTION D (ENTREPRENEURSHIP)

Question 6

6.1 List 3 things that can affect the quality of labour. (3)

3
6.2 Match the description in column A with the word/words in column B.

COLUMN A COLUMN B
6.1
The remuneration for capital. A Wages
6.2
The remuneration for the production factor called land. B Profit
6.3 The process of transforming inputs into usable products that
C Rent
can satisfy a need or want.
6.4
The remuneration for labour. D Shares
6.5 The reward an entrepreneur receives for his hard work and the
E Interest
risks he is taking.
6.6
An example of inputs. F Production
6.7 Raw material
An example of financial capital G

6.1 E

6.2 C

6.3 F

6.4 A

6.5 B

6.6 G

6.7 D

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TOTAL: 75