ECONOMIC AND MANAGEMENT SCIENCES

GRADE 8

CASE STUDY: 2022 TERM 3

MARKS: 30

SCHOOL: ______________________________________

LEARNER: _____________________________________

DECLARATION BY LEARNER:
I HEREBY CONFIRM THAT ALL INFORMATION CONTAINED IN THIS DOCUMENT IS MY
ORIGINAL WORK.

______________________ ______________
SIGNED DATE

EXAMINER:__________________________________

MODERATOR:________________________________

INSTRUCTIONS

1. Answer ALL the questions.

2. Read through ALL the information and instructions before starting.
3. Write neatly and legibly

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CASE STUDY

Auto Renew is a panel beating business in Bloemfontein, Free State. They rent their premises from a
private owner, Dr Hugo for R12 000 per month which is paid on the first day of every month.

Study the information and help them by answering the questions.

Transactions / information for 1-15 July 2022

The bank balance on 1 July 2022 is R317 583

Auto Renew rent their premises from a private owner, Dr Hugo for R12 000 per month which is paid
on the first day of every month
They employ a cleaner, Megan, that is paid R5 000 twice a month.
Auto Renew only use genuine vehicle parts when carrying out repairs.

2 * Issue a cheque to Oranje Toyota for parts needed for a repair. R19 888
5 Pay the Telkom telephone and cell phone account for June – R1 499
7 Receive an account from Lindsay Saker Vehicles and pay them R12 000
9 * Issue a cheque of R10 000 to Raymond Ryan, the owner of Auto Renew, for personal
expenses.
11 Lindsay Saker sends Auto Renew an email stating that the first two digits of the cheque they
received were turned around. Issue a cheque to correct the mistake.
15 The FNB bank statement shows a payment to ABSA Insurance for R4 650.
Total receipts in the CRJ shows R200 555

QUESTIONS

1. Complete the Cash Payments Journal for 1-15 July and close the journal off at the end of
this date. Use the template in the Annexure. (14)

2. Calculate the bank balance on 15 July 2022. (4)

3. Does Auto Renew own any fixed assets? Motivate your answer. (2)

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4. Analyse the transactions marked with a * under the headings in the table in the
Annexure. (8)

5. Name the source document for the transactions on:

5.1 2 July; and (1)

5.2 15 July. (1)

CASE STUDY TOTAL: 30 MARKS

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 ANNEXURE

NAME: _____________________________

Cash Payments Journal for Auto Renew July 2022

Sundry Accounts
Doc Day Name of Payee Fol Bank Auto Parts
Amount Fol Details
Chq 1111

(14)

ASSETS OWNER’S EQUITY

Date Effect Reason Effect Reason
2
9
(8)

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 ECONOMIC AND MANAGEMENT SCIENCES

GRADE 8 CASE STUDY

2022 TERM 3

MARKING GUIDELINES

  Cognitive levels Activity Percentage of task

QUESTION Lower order Middle order Higher Order
9 12 9
Departmental Requirement 30% 40% 30%
ACTUAL % 30% 40% 30%

1. See below (14)

2. 317 583  + 200 555 - 74 037 = R444 101 (4)

3. No – they are renting premises. (2)

4.
ASSETS OWNER’S EQUITY
Date Effect Reason Effect Reason
2 -19 888 Bank decreases -19 888 Expense
9 -10 000 Bank decreases - 10 000 Capital Decrease/Drawings increase
(6)

5.
5.1 Cheque counterfoil (1)
5.2 Bank Statement (1)

CASE STUDY TOTAL: 30 MARKS

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 Cash Payments Journal for Auto Renew July 2022
Sundry Accounts
Doc Day Name of Payee Fol Bank Auto Parts
Amount Fol Details
Chq 1111 1 Dr Hugo 12 000 12 000 Rent Expenses
Chq 1112 2 Oranje Toyota 19 888 19 888
Chq 1113 5 Telkom 1 499 1 499 Telephone Expenses
Chq 1114 7 Lindsay Saker Vehicles 12 000 12 000
Chq 1115 9 Raymond Ryan 10 000 10 000 Drawings
Chq 1116 11 Lindsay Saker Vehicles 9 000 9 000
BS 15 ABSA Insurance 4 650 4 650 Insurance
Chq 1117 Cash (Megan)  5 000 5 000 Salaries & Wages
74 037 40 888 33 149

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