NORTHERN CAPE DEPARTMENT OF EDUCATION

MATHEMATICAL

LITERACY

LEARNER NOTES

FINANCIAL DOCUMENTS
1
You need to be able to find information from a variety of documents (till slips,
account statements and bills, etc.). You also need to understand and check the
calculations.

1. Read the financial document with comprehension – look for names, dates, balances etc.
2. Read the question carefully.
3. Read the financial document again.
4. Answer the questions.

HOME LOAN STATEMENT

1. A loan agreement between two parties.

2. The lender gives money to the borrower, with the expectation that the money will be
repaid, together with interest within a fixed period of time.
3. The interest on the loan is calculated using either a fixed or variable interest rate.
4. The fixed time period of the loan is often referred to as the term of the loan and is
usually stated in months.

EXAMPLE
ANNEXURE A shows a home loan statement and transaction history for the period
1 March 2017 to 28 February 2018.

PLEASE NOTE:
• The loan period is 20 years.

1. Give the name of the borrower.

Mr J.J.B. du Toit (2)

2. What is the loan amount?

R900 000,00 (2)

3. What does the term debit mean in the context of the question?
It is the amount of money that the borrower owes the bank/loan organisation. (2)

4. Determine A, the initial fee.

R5 250 × 1,14
= R5 985,00

OR

14
R5 250 + ( × R5 250)
100
= R5 250 + R735
= R5 985,00

OR
R905 985,00 – R900 000,00 (3)
= R5 985,00

2
1.5 The interest rate decreases on 1 March 2018 by 0,25%. Determine the interest
rate that is used from 1 March 2018.

9,52% - 0,25%
= 9,27% (2)

1.6 Calculate the total interest that was charged for the tax year ending
28 February 2018. (2)

R5 434,92 + R6 596,06
= R12 030,98 (2)

1.7 VAT increased on 1 April 2018 from 14% to 15%. If the initial fee were to be
calculated on 1 April 2018, how much more would the borrower had to pay as
a result of the increased VAT?

New initial fee = R5 250 × 1,15

= R6 037,50

Difference in VAT = R6 037,50 – R5 985,00

= R52,50 (3)

1.8 Calculate the amount interest owed on 31 March 2018 that will be shown on the
next statement.

You may use the following formula:

Bnr
Interest = where,
365

B = closing balance on last day of previous month

n = number of days in month
r = interest rate

R909 488,57 31 9,27%

Interest =
365
= R7 160,54 (3)
[19]

3
ANNEXURE A - HOME LOAN STATEMENT

MR J.J.B. DU TOIT Date 2018-02-28

P.O. Box 354 Statement 2017-03-01 to 2018-02-28
UPINGTON period
8800
Account number: 5439823498

Name of branch Thibault Square

Approved loan amount R900 000,00 Monthy payment R8 527,41
Current interest rate 9,52% Pay date 2018/04/03
Payment frequency Monthly

Date of Transaction Debit Credit Balance

transaction
2018-01-09 BROUGHT 900 000,00 900 000,00
FORWARD
2018-01-09 Initial fee* A 905 985,00
2018-01-31 Interest 5 434,92 911 419,92
2018-02-02 Debit order 8 527,41 902 892,51
2018-02-28 Interest 6 596,06 909 488,57

* Total cost: R5 250 (VAT excluded) + VAT ... = A

The VAT on all fees and cost on you loan account shall increase from 14% to 15% with
effect of 1 April 2018. All costs on our statements on which VAT is charged is indicated
by an asterisk (*).

4
 TILL SLIP

A till slip is a receipt which serves as a proof of payment for goods and services.
Every time you buy an item from a shop, you should receive a till slip.

By law, South African till slips must include:

• the name of the shop
• the address of the shop
• the VAT number of the shop
• the words “Tax Invoice”
• the shop's invoice number
• the date and time of the sale
• a description of the items or services bought
• the amount of VAT charged (15%)
• the total amount payable.

VAT is not charged on some essential groceries in South Africa. These include:
paraffin; brown bread; maize meal; samp; mealie rice; dried mealies; dried beans;
lentils; tinned sardines; milk powder; milk; rice; vegetables; fruit; vegetable oil and
eggs.

RESTAURANT BILL (TILL SLIP)

QUESTION 1
TABLE 1: MEALS ORDERED BY THE FOUR FRIENDS AT ‘MEET & EAT’
RESTAURANT.

Sibahle Kananelo Collen Aanadi

2 Sodas Fruit cocktail juice Green salad Nachos
Green salad Chicken & Avo salad Vegetarian pizza Ribs
Garlic loaf Chocolate milk 2 Grape juices
Steak and chips shake Ice cream &
chocolate sauce

5
COMBINED BILL FOR MEALS ORDERED BY THE FOUR FRIENDS FROM
MEET & EAT RESTAURANT

BILL
Meet & Eat Restaurant
19 December 2016
Table: 7
Waiter: Mark
1 Soda R 12,50
1 Fruit Cocktail Juice R 14,50
1 Chocolate Milkshake R 15,50
2 Grape juices R 29,00
2 Green Salads R 46,00
1 Chicken & Avo Salad R 48,00
1 Garlic Loaf R 28,00
1 Nachos (Hot) R 42,00
1 Steak & Chips R105,00
1 Vegetable Pizza R 65,00
1 Ribs (Special) R 92,00
1 Soda R 12,50
1 Ice cream & Choc
Sauce R 24,00
Sub-total: R534,00

Gratuity (Tip): ………….

Total Amount: ………….

KEY: Gratuity (tip) is an amount of money given to the waiter by a customer in

return for service.

1.1 Write down the name of the waiter who served the FOUR friends at the Meet
and Eat restaurant. (2)

1.2 The total amount for all the drinks (liquids) is R84,00 according to the bill.
Verify this amount. (2)

1.3 Calculate the price of one Grape Juice. (2)

1.4 The minimum gratuity amount is 10% of the Sub-total amount. Determine
the minimum gratuity (tip) the FOUR friends should pay to the waiter. (2)

1.5 Calculate the total amount of the bill. (2)

1.6 The FOUR friends decided to divide the total amount of the bill equally
amongs themselves. Calculate the amount each person must pay. (2)
[12]

6
ACCOUNT STATEMENTS

At some clothing and food stores, it is possible to open an account, buy

goods on credit and pay off what you owe the store on a monthly basis.

Send to clients normally once a month e.g. Edgars statement.

It usually includes:
 purchases
 interest
 payments made on account
 amount due
 due date

Debit on the statement refers to money that is owed by the client.

Credit on the statement refers to an amount paid on the account (by the client).

QUESTION 2

Dean Peterson has a clothing account at Markham clothing store. At Markham

a customer can choose either a 6-month or a 12-month revolving (ongoing) payment option.

ANNEXURE B shows Dean's clothing store statement from Markham for a certain period
of the year.

Use ANNEXURE B to answer the questions that follow.

2.1 Write down the total balance owing on Dean's account. (2)

2.2 Give the full date on which the current instalment is due. (2)

2.3 State the opening balance of the 12-month revolving account option. (2)

2.4 Write down the price of the item that was returned. (2)

2.5 Determine the total amount paid using FNB electronic payments. (3)
[11]

7
ANNEXURE B

MARKHAM ACCOUNT STATEMENT OF D PETERSON

ACCOUNT
STATEMENT

STATEMENT DATE: 15 JAN. 2019

MR D PETERSON
27 SECOND AVENUE
COLRIDGE
VRYBURG
8601
1 CARD, EXCLUSIVE OFFERS
OVER 20 RETAIL BRANDS
Account customers are automatically
TFG REWARDS members.
DATE REFERENCE DESCRIPTION AMOUNT
6 months revolving Opening balance 101,99
31 DEC. HO FNB electronic payment Payment 101,99 CR
Installment 0,00 due Closing balance 0,00
12 months revolving Opening balance 1 215,36
17 DEC. ASJ Zevenwacht Mall Purchase 3 750,00
19 DEC. ASJ Zevenwacht Mall Purchase 4 000,00
19 DEC. ASJ Zevenwacht Mall Purchase returned 3 750,00 CR
31 DEC. HO FNB electronic payment Payment 698,01 CR
12 JAN. My kitchen 26,70
12 JAN. Kids only 20,00
12 JAN. Interest 92,66
Installment 440,00 Due 38,37 Closing balance 4 656,71

My current What can I What is my By how much What is my

credit allocation spend? installment? am I in arrears? balance?
8 800,00 4 143,29 440,00 0,00 4 656,71
TOTAL DUE
CURRENT 30 DAYS 60 DAYS 90 DAYS
(BY 1ST)
38,37 0,00 0,00 0,00 38,37

[Adapted from a Markham's account]

8
QUESTION 3

3.1
Albie's was contracted by Veritas High School to install and manage their network
system. TABLE 1 shows the account statement received by the school from Albie's.

TABEL 1: ALBIE'S NETWORK INSTALLATION STATEMENT FOR

APRIL 2020
ABSA BANK STATEMENT OF ACCOUNT ACOUNT NUMBER:
4054170288
Albie's Wireless Contact No: 053 631 4200
9 Uys Street email:admin@albieswireless.co.za
De Aar reg nr:2010/173328/23
7000
Period:2020/04/01 to 2020/04/30
Date Description Transaction (R) Balance (R)
Balance brought forward 185 960,00
2020/04/01 Credit Interest 67,25 186 027,25
2020/04/03 Premises Rent: Debit - 10 800,00 A
Order
2020/04/03 Tebe Security: Debit Order - 8 909,00 166 318,25
2020/04/09 Cheque Deposit: Veritas 183 518,25
B
High School
2020/04/15 Internet Transfer: PA 10 643,89 194 162,14
Academy
2020/04/23 Cheque Deposit: Top D 8 000,00
Academy
2020/04/30 Salary: M De Kock - 1 950,00 182 662,14
(Assistant Technician)
2020/04/30 Cheque Account Fees 480,00 182 182,14
2020/04/30 Balance carried forward 182 182,14
space

Use TABLE 1 above to answer the questions that follow.

3.1.1 Write down the balance, excluding interest, transferred on the last day
of the previous month. (2)

3.1.2 Calculate the annual interest rate that was used on the balance brought
forward to obtain the credit interest.

You may use the following formula:

creditinterest 365
Annual interest rate =  100% (2)
balance

3.1.3 Calculate the values of:

(a) A, balance (2)

(b) B, transaction fee (2)

9
 3.1.4 Explain why negative signs occur, before certain values in the
account. (2)

3.1.5 Calculate the total amount credited in favour of Albie's Wireless. (2)

3.2
Mr E van Wyk is an employee at Albie's Wireless. ANNEXURE C shows a
copy of his salary advice.

Use ANNEXURE C to answer the questions that follow.

3.2.1 Explain the term employee on his salary advice. (2)

3.2.1 Calculate C, his Net salary on his salary advice. (4)

[18]

ANNEXURE C

MNR. E VAN WYK'S PAYSLIP

ALBIE'S WIRELESS
Albie's Wireless
9 Uys Street Tel nr: 053 631 4200
De Aar Fax nr: 053 631 4225
7000
Email:admin@albieswireless.co.za
Name of Employee Employee ID Tax Ref Number
Edgar van Wyk 8507115428187 1692399018
Appointment Date: 01 January 2015
Employee Designation Number Department Salary Period
Area Bestuurder H11015 Stock 01/10/2020-31/10/2020
Deductions Earnings
Basic Salary R25 000 P.A.Y.E. R2 540,52
Travel Allowance R 4 700 UIF R 148,72
Housing Allowance R 1 200 Pension Fund 7,5% of basic salary
Medical Aid R3 876,59

Gross Income ………. Total Deductions ………………..

Nett Salary C

10
MONTHLY MEDICAL AID STATEMENT

QUESTION 4

Mrs Chan, a teacher from Brakpan, received a monthly statement from GEMS
(Government Employee Medical Scheme), as shown in ANNEXURE D. Mrs Chan has one
dependent, her son Lee, on her medical aid.

Use ANNEXURE D to answer the questions that follow.

4.1 Which month is covered by this statement? (2)

4.2 State why the member had to pay R445,10 to the supplier. (2)

4.3 Write down the name of the general practitioner visited. (2)

4.4 Calculate the new price of the acute medication (under the tariff code) if the
price increased by 6,3%. (3)

4.5 Calculate the total amount of tax claimable in the previous statements if the tax
claimable is the amount paid by the member directly to the supplier. (2)

4.6 Define the term debit within the context of the statement. (2)

4.7 Show how the total amount of R479,75 was calculated. (2)
[15]

11
 ANNEXURE D

MEMBER: 3526178 STATEMENT REFERENCE: A356748 DATE 15/12/17

GEMS MRS CHAN DOCUMENT REFERENCE: 5109725 STATEMENT 187992

Transaction information Payment information

Date treated Patient Tariff Amount Benefit Scheme Scheme Member Member See Amount Amount paid Tax claimable
code claimed approved paid paid owes paid/owes below paid in from other limits amount
supplier member scheme supplier hospital
benefit
DIS-CHEM PHARMACY 098 234 (Chemist)

08/12/17 Lee Acute 736,90 9505

08/12/17 Lee Chronic 173,03 173,03 173,03 173,03
08/12/17 Lee Chronic 117,44 117,44 117,44 117,44
08/12/17 Lee Chronic 61,50 61,50 61,50 61,50
08/12/17 Lee Chronic 80,98 80,98 80,98 80,98
08/12/17 Lee Chronic 46,80 46,80 46,80 46,80
Dhlamini M DR 1627805 (General Practitioner)

08/12/17 Lee 0192 343,00 343,00 870 343,00

09/12/17 Lee 0132 102,10 102,10 870 102,10
Totals: 1 661,75 479,75 445,10 445,10

Summary of Financial Information Summary of codes

Payable to Member (Credit) 0,00
Less owed to Scheme (Debit) 0,00 870 Overall Limit Exceeded
Member to pay Supplier(s) (Debit) 445,10 9505 Pre authorisation required
Tax claimable to date 5 326,66

12
TAX CERTIFICATE

QUESTION 5

Ulwazi received his employee tax certificate (IRP5) (ANNEXURE E) for the financial year
ending 28 February 2013. Some of the information has been omitted.

Use ANNEXURE E to answer the following questions.

5.1 Briefly explain the difference between an employee and an employer. (2)

5.2 What does the abbreviation UIF stand for? (2)

5.3 Write down the taxable amount that Ulwazi received as an annual payment. (2)

5.4 Did Ulwazi receive a non-taxable reimbursive travel allowance? Give a valid
reason for your answer. (2)

5.5 Calculate the average monthly medical scheme fees tax credit. (2)

5.6 Calculate the missing amount A. (2)

5.7 Indicate how the gross non-retirement funding income was calculated. (2)

5.8 From 1 March 2012 to 31 July 2012 Ulwazi contributed a total of R4 975,25 to
his pension fund.
Determine the average monthly contribution for the remainder of the financial
year. (5)
[19]

13
ANNEXURE E
EMPLOYEE TAX CERTIFICATE
Transaction year: 2013 Year of Assessment: 2013 Period of reconciliation: 2012/2013
TYPE OF CERTIFICATE: IRP5
EMPLOYEE INFORMATION
Surname: Ramile Date of birth: 19750616
First name: Ulwazi Income tax number: 0804858209
EMPLOYER INFORMATION
Trading or other name: Department of Education
INCOME RECEIVED INCOME RECEIVED CONTINUED … TAX CREDITS, CONTRIBUTIONS
AMOUNT SOURCE CODE AMOUNT SOURCE CODE AMOUNT SOURCE CODE
R 185 463 3601 GROSS RETIREMENT FUNDING INCOME PAY-AS-YOU-EARN
R 15 521 3605 R 185 463 3697 R 30 075,79 4102
R 26 188 3713 GROSS NON-RETIREMENT FUNDING INCOME TOTAL TAX AND UIF
R 8 640 3810 R 50 349 3697 R 30 075,79 4149
MEDICAL SCHEME CONTRIBUTIONS TAX CREDIT
DEDUCTIONS/CONTRIBUTIONS R 2 760,00 4116
R 13 909 4001
R 20 013 4005
R 8 640 4474
TOTAL DEDUCTIONS/CONTRIBUTIONS
R A 4497
SOME SOURCE CODES
3601 INCOME – TAXABLE 3713 OTHER ALLOWANCES – TAXABLE 4005 MEDICAL AID CONTRIBUTIONS
MEDICAL AID CONTRIBUTIONS PAID ON BEHALF OF
3605 ANNUAL PAYMENT – TAXABLE 3810 4474 EMPLOYER'S MEDICAL AID CONTRIBUTIONS
EMPLOYEE
REIMBURSIVE TRAVEL ALLOWANCES –
3703 4001 CURRENT PENSION FUND CONTRIBUTIONS 4497 TOTAL DEDUCTIONS/CONTRIBUTIONS
NON-TAXABLE

14
BANK STATEMENT

A bank statement is usually sent to the account holder monthly.

Bank statements show the following for each transaction:

• the date of the transaction
• a description of the transaction, showing the type of transaction
• the amount of the transaction, indicating whether it is a debit or credit (often in
different columns)
• a column for the balance after each transaction.

Account holder: The person whose name the account is in.

Transaction: Any event where money moves into or out of an account.
Debit transaction: Amount of money paid out of an account.
Credit transaction: Amount of money deposited into an account.
Opening Balance: The amount in the account at the beginning of the period.
Closing balance: The final amount at the end of the period.

Banks offer different types of accounts and services:

• Savings account: A bank account that earns interest. You can use a savings
account for short – term savings.

• Cheque or current account: A bank account that is used to deposit and withdraw
money by visiting the bank branch, using an ATM or Internet banking or by
writing a cheque. These are usually available to people who earn a regular income.

• Fixed deposit account: This account is aimed at those who have a lump sum they
want to invest over a fixed period of time (i.e. a medium or long term saving).
Interest is also earned on the investment.

• Credit account (with credit card): An account either with a store or bank, that
allows the account holder to purchase items now and pay for them later.

• Debit account (with debit card): Debit cards can be used to pay for purchases.
When it’s swiped, money is deducted from the account.
Credit is not available on this account.

15
QUESTION 6

Bank account holders are allowed to request periodical (i.e. either for weekly,
monthly, six months period, etc.) statements on their accounts.
A TSD Bank Prestige Plus Current account statement for the period 09/09/2017 to
16/09/2017 is shown on ANNEXURE F.

Use ANNEXURE F to answer the questions that follow.

6.1 Write down the name of the account holder. (2)

6.2 Determine the total number of TRANSACTIONS made on this

account. (2)

6.3 Calculate the total amount of IB transactions made on this account. (3)

6.4 The account holder owed the bank a certain amount on a particular day.
Identify the amount that the account holder owed the bank. (2)

6.5 Calculate the total amount deposited into this account during the period
of the statement. (2)

6.6 What percentage of the total amount deposited into this account was
paid towards TSD BANK BOND? (3)

6.7 Calculate the Pre-Paid Electricity fee on 16/09/2017. (2)

[16]

16
ANNEXURE F

Prestige Plus Current Account Statement

TSD Bank From: 09/09/2017
Cornerstone Building To: 16/09/2017
Marshalltown
Gauteng 2107
Account Number: 47 962 1719
Miss T Diale
1145 Leslie Street
Vereeniging 1930
Details Debit (R) Credit (R) Date Balance (R)
Balance Brought 54,31
Forward
IB Payment to Tuff 20,00 09/09/2017 34,31
Lady
Purchase 63,98 13/09/2017
29,67-
Salary 9282 382,14 14/09/2017 352,47
Salary 9004 22 695,98 15/09/2017 23 048,45
Salary 9234 191,07 15/09/2017 23 239,52
IB Transfer to Teboho 2 400,00 15/09/2017 20 839,52
IB Payment to Mike 1 000,00 15/09/2017 19 839,52
IB Payment to Ntsiki 600,00 15/09/2017 19 239,52
Credit Card 2 361,52 15/09/2017 16 878,00
Insurance 9847 500,00 15/09/2017 16 378,00
Insurance 9140 532,75 15/09/2017 15 845,25
STD Bank Bond 5 569,75 15/09/2017 10 275,50
Insurance 9303 801,23 15/09/2017 9 474,27
Pre-Paid Electricity 100,00 16/09/2017 9 374,27
Vehicle repayment 3 168,79 16/09/2017 6 205,48
##Pre-Paid Electricity … 16/09/2017 6 204,38
Fee
Ladies Fitness 289,00 16/09/2017 5 915,38
End

NB: Transaction means any debits or credits on the account.

IB > Internet Banking Transactions

## These fees are inclusive of VAT at 14% (Statement prior to increase in VAT)

17
MUNICIPAL BILLS

A bill send to you for services used by your household, such as electricity and water.
Tariff is the rate charged per unit for the services.

QUESTION 7

ANNEXURE G shows an extract from Mr Daniels' monthly municipal statement including

the residential water and sewer tariff tables.

7.1 Write down the market value in words. (2)

7.2 Write down the unit of measurement that was used for the meter readings. (2)

7.3 Determine the value of A. (2)

[06]

18
ANNEXURE G
EXTRACT FROM MR DANIELS' MONTHLY MUNICIPAL STATEMENT
Mr KJ Daniels Date: 2019/03/12
14 Sirkoon Street Statement for: March 2019
Kruger Park
2738

NUMBER OF
STAND DATE OF MUNICIPAL
DWELLINGS PORTION REGION
SIZE VALUATION VALUATION
Market value
463 m2 1 2018/07/01 R1 WARD C
R944 630,00

ACCOUNT NUMBER: 345 678 8900 60

TOTAL
SUBTOTAL
AMOUNT
(R)
(R)
Water and sewer
Reading period 2019/01/16 to 2019/02/12
Meter reading Start: 795 000
End: 807 000
Water usage 12 kℓ (kilolitres)
Daily average consumption 0,429 kℓ
Charges for 12 kℓ are based on a sliding scale for a 28-day period
Total water charge (excluding VAT) B
Water demand management levy 22,64
Monthly sewer charge based on stand size (excluding VAT) A
VAT: 15% 73,75

PAYMENT DUE XXX

DUE DATE 2019/03/27

STEPPED RESIDENTIAL WATER SEWER MONTHLY CHARGE BASED ON

TARIFF STAND SIZE
KILOLITRES 2018/19 STAND SIZE (m2) 2018/19
PER TARIFF (R/kℓ) TOTAL CHARGE
CONNECTION EXCLUDING (IN RAND)
PER MONTH 15% VAT EXCLUDING 15%
VAT
2
from 0 to 6 8,28 Up to and including 300 m 194,67
above 6 to 10 8,79 Larger than 300 m2 to 1 000 378,95
2
m
above 10 to 15 15,00 Larger than 1 000 m2 to 2 573,29
2
000 m
above 15 to 20 21,83 Larger than 2 000 m2 836,02
[Adapted from www.joburgwater.co.za and www.jotariffs.co.za]

19
QUESTION 8

ANNEXURE H shows an invoice of the cellphone contracts taken out by Mr Fortune.

Use ANNEXURE H to answer the questions that follow.

8.1 State the number of cellphone contracts shown on this invoice. (2)

8.2 Name the cellphone contract which shows the most expensive device. (2)

8.3 Show how the VAT amount of R142,95 was calculated. (2)

8.4 Calculate the missing value A. (2)

8.5 State, in words, the probability of randomly selecting a cellphone contract that
is not from ABC. (2)
[10]

20
ANNEXURE H

CELLPHONE CONTRACT INVOICE

Customer Care
Cellphone Account Tel: +27083245 Tel:123(free from
cellphone)
E-mail: customercare@ABC.co.za
Website: www.abc.co.za

Mr SJ Fortune Invoice date 17-01-2021

5 Second Avenue Account Number BA4536782C
Zone 2 Payment Method Direct Debit
Smelderado Due Date 01-03-2021
2463 Arrears R0,00

Summary of charges for your ABC plan:

ABC Made For You S Contract date: 13-03-2019 to 12-03-

2021

Description From To Amount excl. VAT

Device 17-12-2020 16-01-2021 260,87
ABC made for You S 17-01-2021 16-02-2021 94,78

Subtotal: (excl. 15% VAT) R 355,65

ABC made for You XS Contract date: 13-05-2019 to 12-05-

2021

Description From To Amount excl. VAT

Device 17-12-2020 16-01-2021 R173,91
ABC made for You 17-01-2021 16-02-2021 R86,09
XS

Subtotal: (excl. 15% VAT) R260,00

Your ABC Choice 5GB Contract date: 19-08-2019 to 18-08-

2021

Description From To Amount excl. VAT

Device 17-12-2020 16-01-2021 R165,22
Your ABC Choice 17-01-2021 16-02-2021 R172,13
5GB

Subtotal: (excl. 15% VAT) R337,35

VAT total 15% R142,95

Total amount due for current period (VAT incl.) A

21