TEACHER’S COMMENT
NAME
TEACHER PARENT’S COMMENT
CLASS
MARK
PERCENTAGE
PARENT’S SIGNATURE
HERZLIA MIDDLE SCHOOL
GRADE 9 EMS EXAMINATION 28 MAY 2014 TIME : 1 ¼ hours MARKS : 100 This paper consists of 15 pages. Please see that you have them all and they have been printed correctly. Write your answers in the spaces provided on this paper. In the calculations, show all your working.
Section A Question One
(10)
Match the statement in column B with the word or phrase in column A. Write only the letter from column B next to the relevant number from column A in the answer column. Column A
Column B Customers who owe the business money. An item that is consumed when used.
Your Answer:
1.1
Money
A
1.2
Cost of sales
B
1.3
Liability
C
A consumer tax
1.3
1.4
Economic problem
D
A current asset
1.4
1.5
Standard of living
E
1.6
Factors of production
F
1.7
Debtor
G
1.8
VAT
H
1.9
Asset
I
1.10
Expense
J
The price that a business pays for an item sold. Unlimited needs and wants, but limited resources. A debt of the business Natural resources, labour, capital and entrepreneurship. How well a person is able to provide for their needs with their available resources. An item of value, owned by a business that can be reused.
1.1 1.2
1.5 1.6 1.7 1.8 1.9 1.10
Question Two TRUE/FALSE: write only T or F in the column provided.
(5) T/F
2.1
Capitalism is another word for Planned Economy.
2.2
South Africa has a mixed economy.
2.3
Globalisation refers to the practice of limiting international trade through import duties.
2.4
International trade is simply import and export between different countries.
2.5
The economic problem of scarcity refers to limited needs and unlimited resources.
2
Question Three
(5)
Multiple Choice (write only the correct letter in the space provided) 3.1
The following defines a Planned Economy best: A B C D
3.2
The following defines a Market Economy best: A B C D
3.3
An economic system where economic decisions are made by both the government and private individuals. An economic system where there is no government, and no private ownership of resources. An economic system where all economic decisions are made by the government. A system where private individuals are responsible for making all economic decisions.
A system where private individuals are responsible for making all economic decisions. An economic system where all economic decisions are made by the government. A tribal system where the tribe manages the economy according to their needs. A system where bartering is used by the government to provide for the needs of the population.
Which of the following characteristics are found in a Planned Economy: i
Government controls the factors of production.
ii
Profit earned is kept by private individuals.
iii
Private individuals own the factors of production.
iv
Government decides what goods and services to produce, and how they will be produced. Choose the correct letter below:
A
All of the above
B
i,ii,iv
C
None of the above
D
i and iv only
3
Answer
3.4
Which of the following characteristics define a Market Economy i
Private individuals own and control the factors of production.
ii
Entrepreneurs decide what to produce.
iii
Entrepreneurs decide how production will take place.
iv
Individuals decide what goods and services to consume. Choose the correct letter below:
3.5
A
iii and iv only
B
i only
C
All of the above
D
None of the above
The answers to the following questions define an economic system: i
What will be produced and how it will be produced.
ii
How much tax will be paid.
iii
For whom will it be produced.
iv
How much will it be sold for. Choose the correct letter below:
A
iii and iv only
B
i and iii only
C
i only
D
All of the above
4
Section B Question Four
(8)
Analyse the following transaction by completing the tables below:
4.1
Sold goods for cash with a cost price of R400 at a price of R650.
Account Debit Account Credit
OWNER’S EQUITY
ASSETS EFFECT
REASON
EFFECT
REASON
5
LIABILITIES EFFECT
REASON
Question Five
(7)
Answer the questions based on the Cash Receipts Journal provided below: Cash Receipts Journal of Cadex Traders for November 2013 Details
Doc
Day
5
Cash
014
9
C. Dexter Cash
Fol
Analysis
680
Bank
Sales
680
35 000 4 500
39 500
680
Cost of Sales
Amount
Details of Sundry
340 35 000 Capital 4 500 Rent Income
18
Cash
1 600
1 600
B/S
25
FNB
8
8
30
Cash
2 400
2 400
2 400
1 200
44 188
4 680
2 340
1 600
800 8
Interest received
39 508
5.1
On 9 November, Cadex Traders received R39 500, what was this for?
(2)
5.2
What does the source document B/S stand for?
(1)
5.3
Name one other type of source document used in the Cash Receipts Journal.
(1)
5.4
For what was money received on 25 November 2013?
(1)
5.5
Why is there a ‘Cost of Sales’ column in the Cash Receipts Journal?
(1)
5.6
What is the mark-up percentage used by Cadex Traders?
(1)
6
Question Six
(10)
Post the Journals of Mayville Traders to the General Ledger for the month of August 2013. Note: You do not need to post to all the accounts in the General Ledger, only the accounts provided on the answer sheets. Cash Receipts Journal of Mayville Traders for August 2013 Doc
Day
CRR
03
301
05
CRR
13
Details
Fol
Analysis
Cash G. Gray Cash
4 500 1 500 5 000
Bank
Cost of Sales
Sales
4 500 1 500 5 000 11 000
4 500
Amount
Details of Sundry
2 250 1 500 Rent Income
5 000 9 500
2 500 4 750
1 500
Cash Payments Journal of Mayville Traders for August 2013 Doc
Day
101
01
102
08
103
15
104
18
105
27
Details
Verulum Suppliers Braby Wholesalers GH Stores Telkom Cash
Fol
Bank
4500 5000 2 800 350 1 300 13 950
Trading Stock
Wages
4500 4000 2 800
Amount
Details of Sundry
1000 Stationery 350 Telephone
11 300
7
1 300 1 300
1 350
Question Six Answer sheet: General Ledger of Mayville Traders for August 2013 ………………..……….. Section
Bank Apr
30
Total Receipts
Crj
Apr
30
Total Payments
Cpj
Bank
Crj
Trading Stock
……………………….. Section
Sales Apr
30
Cost of Sales
Stationery
Wages
8
Question Seven
(20)
Kool Monate, proud owner of Sweet Monate Stores, started a sweet and cake business two months ago. He sells sweets and cakes at a profit mark-up of 25% on cost. The transactions for the month of May 2014 are given below: Instructions and Information: 7.1 Record the transactions for May 2014 in the following journals: * * * *
Cash Receipts Journal Cash Payments Journal Debtors’ Journal Debtors’ Allowances Journal
Transactions for May 2014: 1
The owner, Kool Monate, increased his capital contribution to R150 000 by depositing R50 000 into the bank account of the business. Receipt 044 was issued to him.
3
Cash sale of goods for R1 200.
7
Bought Trading Stock for R3 700 and Stationery for R300 from Multi Wholesalers, paid with cheque no. 33.
14
Sold merchandise on credit to J. Naidoo (D1), R1 000 (cost price R800) issued invoice i23.
21
Received a cheque from a debtor, O. Skoloto (D3) for R3 900, issued receipt 045.
25
Cashed cheque 34 to pay wages R500.
29
J. Naidoo returned some of the goods previously bought on credit for R500 (cost price, R400). Issued Credit Note 17.
31
Sold goods to O. Skoloto (D3), R1 250, issued invoice i24.
9
Question Seven Answer sheet: Cash Receipts Journal of Doc
Details
Day
Fol
Analysis
Bank
Cost of Sales
Sales
Debtors’ Control
Amount
Cash Payments Journal of Doc
Details
Day
Fol
Bank
Trading Inventory
Wages
Amount
Debtors Journal of Doc
Date
Details
Fol
Debtors Control
Fol
Debtors’ Allowances
Cost of Sales
Debtors Allowances Journal of Doc
Date
Details
10
Cost of Sales
Details of Sundry
Details of Sundry
Question Eight
(9)
Better the butter be in the shop than not 1 October 2012 by Wendy Knowler
This winter, Mooi River butter was imported from New Zealand otherwise it would not have been in stores at all. Mooi River butter, the Clover brand, is named after the KwaZulu-Natal Midlands hamlet where the company was first based, and the wax paper wrapping on the 500g brick bears an image of a farm scene. Turn the brick over, though, and you’ll find four words that will make any proud South African do a double take: “Product of New Zealand.” What’s that about? I asked Clover’s deputy CEO Manie Roode. Turns out there was an “under-supply” of local milk in the winter months – too little to produce enough butter for the SA market – so Clover was faced with two choices: cut back on its supply of butter into the marketplace, or import it. “Consumers have short memories – if your brand isn’t available for a few months, many will switch to another,” Roode said. Given Clover’s strong ties with the New Zealand-based dairy co-operative Fonterra, the biggest exporter of dairy in the world, the company opted to import 100 000 tons of its butter a few months ago. It wasn’t the first time and it won’t be the last, but so far it’s the biggest. Consumers, meanwhile, are reeling from the staggering increase in the price of butter this year, to well over R30 for 500g. By law, the country of origin has to appear on food products sold in SA, hence the declaration on Mooi River butter’s packaging. Meanwhile, the local milk supply has increased dramatically since the spring rains. “What was different about this year’s import was that the local demand for butter was bigger than in previous years and we’re not 100 percent sure why,” he said. The company’s Springbok brand of butter has remained South African, possibly because the sight of the words New Zealand on that brand may have proved too much for local rugby fans.
11
Questions 8.1
Why is clover importing butter from New Zealand?
(1)
8.2
‘so Clover was faced with two choices: cut back on its supply of butter into the marketplace, or import it.’
(3)
If Clover had chosen to rather cut back on its supply of butter into the marketplace, what would have happened to the price of butter? Motivate your answer.
8.3
Clover’s strong ties with a New Zealand based company, Fonterra is an example of Globalisation.
8.3.1
Give two advantages of globalization:
(2)
8.3.2
Name one problem associated with globalization.
(1)
8.4
In your opinion, does the importing of butter in the article benefit the consumer or not.
(2)
12
Question Nine
(7)
Use the list of words given below to complete the following statements. choose, distributed, prosperity, produced, standard, factories, planned, choices
Command economies are also known as .......9.1.......... economies. The government is responsible for making all the ...9.2....... . The government decides what shall be ......9.3........ , how much shall be produced and how the productive resources shall be ....9.4........ among the various consumers. The government takes control of most the .......9.5..... . People are not free to ....9.6...... what goods they want. The ....9.7...... of living is usually quiet low.
9.1
Planned
9.2
Choices
9.3
Produced
9.4
Distributed
9.5
Factories
9.6
Choose
9.7
Standard
13
Question Ten
(5)
Study the diagram below and answer the questions that follow:
Flow of Money in an Economy
B
C A
Firms
D E Government
10.1
Identify the participant in the economy labelled A.
10.2
Identify the participant in the economy labelled B.
10.3
Label the flows between ‘A’ and Firms, labelled C and D on the diagram.
10.4
Label the flows between the Government and the participant labelled ‘A’. Shown as ‘E’ on the diagram.
14
Section C Question Eleven
(14)
Write an essay on Credit Transactions, in your essay you need to discuss the advantages and risks of allowing customers to buy on credit, you also need to include five things that a retailer should ask a customer for before allowing them to buy on credit. Receiving payment from debtors can also be a problem, mention two things that a retailer can do in order to get debtors to pay quickly.
Use the headings provided. You may answer in point form.
Advantages and risks of allowing credit:
Five things a retailer should ask for before allowing a customer credit:
What can a retailer do in order to encourage prompt payment from debtors?
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