MOPANI WEST DISTRCT

ECONOMIC AND MANAGEMENT SCIENCES

GRADE 9
DISTRICT EXAMINATION
PAPER 1: FINANCIAL LITERACY
November 2022
Marks: 70 Time: 90 minutes

INSTRUCTIONS AND INFORMATION:

1. This question paper consists of TWO compulsory sections:

Section A: Short Questions (10)

Section B: Financial Literacy (60)

2. Answer ALL questions in the answer book provided to you.

3. Write neatly, legibly and in blue ink.

4. Use the following as a guideline to manage your time:

Question Time
Topic Marks
no.

1 Short Questions 10 13 min

2 Accounting Equation 10 10 min

3 General Ledger 15 23 min

4 Trial Balance 14 14 min

Journals 21 30 min
5

70 90 min

1
SECTION A: SHORT QUESTIONS [10 MARKS]

QUESTION 1:

1.1. Match the correct description in Column B to the term(s) in Column A.

Write only the correct letter next to the question number in your answer
book. E.g. 1.1.1. C. 5x1=(5)

No. COLUMN A COLUMN B

A. Tests the accuracy of the application of the
1.2.1 DJ
double entry principle.
B. Subsidiary journal in which all credit purchase
1.2.2 Creditor
transactions are recorded.
C. Individuals/organisations to whom the
1.2.3 Trial Balance
business owes money.
D. A source document that serves as proof that
1.2.4 CJ
money is received.
E. Subsidiary journal in which all credit sales
1.2.5 Receipt
transactions are recorded.
[5]

1.2. Fill in the missing word(s) by making use of the words in the word bank.
5x1=(5)

sales; cost of sales; invoice; creditors control;

DJ; receipt; CJ; debtors control

When goods are sold on credit, an 1.2.1. is used as the source document to
record the transaction in the 1.2.2..
1.2.3. will be debited because assets increase and 1.2.4. will be credited with
the selling price. Trading stock will be credited because assets decrease and
1.2.5. will be debited with the cost price.

[5]

TOTAL OF SECTION A: [10]

2
SECTION B: FINANCIAL LITERACY [60 MARKS]

QUESTION 2: ACCOUNTING EQUATION

2.1. Analyse the following transactions by completing the table in your answer
book. (10)

No. Transaction Account Account Effect on:

1 2 Assets Owners’ Liabilities
Equity
E.g. R1 500 wages
paid through Bank Wages -R1500 -R1500 0
EFT.
2.1.1. Sell goods of
R6 200 on credit.
Cost price: R3
850.
QUESTION 3: GENERAL LEDGER

3.1. Study the information below, taken from the books of BOB Furniture of
October 2022, and answer the following questions. BOB Furniture uses a
50% profit mark-up on cost.

INFORMATION:

Balances/Totals in the General Ledger as at 1 October 2022:

Trading stock (B3) R80 950
Debtors Control (B4) R25 255
Bank (B5) R23 825
Cost of sales (N2) R54 200

Column totals of the subsidiary journals as at 31 October 2022:

CASH RECEIPTS JOURNAL

Bank Sales Cost of Debtors Sundry
sales Control Accounts

R65 265 R? R15 000 R23 580 R19 185

CASH PAYMENTS JOURNAL

Bank Trading Wages Stationery Creditors Sundry
stock Control Accounts

R49 950 R19 350 R7 000 R2 100 R18 000 R3 500

3
DEBTORS JOURNAL
Sales Cost of
sales

R31 500 R21 000

CREDITORS JOURNAL
Creditors Trading Equipment Stationery
Control stock

R22 450 R? R4 350 R1 865

3.1.1. Calculate the amount of Sales in the Cash Receipts Journal. (3)

3.1.2. Calculate the amount of Trading stock in the Creditors Journal. (3)

3.1.3. Complete the Debtors Control account in the General Ledger. (9)

QUESTION 4: TRIAL BALANCE

4.1. Study the information below and answer the following questions.

Information:

The bookkeeper of Top Stores has not compiled a trial balance as yet. He
tried to compile the trial balance, but it does not balance.

TRIAL BALANCE OF TOP STORES ON 31 AUGUST 2022

FOLIO DEBIT CREDIT
BALANCE SHEET ACCOUNTS SECTION:
Capital B1 28 000
Bank B2 15 680
Equipment B3 10 000
Sales N1 65 700
Vehicles B4 32 000
Advertising N6 1 500
NOMINAL ACCOUNTS SECTION:
Cost of sales N2 42 020
Telephone N4 1 500
Water and electricity N5 2 250
Rent income N3 15 000
Commission income N7 2 500
Salaries and Wages N8 6 250
135 450 86 950

4
4.1.1. Study the incorrect trial balance above and compile the correct trial balance of
Top Stores on 31 August 31 August 2022. (14)

QUESTION 5: JOURNALS
5. Sam Louw is the owner of a bookshop, Bennie Bookworm. Markup on cost price
is calculated at 50%.
5.1. Complete the following journals with the supplied information
5.1.1. Cash Receipts Journal (14)
5.1.2. Cash Payments Journal (16)
5.1.3. Debtors Journal (10)
5.2. All source documents must be numbered chronological.
5.3. All journals must be totaled at the end of the month.
DATE TRANSACTIONS for October 2022
01 The owner increases his capital contribution from R 100 000 to R 120
000. Issue Receipt 45.
02 Issue EFT 64 to the Municipality for the trading license R 350.00.
03 Issue EFT 65 to Zorro books for the purchase of 100 books for R45 each.
04 Sell books to Ester Niemand for R350. Invoice 22. (Calculate the cost of
sales.)
05 Mark Pretorius buys books on credit for R 450.
07 Paid wages by EFT, R 800.
11 Receive 30 books from J Viljoen and pay per EFT.
12 Receive cash for the sales of books, R 6500.
12 Mark Pretorius pays R300 on his account.
14 Paid wages by EFT, R 800.
16 The owner withdraws R2000 from the business.
20 Receive cash for the sales of books, R 6500.
20 Ester Niemand pays her account in full.
21 Pay wages per EFT, all workers receive an increase of 10%.
24 Ester Niemand buys books on credit, R 150.00.
28 Pay water and electricity to the Municipality, R 2 000.
28 Pay the weekly wages according to the increase.
Total Question 5 (20)

TOTAL OF SECTION B: [60]

GRAND TOTAL: [70]