Gr 9-Economic and Management Sciences-Facilitator's Guide

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ECONOMIC AND MANAGEMENT SCIENCES FACILITATOR’S GUIDE Grade 9

A member of the FUTURELEARN group

Economic and Management Sciences Facilitator’s guide

1809-E-EMS-FG01

Í2)È-E-EMS-FG01ÂÎ

Grade 9

CAPS aligned

JVW Earle SM Earle

Facilitator’s Guide G09 ~ Economic and Management Sciences

CONTENTS Page

LESSON ELEMENTS TIMETABLE AND TIME MANAGEMENT ASSESSMENT REQUIREMENTS STUDY TIPS AND METHODS PREFACE HOW TO USE THE FACILITATOR’S GUIDE YEAR PLAN

3 5 7 8 9 10 11 13

UNIT 1

Revision of Grade 8 work FINANCIAL LITERACY: CASH RECEIPTS AND THE CASH PAYMENTS JOURNALS Cash transactions of a trading business 14 Lesson 1 − 2 14 Activity 1 15 Lesson 3 Effect of cash transactions on the accounting equation 15 Activity 2 16 Activity 3 THE ECONOMY: ECONOMIC SYSTEMS Lesson 6 Advantages, disadvantages and characteristics of each of the 17 economic systems and the global economy 17 Activity 4 19 Activity 5 19 Activity 6 FINANCIAL LITERACY: GENERAL LEDGER AND TRIAL BALANCE (SOLE TRADER) Posting of cash transactions 19 Lesson 7 − 10 20 Activity 7 Preparation of a Trial Balance of a trading business 23 Lesson 11 − 12 23 Activity 8 THE ECONOMY: THE ECONOMIC CYCLE The participants in the economic cycle of a closed economy 27 Lesson 13 − 14 27 Activity 9 Flow diagram of an economic cycle 27 Lesson 17 − 18 27 Activity 10 29 UNIT 2 Revision of work done in first term and an overview what will be done in the second term.

FINANCIAL LITERACY: CREDIT TRANSACTIONS – DEBTORS 30 Lesson 23 Posting of transactions to the Debtors Journal (DJ) 30 Activity 11 Posting of goods received from debtors in the Cash Receipt 31 Lesson 24 Journal 31 Activity 12 THE ECONOMY: PRICE THEORY The Law of Demand, supply curve and graphic representation 33 Lesson 25 of the demand curve 33 Activity 13 34 Activity 14 The Law of Supply, supply curve and graphic representation of 34 Lesson 26 the supply curve 34 Activity 15

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Facilitator’s Guide G09 ~ Economic and Management Sciences

Lesson 27

Lesson 32

Equilibrium price and quantity Activity 16 ENTREPRENEURSHIP: SECTORS IN THE ECONOMY Continuous use of resources in the three sectors Activity 17 Activity 18

UNIT 3

35 35 36 36 37 38

Revision of work done in term 2 and an overview of work to be done in term 3.

THE ECONOMY: TRADE UNIONS 42 Lesson 33 Concept of trade unions and their historical development 42 Activity 19 42 Lesson 36 Contribution of trade unions to sustainable growth and development 42 Activity 20 FINANCIAL LITERACY: CREDIT TRANSACTIONS – DEBTORS 43 Lesson 40 The effect of credit transactions on the accounting equation 43 Activity 21 48 Lesson 42 Accounting Cycle 48 Activity 22 Lesson 43 Noting of transactions in the Creditors Journal (CJ) and 49 Creditors Discount Journal (CDJ) 49 Activity 23 ENTREPRENEURSHIP: BUSINESS FUNCTIONS 50 Lesson 45 – 46 The role and importance of business functions 50 Activity 24 51 Activity 25 FINANCIAL LITERACY: CREDIT TRANSACTIONS – CREDITORS (PAYMENTS) 52 Lesson 48 Posting to the Creditors Ledger and the General Ledger and the effect of credit transactions on the accounting equation 52 Activity 26 57 UNIT 4 Revision of work done in Term 3 and an overview what is to be done in Term 4.

FINANCIAL LITERACY TRANSACTIONS: CASH AND CREDITS TRANSACTIONS 59 Lesson 52 – 54 Preparing a Trial Balance 60 Activity 27 ENTREPRENEURSHIP AND BUSINESS PLAN 68 Lesson 55 Concept of a business plan 69 Activity 28 69 Lesson 56 Components of a business plan 69 Activity 29 70 Lesson 57 Format of a business plan 70 Activity 30 71 Lesson 58 Production plan, marketing plan, management plan 71 Activity 31 72 Lesson 59 SWOT analysis and conclusion 72 Activity 32

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Facilitator’s Guide G09 ~ Economic and Management Sciences

YEAR PLAN TERM 1

TOPIC 1

Revision

2

Financial literacy: Cash Receipts Journal and Cash Payments Journal

3

The economy: Economic systems

4

Financial literacy: General Ledger and trial balance

5

The economy: The circular flow

2

6

Revision

7

Financial literacy: Credit transactions – debtors

8

The economy: Price theory

9

Entrepreneurship: Sectors of the economy

10 June examination 3

11 Revision 12 The economy: Trade unions 13 Financial literacy: Credit transactions – debtors 14 Financial literacy: Credit transactions – creditors 15 Entrepreneurship: Functions of a business 16 Financial literacy: Credit transactions – creditors

4

17 Revision 18 Financial literacy: Transactions – cash and credit

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STARTING

COMPLETION

DATE

DATE

Facilitator’s Guide G09 ~ Economic and Management Sciences

19 Entrepreneurship: Business plan 20 Examination preparation 21 November examination

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Facilitator’s Guide G09 ~ Economic and Management Sciences

Unit

1

UNIT 1 Revision At the beginning of each lesson, there is a revision section. The purpose of the revision section is to give the learner an overview of what was discussed in the previous unit. Specifically in this revision section, it gives the learner an overview of what was covered in Grade 8.

The learner can briefly read though the information in his study guide as reminder of what was discussed in the previous unit.

There are ten true or false questions to be completed by the learner. The facilitator and learner must not spend a lot of time on the revision sections. The facilitator can verbally ask the questions or the learner can write down his answers.

Revision activity: True or false 1 2 3 4 5 6 7 8 9 10

False True True True True True True True True False

No marks are recorded in this activity; it is only for revision purposes.

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Facilitator’s Guide G09 ~ Economic and Management Sciences

Unit

1

FINANCIAL LITERACY: CASH RECEIPTS JOURNAL AND CASH PAYMENT JOURNAL LEARNING AIMS After completing this lesson, you must be able to do the following: Cash Payments Journal Cash Receipts Journal The effect of cash transactions on the Accounting Equation.

Lesson 1 – 2 ACTIVITY 1 Cost price (R) 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

200 500 (c) R 300 (d) R 2 000 800 1 750 4 450 3 000 (i) R 1 600 2 800

Calculations: a) SP = CP x (100 + %profit)

Profit mark-up % 25 % 30 % 40 % 20 % (e) 50 % (f) 50 % 60 % (h) 35 % 25 % (j) 22,5 %

f)

PROFIT = R2 625 – R1 750 = R875

= 210 x (100 + 25) 100 = R250

b)

SP = 500 x 130 100 = R650

Selling price (R) (a) R 250 (b) R 650 420 2 400 1 200 2 625 (g) R 7 120 4 050 2 000 3 430

PROFIT MARGIN = 875 x 100 1 750 = 50% g) SP = 4 450 x 160 100 = R7 120 h) PROFIT = R4 050 – R3 000 = R1 050 PROFIT MARGIN = 1 050 x 100 3 000 = 35%

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Facilitator’s Guide G09 ~ Economic and Management Sciences

c) CP = SP x 100 (100 + %profit)

Unit

1

i) CP = 2 000 x 100 (100 + 25)

= 420 x 100 (100 + 40)

= R1 600

= R300 d) CP = 2 400 x 100 120 = R2000 e)

j)

PROFIT = R3 430 – R2 800 = R630 PROFIT MARGIN = 630 x 100 2 800

PROFIT = R1 200 – R800 = R400 = 22,5% PROFIT MARGIN = Profit x 100 CP = 400 x 100 800 = 50%

Lesson 3 ACTIVITY 2 Effect on assets and owner’s equity:

Date

Effect

1.

+ 90 000

2.

3.

– 35 000 + 35 000 – 28 000 + 28 000 – 17 500

4.

+ 17 500

5.

– 1 000

6.

– 500 + 5 600

7.

– 3 500 90 600

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Assets = Owner’s equity + Liabilities Reason Effect Reason Effect Owner’s capital Cash increase + 90 000 contribution increase Cash decrease Vehicles increase Cash decrease Equipment increase Cash decrease Trading stock increase Trading licence is Cash decrease – 1 000 an expense Wages is an Cash decreased – 500 expense Cash increase Trading stock decrease

+ 2 100 90 600

15

Profit on sales

Reason

Facilitator’s Guide G09 ~ Economic and Management Sciences

Unit

ACTIVITY 3 CASH RECEIPT JOURNAL OF CHIVA TRADERS FOR JULY 20.3 Doc. Nr. 101 CRR CRR 102 CRR 103 CRR

Day

Details

1 5 9 16 18

S. Chiva Sales Sales S. Chiva Sales J. Pillay Sales

30

Analysis of receipts 8 600 11 200 12 000 12 600 4 500 25 800

Bank 120 000 8 600 11 200 12 000

00 00 00 00 00 00

17 100 25 800 194 700

Cost of sales

Sales 00 00 00 00 00 00 00

8 600 11 200

00 00

6 880 8 960

00 00

12 600

00

10 080

00

25 800 58 200

00 00

20 640 46 560

00 00

CRJ 01

Amount 120 000

00

Sundry accounts Fol. Details Capital

12 000

00

Capital

4 500

00

Rent Income

136 500

00

CASH PAYMENTS JOURNAL OF CHIVA TRADERS FOR JULY 20.3 Doc. Nr. 01 02 03 04 05 06 07 08 09 10 11 B/S 12 13

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Day

Name of payee

2 4 7

Makro Mac Motors City Council Cash Makro ANP Stationers Cash Flora Suppliers City Council Mac Motors Cash ABC Bank Cash ANP Stationers

11 12 14 15 17 20 21 23 28 31

Bank 16 500 65 000 900 2 100 22 500 650 2 100 750 1 900 3 100 2 100 185 2 100 725 120 610

00 00 00 00 00 00 00 00 00 00 00 00 00 00 00

Trading inventory 16 500 00

22 500

Wages

Stationery

2 100

00

2 100

00

Sundry accounts Fol. Details

Amount 65 000 900

00 00

Vehicles Trading Licence

750 1 900 3 100

00 00 00

Packaging material Water and electricity Drawings

185

00

Bank charges

71 835

00

00 650

39 000

CPJ 01

00

2 100

00

2 100

00

8 400

00

16

725 1 375

00

00 00

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Facilitator’s Guide G09 ~ Economic and Management Sciences

Unit

1

THE ECONOMY: ECONOMIC SYSTEMS LEARNING AIMS In this lesson, the learner will learn more about THE ECONOMY. We are going to explore and study the following: The three main economic systems • planned economy • market economy • mixed economy Origin of every economic system.

Advantages and disadvantages of each economic system.

Characteristics of each economic system.

The global economy.

Lesson 6 ACTIVITY 4 4.1.

a) Market economy b) Planned economy c) Mixed economy

4.2. a) Planned economy Characteristics: (Any 3) • The government makes all the decisions regarding production and the consumption of goods and services.

• Businesses are owned and controlled by the government – and therefore take all the profits.

• Few people are rich while the majority is poor.

• Resources are the property of the government.

Advantages • The government has full control over the economy which leads

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b) Market economy Characteristics: • Factors of production are owned by individuals.

• The government is not actively involved in the providing of goods and services (mostly entrepreneurs).

c) Mixed economy Characteristics: • The government plays an important role in solving the economic problems.

• Services (removal of waste, water and electricity) are provided by the government • Some businesses are owned by the government while other is owned by individuals.

Advantages • Entrepreneurship and innovation are encouraged and

Advantages • The government allow the individual to use and benefit from

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Facilitator’s Guide G09 ~ Economic and Management Sciences

to a stable economy • Equal distribution of goods and services as well as resources.

• The government owns and controls factors of production.

• Prices are determined by the government – minimal profits.

• Does not suffer under economic systems.

Disadvantages • Entrepreneurship is discouraged.

• The government controls variety of goods available.

• Uneven distribution of resources.

• The government may not have the time or expertise to manage all the government owned assets i.e. if banks were to be nationalised in South Africa the government will be able to run it at a profit.

• Workers are exploited.

• People do not have the freedom to enhance their economic position, there are little or no incentive to encourage hard work.

• The government, as manufacturer, cannot make an accurate guess on how consumers will behave.

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Unit

emphasised.

• Increasing of competition between businesses.

• Individuals can improve their standard of living by starting their own businesses.

• Productivity is high.

• Individuals have freedom of choice.

• Increasing of skills development.

• Innovation is encouraged to create new and products at competitive prices.

Disadvantages • Not everyone can afford a variety goods and services.

• Job losses for the unskilled i.e. mechanisation.

• Exploitation of workers.

• Large businesses have an unfair advantage above smaller businesses with less capital.

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1

country’s infrastructure.

• Encouragement for innovating entrepreneurship is rewarded.

Disadvantages • Income tax rates are relatively high.

• Economic growth can be limited as the government allocated a large portion of resources to the welfare of its inhabitants.

• Large government participation in the economy by means of regulations, which makes the government bureaucratic and accessible for corruption.

Facilitator’s Guide G09 ~ Economic and Management Sciences

Unit

1

ACTIVITY 5 5.1.1 5.1.2 5.1.3 5.1.4 5.1.5

Market economy Mixed economy Planned economy Planned economy Planned economy

ACTIVITY 6 6.1

Yes, any person must be able to start his/her own business and provide goods and services to satisfy the buyer’s needs and desires to increase their life standards. (Also look at the advantages of a mixed economy.)

6.2

No, because entrepreneurship is not encouraged. The government fully controls the economy, which leads to the disproportionate distribution of resources. (Look at the disadvantages of the planned economy).

FINANCIAL LITERACY GENERAL LEDGER AND TRIAL BALANCE (SOLE TRADER) Lesson 7 – 10 LEARNING AIMS After completing this lesson, the learner must be able to do the following: Posting cash transactions of a trading business from the Cash Receipts Journal (CRJ) and Cash Payments Journal (CPJ) to the General Ledger.

Preparing a Trial Balance of a trading business.

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Facilitator’s Guide G09 ~ Economic and Management Sciences

Unit

ACTIVITY 7 GENERAL LEDGER AND TRIAL BALANCE (SOLE TRADER) CASH RECEIPT JOURNAL OF BANIE TRADERS FOR MAY 20.3 Doc. Nr. 001 CRR CRR CRR

Day

Details

1 8 9 17

L. Banie Sales Sales Sales

Analysis of receipts 225 000 00 480 00 2 560 00 2 880 00

Bank

Sales

225 000 480 2 560 2 880 230 920 B5

00 00 00 00 00

Cost of sales

480 2 560 2 880 5 920 N1

00 00 00

300 1 600 1 800 3 700 N2/B4

00 00 00 00

Amount 225 000

225 000

CRJ 01 00

00

CASH PAYMENT JOURNAL OF BANIE TRADERS FOR MAY 20.3 Doc. Nr. 001 002 003 004 005 006 007 008 009 010 011 012 013 014

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Day 2

5 12 16 19 23 26 29 30

Name of payee JJ Builders Municipality Super Rent Makro ANP Cash Cash Makro Cash Caxton Municipality Cash N. Jordaan L. Banie

Bank 100 000 280 1 700 20 000 1 240 420 420 1 500 420 320 195 420 3 500 5 000 135 415 B5

Stationery 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00

1 240

20 000

00

1 500

00

CRJ 01

Amount 100 000 280 1 700

00 00 00

Sundry accounts Fol. Details B3 Buildings N5 Trading licence N6 Rent expense

320 195

00 00

N7 N8

Advertisements Water & Electricity

3 500 5 000 110 995

00 00 00

N9 B2

Salaries Withdrawals

00 420 420

00 00

420

00

420

1 240 N3

Trading stock

Wages

Sundry accounts Fol. Details Capital

00

1680 N4

00

00

20

21 500 B4

00

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Facilitator’s Guide G09 ~ Economic and Management Sciences

Unit

1

GENERAL LEDGER OF BANIE TRADERS BALANCE SHEET ACCOUNTS SECTION CAPITAL Month

Day

Details

Fol

Amount

B1

Month

Day

Details

Fol

20.1 May

1

Bank

CRJ 1

DRAWINGS 20.1 May

30

Bank

CPJ 1

2

Bank

CPJ 1

5 000

B3

100 000

TRADING STOCK 20.1 May

31

Bank

31

Sundry accounts

CPJ 1

20.1 21 500 May

B4 31

Cost of sales

31

Sundry accounts

BANK 20.1 May

CRJ 1

225 000

B2

BUILDINGS 20.1 May

Amount

20.1 230 290 May

CRJ 1

3 700

B5 CPJ 1

135 415

NOMINAL ACCOUNTS SECTION SALES Month

Day

Detail

Fol

Amount

N1

Month

Day

Detail

Fol

20.1 May

31

Bank

CRJ 1

COST OF SALES 20.1 May

31

Trading stock

CRJ 1

3 700

STATIONERY 20.1 May

31

Bank

CPJ 1

31

Bank

CPJ 1

2

Bank

CPJ 1

2

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Bank

CPJ 1

N5

280

RENT EXPENSE 20.1 May

N4

1 680

TRADING LICENCE 20.1 May

N3

1 240

WAGES 20.1 May

N2

1 700

21

N6

Amount

5 920

Facilitator’s Guide G09 ~ Economic and Management Sciences

Unit

ADVERTISING 20.1 Mei

23

Bank

CPJ 1

26

Bank

CPJ 1

29

Bank

CPJ 1

N8

195

SALARIES 20.1 May

N7

320

WATER EN ELECTRICITY 20.1 May

1

N9

3 500

NOTE: Checking of addition is essential.

Cash receipts journal: Sales (R5 920) + Sundry accounts (R225 000) = Bank (R230 920) The total of the cost of sales column does not form part of the check, because the total of cost of sales does not represent an amount received.

Cash payments journal: Stationery (R1 240) + Wages (R1 680) + Trading stock (R21 500) + Sundry accounts (R110 995) = Bank (135 415) The double entry principle is applied as follows: CASH RECEIPTS JOURNAL Accounts debited Accounts credited Bank R230 920 Capital Cost of sales R3 700 Trading stock Sales Total of debits R234 620 Total of credits CASH PAYMENTS JOURNAL Accounts debited Accounts credited Buildings R100 000 Bank Trading stock R21 500 Stationery R1 240 Wages R1 680 Trading licence R280 Rent expense R1 700 Advertisements R320 Water & Electricity R195 Salaries R3 500 Withdrawals R5 000 Total of debits R135 415 Total of credits

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R225 000 R3 700 R5 920 R234 620

R135 415

R135 415

Facilitator’s Guide G09 ~ Economic and Management Sciences

Unit

Lesson 11 – 12 ACTIVITY 8 CASH RECEIPTS JOURNAL OF RAIDER TRADERS FOR APRIL 20.2 Doc Nno 23 Crr Crr Crr Crr

Day 1 2 10 24 28

Details S. Raider Sales Sales Sales Sales

Analysis of receipts (70 000 – 63 309) 6 691 6 416 4 904 6 328 8 008

Bank 00 00 00 00 00

6 691 6 416 4 904 6 328 8 008 32 347 B6

Sales 00 00 00 00 00 00

6 416 4 904 6 328 8 008 25 656 N1

CRJ 02 Sundry accounts Amount Fol. Detail

Cost of sales 00 00 00 00 00

4 010 3 065 3 955 5 005 16 035 N2/B5

00 00 00 00 00

CASH PAYMENT JOURNAL OF RAIDER TRADERS FOR APRIL 20.2 Doc No 163 164 165 166 167 168 169 170 171 172 173 174

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Day 7 8 14 15 17 21 26 27 28 30

Name of Payee JJ Suppliers Cash Makro Cash Fine Stationery Telkom Cash ABC Traders S. Raider Cash Y. Young Kees Properties

Bank

Stationery

13 580 530 6 100 495 318 243 525 2 655 500 538 3 900 1 420

00 00 00 00 00 00 00 00 00 00 00 00

30 804 B6

00

Wages 530

00

495

00

525

00

Trading stock

6 100 318

6 691

00

6 691

00

B1

Capital

CPJ 02

Amount

Sundry Accounts Fol. Details

13 580

00

B3

Equipment

243

00

N8

Telephone

500

00

B2

Drawings

3 900 1 420

00 00

N5 N3

Salaries Rent expense

19 643

00

00

00

2 655 538

318 00 N4

00

00

2 088 00 N6

23

8 755 00 B5

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Facilitator’s Guide G09 ~ Economic and Management Sciences

Unit

1

GENERAL LEDGER OF RAIDER TRADERS BALANCE SHEET SECTION CAPITAL Month

Day

Detail

Fol

Amount

B1

Month

Day

Detail

Fol

20.2 Apr

1

Balance Bank

b/d CRJ 2

Amount

63 309 6 691 70 000

DRAWINGS 20.2 Apr

27

Bank

CPJ 2

B2

500

EQUIPMENT 20.2 Apr

1 7

Balance Bank

b/d CPJ 2

B3

12 050 13 580 25 630

VEHICLES 20.2 Apr

1

Balance

b/d

26 700

TRADING STOCK 20.2 Apr

May

1

Balance

b/d

30

Bank

CPJ 2

1

Balance

b/d

B4

20.2 15 850 Apr

B5 30

8 755

Cost of sales Balance

24 605 8 570

May

1

Balance

30

Sundry accounts

1

Balance

b/d

CRJ 2 b/d

20.2 780 Apr

32 347

20.2 Apr

1

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Balance

b/d

150

24

8 570

B6 30

Sundry accounts

Balance

CPJ 2

30 804

c/d

2 323

33 127 2 323

CASH FLOAT

16 035

24 605

BANK 20.2 Apr

CRJ 2 c/d

33 127

B7