STEPS ACADEMY

TERM 4 FORMAL ASSESSMENT 2020

SUBJECT: COMMERCE
PAPER: 1
STAGE: 9 %
DURATION: 1 HOUR 30 MINUTES
MARKS: 80
EXAMINER: ___________________________________________
MODERATOR: ___________________________________________
NAME: ___________________________________________

INSTRUCTIONS:
• Answer all questions in the spaces provided on the question paper.

Question Learner’s Mark

TOTAL

1
 QUESTION 1

1.1 CIRCLE the correct answer.

1.1.1 In this economic system, the government makes all the decisions about what goods and
services are produced, how they are produced and who they are produced for.
A. Planned economy
B. Capitalism
C. Market economy
D. Mixed economy

1.1.2 The business can improve if they reduce resources used as inputs, whilst maintaining the
output.
A. sales
B. recycling
C. extraction
D. productivity

1.1.3 Liabilities increases with an entry on the _ and decreases with an entry on the .
A. Credit side and debit side
B. Debit side and credit side
C. Credit side and credit side
D. Debit side and debit side

1.1.4 An increase in supply causes the supply curve to:

A. Shift to the left
B. Remain on its position
C. Be extended to the right
D. Shift to the right

1.1.5 If the Mark-Up is 25% and the Cost Price is R800, the Selling Price is .
A. R750
B. R1000
C. R500
D. R900

(5x1=5)

2
1.2 State whether the following statements are TRUE or FALSE.
1.2.1 A cheque counterfoil is used to record transactions representing cheque payments.

1.2.2 The Creditors Allowances Journal is used to record various items bought on credit.

1.2.3 Factors of production move from businesses to the factor market.

1.2.4 Electricity generation is a product that can be classified under secondary sector.

1.2.5 Trade unions promote and protect the social, economic and political interests and
rights of workers.

(5x1=5)

1.3 Fill in the correct missing word/s.

1.3.1 The is the source document used for goods returned by debtors (1)
1.3.2 The sector process raw material into finished or semi-finished goods (1)
1.3.3 A economic system where the economic activities are directed by both private
and the government. (1)
1.3.4 If a supervisor is allocating duties to workers after checking their qualifications and
experience, this is called (1)
1.3.5 Cash purchases will be recorded in journal. (1)

(5x1=5)

3
1.4 Match column A with column B. Write only the letter of the alphabet next to the
question number, for example 1.4.6 E

COLUMN A COLUMN B (description / statement)

NO.

1.4.1 Target A. When customers buy goods/services and pay at a later stage.
market
1.4.2 Collective B. A book of first entry in which goods sold on credit are recorded.
bargaining
1.4.3 Strikes C. When customers buy goods/services and pay on the trade
date.
1.4.4 Credit Sales D. Workers stop working to force management to increase wages
and improve working conditions
1.4.5 Debtors E. Potential consumers who will buy the product.
Journal
F. A process where workers and businesses negotiate working
Conditions

(5x1=5)

4
 QUESTION 2
2.1 Complete the following diagram by writing the most appropriate LETTER next to the correct
number in the block. Choose from the following letters:

A = Factors of production
B = public goods and services
C = payment for goods and services
D = taxes on income
E = payment/remuneration for factors of production
F = transfer payments like old age pensions,
G= taxes on profits.
(5)

2.2 Name and explain the three roles of the participants in the circular flow of a closed economy.

(9)
[14 Marks]

5
 QUESTION 3

3.1 Study the following demand and supply schedules of school jerseys and answer the
questions that follow.

PRICE DEMAND SUPPLY

R10 600 200
R20 400 400
R30 200 600
3.1.1 Use the table above to draw demand and supply curves in space given below. (8)

3.1.2 From the graph above identify the equilibrium point. (2)
3.1.3 ON THE SAME GRAPH, indicate how an improvement in technology affects the supply of
school jerseys.
(2)

[12 Marks]

6
 QUESTION 4

4.1 Define the term trade unions.

(2)

4.2 Write the acronym COSATU in full.

(2)

4.3 Write down SWOT in full?

(4)

4.4 List the three goals of a business that should be included in a business plan.

(3)

4.5 Name and briefly explain one item that should be in a financial plan of a business plan.

(3)

[14 marks]

7
 Question 5

Required:
5.1 Open the accounts for each debtor using the balances from the debtors list.
5.2 Post the information that appears in the Debtors Journal below to the Debtors Ledger and
General Ledger of Propackages Inc. for the month ending May 2015.

Propackages Inc.
Debtor’s List as at 30 April 20.5
H. Banfield D1 5 800 00
M. Bartlett D2 15 100 00
G. Balarin D3 6 250 00
B. McCreedy D4 1 980 00
H. Dakada D5 -
29 130 00

Debtors Journal of Propackages Inc- May 20.5

DJ1
Inv. Day Debtor Fol. Sales Cost of sales
215 3 M. Bartlett D2 1 250 00 600 00
216 9 G. Balarin D3 12 500 00 9 200 00
217 16 H. Banfield D1 2 850 00 1 680 00
218 27 M. Bartlett D2 2 850 00 1 200 00
219 30 H. Dakada D5 9 840 00 5 600 00
29 020 00 18 280 00

DEBTORS LEDGER OF PROPACKAGES INC.

Name of debtor:

Date Details Fol. Debit credit Balance

8
 Name of debtor:

Date Details Fol. Debit credit Balance

Name of debtor:

Date Details Fol. Debit credit Balance

Name of debtor:

Date Details Fol. Debit credit Balance

Name of debtor:

Date Details Fol. Debit credit Balance

9
 GENERAL LEDGER OF PROPACKAGES INC.
Balance Sheet Section.

Dr. Debtors Control B4 CR.

Date Details Fol. Amount Date Details Fol. Amount

Dr. Trading Stock B5 CR.

Date Details Fol. Amount Date Details Fol. Amount

Nominal Accounts Section

Dr. Sales N1 CR.
Date Details Fol. Amount Date Details Fol. Amount

Dr. Cost of Sales N2. CR.

Date Details Fol. Amount Date Details Fol. Amount

[20 marks]

10