ECONOMIC AND MANAGEMENT SCIENCES (CAPS)

GRADE 7 ACTIVITIES

TERM TWO TOPICS: THE FINANCIAL LITERACY

SUBTOPICS: ACCOUNTING CONCEPTS AND BUDGETS

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TERM 2 ACTIVITIES Page 1

ACCOUNTING CONCEPTS

Activity 1: Baseline/ Prior knowledge

Explain the following terms.

1. Financial literacy __________________________________________________

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2. Accounting _______________________________________________________

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3. Book keeping ____________________________________________________

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4. Accounting principles_______________________________________________

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5. Accounting Concepts_______________________________________________

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6. Business ________________________________________________________

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7. Name FOUR careers that learners can follow with EMS as a subject.
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ACCOUNTING CONCEPTS

Activity 2

Question 1: Explain the difference between the following concepts

1. Capital and Owner`s equity (Owner`s equity is Grade 8 terminology)

Capital ___________________________________________________________

Owners’ equity _____________________________________________________

2. Assets and Liabilities

Assets ____________________________________________________________

Liabilities _________________________________________________________

Question 2: Name; explain two/ three types of the following

1. Capital (Paste ONE example of each type)

1.1______________________________________________________________

________________________________________________________________

INSERT A PICTURE

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 2. Business (Paste ONE example of each type)

2.1______________________________________________________________

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INSERT A PICTURE

2.2 _____________________________________________________________

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INSERT A PICTURE

2.3 _____________________________________________________________

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INSERT A PICTURE

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 3. Assets (Paste TWO examples of each type) (Grade 8)

3.1______________________________________________________________

INSERT A PICTURE

3.2 _____________________________________________________________

INSERT A PICTURE

4. Liabilities (Paste ONE example of each type) (Grade 8)

4.1______________________________________________________________

INSERT A PICTURE

4. 2 _____________________________________________________________

INSERT A PICTURE

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STATEMENT OF NET WORTH

Activity 3

Picture one Picture two

Question 1

Study the Two Pictures above and divide them in two columns indicating two example of Assets and
two Liabilities of each.

Picture One Assets Picture Two Assets

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Question 2
Explain the following concepts.

1. Worth: _______________________________________________________

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2. Net worth: _____________________________________________________

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3. Statement of net worth: __________________________________________

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Question 3

1. Name and Explain the TWO types of statement of net worth.

2.1 _____________________________________________________________

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2.2______________________________________________________________

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2. Write down the FIVE steps of drawing up a statement of net worth.

Step 1: __________________________________________________________

Step 2: __________________________________________________________

Step 3: __________________________________________________________

Step 4: __________________________________________________________

Step 5: __________________________________________________________

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 Activity 4: Personal statement of net worth

Sithembile Madison owns the following possessions or assets:

House R 200 000, Motor car R 90 000, Furniture and equipment R 45 000, Books and CDs R 3800,
Clothes and shoes R 6500, Jewellery R 700, Sports equipment R 500.
He has borrowed R120 000 from the bank and he owes Edgars R 2 500.

Use the information above to draw up a statement of net worth showing the net worth of. Sithembile.
Use Three Format Statement, First Column is details of Assets (What he owns and Liabilities (What
he owes) Second Column is the Amounts in Rands and Third Column is for Totals.

Statement of __________________________________ for _________________________

Assets R R

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INCOME AND EXPENSES CONCEPTS

Activity 5

Question 1
Differentiate between the following concepts:
1. Financial transaction and financial records

Financial transaction ____________________________________________________

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Financial records________________________________________________________

_______________________________________________________ ______

2. Income and expenses

Income _______________________________________________________________

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Expenses _____________________________________________________________

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3. Surplus and Deficit

Surplus ______________________________________________________________

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Deficit ________________________________________________________________

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 4. Profit and Loss

Profit __________________________________________________________________

________________________________________________________________________

Loss __________________________________________________________________

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5. Bank and banking

Bank _________________________________________________________________

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Banking _______________________________________________________________

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6. Saving and investment

Saving _____________________________________________________________

_____________________________________________________________________

Investment __________________________________________________________

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Question 2

2.1 Name and explain TWO types of incomes and Paste ONE example of each

2.1.1 ______________________________________________________________________

INSERT A PICTURE

2.1.2 _________________________________________________________________ _____

INSERT A PICTURE

3. Name and explain TWO types of Expenses and Paste ONE example of each

3.1.1 _______________________________________________________________________

INSERT A PICTURE

3.1.2 _______________________________________________________________ ________

INSERT A PICTURE

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BUDGETS

Activity 6

Question 1

Explain the difference between a statement of net worth and a budget

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Question 2

1. Name TWO purposes of drawing up a budget

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2. Name TWO types of budget

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3. Name TWO sections of a budget

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4. Name FIVE steps of drawing a budget

Step 1: ____________________________________________________________________

Step 2: ____________________________________________________________________

Step 3: ____________________________________________________________________

Step 4: ____________________________________________________________________

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Step 5: ____________________________________________________________________

Activity 7: Personal Budget

Question 1
Samukelo Madiba owns the following possessions or assets:

House R 200 000, Motor car R 90 000, Furniture and equipment R 45 000, Books and CDs R 3800,
Clothes and shoes R 6500, Jewellery R 700, Sports equipment R 500.
Sam has borrowed R120 000 from the bank and he owes a clothing shop R 2 500.
Use the information above to draw up a statement of net worth showing the net worth of Samukelo
Madiba.
Use Two or Three Format Statement, First Column is details of Assets and Liabilities, Second
Column is their Amounts and Third Column is Totals.
(The teacher can use any format that learners understand)

STATEMENT OF NETWORTH OF ………………………………………………….

Assets R R

Total Assets

Liabilities

Total Liabilities

Net worth

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Question 2
Tshepo Majola, father of the Majola family works at Rosslyn as a technician and he earns R 15 000
per month. His wife works as a cleaner at Checkers and earn R 1 800 and they have two children
who are both at a local primary school. They have the following expenses:
Bond repayments R 5 000, Rates and taxes R 3 00, Insurance R 500, Cell phones R 700, Water
and electricity R 900, Car payments R 3 500, Petrol and transport costs R 2 800, Clothes R 900,
Food R 2000, Entertainment R 1 000, School fees R 2000, Pocket money R 300.

1. Draw up Majola`s family budget for May 2023

2. Is the budget having deficit or surplus?
3. Advice the family what they should do to save money.

Budget of for May

Income

Expenditure

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 Surplus / Deficit

Activity 8: Business Budget

Your brother, Gabriel has asked you help him with the books of his business Perfectos Salon.
He gave you the following list, which is what he planned for his costs in April.

1. Draw up the Business budget of Perfectos Salon for one month April
2. Show the expected income and expenses for the month

ITEMS R
Hair products 43 500

Wages for assistant 6 000

Rental for business building 3 000

Water and Electricity 2 300

Telephone and Cellphone 850

Advertising costs 500

Money for services rendered 95 000

3. Is the budget showing a surplus or a deficit? Explain your answer

__________________________________________________________________________

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4. Advise the owner of Perfectos Salon on how he could increase his profits.
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 __________________________________________________________________________

Budget of ________________________________ for __________________________

Income R R

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ENRICHMENT ACTIVITIES

Activity 1

Match the term in COLUMN A with the correct description in COLUMN B:

COLUMN A COLUMN B
TERMS DESCRIPTIONS
1. Banking a. Permanent possessions
2. Expense b. Money owed to others
3. Capital c. Income exceeds expenses
4. Income d. Money put aside for future use
5. Assets e. Money spent to run a business
6. Financial records f. Services offered by financial institutions
7. Loss g. Money earned
8. Budget h. Owner’s equity
9. Profit i. A written plan on how future income is to be spent
10. Savings j. Expenses exceed income
11. Transaction k. The systematic recording of transactions
12. Liability l. Exchange between two parties that involves money
and something of value.
m. Wealth is all properties that the person owns.

1 2 3 4 5 6 7 8 9 10 11 12

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 Activity 2

2.1. Make a list of your personal properties and then make a list of all your personal
Liabilities. Keep these two lists to draw up your own personal statement of net worth

Drawing up a Personal Statement of Net Wworth

Budget of ____________________________________ for _____________________

(Name and Surname of the learner) (Current month and year)
My possessions Value in Rands What I owe to other Value in Rands
(Assets) people (Liabilities)

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2.2. Draw up a personal budget for Sifiso with the following information, for May 2023.

Sifiso receives R500 pocket money from his parents every month. He does not have
to pay for accommodation and food, but he must pay for his own toiletries, clothes,
and entertainment.
He spends the following money on a regular basis:
 R80 for toiletries
 R100 for entertainment
 R50 for tuck shop
 Clothes from the surplus and when needed

Use the following template to draw up your budget

Budget of _______________________ for _______________

R

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 Activity 3

Billy and Susan Mahlangu live in Polokwane with their two children, Johnny and Maria. Billy is a
Human Resource manager and earns R15 600 a month. Suzan is a Grade 2 teacher and earns
R9 800 per month. Johnny is a student which helps other students with their studies and
homework and earns R2 000 per month. Of this R2 000 he contributes R700 towards the
household. Maria is a Grade 11 learner and receives R400 pocket money per month.

The family’s average expenditure is as follows:

 Bond repayments R5 200
 Food R3 500
 Water & Electricity R 700
 Rates & Taxes R 850
 Telephone R550
 Car repayments R2 500
 Petrol and transport costs R 2 100
 Clothes R 1 500
 School fees R 600
 Unisa Fees R 1300
 Insurance R 650
 Entertainment R1 000
 Maria’s pocket money R350

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Draw up the Mahlangu family budget for the May 2023

Budget of __________________________________ for _____________________

Income Amounts in Rands Totals

3. Is this family budget having deficit or surplus? Explain your answer

__________________________________________________________________________

__________________________________________________________________________

4. Advise the family what they should do to save money.

__________________________________________________________________________

__________________________________________________________________________

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 Activity 4

Draw up a budget for May 2023 for the following business.

1. Showing how they will spend their income.

2. Is this budget showing a surplus or deficit?

Tshepo Chaka runs a small advertising printing business called Printing for You. He
has 25 clients for which he prints advertisements every month and they pay him
R1 500 each per month. He also prints their invoice and receipt books for the year in
May for which each one pays him R 800,00. He employs a full-time receptionist and
printing assistant. His monthly expenses are as follows:

 Rent R4 100 per month

 Salaries R16 500
 Water & Electricity R 800
 Stationary R500
 Telephone R 900
 Loan repayments R 750

Tsepo wants to buy a secondhand printer in May for R18 000.

He had R2 500 in the bank at the end of April 2023

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 Budget of ________________________________ for __________________________

Income R R

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