Term 3 EMS Teacher Manual

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ECONOMIC AND MANAGEMENT SCIENCES

GRADE 9 TERM 3
TEACHER MANUAL
TEACHER BOOKLET
MEMORANDUM
COMPILED BY: VA MAFEREKA

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TERM 3
WEEK 1-2
ENTREPRENEURSHIP: FUNCTIONS OF A BUSINESS
The functions of a business are the main activities needed in the business that make it
operate efficiently.
Businesses employ people with specialised knowledge and training to do specific jobs.
Not all large businesses have all the functions.
Some businesses outsource (pay someone outside the business to do the job) certain
functions to other outside specialised businesses.
There are nine business functions namely:
● Administration
● Finances
● General management
● Human resourcesYKK
● Marketing
● Production
● Public relations
● Purchasing.
● Risk management
1. ADMINISTRATION FUNCTION
Definition: Administration in a business involves recording and organising information so
that the business can run successfully.
Roles and importance:
● Administration looks after the paper work such as letters, order forms, cash sales,
payment vouchers, payslips, bank statements and reports.
● People who work in administration are involved in filing all business information in
a way that makes it easy to find when someone needs it.
2. FINANCES FUNCTION
Definition: It is to control and record all the financial activities and records of the
business.
The finance function is responsible for the flow of capital into and out of the business.
The finance function is responsible for:
● Keeping up with legislation affecting the business.
● Analysing, reporting, planning and controlling the finances.
● Managing the cash flow, financial investments and properties.

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3. GENERAL MANAGEMENT FUNCTION

Definition: General management is a top level management function concerned
with the overall management of the business.
Roles and importance
● General management is different from other functions because it is ‘in
charge’ of other functions and controls the business management process.
● There are three levels of management in most organisations.
● Top management consist of executives who make strategic decisions. They
set the vision, mission goals and objectives.
● Middle management is normally the departmental managers, the financial
manager, marketing manager and production manager. Middle
management makes tactical decisions.
● Lower management generally has specific management duties that need to
be carried out. They are the supervisors and make operational decisions.
4. HUMAN RESOURCES FUNCTION

Definition: The HR function is responsible for the labour matters in the business.
Role and importance
● Human resources function does the following:
● Assess labour needs
● Create job descriptions for the various posts in the business.
● Recruits staff internally and externally to fill vacant posts.
● Arrange for induction and training.
● Arrange weekly or monthly wage and salary payments.
● Oversee grievance procedures and dismissals to make sure they are legal.
5. MARKETING FUNCTION
Definition: The marketing function develops strategies to persuade consumers
that their products and services are the best.
● Marketing covers:
● Market research – to establish market needs and preferences and what
competition there is in the market.
● Product research – to establish which product or service will satisfy consumer
needs.
● Distribution – decide on the correct place and time to market the product or
service.
● Determine a price that the market will be willing to pay.
● Communicate to the market use advertising and sales promotions.
● Establish a brand for the business and its products.

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6. PRODUCTION FUNCTION
Definition: The production function uses resources to manufacture goods or offer
services to its consumer market.
● The production function makes sure the products or services are of good quality
and can compete with other businesses.
● The production function is responsible for:
● Producing high quality goods and keeping costs low.
● Handling volumes to meet consumer demands
● Improving the operations of the business
● Meeting consumer expectations
7. PUBLIC RELATIONS FUNCTION

Definition: The public relations function looks after the public image of the business.
● It creates a link between the business and its environment by promoting a good
image of the business and explaining the vision and mission, programmes and
operations to the public.
● A good public image improves the ability of the business to make a profit and grow
successfully.
● The PR function does the following:
● Evaluates public opinion by means of market research.
● Plans activities that make the public think well of the business e.g. projects
in disadvantaged communities.
● Builds the image and brand of the business.
8. PURCHASING FUNCTION
Definition: The purchasing function does all the buying of the business, from the
stationery and equipment required, to raw materials for any production process, to
vehicles for the business fleet.
● The purchasing function is responsible for:
● Identify suitable suppliers, research prices and availability
● Choose a supplier and issue an order
● Follow up on the order and make delivery arrangements
● Check delivery and inspect it against a delivery note or invoice
● Distribute goods to the function requiring the goods

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9. RISK MANAGEMENT FUNCTION

Definition: This function deals with risks which can affect any business function.
● The risk management function is responsible for identifying and assessing the
possibilities of risk to the business such as natural disasters, financial investments,
credit risk, and accidents in the workplace, legal liabilities and project failure.
● The job of a risk manager is to develop a plan to reduce the impact of the risk.
● They can do this by avoiding the risk, taking out insurance against the risk, taking
precautions to reduce the negative of the risk, accepting some or all the possible
or real consequences of a risk.

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TOPIC: BUSINESS FUNCTIONS MEMORANDUM

TOTAL: 14 MARKS ACTIVITY 3.1.
COLUMN A COLUMN ANSWER
B
1. Public relations A. Analysing, reporting, planning and controlling the D
finances as well as managing the cash flow,
financial investments and properties
2. Administration B. This function does all the buying of the business, G
from the stationery and equipment required, to raw
materials for any production process, to vehicles
for the business fleet.
3. Marketing C. This function is concerned with the F
overall management of the business.
4. Purchasing D. This function looks after the public image of the B
business.
5. Human E. This function uses resources to H
Resources manufacture goods or offer services to its
consumer market.
6. Finance F. This function develops strategies to persuade A
consumers that their products and services are the
best.
7. Production G. It looks after the paper work such as letters, order E
forms, cash sales, payment vouchers, payslips,
bank statements and reports.
8. General H. This function is responsible for the labour matters C
management in the business.
1. Name the THREE levels of management and the type of decision made by each
level. (6)
- Top management: consist of executives who make strategic decisions.
- Middle management: consist of departmental managers and makes tactical
decisions
- Lower management: these are supervisors and they make operational decisions.

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TOPIC: BUSINESS FUNCTIONS MEMORANDUM

TOTAL: 16 MARKS ACTIVITY 3.2.
1. Read the case study and then answer the questions that follow.
The ABC Clothing Company

The ABC clothing Company specialises in a popular range of children’s clothing that is shipped to
retail stores in all the major towns in South Africa. This progressive business carries out market
research regularly to keep up with changing fashions and consumer preferences. It also checks on
what the competition is doing and what the consumer market thinks of ABC Clothing Company.
Lizel, the owner, is proud of her growing business and supportive board of directors. The
management team is enthusiastic and competent – new suggestions for a staff canteen and gym
facilities by Richard Abrahams, the HR manager, have been well received. Upgraded computer
technology has improved information access. In addition,purchasing has identified a new supplier
of raw materials that will keep ABC’s products competitive. The cash flow is healthy and a firm of
consultants have suggested ways to reduce any business risks.
consultants have suggested ways to reduce any business risks.

1.1. Name the business functions mentioned in the case study. Motivate your
answer with an example from the case study. (16)
- Marketing function: “carries out market research “

- Public relations functions: “ checks what consumer market thinks of ABC clothing
company”
- Management function: “ management team enthusiastic and competent”
- Purchasing function: “ purchasing has identified a new supplier of raw materials”
- Finances function: “the cash flow is healthy”
- Risk management function: “ consultants have suggested ways to redeuce
business risks”
- Human resource function: “ new suggestions for a staff canteen and gym facilities
by Richard Abrahams, the HR manager”

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WEEK 3-4
ENTREPRENEURSHIP: BUSINESS PLAN
WHAT IS A BUSINESS PLAN?
A business plan is a document that sets out all the details and arrangements for a new
business venture. It is a structured guideline of what needs to be done to achieve
business goals. It is a road map for the entrepreneur.
A business plan is a description of the following:
● What you intend doing?
● How you intend doing it?
● When you intend doing it?
● Why you believe your idea is worthwhile and profitable?
THE IMPORTANCE OF PLANNING

To identify what action needs to be taken to reach a particular objective or goal.
To anticipate potential problems and identify ways around them to make it easier to take
quick action when opportunities present themselves.
WHY YOU NEED A BUSINESS PLAN?

There are TWO REASONS you need to have a business plan:
● Preparing a business plan can eliminate potential flaws in your idea.
Some business ideas can look great in the beginning but once they are examined
more closely the problems are clearly visible. Preparing a business plan helps you
to identify potential problems which will prevent you from succeeding. If these fatal
flaws exist in you idea, it is better to identify them before you invest money in and
start the business.
● A business plan is an essential aid when applying for financial assistance.
Most people who want to go into business for themselves need to borrow money.
No bank or investor will lend you money without first seeing a detailed business
plan that shows what the business is going to do, it projected expenses and
earnings and its plan for repaying the loan.

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Topic: The Business Plan MEMORANDUM

ACTIVITY 3.3. TOTAL: 12 MARKS
1. Discuss the main purpose of a business plan. (4)

- A business plan sets out all the details and arrangements for a new business
venture.
- It is a structured guideline of what need to be done to achieve business goals.
2. Briefly explain the importance of a business plan. (4)
- To identify what action needs to reach a particular objective or goal.
- To anticipate potential problems and identify ways around them to make it easier
to take quick action when opportunities arise.
3. Identify two reasons why a business plan is needed when starting a business.
- Preparing a business plan can eliminate potential flaws in your idea.
- A business plan is an essential aid when applying for financial assistance.
(4)

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CONCEPTS, COMPONENTS AND FORMAT OF A BUSINESS PLAN

1. COVER PAGE
Design a smart-looking professional cover page with the second page giving the contents
of your business plan. It is important for your cover page and your whole business plan to
show how serious you are about starting your own business. Your cover page must give:
● The name of the business
● The entrepreneur’s name
● The entrepreneur’s address and telephone numbers
● The logo or emblem of your business
2. CONTENT PAGE / TABLE OF CONTENT

● This page should include the following:
● Description of the product or service
● Business goal
● Production plan
● Marketing plan
● Management plan
● Financial plan
● SWOT analysis
● Conclusion
3. DESCRIPTION OF THE PRODUCT or SERVICE

Include an interesting introduction that describes your business. It should have the
following information:
● a description of the service or product that you plan to sell or make
● why you believe your venture is viable
● what makes your venture unique or different from existing businesses.
4. BUSINESS GOALS
Include a list of the business goals, identifying exactly what you would like to achieve in
the short, medium and long term.
Give details of what you hope to achieve in the next 12 months, the next 3 years and the
next 5 years.

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These objectives should be realistic, specific and measurable. Include a vision and
mission statement for your business.
A vision is a clear and inspirational statement of what you are trying to create or achieve.
A mission statement outlines the core purpose of a business and explains why the
business exists.
5. PRODUCTION PLAN
A business plan should include a detailed description of your product(s) or service(s) and
how you plan to produce or provide them.
If you intend manufacturing a product you must explain the manufacturing process in
detail and describe the machines that you intend using.
If you are starting a service business describe in detail what you will have to do in order
to offer the service and what equipment and resources you will need.
Include a description of your business location, floor layout and how near or far you are
from other businesses. Explain if you will be buying or renting the equipment and
property you need to run your business.
6. THE MARKETING PLAN

It is important that an entrepreneur does market research to see if there are people who
are interested in buying the product.
Market research can answer the following questions for the entrepreneur:
● Who is willing to buy my product?
● What price will they be willing to pay?
● Where is the best place to sell my product?
● What quantity will we be able to sell?
Based on your market research you have to decide on the marketing mix for your
business.
● Give details about the need for your product and why consumers are willing to
purchase it.
● Give a description of which people you intend selling your product or service to
(details of your target market).
● Give details about the prices you intend to charge indicating how you have arrived
at the decision to charge these prices.
● Give details about your promotion strategies and the advertising you plan to use to
convince customers to buy the product or service.
● Give a description of the place where you intend to sell your goods.
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Topic: The Business Plan MEMORANDUM
1. Objectives and goals of a business should be realistic, specific and measurable.

These include the vision and mission of the business. Explain what is meant by vision
and mission.
- Vision: a clear and inspirational statement of what you are trying to create or achieve.
- Mission statement: outlines the core purpose of a business and explains why the
business exists. (4)
2. The marketing mix consists of 5P’s. Name and discuss the 5JP’s of the marketing
mix.
- Product: this includes details about the need of your product and why consumers are
willing tyo purchse it.
- People: A description of which people you intend selling your product or service
- Prices: Details about the prices you intend to charge indicating how you have arrived
at the decision to charge these prices.
- Promotion: includes details about your promotion strategies and the advertising you
plan to use to convince customers to buy the product or service.
- Place: A description of the place where you intend to sell your goods. (4)

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7. THE MANAGEMENT PLAN

Give an outline of the business structure and staffing needs. The following should be
included in this section:
● a description of how many people you intend employing and where and how you
intend recruiting them
● a description of your management and staff – their qualifications, experience, job
description and remuneration
● a description of your administration and record-keeping system
● a description of your staff policy regarding working hours, fringe benefits, overtime,
sick leave and medical aid.
● It will be helpful to include an organisational structure. An organisational structure is
a diagram that shows the structure of an organisation and the relationships and
relative ranks of the employees.
8. THE FINANCIAL PLAN

WHAT IS A FINANCIAL PLAN?
A financial plan is a detailed document that sets out what it will cost to set up a new
business venture and what income will be earned.
● Start-up costs
It is important to provide accurate information about what it will cost to start the business.
You need to provide details of how much money you need to start and run the business
and a description of how the money will be used.
You should also indicate where you plan to get this money from as well as details about
how much of your own money you are investing in the business.
● Fixed and variable costs
Fixed costs are those costs that are the same regardless of how many items you sell.
Examples are rent, salaries, depreciation and insurance.
Variable costs are those costs that increase with each unit produced. Example: if you
bake pies the electricity costs will increase as the number of pies increase.
● Break-even point
The break-even point is an indication of how many units you have to sell in order to
cover your expenses. In order to reach the break-even point, you need to sell enough
units of the product to cover the variable costs and all the fixed costs.

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● Financial statements
A detailed Income Statement for a projected period of 12 months. This means a monthly
account of your sales revenue and expenses as well as the profit or loss that you expect.
Scenarios showing what would happen if sales were excellent, good, average or poor.
A detailed cash flow for a projected period of 12 months. This means a monthly
indication or budget of the projected flow of cash into and out of your business.
A detailed Balance Sheet for a projected period of 12 months. This means a list of all
your business assets and liabilities at a specific point in time.
9. SWOT analysis
An entrepreneur can use a SWOT analysis to identify and understand the strengths and
weaknesses of his business as well as the opportunities and threats facing the
business.
The SWOT analysis is about the (S) strengths, (W) weaknesses, (O) opportunities and
(T) threats the business will face.
Strengths are those aspects of the internal environment that make the business strong
and able to succeed.
Weaknesses are those aspects of the internal environment that slow down the progress
of the business and keep it from becoming successful.
Opportunities are found in the external environment.
Entrepreneurs should take advantage of circumstances in order to become successful.
Threats are found in the external environment.
Threats are dangers that may affect the business concept or the entrepreneurs
negatively.
Threats are difficult to control, but should be identified so that the entrepreneur can
minimize or avoid their affects.
10. CONCLUSION in a business plan

Finish your business plan off with a positive and motivational conclusion. Your conclusion
should be a summary of the following:
● why you believe your business plan will succeed
● why you believe finance should be granted.

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Topic: The Business Plan

1. Read the scenario below and then answer the question that follows.
KIDZ Clothing Company
We are in a profitable market in a rapidly growing economy. We have the ability to respond
quickly to what the market requires and to provide quality children’s clothing in a growing market.
Our key personnel have a thorough knowledge of the local retail market and expertise that will
assist us in penetrating the target market. We recognise our challenges in being a new medium
sized company targeting established children’s clothing market, dominated by experienced
competitors.
Complete a SWOT analysis for KIDZ Clothing Company. (8)

Strengths Weaknesses
- provides quality - They are a new
clothing. medium sized
- Personnel have business.
thorough knowledge
of the local retail
market.
Opportunities Threats
- They are a profitable - They are dominated
market in a rapidly by experienced
growing economy. competitors.

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WEEK 5-6
FINANCIAL LITERACY: DEBTORS
CONSOLIDATION OF ACTIVITIES
EXAMPLE: DEBTORS JOURNAL AND CASH RECEIPTS JOURNAL

The objective of this exercise is to help you to differentiate between cash and credit
sales. You will need to look for the following clues that will indicate whether a sales
transaction is cash or credit:
1. The wording of the transaction (Cash or Credit).
2. The source document: Invoice = credit = DJ and Receipt = cash = CRJ
TIP: BEFORE YOU START RECORDING YOUR TRANSACTION IN YOUR
JOURNALS, GO THROUGH ALL TRANSACTION AND MAKE A NOTE ON WHICH
JOURNAL WILL EACH TRANSACTION NEED TO BE RECORDED.
REMEMBER CASH TRANSACTIONS WILL BE RECORDED IN THE CRJ AND
CREDIT TRANSACTIONS IN THE DJ.
Diteboho Stores sells goods for cash as well as on account. Use the information provided
below to prepare the Cash Receipts Journal and the Debtors’ Journal for Diteboho Stores
for April 2012. Diteboho Stores uses a 25 % mark-up on cost.
Transactions for April 2012:

1 Sold goods to B. Zulu for R1 250, issued invoice 62.
3 Cash sale to R. Vuka , cost of goods sold amounted to R100. Cash register roll 11
5 Issued invoice 63 to V. Matlock for R1 000.
7 Sold goods for cash, R825. Cash register roll 12
29 Issued receipt 045 to P. Gheely, our tenant, for R4 000 for rent received.

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SOLUTION:
Debtors’ Journal of Diteboho Stores for April 2012
Cost of
Doc Day Details Fol Sales
Sales
62 1 B. Zulu D4 1 250 1000
63 5 V. Matlock D3 1 000 800
2 250 1 800
Cash Receipts Journal of Diteboho Stores for April 2012
Cost of Sundry accounts

Doc Day Details Analysis Bank Sales
Sales Amount Details
CR
3 Cash 125 125 125 100
R 11
CR
7 Cash 825 825 825 660
R 12
Rent
045 29 P. Gheely 4 000 4 000 4 000
income
4 950 950 760 4 000

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Grade 9 Term 3 2021
Incorporating credit sales into the accounting system: Remember – we are the
ones doing the selling! So
it is from our point of
Let’s begin by comparing a credit sale to a cash sale view as the business
Cash Sale Credit sale

Descriptio We sell goods to a customer, the We sell goods to a customer, the
n customer receives goods, and in customer receives goods. We do not
return we (the retailer) receive money receive payment, however the
(payment) customer agrees to pay us at some
point in the future. The customer now
owes us money, and is referred to as
a debtor.
Double Dr Bank Money is Dr Debtors In this case, the
entry 1 received as a control business is
Cr Sales
result of the generating an
Cr Sales
income sales. income from
sales, but no
money is
received.
Instead, the
promise of money
in the future is
received.
Double Dr Cost of sales This records the Dr Cost of sales This records the
entry 2 loss of the asset loss of the asset
Cr Trading Cr Trading
trading inventory trading inventory
Inventory Inventory
as it is used to as it is used to
SAME generate and SAME generate and
income. income.
As we can see the only difference is that money is not received in a credit
transaction. Therefore the bank account is replaced with the Debtors Control
Difference
account. This asset account represents money that will be received in the near
future.

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Grade 9 Term 3 2021
TOPIC: FINANCIAL LITERACY MEMORANDUM

ACTIVITY 3.6
Flower Stores sells goods for cash as well as on account. Use the information
provided below to prepare the Cash Receipts Journal and the Debtors’ Journal for
Flower Stores for April 2012. Flower Stores uses a 25 % mark-up on cost.

1 Z. Zikwa was issued with invoice for goods purchased with a cost price of
R1 600.
7 Issued invoice 65 to V. Vila for R3 750.
15 Issued receipt 044 to ABSA for R27 for interest received on current account.
18 Sold goods on credit to T. Tim, issued invoice 66 for R1 500.
19 Cash sale of goods with a cost price of R540.
26 Sold goods on credit to M. Marine, issued invoice 67 for R2 750.
28 Cash sale to Z. Zikwa, R1 225.
29 V.Vila was issued invoice 68 for R200 for goods bought on credit.
Debtors’ Journal of Flower Stores for April 2012

Cost of
Doc Day Details Fol Sales
Sales
64 1 Z. Zikwa 2 000 1 600
65 7 V. Vila 3 750 3 000
66 18 T Tim 1 500 1 200
67 26 M Marine 2 750 2 200
68 29 V Vila 200 160
10 200 8 160

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Grade 9 Term 3 2021
Cash Receipts Journal of Flower Stores for April 2012

Cost Sundry accounts
Doc Day Details Analysis Bank Sales of
Interest
044 15 Absa 27 27
income
CR
19 Cash 675 675 675 540
R
CR
28 Z Zikwa 1 225 1 225 1 225 980
R
1 927 1 900 1 520 27
NOTES:
Transaction 1: The customer was issued with an invoice, this tells us that the
transaction is a credit transaction and that it should be entered in the debtors journal.
The cost price was given as R1600 therefore we need to calculate the selling price,
we are given the mark-up percentage as 25%.
SP = CP × 100 + MU/100
SP= 1600×125/100=R2000
The invoice was written out to the customer as R3 750, from this we conclude that
this is the selling price. We must calculate the cost Price. We are given the mark-up
percentage as 25%.
CP=SP×100/100+MU
CP=R3 750×100/125=R3000
Transaction 3: A receipt was issued to ABSA, this indicates that the transaction
should be entered in the cash receipt journal because receipts are issued only when
cash is received.

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Grade 9 Term 3 2021
transaction is a credit transaction and that it should be entered in the Debtors
journal. The invoice was written out to the customer as R1500, from this we conclude
that this is the selling price. We must calculate the cost Price. We are given the
mark-up percentage as 25%.
CP=SP×100/100+MU
CP= R1500×100/125=R1200
Transaction 5: This is cash sale of goods, therefore shows that goods were sold on
cash, money was received immediately. This will be recorded in the cash receipts
journal. The cost price is given, selling price must be calculated.
SP = CP × 100 + MU/100
SP=R540×125/100=R675
The invoice was written out to the customer as R2 750, from this we conclude that
this is the selling price. We must calculate the cost Price. We are given the mark-up
percentage as 25%.
CP=SP×100/100+MU
CP=R2 750×100/125=R2 200
Transaction 7: This is cash sale of goods, therefore shows that goods were sold on
cash, money was received immediately. This will be recorded in the cash receipts
journal. The cash sale was given as R1 225 therefore the cost price needs to be
calculated.
CP=SP×100/100+MU
CP= R1 225×100/125=R980
transaction is a credit transaction and that it should be entered in the Debtors
journal. The invoice was written out to the customer as R200, from this we conclude
that this is the selling price. We must calculate the cost Price. We are given the
mark-up percentage as 25%.
CP=SP×100/100+MU
CP= R200×100/125=R160

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Grade 9 Term 3 2021
PAYMENT OF ACCOUNTS BY DEBTORS

Example:
In the following example we observe the business EX Ample Traders. They have two
debtors who both make a payment, the one debtor pays a portion of his debt, while
the other pays his debt in full. The transactions are recorded in the Cash Receipts
Journal which you will now notice has an additional column – Debtor’s Control. This
new column allows you to record money received from debtors with greater ease.
Information from the books of EX Ample Traders 1 June 2012:
Debtors’ balances:
P. Mda R795
M. Jones R1 800
Transactions:
On 7 June 2012 a cheque is received from P. Mda in full settlement of his account,
receipt 35 is issued to him.
On 29 June an amount of R450 is received from M. Jones in part-payment of his
account, receipt 36 is issued to him.
These transactions are recorded as follows:
Cash Receipts Journal of EX Ample Traders for June 2012
Cost Sundry
Debtors’ accounts
Doc Day Details Fol Analysis Bank Sales of
Control
P.
35 7 795 795 795
Mda
M.
36 29 450 450 450
Jones
1
1 245
245
The above two transactions, as you can see, are recorded in the Bank and Debtors’
Control columns. These columns will eventually be posted to the General Ledger.
The double entry principle of the General Ledger starts in the journal, which is why it
is necessary to enter each transaction twice. The bank column will be debited to the
asset account Bank, as it is getting bigger with the receipt of more money, whereas
the Debtors’ control column is credited to the asset account Debtors’ control in the
General Ledger, as this account is getting smaller as the debtors now owe less.

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Grade 9 Term 3 2021
MEMORANDUM TOPIC:
FINANCIAL LITERACY TOTAL: 25 MARKS
CLASS TEST 3.7.
You are provided with information from the books of Ria Stores for the month of April
2012. Ria Stores are retailers of musical equipment, they sell goods for cash and
credit. Ria Stores uses a mark-up of 100 % on cost. You are required to record these
transactions in the following books of first entry:
1. The Cash Receipts Journal (with columns for bank, sales, cost of sales and
debtors control.)
2. The Cash Payments Journal (with columns for bank, trading stock and
stationery.)
3. The Debtors’ Journal
Day Transaction
1 Bought merchandise from Halley Suppliers for R1 200, issued cheque89.
2 Sold goods for cash, R1 800.
4 Issued invoice 68 to B. Buntu for R840 and invoice 69 to K. Kulu for R220.
7 Paid R2 890 with cheque 90 to Arian Suppliers for merchandise, R1 990 and
stationery R900.
11 Sent cheque 91 to DIY adverts for advertising, R2 850.
15 Bought packing material from Sira packs, paid R250 with cheque 92.
19 Sold goods for cash, R800.
21 Issued invoice 70 to D. Down for R660.
25 Issued receipt 58 to K. Kidi for R220 paid on account.
Issued invoice 71 to G. Gillian for R3 000.
29 Issued cheque 93 to Sunshine Suppliers for merchandise, R2 150 and
stationery R600.
30 Paid Loots Properties R4 500 with cheque 94 for rent.
Cashed a cheque for wages, R7 500

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Grade 9 Term 3 2021
Cash Payments Journal of Ria Stores for April 2012
Trading Sundry accounts

Doc Day Details Bank Stationery
Stock Amount Details
Halley
89 1 1 200 1 200
suppliers
Arian
90 7 2 890 1 990
suppliers
91 11 DIY adverts 2 850
92 15 Sira pack 250
Sunshine
93 29 2 750 2 150 600
suppliers
Loots 12 000 Rent
94 30 4500
properties expense
95 Cash 7 500 Wages
21 940 5 340 1 500 15 100
Cash Receipts Journal of Ria Stores for April 2012
Cost Sundry
Debtors’ accounts
Doc Day Details Fol Analysis Bank Sales of
Control
CRR 2 Cash 1 800 1800 1800 900
CRR 17 Cash 1 700 1700 1700 850
CRR 19 Cash 800 8 00 800 400
58 25 K Kidi 220 220 220
CRR 26 Cash 4 500 4500 4500 2 250
13420 8800 4 400 220

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Grade 9 Term 3 2021
Debtors’ Journal of Ria Strores for December 2012

Debtors’ Cost of
Doc Day Details Fol
Control Sales
68 4 B. Bantu 840 420
69 K Kulu 220 110
70 21 D Down 660 330
71 26 G Gillian 3 000 1 500
4 720 2 360
NOTES:
NB! Remember the keywords to look out for when deciding which Journal a
transaction must be recorded into.
- “issued cheque” – CPJ
- “Issued invoce”- DJ
- “sold goods for cash” – CRJ
- “issued receipt” – CRJ
- “cashed a cheque” – CPJ
Transaction on the 30th: Two transactions took place on the same day and both
were entered on the CPJ. The two amounts of R4 500 payed for rent and R7 500
payed for wages should be added together in the bank column – R4 500+R7 500=
R12 000. If two transactions happen on the same day, we do not rewrite the date on
the second transaction as shown in the memo.

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Grade 9 Term 3 2021
WEEK 7-8
FINANCIAL LITERACY: CREDIT PURCHASES
BUYING ON CREDIT
In the same way that a business sells goods on credit to debtors, businesses can
also buy goods on credit. We call the business that we buy from on credit a
‘creditor’.
We sell on Credit to a Debtor, BUT, We buy on Credit from a Creditor.
Take note: both of the above are credit transactions .
When we buy on credit we enter into an agreement where we agree to pay the
supplier (now called a creditor), at a future date. (Usually between 30 and 90 days.)
Therefore it is necessary for us to Keep a record of what we have purchased on
credit, and from whom. We also need to keep a record of how much and when we
pay our creditors. This is where accounting is useful! Properly kept accounting
records will tell us how much we owe each individual creditor, as well as how much
we owe in total.
Source documents:
● Once again, the source document is an invoice (this is the source document
for all credit transactions).
● However when the business sold on credit the Invoice that we used was a
duplicate of the original invoice, a carbon copy. The customer must legally
always be given the original invoice.
● NOW, when the business buys on credit, they are the customer! Hence the
business gets to keep the original invoice!
⮚ Let’s look at three types of transactions that may affect creditors and
how we can show the effect in the accounting equation.
1. Buying an asset on credit
2. Buying an expense on credit
3. Paying the creditor

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Grade 9 Term 3 2021
EXAMPLE: Analyse the following transaction in the accounting equation.

TRANSACTIONS
1. Bought equipment on credit from Leon machines for R6 000, received invoice
001
2. Received invoice 002 from Dali stationers, for stationary bought for R600
3. Sent a cheque 333, of R4 000 to Leon machines for part payment of our
account.
No Source Account Account A = OE + L
document debit credit
1. Original invoice Equipment Creditors +6 000 0 +6 000
control
2. Original invoice Stationery Creditors +600 +600
control
3. cheque Creditors Bank -4 000 -4 000
counterfoil control
NOTE:
⮚ TRANSACTION 1
In the business TWO things have happened: Can you see a double entry?
1. The business now has more EQUIPMENT.

2. They also OWE money to another business. This must be recorded.
Double entry:
● What do we know: Two accounts are involved namely Creditors Control
and EQUIPMENT
Liability
Creditors control Is Creditors Control getting
BIGGER?
Get smaller on the DEBIT side. Get bigger on the CREDIT side
6000
Is the Equipment increasing?

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Grade 9 Term 3 2021
ASSET
Equipment
Get bigger on the DEBIT side. Get smaller on the CREDIT side
6000
⮚ TRANSACTION 2
In the business TWO things have happened:

1. The business OWES more money to a creditor..
2. The business now has more STATIONERY - but the owner now has less
money in the business. Can you see a double entry?
Double entry:
What do we know: Two accounts are involved namely BANK and STATIONERY
Liability
Creditors control Does the business owe more?
Get Smaller on the DEBIT side. Get Bigger on the CREDIT side
600
Expenses
Stationery Is the Stationery Account increasing?
Get bigger on the DEBIT side. Get smaller on the CREDIT side
600

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Grade 9 Term 3 2021
⮚ TRANSACTION 3
In the business TWO things have happened:

1. The business OWES LESS money to a creditor. Can you see a double entry?
2. The business now has LESS money in the Bank.
1. Double entry:
What do we know: Two accounts are involved namely BANK and CREDITORS
CONTROL
Asset Does the business have less cash?
Bank Account
Get Bigger on the DEBIT side. Get Smaller on the CREDIT side
4 000
Liability Does the business owe less money?
Creditors Control Account
Get Smaller on the DEBIT side. Get Bigger on the CREDIT side
4 000

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Grade 9 Term 3 2021
MEMORANDUM
TOPIC: FINANCIAL LITERACY TOTAL: 10MARKS
ACTIVITY 3.8.
Analyse the following in the accounting equation
TRANSACTIONS:
1. Purchased stationery from Drai Stationers for R700, renumbered their invoice 11
2. Issued cheque 34 for R120 000 to Ria Motors for a vehicle bought.
3. Purchased equipment from Liza Suppliers for R1 800, received their invoice and
renumbered it to 12
4. Issued a cheque 35 to Drai Stationers for R500, for payment of our account.
5. Purchased merchandise from Limpopo Manufacturers, R850, renumbered their invoice to
13
No Source Account Account Assets Owners Liability

document debited credited equity
1 Original Stationery Creditors 0 -700 +700
invoice control
2 Cheque Vehicle Creditors +120 000 0 +120 000
counterfoil control
3 Original Equipment Creditors +1 800 0 +1 800
invoice control
4 Cheque Creditors Bank -500 0 -500
counterfoil control
5 Original Trading stock Creditors +850 0 +850
invoice control

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Grade 9 Term 3 2021
Recording in the Creditors’ Journal

The Creditors’ Journal is very similar to the Cash Payments Journal, they both
record purchases and therefore look the same, and in fact are treated in a very
similar way when posting to the ledger.
Example:
Transactions for June 2012:
2 Purchased equipment from Leon Ltd for R6 000, received their invoice and
renumbered it to 134.
5 Received invoice and renumbered to 135 from Minki Stationers for stationery
bought on credit, R550.
10 Purchased trading stock from Backpackers for R600 and received invoice 136
Creditors Journal of Ria Traders for June 2012
Sundry accounts
Creditors’ Trading
Doc Day Details Fol Equipment
Control Stock
Amount Details
134 2 Leon ltd 6 000 6 000
135 5 Minki stationers 550 550 Stationery
136 10 Backpackers 600 600
NOTE:
The similarity between the Creditors Journal and Cash Payments Journal, the only
real difference is that the Bank column is replaced with the Creditors’ Control
column. This is due to the fact that money is not being paid immediately for the
items purchased, and so as a result, the Bank account is not affected.
Just like in the Cash Payments Journal, each transaction is recorded in two columns
in the Creditors’ Journal, the Creditors’ Control column, and one other.

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Grade 9 Term 3 2021
MEMORANDUM
ACTIVITY 3.9.
Transactions from the books of Ria Traders for the month of September 2012.
Instructions:
Record the following transactions in the Creditors’ Journal of Ria Traders for
September 2012. Use analysis columns for Creditors’ Control, Trading Stock,
Stationery and Sundries.
Transactions for June 2012:
3 Bought Trading Stock from Lion Supplies for R 1350, received their invoice 09877
and renumbered it to 042.
9 Received invoice from Top Office, renumbered to 043, for Stationery purchased
for R280.
14 Purchased equipment on credit from Eagle Electric for R650, renumbered their
invoice to 044.
22 Purchased Trading Stock from Lion Supplies for R800, renumbered their invoice
to 045.
28 Received invoice mm890 (renumbered to 046) from Mankele manufacturing for
merchandise purchased, R550.
Creditors’ Journal of Ria Traders for September 2012

Doc Day Details fol Creditors Trading Stationery Sundry accounts
control stock
no Amount Details
042 3 Lion suppliers 1 350 1 350
043 9 Top office 280 280
044 14 Eagle electric 650 650 Equipment
045 22 Lion suppliers 800 800
046 28 Mankele 550 550

manufacturing
3 630 2 700 280 650

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Grade 9 Term 3 2021
RECORDING PAYMENT OF CREDITORS IN THE CASH PAYMENT JOURNAL
EXAMPLE
TRANSACTION:
1. Sent a cheque 333, of R4 000 to Leon Ltd for part payment of our account.
2. Sent cheque 334 for R550 to Minki stationers in full settlement of the amount
owed to them
3. Paid Backpackers R350 on account, cheque 335
Cash Payments Journal of Ria Traders for July 2012
Creditors Sundry accounts
Doc Day Details Bank Wages
control Amount Details
Leon
333 1 4 000 4000
machines
334 2 Nadia CC 980 980
In the above example you can see that the only new addition to the Cash Payments
Journal is the column for Creditors’ Control. This is the column in which the amount
paid to the creditor is recorded.

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Grade 9 Term 3 2021
MEMORANDUM
TOPIC: FINANCIAL LITERACY
TOTAL: 15MARKS
CLASS TEST 3.10.
Transactions from the books of Ria Traders for the month of May 2012.
Instructions:
Record the following transactions in the:
1 Creditors’ Journal of Ria Traders
2 Cash Payments Journal of Ria Traders
Transactions for May 2012:
1 Issued cheque 101 to Lizy Manufacturers for Trading stock, R800.
3 Purchased inventory from Soweto Suppliers for R1 000, renumbered their
invoice to i55.
7 Cashed cheque to pay wages, R500.
10 Received invoice lm547 from Lizy Manufacturers, renumbered this to i56, the
invoice was for merchandise purchased for R300.
12 Sent cheque 103 for R900 to Media advert for advertising.
13 Purchased stationery from Thandi Stationers for R700, renumbered their
invoice to i57.
18 Purchased equipment from Toolo Suppliers for R1 800, received their invoice
and renumbered it to i58.
19 Cashed cheque 104 for wages, R500.
25 Sent cheque 105 to the municipality for rates and taxes, R500.
30 Purchased merchandise from Limpopo Manufacturers, R850, renumbered
their invoice to I59.

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Grade 9 Term 3 2021
Creditors’ Journal of Ria Traders for May 2012

Doc Day Details Fol Creditors Trading Equipment Sundry accounts
no control stock
Amount Details
I55 3 Soweto suppliers 1 000 1 000
I56 10 Lizy manufactures 300 300
I57 13 Thandi stationers 700 700 Stationery
I58 18 Toolo supliers 1 800 1 800
I59 30 Limpopo 850 850
manufactures
4 650 2 150 1 800 700
Cash Payments Journal of Ria Traders for May 2012

Doc Day Details Fol Creditors Trading Equipment Sundry accounts
no control stock
Amount Details
101 1 Lizy 800 800
manufactures
102 7 Cash 500 500
103 12 Media advert 900 900 advertising
104 19 Cash 500 500
105 25 Municipality 500 500 Rates
3 280 1 000 800 1 480

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Grade 9 Term 3 2021
au
EXAMPLE: POSTING TO THE CREDITORS LEDGER
Creditors Journal of Ria Traders for June 2012 CJ1
Sundry accounts
Control Stock Amount FOL Details
134 2 Leon Ltd C1 6 000 6 000

Minki
135 5 C2 550 Stationery
stationers 550 N1
136 10 Backpackers C3 600 600

7 150 600 6000 550
B4 B2 B1
Cash Payments Journal of Ria Traders for June 2012 CPJ1

333 28 Leon Ltd 4 000 4000
4 350 4 350
B3 B4
SOLUTION: Creditors Ledger of Ria Traders
Fol. CL1
LEON Ltd Fol. C1
Date Details Fol. Debit Credit Balance
June 2 Invoice 134 6 000 6 000
June 28 Receipt 333 4 000 2 000
MINKI Stationers Fol. C2

June 5 Invoice 135 550 550
Backpackers Fol. C3
June 10 Invoice 136 600 600
June 31 Receipts 334 350 250

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Grade 9 Term 3 2021
EXAMPLE: POSTING TO THE GENERAL LEDGER

Creditors Journal of Ria Traders for June 2012 CJ1
Sundry accounts
Control Stock Amount FOL Details
134 2 Leon Ltd C1 6 000 6 000
Minki C2
135 5 550 Stationery
stationers 550 N1
136 10 Backpackers C3 600 600
7 150 600 6000 550
B4 B3 B1
Cash Payments Journal of Ria Traders for June 2012 CPJ1

333 28 Leon Ltd 4 000 4000
4 350 4 350
B2 B4
SOLUTION: General Ledger of Ria T raders Cr.

DATE DETAILS FOL. AMOUNT DATE DETAILS FOL. AMOUNT
Balance Sheet Accounts Section
Equipment Fol. B1
June 31 Creditors control CJ 6 000 -
Bank
Fol.B2
June 31 Total payments CPJ 4 350 -
Trading stock Fol.B3

June 31 Creditors control CJ 600 -
Creditors Control Fol.B4

June 31 Bank CPJ 4 350 - June 31 Total purchases CJ 7 150 -

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Grade 9 Term 3 2021

Nominal Accounts Section
Stationery Fol.N1
June 31 Creditors control CJ 550 -

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Grade 9 Term 3 2021
TOPIC: FINANCIAL LITERACY TOTAL: 12 MARKS

ACTIVITY 3.11.: CREDITORS LEGDER
Use the following Creditors Journal and Cash Payments Journal given
to post creditors’ accounts to Creditors Ledger.
Inv. Day Creditors Fol. Creditors Trading Stationery Amount Sundry Fo
No. control stock accounts
01 11 Nina traders C1 1 500 00 1 500 00 Equipment B
02 10 Mali Ltd C2 6 000 00 6 000 00
03 30 Orion stationers C3 600 00 600 00
8 100 00 6 000 00 600 00 1 500 00
Creditors Journal of Leon Traders - August 2013 Folio. CJ1
Cash Payments Journal of Leon Traders- August 2013 Folio. CPJ1

Doc. Day Name of payee Fol. Bank Trading Creditors Amount Sundry Fo
No. stock control accounts
001 29 Nina Traders C1 1 000 00 1 000 00
002 30 Mali Ltd C2 6 000 00 6 000 00
7 000 00 7 000 00
Creditors Ledger of Leon Traders

Fol. CL1
NINA TRADERS Fol. C1
Aug 11 Invoice 01 CJ 1 1 500 - 1 500 -
29 Cheque 001 CPJ 1 1 000 - 500 -
MALI Ltd Fol. C2

Aug 10 Invoice 02 CJ 1 6 000 - 6 000 -
30 Cheque 002 CPJ 1 6 000 - 0
Orion stationers Fol. C3

Aug 30 Invoice 03 CJ 1 600 - 600 -

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Grade 9 Term 3 2021

ACTIVITY 3.12.: GENERAL LEDGER
Post the following Creditors Journal and Cash Payments Journal to
General Ledger.
Creditors Journal of Leon Traders Folio. CJ1
Inv. Day Creditors Fol. Creditors Trading Stationery Amount Sundry Fol.
No. control stock accounts
01 11 Nina Traders C1 1 500 00 1 500 00 Equipment B_
02 10 Mali Ltd C2 6 000 00 6 000 00
03 30 Orion stationers C3 600 00 600 00
8 100 00 6 000 00 600 00 1 500 00
B_ B_ N_
Cash Payments Journal of Leon Traders Folio. CPJ1
Doc. Day Name of payee Fol. Bank Trading Creditors Amount Sundry Fol.
No. stock control accounts
001 29 Nina Traders C1 1 000 00 1 000 00
002 30 Mali Ltd C2 6 000 00 6 000
7 000 00 7 000 00
B_ B_
General Ledger of Ria Traders Cr.
Balance Sheet Accounts Section
Equipment Fol. B1
Aug 31 Creditors control CJ 1 1 500 -
Bank
Fol.B2
Aug 31 Total payments CPJ 7 000 -
Trading stock Fol.B3

Aug 31 Creditors control CJ1 6 000 -
Creditors Control Fol.B4

Aug 31 Bank CPJ 1 7 000 - Aug 31 Total purchases CJ 1 8 100 -

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Grade 9 Term 3 2021

Nominal Accounts Section
Stationery Fol.N2
Aug 31 Creditors control CJ 1 600 -

SK MOTSABI

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1

ECONOMIC AND MANAGEMENT SCIENCES

COMPILED BY: VA MAFEREKA

COMPILED BY: VA MAFEREKA

3. GENERAL MANAGEMENT FUNCTION

4. HUMAN RESOURCES FUNCTION

COMPILED BY: VA MAFEREKA

7. PUBLIC RELATIONS FUNCTION

COMPILED BY: VA MAFEREKA

9. RISK MANAGEMENT FUNCTION

COMPILED BY: VA MAFEREKA

TOPIC: BUSINESS FUNCTIONS MEMORANDUM

COMPILED BY: VA MAFEREKA

TOPIC: BUSINESS FUNCTIONS MEMORANDUM

The ABC Clothing Company

consultants have suggested ways to reduce any business risks.

- Marketing function: “carries out market research “

COMPILED BY: VA MAFEREKA

THE IMPORTANCE OF PLANNING

WHY YOU NEED A BUSINESS PLAN?

COMPILED BY: VA MAFEREKA

Topic: The Business Plan MEMORANDUM

1. Discuss the main purpose of a business plan. (4)

COMPILED BY: VA MAFEREKA

CONCEPTS, COMPONENTS AND FORMAT OF A BUSINESS PLAN

2. CONTENT PAGE / TABLE OF CONTENT

3. DESCRIPTION OF THE PRODUCT or SERVICE

COMPILED BY: VA MAFEREKA

6. THE MARKETING PLAN

Topic: The Business Plan MEMORANDUM

ACTIVITY 3.4. TOTAL: 8 MARKS

1. Objectives and goals of a business should be realistic, specific and measurable.

COMPILED BY: VA MAFEREKA

7. THE MANAGEMENT PLAN

8. THE FINANCIAL PLAN

COMPILED BY: VA MAFEREKA

10. CONCLUSION in a business plan

COMPILED BY: VA MAFEREKA

Topic: The Business Plan

Complete a SWOT analysis for KIDZ Clothing Company. (8)

COMPILED BY: VA MAFEREKA

EXAMPLE: DEBTORS JOURNAL AND CASH RECEIPTS JOURNAL

Transactions for April 2012:

COMPILED BY: VA MAFEREKA

Cash Receipts Journal of Diteboho Stores for April 2012

Cost of Sundry accounts

4 950 950 760 4 000

COMPILED BY: VA MAFEREKA

Cash Sale Credit sale

COMPILED BY: VA MAFEREKA

TOPIC: FINANCIAL LITERACY MEMORANDUM

Transactions for April 2012:

Debtors’ Journal of Flower Stores for April 2012

COMPILED BY: VA MAFEREKA

Cash Receipts Journal of Flower Stores for April 2012

1 927 1 900 1 520 27

COMPILED BY: VA MAFEREKA

COMPILED BY: VA MAFEREKA

PAYMENT OF ACCOUNTS BY DEBTORS

COMPILED BY: VA MAFEREKA

COMPILED BY: VA MAFEREKA

Cash Payments Journal of Ria Stores for April 2012

Trading Sundry accounts

Cash Receipts Journal of Ria Stores for April 2012