Income and expenditure statement

1a) What is the difference between income and expenditure statement and a budget?
b) Define "Income" and "Expenditure" in the context of personal finance.
c)List three types of income and expenditure.
d)Calculate the total monthly income for a person who earns R 800 from a part-time job
and R 300 from babysitting.
e) Identify and categorize the following expenses as either fixed or variable: rent (R
1200), groceries
(R 800), cellphone bill (R 200), entertainment (R 300).
f) Calculate the total monthly expenditure for the identified expenses in question 4.
g)Suppose a person's monthly income is R 1500, and their fixed expenses are R 600
(rent) and R 100 (utilities). Calculate their monthly discretionary income.

2)Mr. and Mrs. Frederickson are planning to buy a bigger house so they decided to
design a budget to help see how much they can save to buy 4-bedroomom and 3-
bathroom house with an office houses.
Monthly income Monthly expenditure
Salary (after R32000 Water and refuse R500
deductions)
Secondary income Electricity R1200
Rates and Taxes R1420
Cell phone R1000
Maintenance on rental unit R500
(10%)
Food R3500
Insurance R2320
School fees R500
Car repayments R2500
Clothing R850
Entertainment R900
Savings R2000
Medical Aid R5000
Pension fund (8% of total
income)
Total Total
Housing savings
a) Calculate the amount of money for the pension fund every month
b) Calculate the total expenditure if the 10% that is used for maintenance what is the
total Secondary income?
c) How much have the Fredericksons’ saved after saving for 2 and a half years
d)How much will the Fredericksons’ have to borrow if their house cost R1.2 million.
e)If the Fredericksons’ didn’t receive a secondary income for a year due to covid how
much would they then have saved for their house and how much would they now have
to borrow from the bank.
3)Example of University students Income and expenditure statement
Income item Amount Expenditure item Amount
Side Hustle R1500 Clothing R1000
Allowance R2500 Travelling R800
Food R1000
Airtime R500
Other R200
Total R4000 Total R3000

a) Give three examples of what other could be

b) Does the student make a profit or losses
c)What would happen if Travelling increased by 20% and 10% for Clothing what would
the students total expenditure be and would they make a profit or loss
d)If there was no Side Hustle would the student be able to afford their lifestyle
e) What could be removed to afford their lifestyle