1

FINANCE: Level 2
BUDGETS / INCOME STATEMENT
INCOME: A. FIXED INCOME ** Money received every week / month, AND it stays the SAME
- Salaries - Interest received ( fixed )
- Bursaries - Housing subsidy
- Child support maintenance

B. VARIABLE INCOME ** Money received that differs from month to month

- Wages - Sales
- Commission on sales - Services rendered
- Interest received ( compound )

C. OCCASIONAL INCOME ** Money received OCCASIONALLY

- Birthday money - Inheritance money
- Money received for selling your own personal goods

EXPENSES: A. FIXED EXPENSES ** Amount paid weekly / monthly stays the SAME
- Rent paid - Cellphone contract
- Insurance paid - Clothing account
- Home loan / Bond - School fees
- Student loan repayment - Car repayment
- Monthly transport / train ticket - Municipal Rates

B. VARIABLE EXPENSES ** An amount that differs from month to month

- Groceries - Entertainment
- Cellphone contract - Clothing account
- Electricity & Water - Transport
- Cellphone Pay-as-You-Go
- Garden services - Savings
C. OCCASIONAL EXPENSES ** Money spends occasionally
- Birthday gifts - Haircut
- Home repairs - Funeral costs
- Buying a new fridge / stove, etc

INCOME - EXPENSES = SURPLUS / DEFICIT *** SURPLUS: When Income is MORE than Expenses
*** DEFICIT: When Income is LESS than Expenses
BUDGET: To compare your Income with your Expense
Please note that the Income and Expenses are seperated
There is more than one format of this document
Familiarise yourself with the format and contents

Example 1: Ms Msiza earns a net salary of R 16 250, including a housing allowance.

All deductions are made. Her monthly budget is shown in the table below:
1.1 Name TWO fixed expenses. Bond repayment School fees Clothes & Cell phones
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Municipal rates Car Instalment

1.2 Name TWO variable expenses. Water account Petrol Groceries

Electricity Entertainment
1.3 Proof that Ms Msiza's expenses on clothes and cell phones are R 1 625,00.
(A) Total Income x 10% >>> R 16 250,00 x 10% = R 1 625,00
1.4 Calculate Ms Msiza's Total monthly expense ( B )
4 800 + 410 + 390 + 520 + 2 220 + 1 600 + 1 100 + 800 + 750 + 1 625 = R 14 215
1.5 Calculate Ms Msiza's balance account ( C ) after ALL expenses were paid
R 16 250,00 - R 14 215,00 = R 2 035,00
1.6 Is the balance a Surplus or Deficit? Justify your answer. Surplus. Income more than the Expenses.

MS Msiza's MONTHLY BUDGET

MONTHLY INCOME MONTHLY EXPENDITURE
Salary after R 15 350,00 Bond repayment R 4 800,00
Deductions Municipal rates R 410,00
Housing subsidy R 900,00 Water account R 390,00
Electricity R 520,00
Groceries R 2 220,00
Car Instalment R 1 600,00
Petrol R 1 100,00
Entertainment R 800,00
School fees R 750,00
Clothes & Cell phones (A)
( 10% of Total Monthly
Income )
TOTAL INCOME R 16 250,00 TOTAL EXPENSES (B)
DEFICIT/SURPLUS (C)

1. BUDGETS
1.1 Zinzi studies at a college and works part-time. She receives financial support every month from a bursary scheme.
① She kept record of her income & expenses. The following amounts were recorded:

Rent R 2 100
Groceries R 2 568
Wages: Part time job R 2 100
Transport R 430
Bursary R 3 000
Pocket money - parents R 1 250
Clothing account R 1 348
1.1.1 Following page
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1.1.2 Calculate whether Zinzi's budget has a surplus or a deficit.

Formula: Surplus / Deficit = Income - Expenses 3
Income - Expense R 6 350 - R 6 446 = - R 96 >> Deficit 1
1.1.3 Give ONE way in which Zinzi can balance her budget. Cut down on her Clothing account 1

1.1.1 Use the above information for January to draw up a budget for the month of February

ZINZI'S BUDGET
MONTHLY INCOME MONTHLY EXPENDITURE
Wages - Parttime job R 2 100 Rent R 2 100
Bursary R 3 000 Groceries R 2 568
Pocket money - Parents Transport R 430
R 1 250 Clothing account R 1 348
TOTAL INCOME R 6 350 TOTAL EXPENSES R 6 446
DEFICIT/SURPLUS 1.1.2 9

1.2 Brian had a part-time job. He kept record of all his earnings and payments he made during September 2018.
1.2.1 Complete the attached Income & Expenditure Statement. 10

Salary R 4 500
Rent from roommate R 700
Rent paid to landlord R 1 300
Water & Electricity R 370
Taxi & Bus fare R 400
Groceries R 2 095
Telephone bill ( landline) R 435,05
Entertainment R 150
Clothing & Toiletries R 300
Bank Charges R 50
School fees R 155

INCOME AMOUNT IN RANDS

Salary R 4 500

TOTAL INCOME
EXPENSES
Rent paid to landlord R 1 300
Water & Electricity R 370
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TOTAL EXPENSES
1.2.2 Use the completed statement and show by means of calculations whether he had a surplus or deficit. 2

1.2.3 If Brian wants to improve his financial position, on which TWO items do you think he should spend less on. Explain. 3

1.2.4 Brian recives an 8% increase on his salary. His rent expenses increases by 10%. All other expenses stay the
same. Show by means of calculations how much his surplus will be. 6

1.3 Zinzi is a university student, who is also a member of the Netball team. Student's membership fees are sponsered
② by the university. Her parents send her a monthly allowance of R 3 000 which covers the following expenses:
* Daily cost of R 60 for food for 25 days * Monthly clothing accounts, R 300.
* R 50 every 2 weeks for her hair * Transport per week, R 120. * Monthly cellphone payments.

Table below shows Zinzi's expenses up to 31 May 2017. Use 4 weeks per month
Food for the month A
Hair expenses for the month B
Monthly cellphone payments R 180
Monthly clothing account R 300
Transport for the month C
TOTAL D
SURPLUS / DEFICIT E

1.3.1 Calculate the missing A, B, C, D and E 10

A: Food >> R 60 x 25 days = R 1 500 B: Hair >> R 50 x 2 = R 100

C: Transport >> R 120 x 4 weeks = R 480
D: Total >> R 1 500 + R 100 + R 180 + R 300 + R 480 = R 2 560
E: Income - Expense >>> R 3 000 - R 2 560 = R 440 Surplus
1.3.2 Is the monthly allowance enough to cover all Pamela's expenses? Give a reason for your answer. 2

Yes She has a surplus of R 440

1.3.3 How much should Pamela's parents budget for her Annual allowance, as seen from given monthly allowance.
R 3 000 x 12 months = R 36 000 2

1.4 Phumzile is a university student. She receives a monthly allowance of R 3 000.

The allowance cover the following needs:
Monthly clothing account : R 350 Daily lunch at campus : R25
Monthly cellphone payment : R 100 Monthly transport fee : R 450
Weekend entertainment : R 150 per weekend

Monthly Budget
INCOME R 3 000
EXPENSES:
Clothing account R 350
Cell phone R 100
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Lunch A
Entertainment B
Transport C
TOTAL R 2 000
SURPLUS / DEFICIT D
1.4.1 Is Phumzile's income fixed or variable? Give a reason for your answer. 2

1.4.2 Determine the values of: a. A b. B c. C d. D 4x3

1.4.3 Calculate the amount in percentage of Phumzile's allowance which goes to the cell phone expenses. 3

1.4.4 Phumzile has decided to join credit protection insurancee. This will increase her clothing account instalment by 10%. 3

Calculate her new clothing account instalment. 3

1.5 Lerato is planning to go on a cultural tour with her college. The tour is planned for the next year. The tour will take
place over a period of 5 days. The college provided the following information as a guideline on the cost of the tour:

Transport R 650 Food R 100/day

Accommodation R 1 350 Spending money R 150/day
Lerato's parents gave her R 2 000 towards the tour.

BUDGET FOR LERATO'S SCHOOL TOUR

INCOME AMOUNT EXPENSES AMOUNT

TOTAL INCOME

1.5.1 Calculate the amount in rand Lerato will need for food during the 5 days. 2

1.5.2 Calculate amount in rand Lerato will need for spending money during the 5 days. 2

1.5.3 Draw up a budget for Lerato so that she can see what her financial situation is with regard to the tour. 8

1.5.4 Give Lerato ONE option of how she could increase her income, to allow her to afford the tour. 1

1.6 The student representative council ( SRC ) is planning a camping trip for one night. Twenty students will attend the trip
and each student will contribute R 150 towards the costs. The SRC will contribute an amount of R 4 000 towards the trip.
The campsite will cost R 125 per student per day. The SRC projects that the food will cost R 3 000 and the transport
will cost R 2 000.
1.6.1 Complete the budget for the camping trip. 10

BUDGET FOR CAMPING TRIP

INCOME AMOUNT
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TOTAL INCOME

EXPENSES AMOUNT

TOTAL EXPENSES
SURPLUS / SHORTFALL
1.6.2 Is there a shortfall or a surplus on the budget? Justify your answer. 2
1.6.3 State one way in which the SRC can balance the budget for the camping trip. 1
1.7 The final year students are planning a camping trip for a weekend. Forty students will attend the trip
and each student will contribute R 200 towards the costs. The college will contribute an amount of R 6 000 towards the trip.
The campsite will cost R 150 per student per day. The planning committee estimates that the food will cost R 5 000 and the
transport will cost R 4 000.
1.7.1 Complete the budget for the camping trip. 10

BUDGET FOR CAMPING TRIP

INCOME AMOUNT

TOTAL INCOME

EXPENSES AMOUNT

TOTAL EXPENSES
SURPLUS / SHORTFALL
1.7.2 Is there a shortfall or a surplus on the budget? Justify your answer. 2
1.7.3 State one way in which the SRC can balance the budget for the camping trip. 1

2. INCOME & EXPENDITURE ( with Variances )

Work the same way as Budgets
INCOME: Variance = Actual - Budgeted
Positive ( +) means your Actual Income is more than you Budgeted
*** You received MORE money than you planned for.
Negative ( - ) means you Actual Income is less than you Budgeted.
*** You received LESS money than you planned for.

EXPENSES: Variance = Budgeted - Actual

Positive ( +) means your Budgeted Expense is more than you Actual
*** You spend LESS money that you planned for.
Negative ( - ) means you Budgeted Expense is less than you Actual.
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*** You spend MORE money that you planned for.

Example 2: The table ( next [page )shows Nancy's Monthly Budget / Income & Expenditure
2.1 Calculate Nancy's total actual Income for March 2014 R 1 300 + R 500 = R 1800
2.2 Determine the missing value amounts: A - E
A: R 150 - R 190 = -R 40 B: R 220 - R 230 = -R 10
C: R 100 - R 180 = -R 80 E: R 1800 - R 1 925 = -R 175
D: R 45 + -R 90 + -R 40 + -R 10 + -R 80 = -R 175
2.3 State whether the amount in E is a surplus or Deficit. Justify your answer.

Deficit. Income is LESS than the Expenses.

MARCH 2014 Monthly Budget

INCOME
Planned/
ITEM Actual Variance
Budgeted
Pocket Money R 1 800 R 1 300 -R 500
NSFAS Allowance R 500 R 500 R0
Total Income R 2 300 R 1 800 -R 500

EXPENSES
Planned/
ITEM Actual Variance
Budgeted
Rent R 500 R 500 R0

Transport R 180 R 180 R0

Food R 450 R 540 - R 90

Cosmetic R 150 R 190 A

Airtime & Data R 150 R 105 R 45

Entertaiment R 220 R 230 B

Other R 100 R 180 C
Total Expenses R 1 750 R 1 925 D
BALANCE R 550 E

2.1 Dina works as a receptionist at a certain company. Study her Income & Expenditure Statement for May 2012.
INCOME & EXPENDITURE STATEMENT
Income in Rand Expenses in Rand
Monthly fixed INCOME after deductions 9 500
Overtime after deductions 2 500
Rent 1 900
Electricity Prepaid 100
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Transport - Bus fare 600
Cellphone: Pay-as-you-go 250
Groceries 1 600
Clothing 900
Savings ( Fixed amount ) 570
Entertainment 1 430
Other 1 200
TOTAL

2.1.1 What is Dina's fixed income after deductions? 2

2.1.2 Determine Dina's total expenses for the month. 2

2.1.3 Dina makes the following statement: " I need to work overtime to cover all my expenses". Do you Agree or
Disagree? Motivate your answer. 2

2.1.4 What percentage of her fixed income is paid for groceries? 3

2.1.5 Give one reason why Dina should keep record of her income and expenses. 2

2.2 Phindile is a student. She receives R 700 pocket money every month. She also receives a monthly salary of R 1 000 from
③ a retail store as well as a travel allowance, depending on the number of days travelled.
Phindile plans to save the surplus in her account at the Post Office.
PHINDILE'S BUDGET FOR JUNE 2013.
Budgeted (Planned Actual
Variance
) ( Realised )
INCOME R R R
Pocket money 700 700 0
Salary ( Part-time job ) 1 100 1 100 0
Travel Allowance 750 980 230
TOTAL INCOME A B
Budgeted Actual
Variance
( Planned ) ( Realised )
EXPENSES R R R
Stationery 100 140 -40
Food 600 554 E
Clothing 170 210 F
Rent 650 650 0
Transport 400 400 0
Entertainment 150 145 5
Other - Internet; cellphone, etc. 110 130 -20
TOTAL EXPENSES C D -49
SURPLUS / DEFICIT G H
2.2.1 Write down TWO items that can be considered as fixed income on Phindile's personal budget.
Pocket money Salary 2

2.2.2 Write down two items that can be considered as variable expenses on Phindile's personal budget. 2

Stationery; Food; Clothing; Entertainment

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2.2.3 Use the information provided in Phindile's budget to calculate the following:
a. Total projected income ( A ) R 700 + R 1 100 + R 750 = R 2 550 2

b. Total actual Income ( B ) R 700 + R 1 100 + R 980 = R 2 780 2

c. Total projected Expenses ( C ) 2

R 100 + R 600 + R 170 + R 650 + R 400 + R 150 + R 110 = R 2 180

d. Total actual Expenses ( D ) 2

R 140 + R 554 + R 210 + R 650 + R 400 + R 145 + R 130 = R 2 229

2.2.4 Use the formula: Variance = Projected - Actual and determine:
a. Variance on food expenses ( E ) R 600 - R 554 = R 46 2

b. Variance on clothing expenses ( F ) R 170 - R 210 = - R 40 2

2.2.5 Calculate the amount in Rands that Phindile planned to save at the Post Office.
(G) R 2 550 - R 2 180 = R 370 3

2.2.6 Calculate the amount in Rands that Phindile actually saved. (H) R 2 780 - R 2 229 = R 551 2

2.2.7 What is the meaning of the negative sign in the variance column? 2

When the Actual amount spend is more than the Budgeted amount

2.3 Sibusiso is a student. She stays in an apartment a few kilometres from the university. He parents give her a
④ monthly allowance of R 5 000,00, which should cover all her need. The Pie chart shows how she spend her money.
Key for Pie Chart
A: Rent D: Cellphone
B: Water & Electricity E: Savings
C: Clothing accounts F: Other.

F Other
…

A ## Full circle =
B ## 100%
A; 30%
C 10%
E; 15%
D 10%
E 15%
F 15%
D; 10% B; 20%

C; 10%

2.3.1 Write down TWO examples of monthly expenses that could be considered as "{Other Expenses
Groceries Transport Entertainment 2

2.3.2 Name TWO any examples of variable expenses from the list of Sibusiso's expenditure.
Water & Electricity Clothing Cellphone Savings 2

2.3.3 What percentage of her allowance is Sibusiso using for " Other expenses". 3
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100% (Full circle) - 30% - 20% - 10% - 10% - 15% = 15%
2.3.4 Calculate the total amount that Sibusiso saves each month. R 5 000 x 15% = R 750 3

2.3.5 Is Sibusiso's allowance an example of a fixed or variable income? Motivate. 2

Fixed >> Monthly allowance

2.4 Cindy is a consultant at Select a bed. She receives an income of 25% of her monthly sales. Her monthly sales in
January were R 13 800. The Pie Chart shows how she budgeted to spend her income.
Entertainment;
10%
Clothing Rent; 22%
accounts

Rent##
Savings
##
Groceries; 24%
Groceries
##
Clothing
7% accounts
Savings; 37%

Entertainment
10%

2.4.1 Determine the percentage for the clothing accounts. 2

2.4.2 How much money did she spend on entertainment in January? Show all your calculations. 3

2.4.3 During March she managed to achieve sales to the amount of R 17 545. Calculate her March Income. 4

2.4.4 Calculate the amount of money she spent on groceries in March. 3

2.4.5 Is Cindy's salary a fixed or a variable income? Give a reason for your answer. 2

2.4.6 Give ONE reason why it is good for Cindy to save a part of her Income. 2

2.5 Roderick keeps track of his income and expenses every month. All money that was in surplus every month were
entered as savings. Below is a table that shows his income and expenses for April to June 2020.

INCOME & EXPENDITURE STATEMENT FOR APRIL TO JUNE 2020

INCOME APRIL MAY JUNE
NSFAS allowance 3 940 3 940 3 940
Part-time job 3 000 3 040 3 200
6 940 A 7 140
EXPENDITURE
Food 4 650 4 880 B
Cellphone 600 600 600
Clothes 700 700 700
Transport 600 650 600
Savings 390 C 450
6 940 6 980 7 140
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2.5.1 According to his budget, name ONE variable income. 1

2.5.2 According to his budget, name TWO fixed expenses. 2

2.5.3 Calculate the missing values for A, B and C in the table. 6

2.5.4 On average Roderick saves R 330 per month. He is saving because he wants to buy himself a new watch. How
many months will he have to save if the watch he wants costs R 1 000.; Round off to the nearest month. 3

2.5.5 Advise Roderick on how he would be able to save more money per month to be able to buy the watch more quickly. 1

3. PAYSLIPS
These are documents given to an employee as evidence that a specified amount has been paid for salaries / wages
If a person earns a salary, it is also referred to as a Salary Advice.
The following information must appear on a pay slip:

Gross salary: a. Basic salary c. Basic salary + Overtime + Housing Allowance

b. Basic salary + Overtime d. Basic salary + any other income
Deductions: Income Tax ( PAYE ) Union fees
Medical Aid Fund Funeral policy, etc
Pension Fund ( On Basic salary ) Unemployment Insurance Fund
Nett salary: Gross salary - Deductions Take home pay
NOTE: Notch = Yearly basic salary, without Housing Allowance ( Salary p.m. X 12 )

Example: Jerry is a public servant. He received a Gross salary of R 14 125,25 per month. Every month the following were
deducted from his salary: PAYE; Pension Fund and Medical Aid fund.

Pay Date 20090530 Notch: (A)

INCOME DEDUCTIONS
Code Item Amount Code Amount
0001 Basic salary 13 625,25 0214 Pay-as-you-earn ( PAYE ) 2 350,00
Pension( 7,5% of monthly
0245 Housing Allowance 500,00 0315 1 021,89
salary)
0051 Medical aid contribution 1 562,20
Total Deductions 4934,09
Gross salary 14 125,25
Nett salary 9191,16

a. What is Jerry's pay date? 20090530

b. If the annual notch is his basic salary multiplied by twelve, calculate Jerry's Annual notch. ( A ) 163503
R 13 625,25 x 12 = R 163 503,00
c. Calculate Jerry's total deductions. ( B ) R 2 350,00 + R 1 021,89 + R 1 562,20 = R 4 934,09
d. Calculate the nett salary per month. ( C ) R 14 125,25 - R 4 934,09 = R9 191,16

3.1 Fulaki Bavuma works at Beta Chemicals. His salary is R 75 per hour during normal working hours. The company also pays
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30% more than normal hourly rates when workers are working overtime. 1% of the gross salary is deducted for UIF.
Fulaki worked 8 hours overtime for September, 2012. All workers get remunerated on the 15th day, every month.

BETA CHEMICALS
Name of Employee: Fulaki Bavuma
Job title: Foreman
ID number: 690722 4414 087
Date of Payment: 15 September 2012
BASIC SALARY DEDUCTIONS
Normal Pay: PAYE R 1 183,78
150 hrs @ R 75 R 11 250,00 Pension fund R 937,13
Overtime: UIF R 120,30
8 hrs @ 97,50 780
Gross salary 12030 Total deductions R 2 241,21
NETT SALARY 9788,79

3.1.1 Calculate the overtime remuneration earned. 3

3.1.2 Calculate the Gross salary. 3

3.1.3 Calculate the Nett salary 3

3.2 The table represents the payslip for Ms Nkuna

⑤ 3.2.1 Use the amount given on the payslip to show how the following values were determined:
a. Total deductions R 2 112,50 + R 2 849,20 + R 2 177,50 + R 346,60 2

b. Net pay R 34 660,00 - R 7 485,80 2

3.2.2 If Ms Nkuna is given an 8% increase on her basic salary, what will her new basic salary be? 3

R 32 500 x 8% = R 2 600 >>> R 32 500 + R 2 600 = R 35 100

3.2.3 If the Overtime amount, deductions for pension and Medical Aid remain the same and the taxable amount increases
by R 234,00, determine how the increase of 8% calcualted in QUESTION 3.3.2 will affect Ms Nkuna's Net Pay. 5

Income: R 35 100 + R 2 160 = R 37 260 Tax: R 2 112,50 + R 234,00 = R 2 346,50

UIF: R 37 260 x 1% = R 372,60
Total Expenses: Tax + Medical + Pension + UIF
R 2 346,50 + R 2 849,20 + R2 177,50 + R 372,60 = R 7 745,80
PAY -ADVICE SALARY SLIP
Name of Employee: Ms T Nkuna
Job title: Assistant Manager
Date of birth 26/09/1989
Date of Payment: 15/03/2019
Employer: PC Company, 123 Polokwane
BASIC SALARY DEDUCTIONS
Basic salary R 32 500,00 PAYE R 2 112,50
Overtime: R 2 160,00 Medical R 2 849,20
35100 Pension R 2 177,50
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UIF ( 1% ) R 346,60
Gross pay R 34 660,00 Total deductions R 7 485,80
Taxable income R 29 633,30 NET PAY R 27 174,20

3.3 Given below is the payslip of Mr SP Lamola. Study the payslip and answer questions.
PAY -ADVICE SALARY SLIP
Name of Employee: Mr SP Lamola Date of birth 10/07/1993
Job title: Accountant Date of Payment: 25/01/2021
ID No: 9307100086075 Tax no: 3458742
BASIC SALARY DEDUCTIONS
Basic salary R 34 750,00 Tax R 2 382,50
Overtime: R 3 560,00 Medical Aid R 2 989,20
Pension R 2 499,50
UIF ( 1% ) R 383,10
Gross pay R 38 310,00 Total deductions R 8 254,30
Taxable Income R32 821,30 NET PAY R30 055,70

3.3.1 Use the amount given on the payslip to show how the following values were determined:
a. Total deductions 2

b. Net pay 2

c. Taxable Income = Gross salary - Medical Aid - Pension 3

3.3.2 If Mr SP Lamola is given an 8,25% increase on his basic salary, what will his new basic salary be? 4

3.3.3 If the Overtime amount, deductions for Tax and Medical Aid remain the same and the Pension amount increases by
R 185,00, determine how the increase of 8,25% calculated in QUESTION 3.4.2 will affect Mr Lamola's Net Pay.
The new UIF amount will change in accordance with the new Gross salary amount. 6

3.4 Given below is the payslip of Mrs MP Ndlovu.

PAY -ADVICE SALARY SLIP
Employee name: Position Pay Date
Payslip No 11
Mrs Ndlovu MP Deputy Manager 29/11/2019
Employer Date of Birth
Samacuta Training Agency, 15 Crossroads, Giyani, 0826 21/04/1992
ID No: 9204213930082 Tax no: 2279003948
Earnings Amount Deductions Amount
Basic salary R24 375,00 Tax R1 301,64
Overtime: R1 620,00 Medical Aid R2 136,90
Pension R1 828,13
UIF ( 1% ) R259,95
Gross pay R25 995,00 Total deductions R5 526,62
Taxable Income R22 029,97 NET PAY R20 468,38

3.4.1 Show how each of the following values was determined:

a. Total deductions 2 b. Net salary 2
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c. Taxable income >>> Taxable income = Gross salary - Medical - Pension 3

3.4.2 What will Mrs Ndlovu's new basic salary be if she is offered an increase of 7% on her basic salary? 4

3.4.3 Determine how this increase in salary will affect Mrs Ndlovu's Net salary. Assume the following:
Overtime remains the same Tax amount increases by R 347,74
Deductions for Pension & Medical stay the same UIF amount changes according to new Gross salary 6

3.5 Miss Skyy's payslip for the month of June 2020 is shown below:
Employee name: Employee no:
Miss SB Skyy 20161185
Pay date: ID Number Job title: No. 10 Fife Str.
29/06/2020 8209066060086 Consultant Woodlands Park
Bank name: Account nr: Bank Code: Tzanneen
More Cash Ltd 10032403327 4450050 0850
Earnings Amount Deductions Amount
Gross salary 19 000,00 PAYE 2 200,00
Commission 4 400,00 UIF: 1% of GROSS salary A
Pension Fund 3 300,00
Medical Aid 1 100,00
Life cover 860,00
Union levies 250,00
Total earnings B Total deductions C
NET Salary 15 500,00

3.5.1 What does each of the following acronyms stand for: a. UIF b. PAYE 2

3.5.2 Determine the missing values for A, B and C in the table above. 6

3.5.3 Is commission a fixed or variable income? Give a reason for your answer. 2

3.5.4 How much is Miss Skyy's gross annual salary? Show ALL calculations. 3

3.6 Given below is Miss Robin's payslip for the month of August 2020.

HAPPINESS TRANSPORT LOGISTICS ( Pty ) Ltd

Employee no:
Employee name: Miss SJ Robin
20161185
Pay date: ID Number Job title: No. 10 Fife Str.
29/06/2020 8209066060086 Consultant Woodlands Park
Bank name: Account nr: Bank Code: Tzanneen
More Cash Ltd 10032403327 4450050 0850
Earnings Amount Deductions Amount
Gross salary 12 000,00 PAYE 2 200,00
Commission A UIF: B % of GROSS salary 120.00
Pension Fund 3 300,00
Medical Aid 1 100,00
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Life cover 860,00

Union levies C
Total earnings 16 400,00 Total deductions 8 000,00
NET Salary 8 400,00

3.6.1 Give the acronyms of each of the following:

a. Pay as you earn
b. Unemployment Insurance Fund 2

3.6.2 Determine the values of A, B and C. 6

3.6.3 Is commission a fixed or variable income? Give a reason for the answer. 2

3.6.4 Calculate Miss Robin's gross annual salary. 3

4. FINANCIAL STATEMENTS
Bank Accounts: Cheque account Account to open when you want to do a lot of transactions, e.g:
- withdraw money; payong bills by debit orders; doing electronic transfers
Lower bank fees than other accounts
No interest earned on a cheque account
Savings account Best account to open if you want to save
Can do transactions on a Savings account, but the bank fees will
be higher than a cheque account
Can earn interest
Must have a minimum balance
Credit card account Can use it to pay for normal expenses
You can spend more than what you actually have in the bank
High interest rates on overdrawn amounts
Fixed deposit Deposit money in the bank for a certain period, without using it
You earn more interest than any other account.

Documents: Deposit slip It is a form that is completed when money is deposited ( pay ) into account
Cheque It is a document that instructs the bank to take money out of the account
of the person who made out the cheque, to pay someone else
Bank statements It is a document to show all the transactions which took place during the month
It includes debit transactions ( expense ) and credit transactions ( income )
It indicates the type of transactions which took place, e.g.
ATM withdrawal, Debit orders, Bank fees, etc.
** Debit order: Can be used to pay monthly costs like insurance
It is arranged with the bank to pay every month at the same date
** Stop order: Similar to Debit order, but to individuals
** Bank costs & service charges:
Banks charges you for every transaction which take place
You notify the bank in advance if you want to withdraw the money
 16
the money

NOTE: Bank customers are charged additional fees each time they use another ATM than their Banks'ATM
BANK STATEMENT
Debit/ Payments/ Withdrawals DECREASE
Credit/ Deposits INCREASE
LOAN STATEMENT
Debit/ Insurance / Admin fees INCREASE
Credit/ Payments DECREASE

Example Study the following LOAN document ( following page ), and answer the questions:
a. What type of document is this? Loan statement
b. On which date was this document issued? 18/09/2015
c. How much was the original loan amount that was borrowed to Mr Lekalakala? R 114 700,00
d. How much is the current outstanding balance on the loan? R 64 279,64
e. Name TWO types of Debit transactions on the document. Interest debit Insurance premium
f. How much is the difference between the opening and closing balance on this document?
R 68 852,01 - R 64 279,64 = R 4 572,37
g. How much was paid into the account during September 2015? R 3 500,00
h. Calculate the interest amount debited on 1 July 2015. ( A ) R 67 159,60 - R 65 950,51 = R R 1 209,09
i. Determine the total debit amount on this statement.
R 1 299,56 + R 598,50 + R 1 209,09 + R 598,50 + R 1 178,07 +
R 598,50 + R 1 146,47 + R 598,50 = R 7 227,19

Example Personal loan account from 1 June 2015 to 1 September 2015.

Mr K Lekalakala CAPITAL BANK
P/Bag X7104 ACCOUNT SUMMARY
Groblersdal Credit advanced R 114 700,00
STATEMENT Annual Interest Rate 22
Statement date: Account no: Monthly Instalment R 3 500,00
18/09/2015 21616970044 Outstanding balance R 64 279,64
Arrears 0,00
NOW DUE R 3 500,00
DATE TRANSACTION AMOUNT
OUTSTANDING
POSTING EFFECTIVE DESCRIPTION DEBIT CREDIT
BALANCE
01/06/15 01/06/15 Interest debit 1 299,56 0,00 68 852,01
01/06/15 01/06/15 Insurance premium 598,50 0,00 69 450,51
30/06/15 30/06/15 Payment 0,00 3 500,00 65 950,51
01/07/15 01/07/15 Interest debit A 0,00 67 159,60
01/07/15 01/07/15 Insurance premium 598,50 0,00 67 758,10
31/07/15 31/07/15 Payment 0,00 3 500,00 64 258,10
03/08/15 03/08/15 Interest debit 1 178,07 0,00 65 436,17
 17
03/08/15 03/08/15 Insurance premium 598,50 0,00 66 034,67
31/08/15 31/08/15 Payment 0,00 3 500,00 62 534,67
01/09/15 01/09/15 Interest debit 1 146,47 0,00 63 681,14
01/09/15 01/09/15 Insurance premium 598,50 0,00 64 279,64

4.1 Jackie is the treasurer of the local Netball club. She received the following Bank Statement for a certain period in 2017:

⑥ DATE DETAILS DEBITS CREDITS BALANCE

23/02/17 Balance brought forward 8 950,50
24/02/17 Cash deposit 2 230,00 11 180,50
25/02/17 Cheque 233 850,00 A
27/02/17 Stop order: Tristar Superette 3 100,00 13 430,50
02/03/17 Cash deposit B 13 540,50
02/03/17 Service fees 44,20 13 496,30
02/03/17 Monthly account fee 55,00 13 441,30
02/03/17 Transaction charge 33,00 13 408,30
02/03/17 Cash deposit fee 116,26 13 292,04
02/03/17 Admin charge 8,00 13 284,04
03/03/17 Cash deposit 500,00 13 784,04
03/03/17 Cheque 234 C 12 584,04
4.1.1 Write down the bank balance of the netball club on 23/02/2017. R 8 950,50 2

4.1.2 Explain what is meant by Debits. Payments made / Withdrawals 2

4.1.3 Calculate the missing values of A, B, C 6

A: Balance ( 24/02/17 ) - Debit (2 5/02/17 ) R 11 180,50 - R 850,00 = R 10 330,50

B: Balance (02/03/17) - Balance (27/02/17) R 13 540,50 - R 13 430,50 = R 110,00
C: Balance (3/03/17) - Balance (3/03/17) R 13 784,04 - R 12 584,04 = R 1 200,00
4.1.4 Who is sponsoring the club and what is the monthly amount? Tristar Superette R 3 100,00 2

4.1.5 According to a local newspaper the five-year sponsorship from a local business is more than R 150 000. Verify. 4

5 yrs x 12 = 60 mnths x R 3 100 p.m = R 186 000 Yes

4.1.6 The cash deposit on 03/03/2017 was the membership fees of five new members. Determine the membership
fee of the club per individual. R 500 ÷ 5 members = R 100 / member 3

4.1.7 Calculate the total bank charges. R 44,20 + R 55,00 + R 33,00 + R 116,26 + R 8,00 = R 256,46 2

4.1.8 Explain why the total bank charges will be a variable amount. 2
It varies because of different deposit amounts
4.1.9 Another local business is also interested in sponsoring the club. They want to contribute to the development
programme of the club. The total sponsorship for three years will be R 54 000. Calculate the monthly contribution. 4
3 yrs x 12 = 36 mnths >>> R 54 000 ÷ 36 = R 1 500

4.2 An extract of a cheque account is presented below:

DATE DESCRIPTION AMOUNT BALANCE

10 Feb OPENING BALANCE 1 855,52 Cr
15 Feb Deposit: Y Schoeman 1 500,00 Cr
20 Feb Talksure 350,50 3 005,02 Cr
 18
22 Feb Best Buys 1 246,85 1 758,17 Cr
28 Feb # Monthly Account Fee 100,00 1 658,17 Cr
CLOSING BALANCE 1 658,17 Cr

4.2.1 What is the opening balance of the cheque account? 1

4.2.2 Calculate the balance of the cheque account on the 15th February. 2

4.2.3 Calculate the VAT-exclusive amount for the account fee. # VAT Inclusive @ 15% 3

4.3 Below is an extract from one of Mrs Petersen's bank statements.

4.3.1 What was the opening balance of the bank statement? 1

4.3.2 What was the reference of Talkbusy on 26 March? 1

4.3.3 On 22 March there was an amount of R 8 567,00 Cr from RECONNECT.

What is the meaning of the 'Cr' after the amount? 1

4.3.4 Calculate the monthly account fee on 31 March ( Value A ) 1

4.3.5 What is the balance of the statement on 3 April? ( Value B ) 1

DATE DESCRIPTION REFERENCE AMOUNT BALANCE

14 March Opening balance 941,32 Cr
15 March Biolife 180241 86,80 854,52 CR
15 March Biolife 180241 340,46 514,06 Cr
22 March RENCONNECT S245136 8 567,00 Cr 9 081,06 Cr
23 March Nedbank account NA 45128721 6 600,00 2 481,06 Cr
26 March Talkbusy 365TB86 196,00 2 285,06 Cr
29 March Charity 2458714 57,00 2 228,06 Cr
31 March Monthly account fee A 2 147,56 Cr
3 April RENCONNECT S245136 1 176,71 B
7 April Monthly account fee 24,50 946,35 Cr

4.4 Given below is a Home Loan Statement from a Building Society.

4.4.1 What effect does a Debit have on the balance of a Home loan account? 2

4.4.2 What effect does a Credit have on the balance of a Home loan account? 2

4.4.3 What do you think 'System Interest" mean on the Home loan account? 2

4.4.4 Identify the Debit transactions which was less in September than August. State the reason for the difference. 3

4.4.5 What is the amount paid into the Home loan account in August? 2

4.4.6 By estimation, how many years will it take to pay off the Home loan account, at the rate of August payments. 4

4.4.7 Calculate the total Amounts of Debits and Credits. Compare the two. 5

LOAN STATEMENT
Transaction Details Debit Credit Date Balance
Balance brought forward 01 Jul 12 62 288,53
Administration fee 5,83 01 Jul 12 62 294,15
Insurance premium 110,80 01 Jul 12 62 404 96
 19
Autobank transfer 1 000,00 25 Jul 12 61 404,96
Electronic transfer 1 500,00 25 Jul 12 59 904,96
System Interest debit 795,54 01 Aug 12 60 700,50
Administration fee 5,63 01 Aug 12 60 706,13
Insurance premium 110,80 01 Aug 12 60 816,93
Electronic transfer 1 500,00 27 Aug 12 59 316,93
Autobank transfer 900,00 27 Aug 12 58 416,93
System Interest debit 787,40 01 Sept 12 59 204,33

4.5 Study the CREDIT CARD Statement:

ABC CREDIT
Primary account number 4301 3256 2103 7814
Statement date 28 September 2017
Payment due date 22 October 2017
Total amount owing R 4 896,78
Minimum payment due R245,00
Overdue amount R0
Cash back this month R0
Cash back last 12 months R0
Credit limit R 6 500,00
ACCOUNT SUMMARY AMOUNT
Opening balance R 1 225,64
Available balance R 1 182,00
Purchases R 12 122,15
Interest R 0,01 Cr
Fees R 49,00
Payment received R 8 500,00 Cr
Closing balance R 4 896,78
⑦ 4.5.1 What is the opening balance of the statement? R 1 225,64 1

4.5.2 What is the closing balance of the statement? R 4 896,78 1

4.5.3 What is the minimum payment due and by when should it be paid? R 245,00 22 Oct 2017 2
4.5.4 How is a credit amount indicated on this statement? Cr 1

4.5.5 If you use your credit card to make an international withdrawal, the following fees are applicable:

Flat fee of R 60, plus R 1,85 for every R 100 withdrawn.

Calculate the fee that you should pay if you make an international withdrawal of R 1 500,00 4

Flat fee means you pay it irrespective of the amount

Every R 100 withdrawn: Calculate how many R 100's there are in R 1 500

>> R 1 500 ÷ R 100 = 15 times >>> R 60 + ( R 1,85 x 15 ) >>> R 60 + R 27,75 = R 87,75

 20

4.6 Given below is a Credit card statement of Mr Themba Funny.

CREDIT CARD STATEMENT

Mr T Funny Credit Card No.: 495289445
226 Mupudu Street Kimberley 8345 Branch code: 54795
Statement date: 30/03/2019 Payment due date: 15/04/2019
DATE Transaction Details DEBITS ( R ) CREDITS ( R )
Amount due from last month R 257,20
This month
02/03/2019 Checkers R 371,10
05/03/2019 Kentucky Fried Chicken R 170,40
09/03/2019 Links Pharmacy R 105,60
13/03/2019 Woolworths R 311,30
13/03/2019 JET R 170,00
13/03/2019 Checkers R 116,54
19/03/2019 Petrol R 400,00
23/03/2019 MTN Cellular-Airtime R 300,00
Card Total R 1 944,94
28/03/2019 Payment Received R 800,00
Amount due R 1 402,14
Interest rate on money owed: 21%

4.6.1 In which month did the purchases, shown on the statement, occur? 1

4.6.2 How much money did Mr Funny spend on 13/03/2019? 2

4.6.3 How much money did Mr Funny owe from purchases on his credit card from the previous month? 1

4.6.4 Did Mr Funny make any payments into his credit card account during the month of his Credit Statement. Explain. 2

4.6.5 Show how the " Amount Due " value of R 1 402,14 was calculated. 2

5. FINANCIAL DOCUMENTS
5.1 The invoice of Mr Jaco Pandle from the same company that is providing the landline contracts for which Sibusiso has applied.

TAX INVOICE
J Pandle Invoice date: 05/07/2015
PO Box 522 Cape Town Account no: 21389765
 21
Invoice no: 675423989 Service ref: 021-9304251
ACCOUNT SUMMARY
Previous invoice Balance brought forward R 513,80
Payment(s)
Receipt ref: Description
6122030 16 June 2015 Payment received R 513,80
Opening balance R 0,00
Charges for July 2015:
Subscription fee: R 299,00
Usage: R 120,00
Subtotal ( Excluding VAT @ 15% ) R 419,00
VAT @ 15% A
Total due ( Due date: 27 July 2015 ) B

5.1.1 On which date was the June account paid? 16 June 2015

5.1.2 To what does 'usage' refer in the account? Calls made from the phone
5.1.3 Calculate the total due by determining the values A and B.
VAT: R 419,00 x 15% = R 62,85 Total: R 419,00 + R 62,85 = R 481,85
5.1.4 What will the balance ( amount) brought forward be for August 2015? R 481,85
5.1.5 What was the usage amount for June? Payment received for June - Subscription fee
R 513,80 - R 299,00 = R 214,80

5.2 Clark wants to upgrade the theatre system of his entertainment area. He received a quote from Maxisound Suppliers.

MAXISOUND SUPPLIERS
96 Peach Road Tel.: 001 928 8828
BENONI E-mail: joh@bluesound.co.za
Customer: Watson Clark QUOTE NUMBER: Q12678
35 Pine Street QUOTE DATE: 01/11/2018
6 250 BENONI SALES PERSON: Ben Stokes
ALL QUOTES ARE VALID FOR 14 DAYS
PRODUCT ITEM CODE QUANTITY UNIT PRICE TOTAL
JVC Bluetooth Speaker JVC BS12 1 1 899,00 1 899,00
JVC Surround sound Speaker JVC SSS45 6 115,00
Sony Stereo Amplifier DH130 1 3 299,00 3 299,00
5 888,00
All prices are VAT Inclusive ( 15% )
A discount of 5% is given on all cash payments
5.2.1 On which date was the quote issued? 1

5.2.2 Name the sales person who issued the quote. 1

5.2.3 What is the item code for the Sony Stereo Amplifier. 1

5.2.4 Calculate the VAT Exclusive amount of the JVC Bluetooth Speaker. 3

5.2.5 Show how the total of JVC Surround Sound Speakers was calculated. 2
 22

5.2.6 Would the quote still be valid on 1/12/2018? Justify your answer. 2

5.3 Study the following document and answer the questions:

ROLL-UP DOORS Invoice

235 Safety Rd Invoice: 23598 Date: 2021/02/28
SECURITY TOWN 9999
BILL TO: Customer ID: 852 Terms: Due upon
Mrs G Simms Receipt
1234 Festive Street
SECURITY TOWN, 9999 Cell: 008 005 0002
DESCRIPTION QTY UNIT PRICE AMOUNT
Roll-up Garage Door 1 R 6 280,00 R 6 280,00
Electric Motor 1 R 1 005,00 R1 005,00
Installation fee 3,5 hrs R 1 312,50
SUBTOTAL R 8 597,50
Thank you! TAX RATE 15%
TAX
TOTAL

5.3.1 Who was the client? 1

5.3.2 What will the total amount of the electric motor be ( A )? 1

5.3.3 Calculate the installation fee per hour. ( B ) 2

5.3.4 Calculate the tax amount. ( C ) 3

5.3.5 What will the total amount due be ( D )? 2

5.3.6 What does the terms: Due on receipt , means? 1

5.4 Study the following document and answer the questions:

SAFE GATES Invoice
81 Zero Crime Street
GUNSLINGER TOWN 6321 Invoice: Date:
Phone: 086 125 9865 23598 2021/02/28
BILL TO: Customer ID: Terms:
MA Hombro 852 Due upon Receipt
19A Goslin Road Gunslinger Town 6321 Cell: 008 005 0002
DESCRIPTION QTY UNIT PRICE AMOUNT
Supply new gate 1 R 2 580,00 R 2 580,00
Labour: 5 hrs @ R 350/h 5 R 350,00
New client discount ( R 50,00 ) ( R 50,00 )
SUBTOTAL R 4 280,00
Thank you! TAX RATE 15%
TAX
TOTAL
5.4.1 What type of financial document is represented. 1

5.4.2 Name the company that provided this document. 1

 23

5.4.3 Who is the recipient of this document? 1

5.4.4 Calculate the amount for labour ( A ) 2

5.4.5 Calculate the tax amount ( B ) 3

5.4.6 Calculate the total amount due ( C ) 2

5.5 The SRC decided to buy 10 tents for a camping trip for 20 students.

INVOICE
GAME
TO: Mr Akram
28 Bumblebee Road INVOICE NUMBER: INV 623
Campville
9412 DATE OF ISSUE: 5 June 2020
DESCRIPTION UNIT PRICE, QUANTITY AMOUNT

Campmaster Dome Tent R 500 ( VAT Excl.) 10 R5 000

Plus 15% VAT A

Total Amount B

5.5.1 What is the name of the company that issued the invoice? 1

5.5.2 What is the invoice number? 1

5.5.3 On which date was the invoice issued? 1

5.5.4 Calculate the amount of VAT that has to be added on the invoice. The value of A. 2

5.5.5 Calculate the total amount that has to be paid on the invoice. The value of B. 2

5.5.6 The SRC withdrew R 3 000 at an ATM to pay for the food for the camping trip. The bank charges are calculated
by the formula: R 8 + R 1,85 per R 100.
Calculate the bank charges for the transaction. 3

5.6 The college decided to buy 10 tents for the weekend camping at the holiday resort.

INVOICE
CAMPER'S WAREHOUSE
TO: Mr Albany
28 Bumblebee Road INVOICE NUMBER: Inv 797
Campville
9412 DATE OF ISSUE: 20 April 2022
DESCRIPTION UNIT PRICE, QUANTITY AMOUNT
R 2 199
Arpenaz 4-person tent 10 A
( VAT Excl.)
Plus 15% VAT B
Total Amount C
5.6.1 What is the invoice number? 1

5.6.2 Calculate the amount of the total number of tents purchased ( VAT Excl. ) 2

5.6.3 Calculate the amount of VAT that has to be added on the invoice. 2

5.6.4 Calculate the total amount that has to be paid on the invoice. 2
 24
5.6.5 The students withdrew R 5 000 at an ATM to pay for the food for the camping trip. The bank charges
are calculated as follows: Formula: R 8 + R 3,05 per R 500.
Calculate the bank charges for the transaction. 3

5.7 Study the financial document below and answer the questions.

Steers / Fishaways
137 Main Road Hermanus
Tel. 028 313 1314

Invoice type Counter: Take-away Inv#: 12546

Date: 23 July 2019 Time: 20:38
Cashier: Ben Stevens
2x Cheesy Chips Large @ R 30,90 R 61,80
2x Xlarge Bacon Bits @ R 14,90 R 29,80
1x Iron Brew 500 ml R 17,90
1x Cream Soda R 17,90
TOTAL: R 127,40
Total Excluding VAT 15% A
VAT amount B
Amount paid R 200,00
Change Due 72,60

5.7.1 What type of financial document is shown above? 1

5.7.2 Who was the cashier for this transaction? 1

5.7.3 The TOTAL R 127,40 is VAT Inclusive Calculate A, the total excluding VAT. 3

5.7.4 Calculate B, the VAT amount. 2

5.7.5 Calculate C, the change due to the customer. 2

5.8 Study the till slip below:

Supermarket
Protex soap 150g 8,99
MAQ Washing powder 2kg 15,99
Potatoes 1kg *12,99
Beef Brisket/Short rib 2 kg 159,98
ALBANY Bread 700g *13,99
Light Bulb 250W 6,59
Cabbage 15,99
Spekko Rice 2 kg *21,59
Cadbury Chocolate 80g 11,57
TOTAL 267,68
CASH ROUNDING -0,08
CASH 270,00
CHANGE 2,40
15% VAT 28,58
05/02/2020 10:47 CASHIER: Tsakani
Customer helpline:0860 137 3689
5.8.1 What was the date and time of the purchase? 2
 25

5.8.2 What does the cash rounding value of -R0,08 shown on the slip, mean? 2

5.8.3 The items marked with an asterisk (*) are exempt fromVAT charges.
Show that the total amount in rand of the items that are VAT inclusive is R 219,11. 2

5.9 Study the till slip below:

QUICK & SAVE

34 Main Road, Nelspruit
Sunlight soap 150g 8,99
French Polony 700g 16,99
Tomatoes 1 kg 15,99 less discount 3,24 * 12,75
Surf Hand Washing Powder 2 kg 89,99
Sunbake Bread 700 g * 14,99
Frozen Mixed chicken portions 4 kg 129,99
Sensodyne Fresh Mint 75 mℓ 15,99
Super Maize Meal 4 kg * 79,55
TOTAL 369,24
CASH ROUNDING -0,04
CASH 380
CHANGE 10,80
15% VAT 34,17
12/02/2020 11:38
CASHIER: Nhlamulo Chauke
Customer helpline: 0860 137 3689
ENJOY YOUR DAY

5.9.1 How much discount was given on tomatoes? 1

5.9.2 The till slip shows that the rounding value was R 0,04. Explain what this means. 3

5.9.3 If the items marked with stars are exempt from VAT charges, work out the total of the items that include VAT. 2

5.9.4 Show how the 15% VAT value of R 34,17 was determined by using the method:
Price excluding VAT = Price Including VAT ÷ 1,15 4

5.10 The table shows a till slip for Mrs Ngoma from one of the shops:

FAMILY STORE
Bath soap, 120 g 10,99
Ham slices, 250g 23,85
Apples 1,5 kg, discount R 3,75 # 15,78
Qmax Washing powder 2 kg 95,24
Brown bread, 700g # 13,63
Frozen Fish pieces, 3 kg 78,54
Colgate Cool mint, 75 ml 21,47
White Star Maize Meal 2,5 kg # 53,58
TOTAL 313,08
CASH ROUNDING -0,08
CASH 450,00
CHANGE 137,00
VAT 15% 30,01
 26
24/6/21 12:54 CASHIER: Nomsa Khumalo
5.10.1 What does the sign " # " means on the till slip? 2

5.10.2 How much was the apples before the discount? 2

5.10.3 If the items marked without the " # ", are items which include VAT, work out the total of the items with the # - sign. 2

5.10.4 Show how the VAT of 15% to the value of R 30,01 was determined 4

5.11 Danny West went to a branch of his bank on 25 June 2019. He deposited R 1 400 cash into his Savings account.
His savings account number is 1652 1870.
5.11.1 Use the information above to complete the savings deposit slip. 5

SAVINGS DEPOSIT
CASH
Date CHECKS
Name
Account number

Subtotal
TOTAL

5.11.2 The bank charges Danny a fee for depositing money at the branch.
Formula: R 8,07 + R 1,82 per R 100 or part therof Calculate the deposit fee for R 1 400. 3

6. TABLES/ TARIFFS
6.1 Mrs Ricardo needs to buy a new stove. The price of the stove is R 3 489 ( VAT Incl. ) cash.
⑧ On hire-purchase you pay a deposit and then R 189 per month over 30 months

The advert reads as follows: Defy Thermofan stove

81 ℓ Capacity
Deposit: R 350 Thermofan
Instalments: Warmer Drawer
R 189 x 30 months 2 Hi-Speed Plates
Total payable: R 5 670 Model DSS 497
6.1.1 What is the capacity of the stove? 81 litre 1

6.1.2 Calculate the cash price of the stove, excluding VAT. R 3 489 x 100 ÷ 115 = R 3 033,91 3

6.1.3 How much is the deposit to be paid for the stove on hire-purchase? R 350 ( given ) 1

6.1.4 Calculate the total amount that Mrs Ricardo would pay for the stove if she chooses the Hire purchase option:
chooses the hire purchase option. Deposit + ( 30 mnths x R 189 p.m ) 3

>>> R 350 + ( 30 mnths x R 189 ) >>> R 350 + R 5 670 = R 6 020

6.2 Miss Skyy want to buy a new side-by-side fridge to replace her old one. She saw a pamphlet advertising a fridge.
According to the pamphlet there are THREE options, namely A, B and C.

WALALA WASALA FURNITURE

525 l Side-by side fridge/ freezer
 27

NORMAL PRICE: R 11 000

Option A: Cash
15% cash discount

Option B: Laybuy
10% deposit + 12 x R 860

Option C: Credit / Hire purchase

Deposit 10% + R 619 x 30 months

6.2.1 If Miss Skyy chooses to pay cash (Option A), how much will she pay. Show workings. 4

6.2.2 If she chooses to buy on credit or hire purchase ( Option C ), how much will she pay in total. 4

6.2.3 Calculate how much she will pay if she chooses Option B. Show all workings. 4

6.2.4 How much more will she pay if she chooses Option C instead of Option A? 2

6.2.5 Suggest TWO possible reasons why you think furniture shops or banks charge interest if one buys on credit. 4

6.3 Denzil wants to buy a new laptop to teach online lectures. He saw a pamplet advertising a Laptop.
According to the pamphlet he has THREE options to purchase the laptop.

TRUSTWORTHY FURNITURES
HP LAPTOP
Normal Price: R 6 000

Option A: Cash
30% Cash Discount

Option B: Layby
10% deposit + 12 x R 500

Option C: Credit / Hire purchase

Deposit 10% + R 500 x 18 months

6.3.1 How much will Denzil pay if he chooses option A? 4

6.3.2 How much will Denzil pay I total if he chooses option C? 4

6.3.3 How much will Denzil pay if he chooses option B? 4

6.3.4 How much more does he have to pay if he chooses Option C instead of Option A? 2

6.3.5 Give TWO reasons why customers buy items on credit or hire purchase instead of cash? 4

6.4 Vodacom is introducing a new way of billing calls. Below is a breakdown of how this billing system will work.

⑨ ANYTIME PER SECOND

Pay a low 2c per second all day to any network
Pay only R1,20 per minute billed per second
OM
AC

There are no 'peak' or 'off-peak' rates

D
VO

*** Get FREE night shift: 60 minutes free calls between midnight
and 5 am for 7 days with every recharge of R 12 or more

6.4.1 How much would a person pay per seond for a call? 2c 1

6.4.2 Is it correct to claim that a call is charged at R 1,20 per minute if you charge 2c per second? Show calculations. 2
 28
60 seconds ( 1 min ) x R 0,02 ( 2c ) = R 1,20
6.4.3 How much would you pay for a call that lasts 3 minutes and 20 seconds? 3

3 min x 60 = 180 seconds + 20 seconds = 200 seconds >> 200 sec x R 0,02 = R 4,00
6.4.4 Is there a difference in rates for 'peak' and 'off-peak' calls? 1

No. It indicates there are no peak or off-peak rates

6.4.5 The price of a new cell phone is R 2 600 ( excluding VAT of 15% ) Calculate the price with 15% VAT included. 4

R 2 600 x 15% = R 390 >>> R 2 600 + R 390 = R 2 990

6.5 The table below shows the adjusted bank costs for Budget Bank from 2018 to 2019 for their Diamond accountholders.

STANDARD BANK
% Change from
Budget Bank Elite account 2016 Fees 2017 Fees 2016 to 2017

Account fee ( PAYT ) R 55,00 R 55,00 0%

Debit order - External R 13,10 R 16,00 + 22,1%
Debit order - Internal R 4,20 R 4,50 + 7,1%

Deposit - ATM R 4,00 + 1,3% of value R 1,00 per R 100 -14,3%

Withdrawal - POS R 5,00 R 1,80 per R 100 - 64,0%

R 6,70 + R 4,00 + R 6,70 + R 1,80
Withdrawal - Other - 6%
1,2% of value per R 100

Withdrawal - Native R 4,00 + 1,2% of value R 1,80 per R 100 - 10%

6.5.1 What was the percentage change for the ATM deposit from 2016 to 2017? 1

6.5.2 What was the bank fee for a debit order ( internal) in 2016. 1

6.5.3 How much did it cost to deposit R 1 500 at an ATM in 2016? Show ALL calculations 4

6.5.4 What does the negative sign ( - ) mean in the % change from 2016 to 2017. 1

6.5.5 In general, do you think the bank increased or decreased their total bank cost from 2016 to 2017? 1

6.6 Study the information below regarding landline call tariffs:

Minimum charge in Minimum charge in Charge per second in Charge per second in
Rand ( Excl. Rand ( Incl. Rand ( Excl. VAT Rand ( Incl. VAT
Automatic calls VAT ) VAT ) ) )
Standard time: Monday to Friday 07:00 - 19:00
Local (0
0,690 0,794 A 0,00744
- 50 km )
Long distance
0,690 0,794 0,00962 0,01106
( > 50 km )
Minimum charge in Minimum charge in
Charge per second in Charge per second in
Rand ( Excl. Rand ( Incl.
Rand ( Excl. VAT ) Rand ( Incl. VAT )
VAT ) VAT )
Automatic calls
 29
Automatic calls
Callmore time: Monday to Friday 19:00 - 07:00 and Friday
19:00 - Monday 07:00
Local (0
0,690 0,794 0,00314 0,00361
- 50 km )
Long distance
0,690 0,794 0,00481 0,00553
( > 50 km )

6.6.1 On which days of the week and during what times of the day do standard time tariffs apply? 2

6.6.2 Is it cheaper to make a local call during Standard time or Callmore time? Justify your answer by referring to
the values in the table. 3

6.6.3 What is the minimum charge ( including VAT )for a long-distance call made during Callmore time. 1

6.6.4 What does minimum charge per call mean? 1

6.6.5 VAT is South Africa is 15%. Calculate the value of A, the charge per second ( VAT Excl) for a local call during
standard time, correct to 5 decimals. 5

6.6.6 Calculate the cost ( including VAT ) of a local call made on a Thursday at 8:45 am, lasting 7 minutes 18 seconds. 3

6.7 The following table shows the green fees for Port Sea Country Club for 2021:

PORT SEA COUNTRY CLUB - Green Fees

18 holes 9 holes
Friendly Fee Out of Season 275 200
Monday & Tuesday Special Rate 240 180
Veterans, Idlers ( Game only ) Members 130 130
Veterans, Idlers ( Game only ) Virtual Members 150 150
Veterans, Idlers ( Game only ) Non-members 160 160
Nomads, Albatros, Sages ( Monthly booked ) 210 175
Sages - Senior ladies ( Casual games ) 260 165
Nomads ( Casual games ) 260 180
Business Day - GF 200 350 -
Wednesday Comp Fee R 25 + R 5 2/c 30 -
Saturday Comp Fee R 35 + R 5 2/c 40 -

6.7.1 How much will it cost Out of Season, to play 18 holes? 1

6.7.2 What is the difference ( Rand value ) between the Senior ladies 18 holes and 9 holes? 2

6.7.3 What will the cost be if 4 Veterans, Non-members play 18 holes? 3

6.7.4 In order to book place at the country club, people have to call beforehand
A cell phone provider offers the following rates: *** Off-peak landline calls R 1,06 / minute
*** Peak landline calls R 2,56 / minute
a. Calculate the cost of a call at 09:53 on a Monday morning, if the call lasts 3 minutes 30 seconds. 4

6.8 The table below shows various bus fare options for a route in a city:

Single trip bus ticket 12-Day trip bus ticket 14-day trip bus ticket
Options
R8,90 R68,40 R79,80

6.8.1 Calculate cost of 12 single bus tickets. 3

6.8.2 Calculate the relative cost per trip, if you buy a 12-Day trip bus ticket and use the ticket 12 times. 3
 30

6.8.3 Is it cheaper to buy single trip bus tickets for 9 trips or to buy the 14-day trip bus ticket for 9 trips? 3

6.9 Study the following rates for different cellular phone providers.
YODACAM MTCELL CELL4U
Tariff plans Anytime per second Pay per second 66 c on prepaid

Length of a call ( minutes )

0,5 R0,62 R0,50 R0,33
1 R1,23 R0,99 R0,66

6.9.1 Roderick is considering switching from his current cellular provider to save on his phone account. He is currently a
YODACAM subscriber and uses approximately 200 minutes of talk time per month.
Calculate how much Roderick would pay for 200 minutes on his YODACAM contract. 3

6.9.2 Calculate the cost for 200 minutes on CELL4U and determine whether he would save if he switched to CELL4U. 4

6.10 Roderick sees an advert for a watch:

SALE
R 1 100 ( VAT excl. )
While stock lasts. Hurry!!!

6.10.1 What does VAT excl. mean? 1

6.10.2 Calculate the VAT-inclusive price of the watch. VAT is 15%. 3

6.10.3 Roderick wants to pay for the watch by depositing money at the ATM. The bank costs for such a transaction is
calculated as follows: R 4,50 + R 1,50 per R 100 or part thereof.
Calculate what the bank costs would be for this transaction. 3

6.10.4 Roderick could possibly make an EFT payment to pay for the watch. What does EFT stand for? 1

6.10.5 Would a deposit at the ATM or an EFT payment be more suitable to pay for the watch? Substantiate the answer. 2

7. COLUMNS A & B
7.1 Choose a definition in COLUMN B that matches a financial term in COLUMN A. Write only the letter A - F next to nrs.

COLUMN A COLUMN B

A fixed regular payment earned at work or services , typically paid on a

7.1.1 Income A
daily or weekly basis

7.1.2 Salary B The total amount of money that a government or person spends.

The amount of money received during a period of time in exchange for

7.1.3 Wage C
labour or services.
A fixed regular payment paid on a monthly basis but often expressed as
7.1.4 Interest D
an annual sum, made by an employer.

7.1.5 Expenditure E Money paid regularly at a particular rate for the use of money lent.
5
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7.2
Choose a definition in COLUMN B that matches a financial term in COLUMN A. Write only the letter A - F next to nrs.

COLUMN A COLUMN B
7.2.1 Credit A Money earned or received

7.2.2 Expenses B Money paid into an account

A summary of transaction which have occurred over a given period of

7.2.3 Income C
time on a bank account.

7.2.4 Debit D All the things you spend money on

7.2.5 Balance E Money withdrawn from an account

7.2.6 Bank statement F Money available in an account 6

8. FINANCIAL TRANSACTIONS
8.1 Regina hired a car for 2 days. She travelled a total distance of 545 kilometres.
Calculate how much it will cost her to hire a car. 4

** R 465 per day ** Aircon.: Yes ** Seats: 4

** 200 kms free per day, thereafter R 3,85/km ** Manual: Yes ** Luggage: 2 big bags
2 days x R 465 = R 930
545 km - 200 km free = 345 km x R 3,85 / km >>> R 1 328,25
Total cost: R 930 + R 1 328,25 = R 2 258,25

8.2 Don has been driving a second hand car for the past 3 years. Over the three years he managed to save 15% for a
deposit on a brand new car. The price of the car is R 280 000.
8.2.1 Calculate the amount Don saved. 3

8.2.2 Dons' Repayment per month is R 5 460,00. If this amount is 35% of his total expenses, calculate his total expenses.
3

8.3 The cell phone service provider offers the following rates:
*** Peak landline calls R 2,85 per minute
*** Off-peak landline calls R 1,12 per minute
8.3.1 Calculate the cost of a call to the Golf Club at 15:54 on a weekday if the call for 6 minutes. 3

8.3.2 Why do you think there is a difference in tariff between peak and off-peak calls? 1

8.4 The table below shows an advertisement of cars from the car dealer.

Get the deal suits your lifestyle

CASH OPTION CREDIT OPTION
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Final Balloon
Number of Monthly Instal- Total Instal-
Model Price VAT included 10% Deposit Payment
Instalments ments * ments
**
Mazda 2 R220 000 R22 000 60 R2 429 R63 700 R145 740

Hyandai Accent R315 500 A 60 R3 325 R85 540 B

* Initiation fee and monthly administration fee includede

** Amount owing after making all monthly payments
VAT - Value Added Tax of 15%
8.4.1 Show by means of calculations that the deposit required is 10% of the cash price. 3

8.4.2 Determine the values of A and B. Show ALL calculations. 6

8.4.3 Calculate the total cost of Mazda 2 if purchased through credit option.
Total cost = Deposit + Total Instalments + Final balloon payment 4

8.4.4 What is the price to buy the Mazda 2 through cash option? 1

8.4.5 How much more does it cost to buy Mazda 2 through the credit option than the cash option? 3

8.4.6 Use any method to calculate the price of Hyandai Accent without VAT if VAT was charged at 15% ( NO dedc. ) 4

8.4.7 Name one negative impact/result of the balloon instalment at the end of the repayment period. 2

8.5 The table below shows an advertisement of cars from the car dealer. Study the advertisement below:

BEST CARS FOR SPECIAL PEOPLE

CASH OPTION CREDIT OPTION
Final Balloon
Number of Monthly Total
Model Price VAT included 10% Deposit Payment
Instalments Instalments * Instalments
**
Mazda CX-5 R550 000 A 72 R5 995 R84 860 R431 640
Volvo R615 500 R61 550 72 R6 705 R107 220 B
* Initiation fee and monthly administration fee included
** Amount owing after making all monthly payments
VAT - Value Added Tax of 15%

8.5.1 Show by means of any method how 10% of R 615 000 for a deposit was calculated on the Volvo. 3

8.5.2 Calculate the values of A and B. 6

8.5.3 What was the cash price of the Volvo? 1

8.5.4 Calculate the Total Cost of the Volvo if purchased through the Credit Option. 4

Total Cost = Deposit + Total Instalments + Final balloon payment

8.5.5 What is the total difference in price of the Volvo between the Cash Option and the Credit option? 3

8.5.6 Calculate the VAT price of the Mazda CX-5, if Vat was included in the Cash price. ( VAT 15%.) No dec. 4

8.5.7 The balloon instament at the end of the payment period, can have a negative impact on the buyer. Explain. 2
 33

8.6 The SRC wants to hire vehicles to transport 20 students to and from a camping site. They will hire the vehicles for
one day only. The college will provide trailers to transport luggage and food. There are TWO options
( Class A or Class B vehicles) that could be used.
Study the options and choose the cheaper transport option for the camping trip. Show ALL calculations. 7

Class A Vehicles: 7- seater R 590 per day

Class B Vehicles: 14- seater R 1 088 per day

8.7 The students wants to hire vehicles to transport the students to and from the holiday resort. They hire the vehicles
for the weekend. The college will provide trailers to transport luggage and food. There are TWO options to choose from:
( Class A vehicles and Class B vehicles )
Study the options below and choose the cheaper transport option for the weekend trip. Show all calculations. 7

Class A Vehicles Class B Vehicles

23-seater 14-seater

R1 890
R1 350