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PALMRIDGE COMBINED SCHOOL

Economic management sciences

Term 2
Grade 7__
Name: _________________________
Parents contact: _____________________________

Educator: MRS. BEFOLE

WEBSITE: Palmridge.weebly.com
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TABLE OF CONTENT

PAGES TOPIC ACTIVIES

__ REVISION TERM 1 4

3 - 10 ACCOUNTING CONCEPTS 12

11 - 21 INCOME AND EXPENSES 11

22- 27 BUDGETS 6

__ RIVISION 4

TERM 2 - FORMAL ASSESSMENT

FORM OF ASSESSMENT TOTAL MARKS DATE

AND TEST SCOPE
Case study 30 26 MAY
(ACCOUNTING CONSPETS AND
INCOME AND EXPENSE)
Mid-year Exam 75 23 JUNE
TERM 1 WORK, (ACCOUNTING
CONSPETS AND INCOME AND
EXPENSE)
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Activity 1 Week 1 19 April 2017

1. Explain what the term Capital means.

2. In your excise books Paste 5 different pictures of capital and explain how can each
used to start a business

Activity 2 Week 1 20 April 2017

1. Explain what the term Asset means.

2. Mention two types of asset and explain them

1.

2.

3. In your excise paste 5 different pictures of assets and explain how the business use
them

Activity 3 Week 2 24 April 2017

Calculating assets

David is a Grade 7 learner. He would like to draw up a list to see how wealthy he is.
He has looked around his bedroom to decide what belongs to him. His parents told
him that certain assets are his, such as his bed, table and chair. He also owns other
things, or assets, which were either birthday presents or items bought with his pocket
money. These are the items he now has in his possession:

Furniture in his room: R 2 300 Radio with CD player:

R550
Cash in his wallet: R50 Savings account at the bank: R625
Clothes: R3 000
Books: R200
Savings account at the bank: R625
Two neighbours in his street owe him R60 each for sweeping their yards.

a) Prepare a list to calculate Davids total assets.

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b) Use the list created to classify each item as a fixed or a current asset

Activity 4 Week 2 April 2017

1. Explain what the term liability means.

2. Mention two types of liabilities and explain them

1.

2.
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Activity 5 Week 2 April 2017

Calculating liabilities:
1. Make a list and calculate Davids total liabilities.
a. He borrowed R20 from his sister to buy airtime. He owes his father R35, which
he has to pay back by the end of the month.

b. He borrowed R2 400 from his uncle to buy his bicycle. David pays his uncle back
R100 per month over two years.

2. Use the list of liabilities to classify each item as either a current liability or a
noncurrent liability. Give a reason why you have classified each item the way you
have. Draw this table in your book.

Current Liability Non-current liability

3. Are the following assets or liabilities? Complete your answer in a table. Draw the
table in your book.

A building, a telephone account, a telephone, rental for a storeroom, money in a savings

account.
Assets Liabilities
6|Page

Activity 6 Week 2 April 2017

1. Explain difference between income and expense

2. Name three ways in which one can make income

a) _
b)
c)
3. Name and explain two examples of expenses and give example for each.
a) ________

b) ________
________

Activity 7 Week 3 April 2017

1. Calculate profit or loss in the third column. State in the fourth column
Whether the difference is a profit or loss.

Nr Income Expenses Difference Profit or loss

E.g. R300 R100 R200 Profit
1 R10 200 R6 400
2 R5 200 R7 800
3 R124 200 R100 300
4 R23 400 R30 000
5 R46 200 R18 200

2. Speedy Electricians do electrical work in the community. Their services for

the year brought an income of R98 400.
The business paid out R67 500 for material costs, R5 200 for telephone
and R10 200 for other expenses.
Calculate if the business made a profit or loss

Activity 8 Week 3 April 2017

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Rewrite the following sentences in your book, and fill in the answers, using the words
listed below.
1. ___________ _________ are loans which are payable over a number of years.
2. Goods that we own are called our ______________.
3. The interest or share that an owner has in his business is called _______ _______.
4. __________ is the money the business earns.
5. Money that is owed to creditors is a _________ _________ for the business.
6. When money is spent on wages, it is an ___________ for the business.
7. The money the owner uses to start a business is called ______________.
8. Vehicles and equipment are examples of ____________ .
9. ___________ __________ are only temporary of nature and can be converted into
cash quite easily, usually within a short period of time.

10. The aim of any business is to make a profit, this is referred to as the ______ _____.
11. A loss can be described as a loss of money or a decrease in _______ ________.

owners equity income capital current assets expense

Long-term or non-current liability assets debt fixed assets
financial value current liability profit motive

Activity 9 Week 3 April 2017

Use the Word Bank to answer the following questions:

WORD BANK:

Assets Cash float Mortgage bond

Capital Bank overdraft Vehicle

Debtor Creditor

1. Possessions of the business._____________

2. Money that the owner needs to start a business._____________
3. People that buys on credit from the business, are called____________
4. _______ is an enterprise to whom the business owes money
5. Example of a fixed asset___________________
6. Example of a long-term liability___________________
7. A type of loan from the bank where the bank allows you to draw more money than
you have
in the bank._______________________
8. Small amounts of money that the business keeps in the cash register to give change to
customers._______________________________
Activity 10 Week 3 April 2017
8|Page

1. Instruction: Use the information below to complete the table to show the total
assets, liabilities, equity, income and expenses. Use only amounts.
Owner, T. Limekhaya, started a small photographic business in a shack at the
back of his house. He deposited R25 000 in the current account of the
business. He bought photographic equipment and paid by cheque, R10 000.
He also borrowed R10 000 from ABSA bank to renovate the shack. He rented
out an extra room in the shack to a friend and at the end of the month he
received the rent for the room R500 and he received R2 500 for photos he
developed for customers. His monthly expenses included Water and electricity
R300, Telephone R250, Stationery R150, Processing of photos R600 and
Transport R300.

Assets Liabilities Capital Income Expenses

Total:

2. Instruction: Using the information in no. 1 above, determine the following:

Profit or loss he made at the end of the month.

Activity 11 Week 3 April 2017

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Complete the word puzzle

Down:
1. Money owed to other businesses
2. Systematic recording of transactions
3. income made after expenses has been paid
4. Documented evidence
5. Person who checks if the books of a company are compliant to accounting rules.

Across:
1. Money to start a business
2. monthly financial planning
3. money received for sale of goods or service rendered
4. Income not spent
5. Financial action between two persons.

1 2 1

4 3

5 4 5

Activity 12 Week 3 April 2017

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WORD SEARCH
Complete the following word search. Note answers can only be circled, diagonally,
vertically and horizontally. Use the questions below to complete the word search
L A T I P A C O S T I N G B D E

I N C O M E A B D E O N A C U I

A I D B M X N G A I Q C D E N S

B J O S U P U N T G I T S N O L

I B U L S E N C E Z B R K A B U

L A B I L N A D J T B I G D K G

I N T A S S E T S O W O A F Z B

T K S J N E P I K T A O S O R N

I S U A O S A V I N G S R N E I

E B R A Z E I O P J E N E T T Y

S T R P K D J T N B S G H A H C

1. The start-up money for a business is called? ______________

2. A _______________is any action (buying and selling) where money is involved.
3. The money you spend to buy goods and services provided by someone else.
______________
4 The payment you receive for selling goods and services, providing services or
investing your money._______________
5 A persons financial value at any given point. _____________
6 Money that is left over after all the expenses have been paid. _______________
7 Everything that belongs to a business is called ___________.
8 Personal income is an individuals total annual earnings from all sources such
as_____________.
9 The debts that a person or business has to pay. ___________
10 ___________provide essential services to individuals and businesses.

Activity 1 Week 4 8 May 2017

Explain the difference between personal income and expense

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Personal income and personal expenses

Write down your familys or your own personal income and personal expenses.

1. _
2. _
3. _
4. _
5. _
6.
7.
8.
9.
10.
11.
12.
13.
14. Activity 2

Week 4
10 May 2017
15.
16.
17.
18.
19.
20.
21.
22.
23.
1. _
2. _
3. _
4. _
5. _
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24. Investigating the different ways of earning a personal income

1. In your own words, briefly describe four different ways in which personal income can be
earned.
___________________________________________________________________________
___________________________________________________________________________

2. List 3 differences between a salary and a wage.

25. a) ____________________________________________________

26. b) ____________________________________________________

27. c) ________________________________________________________

3. Mr James Oliver has placed R50 000 in a fixed deposit account with an interest rate of 15%
p.a. Calculate the interest that Mr Oliver will receive each year?

28. _______________________________________________________________
_____________________________________________________________________
__________________

a) How much rent does the owner want?

______________________________________________________________________
b) Who do you think would rent this house? Why?
______________________________________________________________________
c) Why would people choose to rent rather than buy a house?
______________________________________________________________________
d) Give 2 reasons why you think people rent out houses rather than to live in them?
______________________________________________________________________
29. _______________________________________________________________
_______
30. _______________________________________________________________
_______
31.
32.
33.
34.
35.
36.
37.
38.
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39.
40.
41.
42. Activity 3 Week 4 12
May 2017
43.

44. Types of personal income

45.
46. Complete the column by identifying the type of personal income.
47. 48. Description 49. Type of
personal
income
50. 51. A teacher gets R15 000 per month 52.
53. 54. A domestic worker earns R800 55.
per week
56. 57. Your grandmother receives 58.
R1 460 per month from the
government
59. 60. A street hawker receives R300 for 61.
selling fruits at the street corner
62. 63. Your mother bakes cookies and 64.
sell it to the local community
65. 66. Your parents renting out the 67.
outside room of the house for
R500 per month
68. 69. A sales representative earns R500 70.
on every vacuum cleaner they sell
71. 72. Your father receives R2 000 at the 73.
end of the financial year from a
company where he has shares
74. 75. Your aunt receives R1 500 as an 76.
income for investing money at a
bank
77. 78. Your gardener receives R150 per 79.
week for working in the garden
every Saturday
80.
81. Activity 4 Week 4 May
2017
82.
83. Calculating personal income and expenses
84. Read the case study about the Dlamini family and answer the questions that
follow.
85.
86. Mrs Dlamini has a full time job working as a nanny and a housekeeper.
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87. Her wages are R750 per week plus R20 per hour overtime. Mr Dlamini works part time
at a factory for 3 days a week. He earns R250 per shift. Thando does deliveries
88.
89. for the local spaza shop on his bike. He works Monday and Wednesday afternoons
90.
91. and Saturday mornings. They pay him R20 per shift plus tips. Asanda also works at
92. the spaza shop on Wednesday and Saturday mornings. They pay her R30 per
shift.
93.
94.

95.
1) Make a list of the personal income earned by the Dlamini family.
96.

___________________________________________
97.
2) What does overspending mean? Why do people overspend?
List 3 reasons.
98.

______
99.
100.
101.
102.
103.
104.
105.
106.
107.
108.
109.
110.
111.
112.
113.
114.
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115.
116.
117.
118.
119.
120.
121.
122.
123.
124.
125.
126.
127.
128. Activity 5 Week 5 May
2017
129.
130.
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131.
1. Calculate the familys total income for March.
___________________________________________________________________________
___________________________________________________________________________
___________________________
132.
133.
2. Calculate the familys total expenses for March.
134. _______________________________________________________________
_____________________________________________________________________
______________________________________________________
3. Does the Khan family have enough income to cover their expenses for the month?
Show your calculation to support your answer.
135. _______________________________________________________________
_____________________________________________________________________
______________________________________________________
4. In your opinion, are there any expenses that should be:
Increased
Decreased
Removed
5. Write a paragraph to explain how the Khan family could increase their monthly income.
What suggestions could you make to the family?
136. Statement of net worth = Asset liability
137. Example 1:
138. 141. 146.
139. Val 142. Value of 147. NET
ue of what you WORT
what OWE H
you 143.
OW 144. Liabilities
N 145.
140. Ass
ets
148. R35 149. R125 000 151. R225
0 000 150. 000
152.
153. Example 2:
154. 157. 160.
155. ASS 158. LIABILT 161. NET
ETS IES WORT
156. (Wh 159. (What we H
at we owe/Debts)
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own)
162. 163. 165.
164. Debts: 166.
167. 169. 171.
168. Inves 170. Bank
tment: Loan: R100
R250 0 000
00
172. 174. 176.
173. Com 175. Vehicle
puters: finance
50 000 25 000
177. 179. 180.
178. Vehic
le
50 000
181. 183. 185.
182. Total: 184. R125 000 186. R225
R 000
350 00
0
187.
188.
189.
190.
191.
192. Alternative Format of a Statement of net worth:
193. 194.

195.
R
196. 198.
197. Assets
199.
350
0
0
0
200. 202.
201. Investment
203.
250
0
0
0
204. 206.
205. Computers
207.
50
0
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0
0
208. 210.
209. Vehicle
211.
50
0
0
0
212. Liabilities 214.
213. (12
5

0
0
0
)
215. 217.
216. Bank loan 100
0
0
0
218. 220.
219. Vehicle Finance 25
0
0
0
221. Net worth 223.
222. 225
0
0
0
224.
225. Activity 6 Week 5 May
2017
226.
1. Define the terms assets and liabilities.
227. _______________________________________________________________
_____________________________________________________________________
______________________________________________________
228.
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1. Savings account R850

2. Clothes, R3000
3. Watch, R275
4. Soccer boots, R440
5. Soccer ball, R145
6. Play station and games, R5450
7. Hi-Fi set, R2000
8. CDs, R300
9. Money owed to the Hi-Fi supplier, R1200 Loan from his father, R850
2. Use the following list, supplied by Mr David Jones, to help him calculate his net worth
229.
230.
231.
232.
1) Categorize the list above into assets and liabilities. Copy the table into your workbooks.
233. 234. R 235. Liabilities 236. R
As
s
e
t
s

237. 238. 239. 240.

241. 242. 243. 244.

245. 246. 247. 248.

249. 250. 251. 252.

253. 254. 255. 256.

257.
2) Calculate the total assets and total liabilities.
__________________________________________________________________________________
__________________________________________________________________________________
______________________
3) Calculate net worth: Assets Liabilities = Net Worth
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258. ___________________________________________________________________________
__________________________________________________________________________________
_____________________________
259. Activity 7 Week 5 May
2017
260.
261. Use the following information to draw up a statement showing the net
worth of Valhalla Hardware. Valhalla Hardware has the following assets.
262. Motor vehicle R 180 000
263. Buildings R 200 000
264. Equipment R 45 000
265. Electric switches R 60 000
266. Transformers R 24 000
267. Gas Heaters R 15 000
268. Grinders R 12 000
269. Valhalla Hardware has borrowed R 190 000 from Nedbank and he
owes Bosch R10 000.
270.
271. Assets: 272.
R
273. Total Assets 274.

275. Motor vehicle 276.

277. Buildings 278.

279. Equipment 280.

281. Electric switches 282.

283. Transformers 284.

285. Gas Heaters 286.

287. Grinders 288.

289. Liabilities: 290.

291. Total Liabilities 292.

293. Bank Loan: Nedbank 294.

295. Bosch 296.

297. Net Worth 298.

299.
300.
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301.
302. Activity 8 Week 6 May
2017
303.
304. Use the first template to prepare Rebeccas statement of net-worth and
second one for Xoliwe
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305.

306.
307.
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308.
309.
310.
311.
312.
313.
314.
315.
316. Xoliwe statement of net worth

317.
318.
319.
320.
321. Activity 9 Week 6 May
2017
322.
323.
1. Explain what the following terms are:
a) Income
_____________________________________________________________________
 24 | P a g e

b) Expenses
____________________________________________________________________
c) Gross income
____________________________________________________________________
d) profit
2. Streaks Ahead is a hairdressing business owned by
Alexis Smith. Calculate whether her business has made a profit or loss for
October.
324.
325.
326.
327.
328. Here is a list of all her income and expenses.
329.
330.Current income 331.
R24

332.Advertising 333.
R

334.Commission 335.
income R

336.Rent paid 337.

R 2

338.Materials to 339.
provide this R 6
service

340.Salaries and 341.

wages R 4

342.Sales of 343.
shampoos R 3

344.Cost of 345.
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shampoos sold R 2

346.Telephone 347.
R

348.Bank charges 349.

R

350.Stationary 351.
R

352.
a) Do you think that Alexis will be happy with the way her business is going and give your
reason
________________________________________________________________________
b) How much income did she make from selling shampoos?
353. _________________________________________________________
_______________
c) Give Alexis two suggestions on how she could increase her profit in her business.

354. _________________________________________________________
__________________________________________________________________
_____________________

355. Activity 10 Week 6 May

2017
356. Explain what savings is
__________________________________________________________
______________
357. Explain four reason why people save
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
____________
358. Activity 11 Week 6 May
2017
359.
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360. Explain in your own words what investment is and give one reason
why people invest their money
361.
362.
363.
364.
365. Activity 1 Week 7 May
2017

366.
367. Explain what a budget is
__________________________________________________________
__________________________________________________________
______________________________________________
368.
1. Calculate profit or loss in the third column. State in the fourth column
369. Whether the difference is a profit or loss.
370.
371. 372. 373. 374. 375.
I E Di Pro
f
i
t

o
r

l
o
s
s
376. 377. 378. 379. 380.
R R R Pro
f
i
t
381. 382. 383. 384. 385.
R R

386. 387. 388. 389. 390.

R R

391. 392. 393. 394. 395.

R R

396. 397. 398. 399. 400.

R R

401. 402. 403. 404. 405.

R R
27 | P a g e

406.
2. Speedy Electricians do electrical work in the community. Their services for
the year brought an income of R98 400.
407. The business paid out R67 500 for material costs, R5 200
for telephone and R10 200 for other expenses.
408. Calculate if the business made a profit or loss
409. _________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
__________________________________________________________
___________________________________
1. What do you understand about the following about a budget:
1.1 a budget must be
realistic_____________________________________________________________
_____
1.2 a budget must be
flexible______________________________________________________________
_____
1.3 a budget can help a person to save money ? explain your answer
____________________________________________________________________

410.
411.
412.
413.
414.
415. Activity 2
Week 7 May 2017
416.
417. Planning a personal budget
418. Look at Donavans budget
419. Income 420. Am 421. Expenses 422. Amo
ount unt
423. Salary 424. R4 425. Rent 426. R1
(after tax) 210 010
427. Weekend 428. R 429. Electricity 430. R
job 514 90
431. 432.
433. Food 434. R1
500
437. Car payments and 438. R1
petrol 020
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441. Account payments 442. R

425
445. Entertainment 446. R
700
449. Clothing 450. R
600
453. Domestic help 454. R
400
455. TOTAL 456. R4 457. TOTAL 458. R5
724 745
459.
1 Explain what you have noticed about
Donavans budget.
2 Is it a balanced budget? Explain why you
think so. 3. Is Donavan spending more or less
than he earns?

4 What would you suggest he could do to manage his money better?

5 What do you think he should stop spending money on? Why?
6 Should he be saving any money?
7 What will happen if he suddenly needs money for an emergency?
8 Re-draw Donavans budget. Draw up an expenses column for Donavan so
that he can support himself with his current income.
9 Explain how Donavan can manage financially with his new budget.

460.
461.
462.
463.
464.
465.
466.
467.
468. Activity 3 Week 7 May
2017
469.
470. Below, is a budget drawn up by Jacob Zuka, a Grade 7 learner, to plan
his monthly spending for the first three months of the year.
471. 472. Ja 473. Feb 474. Ma
29 | P a g e

nuary ruary rch

475.Income/ Receipts of cash 476. 35 477. 350 478. 50
0 0
479.Pocket money 480. 50 481. 50 482. 50
483.Birthday present 484. --- 485. --- 486. 15
0
487.Part time job working in the 488. 30 489. 300 490. 30
garden 0 0
491. 492. 493. 494.
495.Expenses/Cash Payments 496. 33 497. 375 498. 26
5 0
499.Books and magazines 500. 40 501. --- 502. 14
0
503.Clothes 504. 20 505. 275 506. ---
0
507.Entertainment 508. 60 509. 60 510. 75
511.Food and cool drinks 512. 35 513. 40 514. 45
515. 516. 517. 518.
519.Surplus for the month 520. 15 521. (25) 522. 24
0
523.Money at the beginning of 524. 22
525. 235 526. 21
the month 0 0
527.Money at the end of the 528. 23
529. 210 530. 45
month 5 0
531.
1 How much money did Jacob have at the beginning of January?
532. _____________________________________________________________
____________
2 How much money did he have at the end of January?
___________________________________________________________________
______
3 Explain why his money went up by R15 during January.
533. _____________________________________________________________
____________
4 Why was his income so much more in March?
534. _____________________________________________________________
____________
5 Why were his expenses so much more in February?
535. _____________________________________________________________
____________
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6 Explain whether you think he is managing his money well?

___________________________________________________________________
______
7 What suggestions could you make to Jacob to help him budget his money more
effectively.

536.
537.
538. Activity 4 Week 7 June
2017
539. Use the following information to compile Robert Williams
personal budget for March.
540.Robertss monthly allowance (pocket money) from his parents is R750
541.
542.
543. Robert works as a waiter at a local restaurant and earns a basic hourly
wage of R20.
544.A normal Saturday night shift is 5 hours. Robert plans to work 3 Saturdays in March and
545. thinks that he will receive R85, per shift, in
tips.
546.
547.Robert uses his monthly allowance to pay for:
548.
549.Toiletries: R150
550. Petrol for his motorbike: R263
551. Monthly entertainment costs: R350
552.Tuck shop at school: R90
553. Monthly repayment for sound system: R175 per month (three payments
remain)
554. Cell phone airtime: R80
555.Savings for his planned soccer trip: R120
556.
557.
10. BUDGET
558. Robert-isMARCH R
11.his mother
planning to buy a watch for her birthday, which costs
R250.
12. Income 13.
559. 14. 15.
560.
16. 17.
18. 19.
20. Total income 21.
22. 23.
24. Expenses 25.
26. 27.
28. 29.
30. 31.
32. Total expenses 33.
34. 35.
36. Surplus / shortfall 37.
31 | P a g e

561. Compile Roberts budget for March. fill in the relevant

information.
562.
563.
564. Activity 5 Week 8 June
2017
565. Review Simons personal budget for April 2015 and answer the
questions that follow.
566.
567. Income: 568. Expenses:
569. Pocket 570. 571. Toiletries 5
money R40 R

573. Washing 574. 575. Transport 5

cars over the R20 ticket R
weekend
577. 578. 579. Air time 5
ticket R

581. 582. 583. Tuck shop 5

R

585.
1. How much is Simons income for the month?
________________________________
2. How much is Simons expenses for the month?
______________________________
3. Does Simon have any money left for the month? If so, how much?
______________________________________________________________
4. If his income remains the same every month. How long will it take him to buy
a pair of jeans what costs R300?
______________________________________________________________
______________________________________________________________
_____
5. If he wants to buy his pair of jeans earlier, suggest ways that he can use to
decrease his expenses.
___________________________________________________________________
______
586.
587.
588.
589.
590.
591.
592.
593.
594.
595.
32 | P a g e

596.
597.
598.
599.
600.
601.
602.
603.
604.
605.
606.
607.
608.
609.
610.
611.
612.
613.
614.
615. Activity 6 Week 4 May
2017
616.
617. Draw up a personal budget for the Molala family
618. Read the case study below and answer the question that
follows:
619.
620. CASE STUDY: The Molala family
621. The Molala family are having problems with their money. They never
seem to have enough money for fun, holidays or even for going to a
restaurant to eat dinner. Their actual income and expenses for the past
month are:
622. Mr. Molalas salary, R10 000; Mrs. Molala earns R1 500 baking cakes for a
local coffee shop; mortgage bond, R3 500; medical aid, R900; school fees,
R300; water and electricity, R400; telephone, R350; monthly payment to
Woolworths for clothes, R500; groceries, R2 300; petrol, R900; garden
services, R700, gifts and entertainment, R1 500.
623.
1. Draw up a budget for the Molala family.
33 | P a g e

38. BUDGET - MARCH 39. R

40. Income 41.
42. 43.
44. 45.
46. 47.
48. Total income 49.
50. 51.
52. Expenses 53.
54. 55.
56. 57.
58. 59.
60. Total expenses 61.
62. 63.
64. Surplus / shortfall 65.
624.
625.