Economics And Management Sciences Grade 8 June 2010 QP

Downloaded from hlayiso.com GRADE 8 ECONOMIC MANAGEMENT SCIENCES MID-YEAR EXAMINATION 5 AUGUST 2010 MARKS: 150 EXAMINER: MRS U DUROW TIME: 1 ½ hours MODERATOR: MRS R BOUWER INSTRUCTIONS: 1. This paper consists of 6 pages. 2. Please check that your question paper is complete. 3. Read the questions carefully. 4. Answer the questions on the answer booklet supplied. 5. It is in your interest to write legibly and present your work neatly. 6. You may NOT use green or red ink. You may use a pencil, but please use a soft, dark pencil. 7. Try to keep to the time allocation suggested below. TOPIC LO:AS MARK MARK TIME ACHIEVED AVAILABLE 1 Forms of ownership LO 4 16 10 2 Entrepreneurship LO 4 20 10 3 Swot analysis LO 4 14 10 4 Source documents LO 3 6 5 5 Cash journals LO 3 32 15 6 General ledger LO 3 40 15 7 Accounting concepts LO 3 20 10 TOTALS 150 90 MINUTES Grade 8 Economic Management Science July Examination 2010 Page 1

Downloaded from hlayiso.com QUESTION 1: FORMS OF OWNERSHIP (16 MARKS; 10 MINUTES) LO 4: Entrepreneurship AS 3: Differentiate between the different forms of ownership REQUIRED: Complete the crossword puzzle in your ANSWER BOOKLET by answering the following questions: Across Down 3 The name of a close corporation must 1 This form of ownership has between two and twenty end with the letters …….. owners. 5 The business owns its own assets and is 2 When the personal possessions of the owners of a responsible for its own liabilities business can be removed to pay the debts of the business, it is said that they have ……. Liability for the debts of the business. 6 The financial statements of a public 4 This form of ownership has a maximum of ten owners. company must be ….. (Two words) 7 A public company must have a minimum 8 This form of ownership can have only one owner. of ……. Owners (Two words) 9 Exists independently from the owners of 10 In a partnership, the owners are ……. Liable for the a business debts of the business 11 Shares are bought and sold on the …….. 12 Besides contributing money in a business a potential (abbreviation) owner in a business can also contribute a ……….. 12 The owners of a public company are known as …….. 13 Only ……. Persons are allowed to become owners of a close corporation. 14 The name of a public company must always end with …… 15 If a business is a legal entity, it is required to pay ……. On the profits it makes. (Two words) 16 The name of this form of ownership ends with the letters (Pty) Ltd Grade 8 Economic Management Science July Examination 2010 Page 2

Downloaded from hlayiso.com QUESTION 2: ENTREPRENEURSHIP (20 MARKS; 10 MINUTES) LO 4: Entrepreneurial knowledge and skills AS 3: Identify the characteristics of an entrepreneur 2.1 Indicate if the following people are an entrepreneur or an intrapreneur. You must give a reason for your answer. a) Richard Branson (2) b) Raymond Ackerman (2) c) A product developer at a business (2) d) A doctor in private practice (2) e) Mrs Russell at Dainfern College (2) 2.2 What qualities do you think an entrepreneur should have? List five and give an appropriate reason for each of the qualities you have given. (10) QUESTION 3 SWOT analysis (14 MARKS, 10 MINUTES) Read the information below and do a SWOT analysis for Tony’s Ice Cream (in point form – do NOT write an entire long sentences!). Tony is an entrepreneur who has started an Ice-Cream Parlour on the main beach at Umhlanga. He has 42 different flavours of ice-cream, the biggest variety of all the ice-cream stores. In summer, Umhlanga beach is full of holiday-makers who love his ice-cream. The weather is also usually warm for most of the year in Umhlanga – perfect weather for ice-cream! Tony has two workers – Sarah and Jane. Sarah is the accountant of the business but has just left school so she does not have a great deal of experience. Jane is the manager, but is a mother of six children so sometimes has to leave work early to transport the children, take them to the doctor and take them to extra-murals, etc. This means that the store sometimes has to close early. There are 118 other stores in Umhlanga that sell ice-cream. Some of these are in the large Gateway shopping centre, which is far away from the beach, but hundreds of people visit this centre each day – usually during the hottest part of the day, when there is a high risk of sunburn on the beach. Because of its concern about the unhealthy eating habits of children and teenagers, the South African government is launching a major initiative where it encourages young people to eat healthy foods and cut down on ice-cream, in particular. However, Tony’s friend, Michelle, is busy developing a special, healthy ice-cream in bizarre flavours such as broccoli, pumpkin and spinach. It has been tested on a few people, and they seem to love it! (14) Grade 8 Economic Management Science July Examination 2010 Page 3

Downloaded from hlayiso.com QUESTION 4 SOURCE DOCUMENTS (6 MARKS; 5 MINUTES) Complete the table by naming the source document that will be used in each case. Transaction Source document The business sells goods on credit The business pays its expenses Someone pays the business for services rendered The business receives cash from the owner as his capital contribution The business buys goods on credit The business deposits money into the current bank account. QUESTION 5 CASH JOURNALS (32 MARKS; 15 MINUTES) LO 3: Managerial , consumer and Financial Knowledge and skills As 3 Complete cash transactions in the books of services and retail businesses Sara’s Decorators is a business owned by Sarah Mohamed. The business earns income by decorating shopping malls and has one big client, the Putfontein Mall. The following transactions took place in July 2010. State which cash journal will be used to record each of the following transactions; the TWO accounts affected and the amount Date Transaction CPJ/ Account Amount CRJ EXAMPLE Sara contributed R7 000 capital to the business. Receipt no.75 CRJ Capital 7 000 was issued. Bank 1 The businesss paid HG Agencies for the rent of its offices, R2 700. Cheque no 102 was used. 3 The business bought paper and pencils to the value of R250 from Grab ‘n Pay. 4 The business took out a loan from Nedbank for R5 500. The full amount was received on this day. 7 The business received R2 500 from Putfontein Mall for services rendered. 12 Sara’s computer at home broke. She used the business’ money to pay Compufix R500 for repairs to this computer. 14 The business paid Design Centre R1600 for office furniture. 27 The business paid the salaries of its workers with a cheques; R8 000 28 The business received R15 000 fee income from Putfontein Mall Grade 8 Economic Management Science July Examination 2010 Page 4

Downloaded from hlayiso.com QUESTION 6 GENERAL LEDGER (40 MAKRS; 30 MINUTES) Post the Cash receipts and Cash payments journal of Amy Plumbers to the General ledger on 31 July 2010. Total or balance the necessary accounts. CASH RECEIPTS JOURNAL OF AMY PLUMBERS FOR JULY 2010 D D Bank Current Sundry accounts o A Details Analysis Income Amount Fol Details c y of receipts R20 1 G Fertig 80 000 80 000 80 000 Capital CRR 5 Service 15 500 15 500 15 500 Rendered R21 12 G Taylor 8 000 8 000 Rent income CRR Service 6 000 14 000 6 000 Rendered 109 500 21 500 88 000 CASH PAYMENTS JOURNAL AMY PLUMBERS FOR JULY 2010 D D Sundry accounts o A Name of Payee Bank Stationery Wages Amount Fol Details c y C001 1 Martin & Co 10 800 800 10 000 Equipment 002 Cutler & Son 950 950 Consumable goods 003 5 Cash 480 480 004 10 G Fertig 300 300 Drawings 005 Stark Motors 35 000 35 000 Vehicles 006 12 Cash 528 528 48 058 800 1008 46 250 Grade 8 Economic Management Science July Examination 2010 Page 5

Downloaded from hlayiso.com QUESTION 7 ACCOUNTING CONCEPTS (20 MARKS; 10 MINUTES) Match the accounting term in column A with the correct definition in column B by only writing the letter next to the corresponding number. Column A Column B Accounting term Definition 1. Current Asset a) Money that the business earns 2. Fixed deposit b) These assets will be turned into cash within a 12 month period 3. Income c) Money that the owner takes out of the business for his personal use 4. Expenses d) It has a lifespan of longer than 12 months 5. Capital e) The goods the business sells 6. Drawings f) Someone to whom the business owes money 7. Transactions g) Money that the business pays that cannot be recovered 8. Trading stock h) A bank account where the money cannot be withdrawn for a specific time period 9. Fixed Assets i) Money that the owner puts into the business 10. Creditor j) Whenever money changes hands for business reason Grade 8 Economic Management Science July Examination 2010 Page 6