Mathematical Literacy Level 2 Module 10

Mathematical Literacy NQF 2 Downloaded from hlayiso.com Maths Lit NQF Level 2

Reading information in financial documents Module 10 Downloaded from hlayiso.com Maths Lit NQF Level 2

Overview 10.1 Documents for goods and services 10.2 Reading statements of accounts 10.3 Payslips 10.4 Understanding VAT Downloaded from hlayiso.com Maths Lit NQF Level 2

Documents for goods and services Unit 10.1 • Goods and services are delivered to people daily. In these transactions money is exchanged and as proof of this exchange, documents are issued as proof of the transaction. • These documents include the following: receipts till slips invoices credit notes Downloaded from hlayiso.com Maths Lit NQF Level 2

Types of invoices Unit 10.1 cash invoice till slip credit invoice A simple record where A record of a purchase Issued to a buyer the buyer pays without the buyer's when goods are immediately for the details, as payment returned, or when a goods or services. usually happens transaction is immediately. reversed Downloaded from hlayiso.com Maths Lit NQF Level 2

Example 10.1 page 190 Unit 10.1 Downloaded from hlayiso.com Maths Lit NQF Level 2

Example 10.1 page 190 continued ... Unit 10.1 a) Who is the buyer (customer)? b) What did she buy? c) Who is the seller? d) Is the seller registered for VAT? Give a reason for your answer. e) When was this purchase made? f) Calculate the cost of the appliance before VAT was included. Downloaded from hlayiso.com Maths Lit NQF Level 2

Example 10.1 page 190 continued ... Unit 10.1 a) Ms M. Taetso b) A toploader washing machine c) Appliance Queen d) Yes. There is a VAT registration number (560798) on the invoice. e) 6 July 2018 f) Cost of appliance before VAT was included: Amount owed – VAT = R8 504,39 – R1 044,39 = R7 460,90. Downloaded from hlayiso.com Maths Lit NQF Level 2

Example 10.1 f) page 190 Unit 10.1 Downloaded from hlayiso.com Maths Lit NQF Level 2

Example 10.2 page 191 Unit 10.1 Downloaded from hlayiso.com Maths Lit NQF Level 2

Example 10.2 page 191 continued ... Unit 10.1 a) Where and when was this purchase made? b) Identify the following amounts from the slip: i) The total cost of the purchase ii) The amount paid by the customer and the method of payment iii) The change paid to the customer. iv) The VAT amount. c) What does ‘ROUNDING − 0,06’ mean? d) Why do you think the cashier’s name and time of purchase are included on the till slip? Downloaded from hlayiso.com Maths Lit NQF Level 2

Example 10.2 page 191 continued ... Unit 10.1 a) At Thulamahashe Supermarket in Greenways on 21 May 2018. b) i) R128,86 ii) R130,00 cash payment iii) R1,20 iv) R8,40 c) When working with cash, the lowest denomination this store deals in is 10c coins. The shop gives the customer the benefit by rounding down the amount owing to the nearest 10c. In this case, R128,86 is rounded down to R128,80. d) If there is any problem with the sale, the store would know which till operator was responsible, and when the problem occurred. Downloaded from hlayiso.com Maths Lit NQF Level 2

Exercise 10.1 Unit 10.1 Complete Exercise 10.1 on page 193 of your Student’s Book Downloaded from hlayiso.com Maths Lit NQF Level 2

Reading statements of accounts Unit 10.2 Statements Statements of account are financial documents issued by institutions to their customers. The details of all the transactions for a specific period are listed. These statements are often just referred to as 'accounts’. Statements can be issued monthly, quarterly or annually. Any breach in the conditions of the account is also stipulated on the statement, e.g. late payment, interest. Downloaded from hlayiso.com Maths Lit NQF Level 2

Example 10.4 page 196 Unit 10.2 Petrus has an account at Smartchoice Clothing Store. Every month he receives a statement such as this: Downloaded from hlayiso.com Maths Lit NQF Level 2

Example 10.4 page 196 continued ... Unit 10.2 a) Identify the following on the statement: i. the statement date ii. the due date and amount of the next instalment iii. the balance brought forward iv. the closing balance b) How many purchases does Petrus make during the month? c) What was the total amount of his purchases during this statement period? d) His minimum payment in the previous month was R240. Explain why it has increased to R585,00. Downloaded from hlayiso.com Maths Lit NQF Level 2

Example 10.4 page 196 continued ... Unit 10.2 e) What is the total amount of credit that Smartchoice grants him? f) In the next statement period, Petrus makes a payment of R585,00 and another purchase of R400. If he does no further transactions in the statement period, what will his closing balance be? Show your calculations. Downloaded from hlayiso.com Maths Lit NQF Level 2

Example 10.4 page 196 continued ... Unit 10.2 a) i. 21 June 2018 ii. The due date is 01 July 2018. The amount due is R585,00 iii. R2 315,76 iv. R4 279,71 b) Three c) R879,95 + R545,00 + R779,00 = R2 203,95 d) His balance owing has increased. e) R5 000,00 f) R4 279,71 – R585,00 + R400,00 = R4 094,71 Downloaded from hlayiso.com Maths Lit NQF Level 2

Exercise 10.2 Unit 10.2 Complete Exercise 10.2 on page 197 of your Student’s Book Downloaded from hlayiso.com Maths Lit NQF Level 2

Payslips Unit 10.3 Payslip A payslip is a document issued by an employer to an employee listing all the details of the employee's income and deductions. When the employee is paid monthly it is called a salary advice. The following details ae included on a payslip: • Employer's details • Employee’s personal details • Employee’s tax reference number • Employee’s bank and bank account number Downloaded from hlayiso.com Maths Lit NQF Level 2

Payslips Unit 10.3 The following important information must be on the payslip: Gross salary This includes basic salary and any other income such as commission or overtime Deductions This includes Tax, UIF, Pension fund, etc. On some payslips/salary advices, a detailed summary is shown of the income earned and deductions up to this point in the employer's financial year. Downloaded from hlayiso.com Maths Lit NQF Level 2

Example 10.5 page 199 Unit 10.3 Study this payslip and then answer the questions that follow. Downloaded from hlayiso.com Maths Lit NQF Level 2

Example 10.5 page 199 continued ... Unit 10.3 a) Who is Pearl’s employer? b) How does her employer pay her salary? c) What is Pearl’s gross salary? d) What tax is reflected on her salary advice slip? e) Which two expenses does the employer subsidise? f) Do the calculations to show that her nett pay is correctly calculated? Downloaded from hlayiso.com Maths Lit NQF Level 2

Example 10.5 page 199 continued ... Unit 10.3 a) Mr Curtain b) Her salary is deposited into her Standup Bank account. c) R9 765,00 d) PAYE (Pay as you earn) e) Her employer subsidises her uniform and transport costs. f) R9 285,00 + (R400,00 + R80,00) – (R803,00 + R97,65) = R9 285,00 + R480,00 − R900,65 = R8 864,35 Downloaded from hlayiso.com Maths Lit NQF Level 2

Example 10.5 f) page 199 Unit 10.3 Downloaded from hlayiso.com Maths Lit NQF Level 2

Exercise 10.3 Unit 10.3 Complete Exercise 10.3 on page 192 of your Student’s Book Downloaded from hlayiso.com Maths Lit NQF Level 2

Understanding VAT VAT Unit 10.4 Value Added Tax Facts about VAT • An indirect form of tax collection, where business owners are responsible for collecting it and paying it over to SARS. • It is calculated at a rate of 14% on all goods sold and services rendered subject to certain exemptions. • Exempt items include basic food stuff, school fees, rent, train fares etc. Downloaded from hlayiso.com Maths Lit NQF Level 2

Calculations Module 10.4 There are basically two calculations you need to know when calculating VAT. 1. Calculating the price + VAT of an item with VAT when you are given the price without VAT. 2. Calculating the price - VAT of an item without VAT when you are given the price inclusive of VAT. Downloaded from hlayiso.com Maths Lit NQF Level 2

Example 10.6 page 202 Unit 10.4 Sibusiso needs to buy a new tyre for his car. The price of a new tyre excluding VAT is R500. a) Calculate the VAT that would have to be added. b) How much will the total price of the tyre be? Downloaded from hlayiso.com Maths Lit NQF Level 2

Example 10.6 page 202 continued ... Unit 10.4 Downloaded from hlayiso.com Maths Lit NQF Level 2

Example 10.7 page 202 Unit 10.4 • Kaylee wants to buy a printer to print out her projects. The printer at Computer Supplies is marked as R990. What is the price excluding the VAT? Downloaded from hlayiso.com Maths Lit NQF Level 2

Example 10.7 page 202 continued ... Unit 10.4 Downloaded from hlayiso.com Maths Lit NQF Level 2

Exercise 10.4 Unit 10.3 Complete Exercise 10.4 on page 202 of your Student’s Book Downloaded from hlayiso.com Maths Lit NQF Level 2

Module assessment Module 10 Complete Module assessment on page 204 of your Student’s Book Downloaded from hlayiso.com Maths Lit NQF Level 2

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