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PROVINCIAL EXAMINATION
NOVEMBER 2023
GRADE 9

ECONOMIC AND MANAGEMENT SCIENCES:

FINANCIAL LITERACY

PAPER 1

TIME: 1 hour

MARKS: 70

9 pages and a 7-page answerbook

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INSTRUCTIONS AND INFORMATION

1. This question paper consists of SECTIONS A, B and C (Financial Literacy topics)

and is based on the prescribed content framework in the CAPS amendment
document and ATP.

SECTION A: SHORT QUESTIONS

QUESTION 1.1: Multiple-Choice questions (5)

QUESTION 1.2: Matching items (5)
QUESTION 1.3: Choose the correct word/term (5)
[15]

SECTION B: JOURNALS AND ACCOUNTING EQUATION

QUESTION 2: Journals (20)

QUESTION 3: Accounting equations (10)
[30]

SECTION C: LEDGERS AND TRIAL BALANCE

QUESTION 4: General Ledger (8)

QUESTION 5: Creditors' Ledger (7)
QUESTION 6: Trial Balance (10)
[25]

2. All questions are compulsory.

3. Answer all questions in the ANSWER BOOK provided.

4. Write neatly and legibly.

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SECTION A: SHORT QUESTIONS

QUESTION 1

1.1 MULTIPLE-CHOICE QUESTIONS

Various options are provided as possible answers to the following questions.

Choose the answer and write only the letter (A – D) next to the question numbers
(1.1.1 to 1.1.5) in the ANSWER BOOK provided, e.g., 1.1.6 D.

1.1.1 Creditors' control can be classified as a/an …

A expense.
B current liability.
C current asset.
D non-current liability. (1)

1.1.2 BHS Wholesalers sells goods on credit to A. Money. A. Money is known as

a … to the business.

A payee
B proprietor
C debtor
D creditor (1)

1.1.3 The … account normally has a debit balance.

A stationery
B capital
C commission income
D creditors' control (1)

1.1.4 Equipment purchased on credit will increase …

A assets.
B liabilities.
C both assets and liabilities.
D owner’s equity. (1)

1.1.5 An EFT was processed to Sumsurance on 25 October 2023. R3 900 was

for the business's annual insurance premium and R1 400 for the owner’s
home insurance. What amount will be recorded in the CPJ as insurance?

A R5 300
B R3 900
C R1 400
D R9 200 (1)
[5]
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1.2 MATCHING ITEMS

Choose a term in COLUMN B that matches the description in COLUMN A. Write

only the letter (A – F) next to the question numbers (1.2.1 to 1.2.5) in your
ANSWER BOOK e.g. 1.2.6 G.

COLUMN A COLUMN B
1.2.1 A debt that is repayable over a period A Double entry principle
of more than a year
B Equipment
1.2.2 Provides a summary of the amount
owed to the business for goods sold C Mortgage bond
on credit
D Cash receipts journal
1.2.3 An expense account
E Cost of sales
1.2.4 For every debit there must be an equal
and corresponding credit F Debtors' Control

1.2.5 Increases the bank account

[5]
1.3 CHOOSE THE CORRECT WORD/TERM

Choose the correct word/term from within the brackets for each of the following
statements. Write only the correct word/term in your ANSWER BOOK,
e.g., 1.3.6 asset.

1.3.1 The money earned by a business for selling goods to customers is

recorded as (current income/sales). (1)

1.3.2 Recording the details of a transaction on a source document is the first

step in the (accounting cycle/accounting equation). (1)

1.3.3 The source document for rent received from a tenant is a (duplicate
receipt/cash register roll). (1)

1.3.4 EFT is the acronym for (Electronic Financial Transactions/Electronic

Funds Transfer). (1)

1.3.5 (Fixed/Current) assets are not purchased with the intention of reselling
them at a profit. (1)
[5]

TOTAL SECTION A: 15
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SECTION B: JOURNALS AND ACCOUNTING EQUATION

QUESTION 2: JOURNALS

D. Disney owns Disney Stores. The business is run by D. Disney and

two employees who each gets paid a wage.

Disney Stores used to buy and sell toys for cash only. A few months
ago, they decided to start buying and selling on credit as well. The
business maintains a mark-up of 50% on cost.

REQUIRED:

2.1 Use the information provided below to record the transactions for Disney Stores
in the following journals for the month ending September 2023.

Do not close the journals at the end of the month.

2.1.1 Cash Receipts Journal (5)

2.1.2 Cash Payments Journal (6)

2.1.3 Debtors' Journal (3)

2.1.4 Creditors' Journal (4)

2.2 Discuss ONE reason why the business decided to start selling goods on credit. (2)

TRANSACTIONS:

September 2023

6 Cash sales for the day amounted to R10 500.

8 Delivered goods to M. Mouse, R1 800 as per invoice number 36.

11 Paid Pluto R1 010 for repairs to the delivery vehicle. EFT 123 was processed.

14 Paid two weeks wages to the employees. Each employee earns R550 a week.

22 Purchased the following on account from D. Duck. (Invoice number 229)

Merchandise, R7 200
Stationery, R360

25 Received R800 from M. Mouse as partial payment on his account. Issued receipt
number 21.
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28 Paid D. Duck through EFT for half the amount owing from the purchase made
earlier this month.
[20]

QUESTION 3: ACCOUNTING EQUATION

Analyse the following transactions and show the effect that each one has on the
accounting equation.

No. Transaction
e.g. Paid R1 000 for wages.
3.1 Goods costing R3 000 was sold on credit to Cinderella. A markup of 25% was
maintained.
3.2 EFT 40 was processed as payment of R4 700 to Captain Hook in settlement
of account.
[10]

TOTAL SECTION B: 30
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SECTION C: LEDGERS AND TRIAL BALANCE

QUESTION 4: GENERAL LEDGER

The following records were extracted from the books of VIVO Traders on 31 August 2023.

REQUIRED:

Use the information below to complete the following General Ledger accounts for the
month ending 31 August 2023.

4.1 Trading Stock (8)

Column totals in the subsidiary journals of VIVO Traders on 31 August 2023.

Cash Receipts Journal of VIVO Traders – August 2023 CRJ1

Bank Sales Cost of sales Debtors' Sundry
control Accounts
251 600 109 800 73 200 2 800 139 000

Cash Payments Journal of VIVO Traders – August 2023 CPJ1

Bank Trading stock Stationery Wages Sundry
Accounts
117 500 ? 1 500 4 000 40 500

Debtors' journal of VIVO Traders – August 2023 DJ1

Sales Cost of Sales
72 000 48 000

Creditors' Journal of VIVO Traders – August 2023 CJ1

Bank Trading stock Stationery Equipment Sundry
Accounts
82 200 51 000 1 200 30 000
[8]
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QUESTION 5: CREDITORS' LEDGER

Refer to the incomplete creditors' ledger below and answer the questions that follow.

Creditors' Ledger of VW Traders for the month ended October 2023

POLO Stores CL1
DATE Details Fol. Debit Credit Balance
Oct 2023 1 Balance b/d 1 240
Oct 2023 9 (A) No. 46 DJ 5 360 (B)
Oct 2023 13 (A) No. 61 DJ (C)
Oct 2023 25 EFT 74 CPJ ? ? (D)

5.1 Provide the detail/source document labelled (A). (1)

5.2 Calculate the balance labelled (B). (1)

5.3 For the transaction dated the 13th, the business purchased goods to the value of
R3 900 and received a 10% trade discount on this purchase. Calculate the
amount labelled (C). (2)

5.4 On the 25th, the business settled its account in full. What is the balance labelled
(D)? (1)

5.5 The creditor sends a statement to the business at the end of the month reflecting
the amount owing. Explain why it is still necessary for the business to draw up
their own account for the creditor in the creditors' ledger. (2)
[7]
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QUESTION 6: TRIAL BALANCE

The bookkeeper of Golf Stores is ill. T. Woods, the owner, has asked you to assist him
in drawing up the Trail Balance for his business for the month of September 2023.

REQUIRED:

6.1 Identify the missing heading labelled (A) on the answer sheet. (1)

6.2 Using the information provided below and draw up the Trial Balance for the month
ended September 2023. Some of the information has already been completed for
you. (9)

INFORMATION:

Water and electricity 2 920

Telephone 1 590
Sales 20 500
Equipment 15 250
Rent income 2 500
Cost of sales 16 400
Drawings 8 700
Capital 72 000
(see note below)
Bank 12 480
Creditors' control 4 890
Trading Stock 15 550

Note:
The following error was not corrected.

The owner increased his capital by R25 000 in March. This was however
recorded as R52 000.
[10]

TOTAL SECTION C: 25

TOTAL: 70
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PROVINCIAL EXAMINATION
NOVEMBER 2023
GRADE 9
ECONOMIC AND MANAGEMENT SCIENCES:
FINANCIAL LITERACY

PAPER 1

ANSWER BOOK

TIME: 1 hour

MARKS: 70

7 pages

NAME AND SURNAME:

SCHOOL:

CLASS:

DISTRICT:

QUESTION 1 QUESTION 2 QUESTION 3 QUESTION 4 QUESTION 5 QUESTION 6 TOTAL

Learners'
Mark
Maximum
15 20 10 8 7 10 70
Mark
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SECTION A: SHORT QUESTIONS

QUESTION 1

1.1 MULTIPLE-CHOICE QUESTIONS

1.1.1
1.1.2
1.1.3
1.1.4
1.1.5 (5 x 1) 5

1.2 MATCHING ITEMS

1.2.1
1.2.2
1.2.3
1.2.4
1.2.5 (5 x 1) 5

1.3 CHOOSE THE CORRECT WORD/TERM

1.3.1
1.3.2
1.3.3
1.3.4
1.3.5 (5 x 1) 5

15

TOTAL SECTION A: 15
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SECTION B: JOURNALS AND ACCOUNTING EQUATION

QUESTION 2: JOURNALS

2.1 2.1.1 Cash Receipts Journal of Disney Stores for September 2023 CRJ 1

Doc. Day Details Fol. Analysis of Bank Sales Cost Debtors' Sundry Accounts
no receipts of sales control Amount Details

(5)

2.1.2 Cash Payments Journal of Disney Stores for September 2023 CPJ1

Doc Day Details Fol. Bank Trading Stationery Wages Creditors' Sundry Accounts
no Stock Control Amount Details

(6)
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2.1.3 Debtors Journal of Disney Stores for September 2023 DJ1

Doc. Day Details Fol. Sales Cost of Sales

no.

(3)

2.1.4 Creditors Journal of Disney Stores for September 2023 CJ1

Doc. Day Details Creditors' Control Trading Stock Stationery Sundry Accounts
no. Amount Details

(4)
(18)
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2.2 Discuss ONE reason why the business decided to start selling goods on credit.

(2)
[20]

QUESTION 3: ACCOUNTING EQUATION

Analyse the following transactions and show the effect that each one has on the
accounting equation.

Day Account Account Amount Effect on the accounting

debited credited equation
A OE L
e.g. Wages Bank 1 000 - -

3.1 Sales
+ +

3.2 Bank 4 700 -

[10]

30

TOTAL SECTION B: 30
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SECTION C: LEDGERS AND TRIAL BALANCE

QUESTION 4: GENERAL LEDGER
General Ledger of VIVO Traders for August 2023

4.1 Dr Trading Stock B6 Cr

Date Details Fol Amount Date Details Fol Amount
2023 1 Balance b/d 26 400 2023 31
Aug Aug
31 Bank CPJ

Balance c/d

Balance b/d
[8]

QUESTION 5: CREDITORS' LEDGER

Answer the following questions.

5.1 Provide the detail/source document labelled (A).

(1)

5.2 Calculate the balance labelled (B).

(1)

5.3 For the transaction dated the 13th, the business purchased goods to the value of
R3 900 and received a 10% trade discount on this purchase. Calculate the amount
labelled (C).

(2)

5.4 On the 25th the business settled its account in full. What is the balance labelled (D)?

(1)

5.5 The creditor sends a statement to the business at the end of the month reflecting the
amount owing. Explain why it is still necessary for the business to draw up their own
account for the creditor in the creditors' ledger.

(2)
[7]
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QUESTION 6: TRIAL BALANCE

6.1 Trial balance of Golf Stores for September 2023

Fol. Debit Credit
BALANCE SHEET ACCOUNTS SECTION
Capital B1
B2
Equipment B3 15 250
Bank B4 12 480

(A)____________________________
Sales N1 20 500
N2
Water and electricity N3 2 920

[10]

25

TOTAL SECTION C: 25

TOTAL: 70
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PROVINCIAL EXAMINATION
NOVEMBER 2023
GRADE 9
MARKING GUIDELINES

ECONOMIC AND MANAGEMENT SCIENCES:

FINANCIAL LITERACY
PAPER 1

7 pages
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SECTION A

QUESTION 1

1.1 MULTIPLE-CHOICE QUESTIONS

1.1.1 B current liability ✓
1.1.2 C debtor ✓
1.1.3 A stationery ✓
1.1.4 C both assets and liabilities ✓
1.1.5 B R3 900 ✓ (5 x 1) 5

1.2 MATCHING ITEMS

1.2.1 C Mortgage bond ✓
1.2.2 F Debtors' Control ✓
1.2.3 E Cost of sales ✓
1.2.4 A Double entry principle ✓
1.2.5 D Cash receipts journal ✓ (5 x 1) 5

1.3 CHOOSE THE CORRECT WORD/TERM

1.3.1 sales ✓
1.3.2 accounting cycle ✓
1.3.3 receipt ✓
1.3.4 Electronic Funds Transfer ✓
1.3.5 Fixed ✓ (5 x 1) 5

15

TOTAL SECTION A: 15
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SECTION B: JOURNALS AND ACCOUNTING EQUATION

QUESTION 2: JOURNALS

2.1 2.1.1 Cash Receipts Journal of Disney Stores for September 2023 CRJ 1

Doc. Day Details Fol. Analysis of Bank Sales Cost Debtors' Sundry Accounts
no. receipts of sales control Amount Details
CRT 6 Cash 10 500 10 500 10 500 ✓ 7 000 ✓✓
21 25 M. Mouse 800 800 ✓ 800 ✓
(5)

2.1.2 Cash Payments Journal of Disney Stores for September 2023 CPJ1

Doc. Day Details Fol. Bank Trading Stationery Wages Creditors' Sundry Accounts
no. Stock control Amount Details
123 11 Pluto 1 010 ✓ 1 010 Repairs ✓
124 14 Cash 2 200 2 200 ✓✓
125 28 D. Duck 3 780 3 780 ✓✓ (6)
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2.1.3 Debtors' Journal of Disney Stores for September 2023 DJ1

Doc. Day Details Fol. Sales Cost of Sales

no.
36 8 M. Mouse 1 800 ✓ 1 200 ✓✓

(3)

2.1.4 Creditors' Journal of Disney Stores for September 2023 CJ1

Doc. Day Details Creditors' Control Trading Stationery Sundry Accounts

no. Stock Amount Details
229 22 D. Duck 7 560 ✓✓ 7 200 ✓ 360 ✓
(4)
(18)
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2.2 Discuss ONE reason why the business decided to start selling goods on credit.

• The business can sell more goods. ✓✓

• Leads to an increase in sales.
• Leads to growth in the business.
(Any other correct and relevant answer) (2)
[20]

QUESTION 3: ACCOUNTING EQUATION

Analyse the following transactions and show the effect each one has on the
accounting equation.

Day Account Account Amount Effect on the accounting

debited credited equation
A OE L
e.g. Wages Bank 1 000 – –

3.1 Debtors' Sales 3 750 ✓✓

+ +
Control ✓
Cost of Trading 3 000 ✓
–✓ –✓
Sales ✓ Stock ✓

3.2 Creditors' Bank 4 700 – –✓

Control ✓
[10]

30

TOTAL SECTION B: 30
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SECTION C: LEDGERS AND TRIAL BALANCE

QUESTION 4: GENERAL LEDGER
General Ledger of VIVO Traders for August 2023
4.1 Dr Trading Stock B6 Cr
Date Details Fol. Amount Date Details Fol. Amount
2023 1 Balance b/d 26 400 2023 31 Cost of CRJ 73 200✓
Aug Aug sales
31 Bank CPJ 71 500 ✓✓ Cost of DJ 48 000 ✓
sales ✓
Creditors' CJ 51 000 ✓ Balance c/d 27 700 ✓
Control ✓
148 900 148 900
Balance b/d 27 700 [8]

QUESTION 5: CREDITORS' LEDGER

Answer the following questions.

5.1 Provide the detail/source document labelled (A).

Invoice ✓ (1)

5.2 Calculate the balance labelled (B).

R6 600 ✓ (1)

5.3 For the transaction dated the 13th, the business purchased goods to the value of
R3 900 and received a 10% trade discount on this purchase. Calculate the amount
labelled (C).

3 900 x 10% = 390

3 900 – 390 = 3 510 ✓✓ (2)

5.4 On the 25th, the business settled its account in full. What is the balance labelled (D)?

R0 ✓ (1)

5.5 The creditor sends a statement to the business at the end of the month reflecting the
amount owing. Explain why it is still necessary for the business to draw up their own
account for the creditor in the creditors' ledger.
• The business will be able to identify any errors or omissions at the end of the
month after comparing the ledger with the creditors' statement. ✓✓
• The business must be able to know at any point in the month how much they owe
the creditor.
(Any other correct and relevant answer) (2)
[7]
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QUESTION 6: TRIAL BALANCE

6.1 Trial balance of Golf Stores for September 2023

Fol Debit Credit
BALANCE SHEET ACCOUNTS SECTION
Capital B1 45 000 ✓✓
Drawings B2 8 700 ✓
Equipment B3 15 250
Bank B4 12 480
Trading Stock B5 15 550 ✓
Creditors' Control B6 4 890 ✓

(A)
NOMINAL ACCOUNTS SECTION ✓
____________________________
Sales N1 20 500
Cost of sales N2 16 400 ✓
Water and electricity N3 2 920
Telephone N4 1 590 ✓
Rent income 2 500 ✓
72 890 * 72 890
[10]
# N.B.:
✓– Marks must be awarded only if both the correct details and the amount is on the
correct side.

* – Award the 1 method mark if both the totals are the same.

25

TOTAL SECTION C: 25

TOTAL: 70