SEAVIEW PRIMARY SCHOOL
Economic and management sciences
Case Study
Term 2- 2015
NAME:
………………………………………………………………………………………………………
GRADE 7
………………..
Read the case study and answer the questions that follows;
Case study
The Motaung family bought a house for R400 000, but still owe R250 000 on the house in the form of a
loan from the bank. They own furniture, equipment and other household items worth R110 000. They
own a car valued at R42 000. They have R8 600 in their current bank account and R10 000 in a savings
account. They owe R35 000 to shops for goods they bought on account.
The Motaung family lives in QwaQwa. Mister Motaung is a policeman and his wife is a teacher. They also
run a small Spaza shop from their home. Then they rent out an outside room to a relative. They have
three children Karabo, Retla and Lerato.
INCOME OR EXPENSE
Salary Mr Motaung
Salary Mrs Motaung
Groceries and food for the family
Fuel and other transport costs for the family.
Transport and other costs for the Spaza shop
Rent received from the relative.
School fees and other school costs.
Clothing for the family.
Spaza shop sales
Cost of stock sold in the Spaza shop
Water and electricity
Cell phone costs
Medical costs
Other family costs
Bank charges
Interest earned on saving account
AMOUNT
R10 600
R15 100
R4 500
R740
R2 100
R300
R450
R1 750
R12 300
R10 000
R600
R750
R200
R3 500
R43
R45
1. What accounting term is used for the possessions? (1)
2. What accounting term would you use for the loan from the bank and the money they owe the
shops?(1)
3. Why do you think they have their money in a current bank account rather than in a money box
at home?(1)
4. What is the difference between a current account and a savings account?(1)
5. Draw up a statement of their Net Worth( use the example on page 71 to help you.)(7)
Statement of Net Worth
6. Make a list to calculate the profit earned by the Spaza shop that the Motaung family run(4)
7. Why is it important to separate the income and expenses of the Spaza shop from the family
expenses?(1)
8. Make a list to calculate the total monthly income earned by the Motaung family, including the
money earned from the Spaza shop.(5)
9. Make a list to calculate the Motaung family’s total monthly expenses.(8)
10. Explain whether they have enough income coming in to pay their monthly expenses.(1)