ECONOMIC MANAGEMENT SCIENCES
GRADE 8
TERM 2 SUMMARISED NOTES
MID YEAR EXAM
Paper 1 topics:
Accounting cycle, accounting equation, CRJ, Accounting concepts, Source
documents.
Total 50, duration 1 hour
Paper 2 topics:
Government, National budget, Standard of living, Factors of production
Total 50, duration 1 hour
CLASS ACTIVTIES AND HOMEWORK
ACTIVITY 1 Learners to draw diagram page 60
Activity 2 Worked example page 64 plus
ACTIVITY 3 UNIT 16 PAGE 77
ACTIVITY 4 refer to: ACTIVITY 5 PAGE 79 CLASS ACTIVITY
ACTIVITY 5 refer to: ACTIVITY 6 HOMEWORK PAGE 79
Activity 6 Explain CRJ Wally’s page 71
Activity 7 Illustrative example page73 Jane hairdressing salon
ACTIVITY 9
CASH RECEIPTS JOURNAL – CRJ Seabreeze Hardware
Activity 12 refers to: Activity 3 page 76 class activity
CASTING AND CROSS CASTING page 75
Activity 11 refers to: Activity 1 page 75 class activity
Page 1 of 15
Activity 12 refers to: Activity 2 page 75 homework
Activity 14 refers to: Activity 1 page 83 class activity
Activity 16 refers to: Activity 3 page 87 class activity
VERY IMPORTANT CONCEPT!
NATURAL DEBITS
NATURAL CREDITS
D
Debit side
C
E
Expenses
O Owner’s equity – capital contribution
A
Assets- equipment, machinery,
I
***BANK***
D
These are Natural debits
Credit side
Income -sales, rent income, interest
income
L
Liabilities (Loan from the bank)
When expenses and assets Increase
When Owners Equity, Income and Liabilities
they go naturally to the Debit side.
Increase they go naturally to the Credit side.
When they Decrease they are credited
When they Decrease they are debited
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6 FINANCIAL LITERACY OVERVIEW OF THE ACCOUNTING CYCLE
UNIT 10 TRANSACTIONS, SOURCE DOCUMENTS, SUBSIDIARY JOURNALS,
GENERAL LEDGER
What is the accounting cycle?
Begins with a Transaction.
It is a series of steps that records all accounting transactions on a daily, weekly,
monthly and annual basis.
Daily transactions includes:
Buying stock
Selling stock
Buying consumables to run the business
Buying assets
Paying your creditors – people whom you owe money to
Collecting money from your debtors- people who owe you money
Monthly transaction includes:
Summarising all the daily transactions.
Year – end transactions includes:
Calculating profit or loss
Prepare financial statements Income statement and balance sheet
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THE ACCOUNTING CYCLE
Start Source Documents. Transactions are recorded in
Source Documents:
Till Slips, Deposit slips, EFTS, bank deposit slips
Transcations are posted to
Extraction of Financial
Statements:
Income statements
Balance sheet
Subsidary Journals. Subsidary journals are journals in
which all transactions are summarised before being
recorded in the General Ledger
CRJ - Cash receipts journal money coming into the
business
CPJ _ cash payments journal money going out of the
business, payments to other people
Trial Balance
Posting to the
General Ledger.
We use the following source documents when we sell something:
Receipt (R01), Till slip (CRT 01), Cash Invoice (Inv 01)
The 2 Subsidiary journals we will learn this year are:
Cash Receipts Journal – record transactions when money comes into the business.
Cash Payments Journal – record transactions when money Goes Out of the
business.
The General ledger – is a summary of the transactions in both the CRJ and CPJ.
In the GL we have 2 groups:
Balance sheet accounts section: which includes Assets, Liabilities and OE
Page 4 of 15
Nominal accounts section: which includes Expenses and Income
ACTIVITY 1
Learners to draw diagram page 60
Activity 2
Worked example page 64 plus
4. Mr Naidoo paid us rent (rental income) R500
5. Standard bank paid us interest (interest income) R50
6. Bought pens and pencils from Waltons R60
7. Bought petrol from Astron Energy R800
8. Sold goods to the value of R1000
Debit
Credit
Page 5 of 15
GENERAL LEDGER OF
BALANCE SHEET ACCOUNT SECTION
CAPITAL CONTRIBUTION B1
MONTH DATE
AMOUNT MONTH DATE
FOR 2025
AMOUNT
VEHICLES B2
MONTH DATE
AMOUNT
MONTH DATE
LOAN B3
MONTH DATE
AMOUNT
MONTH DATE
NOMINAL ACCOUNT SECTION
SALES N1
MONTH DATE
AMOUNT
MONTH DATE
AMOUNT
PETROL N2
MONTH DATE
AMOUNT
MONTH DATE
AMOUNT
STATIONERY N3
MONTH DATE
AMOUNT
MONTH DATE
AMOUNT
INTEREST INCOME N4
MONTH DATE
AMOUNT
MONTH DATE
AMOUNT
RENT INCOME N5
MONTH DATE
AMOUNT
MONTH DATE
AMOUNT
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UNIT 16 EFFECT OF CASH TRANSACTION ON THE ACCOUNTING EQUATION
ACTIVITY 3 UNIT 16 PAGE 77
UNIT 16 PAGE 77
EFFECT ON THE ACCOUNTING EQUATION
Day
Assets
.=
Owners Equity + (Capital + Income Expenses)
.+
Liabilties
1 receive money and deposit in bank
account. Bank is an asset it will increase
+ R50 000
capital is equity +R50 000
only 2 accounts are effected bank and
capital
3 money received bank is an asset, asset will
increase+R25 000
Income increases Equity + R25 000
only 2 accounts are effected bank and
service fees which is an income
5 money received and deposited into bank.
Bank is an asset, asset will increase
+ R50 000
Income increases Equity + R50 000
only 2 accounts are effected bank and
service fees which is an income
18 money received and deposited into bank.
Bank is an asset, asset will increase
+ R20 000
Income increases Equity + R20 000
only 2 accounts are effected bank and
service fees which is an income
26 money received and deposited into bank.
Bank is an asset, asset will increase
+ R4000
Income increases Equity + R4 000
only 2 accounts are effected bank and
Rent income which is an income
30 money received and deposited into bank.
Bank is an asset, asset will increase
+ R50 000
Liability loan increase + R50 000
Page 7 of 15
ACTIVITY 4 refer to:
ACTIVITY 5 PAGE 79 CLASS ACTIVITY
EFFECT ON THE ACCOUNTING EQUATION
Day
Assets
.= Owners Equity +
.+ Liabilities
(Capital + Income Expenses)
Page 8 of 15
ACTIVITY 5 refer to:
ACTIVITY 6 HOMEWORK PAGE 79
EFFECT ON THE ACCOUNTING EQUATION
Day
Assets
.= Owners Equity +
.+ Liabilities
(Capital + Income Expenses)
Page 9 of 15
7: FINANCIAL LITERACY: CASH RECEIPTS JOURNAL of a Service Business
UNIT 12 CONCEPT OF A CASH RECEIPTS JOURNAL of a Service Business,
FORMATS AND USES OF COLUMNS IN THE CRJ
What is a service business?
A business that provides a service for example
Electrician
Plumber
Mechanic
Carpenter
Teacher
The business will receive money when:
The owner invests capital (money) into the business
Takes a loan
Provides a service example the plumber fixed the leaking pipe in the kitchen
Interest earned on investments
Business sells assets
All transactions are recorded in the CRJ in date order.
What is a Trading business? Where you sell products. Waltons sells stationery to
learners, Bakers biscuits sell biscuits, Toyota makes and sells cars
Activity 6
Explain CRJ Wally’s page 71
Activity 7
Illustrative example page73 Jane hairdressing salon
Page 10 of 15
ACTIIVTY 8
CASH RECEIPTS JOURNAL – CRJ
Clean Machines is a small business run by Vusi Nduna,
He washes cars. The following money was received in January 2024.
Record these transactions into the CRJ.
7
services rendered for the week as per cash register tapes from 15 – 19
January was deposited into the bank R5000
9
received R9000 rent for the month from L Viljoen. Issued receipt number 24.
L Viljoen rents part of Vusi’s building.
12
services rendered for the week 20 – 24 January amounted to R2600 (CRT 20-
24).
27
The owner, Vusi Nduna, out in R4000 more capital into the business.
ACTIVITY 9
CASH RECEIPTS JOURNAL – CRJ
Seabreeze Hardware is a hardware business owned by Arthur.
The following money was received in February 2024.
1 Arthur deposited R50 000 of his personal money into the business.
2 Received interest R4000
3 Sold hardware for the week as per cash register tapes from 1 – 5 February.
Deposited R45 000 into the bank.
4 Received R12 000 rental income from Rocky and Me via EFT 1
5 Hired tools and machinery to Bush Whackers. Paid via EFT 2 R10 500.
6 Sold sand to Ati Building Contractors. Paid cash R5000.
Activity 12 refers to:
Activity 3 page 76 class activity
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CASTING AND CROSS CASTING page 75
Activity 11 refers to:
Activity 1 page 75 class activity
ACTIVITY 1 PAGE 75
CASTING AND CROSS-CASTING
Add these columns Vertically (up to down) and Horizontally (left to right)
?
1567 .+
876 .+
11 324 .+
42 .+
.+
?
432 .+
27 .+
134 .+
12 876 .+
.+
?
234 .=
1876 .=
90 .=
89 723 .=
.=
?
?
?
?
?
Activity 12 refers to:
Activity 2 page 75 homework
ACTIVITY 2 PAGE 75
CASTING AND CROSS-CASTING
Add these columns Vertically (up to down) and Horizontally (left to right)
?
?
?
?
?
.=
.=
.=
.=
.=
?
100 .+
1234 .+
12 .+
12 677 .+
.+
?
387 .+
1198 .+
32 487 .+
21 .+
.+
786
13 290
67
1337
?
Page 12 of 15
8 ENTERPRENEURSHIP: FACTORS OF PRODUCTION PAGE 80
UNIT 17 CAPITAL, LABOUR AND THE ROLE WORKERS PLAY IN BUSINESS
Production is the process of producing goods or services.
Output of Production – Goods and services
Input of Production – are the factors of production:
Labour
People who work, unskilled, semi -skilled labour and skilled labour
Fair Labour Practices
BCEA
Employee rights includes:
To be paid, Treated fairly, Safe and comfortable working conditions., Overtime
payment, Leave pay, Lunch breaks
Role of workers – they transform raw materials into goods, they provide services.
They play the biggest most important role in the work environment.
Activity 13
Learners to list types of workers who are in the Services and Trade businesses
Capital
Money invested into the business including borrowed money
Money invested into capital goods, buildings, machinery, equipment,
vehicles.
A. Borrowed capital – take out a loan from the bank.
B. Own capital – the owner invests his own personal money into the
business.
Activity 14 refers to:
Activity 1 page 83 class activity
Page 13 of 15
UNIT 18 FAIR EMPLOYMENT PRACTICES PAGE 83
Workers need to be treated fairly, with respect and dignity. They also need to respect
and work honestly. There are Labour laws which govern the Employer (the boss) and
Employee (the worker) relationship.
1. The Labour relations Act LRA provides for the rights of both employers and
employees and negotiations for Trade unions.
2.The Basic conditions of Employment Act BCEA sets out the rights of
employers and employees. This Act protects the workers from being exploited
and also to prevent child labour.
3. The Employment Equity Act EEA helps ensure that there is equal
representation of all races and genders including people living with disabilities.
4. Skills Development Act SDA aim is to improve skills and develop skills.
People who are skilled can get jobs and earn money.
Activity 15 refers to:
Activity 2 page 85 class activity
UNIT 19 NATURAL RESOURCES, ENTREPRENEURSHIP AND RENUMERATION
OF FACTORS OF PRODUCTION
Are things provided by Nature, water, soil, air, wind, wood, land, minerals,
wildlife, vegetation. Used to provide services or manufacture goods.
Natural resources are Scarce and business needs to Use and not Abuse
natural resources. Do not pollute, do not waste, do not emit harmful gases
into the atmosphere.
Use alternate energy sources, solar energy sources, turbine energy sources.
Entrepreneurship
Is a person who thinks of a business idea, employs people, uses natural
resources, invests money into the business, buys equipment, assets and
vehicles.
Page 14 of 15
Example Elon Musk, Mark Zuckerbeg, Bill Gates.
Characteristics of Entrepreneurs:
a. Enthusiastic
b. Confident
c. Hardworking
d. Enjoy challenges
e. Determined
f. Enjoy taking risks
g. Creative
Remuneration of the factors of production
Refers to money given to the owners of the factors of production.
a. Interest earned on investment
b. Workers are paid wages or salaries
c. Rental income
d. Entrepreneurs profit from the sale of providing a service or selling goods
manufactured.
Activity 16 refers to:
Activity 3 page 87 class activity
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