EMS: Financial Literacy

Introduction

Good day Students. The following is required for you to know:

  • Understand trading business concepts.
  • Understand how to calculate cost of price, selling price and mark up %
  • Demonstrate an understanding of entering calculations into CRJ and CPJ. 

This will enable the learners to post of Cost of sales and sales into CPJ AND CRJ of a trading business.

 

Task

Teaching Methods

Direct instruction: I want to introduce specific content of the CRJ AND CPJ journals and give background on the topic.
Demonstration method: I use it to show the learners how entering the journals are done step by step were done on the slide through online platforms

Classroom Activity (15 Marks)

 

Dollo traders uses a 25% profit mark up %

 

1

M Dollo increases capital by R 10 000

3

Purchased stationary by cheque  for R 1100 from Pens & Pencils

7

Sold stock, cash, to the value of R 2000

11

Paid wages by cheque, R6500

13

Received R 7500 for Rent Income

18

Bought office furniture from Furniture Traders LTD for R1 500

20

Sold goods for cash R 6000

26

L Williams settled his account R2500

27

Cash sales amounted to R2500

 

Process

Business concepts to be aware of:

Cost price: the is the amount spent on purchasing Trading stock
Mark-up %: it is the percentage of profit that the business adds to the cost price
Selling price: cost price + the mark-up %
 

Calculating the cost price, selling price and mark-up %

Selling price
(100 + Mark up %) / (100) x Cost price

Cost price
(100) / (100 + Mark up %) x Selling price

Profit
Profit= selling price – cost price

Mark-up %
(Profit) / (Cost of sales) x 100

Evaluation

Learners will do the classroom activity for an evaluation.

 

MEMO

CRJ journal (12 Marks)

Day

Doc

Details

Fol

Analysis of receipts

Bank

Sales

Cost of sales

Sundry Accounts

 

 

 

1

1

M Dollo

 

10000

10000

 

 

10000

 

Capital

7

2

Sales

 

2000

2000

2000

1600

 

 

 

13

3

Rent

 

7500

7500

 

 

7500

 

Rent income

20

4

Sales

 

6000

6000

6000

4800

 

 

 

26

5

L Williams

 

2500

2500

 

 

2500

 

Debtors control

27

6

Sales

 

2500

2500

2500

2000

 

 

 

 

 

CPJ journal ( 3 Marks)

Day

Doc

Details

Fol

Bank

Wages and salaries

Sundry Accounts

 

3

1

Pens & Pencils

 

1100

 

1100

 

Stationery

11

2

Wages

 

6500

6500

 

 

 

18

3

Furniture Traders LTD

 

1500

 

1500

 

Furniture

 

 

Conclusion

After this lesson, the learners will be able to:
•    Post transactions into CRJ and CPJ journals
•    Understand and calculate the cost of sales, selling price and mark up %

In the next lesson, we will mark the classroom activity and we will also start with the effect of transactions on the Accounting equation.

The end.

Credits

New Era Accounting for Grade 9 (Hall, Aboobaker)

Classroom Activity: H van der Merwe

Teacher Page

Heinrich van der Merwe

218083114