# EMS: Financial Literacy

Introduction

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

• 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.

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