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EMS-Mock Exam Grade 8 Paper 1 - Memorandum Instructions:: Www.e-Classroom - Co.za
EMS-Mock Exam Grade 8 Paper 1 - Memorandum Instructions:: Www.e-Classroom - Co.za
Grade 8
Paper 1- Memorandum
Instructions:
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Section A: Financial literacy
1.1 Match the term from column A to the definition in column B and write your answers in the blocks provided.
1.2 True or false: Answer true or false to the following questions and provide an explanation for your choice. (5)
1.2.1 Income and expenses are recorded in the nominal section in the general ledger.
True, they are recorded in the nominal section, not the balance sheet section.
1.2.2 For every debit, there is another debit entry.
False, for every debit, there is a credit entry (double entry rule)
1.2.3 Cash float have a short lifespan; therefore, it’s classified as a non- current asset.
False, cash float is a current asset, as it has a short life span.
1.2.4 Consumables are referred to as an expense.
True, as consumables are quickly consumed, they don’t hold enough value to be considered an asset.
1.2.5 A transaction is an agreement between a consumer and a producer to exchange something of value.
True, when a buyer and a seller make a financial agreement, it is referred to as a transaction.
Total for Question 1: 10
2.1 Do you think that its necessary to have an analysis of receipts and bank column in the Cash Receipts Journal?
Give reasons for your answer. (2)
It is necessary to have both columns- the bank amount is the total for the day, as well direct payments into the
bank. (The bank column represents all the debits, because with every transaction that causes an increase in the
balance of the bank account, we will debit the bank account, and credit one or more other accounts.) The
analysis column can be thought of as the “till” or “cash register” column. (The purpose of this column is
to show that various forms of cash (i.e. hard cash and cheques) are collected in the cash register first, before
these funds are periodically (sometimes daily) deposited into the bank account.)
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2.2 Audrey started her own mobile beauty business in December 2019. She’s contracted by large firms to make
weekly “pamper” visits for all their staff. Audrey has two therapist that she employs on a part time basis for one
call out per week. Use the information provided below to analyse the transactions according to the accounting
equation. (8)
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Question 3: Case studies
3.1 Use the transactions shown below to complete the cash receipts journal of Dr. Tracey Brandt for June 2019. (10)
Interest
87 6 Firm bank 150 150 150 (1)
earned
3.2 Post the Cash receipts and Cash payments journal of Brown’s Plumbing to the General ledger on 31 July 2019.
Total or balance the necessary accounts. (20)
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Cash Payments Journal of Brown’s plumbing for July 2019
D D Sundry accounts
o A Name of Payee Bank Wages Amount Fol Details
c y
002 Plunger and 750 750 Consumable goods
Taps
003 5 Cash 280 280
004 10 Mr D Brown 300 300 Drawings
006 12 Cash 548 548
Drawings
July 10 Bank CPJ 300
2019
Bank
July 31 Total receipts CRJ 68 500 July 31 Total Payments CPJ 1 878
2019 2019
Balance c/d 66 622
68 500 68 500
Aug 1 Balance b/d 66 622
2019
Wages
July 31 Bank CPJ 828
2019
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Consumable goods
July 31 Bank CPJ 750
2019
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