Grade 8 EMS Guide

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INTRODUCTION
This manual provides Grade 8 teachers and learners with the followings
benefits:
- It has been developed using the amended EMS CAPS Document which is
supposed to be implemented at the beginning of the year 2020.
- It provides a clear structure with regard to time frames within which topics and
content must be covered and topics and content explained are in line with the
amended Annual Teaching Plan.
- Both amendments of Annual Teaching Plan and Programme of Assessment are
provided.
- Topics and content in this manual follow each other as in the amended Teaching
Plan.
- The manual provides definitions of concepts, discussions, tables, graphs and
pictures where necessary.
- It is user-friendly for teachers, learners and selected parents.
- Transactions of the same type especially in Financial Literacy, have not been
repeated to avoid fruitless time consumption.
- It also caters for learners who are ‘not so intelligent’.
- Both knowledge to be gained and skills to be developed have been catered for.
- Glossary (definitions of concepts) has been provided at the end of the manual,
arranged per term and per topic.


ACKNOWLEDGEMENTS

- My father (J.H. Kokoi) who ‘forced’ me to take the teaching profession and be
where and what I am to date.
- My former commercial subjects teachers and lecturers.
- My wife (Mantshadi/Mahlaetsi) who encouraged me to develop this manual.
- My colleagues in curriculum facilitation for their support and advises.
- National Government and National Department of Education for providing
legislation and Annual Teaching Plan and Programme of Assessment followed in
this manual respectively.
- All people who made the necessary contributions but not mentioned.
- Free State Department of Education for the emblem used on the cover page.
- If any copyright infringements have been made, the author is more than prepared
to correct any errors after being notified, even though that, that has been avoided
at all costs.
NOTE: IT IS ILLEAGAL TO PHOTOCOPY ANY PAGES FROM THIS BOOK FOR FINANCIAL GAINS WITHOUT WRITTEN PERMISSION OF THE AUTHOR.
PHOTOCOPYING SELECTED PAGES FOR EDUCATIONAL PURPOSES IS HIGHLY ACCEPTABLE AND ENCOURAGED FOR LEARNERS’ NOTES AND ASSESSMENT.




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TOPICS and CONTENT
TERM 1

 GOVERNMENT (ECON) ……………………………………………………………... 7
 NATIONAL BUDGET (ECON) ………………………………………………………. 9
 STANDARD OF LIVING (ECON) …………….……………………………………. 14
 ACCOUNTING CONCEPTS (FIN. LIT.) ………………………………………….. 16
 SOURCE DOCUMENTS ……………………………………………………………. 18

TERM 2

 ACCOUNTING CYCLE (FIN. LIT.) ………………………………………………... 22
 ACCOUNTING EQUATION – Incomes (FIN. LIT.) ……………………………... 25
 CASH RECEIPTS JOURNAL (Service businesses) (FIN. LIT.) ……………... 26
 FACTORS OF PRODUCTION (ECON) …………………………………………... 30
 MARKETS (ECON) …………………………………………………………………. 32

TERM 3

 ACCOUNTING EQUATION – Payments (FIN. LIT.) …………………………… 34
 CASH RECEIPTS JOURNAL ……………………………………………………….35
 CASH PAYMENTS JOURNAL (Service businesses) (FIN. LIT.) ……………. 35
 COMBINED CRJ AND CPJ (FIN. LIT.) …………………………………………... 37
 FORMS OF OWNERSHIP (ENTREP) ……………………………………………. 39

TERM 4

 GENERAL LEDGER (FIN. LIT.) …………………………………………………… 44
 TRIAL BALANCE (FIN. LIT.) ………………………………………………………. 51
 MANAGEMENT FUNCTIONS (ENTREP) ……………………………………...… 52

ADDITIONAL

 NON-EXAMINABLE CONTENT …………………………………………………….55
 GLOSSARY ………………………………………………………………………….. 57




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TERM 1
WEEK ………
GOVERNMENT


1. DEFINITION

- It is the group of people with supreme powers to manage, run and control the country
at different levels.
- If this group of people is elected by citizens, it is called a democratic government.
- The one that is not elected is called an autocratic government (dictatorship).

2. LEVELS OF THE GOVERNMENT

2.1 National /Central government
It is the highest level of the government in the country.
- It drafts laws (Acts) of the country and is responsible for the overall running of the whole
country.
- It is led by the State President, Deputy President and Ministers.

2.2 Provincial/Regional government
It is the second level of the government after the national government.
- It is responsible for the running of the province and is funded by the national government.
- It is led by the Premier and Members of Executive Committees (MECs).

2.3 Local government
It is the third level of the government.
- It is responsible for the running of the municipality and is funded by the provincial
government.
- It is led by the Major and Councillors.

3. ROLES OF THE GOVERNMENT

NOTE:
- The Legislative draft and passes laws
- The Executive implement laws
- The Judiciary make decisions according to the law (independent of the
government)




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3.1 GOVERNMENT ROLE IN ASSISTING HOUSEHOLDS:
As consumers of goods and services

- Provide public goods (food parcels) & service (electricity) to satisfy community needs.
- Provide goods and services that are not provided by the business sector, e.g. Post office as
it does not generate high income for businesses.
- Provide subsidies for production of basic foodstuff like bread and milk because they are of
necessity not luxury, consumers will pay less for those goods.
- Provide social grants to the disadvantaged (old aged, disabled, orphans, etc) to enable them
to buy goods and services.

3.2 GOVERNMENT ROLE IN ASSISTING HOUSEHOLDS:
As producers of goods and services

- Employ workers from households as civil servants in different government departments such
as teachers, police, nurses, municipal workers, etc.
- Employ workers from households in public corporations (government-owned businesses/
state-owned enterprises) such as ESKOM, SABC, TRANSNET, etc.
- Provide households with business skills and knowledge of starting and running the business.
- Offer financial assistance to households for those intending starting new businesses.

3.3 GOVERNMENT ROLE IN ASSISTING BUSINESSES:
As consumers of goods and services

- Provide infra-structure (transport) in a form of roads, bridges, harbours, airports, etc, for
businesses to use in their business activities.
- Provide infra-structure (services) in a form of traffic control, police control, fire brigade,
hospital medical assistance, etc.
- Provide infra-structure (water, electricity, sanitation) to create conducive environment for
business to operate.
- Protect natural resources which will be used by businesses in production of goods and
services, e.g. protection of forestry-businesses use it produce furniture.

3.4 GOVERNMENT ROLE IN ASSISTING BUSINESSES:
As producers of goods and services

- Offer financial assistance to new businesses, developing businesses and other exporting
businesses.
- Offer support and advice to businesses in the form of workshops, manuals, training, etc.
- Pass laws that protect the rights of employers in their business activities, e.g. Labour
relations act, competition act, companies act, etc.
- Produce goods and services which businesses cannot produce, e.g. Broadcasting (SABC),
electricity (ESKOM), transport (TRANSNET), etc.

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SPENDING BY DIFFERENT LEVELS OF THE GOVERNMENT

NATIONAL GOVERNMENT
HEALTH, EDUCATION, FINANCE, PUBLIC WORKS, SAFETY
AND SECURITY, PROVINCIAL GOVERNMENTS, SOCIAL
DEVELOPMENT, PUBLIC WORKS, etc.



PROVINCIAL GOVERNMENT
PROVINCIAL HOSPITALS, PROVINCIAL ROADS, LOCAL
GOVERNMENTS, etc.



LOCAL GOVERNMENT/MUNICIPALITIES
REFUSE REMOVAL, LAND USAGE, MUNICIPAL ROADS, PARKS,
LIBRARIES, ELECTRICITY SUPPLY, WATER SUPPLY,
SEWERAGE, SANITATION, FIRE BRIGADE, etc.




WEEK ……….
NATIONAL BUDGET

1. DEFINITION

- It is a plan of how the government intend to spend its income/revenue.
- Drawn by Department of Finance: National treasury through inputs from ministers of
different government departments
- Presented to the parliament and the nation by the Minister of Finance
- Used From 1 April to 31 March the following year
- National budget drawn to be used for a period of three years is called Medium Term
Expenditure Framework (MTEF)

NATIONAL BUDGET 01 APR – 31 MAR
GOVERNMENT REVENUE RXX XXX XXX
TAXATION RXX XXX XXX XXX
LOANS RX XXX XXX XXX
INCOMES R XXX XXX XXX
DONATIONS RXX XXX XXX
GOVERNMENT EXPENDITURE RXX XXX XXX
EDUCATION RXX XXX XXX XXX
SOCIAL PROTECTION RX XXX XXX XXX
ECONOMIC AFFAIRS RX XXX XXX XXX
PUBLIC SERVICES RX XXX XXX XXX
HOUSING RXXX XXX XXX
HEALTH
PUBLIC ORDER AND SAFETY RXX XXX XXX
DEFENSE RXX XXX XXX
OTHER R XXX XXX
SURPLUS/DEFICIT R XXX XXX



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