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Za Ems 1703080907 Financial Literacy Accounting Concepts Grade 8 Term 1 Notes

The document outlines key concepts of financial literacy for Grade 8 students, including definitions of sole traders, capital, owner's equity, income, expenses, profit, and losses. It emphasizes the importance of understanding financial transactions, liabilities, assets, and the accounting equation. Additionally, it introduces subsidiary journals and source documents as essential tools for tracking and evidencing financial activities.

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Rolandi Viljoen
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131 views2 pages

Za Ems 1703080907 Financial Literacy Accounting Concepts Grade 8 Term 1 Notes

The document outlines key concepts of financial literacy for Grade 8 students, including definitions of sole traders, capital, owner's equity, income, expenses, profit, and losses. It emphasizes the importance of understanding financial transactions, liabilities, assets, and the accounting equation. Additionally, it introduces subsidiary journals and source documents as essential tools for tracking and evidencing financial activities.

Uploaded by

Rolandi Viljoen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Grade 8

Financial Literacy
Term 1 CAPS

F
inancial literacy is a crucial aspect of our daily lives, empowering
individuals to make informed and responsible decisions regarding
their finances. In Term 1, you will dive into fundamental concepts
that form the backbone of financial literacy. This introductory passage
aims to shed light on key terms and principles integral to understanding
financial transactions and management.

Sole Trader: Debit and Credit:


A sole trader refers to an individual Debit and credit are essential components
who operates and owns a business of financial transactions. Debit refers
independently. In this business structure, to an entry that increases assets or
the owner is personally responsible expenses while credit signifies an entry
for all aspects, including profits, losses, that increases liabilities, owner's equity,
and liabilities. or income.

Capital and Owner's Equity: Income, Expenses, Profit, and Losses:


Capital represents the initial investment Income denotes the money earned by
made by the owner into the business. a business while expenses are the costs
Owner's equity encompasses the owner's incurred in its operation. Profit is the
investment, profits, and any additional positive difference between income and
contributions, serving as a measure of the expenses while losses occur when expenses
business's overall value. exceed income.

Transactions and Liability:


Financial transactions involve the exchange
of money or goods between two parties.
Liability refers to the business's obligations
or debts, often arising from transactions.

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Grade 8

Financial Literacy Term 1 CAPS

Banking, Cash Receipts, and Cash


Assets: Payments:
Assets are resources owned by a business, Banking involves managing financial
such as cash, inventory, or property, that transactions through a bank. Cash receipts
contribute to its overall value. refer to money received by a business while
cash payments are funds disbursed.

Subsidiary Journals: Accounting Equation (A = OE + L):


Subsidiary journals are specialised The accounting equation Assets = Owner's
accounting records that categorise Equity + Liability (A = OE + L) is a
and track specific types of transactions, fundamental principle that highlights the
providing a detailed overview of balance between a business's resources,
financial activities owner's investment, and obligations.

Source Documents:
Source documents are the original records
that serve as evidence of a financial
transaction, such as invoices, receipts,
Understa
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these fou ding
and contracts.

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ial litera
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