Ownership

Partnerships

Partners' salaries are deducted before the remaining profit is shared. A partnership is not a sole trader buying equipment.

CAPS

Grade 11 · Accounting · Ownership

Accounting is a system: document, journal, ledger, then the statement.

  • The papers

    Grade 11 centres on partnerships, reconciliations, fixed assets and VAT, still from source documents through to statements.

  • The logic

    Assets equal owner’s equity plus liabilities. Every entry needs a source. VAT on sales is output VAT. VAT on qualifying purchases is input VAT. Profit is not the same as cash.

  • The relation

    Remaining profit = net profit − salaries − interest on capital. What is left is shared in the agreed ratio

  • How a marker reads it

    Do not share the whole profit equally and then add the salaries on top. The salaries are inside the profit.

Each paper is 150 marks. A foreign total that does not balance is wrong even if the individual entries look neat. Show the note or the calculation the face of the statement came from.

DrCrassetequity

Worked example

A bakery in Pietermaritzburg, owned by two partners, makes a net profit of R120000. Each partner has a salary of R20000. They share the rest equally. How much does each partner receive in total?

Simplified approach

Partners' salaries are deducted before the remaining profit is shared. A partnership is not a sole trader buying equipment.

Culture note

Two partners in a Pietermaritzburg bakery, sharing one year's profit.

Formulas

Remaining profit=net profit−salaries−interest on capital

What is left is shared in the agreed ratio

Step 1 / 6

Salaries first

Salaries are R20000 + R20000 = R40000. These come out of profit before the ratio.

Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.

4. Step-by-step working

  1. 01

    Salaries first

    Salaries are R20000 + R20000 = R40000. These come out of profit before the ratio.

  2. 02

    Remainder

    R120000−R40000=R80000. Split equally, R40000 each.

  3. 03

    Each partner

    Salary R20000+share R40000=R60000.

  4. 04

    Step F — Box the answer with its unit

    Profit R120000 − salaries R40000 = R80000 to share. Each partner gets a salary of R20000 plus R40000, so R60000 each.

More worked examples

Board walkthroughs on this topic. Open one, copy the working, then try the next.

Example 1 / 20

Partners A and B have capital of R300 000 and R200 000. Interest on capital is 10% p.a. Calculate each partner's interest.

How we got there

Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.

Explain in another language · 11

1. What is the question asking?

Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Partners A and B have capital of R300 000 and R200 000. Interest on capital is 10% p.a. Calculate each partner's interest.

Before any working — hunt first

Given

Numbers and units already in the sentence: R300 · 000 and · R200 · 000 · 10%. Copy each one into a column. A name without a number is not given.

Missing

After you copy the given, the letter that still has no number is missing. The paper is pointing at: each partner's interest. Circle that word — that is the missing variable.

Find

We are required to find: each partner's interest. Write that as a symbol on the left, with a question mark, before you touch a formula.

Calculate

What we need to calculate: Interest = capital × rate. Then substitute the given, one line at a time, to get each partner's interest.

In other words — as if you have never seen this before

If you have never seen this before: Interest = capital × rate. We will name a method in words, write the formula with no numbers, then substitute one line at a time.

2. What do we already know?

Capital A R300 000, B R200 000; 10%.

3. Which method — and why this one?

Interest = capital × rate.

4. Step-by-step working

  1. 01 / 08

    Step A — Read the question twice

    Slow down. Circle the word that names the unknown. Underline every number and its unit. Do not grab a formula yet — first decide what the paper is actually asking.

    Why this step: If you can say the method in a sentence, you will pick the right formula. First-timers skip this and grab the first equation they remember.

  2. 02 / 08

    Step A2 — Hunt: Given, Missing, Find, Calculate

    Given: Numbers and units already in the sentence: R300 · 000 and · R200 · 000 · 10%. Copy each one into a column. A name without a number is not given. Missing: After you copy the given, the letter that still has no number is missing. The paper is pointing at: each partner's interest. Circle that word — that is the missing variable. Find: We are required to find: each partner's interest. Write that as a symbol on the left, with a question mark, before you touch a formula. Calculate: What we need to calculate: Interest = capital × rate. Then substitute the given, one line at a time, to get each partner's interest.

    Why this step: Do not name the letters yet. First hunt: what already has a number (Given), what has no number (Missing), the word the paper wants (Find), and which formula still contains the missing letter (Calculate).

  3. 03 / 08

    Step B — Write the given in a column

    Capital A R300 000, B R200 000; 10%.

    Why this step: A column with units stops you mixing cm with m, or minutes with seconds. Markers can also see you started correctly.

  4. 04 / 08

    Step C — Name the method in words

    Interest = capital × rate.

    Why this step: If you can say the method in a sentence, you will pick the right formula. First-timers skip this and grab the first equation they remember.

  5. 05 / 08

    Multiply

    A: 300 000×10%=R30 000. B: 200 000×10%=R20 000.

    Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.

  6. 06 / 08

    Step G — Sense-check the size

    Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.

    Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.

  7. 07 / 08

    Step F — Box the answer with its unit

    A R30 000; B R20 000.

    Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.

  8. 08 / 08

    Step H — What the marker is looking for

    On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.

    Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.

5. The answer

A R30 000; B R20 000.

Copy onto your answer sheet — in this order

Answer: A R30 000; B R20 000.

6. Check it like a marker

Adjust for capital changes during the year.

7. A trap first-timers fall into

First-timers often grab the first formula they remember, mix units (cm with m, minutes with seconds), or drop a minus sign. Write the formula in words first: “this equals that, because…”

Ntsako · fx-991ZA PLUS. Tap to calculate.