Statements

Financial statements

On the statement of financial position, assets equal equity plus liabilities. This is a statement, not a new purchase.

CAPS

Grade 11 · Accounting · Statements

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

    A = OE + L. The statement of financial position must balance

  • How a marker reads it

    Do not add the loan to the assets. A loan is a liability.

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.

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Worked example

At year end a partnership has equipment of R70000, bank of R16000 and a loan of R10000. Calculate total assets and equity.

Before any working — hunt first

Given

Numbers and units already in the sentence: R70000 · R16000 and · R10000. 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: total assets and equity. Circle that word — that is the missing variable.

Find

We are required to find: total assets and equity. Write that as a symbol on the left, with a question mark, before you touch a formula.

Calculate

Write A = OE + L with empty letters. Cross out every letter that already has a number. Calculate the letter that is still standing — that gives total assets and equity.

Simplified approach

On the statement of financial position, assets equal equity plus liabilities. This is a statement, not a new purchase.

Culture note

A partnership in Pietermaritzburg, drawing up the year-end statement.

Formulas

A=OE+L

The statement of financial position must balance

Step 1 / 6

Assets

Equipment R70000+Bank R16000=R86000.

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

    Assets

    Equipment R70000+Bank R16000=R86000.

  2. 02

    Equity

    Assets R86000 − loan R10000 = equity R76000.

    OE=A−L
  3. 03

    Check

    R76000 + R10000 = R86000. The statement balances.

  4. 04

    Step F — Box the answer with its unit

    Assets R70000 + R16000 = R86000. Equity R76000 + loan R10000 = R86000.

More worked examples

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

Example 1 / 20

Credit sales R180 000; cash sales R120 000; debtors' allowances R6 000. Calculate net sales.

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: Credit sales R180 000; cash sales R120 000; debtors' allowances R6 000. Calculate net sales.

Before any working — hunt first

Given

Numbers and units already in the sentence: R180 · 000 · R120 · 000 · R6 · 000. 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: net sales. Circle that word — that is the missing variable.

Find

We are required to find: net sales. Write that as a symbol on the left, with a question mark, before you touch a formula.

Calculate

What we need to calculate: Net sales = sales − returns. Then substitute the given, one line at a time, to get net sales.

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

If you have never seen this before: Net sales = sales − returns. 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?

Sales and allowances.

3. Which method — and why this one?

Net sales=sales−returns.

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: R180 · 000 · R120 · 000 · R6 · 000. 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: net sales. Circle that word — that is the missing variable. Find: We are required to find: net sales. Write that as a symbol on the left, with a question mark, before you touch a formula. Calculate: What we need to calculate: Net sales = sales − returns. Then substitute the given, one line at a time, to get net sales.

    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

    Sales and allowances.

    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

    Net sales=sales−returns.

    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

    Calculate

    180 000+120 000−6 000=R294 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

    R294 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

R294 000.

Copy onto your answer sheet — in this order

Answer: R294 000.

6. Check it like a marker

Allowances reduce sales.

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.