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## Exercise 1: End of chapter activity

Simon gets the following municipal bill for his property rates and refuse removal.

1. What city does he live in?

2. When last did he make a payment into this account, and how much was this payment for?

3. How much was the balance brought forward from his previous account?

4. How much is he being charged for property rates and refuse for the current billing period?

5. Why is the total due a negative amount?

6. What does Simon pay for property rates per year?

7. Does he get any deductions on his annual property rates?

8. Does he pay VAT on his property rates?

9. Show how the municipality calculated the R 53,18 VAT on his refuse subtotal.

1. Johannesburg

2. He paid R 3700,00 on 2013/06/25

3. R 1172,33

4. R 1646,76

5. Because Simon has paid more money into his account than is due - he is in credit.

6. R 1279,45 $$\times$$ 12 = R 15 353,40, or R 2 920 000 $$\times$$ R 0,052 580 = R 15 353,40.

7. Yes. He gets a R 65,73 deduction.

8. No. The VAT is listed at 0%.

9. R 379,86$$\times$$ 0,14 = R 53,18

Lucia receives the following account for her phone line with Neotel:

1. What is the billing period for this invoice?

2. How many days does Lucia have to pay this bill?

3. Do the numbers listed under “Effective balance due” include VAT? explain your answer.

4. When last did she make a payment to Neotel and how much was it for?

5. Does Lucia have any overdue payments?

6. List two ways in which she can pay her account?

7. List four ways in which Lucia can contact Neotel if she wants to query this invoice.

8. The Neotel invoice does not show how much VAT was added to Lucia's bill. If the total before VAT was R 606,13, calculate how much VAT was added to get the total due. Show your calculations.

1. September 2013

2. 21 days

3. Yes, they are VAT inclusive. Neotel must charge VAT on the cost of their services, and there is nothing in the invoice to indicate that VAT has not yet been added to the totals due.

4. She paid R 771,18 on 26 September 2013

5. No - her payments are up to date.

6. She can make a cash deposit at Nedbank or she can pay via Electronic Fund Transfer (EFT)

7. She can call their customer care number, she can send a fax to them, she can e-mail them or she can use their website.

8. R 606,13 $$\times$$ 0,14 = R 84,86 VAT.

Alison receives the following till slip from The General Store in Upington:

1. How did Alison pay for her shopping?

2. Calculate the total cost of VAT exempt items on the till slip.

3. Calculate the total cost of items that are subject VAT.

4. Calculate how much VAT is added to the VAT-inclusive items.

5. Show how the above three amounts make up the total due.

6. Alison paid with cash, and received R 15,50 change. This means she paid R 184,50 for her shopping. Explain why this amount is different to the Total of R 184,53.

7. How much will 1 kg of potatoes cost at The General Store?

8. If the store advertised a 20% discount on potatoes, how much will one kg of potatoes cost?

1. With cash.

2. R 66,61

3. R 103,44

4. R 103,44 $$\times$$ 0,14 = R 14,48

5. Total = R 66,61 + R 103,44 + R 14,48 = R 184,53

6. The total is rounded down to the nearest multiple of 5, to accommodate for the fact that we no longer have 1c or 2c coins in South Africa.

7. 500 g costs R 19,99, therefore 1 kg costs R 19,99 $$\times$$ 2 = R 39,98

8. R 39,98 $$\times$$ 0,20 = 7,996. R 39,98 - R 7,996 = R 31,98.

Michael receives the following invoice from Ivy Supermarket, where he has a store account:

1. In what city does Michael live?

2. How many times did Michael shop at Ivy Supermarket in April 2013?

3. How much money did he owe from his previous invoice?

4. When last did he pay money into his account, and how much did he pay?

5. Name two ways in which Michael can pay his account.

6. If Michael receives his invoice in the post on 10 May 2013, how many weeks does he have to pay his bill?

7. Show how the R 94,73 VAT is calculated.

8. If Michael can only afford to pay R 350 into his account this month, what will his opening balance for June 2013 be?

1. Polokwane.

2. 3 times.

3. R 623,95

4. He paid R 623,95 into his account on 8 April 2013.

5. He can pay via EFT or cash deposit.

6. The payment is due on 31 May, so he has 21 days to pay his account. 21 days is 3 weeks.

7. R 676,66 $$\times$$ 0,14 = R 94,73.

8. R 771,39 - R 350 = R 421,39.

9. Yes - he has no overdue payments from previous invoices.

Buffalo City Metro gives the following tariffs for electricity for schools and sports fields in the East London area:

 Energy Charge Total Rands Excl. VAT VAT Rands 14% Total Rands VAT Incl. First 2000 kWh 1,245 66 0,174 39 1,4200 Next 8000 kWh 0,924 05 0,129 37 1,0534 Above 10 000 kWh 1,299 82 0,181 98 1,4818 Minimum charge per month, or part thereof 164,328 24 23,005 95 187,3342
1. Eastwood Primary School closes for the month of December, and uses no electricity during this period. What will the school's electricity bill be, including VAT?

1. There is a minimum charge of R 187,3342.

Neotel lists the following call tariffs for calls (per minute) from a Neotel phone to landlines (the prices below include VAT):

 Neotel to landline Neotel to Neotel Local - peak R 0,34 R 0,17 Local - off peak R 0,17 R 0,17 Regional - peak R 0,46 R 0,34 Regional - off peak R 0,29 R 0,34 National - peak R 0,57 R 0,43 National - off peak R 0,33 R 0,43 After hours calling (daily between 18h00 - 07h00, plus all day on weekends and public holidays) - Free

Metrorail in Cape Town gives the following tariffs for normal Metro Class train travel from Cape Town Central Station:

 Zone (km distance) Single Week Month 1 - 10 R 6,00 R 39,00 R 117,00 Claremont, Esplanade, Hazendal, Kentemade, Koeberg Road, Maitland, Mowbray, Mutual, Ndabeni, Newlands, Observatory, Paarden Island, Pinelands, Rondebosch, Rosebank, Salt River, Thornton, Woltemade, Woodstock, Ysterplaat 11 - 19 R 6,50 R 42,00 R 126,00 Akasia Park, Athlone, Avondale, Belhar, Bellville, Bontheuwel, Century City, Crawford, De Grendel, Diep River, Elsies River, Goodwood, Harfield Road, Heathfield, Heideveld, Kenilworth, Langa, Lansdowne, Lavistown, Monte Vista, Netreg, Oosterzee, Ottery, Parow, Plumstead, Retreat, Steurhof, Tygerberg, Vasco, Wetton, Wittebome, Wynberg 20 - 30 R 7,50 R 49,00 R 147,00 Blackheath, Brackenfell, Clovelly, Eikenfontein, False Bay, Fish Hoek, Kalk Bay, Kuils River, Lakeside, Lentegeur, Mitchells Plain, Mandalay, Muizenberg, Nolungile, Nyanga, Pentech, Philippi, Sarepta, Southfield, St James, Steenberg, Stikland, Stock Road, Unibell

1. Naledi wants to take the train from the city centre to Kalk Bay. How much will a single ticket cost her?

2. How much does a monthly ticket from Kuils Rivier to the Central Station cost?

1. R 7,50

2. R 147,00