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G 11 Financial Management Question 6

G 11 Financial Management Question 6. QUESTION 6. Drawing up a Budget Calculate your combined GROSS income . Calculate your NET income by making the following deductions:

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G 11 Financial Management Question 6

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  1. G 11 Financial Management Question 6

  2. QUESTION 6 Drawing up a Budget • Calculate your combined GROSS income. • Calculate your NET incomeby making the following deductions: • Tithe: Deduct a minimum of 10% from your gross salary for your tithe, plus any other offerings such as Faith Promise, which the Lord might tell you to give. (1) • Pension or Retirement Fund: Remember that 7.5% of your salary paid into a pension fund is non- taxable. Decide on the amount you would pay into a pension scheme. (1) • Tax: Calculate your tax. Consult the Tax Chart and show all your calculations. (Remember the rates are calculated individually on an annual and not a monthly salary scale) (4)

  3. Drawing up a Budget 3. Draw up a budget on Excel. Include the following items and expenses and apportion your disposable income accordingly: • Savings: Indicate the different short and long –term methods of saving, that you have chosen in order to reach your financial goals stated above. Remember that 10 to 20% of your income should be saved. This includes assurance. • All the expenses involved in running a home. (14)Make sure that your expenditure does not exceed your income. [20]

  4. Rubric for Drawing up a Budget

  5. 2010/11 STATUTORY RATES OF TAX

  6. CALCULATION OF TAX • Calculate tax individually on yearly income • Deduct 7.5% from gross annual income (pension). • Calculate annual tax on taxable income for each spouse using tax table. • Divide annual tax by 12 to get monthly tax. • Add the monthly tax of each spouse and deduct from combined gross income to give net income.

  7. Tax Calculation Spouse # 1. earns R 8000 pm (96000 pa) • 7.5% of annual income is non taxable) = R7200 • Taxable annual income = 92.5% of 96000 = 88800 • Annual Tax (18% of 88800) = R15984 • Monthly Tax (15984 ÷ 12) = R1332 Spouse # 2.` earns R 13000 pm (156000 pa) • Taxable annual income = 92.5% of 156000 = 144300 • Annual Tax 25200 + (25% of 4300) = 26275 • Monthly Tax (R 26275 ÷ 12) = R 2190 • Combined monthly tax (R1332 + R2190) = R3522 • Net monthly income (R21000 – R3522) = R 17478(4)

  8. APPORTIONING INCOME • Tithe 10% • Housing 25% • Food 15% • Transportation (Car)15% • Savings 5% • Debt5% • Other (Including Tax)25%

  9. EXAMPLE OF A MONTHLY BUDGET

  10. 7. PUNCTUALITY in submission of Work • Task handed in on due date, complete. (5)

  11. 8. Rubric for Presentation • Task was neatly bound & accurately typed; • Each question was clearly labelled, included mark allocation & was easily readable; • A Table of Contents was included & the pages numbered; • It was creative & attractive & included task sheet, Peer Assessment form & acknowledgement of sources. • A consistency in font & format ( 8-10 (8-10)

  12. 9. Peer Assessment • Assess your partner on his/her co operation and participation in the project, on the form given. Discuss the amount of work done by each of you and both of you must negotiate a percentage of the mark and enter this in the space provided on the rubric. (10)

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