When tendai started his new hair salon, it cost him R25000 to set up his business. He has savings of R10000 and borrowed R15 000 for the bank. The money was used to to buy kiosk, furniture, hair equipment and hair products. He hs a worker that help him with some of the male haircuts and pays his worker a salary of R2000 per month. His other exenses include water and electricity of R650 and hair products of R1000.

 The hair salon generates an income of R12000 a month. Tendai has opened a savings account for the business of R6000 and earns 5% interest in the savings account every month.Tendai pays himself a salary of R5000 a month.

 

1. Draw Tendai statement of net worth for the month
2. Calculate the profit or loss of the business
3. How much interest would he earn fro his savings
4. Classify the accounts under the following headings

		income	expense	liability
4.1	Interest on saving account
4.2	Loan ABC bank

 

1. Differentiate between personal income and business income.