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Compile a family budget for the Benson family using John Benson's net salary of R2739.50, and provide illustrative amounts for essential and non-essential expenses.

Accounting

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Step-by-step solution

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To compile a family budget for the Benson family, we will use John Benson's net salary as the household income. Since no specific expenses are provided, we will use illustrative amounts for essential and non-essential expenses to demonstrate a typical budget structure.

  1. Determine Household Income.

    The household income is the net salary John Benson receives after all deductions.

    Household Income=Net Salary=R2739.50\text{Household Income} = \text{Net Salary} = \text{R}2739.50
  2. List Essential Expenses.

    These are necessary costs for living. The amounts below are illustrative.

    • Rent/Housing: R1000.00
    • Groceries/Food: R800.00
    • Transport: R300.00
    • Utilities (Electricity, Water): R250.00
    • Communication (Phone/Internet): R150.00
    • Medical (out-of-pocket, not covered by deductions): R50.00
    Total Essential Expenses=R1000.00+R800.00+R300.00+R250.00+R150.00+R50.00=R2550.00\text{Total Essential Expenses} = \text{R}1000.00 + \text{R}800.00 + \text{R}300.00 + \text{R}250.00 + \text{R}150.00 + \text{R}50.00 = \text{R}2550.00
  3. List Non-Essential Expenses.

    These are discretionary costs. The amounts below are illustrative.

    • Entertainment/Leisure: R100.00
    • Savings: R50.00
    • Personal Care/Miscellaneous: R30.00
    Total Non-Essential Expenses=R100.00+R50.00+R30.00=R180.00\text{Total Non-Essential Expenses} = \text{R}100.00 + \text{R}50.00 + \text{R}30.00 = \text{R}180.00
  4. Calculate Total Expenditure.

    Total expenditure is the sum of essential and non-essential expenses.

    Total Expenditure=Total Essential Expenses+Total Non-Essential Expenses\text{Total Expenditure} = \text{Total Essential Expenses} + \text{Total Non-Essential Expenses} Total Expenditure=R2550.00+R180.00=R2730.00\text{Total Expenditure} = \text{R}2550.00 + \text{R}180.00 = \text{R}2730.00
  5. Calculate the Net Balance (Surplus/Deficit).

    This shows how much money is left over or if there is a shortfall.

    Net Balance=Household Income−Total Expenditure\text{Net Balance} = \text{Household Income} - \text{Total Expenditure} Net Balance=R2739.50−R2730.00=R9.50\text{Net Balance} = \text{R}2739.50 - \text{R}2730.00 = \text{R}9.50

    Here is the compiled family budget for the Benson family:

    Family Budget for John Benson (June 2024)

    CategoryAmount (R)
    Household Income
    Net Salary (John Benson)2739.50
    Essential Expenses
    Rent/Housing1000.00
    Groceries/Food800.00
    Transport300.00
    Utilities250.00
    Communication150.00
    Medical (out-of-pocket)50.00
    Subtotal Essential2550.00
    Non-Essential Expenses
    Entertainment/Leisure100.00
    Savings50.00
    Personal Care30.00
    Subtotal Non-Essential180.00
    Total Expenditure2730.00
    Net Balance9.50
    The family budget for the Benson family shows a total household income of R2739.50, total expenditure of R2730.00, and a net balance of R9.50.\boxed{\text{The family budget for the Benson family shows a total household income of R2739.50, total expenditure of R2730.00, and a net balance of R9.50.}}
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