# Accounting Grade 12 KZN Prelim 2015 Question Paper

> Grade 12 Accounting question paper from the KZN Prelim 2015, 22 pages. Read online or get the free PDF download, memo linked when available.

- Page: https://www.hlayiso.com/library/2015-kzn-prelim-qp/9f091215-b2b7-4884-b356-70dda6ba21ba
- Updated: 2026-09-27
- Subject: Accounting
- Grade: Grade 12
- Document type: Question paper
- Year: 2015
- Exam period: KZN Prelim
- Curriculum: CAPS
- Pages: 22

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## About this document

Accounting · Grade 12 · KZN Prelim · 2015. Question paper, 22 pages. Read online or download the PDF.

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### Page 1

Basic Education

KwaZulu-Natal Department of Basic Education
REPUBLIC OF SOUTH AFRICA

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" ACCOUNTING Hi
t PREPARATORY EXAMINATION ‘
om SEPTEMBER 2015 :
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NATIONAL
SENIOR CERTIFICATE
- GRADE 12°

‘MARKS: 300
(
TIME: 3 HOURS

N.B. This question paper consists of 21 pages.

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STR RT TTT T TLR = cmaaiieineasoamaa

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Accounting tember 2015 Preparatory Examination
NSC .

INSTRUCTIONS AND INFORMATION

Read the following instructions carefully and follow them precisely.
1. ALL the questions.

2. A special ANSWER BOOK is provided in which to answer ALL the questions.

3. Show workings in order to achieve part-marks.
4. You may use a non-programmable calculator.
5. You may use a dark pencil or blue/black ink to answer the questions.

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”

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*Accounti ing

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eptember 2015 Preparatory Examination
NSC

QUESTION 1: 36 Marks; 22 Minutes

Topic of the question

This question integrates:

Bank reconciliation

Financial accounting
>» CRJ,CPJ, Bank Reconciliation Statement
Managing resources

» Internal control

QUESTION 2: 85 Marks; 51 Minutes

Topic of the question

This question integrates:

Concepts, Income statement,
Asset Disposal and Balance
Sheet notes

Financial accounting

» Concepts, Income Statement, Asset Disposal
and Balance Sheet notes

QUESTION 3: 67 Marks; 40 Minutes

Topic of the question

This question integrates:

Manufacturing

Managerial accounting

> Direct material cost

» Factory overheads

> Production cost statement

>» Analysis and interpretation of unit costs and
break-even point

Managing resources
>_ Internal control

QUESTION 4: 55 Marks; 33 Minutes

Topic of the question

This question integrates:

Cash Flow and interpretation of
| information

Financial accounting

> Cash Flow Statement
>» Calculations and financial indicators
» Analysis and interpretation

QUESTION 5: 23 Marks; 14 Minutes

Topic of the question

This question integrates:

Stock valuation and internal
control

Managing resources

« Inventory valuation: specific identification and
internal control: problem-solving

QUESTION 6; 34 Marks; 20 Minutes

Topic of the question

This question integrates:

Cash Budget and internal
control

Managerial accounting
e Analyse and interpret a cash budget
Managing resources

# Internal control and internal audit

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Accounting

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Nsc

QUESTION 1 (36 Marks; 22 Minutes)

BANK RECONCILIATION

You are provided with information related to Quick Traders on 31 July 2015.

REQUIRED:

11

1.2

1.3

14

1.5

Indicate whether the following statements are TRUE or FASLE. Write only
‘true’ or ‘false’ next to the question number (i) — (iv) in the answer book.

(i) A post dated cheque issued by Quick Traders on 24 July 2015 but

dated 24 August 2015, will only be entered in the Cash Payments

Journal of Quick Traders on 24 August 2015. (1)
(ii) A debit balance on the bank statement reflects an unfavourable balance. (1)

(iii) | Service fees and interest on an overdraft will be recorded as bank
charges in the Cash Payment Journal. (1)

(iv) | Aninternal auditor should inspect the bank reconciliation statement at
the end of each month. (1)

Calculate the correct totals for the Cash Receipts Journal and Cash Payment
Journal for July 2015. (14)

Prepare the Bank Reconciliation Statement on 31 July 2015. (11)

Explain how cheque No. 908 should be treated when preparing the financial
statements as at 31 July 2015 the end of the financial year. (2)

Refer to information G. The bookkeeper has decided to write off the amount
of R50 000.

« Which GAAP/IFRS principle will the bookkeeper be applying? (1)

« The bookkeeper wants to prevent a similar problem in future. Give TWO
suggestions to improve internal control in this regard. (4)

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, Accounting September 2015 Preparatory Examination
‘ . NSC
INFORMATION:
A. — The following items appeared in the Bank Reconciliation Statement on 30 June 2015
DEBIT CREDIT
Debit balance as per Bank statement 19 310
Outstanding deposit (10 May 2015) 50 000
Outstanding cheques:
No.892 (1 January 2015) 12 340
No.897 (10 June 2015) 8 700
Debit balance as per Bank Account 9 650
50 000 50 000
B. Before receiving the July 2015 Bank Statement, the following provisional

totals appeared in the Cash Journals on 31 July 2015:

: e CRJ R146 970
} « CPJ R 68 900

C. The Bank Statement for July reflected the following:

Bank charges R1 300.

Interest on an overdraft R920.

Debit order for insurance R600.

Direct deposit of R1 800 for rent received from tenant.

¢*@e# #

Dz. Cheque no. 892 must be cancelled.
E. Cheque no. 897 did not appear in the July 2015 Bank Statement.

F. The outstanding deposit (10 May 2015) cannot be traced and the cashier at
that time has since disappeared. It was decided to write off this amount.

G. A cheque received from Zulu Traders dated 25 November 2015 for R15 000
was not recorded in the July 2015 Cash Receipts Journal. It was also not
deposited in July.

H. The following items appear in the July 2015 Cash Journals but not on the
Bank Statement:

e Adeposit of R18 000, dated 27 July 2015.
e Cheque No. 905, R1 200, dated 31 July 2015.

e Cheque No. 908, R3 100, dated 15 December 2015 was issued to a
creditor ZZ Nongoma for supplying goods.

L. The Bank Statement on 31 July 2015 reflects a favourable bank balance
of R44 040.

coe ote eum

36

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Accounting eptember 2015 Preparatory Examination +»
Nac

QUESTION 2 (85 Marks; 51 Minutes)

INCOME STATEMENT, NOTES TO BALANCE SHEET

You are provided with information relating to Grey Limited. The company sells TV
game stations and repairs TV game stations for their customers.

REQUIRED:

2.1 Choose the correct word/s from those given below to. complete the sentences:

working capital financial asset operating expense
cash and cash equivalents | operating profit borrowed capital
qualified finance cost unqualified

2.1.1. The difference between current assets and current liabilities is referred
toas...

2.1.2 The audit report states: “the financial statements fairly present, in
all material respect.” This will be regarded as a/an ... report.

2.1.3 Interest on the bank overdraft in the Income Statement is classified
as a/an ...

2.1.4 A fixed deposit which will mature within the next financial year will
be regarded as part of ... in the Balance sheet. (4)

2.2 Prepare the Asset Disposal Account to record the sale of vehicles.
See information B, numbers 7 and 8. (10)

2.3 Prepare the Income Statement (Statement of Comprehensive Income) for
the year ended 30 June 2015. (51)

2.4 Prepare the following notes to the Balance Sheet:
2.4.1 Ordinary share capital (8)

2.4.2 Retained income (12)

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Accounting eptember 2015 Preparatory Examination
. NSC

INFORMATION:

A. Figures extracted from the Pre-adjustment Trial Balance on 30 June 2015:

Ordinary share capital (1 July 2014) R5 225 000
Retained income (1 July 2014) 770 000
Trading stock 197 000
Debtors control 85 000
Creditors control 78 800
Land and buildings 8 100 000
Vehicles 1 900 000
Equipment 600 000
Accumulated depreciation on vehicles 815 000
Accumulated depreciation on equipment 180 000
Mortgage loan from: Pinetown Bank 80 000
, Medical aid fund 41 000
Pension fund 32 000
Provision for bad debts 4 200
SARS: PAYE 67 000
SARS: Income tax (provisional tax payment) DR 140 000
Sales 7 200 000
Debtors allowances 30.000
Cost of sales 4 780 000
Rent income 93 800
Interest income 12 000
Interest expense 7 000
Salaries and wages 270 000
Bad debts recovered 600
Employers contribution to Pension Fund and Medical aid 72 000
Audit fees 68 000
Directors fees 470 000
) Consumable stores 12 000
Insurance 148 000
Sundry expenses 2
Dividends on ordinary shares (interim) R100 000

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Accounting

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ptember 2015 Preparatory Examination +
NSC .

INFORMATION:

B Adjustments and additional information:

1.

A credit note issued to a debtor, Mpisane dated 27 June 2015 was not
recorded in the books. The credit note was for:

e Goods returned by Mpisane, R 7 200. The mark-up on goods sold
was 50% on cost.

No entries have been made for stock stolen on 7 June 2015. The
insurance company has informed Grey Limited that they have
transferred R42 000 into the business bank account in respect of the
insurance claim. Grey Limited bears 20% of any stock loss.

The physical stock count on 30 June 2015 revealed the following on
hand:

® Trading stock, R144 000
* Consumable stores R3 000

An employee was left out of the Salaries Journal for June 2015.
The details from his pay-slip were:

Gross salary R10 000
PAYE deduction (18%) R1 800
Pension deduction (7,5%) R_ 750
Medical aid R1 200 _
Net salary R6 250

The business contributions were:

« Pension fund 10,5% of gross salary
« Medical aid.: Rand-For-Rand basis

The provision for bad debts must be decreased by R340.

The tenant has paid his rent for July 2015 in advance. NOTE: The rent
was increased by R700 on 1 April 2015 and that the premises were
rented since the beginning of the financial year.

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co
, Accounting ‘September 2015 Preparatory Examination
. ‘ nse

7. An old vehicle was sold for R70 000 cash on 31 December 2014.
The fixed asset register revealed the following regarding this vehicle:

Cost price R 800 000
Accumulated depreciation on 1 July 2014 R 750 000

This transaction has not yet been recorded by the bookkeeper.

8. Make provision for depreciation as follows:

® Vehicles at 15% p.a. on cost price
e Equipment at R39 500

9, The authorised share capital comprises 3 000 000 ordinary shares.

* There were 2 000 000 ordinary shares issued at the beginning of
the financial year.

e A further 250 000 new ordinary shares were issued on
1 May 2015 at R2,50 each. These shares qualify for final dividends.

« The directors decided to buy back 10 000 shares from Z. Zondi at
R3,10 per share. An electronic transfer was made for the full amount.
Zondi is still entitled to final dividends.

10. Final dividends were declared at 12 cents per share.

11. After taking into account all adjustments the Net profit for the financial
year amounted to: Before tax R1 200 000.
After tax R840 000.

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Accounting D own | oa d e d fro m h | AY!ISO-COM. tory Examination
NSC

QUESTION 3 (67 Marks; 40 Minutes)

MANUFACTURING

3.1. ZWIDE PAMPERS MANUFACTURING

Robert Zwide owns Pampers Manufacturers. The business produces nappies
for babies. The financial year ended on 28 February 2015. They have been
negatively affected by electricity load shedding.

REQUIRED:

Prepare the following for the Financial year ended 28 February 2015:

3.1.1. Note for Direct labour cost (13)

3.1.2 Note for Factory overhead cost (21) ( ;

3.1.3. Production Cost Statement on 28 February 2015 (11)
INFORMATION:

1.

BALANCES ON 1 MARCH 2014

Raw material stock R600 000

Work-in-process stock R80 900

Consumable stores stock: Factor R11 000

The following stock were purchased on credit:

* Raw material R2 000 000 C
« Consumable stores: Factory R50 000

No entry was made for the carriage of the following stock:

e Raw material R18 000
« Consumable stores : Factory R2 000

Depreciation on factory plant and equipment amounted to R76 500.

Factory maintenance for the year amounted to R8 000. A further amount of
R3 000 is owed to Williams Works for repairs done to a factory machine on
26 February 2015.

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Accounting September 2015 Preparatory Examination
. . NSC

6. An amount of R80 000 was paid for water and electricity (this cost must be
shared in the ratio 7:3 between the factory and the office respectively).

7. Rent is allocated between the factory and the administration office on the
basis of floor area. The factory comprises 560 square meters, while the office
comprises 280 square meters. The annual rent for the entire premises was

R33 600.
8. Factory insurance amounted to R72 000.
9. Salaries and wages:

e The 30 factory workers who make nappies are each required to be on duty
for 8 hours per day.

* Per month, there are 4 weeks of 5 working days each. The normal rate is
R25 per hour per person.

« Although load shedding is a problem, workers are paid for the full hours
on duty, according to union agreements.

* In order to make up for the lost time, 15 factory workers each worked 20
hours overtime per month from 1 October 2014 to 28 February 2015.
The overtime rate is double the normal rate.

« The factory foreman is paid a salary of R8 000 per month. Due to problems
caused by the load shedding, he was required to work longer hours and did
not take holidays. His salary was increased by R1 500 per month from
1 October 2014.

« The factory cleaner worked for 48 weeks in the year and was paid a wage
of R800 per week.

10. BALANCES ON 28 FEBRUARY 2015

Raw material stock R418 000
Work-in-process stock R850 700
Consumable stores stock: Factory __ . R8 000

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nse

Accounting

3.2. ZWIDE PAMPERS MANUFACTURING: ELETRICITY LOAD-SHEDDING
PROBLEM

INFORMATION:

1. Although the business aims at producing 900 000 nappies per year,
during the current financial year they produced only 848 000. Robert
Zwide blames this on the load-shedding.

2. They sell the nappies at a mark-up of 40% on cost.

3. Load-shedding by Eskom occurred from 1 October 2014 to 28 February
2015 on 3 days per week for 3 hours per day.

4. Refer to information 9 in question 3.1 above for further information on
salaries and wages.

REQUIRED:

3.2.1 Calculate:

*# The number of unproductive hours, for all worker, that were caused
due to load-shedding.

e The Rand amount lost on direct wages as a result of the load
shedding.

3.2.2 Apart from these unproductive hours, explain TWO other ways in
which load shedding have negatively affected the business.

3.2.3 What advice would you provide to Robert to counteract the effect of
load shedding? Provide TWO points.

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(5)

(3)

(4)

(4)

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{

)

Accounting

3.3. DIEGO COSTA MANUFACTURING

Diego Costa Manufacturing manufactures watches. The financial year ended

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on 28 February 2015.

3.3.1 Calculate the number of units that Diego Costa Manufacturing needed

3.3.2 Comment on the number of watches they are producing. Quote figures

NSC

to produce in order to break even in 2015.

iso.com

September 2015 Preparatory Examination

or financial indicators to support your answer. (Refer to 3.3.1)

INFORMATION

A Total cost and cost per unit for 2015.

[ — Total cost Cost per unit

Variable costs 892 000 111,50
Direct material cost 480 000

Direct labour cost 264 000

Sales and distribution cost 148 000

Fixed costs 452 000 56,50
Factory overheads 344 000

Administration costs 108 000

Total cost 1 344 000

B. Total number of watches produced during this financial year was 5 000.

Cc. Selling price is R311, 50 per watch.

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(4)

(2)

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NSC

Accounting

QUESTION 4 (55 Marks; 33 Minutes)

CASH FLOW STATEMENT AND INTERPRETATION OF INFORMATION

You are provided with information, taken from the books of Sharks Limited, for the
financial year ended 30 June 2015.

REQUIRED:
4.1. Calculate the following for the financial year ended 30 June 2015:
4.1.1 Stock turnover rate (4)

4.1.2 % return on total capital employed (use the average in your calculation) (7)

4.2 The shareholders are pleased with the return, earnings and dividends:
* Quote THREE financial indicators that indicate this.

* Quote figures and trends to support the shareholders’ opinion. (6)

4.3 Calculate the missing figures i in the Cash Flow Statement represented by
letters (a) to (d). (17)

4.4 The directors decided to increase the loan during the current financial year:

Quote TWO financial indicators (actual figures/ratios/percentages) that are
televant to their decision. Explain why this was a good decision, or not. (8)

4.5 The existing shareholders are happy with the price at which the new shares
were issued:

Comment on the price at which the 100 000 new shares were issued.
Quote TWO financial indicators/figures to support your comment. (4)

4.6 The Cash Flow Statement highlights some important decisions taken by the
directors during the past year:

« Explain THREE of these important decisions. Quote figures to support
your answer. (6)

* Explain how these decisions would benefit the company. (3)

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C. Additional information:

(i) Ordinary share capital:

@ 1500 000 shares have been authorised.

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_ Accounting 15 September 2015 Preparatory Examination
’ ' NSC
INFORMATION
A. Extract from Income Statement for the financial year ended 30 June 2015:
- ey
Sales 9 000 000
Cost of sales 5 625 000
Depreciation 380 000
Interest on loan 185 000
Net profit before tax 1 330 000
Net profit after tax 931 000
B. Extract from Balance Sheet as at 30 June:
2015 2014

“y Fixed assets 4 326 000 1489 000
Ordinary shareholders equity 7 850 000 6 450 000
Ordinary share capital 5 950 000 5 200 000
Retained income 1 900 000 1 250 000
Mortgage loan (Nongoma bank 13% p.a.) 1 800 000 950 000
SARS (income tax) CR_ 32000| DR_ 18000
Shareholders for dividends 105 000 71 500
| Trading stock 670 000 580 000

* 650 000 shares were in issue at the end of the previous financial

) year, 30 June 2014.

* 100 000 ordinary shares were issued on 1 May 2015.

« 50 000 ordinary shares were repurchased from unhappy
shareholders. They repurchased at R 11 per share. The average
issue price was R8, 50 per share.

(ii) Fixed assets:

« Equipment was bought during the year.
« Assets were sold at book value for R140 000.

(iii) | Good Day Bank is offering a 9 % interest rate on all investments.

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Accounting D own | oa d e d fr om h | AYISO.GO Mater Examination

D. Financial indicators for the past two years:

The following financial indicators were calculated for the past two years:

“un

SE
| 2015 2014 ]
Current ratio 1,5:1 1:1
Stock turnover rate 2 7 times
: Debt-equity ratio 0,23: 1 0,15 :4
' % return on average shareholders’ equity 13% . 12%
% return on total capital employed 2? 15%
Dividends per share 34 cents 20 cents
Earnings per share 133 cents 120 cents
1 Net asset value per share 1121 cents 992 cents
Market price on JSE 1 050 cents 980 cents
|

E. Cash Flow Statement for the year ended 30 June 2015.

Cash flow from operating activities

|

| Cash generated by operations 1 800 000

| interest paid | (485 000)

Dividends paid (201 500)
Tax paid (a)

Cash flow from investing activities

: Purchases of fixed asset (b)
\ Proceeds on sale of fixed asset 140 000
Increase in fixed deposit 60.000

| Cash flow from financing activities

Proceeds on shares issued
Buy-back of shares
Increase in mortgage loan

(c)
(d)
850 000

Net change in cash and cash equivalent
Cash and cash equivalent at the beginning 190 000

Cash and cash equivalent at the end (547 500)

55

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, Accounting eptember 2015 Preparatory Examination
NSC

QUESTION 5 (23 Marks; 14 Minutes)
STOCK VALUATION AND INTERNAL CONTROL.

5.1. STOCK VALUATION

You are provided with information relating to Sibusiso Car Dealers.

The owner, Sibusiso, sells used cars. The business uses the specific
identification method of valuing stock. The information given below relates to
the month of August 2015.

REQUIRED:

5.1.1 Explain why it would be unreasonable for this business to value its stock
items on the basis of FIFO or weighted average. Provide TWO points. (4)

5.1.2 Explain why it would be unreasonable for certain businesses to use the
specific identification method, e.g petrol shop. Provide TWO points. (4)

5.1.3. Sibusiso Car Dealers does not want the cost prices of stock items to
be public knowledge. What strategies could they use to keep the cost

prices confidential? (2)
5.1.4 Calculate the gross profit earned during August 2015. (4)
INFORMATION:
Description ™ Cost price Published
. selling price
1_ series coupe 270 000 305 000
2 series coupe 290 000 360 000
3_series coupe 350 000 440 000
4 series coupe 400 000 470 000
5 series coupe 850 000 970 000

Items 2, 3 and 5 are sold for cash during August 2015 at their published
selling price.

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Accounting

Down | oa de d fro m h | AYISO,GOM ator Examination a

NSC

5.2 INTERNAL CONTROL OF INVENTORY: PROBLEM SOLVING

You are provided with information taken from Nokubonga Stores on 31 August
2015. The owner, Nokubonga, is uncertain as to whether she should be
satisfied with the control of all of these items.

REQUIRED:

« Identify a problem in respect of the manner in which each item has been

managed.

« Quote figures to support your comment.

« In each case offer Nokubonga practical advice for the future.

Opening units(opening

TV SETS CELL PHONES

(9)

RADIOS

stock) 120 220 318
Number of units. sold 600 2250 120
during the year

Number of units purchased 680 2 500 430
for the year.

Number of units per 200 430 628
physical count at year-end

Selling price per unit R8 000. R1 200 R800

Sales

R4 700 000

R2 700 000

R96 000

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Period of stock on hand

120 days

69 days

1884 days

rn

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, Accounting

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eptember 2015 Preparatory Examination
NSC

QUESTION 6 ‘ (34 Marks; 20 Minutes)

CASH BUDGET AND INTERNAL CONTROL
You are provided with information relating to Ixopo (Pty) LTD. The financial year of
the business ended on 31 July 2015. The company issued 800 000 ordinary shares

on 31 July 2015 and is planning to repurchase 100 000 ordinary shares in July 2015
from unsatisfied shareholders.

REQUIRED:
6.1. Why it is a good idea to compare budgeted against actual figures? (2)

6.2 Refer to the Cash Budget under information 4. Identify TWO items that was
incorrectly entered in the Cash Budget. (2)

6.3 Complete the Debtors Collection Schedule for July 2015. (10)

6.4 Calculate the following:
6.4.1 Percentage increase in salary and wages with effect from July 2015. (3)

6.4.2 Missing figures A and B in the extract from the Cash Budget. (7)

6.5 At the end of July 2015 you identified the following when comparing the
budgeted against the actual figures:

e Explain what you would mention to shareholders about each of the

following items at the end of July 2015.
* In each case explain what effect these items will have on the company. (8)

——_

JULY 2015
BUDGETED ACTUAL
Buy back of shares 300 000 300 000
Audit fees 50.000 105 000
Directors fees 170 000 340 000
Advertising 20 000 0

6.6 Shareholders are thinking of purchasing the business premises rather than
renting it.

Explain ONE major advantage and ONE major disadvantage of this option. (2)

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Accounting Downloaded from hlayiSO,GOM ator Examination »

NSC

INFORMATION:
A. Sales, purchases of stock and cost of sales:

Total sales for April 2015 to July 2015 were as follows:

Month Total sales
April R120 000
4 May R200 000
June R280 000
July R320 000

« 40% of all sales are cash, the rest is on credit.
«# The mark-up is 60% on cost of sales at all times.
* Stock is replaced on monthly basis.

« 70% of all purchases are cash, the rest is on credit.

B. Debtors collection:

Debtors are expected to pay as follows:

qualify for 2.5% discount for early payment.

* 50% pay in the following the sales transaction month (30 days).
« 18% pay in the second month (60 days).

* 2% are written off.

Cc. Creditors payment:

Creditors are paid in the month after purchases to receive 5% discount.

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* 30% are expected to pay their account in the month of sale (current) to

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_, Accounting September 2015 Preparatory Examination
‘ of NSC

4. IXOPO LTD.

EXTRACT FROM CASH BUDGET FOR JUNE AND JULY 2015.

JUNE 2015 JULY 2015
RECEIPTS
Cash sales 120 000 140 000
Collection from debtors ? ?
PAYMENTS |
Directors fees 200 000 170 000
Audit fees - 50 000
Salary and wages 90 000 100 800
Funds for share buy-back - 300 000
Vehicles bought on credit 190 000 -
Payment to creditors 35 625 A |
Cash purchase of stock 122 500 B
| Depreciation 12 800 12 800
Advertising 2 000 2 000
Land and buildings - 3 000 000
| Rent expense 30 750 30 750

34

()
GRAND TOTAL: 300

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- [2020 KZN Prelim P1 QP](https://www.hlayiso.com/library/2020-kzn-prelim-p1-qp/7d905a97-970a-4c23-8a93-54f8f6650432) — Accounting · QP · 2020

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- [Accounting P1 (Afrikaans) June 2025 Possible Answers](https://www.hlayiso.com/library/accounting-p1-afrikaans-june-2025-possible-answers/2f10559b-54d6-47f4-9fc2-b2efc62644c4) — Memo · 2025 · Afr

## Collection

- [Grade 12 past papers](https://www.hlayiso.com/grade-12/past-papers)

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