Accounting Grade 12 KZN Prelim 2016 Addendum

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Downloaded from hlayiso.com Accounting 2 Preparatory Examination September 2016 NSC-Answer book QUESTION 1 1.1 State whether each of the following statements is True or False: 1.4.4 1.1.2 1.2.1 | Why is it important for a business to prepare the Bank Reconciliation Statement? Give ONE reason only. 1.2.2 | Calculate the correct Bank Account balance on the 30 April 2016,

Downloaded from hlayiso.com Accounting 3 Preparatory Examination September 2016 NSC-Answer book 1.2.3 Prepare the Bank Reconciliation Statement on 30 April 2016 Debit Credit 3.1 Indicate the corrections that must be made to the Creditor's Control account in the General Ledger and Creditors' list by showing the amounts with: + for increase; - for decrease. No details are required. Creditors control Creditors list | 19 605 25 315 Pre-adjustment balance/total Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 4 Preparatory Examination September 2016 NSC-Answer book 1.3.2 [Lolo, the bookkeeper, is the only person assigned by the business to place orders with suppliers and process all transactions in respect of creditors. The internal auditor, Joe Zulu, discovered that the value of goods actually received and placed in the store room was less than the quantities indicated on various invoices. Indicate ONE internal control measure that can be implemented to avoid this in future? TOTALMARKS 35 Copyright taserved Please turn over

Downloaded from hlayiso.com Accounting 5 NSC-Answer book QUESTION 2 Preparatory Examination September 2016 2.1.1 | Calculate the value of closing stock on 30 June 2016 using the weighted i average method. | | Provide a calculation to confirm her suspicion. 2.1.2 [Thule Is concerned about the control of the stock of leather bags. She suspects that leather bags have been stolen by her workers. ( )2.1.3 | Calculate the average stock holding period (in days) for the financial year ended 30 June 2016. Copyright reserved Please turn over

~ Downloaded from hlayiso.com Accounting 6 Preparatory Examination September 2016 NSC-Answer book 2.1.4 | Thule wants to alternate between using the weighted average method and the First-in-first-out (FIFO) method, depending on which will result in the higher cost of sales. In your opinion, why do you think Thule wants to increase the value of cost of sales? Provide TWO reasons why the bookkeeper says that alternating between the two methods of valuing stock does not comply with the requirements of International Financial Reporting Standards (IFRS). 2.2 Zodwa is concerned with the results. Identify ONE problem in relation to each branch, quoting figures/amounts to support the problem. In each case, offer Zodwa advice on how to solve the problem identified. emerson ons amram etn mn mn ea a eee ace Problem identified with Advice figures. DURBAN SENZOLO RICHARDS BAY () JOYFULL | LADYSMITH KHETHIWE [| TOTALMARKS 35 Copyright reserved Please turn over

= = a Downloaded from hlayiso.com Accounting 7 Preparatory Examination September 2016 NSC-Answer book QUESTION 3 3.1. NONGWELEZA LIMITED INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2016 Gross profit Other operating income Operating Expenses ) Audit fees Insurance Bad debts 33 800] 20 000] 14000] | TTT! Operating profit Operating profit before interest expense Net profit before tax Net profit after tax Copyright reserved Piease turn over i

Accounting 3.2.1. Tangible/fixed asset Carrying value at the beginning of the year 8 NSC-Answer book Cost Downloaded from hlayiso.com Preparatory Examination September 2016 Vehicles 4 450 000 ~~ 2800000 | Equipment 464 000 914 000 Accumulated depreciation (1 350 000) (450 000) | Movements | Acstons at cost Disposals at carrying value Depreciation Carrying value at the end of the year Cost Accumulated depreciation 3.2.2 Trade and other payables Copyright reserved TOTALMARKS 85 Please turn over

Downloaded from hlayiso.com Accounting QUESTION 4 4.4 9 NSC-Answer book COLUMN A COLUMN B 4.14 4.1.2 4.1.3 Preparatory Examination Septernber 2016 4.1.4 4.1.5 4.2.1 Direct Material Cost Opening stock 80 000 4.2.2 Factory Overheads Cost Factory sundry expenses 44 625 Depreciation 12 800 Copyright reserved Please turn over

~ Downloaded from hlayiso.com Accounting 10 Preparatory Examination September 2016 NSC-Answer book 4.3.1 | Give ONE example of a fixed cost and ONE example of a variable cost. Example of a fixed cost Example of a variable cost [ | 4.3.2 | Caiculate the break-even point for the year ended 30 June 2016. 4.3.3] Should the business be satisfied with the number of units that they are currently producing? Briefly explain. TOTALMARKS A5 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 11 NSC-Answer book QUESTION 5 5.1.1 RETAINED INCOME Preparatory Examination September 2016 Balance at the beginning of the financial year 528 000 Net profit after tax for the year Dividends { } 5.1.2 Calculate the missing figures in the Cash Flow Statement. = WORKINGS ANSWER (a) (b) c) (a) Copyright reserved LI Please turn over

Accounting ~ Downloaded from hlayiso.com 12 Preparatory Examination September 2016 NSC-Answer book 5.1.3 | The directors took some significant decisions in the past years which affected the cash position of the company. List TWO of these significant decisions and indicate how the business will benefit from these decisions. Quote figures to support your answer. Decisions ( with figures) Explanation of Benefits 5.1.4 | Return on shareholders’ equity Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 13 Preparatory Examination September 2016 NSC-Answer book §.2.1 | Calculate the minimum number of shares Lungi must buy in July 2016 to 5.2.2 Copyright reserved gain control of the company. Lungi wants to purchase the additional shares at R13 per share without advertising the shares to the public. Give TWO reasons why you would not approve of this arrangement. The directors decided to increase the loan during the current financial year: * Quote TWO financial indicators (actual figures/ratios/percentages) that are relevant to their decision. Explain why this was a good decision, or not Please turn over

Downloaded from hlayiso.com Accounting 14 Preparatory Examination September 2016 NSC-Answer book 5.2.3 [New shares were Issued at the beginning of the financial year at R10.00 each. Explain why the existing shareholders would or would not be happy with this issue price? Quote TWO financial indicators (with figures) to explain your opinion. 5.2.4] The directors are generally happy with the improvement in the liquidity from 2015 to 2016. Quote THREE relevant financial indicators for both years (actual ratios or figures) to support their opinion. TOTALMARKS 70 Copyright reserved Please turn over

‘ Downloaded from hlayiso.com Accounting 16 Preparatory Examination September 2016 NSC-Answer book QUESTION 6 6.1.1 | Calculate the mark-up % that Pongola trader uses. 6.1.2] Velaphi is concerned about the support he is getting from this customers. He is concerned about losing ‘goodwill’. Quote figures from the question which indicates that he appears to be losing customers. ? Identify ONE reason, with appropriate figure to indicate why he appears to be losing customers. LI Copyright reserved Please turn over

Accounting 16 Preparatory Examination September 2016 NSC-Answer book 6.1.3] The shop assistant earns equal wages. Two of the six shop assistants resigned at the beginning of August. They have not been replaced. Calculate the % salary increase that Velaphi granted the shop assistants in August. Give ONE reason why they would not be happy with this increase. Quote evidence to support your answer. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 17 Preparatory Examination September 2016 NSC-Answer book 6.2.1] Give ONE reasons why business compare budget figures with actual figures. 6.2.2 | Complete the Debtors Collection Schedule for November 2016. CREDIT SALES PER MONTH OCTOBER NOVEMBER ) SEPTEMBER 910 000 364 000 OCTOBER 630 000 209 475 NOVEMBER TOTAL RECEIVED 6.2.3 Calculate the payment to creditors for November 2016 Copyright reserved Please turn over

~ Downloaded from hlayiso.com Accounting 18 Preparatory Examination September 2016 NSC-Answer book 6.2.4] At the end of September 2016, the following figures were identified. The owner wants you to explain to him why the budgeted and actual amounts of certain items differ significantly. Explain what you would mention to him about each of the following items. Give one point of advice in each case. EXPLANATION ADVICE RENT INCOME: TOTALMARKS 30 Copyright reserved C

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