# Accounting Grade 12 KZN Prelim 2016 Addendum

> Grade 12 Accounting addendum from the KZN Prelim 2016, 20 pages. Read online or get the free PDF download.

- Page: https://www.hlayiso.com/library/2016-kzn-prelim-answer-book/a8667608-fd01-42ab-b928-bc12e0a5b761
- Updated: 2026-09-27
- Subject: Accounting
- Grade: Grade 12
- Document type: Addendum
- Year: 2016
- Exam period: KZN Prelim
- Curriculum: CAPS
- Pages: 20

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## About this document

Accounting · Grade 12 · KZN Prelim · 2016. Addendum, 20 pages. Read online or download the PDF.

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## Document text

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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,

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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

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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

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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.

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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 [|

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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

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Accounting

3.2.1. Tangible/fixed asset

Carrying value at the beginning of the year

8
NSC-Answer book

Cost

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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

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TOTALMARKS

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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

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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

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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)

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Accounting

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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

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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

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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

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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

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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

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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.

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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

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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:

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C

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