Accounting Grade 11 Eastern Cape November 2017 Addendum

Downloaded from hlayiso.com Name: NATIONAL SENIOR CERTIFICATE GRADE 11 NOVEMBER 2017 ACCOUNTING ANSWER BOOK MARKS MODERATED QUESTION MAX MARKS OBTAINED MARKS 1 45 2 75 3 35 4 70 5 45 6 30 300 This answer book consists of 14 pages.

Downloaded from hlayiso.com 2 ACCOUNTING (ANSWER BOOK) (EC/NOVEMBER 2017) QUESTION 1: RECONCILIATIONS AND INTERNAL CONTROL 1.1 True or False 1.1.1 1.1.2 1.1.3 1.1.4 4 1.2 Bank Reconciliation ITEMS AND AMOUNTS TO BE RECORDED IN THE CRJ AND CPJ 1.2.1 CRJ 1.2.2 CPJ ITEM AMOUNT ITEM AMOUNT 13 1.2.3 BANK RECONCILIATION STATEMENT ON 30 SEPTEMBER 2017 10 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/NOVEMBER 2017) ACCOUNTING (ANSWER BOOK) 3 1.3 Debtors Reconciliation 1.3.1 Explain why the Debtors Control account balance and the Debtors List total should be the same. 2 1.3.2 Correct the Debtors’ List DEBTOR WORKINGS BALANCE A. Santos 12 560 B. Deepak 9 840 C. Mellissa 7 660 D. Rossie 11 400 10 1.3.3  Explain 30 days credit terms 2  What should the credit manager do to ensure that only reliable persons are allowed to buy goods on credit? Provide TWO points. 4 Q1 45 Copyright reserved Please turn over

Downloaded from hlayiso.com 4 ACCOUNTING (ANSWER BOOK) (EC/NOVEMBER 2017) QUESTION 2: PARTNERSHIPS – FINANCIAL STATEMENTS 2.1 PB STORES INCOME STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2017 Sales Cost of sales Gross profit Other income Commission income 58 545 Gross income Operating expenses Salaries and wages 45 000 Operating profit Profit before interest expense Net profit for the year 311 135 33 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/NOVEMBER 2017) ACCOUNTING (ANSWER BOOK) 5 2.2.1 CAPITAL NOTE PINKY BRIAN TOTAL Opening balance Closing balance 8 2.2.2 CURRENT ACCOUNT NOTE PINKY BRIAN TOTAL Salaries Interest on capital Bonus Closing balance 28 2.3.1 Provide TWO reasons to justify why he feels this way. In each case provide relevant figures to support your comments. 4 2.3.2 Give ONE suggestion that the partnership can use to address the concern expressed by Pinky. 2 Q2 75 Copyright reserved Please turn over

Downloaded from hlayiso.com 6 ACCOUNTING (ANSWER BOOK) (EC/NOVEMBER 2017) QUESTION 3: PARTNERSHIPS – FINANCIAL STATEMENTS AND INTERPRETATION 3.1 Matching 3.1.1 3.1.2 3.1.3 3.1.4 4 3.2 MP TRADERS 3.2.1 Calculate the following: WORKINGS ANSWER  Percentage mark-up on cost 4  Operating expenses on sales 3  Total earnings of Monty 4  The percentage return earned by Python 5  The debt/equity ratio for 2017 3 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/NOVEMBER 2017) ACCOUNTING (ANSWER BOOK) 7 3.2.2 Comment on the liquidity of the business. Quote and explain TWO financial indicators (with figures) in your answer. 4 3.2.3 Were the partners justified in increasing the loan? Explain. Quote TWO financial indicators, and figures, in your explanation. 4 3.2.4 Monty is not happy with his return on investment. Explain why you think he feels this way. Quote figures. 4 Q3 35 Copyright reserved Please turn over

Downloaded from hlayiso.com 8 ACCOUNTING (ANSWER BOOK) (EC/NOVEMBER 2017) QUESTION 4: BUDGETING AND CLUBS 4.1.1 State ONE difference between a Cash Budget and a Projected Income Statement. 2 4.1.2 List TWO items that would not appear in a Cash Budget. 2 4.1.3 Explain why it is necessary to compare the actual amounts received or paid against the budgeted figures. 2 4.2 Thabo’s Gymnasium 4.2.1 Debtors’ Collection Schedule MONTHS CREDIT SALES NOVEMBER DECEMBER October 28 500 10 830 November 30 000 December Cash from Debtors 10 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/NOVEMBER 2017) ACCOUNTING (ANSWER BOOK) 9 4.2.2 Cash Budget for the budget period ended 31 December 2017 RECEIPTS NOVEMBER DECEMBER Cash sales 70 000 Cash from debtors Fee income (gym members) 33 600 Rent income 10 638 Loan: Thabo Snr 80 000 0 TOTAL RECEIPTS 196 038 PAYMENTS Payment to creditors (for stock) Salaries and wages 24 000 25 800 Personal trainers (fees) 21 400 Cleaning detergents 4 500 4 500 Telephone 5 000 5 000 Maintenance of equipment 13 000 16 280 Purchase of new equipment 0 Loan instalment (including interest) 0 Sundry expenses 18 375 TOTAL PAYMENTS SURPLUS/DEFICIT OPENING BALANCE IN BANK ( 6 930) CLOSING BALANCE IN BANK 28 4.2.3 Calculate the percentage increase in salaries and wages. 3 Explain why you think that the workers should/should not be satisfied with this increase. 2 Copyright reserved Please turn over

Downloaded from hlayiso.com 10 ACCOUNTING (ANSWER BOOK) (EC/NOVEMBER 2017) 4.2.4 REASON FOR CONCERN ADVICE Fee income: Telephone: Maintenance: training equipment 6 4.3 SPORTS CLUBS GENERAL LEDGER OF MBIZANA SOCIAL CLUB MEMBERSHIP FEES ACCOUNT 15 Q4 70 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/NOVEMBER 2017) ACCOUNTING (ANSWER BOOK) 11 QUESTION 5: COST ACCOUNTING 5.1 Matching 5.1.1 5.1.2 5.1.3 5.1.4 4 5.2.1 FACTORY OVERHEAD COST R 16 5.2.2 GENERAL LEDGER OF PEFFERVILLE MANUFACTURERS WORK-IN-PROCESS STOCK ACCOUNT 2016 Mar 1 Balance b/d 24 270 FINISHED GOODS STOCK ACCOUNT 8 5 Copyright reserved Please turn over

Downloaded from hlayiso.com 12 ACCOUNTING (ANSWER BOOK) (EC/NOVEMBER 2017) 5.3 SaSa Furnishers 5.3.1 Provide ONE difference between a fixed cost and a variable cost. 2 5.3.2 Calculate the number of plastic bar-stools that the business needed to produce to breakeven. 5 5.3.3  Comment on the break-even point calculated in QUESTION 5.3.2 and the level of production achieved. 3  What advice would you offer SaSa for the future? Provide ONE point. 2 Q5 45 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/NOVEMBER 2017) ACCOUNTING (ANSWER BOOK) 13 QUESTION 6: FIXED ASSETS AND PROBLEM SOLVING 6.1.1 GENERAL LEDGER OF PITT TRADERS ASSET DISPOSAL ACCOUNT 9 6.1.2 Calculate the following: WORKINGS ANSWER (i) Additional land and buildings 2 (ii) Accumulated depreciation on vehicles 2 (iii) Additional vehicles 2 (iv) Total depreciation on vehicles 6 Copyright reserved Please turn over

Downloaded from hlayiso.com 14 ACCOUNTING (ANSWER BOOK) (EC/NOVEMBER 2017) 6.2 6.2.1 6.2.2 IDENTIFY ONE PROBLEM PROVIDE A VALID SOLUTION QUOTE FIGURES TAXI 1: TAXI 2: TAXI 3: 9 Q6 30 TOTAL: 300 Copyright reserved Please turn over