# Accounting Grade 12 KZN June 2017 Memo > Grade 12 Accounting memorandum from the KZN June 2017, 10 pages. Read online or get the free PDF download, question paper linked when available. - Page: https://www.hlayiso.com/library/2017-kzn-june-memo/3c8c8181-b768-4e56-a5df-1e30d0473237 - Updated: 2026-09-27 - Subject: Accounting - Grade: Grade 12 - Document type: Memorandum - Year: 2017 - Exam period: KZN June - Curriculum: CAPS - Pages: 10 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 12](https://www.hlayiso.com/library/grade-12) › [Accounting](https://www.hlayiso.com/library/grade-12/accounting) › [Accounting Grade 12 KZN June 2017 Memo](https://www.hlayiso.com/library/2017-kzn-june-memo/3c8c8181-b768-4e56-a5df-1e30d0473237) ## About this document Accounting · Grade 12 · KZN June · 2017. Memorandum, 10 pages. Read online or download the PDF. Read it free online on the page above; download the PDF from there. ## Document text Text extracted from the PDF. Layout, diagrams and tables may not survive extraction. ### Page 1 i Downloaded from hlayiso.com | —— — : Accounting 2 Common Test June 2017 NSC ! . QUESTION 1 | Education KwaZulu-Natal D partment of Education 1.1.1 | Briefly explain to Xolant what your job as internal auditor requires you to do. P ONE REPUBLIC OF SOUTH AFRICA oe Provide ONE point * To ensure that the internal controls are tested and assessed as % effective. | : + Deterring fraud or error in the business 2 n * To Check on every aspect of the business and that all employees are a complying with the procedure they were employed to do. 2 4 a an ay 1.1.2 | Briefly explain to Xolani why it is important that he Prepare the Bank Reconciliation Statement at the end of each month. Provide ONE point. NATIONAL are checked against an external source. SENIOR CERTIFICATE «Improves internal control by identifying outstanding cheques and deposit. * To compare the books of the business with that of the bank in order to detect errors and dishonesty at an early stage * Internal control purposes MARKS: 300 * To reconcile the bank account z MARKING PRINGIPLES: Tan eSDORESS Hn De COURT SOS 1. Penalties for foreign items are applied only if the candidate is not losing marks elsewhere in the question for that item. No double penalty applied. 1.2 | Cash Receipts Journal Cash Payment Journal 2, Penalties for placement or poor presentation (e.g. details) are applied only if the candidate is eaming marks on 33 220 40 921 the figures for that item. 3607, 9207 3. Full marks for correct answer. if answer incorrect, mark the workings provided. 31507 3307 4. Ifa pre-adjustment figure is shown as the final figure, award one mark. Not the method mark for the answer. 5. Unless otherwise indicated, the positive or negative effect of any figure must be considered to award the mark. 180” 4430 if no + or — sign or bracket is provided, assume that the figure is positive. 1316” 6. Where indicated, part-marks may be awarded to differentiate between differing qualities of answers from 4007 candidates. 7. ‘This memorandum is not for public distribution; as certain items might imply incorrect treatment. The 50 000” adjustments made are due to nuances in a certain question. 11 8. Where penalties are applied, the marks for that section of the question cannot be a final negative. a. Where method marks are awarded for operation, the marker must inspect the reasonableness of the answer 36 910M Tis LORSratOn one pateorect 94 0327) 1 before awarding the mark, 10. In awarding method marks, ensure that candidates do not get full marks for any item that is incorrect. 14. Be aware of candidates who provide valid altematives beyond the marking guideline. 12. Operation’ means ‘Check operation’. ‘One part correct’ means ‘Operation & one part correct’. 13. Codes: f=foreign item; p=placement. This memorandum consists of 17 pages Copyright reserved Please tum over ### Page 2 Downloaded from hlayiso.com Accounting 3 Common test June 2017 NSC 41.3 | Prepare the Bank Reconciliation Statement on 31 May 2017. DEBIT CREDIT Debit balance as per bank statement 7 700¥ Credit outstanding deposit 1500” Debit outstanding cheques No. 668 660” No. 672 700% No. 673 300” Credit balance as per bank account 7 860V 4 8 Operation forboin answers Ee 9360 9 360 8 4.4 | Refer to the outstanding deposit of R50 000 in Information E below. Explain why the owner arid internal auditor should be very concerned about this outstanding deposit. Provide ONE reason. have been reflected on the bank statement within a . R50 000 appears to be missing and will affect the cash flow and liquidity. « There is lack of internal control. « Likelihood of fraud by the previous bookkeeper. « The internal auditor has been ‘negligent by not ensuring that this was detected in January. TOTAL MARKS 25 25 Copyright reserved Please tum over Accounting 4 Common Test June 2017 NSC QUESTION 2 2.1 | Write only the letter (A-E) next to the question number. 2.1.1 [Dv 242 [Cv 2.1.3 JAY 214 [BY 2.2.4_ DR Asset Disposal Account CR Accumulated Depreciation: 2018 | 31 | Vehicles” | Gs | 245 000v] 3010, | 31 | Vehicles” | Gu | 200 19pm (175 600V + 24 500v) Banky GJ] 43440v CEmaioEet ‘Loss on sale of |GJ} 1 460% asset’ 245 000 245 000 10 10 2.2.2. SEE NEXT PAGE 2.2.3 | Cash and cash equivalent _ Bank 626 o00v + + 36 000” + 10 100” +43 440v ) 715 540” Petty “cash 7 800V Fixed deposit 320 000” 8 1043 340M 8 Copyright reserved Please tum over ### Page 3 Downloaded from hlayiso.com Common Test June 2017 10 10 10 10 Accounting 5 Common Test June 2017 Accounting 6 NSC NSC 2.2.2 ZULU LIMILTED QUESTION 3 INCOME STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2017. 3.1.1 [Calculate the value of the closing stock as follows: Sales (15 520 000” —75 000”) 15 445 000” Leather jackets (use the weighted average method) Cost of sales (9 700 000) ~ 44 000” _+ 372 000” + 12 480v— 14 000” 5 | Gross profit 5745 000M 80” + 600 ¥ -20V Other operating income 29 000M 414.480 Bad debts recovered (15 700” + 3 000”) 18 700“ 660 Trading stock surplus (1 200 0007 — 45 000v — 1 160 0007) 5 000” RO28M seelaion Gre cateored X 180V = R113 040% Sposa Provision for bad debts adjustment (45 000 V— 39 700”) 5 300v Aeron ests 11 | Gross income 5774 000 ¢ Handbags (use the FIFO method). Operating expenses ‘Speratiod (2.685 000) 7 100” X R654,50 = R 65 450M operdionron Salaries (1 049 300v - 14 000v) 1 035 300” 140“ XR575Y ss = R80. 5005 = 240” X R50V = R12 0004 Di 02 =e irectors fees 902 100 , R 157 95001 seston. Audit fees 203 400 Accepectner atte iS Employers contributions (81 000v - 3 900”) 77 100” = 3.1.2 | Calculate the following for the handbag Sundry expenses ‘ones 2298904) > Cost of sales Bad debts (25 000” + 1 200”) 26 200” Packing material (78 000” — 9 000~) 69 000” 51 750” + 44 000V + 31 625v +2700“ + 4050 v= R134 125m ‘Advertising (65 000” — 1 6007) 53 2007 EES ‘Stock destroyed by fire 9 000V7 Loss on sale of assets _—— 1 460M + _Gross profit 25 | Depreciation (24 500M + 41 250” + 10 8007 + 1800") | —» 76 350m 211 500Y — 134 1252195 = 77 375 gross proft Operating profit Soeration > 3 089 000M ie Interest income 72 000” Operating profit before interest expenses. 3 161 000M * Mark-up % achieved 77 375 WI sestges X 100 Interest expenses. (204 000) i 134 1250 a Net profit before taxation 2957 000M Taxation (887 100) v 43 57,7%M Speeton oF 58% 7 |N fit afte ic 2069 900M 48 et pro fer taxation 3.1.3 | Khanda suspects that a number of handbags have been shop-lifted. Calculate the number of bags stolen.. TOTAL MARKS S00Y — 240v — 235V = 25H 58 70 70 Copyright reserved Please fum over Copyright reserved Please tum over ### Page 4 Downloaded from hlayiso.com Accounting 7 Common Test June 2017 NSC 3.2 Identify ONE problem in relation to each branch, quoting figures/amounts to highlight the problem. In each case, offer the owner advice on how to solve the problem. Branch Comment and figures Advice vo MY AS viv v __Rayiasievant snewet Theft occurring. There are | Improve internal control PINETOWN | 40 cameras missing . (880 — 340) Ndumiso Value of shortage of Do regular physical stock R320 000 (8 000 x 40) takings and stock checks Too much stock on hand. | Restrict amount of stock on DURBAN Only 300 out of 1 580 have j hand as this could lead to been sold. theft or out of date stock. Nomcebo Stock will become obsolete | instead of paying Nomcebo f out of daie, a set monthly income he 1 280 left over should pay her on commission based on sales. UMHLANGA | R640 000 cash was Improve internal control stolen Sphesihle Division of duties 3 9 TOTAL MARKS 45 45 Copyright reserved Please tum over Accounting 8 NSC QUESTION 4 414 ‘Common Test June 2017 Prepare the following notes for the year ended 28 February 2017: Retained income Balance af the beginning 754 500” Buy back of shares (200 000” x 2,60“) (620 000) “ Net profit after tax 1 050 000” Dividend (443 000) Paid 123 000” Final 320 000% Balance at the end 841 500M 9 Trade and other payables Creditors control (440 000” + 4 500 + 30 000”) 471 500V Accrued expense 11 500" Shareholders for dividends 320 000V ‘SARS (400 000” — 450 000”) 50 000¥ 40 SSE NES 853 000M 10 Please tum over Copyright reserved ### Page 5 Accounting Downloaded from hlayiso.com g NSC Common Test June 2017 4.1.2 BALANCE SHEET (STATEMENT OF FINANCIAL POSITION) ON 28 FEBRUARY 2017. ASSETS NON-CURRENT ASSETS oeiatoe 2 583 500%) Fixed assets 2.383 500m 3 Fixed Deposit 200 000% CURRENT ASSETS 1489 500M Inventories p 595 800% ‘Trade- and other receivables (883 200! v— 4000v+ 1500+ 8 000”) 888 700M -peration Cash & cash equivalents (30 0007 — 25 0007) 5 0007 11 TOTAL ASSETS 4073 000M EQUITY AND LIABILITIES ORDINARY SHAREHOLDERS EQUITY 2 800 000 Share capital 1 958 500 3 Retained Income 841 500M NON-CURRENT LIABILITIES 280 000M 4 loan (420 000v — 140 000”) 280 000M CURRENT LIABILITIES operation 993 000% ‘Trade- and other payables secant 853 000M ‘Short term loan see NCE 140 000% 26 4 TOTAL EQUITY AND LIABILITIES ‘Operation 4073 000M 26 Do lrigt accept hank overdratt under eamsntnabiittes Copyright reserved Please tum over Accounting 10 Common Test June 2017 NSC 4.2 AUDIT REPORT 4.24 4.2.2 4.2.3 What type of audit report did Lukaku Ltd receive? Give a reason for your answer. Unqualified ~ Reason: Any valid reason vv The external auditor has not stated any irregularities in the audit report. 3 ‘The audit report indicates that there were no issues that were found to be irregular. 3 To whom is an audit report addressed? Give a reason for your answer. Shareholders “ Reason: Any valid reason vv + The independent auditors are appointed by the shareholders at the 3 AGM. + The shareholders are the owners of the company (contributed the capital). Explain why the auditor mentioned the following in the audit report: « IFRS Any valid explanation Vv” + The financial statements can be compared to international standards. 2 + The company operates in a global economy. + Shareholders may be from various parts of the world. 2 * Companies Act in South Africa. Any valid explanation v~ * This assures the shareholders that the company is abiding by the law. + Standards are maintained. * This satisfies the shareholders that their investment is safe. + This creates investor confidence in the company. + The Companies Act dictates how the financial statements are to be presented TOTAL MARKS 55 55 Copyright reserved Please tum over ### Page 6 Downloaded from hlayiso.com Accounting 14 Common Test Jurie 2017 NSC QUESTION 5 5.1 CREDITORS RECONCILIATION 8.1.1 No. ] CREDITORS LEDGER ACCOUNT STATEMENT, 5 350 ; 42 540 A +5407 B. ¥4 200 “+ 4 2007 Or+8 400 +4 0007 ~ 2507 -2 500% 14 0404 5.1.2 The owner of MG stores is concerned that the bookkeeper could be defrauding the business through the credit system. List TWO internal control measures that can be applied in order to maintain control over creditors. Any TWO valid points v¥ « Division of duties Proper authorisation of transactions. «Items received must be checked against invoices and delivery notes. Copyright reserved Please tum over ‘Accounting 12 Common Test June 2017 NSC 5.2 DEBTORS RECONCILIATION 5.2.1 5.22 Give TWO steps that the bookkeéper must follow when he/she discovers a difference between the Debtors Control Account and the Debtors List. Any TWO valid steps¥v¥ ¥ e Reconciling debtors’ list with debtors’ control account. * Identify if the error affects the control account or the DL or both. * Identify if ONE, TWO or MORE accounts are affected. * Make GJ entries to correct posting errors (wrong debtors / amounts over or under cast / wrong general ledger accounts) e For single entry errors (amounts) make the necessary corrections and adjust the balances. Calculate the correct balance of the Debtors Control Account |_and the Debtors List by comploting the table provided, | DEBTORS CONTROL ACCOUNT 11020 @ ; 1207 (ii) +907 (iii) +754 (ivy) +530Y 11 5O5WI operstionionenart correct DEBTORS LIST: Show the adjustment amount next to.each debtor. Copyright reserved M. Simkhadi (4 480 + 90% — 1 320% — 50v) 3 200M D. Slindile (3 270 + 75v) 3 3454 K. Mshibe (940 + 530¥’) 1 470M F. Tuko (2 260 + 1 320v) 3 5804 16 ‘Operation Sacwarticonekt 41 595E 16 Please tum over ### Page 7 Downloaded from hlayiso.com Accounting 13 Common Test June 2017 ‘Accounting 14 Common Test June 2017 NSC. NSC 5.2.3. DEBTORS’ AGE ANALYSIS QUESTION 6 Explain why you would be concerned about the management of 6.1.1 SIVUKILE LTD debtors in this business. Quote relevant figures in your answer. CASH FLOW STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2017 ‘Any TWO valid comments with figures.” v7 Cash flow from operating activities 255 190M] Seaton Cash generated by operations $40 300M | Seeen * 11590/23 180 = 50% of debtors are more than 60 days overdue. ee, - Interest paid (62 000) ~ * Only 20% of debtors are current (within the 30 days credit terms). 7 Dividends paid (88 000” + 60 000“) or (148 000) Mf Sefton * 10% of debtors are likely to be written off as irrecoverable. . . (88 000 + 156 000 — 96 000) * Debtors are not taking advantage of the 5% discount for early payments. ry - Tax paid (93 520Y — 6 300V — 2 110”) or (85110) A} Beater * Collection policy needs to be more vigilant. 4 (2110 ~93 520 + 6 300) Cash flow from investing activities (457 640) SPR Provide TWO internal control measures that the business can ee use to improve the collection of money from debtors. Purchases of fixed assets (717 640) I] P88 (2.714 030¥ + 180 000Y + 178 000 v—2 354 390V) or i fions.v”¥ vv Any TWO valid explanations. (-2 714 030 - 180 000 - 178 000 +2 354 390) * Division of duties — explained. Proceeds on sale of fixed assets 180 000” * Shared responsibilities in preparing documents (statements, receipts, Decreased in financial asset 80 000” invoices) and depositing of money. Cash flow from financing activities 160 COOK} — SBeratio# * If the organisation is big, could assign a set number of debtors per Proceeds on shares issued 7 000 000" employee. Could result in personalised service and constant monitoring. Buy-back of shares (120 000 X 4.5077) 640 000) Pasco * Aseparate screening department (follow-up and approval of credit). Repayment of loan G00 000) 7 ¢ Computerised messages to inform debtors not up to date with payments. Net change in cash and cash equivalent G42 450) ORS For 1 mark each: Cash and cash equivalent at the beginning 34 700% 30 * Send SMS and reminders. Cash and cash equivalent at the end (7 750) ~ 30 * Charge interest on late payments (overdue accounts) 4 « Give discounts for early payments. 6.1.2 | Calculate the return on shareholders’ equity for 2017. 240 480” X 100 ev + ra TOTAL S YW (2392 480V + 1 848 000) 1 35 240480 X 100 35 2 120 240 1 5 11.3% operat 5 Copyright reserved Please tum over Copyright reserved Please tum over ### Page 8 Downloaded from hlayiso.com Accounting 15 ‘Common Test June 2017 NSC 6.1.3[0On 1 March 2016 additional shares were issued. Will the existing shareholders be satisfied with the price? Refer to information C about the price. Explain. Quote relevant financial indicators with figures in your explanation YesY Explanation “ ¥ Valid financial indicators with figures v ¥ Compare R85 issue price to the NAV of 498 cents Compare R&5 issue price to the market value of 501 cents. 5 5 6.1.4] The directors are happy with the improvement in the liquidity from 2076 to 2017. Quote THREE relevant financial indicators (actual ratios or figures) to support their opinion. Three financial —_ indicators vv vv vw Possible answers: * Curent ratio: increased from 0.9 : 1 to 2.5: 1. ( current assets are double the current lities) « Acid-test ratio: increased from 1: 1 to 1.7 : 1 (company is operating efficiently) © Debtors’ collection period: Collection period improved from 36 to 28days. « Stock turmover rate improved from 7 times to 10 times (stock is sold 6 6 Copyright reserved Please tum over Accounting 16 Common Test June 2017 NSC 6.1.5] Besides paying back the loan, the directors have taken other major 6.2 6.241 decisions that have affected the cash balance. State TWO other major decisions (exceeding R200 000) and quote the figures from the Cash Flow Statement. In EACH case, state how the decision will affect the future of the company. DECISION ° FUTURE EFFECT ON COMPANY Decision Y¥_ Amount vv __| Valid explanationy Purchase of fixed assets R717 640 + Capital growth — investment in fixed assets will lead to expanded business activities + Creation of employment + Cater for more customers to increase profits Issue of shares R 000.000 + Financing expansions/ extensions + Expanded shareholder base will affect dividends + Improve cash flow Repurchase of shares R540 000 + Large cash outlay led to bank 6 overdraft + Could result.in cash flow problems 6 XULU LTD AND ZWANE LTD Comment on the value of the shares of the two companies on the Johannesburg Securities Exchange (JSE). Explain how this will influence your choice of company. vY oF nothing XULU JSE price 400 cents” | | would invest in Xulu LTD as the shares LTD Greater than NAVY seem to be in good demand of 310 cents Or ZWANE | JSE price 645cents”” | would not invest in Xulu LTD as the LTD below the NAV 750 shares might be overpriced. cenisY Or 6 | would invest in Zwane LTD as the shares 6 seem to be under-valued Copyright reserved Please tum over ### Page 9 - Downloaded from hlayiso.com Accounting 17 Common Test June 2017 NSC 6.2.2 | Compare and comment on the dividend pay-out policies of the two vv or nothing DPS 360 cents” Xulu LTD is dributing a higher percentage of Xulu EPS 420 cents” income earned; Zwane LTD has decided to LTD Or 2 marks retum half of EPS Distribution 86% ; eamings Or DPS 490 cents” Xulu LTD appears to keep shareholders Zwane | EPS 980 cents” satisfied by giving them good dividends; Zwane LTD | Or2 Marks LTD appears to have plans for growth. 6 Distribution 50% 6 earings 6.2.3 | Comment on the degree of risk and gearing. Explain how this will influence your choice of company. ic 3 ¥¥ ornothing D/E Ratio 0.3:1” | choose Xulu LTD as financial risk is low and XULU ROTCE 15.6% higher | gearing is positive. LTD than the interest rate of 114.5% ] choose Xulu LTD for its positive gearing DE Ratio 1.617 ZWANE | ROTCE 10.2% below || do not choose Zwane LTD there is high 6 LTD the interest rate of financial risk and negative gearing 11.5%V Gj TOTAL MARKS 70 70 Copyright reserved ### Page 10 Downloaded from hlayiso.com ## Related documents - [Accounting Feb March 2017 Memo Afr](https://www.hlayiso.com/library/accounting-feb-march-2017-memo-afr/7a152001-7faf-4ef1-b555-2b3684b8b2de) — Accounting · Memo · 2017 · Afr - [Accounting Feb March 2017 Memo Eng](https://www.hlayiso.com/library/accounting-feb-march-2017-memo-eng/f4ca2f8c-4acd-4a6a-a42a-1a6917f73109) — Accounting · Memo · 2017 · Eng - [2016 KZN June Memo](https://www.hlayiso.com/library/2016-kzn-june-memo/f370d234-2813-4e5b-8c39-f416ea0e8128) — Accounting · Memo · 2016 - [Accn Qp Eng](https://www.hlayiso.com/library/accn-qp-eng/265bc973-172b-49fd-b391-a52424963bfe) — Accounting · QP · 2017 · Eng - [Grade 12 NSC Accounting Preparatory 2017 Question Paper](https://www.hlayiso.com/library/grade-12-nsc-accounting-preparatory-2017-question-paper/135a4f47-f617-4ff6-a737-9714bac9f481) — Accounting · QP · 2017 - [Accounting May June 2017 Answer Book Eng](https://www.hlayiso.com/library/accounting-may-june-2017-answer-book-eng/80214f65-7758-4efc-a0bf-bfb782a0fb3d) — Accounting · Addendum · 2017 · Eng ## More from Grade 12 Accounting - [Accounting](https://www.hlayiso.com/library/accounting/8f42a6a4-9593-4d36-86b1-d890dd1bb1bf) — Guide - [ACCOUNTING P1 GR12 AB JCT ENG D watermark](https://www.hlayiso.com/library/accounting-p1-gr12-ab-jct-eng-d-watermark/77ae8297-53f7-47b3-8e29-57bd38f30483) — Addendum · 2025 · Eng - [ACCOUNTING P1 GR12 QP JCT 2025 AFR D watermark](https://www.hlayiso.com/library/accounting-p1-gr12-qp-jct-2025-afr-d-watermark/c6a5692b-3cb0-464b-bb82-67d6ce83bfdd) — QP · 2025 · Afr - [ACCOUNTING P1 GR12 QP JCT 2025 ENG D watermark](https://www.hlayiso.com/library/accounting-p1-gr12-qp-jct-2025-eng-d-watermark/84d92eb0-f5bd-4442-bb6d-c55cdc52e25d) — QP · 2025 · Eng - [ACCOUNTING P2 QP GR12 JCT 2025 ENG D watermark](https://www.hlayiso.com/library/accounting-p2-qp-gr12-jct-2025-eng-d-watermark/13425f71-aba6-4328-b084-d9b108884315) — QP · 2025 · Eng - [Accounting P1 (English) June 2025 Answer Book](https://www.hlayiso.com/library/accounting-p1-english-june-2025-answer-book/7e96e433-56f8-43a1-9a38-c68c465746dd) — Addendum · 2025 · Eng ## Collection - [Grade 12 past papers](https://www.hlayiso.com/grade-12/past-papers) --- Hlayiso: free CAPS and IEB past papers, memos, notes and study guides for South African learners. 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