Accounting Grade 12 KZN Prelim 2017 Addendum

Downloaded from hlayis | Education KwaZulu-Natal Department of Education REPUBLIC OF SOUTH AFRICA eee eee eee es, a" ACCOUNTING ‘ : ANSWER BOOK : * SEPTEMBER 2017 : = PREPARATORY EXAMINATION NATIONAL SENIOR CERTIFICATE GRADE 12 Grade: MOD BY THE | MOD BY THE CLUSTER PROVINCE N.B. This answer book consists of 14 pages

Downloaded from hlayiso.com Accounting Examinations September 2017 QUESTION 1 1.1 1.1.1 1.1.2 1.1.3 1.1.4 4 1.2.1 CRJ CPJ 107 200 121 165 8 1.2.2 Bank reconciliation statement on 28 February 2017. 9 1.2.3 | As the internal auditor you are not happy with the manner in which cash is being controlled in this business. Identify ONE problem and provide a figure to support your answer. Give advice on how this problem can be avoided in future. Problem Advice = 2 opyright Reserved Please turn over

Downloaded from hlayiso.com Aci Preparatory Examinations September 2017 1.3.1 Creditors ledger Creditors reconciliation statement 38 100 40 800 (i) (ii) (iii) (iv) (v) (vi) 13 1.3.2 | Explain how the creditor’s reconciliation statement can assist the business in terms of their internal control measures. State TWO points. 4 TOTAL MARKS 40 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting tory Examinations September 2017 . QUESTION 2 2.1.1 | After taking into account the errors and omissions, calculate the VAT amount that is either payable to or receivable from SARS. Indicate whether this amount is receivable or payable. Receivable/Payable: 12 2.1.2 | The internal auditor discovered that the owner, M Ngubane, used the VAT collected from customers to pay expenses of the business. Therefore, he was unable to pay the VAT owed to SARS on the due date. State ONE point of advice that you would offer M Ngubane concerning this practice. opyright reserved Please turn over

Downloaded from hlayiso.com Ac Preparatory Examinations September 2017 2.2.1 | Calculate the value of the closing stock on 28 February 2017 using the weighted-average method. 9 2.2.2 | Calculate the average stock-holding period (in days) on 28 February 2017. 6 2.2.3 [Comment on the stock-holding period and explain how this would affect the business Comment How this would affect the business. 4 2.2.4 | Calculate the value of the closing stock by using the FIFO method. 7 TOTAL MARKS 40 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting tory Examinations September 2017 , QUESTION 3 310 13.44 3.1.2 3.1.3 3 3.2.1 Next page 3.2.2 Tangible asset Land and Vehicles equipment buildings Carrying value at the beginning Cost price at the beginning 2 000 000 800 000 Accumulated depreciation at (0) (536 000) (650 000) the beginning Movements Additions (0) Cost price at the end 5 000 000 Accumulated depreciation at (0) the end 19 Trade and Other Receivable 11 opyright reserved Please turn over

Downloaded from hlayiso.com Act Preparatory Examinations September 2017 3.2.4 ZOLALTD INCOME STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2017 Sales Cost of sales Operating income Rent income (153 120 Gross income Other operating expenses Salaries and employers contribution 926 687 Directors fees 860 000 Audit fees (79 000 Packing material (13 600 Sundry expenses ( 292 330 Operating profit Net profit before tax 47 TOTAL MARKS Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting tory Examinations September 2017 . QUESTION 4 ~ 41 4.1.1 4.1.2 4.1.3 4.1.4 4.1.5 5 4.2.1 Ordinary Share Capital note Authorised shares 1 900 000 shares Issued shares 1 000 000 Shares at the beginning @ R 5 5 000 000 8 4.2.2 Cash Flow Statement on 30 June 2017. Cash flow from operating activities Cash generated by operations 1 225 800 Interest paid (144 000) Cash flow from investing activities Proceeds on sale of fixed assets 200 000 Decreased in fixed deposit 600 000 Cash flow from financing activities Repayment of loan (1 080 000) Cash and Cash Equivalents at the end of the year 205 000 23 »pyright reserved Please turn over

Downloaded from hlayiso.com Acco Preparatory Examinations September 2017 wee 4.2.3 | Calculate the Current ratio for 2017. 3 4.2.4 Comment on the following financial indicators: Comment with figures Reason for change % gross profit on the cost of sales. % operating expenses on sales. 4 4.2.5] From 2016 to 2017 the directors made a deliberate decision to change the policy on the distribution of profit in the form of dividends. Explain this change. Quote figures/calculations to support your answer. 4 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting Dronoratory Examinations September 2017 4.2.6 | Shareholders are satisfied with the issue price of the new shares. Quote TWO financial indicators with figures to support this statement. 4.2.7] One of the directors feel that the loan should be paid as soon as possible. Do you agree? Explain. Quote TWO financial indicators with | figures to support your answer. 4.2.8 | The shareholders should be satisfied with the return on their investment and the companies’ earnings. Explain TWO financial indicators with | figures to support this opinion. TOTAL MARKS 60 Copyright reserved Please turn over

Downloaded from hlayiso.com Accc Preparatory Examinations September 2017 QUESTION 5 5.1 5.1.1 5.1.2 5.1.3 5.1.4 4 5.2.1 | Calculate the Direct Material Cost 6 5.2.2 | Calculate the Factory Overhead Cost Depreciation 32 000 Sundry expenses 49 800 17 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting Drenoratory Examinations September 2017 5.2.3 | Production cost statement Prime Cost Production Cost Production Cost of finished goods 13 5.3.1 | Calculate the Break-even point for 2017. 4 5.3.2 | Explain why the owner should be concerned about the break-even point. Provide TWO points. 4 5.3.3 | Provide one reason for the decrease in the Direct Material Cost. 2 TOTAL MARKS 50 Copyright reserved Please turn over

Downloaded from hlayiso.com Acco Preparatory Examinations September 2017 QUESTION 6 6.1.1 | Prepare a Debtors Collection Schedule for November 2017. Month Credit sales September | October November August 1246 000 498 400 249 200 September 910 000 302 575 364 000 182 000 October 630000 | | 209475 November va an TOTAL 800 975 822 675 i 6.1.2 The payment to creditors for November 2017. 3 The loan amount for October 2017 4 The amount for advertising in September 2017 3 6.1.3 | EXPLANATION ADVICE FUEL: RENT INCOME: 4 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting paratory Examinations September 2017 6.2 | MANAGEMENT OF FIXED ASSETS Identify ONE different problem regarding each vehicle/driver. Quote figures to support your answers. Give John ONE point of advice for EACH problem identified. Problem Advice Vehicle 1 (Sibusiso) Vehicle 2 (Jabulani) Vehicle 3 (Xolani) 9 TOTAL MARKS 30 Copyright reserved