2018 KZN June Answer Book_hlayiso.com_.pdf

education Department: Education PROVINCE OF KWAZULU-NATAL ACCOUNTING ANSWER BOOK COMMON TEST JUNE 2018 NATIONAL SENIOR CERTIFICATE [ GRADE 12 QUESTION MARKS OPRPOoOIN]- Copyright reserved MOD BY THE PROVINCE MOD BY THE MOD BY THE | SCHOOL _ CLUSTER. N.B. This answer book consists of 16 pages. Please turn over

Downloaded from hlayiso.com ce ~ Accounting 2 June 2018 Common Test NSC 1 QUESTION 1 1.1 | Cash Receipts Journal Cash Payment Journal 49 067 _| 51775 10 1.2 | Calculate the Bank balance on 31 May 2018. (You may prepare a ledger account in order to do so). State whether this is a favourable or an unfavourable balance. 1.3 | Prepare the Bank Reconciliation Statement on 31 May 2018. | Z Sopy "Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting June 2018 Common Test NSC 4.4 [As internal auditor you are not happy with the manner in which cash is ] being controlled in this business. Identify TWO problems and provide figures to support your answer. Give advice on how these problems can be avoided in future. Problem with evidence Advice | TOTAL MARKS 30 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 4 June 2018 Common Test NSC QUESTION 2 2.1.1 | Explain how a debtors’ age analysis can assist with internal control over debtors. _ 2 | 2.1.2 Calculate the percentage of total debts exceeding the credit terms. ~ ————— oe ee 2.1.3 [ Explain ONE problem (with figures) relating to each of the following debtors: _ Mswane P Hambrok V | ES Please turn over ° Py Copyright reserved

Downloaded from hlayiso.com 5 Accounting June 2018 Common Test NSC 2.2.1] Briefly explain how the preparation of a creditors’ reconciliation as an internal control measure can assist the business in managing their creditors effectively. Provide TWO points 2.2.2 Creditors ledger account ~T Statement 11 005 19 620 + m0 |O |w |> 14 TOTAL MARKS Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 6 June 2018 Common Test NSC QUESTION 3 3.1 | Write only the letter (A-E) next to the question number. 3.1.1 3.1.2 3.1.3 8 3.1.4 77 See 3.2.1 on the next page 3.2.2 | Prepare the Trade and other payables note on 28 February 2018. ‘ — 14 ’ Pp Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 7 June 2018 Common Test NSG INCOME STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2018. Sales Cost of sales Gross profit Other operating income Gross income Operating expenses Directors fees 550 000 Audit fees 188 410 39 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 8 NSC 3.3.1 | What type of audit opinion is provided by the independent auditor? 3.3.2 3.3.3 ee —— ET 3.3.4 TOther than the shareholders of SME Limited, list TWO other parties that Copyright reserved June 2018 Common Test To whom is the ‘audit report addressed? ___ 5 ] What is the responsibility of the directors with regards to the audit [report? EE saa = Leceremn AEST TRG TERTEES RY RNAI A ORE IPR seen will be interested in the audit report of the company. Briefly explain why each would be interested. __| a — = PARTY REASON TOTAL MARKS 70 Please turn over

Downloaded from hlayiso.com Accounting 9 June 2018 Common Test NSC QUESTION 4 4.1.1 | What is a Fixed Assets Register? Explain how this register assists the internal auditor in the course of his duties. What is a Fixed Assets Register? Explain how this register assists the internal auditor in the course of his duties 4 4.1.2 | (a) Calculate the total depreciation on Equipment on 30 June 2018. ~ 7 4.1.2 } (b) [Calculate the carrying value of Vehicle sold on 31December 2017. ~ | 7 Copyright reserved Please turn over

4 Accounting NSC Downloaded from hlayiso.com June 2018 Common Test 4.1.2 } (c) | Calculate the carrying value of Equipment on 30 June 2018. 4.1.3 | What is a Fixed Assets Register? Explain how this register assists the internal auditor in the course of his duties. 300 000 shares @ R2 R600 000 4.1.3 [Prepare the following notes for the year ended 30 June 2018: Retained income Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 11 June 2018 Common Test NSC 4.1.4 BALANCE SHEET (STATEMENT OF FINANCIAL POSITION) ON 30 June 2018. ASSETS NON-CURRENT ASSETS CURRENT ASSETS TOTAL ASSETS EQUITY AND LIABILITIES ORDINARY SHAREHOLDERS EQUITY NON-CURRENT LIABILITIES CURRENT LIABILITIES TOTAL EQUITY AND LIABILITIES 34 TOTAL MARKS 60 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 12 June 2018 Common Test NSC QUESTION 5 5.1.1 [Explain ONE main difference between the periodic and continuous (perpetual) inventory systems. 2 5.1.2 Calculate the value of closing stock on 28 February 2018 using the weighted average method. 10 Calculate the gross profit on 28 February 2018 using the average weighted method. 4 5.1.3 [Calculate the number of units missing. (The missing stock is from January purchases) 6 5.1.4 | Calculate the value of closing stock using the FIFO method. 9 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 13 June 2018 Common Test NSC 5.1.5 | R. Reed, the owner, asked you to switch to the FIFO-method of inventory valuation when you are going to prepare the financial statements for 2018. What will your response be to this request? 3 5.2 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 Hibberdene (Mpisane) Umkemaas (Shabangu) Umdloti (Lekota) 6 TOTAL MARKS 40 Copyright reserved Please turn over

Accounting NSC QUESTION 6 6.1.1 6.1.2 MADADENI LTD Downloaded from hlayiso.c om June 2018 Common Test CASH FLOW STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2017 Cash flow from operating activities Cash generated by operations 1 852 950 Interest paid (54 000) Cash flow from investing activities Cash flow from financing activities Net change in cash and cash equivalent Cash and cash equivalent at the beginning Cash and cash equivalent at the end 27 Solvency ratio Copyright reserved Please turn over

Accounting 15 June 2018 Common Test 6.1.3 6.1.4 6.1.5 Downloaded from hlayiso.com NSC Debt-equity ratio Net asset value per share (NAV) The directors are pleased that the operating efficiency of the business has improved. Quote and explain TWO financial indicators to support their opinion. The liquidity of the company has improved. Quote THREE financial indicators to support this statement. The company directors feel that the shareholders should be disappointed with the returns and earnings of the company. Quote TWO relevant financial indicators (actual ratios or percentages) to support their opinion. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 16 June 2018 Common Test NSC 6.1.6 | Dividend policy: Provide calculations to show the change in the dividend pay-out policy. Explain why the directors decided to change the policy. State TWO points with figures. 6.1.7 | Besides paying back the loan, the directors have taken other major decisions that have affected the cash balances. State TWO other major decisions (exceeding R700 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 TOTAL MARKS 70 Copyright reserved