Accounting Grade 12 Paper 2 FS Prelim 2020 Addendum

Downloaded from hlayiso.com education Department of Education FREE STATE PROVINCE SCHOOL: LEARNER: PREPARATORY EXAMINATION ACCOUNTING P2 GRADE 12 SEPTEMBER 2020 SPECIAL ANSWER BOOK QUESTION MARKS INITIAL MODERATOR 1 2 3 4 TOTAL Copyright reserved This answer book consists of 11 pages. Please turn over

Downloaded from hlayiso.com FS/September 2020 Grade 12 Prep. Exam QUESTION 1: RECONCILIATIONS 1.1 Indicate whether the following statements are TRUE or FALSE. Write only 'True' or 'False' next to the question number. 1.1.1 1.1.2 1.1.3 3 1.2 Analyse the transactions according to the columns provided in the ANSWER SHEET . Show amounts only for the Cash Journals and the Reconciliation Statement, and indicate a 'No entry' with an X. Cash Journals Bank Reconciliation No entry No. Statement CRJ CPJ Debit Credit E.g. 750 A B C D E F 9 1.3 DEBTOR'S COLLECTION SCHEDULE AND AGE ANALYSIS: 1.3.1 Why is the preparation of a debtor's collection schedule and debtor's age analysis important internal control measures? Debtor's collection schedule: Debtor's age analysis: 4 Copyright reserved Please turn over

Downloaded from hlayiso.com FS/September 2020 Grade 12 Prep. Exam 1.3.2 Calculate the percentage of debtors' accounts that comply with the credit terms. 3 1.3.3 Explain TWO measures to prevent losses due to bad debts in the future. 4 Copyright reserved Please turn over

Downloaded from hlayiso.com FS/September 2020 Grade 12 Prep. Exam CREDITORS' RECONCILIATION: 1.4.1 Although Future Traders offers credit terms of 60 days, Generations Suppliers prefers to settle their account within 30 days during certain months. Provide TWO points to indicate that it is not a good decision. 2 1.4.2 CREDITORS LEDGER OF STATEMENT FROM GENERATION FUTURE TRADERS SUPPLIERS 21 130 32 600 A B C D E 10 TOTAL MARKS 35 Copyright reserved Please turn over

Downloaded from hlayiso.com FS/September 2020 Grade 12 Prep. Exam QUESTION 2: INVENTORY VALUATION & VAT 2.1 INVENTORY VALUATION: 2.1.1 Calculate the value of the closing stock of Longlast AA 6- pack units on 31 October 2019. 6 2.1.2 Calculate the average stock-holding period, given the cost of sales amounted to R483 750 for the year ended 31 October 2019. Comment on your findings above: 6 2.1.3 The owner is concerned about the sales of Petcell AA 6-pack units, and considers to discontinue this product line: Calculate the value of the closing stock of Petcell AA 6- pack units. 5 Calculate the cost of sales of the Petcell AA 6-pack units. 3 Copyright reserved Please turn over

Downloaded from hlayiso.com FS/September 2020 Grade 12 Prep. Exam Calculate the stock turnover rate for the year. 5 2.1.4 Give TWO reasons why the owner must discontinue the sales of Petcell AA 6-pack units. 4 2.2 VAT 2.2.1 Calculate the VAT amount payable/receivable to SARS. 9 2.2.2 Give ONE reason why the auditor would not be satisfied with this explanation. 2 TOTAL MARKS 40 Copyright reserved Please turn over

Downloaded from hlayiso.com FS/September 2020 Grade 12 Prep. Exam QUESTION 3: MANUFACTURING 3.1 SOS MANUFACTURERS Calculate and complete the following on 30 September 2019: 3.1.1 Direct materials issued to the factory for the year. 7 3.1.2 The production cost of finished goods for the year. 5 3.1.3 Factory Overheads Cost Note for the year. 13 Copyright reserved Please turn over

Downloaded from hlayiso.com FS/September 2020 Grade 12 Prep. Exam 3.1.4 Complete the Production Cost Statement for the year. Prime cost Total cost of production of finished goods 7 3.2 H2O is a small manufacturing business that produces plastic water bottles. 3.2.1 Calculate the break-even point for H2O on 29 February 2020. 4 3.2.2 Explain why Wally should be concerned about the profitability and sustainability of the business. Give TWO points with figures to support your answer. 4 TOTAL MARKS 40 Copyright reserved Please turn over

Downloaded from hlayiso.com FS/September 2020 Grade 12 Prep. Exam QUESTION 4: CASH BUDGETS 4.1 Explain why a business needs to prepare a Cash Budget every year. 2 4.2 Calculate the expected receipts from debtors for November 2019. 5 4.3 Calculate the amounts indicated by A–D in the Cash Budget. A B C D 4 4.4 The rent income increased by 9% on 1 November 2019. Calculate the rent income amount for October 2019. 3 4.5 In your opinion, is Rian's capital contribution in November sufficient to support this business venture? Give ONE reason to support your answer. 3 Copyright reserved Please turn over

Downloaded from hlayiso.com FS/September 2020 Grade 12 Prep. Exam 4.6 Calculate the percentage increase granted to the employees on 1 November 2019. 3 In your opinion, will the employees be satisfied with this increase? Briefly explain. 3 4.7 As the internal auditor you discover that the actual motor vehicle expenses for December 2019 were R9 600. Give TWO points that you would include in your internal auditors' report to Rian. 4 4.8 Calculate the interest payable to Wesrand Bank in December 2019. 5 Calculate the monthly repayments of the capital portion of the loan to Wesrand. 3 TOTAL MARKS 35 TOTAL: 150 Copyright reserved