2022 Focused Revision Grade 10 QP TERM 1

GRADE 10 2022 SPIP FOCUSED REVISION FIRST PUSH (HIGHLIGHT AND WRITE) MARCH HOLIDAYS TERM 1 (5 DAYS : 2 HOURS PER DAY) Copyright reserved Please turn over

Focused Revision 2 Term 1 / 2022 TERM 1 INTERNAL CONTROL  Internal control refers to processes applied by the business. NEED/Importance for Internal control:  It ensures:  reliable financial reporting  effective and efficient operations  safeguard assets against theft and unauthorized use  compliance with applicable laws and regulations  It eliminates the possibilities of fraud and theft  It promotes operational efficiency Internal control procedures may include: 1. Division of duties (one employee serves as a check on another)  is important for those activities involving authorization, ordering and receiving of goods / assets, and recordkeeping  creates a system of checks and balances as different individuals perform different functions in the same process Example: The same person, responsible for the record keeping of stock should not be responsible for the physical control of stock. 2. Proper authorization of transactions / proper signatures on all documents (where applicable)  Some transactions need the authority / at least two signatures / approval of a senior staff member(s)  Payments made by EFT or from the petty cash have to be properly authorised by at least two signatories to avoid fraud / theft.  It ensures that all business activities adhere to established guidelines. Example: The order for stock may not be placed unless it is signed by the stock manager. 3. Accurate documentation and proper recording procedures  Correct documents and the recording thereof provide evidence and a paper trail that correct procedures were followed and that financial statements are accurate. Example: Invoices, receipts, proof of payments, debit notes, credit notes, etc. that are easy to use, that capture sufficient information about transactions and are pre-numbered for easy filing and retrieval must be in use on a daily basis with the interactions with customers and suppliers. 4. Safeguarding of records and restricted access / Physical control measures of asset items.  Physical control over assets and records helps protect the business assets Example: electronic or mechanical controls (a safe, ID cards, fences, cash registers, fireproof files, locks, clock cards for timing employees paid per hour or day, etc.) AND/OR computerised controls (scanners, bar coding, etc.) dealing with access privileges or establishing backup and recovery procedures for business data. Copyright reserved

Focused Revision 3 Term 1 / 2022 5. Independent checks by internal auditors or senior employee.  Independent checks can be made on performance by someone who did not do the work him-/herself.  It ensure the reliability of accounting information and the efficiency of operations. Example: A supervisor verifies the accuracy of a retail clerk's cash drawer at the end of the day. Internal auditors may also verify that the supervisor performed the check of the cash drawer. SPECIFIC INTERNAL CONTROLS: CASH  Separate the duties of persons receiving money from the TRANSACTIONS payment of money, e.g. EFTs must be approved by the person authorized to do so and not the person who performs the EFTs.  All cash received must be deposited daily as far as possible.  Receipts and EFTs must be recorded promptly into the cash journals and posted accordingly.  Journals should be totaled at the end of the month and reconciled with the bank statement INVENTORY /  Separation of duties STOCK  Only authorized personnel may order stock  Goods received must be checked against the invoice received to ensure all ordered goods have been received.  Stock must be kept in a safe and secure environment.  Proper records must be kept for the receiving of goods.  Stock be physically checked on a continuous basis.  Stock leaving the stockroom must be done only by persons that have access to the stock. FIXED ASSETS  All assets purchased must be recorded in asset register.  Assets must be safely kept.  Staff using asset items should take responsibility for its safekeeping.  Regular checks must be done to ensure that they are in a good working condition.  Vehicles need to be signed in and out and log books kept of authorised trips. DEBTORS CREDITORS SALARIES AND WAGES ETHICS Good ethics refers to:  Knowing the difference between right and wrong  principles  values  beliefs Copyright reserved

Focused Revision 4 Term 1 / 2022 A CODE OF ETHICAL CONDUCT refers to  a set of guidelines designed to set out acceptable behaviour’s for members of a group, association or profession.  A set of rules and regulations that should regulate the behaviour of individuals in the business environment IMPORTANCE OF ETHICS:  To minimize negative impact of fraud and poor management  To avoid poor business practice  To provide guidance to all stakeholders in a business  To encourage responsible behaviour  To promote accountability and transparency BASIC PRINCIPLES OF GOOD (ethical) GOVERNANCE* (based on King Code III) *(Governance is all about how a business should be controlled and managed having regard to the interest of its owners and other stakeholders) Discipline Commitment to good behaviour Transparency To ensure that all business activities are honest, moral, just, honourable and ethical enough to bear public scrutiny Independence Be able to manage and avoid conflict of interest Accountability To ensure that everyone in the business will be accountable/responsible for their actions. Individuals is obliged to take responsibility / answer for the quality and accuracy of their actions and conduct in the business Responsibility Actions / Conduct must always be socially and legally acceptable, and be executed with the least amount of risk for all stakeholders Fairness All actions and decisions should be objective - based on facts and honesty without prejudice Social To be aware of the business' responsibilities towards the community in responsibility which they operate CHARACTERISTICS OF GOOD ETHICS Fairness All actions and decisions should be objective - based on facts and honesty without prejudice Objectivity There is no biasness when preparing the books of the business; to have no personal interest when making business decisions Professionalism It is always one’s duty to act professionally; ensure that actions do not reflect poorly on the business / helpful / polite / apply your skills and knowledge to the best of your abilities / do tasks to the benefit of the business - be proud of yourself and your work Integrity Every employer and employee must perform his/her duties responsibly and honestly; standards should be high and zero tolerance for bad service or work delivered Confidentiality Information must not be shared or discussed outside the confines of the duty performed. Certain work requires confidentiality Standards of Maintain the rules and regulations as determined per policy Kings Code behaviour of Ethics Conduct Employers and employees must adhere to the code of conduct of the workplace, e.g. arrive or leave on time, dress code etc. (even if no one is 'looking') Copyright reserved

Focused Revision 5 Term 1 / 2022 QUESTION 1 (54 marks; 32 minutes) 1.1 CONCEPTS: Choose a term from COLUMN B that matches the descriptions in COLUMN A. Write only the letter (A – F) next to the question number (1.1.1 – 1.1.6) in the ANSWER BOOK. COLUMN A COLUMN B 1.1.1 An amount invested at a financial A Liability institution for a fixed period of time 1.1.2 Procedures established in a business to B Trade discount safeguard assets and reduce risk 1.1.3 An amount owed by a business to C Trial balance another business 1.1.4 Discount that is granted on buying a D Overdraft certain quantity of goods 1.1.5 The list drawn up from a ledger in order E Internal control to verify that debit and credit transactions are recorded 1.1.6 A negative balance on a bank account F Fixed deposit (unfavourable balance) (1 x 6) (6) 1.2 ZETRO TRADERS The following are transactions of Zetro Traders for March 2021. REQUIRED: Prepare the following subsidiary books: 1.2.1 Cash Receipts Journal (26) Note: All their products are marked at 100% on cost: 1.2.2 Cash Payments Journal (22) Copyright reserved

Focused Revision 6 Term 1 / 2022 INFORMATION: Note that a part of the building was sub-let to a tenant as from December 2020, at a rent of R1 800 per month. Rent increases on 1 March 2021 by 8%. TRANSACTIONS FOR MARCH 2021: 1 Owner Zethu, deposited an extra R20 000 as capital in the business. Borrowed R90 000 from VB Bank at an interest rate of 12% p.a. The amount was deposited to the account of Zetro Traders. 2 Paid Xing Hi-Tech for THREE cash register tills, each costing R4 200 by internet transfer. 5 Cash sales to-date R7 400 10 Purchased trading stock from Baloo Suppliers for R19 820 less 10% trade discount. Paid through EFT Paid Baloo Transporters R450, to transport the stock purchased above through EFT. 15 The bookkeeper made an internet transfer to pay Pro Dance R1 200, for dance classes of the owner. 26 Credit card sales R16 000. 28 The fixed deposit of R80 000 with VB Bank matured. An amount of R83 900 was deposited in the Bank account. This amount includes interest earned on the fixed deposit. 30 The tenant deposited rent amount for March. 31 The bank statement received from VB bank showed the following. Old Sure for business insurance R1 200 Zambi Municipality for water and electricity R600 Service fee R180 Interest earned on favourable balance R110 Cash deposit fee R105 Internet banking fee R30 Credit card levy R109 54 Copyright reserved

Focused Revision 7 Term 1 / 2022 QUESTION 2 (46 marks; 28 minutes) 2.1 ACE TRADERS The information given below was extracted from the accounting records of ACE Traders during November 2020. REQUIRED: Prepare the following accounts in the General Ledger: 2.1.1 Trading stock (6) Show the required calculations in the column provided in the Answer book. (9) 2.1.2 Debtors control (6) 2.1.3 Bank (2) Show the required calculations in the column provided in the Answer book. (3) 2.1.4 Creditors control (6) Show the required calculations in the column provided in the Answer book. (5) 2.1.5 Sales (2) 2.1.6 Cost of sales (3) INFORMATION: A 01 November 2020 Balances/Totals in the General Ledger: R Trading stock 14 500 Debtors control 15 368 Bank (debit) 2 349 Creditors control 12 420 Sales 39 640 Cost of sales 29 700 Copyright reserved

Focused Revision 8 Term 1 / 2022 B. 30 November 2020 Totals of columns in Journals: 1. Cash Receipts Journal Bank Debtors Discount Sales Cost of Sundry control allowed sales accounts ? 7 540 340 5 400 4 050 4 500 2. Cash Payments Journal Bank Wages Trading Creditor Discount Sundry stock s control received accounts 21 040 4 400 ? 7 040 340 4 200 3. Debtors Journal Sales Cost of sales 9 488 7 116 4. Debtors allowances Journal Debtors allowances Cost of sales 396 200 5. Creditors Journal Creditors Trading Equipment Stationery Consumable Sundry control stock stores accounts ? 4 800 1 600 700 1 300 800 6 Creditors allowances Journal Creditors Trading Equipment Stationery Consumable Sundry control stock stores accounts 2 400 ? 600 300 200 400 7. General Journal Debtors control Creditors control Debits Credits Debits Credits Debits Credits 492 236 632 298 2.2 INTERNAL CONTROL: 2.2.1 Discuss TWO measures the accountant could introduce in order to encourage the debtors to settle their accounts sooner. (4) 46 TOTAL:100 Copyright reserved

Focused Revision 9 Term 1 / 2022 QUESTION 1 CONCEPTS AND CASH JUOURNALS (100 marks; 60 minutes) 1.1 GAAP PRINCIPLES: Choose a GAAP principles from COLUMN B to match the description in COLUMN A. Write only the answer next to the question numbers (1.1.1 to 1.1.6) in the ANSWER BOOK. COLUMN A COLUMN B 1.1.1 Income and expenses must be recorded in the A Materiality correct financial period. 1.1.2 Assets and incomes should never be overstated B Going concern and liabilities and expenses should not be understated in the financial statements. 1.1.3 All assets must be recorded at its original cost C Prudence price. 1.1.4 Items that are of importance must be treated D Matching separate. principle 1.1.5 The business will continue to operate in the E Business entity future. 1.1.6 The business and the owner’s affairs must be F Historical cost kept separate. (1 x 6) (6) 1.2 BUNNY STORES The following transactions appeared in the books of Bunny Stores for October 2020. REQUIRED: Record the transactions in the following subsidiary books: 1.2.1 Cash Receipts Journal: (22) 1.2.2 Cash Payments Journal: (43) 1.2.3 Post to the following accounts in the General Ledger.  Fixed deposit: SKY Bank (1)  Trading stock (2)  Bank (2)  Debtors control (2)  Loan: NET Bank (1)  Creditors control (2)  Sales (1)  Cost of sales (1)  Interest on Loan (1)  Bank charges (1) 1.2.4 The balance in the Bank account at the end of the month, is it Favourable or Unfavourable? What is the amount. (2) Copyright reserved

Focused Revision 10 Term 1 / 2022 INFORMATION: Transactions for October 2020: 01 The owner. B Bunny, deposited R80 000 from his own funds to the business. Borrowed R30 000 from NET Bank, the money was directly deposited into the business account. 08 Paid Steve Builders R25 700 for repairs to the buildings, through EFT 10 Credit card sales, R10 000 (cost price R5 000) Cash sales, R18 000 (cost price R9 000) 15 R. Rowlands deposited R200 to settle his debt of R220. 19 Rented additional storage space, for R1 200 from Hire-It and paid the rent for November in advance through EFT. 24 Paid PN Suppliers R900 in settlement of our account a 3% discount was allowed through EFT. 26 Credit card sales, R5 000 (cost price R2 500) Cash sales, R9 000 (cost price R4 500) 28 T Thomas deposited R520 in settlement of the account of R550. 29 Transferred R20 000 to SKY Bank as an investment for two years at 12% interest p.a. 30 Paid Sun Suppliers R2 200 by EFT and received R200 discount. 31 Paid wages to two employees, P. Zunguza and N Chonco through EFT, each employee earns R1 500. Bought goods for R40 600 From Sun Suppliers and received a 5% trade discount, transferred funds electronically for payment. Paid R800 to Sun Transporters for delivery of goods purchased. Paid through EFT. Received the bank statement from NET Bank, which showed the following: Service fee R125 Interest on overdraft R225 Cash handling fee R260 Stop order to Advert specialist for advertising in the weekly newspaper. R110 Stop order to Suntan (owner’s life insurance). R300 Stop order to Suntan (business insurance). R380 Interest on loan at 18% p.a. (deducted monthly) ? Copyright reserved

Focused Revision 11 Term 1 / 2022 1.3 INTERNAL CONTROL: Bunny stores received a complaint from a debtor, D Sono. She informed the owner that she received a receipt of R900 from the cashier, S Kelm, after paying off her account. When she received the statement of account, however it revealed a payment of R90 only. REQUIRED: 1.3.1 Name TWO internal control measures that should be adopted by the business to prevent this from occurring in the future. (4) 1.3.2 What disciplinary measures should Bunny Stores take against S Kelm? (3) 1.3.3 Discuss THREE measures the accountant could introduce in order to encourage the debtors to settle their accounts sooner. (6) 100 Copyright reserved

Focused Revision 12 Term 1 / 2022 QUESTION 1: CONCEPTS AND CASH JOURNALS (75 marks; 60 minutes) 1.1 CONCEPTS Choose the correct term from the list that best describes the statement below. Write only the answer next to the number (1.1.1 – 1.1.5) in the ANSWER BOOK. Fixed assets; Liabilities; Drawings: Cash float; Petty cash; The double entry principle; Capital contribution 1.1.1 Money used to make small cash payments to avoid bank charges. 1.1.2 The owner’s investment in a business. 1.1.3 Debts of a business. 1.1.4 Possession of the business that have a life-span of more than one year. 1.1.5 For every debit entry there is a corresponding credit entry in the ledger. (1 x 5) (5) 1.2 NAIDOO TRADERS The following transactions appeared in the books of Naidoo Traders. REQUIRED: Record the following transactions for May 2021 in the: 1.2.1 Cash Receipts Journal (22) 1.2.2 Cash Payments Journal (31) 1.3 Post to the following accounts in the General Ledger and balance them. 1.3.1 Bank Account (4) (4) 1.3.2 Trading Stock Account 1.4 Comment on the change in the bank balance during May. Explain whether the owner should be concerned. Quote figures to support your answer. (3) 1.5 Explain the difference between petty cash and cash float. (2) 1.6 The owner wants to ensure that only reliable people are granted credit in the business. What information should be obtained from applicants before allowing them to open accounts? Provide Two points and a reason in each case. (4) Copyright reserved

Focused Revision 13 Term 1 / 2022 Transactions during May 2021: Date Transaction Amount R 2 Made an EFT to Samsung Stores (a creditor) as part payment of our account. Received a 5% discount on this amount 8 500 4 Cash sales for the week. Goods are sold at a profit mark-up of 60% on cost. 12 800 6 EFT payment to Telex to pay the May 2021 telephone account. 2 282 8 EFT credit from U Bank being a loan that was negotiated during February 2021 at 18% p.a. 80 000 10 Cash sales, R20 081 and credit card sales for the week, Goods are sold at a profit mark-up of 60% on cost. 50 944 Lally Kutu, a debtor settled her account by processing an EFT payment. She qualifies for a 2 ½ % discount on the payment. She has deducted the discount. 12 402 EFT credit for May and June rental received from XY Agency. 16 600 12 Trading stock purchased from Mzansi Suppliers, R36 000 and office chairs. All items are subject to a 5% trade discount. EFT payment was made. 36 480 EFT debit to ABC Transport who delivered the items purchased above. 2 560 Purchased a delivery van from MM Motors. EFT payment was made. 130 950 15 Electronic deposit made by Nurse Chonco (a debtor) in settlement of her account of R24 000. 23 410 25 Paid Craig Stores (a creditor) as part payment of our account. Received a 5% discount on this amount. Payment was made electronically. 26 500 28 EFT payment to Thivo Cash & Carry for the following.  Trading stock 35 800  Computer for office use 15 999 A direct deposit was made by Turn Bank into the bank account of Naidoo Traders. This was in respect of Fixed deposit of R60 000 which had matured, as well as interest earned. R67 200 Copyright reserved

Focused Revision 14 Term 1 / 2022 31 Bank statement from Turn Bank showed the following:  Service fee 576  Cash deposit fee 88  Credit card levy 402  Interest on overdraft 1 228  Debit order payment to ZIP Insurers for the owner’s car, R2 000 and the business vehicles. 6 645  Debit order payment to municipality for water and electricity. 4 123 75 Copyright reserved

Focused Revision 15 Term 1 / 2022 QUESTION 1 GAAP AND ACCOUNTING EQUATION (25 marks;15 minutes) 1.1 GAAP PRINCIPLES Choose a description from COLUMN B that matches the concept in COLUMN A. Write down only the letter (A-E) next to the question number (1.1.1 – 1.1.5) in the ANSWER BOOK COLUMN A COLUMN B 1.1.1 Historical cost A. Amounts reflected on financial statements are expected to be realistic (conservative). 1.1.2 Matching B. Items of significance should be shown separately in financial statements. 1.1.3 Going concern C. Income and expenses must be recorded in the correct financial year. 1.1.4 Materiality D. Financial statements are prepared with the assumption that the company will continue operating in the future. 1.1.5 Prudence E. Fixed assets are recorded at their original cost price, although their market value may be different. (1 x 5) (5) 1.2 ACCOUNTING EQUATION Analyse the following transactions in the books of Benito Traders as indicated by the example below. Benito Traders operates at a fixed mark-up of 25% on cost price. E.g. Pay the telephone account per EFT, R120. No. Account Account Assets Owners’ Liability debited credited equity e.g. Telephone Bank - R120 - R120 0 1.2.1 Pay wages from the petty cash, R150. 1.2.2 Bought goods on credit, R3 500. 1.2.3 Cash sales for the week R24 750. Profit mark-up is 25% on cost price. 1.2.4 Returned goods back to the supplier, issued a debit note for R130. (1 x 20) (20) 25 Copyright reserved

Focused Revision 16 Term 1 / 2022 QUESTION 2 ETHICS AND CALCULATION OF CAPITAL AMOUNT/INTEREST (25 marks; 15 minutes) 2.1 ETHICS One of the basic principle of ethics according to King Code III is effective leadership. Choose a description from COLUMN B that matches the concept in COLUMN A. Write down only the letter (A-E) next to the question number (2.1.1 – 2.1.5) in the ANSWER BOOK. COLUMN A COLUMN B 2.1.1 Discipline A The leaders of a business should treat people equally. They should base their decision on social justice. 2.1.2 Responsibility B The leaders of a business must report all relevant information honestly and on time. 2.1.3 Accountability C Leadership that is committed to controlled behaviour that is universally accepted as correct and proper. 2.1.4 Fairness D They must be able to justify their actions and decisions in a formal way, especially where irregularities are concerned. 2.1.5 Transparency E They accept the consequences of their actions and decisions regarding the business. (1 x 5) (5) Copyright reserved

Focused Revision 17 Term 1 / 2022 2.2 FEM TRADERS: The following balances appeared on 1 July 2020, the beginning of the financial year, in the General Ledger of FEM Traders. REQUIRED: Use the given information to calculate the interest on the fixed deposit and the interest on the loan on the respective dates as indicated on your answer book. (20) HINT: Draw a timeline. INFORMATION: A. GENERAL LEDGER OF FAM TRADERS: Balance: 1 July 2020 Fixed Deposit: Nedbank ? Loan: FNB (12% p.a.) R450 000 B. TRANSACTIONS: 2020 Oct 1 Issue an EFT payment to FNB for the interest due on the loan. Oct 30 The interest rate on the loan at FNB increase to 15% p.a. Dec 1 Pay an instalment of R40 000 on the loan at FNB per EFT. 2021 Feb 28 Paid FNB for the outstanding interest on loan through EFT. Jun 30 Paid FNB for interest on the loan for the last 4 months through EFT. Electronic transfer of R12 765 from Nedbank. The amount represents a fixed deposit from Nedbank that has matured plus one year’s interest at 11% per annum. 25 Copyright reserved

Focused Revision 18 Term 1 / 2022 QUESTION 3 ACCOUNTING CYCLE AND JOURNALS (50 marks; 30 minutes) 3.1 ACCOUNTING CYCLE: REQUIRED: 3.1.1 Complete the missing steps (a – d) in the accounting cycle: (4) Step 1 Transactions Step 2 (a) Step 3 (b) Step 4 (c) Step 5 (d) Step 6 Financial Statements Step 7 Analysis and interpretation 3.1.2 Name TWO financial Statements. (2) 3.2 JOURNALS: You are provided of information for EMDO Traders for March 2022. The business uses a 60% profit mark-up on cost price. REQUIRED: Record the following transaction in the correct journals of EMDO Traders for March 2022. Do not close off the journals at the end of March 2022. 3.2.1 Cash Receipts Journal (13) 3.2.2 Cash Payments Journal (14) 3.2.3 Debtors Journal (6) 3.2.4 Debtors Allowances Journal (3) 3.2.5 Creditors Journal (4) 3.2.6 Creditors Allowances Journal (4) Copyright reserved

Focused Revision 19 Term 1 / 2022 Transactions for March 2022: 01 Received a direct deposit of R340 from A. Kelly in settlement of his debt of R350. Issue receipt 23. Credit card sales of merchandise, R544. 05 Bought a computer for R8 580, merchandise for R1 550 and stationery R360 according to credit invoice no 336 from All Supplier. 07 Pay R1 386 to Carlton Traders with EFT 47. This was in payment of the business’ debt of R1 402. 08 Bought the following from Emslie Ltd and paid by EFT: Trading stock, R2 800. Receive 5% trade discount and a 10% cash discount. Pay R100 by EFT to Pro Courier for delivery of the above items. 10 Withdraw cash at the bank to pay the week’s wages, 2 employees, R340 each. 11 Receive credit note AS1 from All Supplier. This is to notify Emdo Traders of a 10% trade discount on all items which was not on the invoice of the 5th. 12 Receive cash from J. August as payment on his account, R250. 13 Withdrew money using debit card for petty cash R100 and to pay the owner’s telephone account of R460. 14 Issued invoice No. 100 to B. Theron for merchandise sold to him on credit, R416. A gross profit of R156 was made on this transaction. 15 Theron return goods sold to him om the 14th, R120 (cost price R75). He was unsatisfied with the quality of the goods. Issue credit note 5 to him. 18 Credit sales to A. Kelly, cost price R450. 19 Kelly complained about the goods sold to him on the 18th. Give him R50 discount. 21 Kurz, a debtor, settled his account with a direct deposit for R285 after a 5% discount has been allowed. Issued a receipt to J. Majiet for monthly rent paid by direct deposit. The rent was R900 per month but has now been increased with 10%. 28 The bank statement received from ABSA show the following entries:  Service fee, R19, cash handling fee, R10 and credit card levies R24.  Interest received R18.  A debit order for insurance premium R360 to SANTAM was paid. 50 Copyright reserved

Focused Revision 20 Term 1 / 2022 QUESTION 4 DEBTORS LEDGER (10 marks; 6 minutes) You are provided with information from the records of Coronation Stores. REQUIRED: 4.1 Use the information below to complete the account of A Alexander in the Debtors Ledger of Coronation Stores for May 2021. (10) INFORMATION: A. Balance on 1 May 2021 in the Debtors Ledger: A. Alexander: R436. B. Summary of transactions extracted from journals for May 2021. 3 Sold goods on credit to A. Alexander R120, cost price R100. (Invoice 82) 9 Cash sales to A. Alexander R325, cost price R250. (CRR 87) 17 Sold goods on credit to A. Alexander. The selling price was R990, but he was granted a 10% trade discount. (Cost price R750). Issue invoice 93. 18 Goods returned by A. Alexander R80. Cost price R50. Issue credit note 3 to him. 25 Receive R1 000 from A. Alexander to settle part of his debt. A discount of R15 was allowed for early payment. (Issue receipt 19) 10 TOTAL: 110 Copyright reserved

Focused Revision 21 Term 1 / 2022 QUESTION 1 SOURCE DOCUMENTS , GENERAL LEDGER AND TRIAL BALANCE (65 marks; 39 minutes) 1.1 STAR STATIONERS Linda started her own business, Star Stationers, which sells stationery. Linda did not have accounting as a subject at school and asks your help with the financial side of her business. Marcia uses the perpetual stock system and earns a profit of 50% on cost price. Linda is not sure which source documents she needs to buy or have printed. REQUIRED: SOURCE DOCUMENTS: 1.1.1 Explain the importance of source documents to Linda. (2) 1.1.2 Explain the perpetual stock system. (2) 1.2 Use a copy of the table below to explain the use of the different source documents to Linda. (6) No. Purpose Source document 1.2.1 The document used for recording credit sales. 1.2.2 The document used for recording money received from a debtor. 1.2.3 The document used when a debtor returns goods. 1.2.4 The document used when trading stock is returned to creditor. 1.2.5 The document used for recording cash sales 1.2.6 The document received from a creditor when goods are bought on credit. Copyright reserved

Focused Revision 22 Term 1 / 2022 1.3 GOLDEN TRADERS You are provided with information relating to Golden Traders: REQUIRED: 1.3.1 Post the totals from subsidiary books to the Accounts in the General Ledger  Balance the necessary accounts. (37) 1.4 Prepare a Trial Balance on 31 May 2020. (18) INFORMATION: A Totals in the Subsidiary Journals0n 31 May 2020 Cash Receipts Journal R Bank 27 920 Sales 20 400 Cost of sales 10 200 Debtors Control 6 320 Discount Allowed 252 Sundry accounts (Rent income) 1 200 B Cash Payments Journal Bank 35 191 Trading Stock 10 700 Stationery 410 Wages 11 800 Creditors Control 7 631 Discount Received 305 Sundry accounts (Equipment) 4 650 C Debtors Journal Sales 15 600 Cost of sales 7 800 D Debtors Allowances Journal Debtors Allowances 980 Cost of sales 450 E Creditors Journal Creditors Control 16 706 Trading Stock 9 750 Stationery 632 Sundry accounts (Equipment) 6 324 F Creditors Allowances Journal Creditors Control 2 079 Trading Stock 1 360 Sundry accounts (Equipment) 719 65 Copyright reserved

Focused Revision 23 Term 1 / 2022 QUESTION 2 (35 marks; 21 minutes) 2.1 SUN TRADERS The information below refers to Sun Traders who buy and sell for cash and on credit. 2.1.1 Refer to information A: Record the following transactions directly in the account of N Mishaal (a debtor) in the Debtors Ledger. (19) 2.1.2 Refer to information B: Record the following transactions directly in the account of XYZ Suppliers in the Creditors Ledger. (16) INFORMATION: Transactions for January 2021: A 1 Balance owing by N Mishaal R3 000. 3 Sold merchandise for R400 to N Mishaal on credit as per invoice no. C05. 8 Delivered stock on credit to N Mishaal as per invoice no. C31, R800. 9 Issued credit note no. B29 to N Mishaal for spoilt goods returned R150. 14 Issued a cash sales slip to N Mishaal for goods sold for cash, R450. 15 N Mishaal paid R1 000 towards his account. A discount of R25 was allowed, issued receipt no R15. 19 Sold goods valued at R900 to N Mishaal. A cash sales slip for R350 was issued. Invoice no. C53 was issued for the rest of the purchase. 21 Issued a receipt no. R31 to N Mishaal for R700 as part payment of his account. 25 Sold merchandise for R525 to N Mishaal on credit as per invoice no. C65. B 1 Balance owing to XYZ Suppliers R15 000. 2 Bought merchandise from XYZ Suppliers for R5 300 on credit as per invoice no.C32 9 Purchased stock from XYZ Suppliers on credit for R4 200, less 10% trade discount, invoice no. C42. 10 Claimed an allowance on damaged goods purchased from XYZ Suppliers. Sent a debit note no. D55 for R400. 11 Settled the amount owing to XYZ Suppliers on the 1st by means of electronic transfer (EFT) subject to a discount of 5%. 16 Bought equipment from XYZ Suppliers R10 000. Paid through EFT. 21 Bought the following on credit from XYZ Suppliers as per invoice no. C110.  Trading Stock R2 300  Stationery R360 35 Copyright reserved