Accounting Grade 12 Paper 2 MP Prelim 2022 Question Paper

Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE GRADE 12 ACCOUNTING P2 SEPTEMBER 2022 MARKS: 150 TIME: 2 Hours This question paper consists of 11 pages, 1 formula sheet and 10-page answer book. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 2 MDE/September 2022 NSC KEEP THIS PAGE BLANK s.co m si c st an mor ep hy om fr oa de d do wn l Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 3 MDE/September 2022 NSC INSTRUCTIONS AND INFORMATION Read the following instructions carefully and follow them precisely. 1. Answer ALL the questions. 2. A special ANSWER BOOK is provided in which to anwer ALL the questions. 3. Show ALL workings to achieve part-marks. 4. You may use a non-programmablecalculator. 5. s.co You may use a dark pencil or blue/black ink to anwer the questions. 6. Where applicable, show ALL calculations to ONE decimal point. m si c 7. st If you choose to do so, you may use the Financial Indicator Formula Sheet an attached at the end of this question paper. The use of this formula sheet is NOT compulsory. mor 8. Write neatly and legibly. ep 9. hy Use the information in the table below as a guide when answering the question paper. Try NOT to deviate from it. om QUESTION fr TOPIC MARKS MINUTES 1 VAT and Bank Reconciliation 35 25 2 oa Inventory Valuation 30 25 3 de Manufacturing 45 35 4 d Budgeting 40 35 TOTALdo 150 120 wn l Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 4 MDE/September 2022 NSC QUESTION 1: VAT AND RECONCILIATION (35 marks; 25 minutes) 1.1 VAT The following entries relates to Aquella Stores for the VAT period ended 31 July 2022. VAT at 15% applies to all goods. REQUIRED: 1.1.1 Explain why the government in SA made certain goods to be zero-rated. (2) 1.1.2 Taking into account the error and omission, calculate the VAT amount that is either payable to SARS on 31 July 2022. (8) 1.1.3 You are in charge of internal auditing. Peter, the owner of the business, purchased a new laptop in August 2022 for R14 720 as a birthday present for his daughter using a business EFT. The laptop will be used for personal purposes. The laptop, according to Peter, must be recorded as a VAT item in the business’s books. Explain what you would say to Peter. Provide TWO points. (4) INFORMATION: A. Amount owed to SARS on 1 July 2022, R89 600. B. Amounts from the Journals on 31 July 2022: EXCLUDING INCLUDING VAT VAT VAT AMOUNT Cash sales 560 000 644 000 84 000 Credit purchases of stock 194 000 223 100 29 100 Reversal of discount to a 3 450 ? debtor C. The following error was noted: VAT on sales was recorded incorrectly. Certain goods with a selling price of R55 000 (excluding VAT) should have been recorded as zero-rated items. 1.2 BANK RECONCILIATION AND INTERNAL CONTROL The following information relates to Marula Traders for July 2022. The Bank statement shows transactions up to the 25th of July 2022 and the business prepares a bank reconciliation after receiving the statement. REQUIRED: 1.2.1 Show the entries that must be recorded in the Cash Journals by completing the table provided in the ANSWER BOOK. (7) 1.2.2 Calculate the Bank Account balance on 31 July 2022. (4) 1.2.3 Prepare the Bank Reconciliation Statement on 31 July 2022. (8) 1.2.4 Refer to Information C. Explain whether or not the business made the right decision in alerting the bank about the deposit of R9 800, on 25 July 2022. (2) Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 5 MDE/September 2022 NSC INFORMATION: A. Bank Reconciliation Statement on 30 June 2022: Favourable balance as per Bank Statement R 18 400 Outstanding deposit: Dated 28 June 2022 12 730 Outstanding EFT’s No. 632 13 200 No. 633 2 630 Favourable balance as per Bank Account in the Ledger 15 300 B. On 31 July 2022, the provisional totals in the Cash Journals were:  Cash Receipts Journal, R510 600  Cash Payments Journal, R486 300 C. Information on the July 2022 Bank Statement which did not appear in the July 2022 Cash Journals: DATE DETAILS DEBIT CREDIT June 29 Deposit R12 730 29 EFT - 632 R13 200 30 Deposit R6 250 July 01 EFT - 633 R6 230 05 Petty Insurers R1 850 05 Petty Insurers R1 850 15 Debit card withdrawal R1 000 20 Transaction fees R1 425 24 Interest on current account R290 25 Voda Administrators R9 800  The deposit on the 30th was for a rent income from a tenant, S.Ntuli.  EFT No. 633 on the 1st appeared correctly on the Bank Statement.  A debit order on the 5th, R1 850 for the monthly insurance appeared twice on the Bank Statement, but no entry has been made in the Journals. The bank will rectify this on the Bank Statement next month.  Debit card withdrawal on the 15th was a windscreen repair to the business vehicle. The driver did not submit the slip to bookkeeper.  The deposit on the 25th was incorrectly deposited to Marula Traders. The bank was notified. D. The following entries were in the Cash Journals for July 2022 only:  A deposit of R10 000 (dated 29 July 2022)  EFT No. 655, R5 650  EFT No. 656, R1 445 E. Bank Statement balance 31 July 2022…...? 35 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 6 MDE/September 2022 NSC QUESTION 2: INVENTORY VALUATION (30 marks; 25 minutes) 2.1 KRUSH ELECTRONICS You are provided with information relating to Krush Electronics. The business sells one type of generator. Their financial year ends on 30 June 2022. They use the FIFO method for stock valuation and the periodic inventory system. The business is owned by Mbali Fakude. REQUIRED: 2.1.1 Calculate the value of closing stock according to the FIFO method on 30 June 2022. (5) 2.1.2 Mbali, the owner, is concerned about the management of stock regarding stock levels and stock control.  Calculate the average stock-holding period on 30 June 2022. (4)  Provide a calculation to support her concern over the security of the stock. (5) 2.1.3 Calculate the value of closing stock according to weighted-average method on 30 June 2022. (7) INFORMATION: A. Stock records of generators COST TOTAL NUMBER OF PRICE PER GENERATORS VALUE GENERATOR Opening stock (1 July 2021) 85 R480 365 Closing stock (30 June 2022) 197 ? ? B. Purchases and returns COST NUMBER OF TOTAL PRICE PER GENERATORS VALUE GENERATOR 640 R2 453 500 September 2021 245 R3 500 R857 500 February 2022 210 R3 900 R819 000 May 2022 185 R4 200 R777 000 C. Returns: Eight (8) generators from the May 2022 purchases were faulty and were returned to the suppliers. D. Sales and Cost of sales  Total sales of R3 334 625 comprised 515 generators sold at R6 475 each.  Cost of sales for the year using the FIFO method was calculated as R2 078 865. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 7 MDE/September 2022 NSC 2.2 PROBLEM-SOLVING Apart from selling generators, Krush Electronics also sells one brand of Gas stoves. They have three branches operating in different Plazas at Acornhoek, Ermelo and Tonga Plaza. These branches are managed by Sizwe, Shaakal and Venessa, respectively. Although Mbali Fakude allows the branch managers to generally make their own decisions, she has implemented division of duties, cameras and internal auditing as control measures in these branches. REQUIRED: 2.2.1 The internal auditor in Acornhoek Plaza discovered a shortage of R40 000 from cash deposited from cash sales. Mention ONE additional control measure that Mbali could consider to improve controls in the branches. (2) 2.2.2 Identify TWO problems (with figures or calculations) relating to the Ermelo Plaza branch and provide a solution in each case. (4) 2.2.3 List THREE decisions taken by Venessa, the manager of Tonga Plaza, which led to much better results than those of the other two branches. Quote figures. (3) Information per shop for June 2022: ACORNHOEK ERMELO TONGA PLAZA PLAZA PLAZA Manager Sizwe Shaakal Venessa Opening stock (units) 200 160 300 Purchases (units) 2 500 3 050 5 200 Total number of units sold (2 300) (3 000) (4 550) Credit sales (units) 800 2 400 1 980 Cash sales (units) 1 500 600 2 570 Online shopping - - 750 Closing stock (units) 400 210 950 Selling price per unit R850 R850 R850 Cash deposited from cash sales R1 235 000 R510 000 R2 465 000 Advertising R9 500 R10 000 R16 200 Rent expense R35 000 R22 000 R45 000 Days worked per week 6 5 7 Shop assistants 4 2 6 30 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 8 MDE/September 2022 NSC QUESTION 3: MANUFACTURING (45 marks; 35 minutes) 3.1 BAKERS BEE MANUFACTURERS. This information relates to the financial year ended 28 February 2022. The business manufactures cakes. REQUIRED: 3.1.1 Refer to Information B: Calculate the direct labour cost on 28 February 2022 (5) 3.1.2 Prepare the Factory Overhead Cost Note on 28 February 2022 (12) 3.1.3 Complete the Production Cost Statement on 28 February 2022 (10) INFORMATION: A. Stock balances 28 February 2022 28 February 2021 R R Indirect material 21 400 18 600 Finished goods 210 000 233 000 Work-in-progress ? 195 000 B. Direct labour Number of factory workers 3 Normal time expected per worker per year 1 920 hours Overtime hours per worker per year 95 hours Normal time rate R50 per hour Overtime is basic wage rate + 60%. ? C. Amounts extracted from the records for the year ended 28 February 2022 R Direct material cost 666 700 Rent expense 169 000 Water and electricity 172 000 Insurance (all factory) 105 900 Depreciation on factory equipment 61 200 Indirect material purchased 149 500 Sales 2 500 000 Cost of sales (mark-up on cost: 60%) ?  Water and electricity for February 2022 is still outstanding, R18 000. The factory uses 75% of the water and electricity.  Rent expense is distributed according to floor space used. The factory occupies 10 800m2 of the total floor space of 13 500m2. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 9 MDE/September 2022 NSC 3.2 ENERGIZER MANUFACTURERS. Energizer Manufacturers is a manufacturing business that produces energy bars for sports people. The financial year ends on 30 June 2022. REQUIRED: 3.2.1 Calculate the following for the year ended 30 June 2022:  Direct material cost (2)  Break-even point (4) 3.2.2 Explain why the owner should be concerned about the break-even point. Quote figures. (3) 3.2.3. The owner is concerned about the direct material cost.  Explain why the owner would NOT be satisfied with the direct material cost per unit. Quote figures. (3)  Apart from changing the supplier to get a cheaper price, provide an alternative solution to this problem. Mention ONE point. (2) 3.2.4 Bongi, the owner, wants to cut the weight of the energy bars from 75 grams to 70 grams while maintaining the R15 selling price. Give TWO reasons why this option is not a good idea. (4) INFORMATION: 2022 2021 Total Per unit Total Per unit R R R R Direct material cost ? R7,56 R1 646 400 R5,60 Total fixed costs R3 102 500 R9,36 R1 911 000 R6,50 Total variable costs R6 464 250 R19,50 R5 439 000 R17,50 Sales R9 282 000 R28,00 R7 203 000 R24,50 Number of units 331 500 units 294 000 units produced and sold Break-even point ? 273 000 45 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 10 MDE/September 2022 NSC QUESTION 4: BUDGETING (40 marks; 35 minutes) You are provided with information relating to VIVO Computers owned by Thando Shai. REQUIRED: 4.1 Thando compared the budgeted figures to the actual figures for August 2022. BUDGETED ACTUAL Sales 122 500 147 000 Advertising 12 000 16 500 Payment to creditors R64 000 0 Thando is not concerned about the overspending in advertisement. Explain why this is so. Quote figures. (3) 4.2 Complete the Creditors' Payment Schedule for November 2022. (8) 4.3 Calculate the missing figures (i) to (vii) in the Cash Budget. (21) 4.4 State ONE consequence that the business might face should they not pay the amount due to creditors in September 2022. (2) 4.5 Thando wants to replace an old equipment in December 2022 but does not have the cash available. The cost of new equipment amounts to R195 000. The new items are expected to last 5 years. Options are:  Request a friend to become an equal partner through contributing a capital of R195 000.  Lease the equipment from Rato Computers at R7 250 per month.  Acquire a new loan of R195 000 at an interest rate of 15% p.a. to be repaid over 24 months. Briefly explain ONE advantage and ONE disadvantage of EACH option. (6) INFORMATION: A. Sales, purchases of stock and cost of sales: Total sales: August R120 000 Actual September R135 000 October R150 000 Projected November R180 000  40% of sales are cash, the rest is on credit.  The mark-up is 50% on cost.  Stock is replaced on a monthly basis.  25% of purchases are cash; the rest is on credit. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 11 MDE/September 2022 NSC B. Creditors' payment: It is expected that creditors will be paid as follows:  75% are paid in the month of purchases to receive a 5% discount.  15% are paid in the month after purchases.  10% are paid in the second month after purchases. C. Delivery expenses: Thando pays Speedo Deliveries to deliver goods to customers free of charge. He budgets a fixed percentage of monthly sales for this expense. D. Salaries and wages: Employees receive an increase of 7,5% from 1 November 2022. E. Loan: Part of the loan will be repaid on 1 November 2022. Interest of 15% p.a. is paid monthly and is not capitalised. F. Extract from Cash Budget for October and November 2022: RECEIPTS OCTOBER NOVEMBER Cash sales (i) 72 000 Collections from debtors 78 300 89 550 Rent income 7 500 7 750 Additional capital to be contributed Commission income PAYMENTS Cash purchase of stock (ii) Payments to creditors 74 200 Delivery expenses of goods to customers 9 000 (iii) Salaries and wages (iv) 38 700 Stationery Telephone 1 000 1 000 Training of staff 2 500 2 500 Advertising 1 500 1 800 Repayment of loan (v) Interest on expense 2 100 1 500 Sundry expenses 3 300 3 400 Drawings G. After finalising the budget, the following was identified: OCTOBER NOVEMBER Cash surplus or deficit for the month (24 350) (vii) Cash at beginning of month 53 250 Cash at end of month (vi) (10 950) 40 TOTAL MARKS :150 Copyright reserved Please turn over

Downloaded from hlayiso.com GRADE 12 ACCOUNTING FINANCIAL INDICATOR FORMULA SHEET Gross profit x 100 Gross profit x 100 Sales 1 Cost of sales 1 Net profit before tax x 100 Net profit after tax x 100 Sales 1 Sales 1 Operating expenses x 100 Operating profit x 100 Sales 1 Sales 1 Total assets : Total liabilities Current assets : Current liabilities (Current assets – Inventories) : Current Non-current liabilities : Shareholders' equity liabilities (Trade & other receivables + Cash & cash equivalents) : Current liabilities Average trading stock x 365 Cost of sales . Cost of sales 1 Average trading stock Average debtors x 365 Average creditors x 365 Credit sales 1 Cost of sales 1 Net income after tax x 100 Net income after tax x 100 Number of issued shares 1 Average shareholders' equity 1 (*See note below) Net income before tax + Interest on loans x 100 Average shareholders' equity + Average non-current liabilities 1 Shareholders' equity x 100 Dividends for the year x 100 Number of issued shares 1 Number of issued shares 1 Interim dividends x 100 Final dividends x 100 Number of issued shares 1 Number of issued shares 1 Dividends per share x 100 Dividends for the year x 100 Earnings per share 1 Net income after tax 1 Total fixed costs Selling price per unit – Variable costs per unit NOTE: * In this case, if there is a change in the number of issued shares during a financial year, the weighted-average number of shares is used in practice. Copyright reserved