Accounting Grade 12 Paper 2 KZN Prelim 2023 Addendum

Downloaded from hlayiso.com Downloaded from Stanmorephysics.com Name: Grade: QUESTION | srarKs | MARKS | SCHOOL | “cLUSTER’ | "PROVINCE 1 40 2 30 3 45 4 35 TOTAL 150 This answer book consists of 9 pages.

Downloaded from hlayiso.com Downloaded from Stanmorephysics.com QUESTION 1 1.1 1.2.1 Choose an example from COLUMN B that matches a cost category in COLUMN A. Write only thejletter (A-D) next to the question numbers (1.1.1 to 1.1.3) in the ANSWER BOOK, e.g 1.1.4 E. 1.1.1 1.1.2 1.1.3 PRODUCTION COST STATEMENT FOR THE YEAR ENDED 30 JUNE 2023 Prime cost Total cost of production Work in process — beginning of the year 250 000 Total cost of production of finished products 10

1.2.2 Downloaded from hlayiso.com Downloaded from Stanmorephysics.com ABRIDGED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2023 Sales Cost of sales: Gross Profit Net profit for the year 11

1.3.1 1.3.2 1.3.3 1.3.4 1.3.5 Downloaded from hlayiso.com Downloaded from Stanmorephysics.com Explain why it is important to calculate the expected break-even point for a business at the beginning of a financial year. Mandy feels-that she can improve the sales of calculators. Provide TWO suggestions on how this-can be achieved. Mandy was concerned about the increase in the fixed cost per unit of calculators. What would you say to her? Provide ONE point and quote figures to support your answer. Except for a general increase in wages due to inflation, give TWO other reasons for the increase in direct labour costs per unit. In each case, provide a practical solution to address this. Possible reason Solution Mandy wants to increase production by 700 units during the next-fihancial year while maintaining costs. Calculate the additional profit that she will achieve. WORKINGS ANSWER

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Downloaded from hlayiso.com Downloaded from Stanmorephysics.com QUESTION 2 2.1.1 | Calculate the selling price per unit for running shoes. WORKINGS ANSWER 2.1.2 | Calculate the value of closing stock on 30 April 2023 using weighted average method. WORKINGS ANSWER 2.1.3. | It was discovered that a number of running shoes were shoplifted. Calculate the number of the missing shoes. WORKINGS ANSWER 2.1.4 | Provide TWO strategies that Ganesha should implement to prevent-the loss of stock in future.

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2.2.3 2.2.1 2.2.2 Downloaded from hlayiso.com by quoting figures and trends. Provide a solution to each problem. SeHREH PE Hert antnee with te HERD ntataG UF Socce? Boots. Identity TWO problems PROBLEM SOLUTION / ADVICE Problem 1 Problem 2 Calculate the stock turnover rate of soccer boots for 2023. (Use the average stock). WORKINGS ANSWER NOTE: It was 5 times in 2022. Explain whether Ganesha should be concerned about the stock turnover rate.

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Downloaded from hlayiso.com Downloaded from Stanmorephysics.com QUESTION 3 DEBTORS' COLLECTION SCHEDULE FOR THE TWO MONTHS ENDING 31 OCTOBER 2023 Month Credit Sales | September October Bad debts July 10 200 August 222 000 88 800 11 100 September 56 430 October 210 000 10 Calculate the figures indicated by (i)-(v) on the Cash Budget. WORKINGS ANSWER (i) (ii) (iii) (iv) (v) 13

Downloaded from Stanmorephysics.com Downloaded from hlayiso.com Calculate the average Debtors' Collection period in days. WORKINGS ANSWER

Downloaded from hlayiso.com Downloaded from Stanmorephysics.com 3.1.4 | The owner wants to purchase the business premises rather than option. renting--Provide ONE advantage and ONE disadvantage of this ONE advantage ONE disadvantage 3.1.5 | Comment and provide one point of advice on each expense item. Quote figures and trends. Comment Advice Water and Electricity Advertising 3.2 | Identify ONE problem at each branch. Quote figures to support the problem identified and give Msizi advice on how to solve the problem in each case. PROBLEM AND FIGURE SOLUTION Branch 1 Phumzile Branch 2 Peggy

Branch 3 Parvati TOTAL MARKS 45 QUESTION 4 41 4.1.1 4.1.2 Downloaded from hlayiso.com Downloaded from Stanmorephysics.com BANK RECONCILIATION CASH RECEIPTS JOURNAL R CASH PAYMENT JOURNAL R 510 600 487 300 BANK RECONCILIATION STATEMENT ON 31 JULY 2023 DEBIT CREDIT Balance per Bank Statement

Downloaded from hlayiso.com Downloaded from Stanmorephysics.com Balance as per Bank Account ALTERNATIVE FOR ONE COLUMN 4.1.2 4.2 BANK RECONCILIATION STATEMENT ON 31 JULY 2023 Balance per Bank Statement Balance as per Bank Account Explain whether or not the business made the right decision in alerting the bank about the deposit of R9 800 on 25 July 2023. CREDITORS RECONCILIATION

Downloaded from hlayiso.com Downloaded from Stanmorephysics.com 4.2.1 4.2.2 4.2.3 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. Use the table provided to indicate the changes that must be made in the Creditors’ Control account and Creditors’ List in the books of Titanic Traders to take into account the errors and omissions noted. Indicate the increase or decrease with a (+) or (-) with each amount. Show brackets as alternative method. Creditors’ Control Creditors’ List R R Provisional balance/total 74720 32 600 A B c D E State THREE Internal control measures that the business can use to prevent similar incidents from happening in future.

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