Accounting Grade 12 KZN March 2016 Memo

a i rT ™ w i” ily in Ct K 7 iT a ~* = @ Basic Education ) KwaZulu-Natal Department of Basic Educatio REPUBLIC OF SOUTH AFRICA emt NTRP TRUER ETRE RRR RR ASR RR ACCOUNTING COMMON TEST MARCH 2016 PSPC TELCO VOC CCC Cee ee ee eee eke eS MARKS: 100 TIME : 1 hour NATIONAL SENIOR CERTIFICATE This question paper consists of 9 pages and a 6-page answer book. Please Turn Over

~ Downloaded from hlayiso.com _ Accounting March'2016 Common Test 2 NSC INSTRUCTIONS AND INFORMATION Read the following instructions and be sure to follow them carefully: 1. This: question paper consists of 9 pages. 2. A-special ANSWER BOOK consisting of 6 pages is provided in which to answer all the questions. 3. Answer ALL the questions. Workings must be shown in brackets in order to earn part.marks. Non-programmable calculators may be used. You may use dark pencil or black / blue pen to answer the questions. C 3 Marks will be deducted for missing details and foreign entries: on Pa Use the information in the table below as a guide when answering the question paper: Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting N 3 March 2016 Common Test 3 Question 1: 31 Marks, 19 Minutes The topic of this question is: Content: « Correct net profit Financial Statement « Retained Income e Trade and other payables Question 2: 29 Marks, 17 Minutes The topic of this question is: Content: . _y . « Ratio’s = Calculation of ratio’s and Cash Flow Statement » Cash Flow Statements Question 3: 13 Marks, 8 Minutes The topic of this question is: Content: Analysis and interpretation e interpretation Question 4: 7 Marks, 4 Minutes The topic of this question is: Content: Auditing * audit report Question 5; 20 Marks, 12 Minutes (_ }] The topic of this question is: Content: Financial Statement e Balance Sheet Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting 4 March 2016 Common Test NSC QUESTION 1 (31 Marks; 19 Minutes) FINANCIAL STATEMENT You are provided with the information related to Sondoda LTD on 29 February 2016. REQUIRED: 1.1 Calculate the correct net profit after tax for the year ended 29 February 2016. (13) Indicate a + for increase and a — for decrease. (11) 1.2 Prepare the Retained Income Note on 29 February 2016. 1.3. Prepare the Note for Trade and other payables. (7) INFORMATION: A. Net profit before tax of R 1 900 000 was determined before taking into account the following information: ( 3 1. Telephone account of R4 000 was still outstanding. 2. Anannual insurance premium of R12 000 was paid for the period 1 November 2015 to 31 October 2016. 3. P. Pillay, a debtor, who owed R18 000, was declared insolvent. The company received 60 cents in the rand from his insolvent estate and the balance was written off. No entries were made of these transactions. 4. There were two directors at the start of the accounting period. Directors’ fees have | been paid for the first half of the accounting period amounted to R180 000. On the 1 September 2015 directors fees increased by 15%. On 1 January 2016 a third director was appointed. All three directors earn the same monthly fee. Provide for the outstanding fees owed to the directors. 5. The tenant has paid R93 800 for 13 months, NOTE: The rent was increased by | 10% on 1 December 2015 and that the premises were rented for the whole year. ( i 6. Provision for bad debts must decreased by R 2 000. Income tax amounts to R 461 888 for the year. No provisional tax was paid during the year. B. Dividends and shares: 1. The ordinary share capital of R 9 000 000, on 1 March 2015 consisted of 1 800 000 ordinary shares. 2, 300 000 shares were issued on 1 September 2015 at R5,70 per share. 3. On 29 February 2016 the directors repurchased 70 000 shares from a certain shareholder at a price of R7,50 each. This shareholder is entitled to all dividends declared for the current financial year. 4. An interim dividend of R 270 000 was paid on 31 August 2015. A final dividend of 25 cents per share was declared on 29 February 2016. Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting 5 NSC QUESTION 2 CASH FLOW STATEMENT March 2016 Common Test (29 Marks; 17 Minutes) You are provided with the information related to Emalahleni LTD on 29 February 2016. REQUIRED: 2.1 Calculate the following: 2.1.1. Earnings per share 2.1.2 Return on total capital employed 2.2 Calculate the following for the Cash Flow Statement: 2.2.1 Tax paid 2.2.2 Dividends paid 2.2.3. Purchases of non-current assets 2.2.4 Proceeds for shares issued 2.2.5 Repurchase of shares INFORMATION: 1. Extract from the Income Statement: Depreciation 28 Feb 2016 144 000 Interest on loan (capitalised) 86 000 Net profit before tax 750 000 Income tax for the year (28%) 210 000 Net profit after tax 540 000 2. The following figures were extracted from the financial records on 29 February 2016: Copyright Reserved Ordinary share capital 1 926 000 1 440 000 Retained income 479 000 317 000 Non-current liabilities 1 062 000 4 200 000 Fixed/Tangible assets 2 795 000 2 185 000 Inventories (all trading stock) 920 000 780 000 Debtors control 345 000 429 000 Cash and cash equivalents 5 000 19 000 Creditors control 288 000 378 000 | Shareholders for dividends 252 000 81 000 SARS (income tax) Dr 2000] Cr 24000 Bank overdraft 85 000 Please Turn Over

~ Downloaded from hlayiso.com | Accounting 6 March 2016 Common Test NSC 3. Share capital: The authorised share capital comprises of 3 000 000 ordinary shares. On 1 March 2015 there were 360 000 ordinary shares in issue. On 5 March 2015 the directors repurchased. 36 000 ordinary shares from a dissatisfied shareholder at R1.60 above the average price. This has b On 29 February 2016 the company issued 150 000 new shares at an This has been recorded. 4. Dividends for the year : Interim dividends R126 000 Final dividends R252 000 5. Anold asset was sold at a carrying value for R 270 000. Copyright Reserved een recorded. issue price. Please Turn Over

Downloaded from hlayiso.com Accounting 7 March 2016 Common Test NSC QUESTION 3 (13 Marks; 8 Minutes) You are provided with the information related to Inkunzi LTD on 29 February 2016. REQUIRED: 3.1 The directors are generally happy with the improvement in the liquidity from 2015 to 2016. Quote THREE relevant financial indicators for both years (include actual (3) ratios or figures) to your support opinion. 3.2. The board of directors foresee possible cash flow problems in the next financial year and are considering increasing the long term loan. Do you agree with this (4) decision? Explain by quoting financial indicators, with figures, in your answer. 3.3. Amember of the board of directors feels that the shareholders should be happy with the percentage return and the market price of their shares. Quote and (6) explain TWO financial indicators, with figures, to support or dismiss this feeling. INFORMATION: 2016 2015 Current ratio 1,8:1 0,61 Stock turnover rate 7 times 10 times Acid test ratio 11:1 02:1 Period of stock on hand 60 days 40 days Debtors collection period 27 days 32 days Debt-equity ratio 0,23 :1 0,15 :1 % return on average shareholders’ equity 15% 10.5% % return on total average capital employed 17.77% 14% Dividends per share 34 cents 20 cents Earnings per share 133 cents 120 cents Net asset value per share 1 100 cents 1 133 cents Market price on JSE 1 050 cents 980 cents Interest on alternative investment 8.5% 7.5% Interest rate on loan 10% 11% Copyright Reserved Please Turn Over

Downloaded from hlayiso.com _ Accounting nec March 2016 Common Test QUESTION 4 (7 Marks; 4 Minutes) You are provided with information related to Mfanelo LTD on 29 February 2016. REQUIRED: Choose the audit opinion from COLUMN B that best describes the audit report in COLUMN A. Write the letter (A — C) next to the question number (4.1.1 — 4.1.3) in the ANSWER BOOK. (3) COLUMN A (report) COLUMN B (opinion) 4.1.1 | Qualified In our opinion, the annual financial statements audit report present fairly, in all material respects, the financial position of Mfanelo Ltd as at 29 February 2016. Unqualified We have not been able to obtain sufficient audit evidence ¢ ’ audit report to provide for an audit opinion. Accordingly, we do not express an opinion on the financial statements of Mfanelo Ltd for the year ended 29 February 2016. Disclaimer C In our opinion, except for the effect of the unauthorised report interest-free loan to the Chief Executive Officer, the annual financial statements present fairly, in all material respects, the financial position of Mfanelo Ltd as at 29 February 2016. REQUIRED: 4.2.1 Provide a reason why the Companies Act makes it a requirement for public companies to be audited. (2) 4.2.2 At the AGM, one of the shareholders said that he was not happy with the words \ “fairly present "in the audit report. He wants the auditors to state that financial ( statements are “correct in all respects”. What explanation should be given to this shareholder? State ONE point. (2) Audit report ~ To the shareholders: In our opinion, the financial statements fairly present, in all material respects, the financial position of the company and the group at 29 February 2016 and the results of their operations and cash flows for the year ended, in accordance with International Financial Reporting Standards and in the manner required by the Companies Act in South Africa. DST and Associates Chartered Accountants (SA) Registered Accountants and Auditors Pretoria. 10 August 2014 Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting 9 March 2016 Common Test NSC QUESTION 5 (20 Marks; 12 Minutes) You are provided with information related to Ulundi LTD on 29 February 2016. REQUIRED: Prepare the Balance Sheet on 29 February 2016. (20) INFORMATION: 1. List of balances Ordinary share capital 3.000 000 Trade and other payables 1 620 000 _ Cash and cash equivalent 375 000 : Fixed deposit 750 000 2. The following financial indicators were calculated in 29 February 2016. Current ratio 1,25:1 Acid test ratio 0,6 :1 Net asset value per share 500 cents Debt/equity ratio 0.25 :1 3, The number of shares on 29 February 2016 amounted to 648 000. TOTAL MARKS: 100 Copyright Reserved

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