Accounting Grade 11 March Test 2016 Paper & Memo

oo, Downloaded -from-hliayvi Accounting Page 1 of 5 First Control Test: 2016 education Department: Education REPUBLIC OF SOUTH AFRICA PORN MARU R RMR A NNER Oy Ss * A GREENBURY SECONDARY SCHOOL : : ACCOUNTING: GRADE 11 : : FIRST CONTROL TEST: 2016 : . : (3 eu gueuennaensuannuuntunuauatanunnvsenunenenanansuanunannea®? EXAMINER : C. MAHARAJ DURATION : 1 HOUR “ MODERATOR : A.RAJOO MARKS: 100 INSTRUCTIONS TO LEARNERS: 1. This paper consists of 5 pages. 2. Answer ALL questions on the special answer booklet provided. 3. Show all workings so that part marks can be allocated. i . da. You must attempt to comply with the suggested time allocations QUESTION | TOPIC MARKS SUGGESTED TIME 1 Bank Reconciliation 50 _ 30 minutes 2 Creditors Reconciliation 15 9 minutes 3 Tangible Assets 35 21 minutes Total 100 60 minutes Greenbury Secondary School Grade 11 Please Turnover

Downloaded from hlayiso.com oF Accounting Page 2 of 5 First Control Test: 2016 QUESTION ONE: BANK RECONCILIATION [50 marks ; 30 minutes] You are provided with information relating to Back Street Traders. REQUIRED: 1.4.1 Explain why it is important for a business to prepare a Bank Reconciliation Statement (2) each month. 4.1.2. Calculate the correct totals for the Cash Receipts Journal and Cash Payments Journal (12) for May 2016. 4.1.3. Prepare the Bank Account in the General Ledger on 31 May 2016. (6) 1.4.4. Prepare the Bank Reconciliation Statement on 31 May 2016 (10) 1.1.5. Refer to information 3 below. The fixed deposit of R84 000 matures next month. What advice would you offer the ( ‘5 owner in this regard? Explain two points, quoting appropriate figures to support your (4) answer. : 1.1.6, Refer to information 4 below. * Explain why the internal auditor should be concerned about the outstanding (3) deposit of R20 295. e Explain how cheque no. 674 should be dealt with when the financial statements are prepared on 31 May 2016. Give a reason for your answer. (3) INFORMATION: 1. At the end of the previous month, 30 April 2016, the following items were reflected on the Bank Reconciliation Statement Favourable balance as per bank statement 12545 ( } Outstanding deposit 12 000. Outstanding cheques: No. 261 (dated 3 November2015) 5 000 No.519 (dated 14 April 2016) 8920 No.543 (dated 12 May 2016) 4300 Favourable balance as per bank account 6 325 2. On 31 May 20146, the provisional totals in the journals were: e CRI R70600 ® CPJ R105 320 Greenbury Secondary School Grade 11 Please Turnover

3. 4. Greenbury Secondary School Grade 11 Please Turnover Accounting Downloaded from hlayiso.com Page 3 of 5 First Control Test: 2016 The following items were reflected n the Bank Statement but not in the journals for May 2016. Cheque no.543 for 4 300 issued for stationery. A deposit of R12 000. Bank charges R 520 Interest on fixed deposit for May , R 700 Interest on overdraft for May, R 810 Stop order in favour of Old Mutual, R660 for insurance. Dishonoured cheque on 30 May 2016, originally presented by a debtor, M.Moodley, R6 200. The following differences were noted: Cheque no. 565 for repairs was shown in the CPJ as R 1570, but on the May Bank Statement as R1 750. The Bank Statement is correct. A deposit of R20 295 dated 20 May 2016, appeared in the May CRJ but not on the May Bank Statement. The following cheques appeared in the May CPJ, but not on the Bank Statement: > No. 654 (dated 23 May 2016), R 2800. > No.674 (dated 29 August 2016), R 2 520. Cheque no.261 for R5 000 was to Phoenix Youth Club as a donation. The club is no longer in existence. The Bank statement had a credit balance of R34 720, on 31 May 2016 Explain the procedure for a post dated cheque received from a debtor. , (3) An error made by the bank must be corrected on the Bank Reconciliation Statement. (1) State whether statement is True or False Cheque fraud is a problem for businesses. List three internal controls that the businesses can implement to make paying by (6) cheque safer.

Downloaded from hlayiso.com ' Accounting Page 4 of 5 First Control Test: 2016 QUESTION TWO: CREDITORS RECONCILIATION [15 marks ; 9 minutes] The information below shows the accounting records of Musica Traders and their creditor CD Suppliers for March 2016 REQUIRED: 2.1, Prepare the correct account of CD Suppliers in the Creditors Ledger of Musica Traders. (10) 2.2. Prepare the Creditors Reconciliation Statement on 31 March 2016. (5) INFORMATION: Creditors Ledger of Musica Traders CD Suppliers Date Details Fol Debit Credit Balance vend 1 | Balance b/d 12 300 7 | Invoice no, 1024 Cj 1220 13 520 10 | Debit note 39 CA) 800 12 720 15 | Cheque no. 965 cp) | 11685 1035 © . Discount received CPJ 615 420 20 | Invoice no.1073 cs 6 325 6 745 23 | Debit note 97 CAI 325 6420 30 | Invoice no.1032 Cc) 2 900 9 320 Date Details Debit Credit Balance 2016 1 | Balance 12 300 Mar 7 Invoice no. 1024 2120 14 420 10 | Credit note 26 (ref debit note39) 800 15 220 C3 15 | Receipt no. 457 (ref cheque no.965) 11 685 3535 20 | Invoice no.1073 6 325 9 860 28 | Interest on overdue account 65 9925 On comparing the statement and ledger following differences were noted : 1. Invoice no.1024 was recorded incorrectly by Musica Traders. Correct the error. 2. CD Suppliers recorded credit note 26 on the wrong side of the account. 3. CD Suppliers charged Musica Traders interest on their overdue account, R 65. 4. CD Suppliers will only allow a discount of R300 and not R615. 5. Debit note no.97 sent to CD Suppliers was not accepted because the creditor felt that this was due to the business negligence that the goods were damaged. 6. Invoice no. 1032 was received after the statement date. Greenbury Secondary Schoo! Grade 11 Please Turnover

Downloaded from hlayiso.com Accounting QUESTION THREE: TANGIBLE ASSETS You are provided with the following information which was extracted from the records of Samba Traders, their accounting period ends on 28 February 2016. Page 5 of 5 First Cont rol Test: 2016. REQUIRED: 3.1. Prepare the following accounts in the General Ledger of Samba Traders. ¢ Equipment (7) ® Asset Disposal (10) Note: Accounts to be properly balanced / closed off. 3.2. Provide the missing amounts for A/B/C/D/E/F (12) 3.3. List three control measures to be implemented by the business to properly manage (6) their tangible assets. () - INFORMATION: Tangible asset Land and Vehicles Equipment buildings Cost 1.050 000 880 000 470 000 Accumulated depreciation - (760 000) (123 400) Carrying value(beg. of year) 1.050 000 B 346 600 Movements: Additions at cost A (i) 86 000 Disposals at carrying value 0 0 (28 431) Depreciation - € (50 000) Carrying value(end of year) 1300 000 F 354 169 Cost 1.300 000 D 516 000 Accumulated depreciation - E (161 831) Additional information: 1. The following relates to Equipment: * Equipment was sold on credit for R 25 000. © Depreciation is calculated at 10% p.a. on diminishing balance method. ¢ Allold equipment was purchased on 1 March 2012. ® Equipment was purchased for cash. 2. Vehicles are depreciated at 15 % p.a, on cost 3. Land and buildings were purchased during the year. So oo __GRRENBURY SECONDARY SCHOOL, egies coumence Greenbury Secondary School Grade 11 & Meh. . o h.

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Downloaded from hlayiso.com First Control Test: 2016 Accounting Page 1 of 6 education Department: 100 Education REPUBLIC OF SOUTH AFRICA Om me et ae me em -~, r GREENBURY SECONDARY SCHOOL ‘ . I I FIRST CONTROL TEST: 2016 ; I . ; ACCOUNTING I i ANSWER BOOK y . 1 GRADE 11 . Ne mtu ee _” NAME OF LEARNER: GRADE: 11 QUESTION MAX. FINAL MARKS 1 50 2 15 3 35 [100 Greenbury Secondary School This answer book consists of 6 pages. Grade 11 Please Turnover

Downloaded from hlayiso.com Accounting QUESTION ONE: BANK RECONCILIATION Page 2 of 6 1.1.1 Explain why it is important for a business to prepare a Bank Reconciliation Statement each month. First Control Test: 2016 2 1.1.2 Cash Receipts Journal | Bank Cash Payments Journal | Bank Provisional total 70 600 Provisional total 105 320 ) 12 Correct total Correct total 1.1.3. Bank 6 Greenhury Secondary School Grade 11 Please Turnover

Downloaded from hlayiso.com Accounting Page 3 of 6 1.1.4. Bank Reconciliation Statement on 31 May 2016 First Control Test: 2016 Debit Credit 10 } 1.1.5. The fixed deposit of R84 000 matures next month. What advice would you offer the owner in this regard? Explain two points, quoting appropriate figures to support your answer. 1.1.6.. @ Explain why the internal auditor should be concerned about the outstanding deposit of R20 295. e Explain how cheque no. 674 should be dealt with when the financial statements are prepared on 31 May 2016. Give a reason for your answer. 1.2. Explain the procedure for a post dated cheque received from a debtor. Greenbury Secondary School Grade 11 Please Turnover

Downloaded from hlayiso.com Accounting Page 4 of 6 First Control Test: 2016 1.3, 1.4. An error made by the bank must be corrected on the Bank Reconciliation Statement. State whether statement is True or False Cheque fraud is a problem for businesses. . List three internal controls that the businesses can implement to make paying by cheque safer. Total Marks 50 Greenbury Secondary School Grade 11 Please Turnover

Accounting Downloaded from hlayiso.com Page 5 of 6 QUESTION TWO: GREDITORS RECONCILIATION First Control Test; 2016 2.1 CREDITORS LEDGER OF MUSICA TRADERS CD SUPPLIERS Date Details Fol Debit Credit Balance 7 10 {) 2.2. Creditors Reconciliation Statement on 31 March 2016. Debit Credit 5 () Greenbury Secondary School Total Marks 15 Grade 11 Please Turnover

Downloaded from hlayiso.com pes Accounting Page 6 of 6 First Contral Test: 2016 QUESTION THREE: TANGIBLE ASSETS EQUIPMENT 7 ASSET DISPOSAL 4 3.2. | WORKINGS ANSWER 10 mlm) GO) ao] @| > 3.3. _ List three control measures to be implemented by the business to properly manage their tangible assets. Greenbury Secondary School 6 Total Marks GREENBURY SECONDARY SCHOOi, 35 DEPARTMENT OF COMMERCE 4.0.2 vies C MANARA Grade 11 & AE

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