Accounting Grade 10 September Test 2018 Paper & Memo

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Downloaded from hlayiso.com Accounting (Grade 10) INSTRUCTIONS AND INFORMATION eptember 2018 Common Test 4. You are provided with a question paper with ANNEXURE A and an ANSWER BOOK. 2: This question paper comprises THREE compulsory questions. Answer ALL the questions. 3. Use the format provided in the answer book in order to reflect your answers 4. Where applicable-workings must be shown in order to achieve part-marks. 5: Non-programmable calculators may be used. 8. You may use dark pencil or blue/black ink to answer the questions. 7. Use the information in the table, below, as a guide when answering the question paper. Try NOT to deviate from it. QUESTION 1 (56 Marks; 34 Minutes) Topic of the question This question integrates: Sole Trader Financial Statements Financial accounting o Balance Sheet Notes to Balance Sheet ° _Tangible/ Fixed Assets QUESTION 2 (20 Marks; 12 Minutes) Topic of the question This question integrates: Analysis and Interpretation of Financial Statements Financial accounting e Ratio Calculations QUESTION 3 (24 Marks; 14 Minutes) Topic of the question This question integrates: Analysis and Interpretation of Financial Statements Financial accounting « Comments Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting (Grade 10) September 2018 Common Test a QUESTION 1 (56 Marks; 34 Minutes) SOLE TRADER: BALANCE SHEET AND NOTES You are provided with information relating to Manchester Traders on 28 February 2018. The business is owned by Zanele Khanye REQUIRED: 1.1. Prepare the Balance Sheet as 28 February 2018. (Show workings in brackets to earn part marks) (40) 1.2. Prepare Note for Tangible / Fixed Assets (16) INFORMATION: Extract of PRE-ADJUSTMENT TRIAL BALANCE OF MANCHESTER TRADERS ON 28 FEBRUARY 2018. BALANCE SHEET ACCOUNTS SECTION AMOUNT (R) Capital 1 420 000 Drawings 1101 300 Land and Buildings 1.250 000 Equipment 550 000 Vehicles 1.650 000 Accumulated Depreciation on Equipment — 28/02/2018 200 000 Accumulated Depreciation on Vehicles — 28/02/2018 130 000 Loan : Mpindiso Bank (17%) 400 000 Fixed Deposit: Mlomo Bank (8%) 250 000 Trading stock 180 000 Debtors control 142 500 Creditors control 111 800 Pension Fund 17 400 SARS: (PAYE) 31.000 Bank Overdraft (Cr)1 044 600 Cash float 2.000 Petty cash 1 600 Consumable Stores on Hand 8 600 Accrued Income 20 000 Accrued Expense 4 200 Prepaid Expense 9 000 Deferred Income 6 000 Net Profit for the year 1 800 000 Copyright Reserved Please Turn Over

Downloaded from hla iso.com Accounting (Grade 10) tember 2018 Common Test Nee ADJUSTMENTS AND ADDITIONAL INFORMATION ON 28 FEBRUARY 2018: 1. The owner Zanele Khanye took stock valued at R 8 000, after the stock taking for personal use. No entry was made for this transaction. 2. An amount of R 50 000 is payable on the loan from Mpindiso Bank on 30 June 2018. 3. The fixed deposit at Mlomo Bank includes an amount of R 100 000 which will mature on 31 August 2018. 4. The following details concerns fixed assets. The relevant entries concerning the fixed assets have been correctly recorded. » Extensions to the buildings, R 500000, were completed during the financial year. >» Anew computer, R 15 000, was purchased on 1 December 2017. >» Anew delivery vehicle, R 184 000, was bought on credit on 1 January 2018. » Depreciation for the year was calculated as follows: Equipment, R 35 000 Vehicles, R 48 000 Copyright Reserved Please Turn Over

Downloaded from hlayiso.com September 2018 Common Test Accounting (Grade 10) Nee QUESTION 2 RATIO CALCULATIONS (20 Marks; 12 Minutes) The following information was taken from the records of Mbhele Traders on 30 September 2018. The business is owned by Mandla Khumalo. REQUIRED: 2.1. Calculate the following ratios/indicators for 2018. (ROUND OFF TO ONE DECIMAL) 2.1.4. Current ratio (3) 2.1.2. Acid test ratio (4) 2.1.3, Solvency Ratio (5) 2.1.4. Operating Expenses on sales (3) 2.1.5. Return on Average owner's equity (5) INFORMATION: A. Extract from the Income statement for the year ended 30 September 2018. Sales / Turn over 1.760 000 Cost of Sales 930 000 Operating expenses 565 000 Operating profit 365 000 Interest on loan (12%) 75 000 Net profit for the year 2900 B. Extract from the Balance sheet on 30 September 2018. 2018 2017 Non-current assets 1.929 500 1.172 000 Current Assets 440 000 420 000 Inventory 171 800 351 200 Trade and other receivables 140 000 60 000 Cash and cash equivalents 128 200 8 800 Owners Equity 2 037 500 1 150 000 Non-current liabilities 172 000 232 000 Current Liabilities 160 000 210 000 Trade and other payables 160 000 167 000 Bank overdraft NIL 43 000 Copyright Reserved Please Turn Over

Downloaded from hla iso.com Accounting (Grade 10) Sefitember 2018 Common Test aga QUESTION 3 (24 Marks; 14 Minutes) INTERPRETATION OF FINANCIAL INFORMATION You are provided with financial indicators of Mashonisa Traders on 31 August 2018. The business has a target mark up on cost of 75% Use the information to answer the questions that follow: N.B: In answering the questions quote relevant indicators, figures and trends. 1. INFORMATION 2018 2017 Gross profit on cost 60% 63% Gross profit on sales 46% 50% Operating expenses on sales 21% 18% Operating profit on sales 16,1% 19,2% Return on owner's equity 27,9% 23% Current ratio 215) 1,9:1 Acid test ratio 14 0,9:1 Solvency ratio B Ree 2611 Interest on fixed deposits 12% 12% REQUIRED: 3.1. The owner of Mashonisa Traders is happy about the liquidity position of the business. Quote TWO relevant financial indicators with figures to support her opinion. (6) 3.2. The manager is concerned about the mark up % achieved by the business. Quote ONE relevant indicator to support her concern. And explain what caused the business not to achieve its targeted mark up. Mention TWO points. (7) 3.3 The owner of the business is not satisfied by the operating efficiency of the business. Quote TWO relevant financial indicators with figures to support his opinion (6) 3.4. The manager feels that the owner must be satisfied with the returns he is earning in this business. Do you agree with this opinion? o Explain by quoting ONE financial indicator to support your answer. Also quote figures to support your answer. (5) TOTAL MARKS: 100 Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting (Grade 10) September 2018 Common Test wera ANNEXURE A FORMULA SHEET FOR GRADE 10 Gross profit x100 Gross profit x 100 Net profitx 100 Sales 1 Cost of sales 1 Sales 1 Operating expensesx100 Operating profit x 100 Sales 4 Sales 1 Current assets : Current liabilities Current Assets - Inventory : Current liabilities Net profit. x 100 Total assets : Total liabilities Average equity 1 Copyright Reserved

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education Department: Education PROVINCE OF KWAZULU-NATAL AA AAA BREESE AALS ESAS ACCOUNTING ANSWER BOOK SEPTEMBER 2018 NATIONAL SENIOR CERTIFICATE GRADE 10 Name: Grade: . + Learners | Moderators Question Topic Mark Mark 1 Balance Sheet and Notes 2 Ratio Calculations 3 Interpretation of Financial Statements TOTAL This answer book consists of 7 pages. fovr Reserved Please Turn Over

Downloaded from hlayiso.com Accounting (Grade 10) 2 September 2018 Common Test NSC QUESTION 1 1.1. MANCHESTER TRADERS BALANCE SHEET AS AT 28 FEBRUARY 2018 ASSETS Note Non — Current Assets Fixed/Tangible assets Financial assets: Current Assets TOTAL ASSETS EQUITY AND LIABILITIES Owners’ Equity Capital Non - Current Liabilities Current Liabilities TOTAL EQUITY AND LIABILITIES Copyright Reserved Please Turn Over

Downloaded from hlayiso.com September 2018 Common Test Accounting (Grade 10) 3 NSC 1.2. FIXED/TANGIBLE ASSETS naling Equipment Vehicles Carrying value at beginning of year 750 000 Cost 750 000 1 466 000 Accumulated depreciation 0 Movements Additions at cost Disposals at carrying value 0 0 0 Depreciation Carrying value at end of year Cost Accumulated depreciation ( 200 000) ( 130 000) 56 Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting (Grade 10) 4 September 2018 Common Test NSC QUESTION 2 2.1.1. Current Ratio (3) 2.1.2. Acid Test Ratio (4) 2.1.3. Solvency Ratio (5) Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting (Grade 10) 5 September 2018 Cammon Test NSC 2.1.4. Operating Expenses on Sales (3) 2.5. Return on Average Owners’ Equity (5) 20 Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting (Grade 10) 6 September 2018 Common Test NSC QUESTION 3 3.1. The owner of Mashonisa Traders is happy about the liquidity position of the business. Quote TWO relevant financial indicators with figures to support her opinion. (6) 3.2. The manager is concern about the mark up % achieved by the business. Quote ONE relevant indicator to support her concern. And explain what caused the business not to achieve its targeted mark up. Mention TWO points. (7). TWO POINTS Copyright Reserved Please Turn Over

Accounting (Grade 10) 7 Downloaded from hlayiso.com September 2018 Common Test NSC 3.3. The owner of the business is not satisfied by the operating efficiency of the business. Quote TWO relevant financial indicators with figures to support his opinion (6) 3.4, The manager feels that the owner must be satisfied with the returns he is earning in this business. Do you agree with this opinion? o Explain by quoting ONE financial indicator to support your answer. Also quote figures to support your answer. (5) 24 TOTAL MARKS: 100 . Copyright Reserved

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