Accounting Grade 10 September Test 2019 Paper & Memo

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Downloaded from hlayiso.com Accounting (Grade 10) 2 Common Test September 2019 NSC INSTRUCTIONS AND INFORMATION 1. You are provided with a question paper 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. Round off to ONE decimal place where necessary. 6. 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 (60 Marks; 54 Minutes) Topic of the question This question integrates: Sole Trader Financial Statements Financial accounting • Income Statement/ Statement of Comprehensive Income • Fixed Assets Note(Calculations) QUESTION 2 (20 Marks; 18 Minutes) I u Topic of the question This question integrates: Financial accounting Analysis and Interpretation of Financial • Ratio Calculations Statements QUESTION 3 (20 Marks; 18 Minutes) Topic of the question This question integrates: Financial accounting Analysis and Interpretation of Financial • Comments Statements Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting (Grade 10) 3 Common Test September 2019 NSC QUESTION 1 (60 Marks; 54 Minutes) SOLE TRADER: INCOME STATEMENT AND NOTES Use the following information from Agrizzi Traders for the financial year ending on 28 February 2019. The business is owned by Xolani Maduna. 1.1 Prepare the Income Statement/Statement of Comprehensive Income for the year ended 28 February 2019. (43) 1.2 . Calculate the missing figures in the Tangible/ Fixed Assets Note denoted by letters A - D by using information no.9. (17) INFORMATION: PRE-ADJUSTMENT TRIAL BALANCE OF AGRIZZI TRADERS ON 28 FEBRUARY 2019. Balance sheet accounts section Debits Credits Capital 1 200 000 Drawings 68 000 Mortgage loan: Mange Bank 207 600 Land and buildings at cost 1 160 000 Equipment at cost 260 000 Accumulated depreciation on equipment(1 March 2018) 69 200 Vehicles at cost 560 000 Accumulated depreciation on vehicles (1 March 2018) 112 000 Fixed deposit: Sithathu Bank (8% p.a.) 48 000 Trading stock 88 000 Debtors control 84 600 Bank 60 200 Creditors control 85 200 Nominal accounts section Sales 1 792 840 Cost of sales 840 000 Debtors allowances 21 840 Salaries and wages 187 000 Insurance 25 000 Bad debts 17 600 Stationery 28 640 Telephone 42 900 Bank charQes 22 800 Rent income 66 800 Packing materials 40 000 Advertising 11 280 Commission income 30 620 Interest on fixed deposit 1 600 3·565 860 3 565 860 Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting (Grade 10) 4 Common Test September 2019 NSC Additional information and adjustments: 1 Received a first and final dividend of 40 cents in the rand from the insolvent estate of S. Phakathi, a debtor who owed R 1 600.The remainder must be written off. No entries have as yet been made. The telephone account for February 2019, R1 830, was still outstanding. The rent for March 2019 has already been received. The rent was increased by R600 per month with effect from 1 January 2019. The loan statement received reflected the following: Balance on 1 March 2018 300 000 Repayments during the financial year (including 92 400 interest) Interest capitalized ? Balance on 28 February 2019 234 600 Provide for the interest on loan. Insurance includes an amount of R1 920 paid for the period 1 January 2019 to 30 June 2019. Provide for the outstanding interest on the fixed deposit. There was a fire in the business on 20 February 2019 and merchandise was damaged. The insurance company has agreed to pay only 80% of the claim as the goods were under-insured. Their settlement cheque of R12 800 will be received during March 2019.No entries have as yet been made. Stocks on hand on 28 February 2019 as per stock sheets: * Trading stock, R71 000 ¢ Packing materials, R950 Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting (Grade 10) 5 NSC Common Test September 2019 9, Fixed/ Tangible Assets Note for the year ended February 2019. FIXED/TANGIBLE ASSETS Equipment Vehicles Carrying value at beginning of c year 560 000 5 Ae TT FE \ Additions at cost_ 24 800 a ' Depreciation epee (oe El oe) ' Carrying value at end of year Accumulated depreciation Provide for depreciation as follows: e On vehicles at 25% p.a. on cost. ° On equipment at 20% p.a. on diminishing balance method. NOTE: Additional equipment with a total cost of R24 800 was purchased on 1 September 2018. This transaction was recorded and therefore included in the equipment balance above. Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting (Grade 10) 6 Common Test September 2019 NSC QUESTION 2 (20 Marks; 18 Minutes) RATIO CALCULATIONS The following information was extracted from the accounting records of TS Galaxy Traders the business owned by Mondli Langa which is selling sporting equipment in Ngoje Area. REQUIRED: 2.1 Calculate the following ratios/financial indicators for the year ended 30 June 2019. Show all calculations to the nearest two decimal points. 2.1.1. Solvency ratio 2.1.2 Current ratio 2.1.3 Acid test ratio 2.1.4 Return on average owner's equity 2.1.5. Operating expenses on sales INFORMATION: 1. _ Extract from the Income Statement for the year ended 30 June 2019: Sales 1.875 000 Cost of sales 1118 750 Operating expenses 700 000 Net profit 525 000 2. _ Extract from the Balance Sheet as at 30 June : 2019 2018 Fixed/Tangible assets at carrying value 2 250 000 1 500 000 Fixed deposit: Betty Bank 150 000 120 000 Current assets 1 287 500 880 000 Inventories 300 000 225 000 Trade and other receivable 850 000 565 000 Cash and cash equivalents 137 500 90 000 Owner’s equity 2 500 000 1.475 000 Non current liabilities 818 750 625 000 Current liabilities 368 750 400 000 Copyright Reserved Please Turn Over o ~~ w ~ EN a eG of oO oO SS

Downloaded from hlayiso.com Accounting (Grade 10) L Common Test September 2019 NSC QUESTION 3 (20 Marks; 18 Minutes) INTERPRETATION OF FINANCIAL INFORMATION You are provided with information about Vuma Stores for the past two financial years ended 30 September. The business is situated in KZN Pongola and trades in racing bikes. The business is owned by Phila Hlophe. 3.1. The owner a decision with regards to selling price/Mark-up of bikes in 2019; * What is the decision, quote figures to support your answer? (3) ¢ Did the business benefited from that decision explain by mentioning TWO Points from the question with figures to support your answer. (6) 3.2. Comment on the liquidity position of the business, quote TWO financial Indicators to support your comment. (6) 3.3. The owner is satisfied with the return he is earning in this business, explain By quoting ONE financial indicator to support your answer. (5) NOTE: Provide figures or financial indicators (ratios or percentages) and comparisons with the previous year to support comments or explanations. INFORMATION FOR THE YEAR ENDED 30 SEPTEMBER: A. FIGURES IDENTIFIED FROM INCOME STATEMENT: 2019 2018 Sales R13 182000] R7 740000 Number of bikes sold 1 750 bikes 900 bikes Mark-up % 58% 72% Cost of sales 8 330 000 4 500 000 Gross profit 4 852 000 3 240 000 Operating expenses 1 900 000 1 500 000 Depreciation 412 000 275 000 Net profit for the year 1911 000 1 036 000 Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting (Grade 10) 8 Common Test September 2019 NSC B. FINANCIAL INDICATORS: 2019 2018 ' Mark-up % achieved 58% 72% ' Operating profit on sales 22% 17,5% Net profit on sales 19% 16,2% Operating expenses on sales 12,6% 19,4% i Current ratio 2,0:1 2,9:1 Acid-test ratio 1,2:1 0,9:1 Solvency Ratio 3,8: 1 eee a Return on owners equity 20,8% 17,8% ; Interest(rate) on fixed deposit 12% 12% xo ; TOTAL: 100 i Copyright Reserved Please Turn Over \

Downloaded from hlayiso.com Accounting (Grade 10) FORMULA SHEET FOR GRADE 10 9 Common Test September 2019 NSC Annexure A Gross profit x100 Gross profit x 100 Net profit x 100 ) Sales 4 Cost of sales 4 Sales 1 foe _—— Se Seed \ Operating expensesx100 Operating profit x 100 | Sales 1 Sales 1 Current assets : Current liabilities pie pon eee nero Current Assets - Inventory : Current liabilities Net profit x Average equity 1 100 Total assets : Total liabilities Copyright Reserved

Downloaded from hlayiso.com education Department: Education PROVINCE OF KWAZULU-NATAL : ACCOUNTING : ANSWER BOOK SEPTEMBER 2019 NATIONAL SENIOR CERTIFICATE [ GRADE 10 Name: Grade: zi ' Learners | Moderators Question Topic Mark Mark 1 Income Statement And Notes 2 Ratio Calculations 3 Interpretation of Financial Statements | TOTAL | This answer book consists of 7 pages. (Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting (Grade 10) 2 Common Test September 2019 NSC QUESTION 1 1.1. INCOME STATEMENT OF AGRIZZI TRADERS FOR THE YEAR ENDED 28 FEBRUARY 2019 Sales Cost of sales Gross profit Other operating income _ Gross operating income Operating expenses _ | Operating profit Interest income Profit before interestexpense Interest expense Net profit for the year 43 Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting (Grade 10) 3 Common Test September 2019 NSC ie WORKINGS ANSWER (A) (B) (C) (D) ‘lie 60 Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting (Grade 10) 4 Common Test September 2019 NSC QUESTION 2 2.1.1 Solvency Ratio 2.1.2. Current Ratio 2.1.3. Acid test ratio 2.1.4, Return on average owner’s equtiy Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting (Grade 10) 5 Common Test September 2019 NSC 2.1.5. Operating expenses on sales 20 Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting (Grade 10) 6 Common Test September 2019 NSC QUESTION 3 3.1. The owner took a decision with regards to selling price/Mark-up of bikes in 2019; ¢ What is the decision, quote figures to support your answer? ¢ Did the business benefited from that decision explain by mentioning TWO Points from the question with figures to support your answer. Decision Explanation TWO Points 3.2. Comment on the liquidity position of the business, quote TWO financial indicators to support your comment. Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting (Grade 10) Zé Common Test September 2019 NSC 3.3. The owner is satisfied with the return he is earning in this business, explain By quoting ONE financial indicator to support your answer. 20 TOTAL MARKS: 100 Copyright Reserved

Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE ARKS: 100 _ARKING PRINCIPLES: (1. Penalties for foreign items are applied only if the candidate is not losing marks elsewhere in the | question for that item (no penalty for misplaced item). No double penalty applied. | . Full marks for correct answer. If answer incorrect, mark the workings provided. lf a pre-adjustment figure is shown as a final figure, allocate the part-mark for the working for that figure (not the method mark for the answer). Unless otherwise indicated, the positive or negative effect of any figure must be considered to award the mark. If no + or — sign or bracket is provided, assume that the figure is positive. Where indicated, part-marks may be awarded to differentiate between differing qualities of answers from candidates. | . _ Where penalties are applied, the marks for that section of the question cannot be a final negative. Where method marks are awarded for operation, the marker must inspect the reasonableness of the answer and at least one = must be correct before — the mark. Be aware of candidates who provide valid alternatives beyond the marking guideline. This marking guideline consists of 7 pages. opyright Reserved Please Turn Over

Downloaded from hlayiso.com _ Accounting (Grade 10) QUESTION 1 September 2019 Common Test INCOME STATEMENT OF AGRIZZI TRADERS FOR THE YEAR ENDED 28 FEBRUARY 2019 Sales (1 792 840v - 21 840v) M1 771 000 Cost of sales (840-000)—___ (840-000) Gross profit 5 M1931 000 Other operating income M191 820 Commission income(30 620) ¥30 620 Rent income( 66 800v — 5 600vv) M61 200 Copyright Reserved Gross operating income 7 M1 022 820 Operating expenses |___& (555 660) Salaries and wages(187 000) ¥ 187 000 Insurance(25 000v - 1 280v) je M23 720 Bad Debts (17 600 + 960v) M18 560 Stationery (28 640) | ¥28 640 Telephone (42 900v + 1 830v) v¥44 730 Bank Charges (22 800) “22 800 Packing Materials (40 000v—950v) | ¥39 050 Advertising (11 280) v11 280 Trading stock deficit vv1 000 Depreciation | M175 680 Loss due to fire (16 000v — 12 800v) 23 M3 200 caecoe 467 160 Interest income (1 600v + 2 240v) M3 840 Profit before interest expense M1471 000 Interest expense v¢(27 000) Net proft for the year 8 71444 000 43 43 Please Turn Over

Downloaded from hlayiso.com Accounting (Grade 10) 3 September 2019 Common Test aie NSC = WORKINGS ANSWER (A) 260 000v — 24 800v 3 M1235 200 — ee ee ae ee 24 800” X 20% X 6/12v = 2 480M 3 (B) Old 235 200” — 69 200v= 166 000M X 20% = 33 200M 4 _ M35 680 2 480 + 33 200 1 CREE (C) = ©4448 000 560 000v — 112 000v 3 EEA , M140 000 (D) | 560 000v X 25%v 3 OReRaH CEA 7 17. 60 60 Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting (Grade 10) QUESTION 2 4 September 2019 Common Test NSC 2.1.1 Solvency Ratio 3 987 500 : 1 187 500 (2 550 000 + 150 000v fete + 1287 500) : ( 818 750v + 368 750v) 2.1.2. Current Ratio 1 287 500v : 368 750v —} 3,5: 14 o 2.1.3. Acid test ratio (1 287 500v — 300 000v) : 368 750v 987 500 : 368 750 2,7:14 > 2.1.4. Return on average owner’s equtiy 525 000 v x 100 (1.475 000v + 2 500 000v)/v2 525 000 fmare x 100 1 987 500 = 26,4%M Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting (Grade 10) 5 NSC September 2019 Common Test 2.1.5. Operating expenses on sales 700000__v x100 1 875 000 v 37, 3% M4 Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting (Grade 10) 6 September 2019 Common Test y NSC QUESTION 3 3.1. The owner took a decision with regards to selling price/Mark-up of bikes in 2019; e What is the decision, quote figures to support your answer? e Did the business benefited from that decision explain by mentioning TWO Points from the question with figures to support your answer. Decreased mark-up % from 72% - 58% or by 14% Explanation TWO Points Sales increased from 7 740 000 — 13 182 000 or by 5 540 000 Number of bikes sold increased from 900 — 1 750 or by 850 9 Gross profit increased from 3 240 000 — 4 852 000 or by 1 612 000 9 3.2. Comment on the liquidity position of the business, quote TWO financial Indicators to support your comment. Current Ratio decreased from 2,9 : 1 —2,0:1 Acid Test Ratio increased from 0,9: 1—1,2:1 Gen Liquidity position indicates that the business can pay its current liabilities using current assets/ there are no liquidity problems/ the business does not rely on stock 6 6 Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting (Grade 10) eA September 2019 Common Test NSC o + 3.3. The owner is satisfied with the return he is earning in this business, explain By quoting ONE financial indicator to support your answer. Return on Equity increased from 17,8% - 20,8% or by 3% This is above interest rate on fixed deposit at 12% TOTAL MARKS: 100 Copyright Reserved