Accounting Grade 12 EC June 2017 Question Paper (English)

Downloaded from hlayiso.com Name: NATIONAL SENIOR CERTIFICATE GRADE 12 JUNE 2017 ACCOUNTING ANSWER BOOK MARKS MODERATED QUESTION MAX MARKS OBTAINED MARKS 1 45 2 35 3 55 4 55 5 65 6 45 300 This answer book consists of 13 pages. *ACCNE*

Downloaded from hlayiso.com 2 ACCOUNTING (Answer Book) (EC/JUNE 2017) QUESTION 1 RECONCILIATIONS 1.1 TRUE OR FALSE 1.1.1 1.1.2 1.1.3 1.1.4 4 1.2 BANK RECONCILIATION 1.2.1 ENTRIES FOR THE CRJ ENTRIES FOR THE CPJ DETAILS OF SUNDRY AMOUNT DETAILS OF SUNDRY AMOUNT Total b/f 31 790 Total b/f 22 500 14 1.2.2 BANK RECONCILIATION STATEMENT ON 31 MARCH 2017 9 1.2.3 As the internal auditor, why would you be concerned about the manner in which Siba performs her duties? Provide TWO points. 4 1.2.4 Provide a solution for the concerns you identified. 2 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2017) ACCOUNTING (Answer Book) 3 1.3 CREDITORS RECONCILIATION CHANGES TO THE CHANGES TO THE CREDITORS LEDGER STATEMENT BALANCE BALANCE 16 200 22 980 A B C D E 12 Q1 45 Copyright reserved Please turn over

Downloaded from hlayiso.com 4 ACCOUNTING (Answer Book) (EC/JUNE 2017) QUESTION 2 INVENTORY VALUATION Calculate the value of the closing stock of Samsun cameras for the six 2.1 months ended 31 March 2017. 7 2.2 Calculate the percentage gross profit earned on Nokin cameras. 6 Calculate the value of the closing stock of leather bags for the six 2.3 months ended 31 March 2017. 7 2.4 Comment on the stock holding period of leather bags. Quote figures. 4 2.5 Tim wants to increase the sales of bags. What advice would you offer him? Provide ONE point. 2 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2017) ACCOUNTING (Answer Book) 5 2.6 MANAGEMENT OF INVENTORIES 2.6.1 What decision did Erna take regarding the selling price of the printers? 2 How has this decision affected the business? State TWO points. 4 2.6.2 Was it a good idea for Erna to change to a cheaper supplier of fax machines? YES/NO: Explain ONE point. 3 Q2 35 Copyright reserved Please turn over

Downloaded from hlayiso.com 6 ACCOUNTING (Answer Book) (EC/JUNE 2017) QUESTION 3: CONCEPTS AND INCOME STATEMENT 3.1 CONCEPTS 3.1.1 3.1.2 3.1.3 3.1.4 4 3.2 INCOME STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2017 Sales Cost of sales Gross profit Other income Gross income Operating expenses Operating profit Interest expense Net profit before income tax Net profit after income tax 51 Q3 55 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2017) ACCOUNTING (Answer Book) 7 QUESTION 4 BALANCE SHEET AND NOTES 4.1 CONCEPTS 4.1.1 4.1.2 4.1.3 4.1.4 4 4.2.1 ORDINARY SHARE CAPITAL 11 RETAINED INCOME 16 Copyright reserved Please turn over

Downloaded from hlayiso.com 8 ACCOUNTING (Answer Book) (EC/JUNE 2017) 4.2.2 BALANCE SHEET AS AT 28 FEBRUARY 2017 NON CURRENT ASSETS   CURRENT ASSETS     TOTAL ASSETS EQUITY AND LIABILITIES SHAREHOLDERS EQUITY  Ordinary share capital  Retained income NON-CURRENT LIABILITIES  CURRENT LIABILITIES      TOTAL EQUITY AND LIABILITIES 24 Q4 55 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2017) ACCOUNTING (Answer Book) 9 QUESTION 5 CASH FLOW STATEMENT AND INTERPRETATION AND AUDIT REPORTS 5.1.1 CASH GENERATED FROM OPERATIONS Net profit before tax 995 800 Adjustments for: Cash effects of changes in working capital CASH GENERATED FROM OPERATIONS 11 5.1.2 Income tax paid 4 Dividends paid 4 Copyright reserved Please turn over

Downloaded from hlayiso.com 10 ACCOUNTING (Answer Book) (EC/JUNE 2017) 5.1.3 EXTRACT OF THE CASH FLOW STATEMENT INVESTING ACTIVITIES FINANCING ACTIVITIES NET CHANGE IN CASH AND CASH EQUIVALENT Cash and cash equivalents (opening balance Cash and cash equivalents (closing balance) 22 5.2 FOXX LTD AND WOLFE LTD 5.2.1 Identify the company that is managing its working capital more effectively. Refer to TWO financial indicators of both companies to support your choice of company. Company: 5 5.2.2 Comment on the dividend pay-out policy of each company. Explain the policy used and quote figures for each. 4 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2017) ACCOUNTING (Answer Book) 11 5.2.3 Comment on the decisions regarding the use of loans for each company. Make reference to TWO financial indicators for each company. 6 5.2.4 Explain how prospective investors would react to the share price of each company. Quote figures to support your answer. 4 5.2.5 AUDIT REPORT  State the type of report received by each company. FOXX: WOLFE: 2  Explain how the reports above will affect his decision concerning which company to invest his money. 3 Q5 65 Copyright reserved Please turn over

Downloaded from hlayiso.com 12 ACCOUNTING (Answer Book) (EC/JUNE 2017) QUESTION 6 FIXED ASSETS AND VAT 6.1 FIXED ASSETS 6.1.1 Explain how the asset register will assist the internal auditor in the course of him performing his duties. 2 6.1.2 GENERAL LEDGER OF ELIJAH TRADERS ASSET DISPOSAL ACCOUNT 11 6.1.3 WORKINGS ANSWER (i) (ii) (iii) (iv) (v) 18 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2017) ACCOUNTING (Answer Book) 13 6.2 VAT 6.2.1 VAT CONTROL DEBIT CREDIT Total due to SARS Total sales Total purchases Bad debts Discount received Returns to suppliers Discount allowed RECEIVABLE OR PAYABLE TO SARS: 11 6.2.2 M. Booi suggested to Marties that she will supply certain trading goods for cash only and that she will not provide any documentation. Should Marties accept this offer? Explain. 3 Q6 45 TOTAL: 300 Copyright reserved Please turn over

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