Accounting Grade 11 P1 Eastern Cape November 2012 Addendum

Surname and Name: Province of the EASTERN CAPE EDUCATION NATIONAL SENIOR CERTIFICATE GRADE 11 NOVEMBER 2012 ACCOUNTING ANSWER BOOK MARKS QUESTION MAX. MARKS MODERATION OBTAINED 1 105 2 45 3 45 4 30 5 35 6 40 TOTAL 300 This answer book consists of 13 pages.

2 ACCOUNTING (Answer book) (NOVEMBER 2012) QUESTION 1 PARTNERSHIPS (105 marks ; 63 minutes) 1.1 MATCHING ITEMS 1.1.1 1.1.2 1.1.3 1.1.4 1.1.5 10 1.2 JJ STORES INCOME STATEMENT FOR THE YEAR ENDED 29 FEBRUARY 2012 Sales Cost of Sales GROSS PROFIT Other Operating Income Rent Income Discount received GROSS INCOME Operating Expenses Consumable Stores Insurance Salaries and Wages Stationery Water and Electricity Bad Debts Sundry Expenses OPERATING PROFIT Interest Income Net Profit before Interest expense/Finance cost NET PROFIT FOR THE YEAR 240 000 40

(NOVEMBER 2012) ACCOUNTING (Answer book) 3 1.3 NOTES TO THE BALANCE SHEET 1.3.1 TRADE AND OTHER RECEIVABLES 8 *Use the format taught at your school. 1.3.2 CURRENT ACCOUNTS JAKOB JULIES TOTAL Salaries 90 000 86 600 176 600 Interest on Capital 21 1.4 Comment on the LIQUIDITY position of this business. Quote TWO relevant ratios to support your comment. 8

4 ACCOUNTING (Answer book) (NOVEMBER 2012) 1.5 Calculate the total earnings of partner Jakob. (Show workings). 4 1.6 Calculate the return on investment of partner Julies. Should he be satisfied with this return? Elaborate. 8 1.7 Julies is concerned about the total drawings of Jakob. Explain why you think it bothers him, and provide TWO suggestions on how he can address this concern. Explanation: Suggestions: 6 105

(NOVEMBER 2012) ACCOUNTING (Answer book) 5 QUESTION 2 MANUFACTURING CONCERNS (45 marks ; 27 minutes) 2.1 2.1.1 2.1.2 2.1.3 2.1.4 4 2.2 FACTORY OVERHEAD COSTS (MANUFACTURING OVERHEADS) 15 2.3 Calculate the selling price per cartridge. Hint: Calculate the number of units sold first. 4

6 ACCOUNTING (Answer book) (NOVEMBER 2012) 2.4 GENERAL LEDGER OF GAUTENG MANUFACTURERS WORK IN PROCESS STOCK ACOUNT 7 FINISHED GOODS STOCK ACCOUNT 6 2.5 Calculate the number of units Vusi had to produce in order to break even. 5 2.6 Explain the usefulness of the break-even analysis, and comment on the level of production achieved by Vusi. 4 45

(NOVEMBER 2012) ACCOUNTING (Answer book) 7 QUESTION 3 CASH BUDGETS (45 marks ; 27 minutes) 3.1 KING DEALERS – DEBTORS COLLECTION SCHEDULE MONTHS CREDIT SALES MAY JUNE March 61 500 April May 54 000 June 7 3.2 KING DEALERS CASH BUDGET FOR THE PERIOD 1 MAY 2012 – 30 JUNE 2012 MAY JUNE RECEIPTS Cash sales 18 000 Cash from debtors TOTAL RECEIPTS PAYMENTS Payments to creditors 47 500 Manager’s salary 8 500 Wages (shop assistants) 12 000 Telephone 3 000 3 000 Consumable Stores 4 600 4 600 TOTAL PAYMENTS CASH SURPLUS / (DEFICIT) Bank (Opening balance) BANK (CLOSING BALANCE) 26

8 ACCOUNTING (Answer book) (NOVEMBER 2012) 3.3 D. King wants to borrow R100 000 from the bank. He intends presenting this budget as a motivation for the loan. State TWO points that you think the bank would consider before making a decision. (Quote figures) 4 3.4 The budgeted telephone expense for April was R3 000. 3.4.1 Provide a suitable reason for the actual expense being R450 more than the budgeted amount. 2 3.4.2 Give a reason why the business decided to maintain the telephone expense at R3 000 for the budget period. 2 3.5 The sales assistants are dissatisfied with their wage increase. Give TWO points to support them. 4 45

(NOVEMBER 2012) ACCOUNTING (Answer book) 9 QUESTION 4 BANK RECONCILIATION (30 marks ; 18 minutes) 4.1 CALCULATION OF THE BANK ACCOUNT BALANCE BANK ACCOUNT Balance (b/d) CPJ Total 532 200 CRJ Total 620 500 16 4.2 BANK RECONCILIATION ON 30 JUNE 2012 DEBIT CREDIT 10 4.3 Explain how monthly reconciliation with the bank statement can be useful in detecting and preventing mismanagement of cash and fraud. (TWO POINTS) 4 30

10 ACCOUNTING (Answer book) (NOVEMBER 2012) QUESTION 5 CLUBS AND STOCK SYSTEMS (35 marks ; 21 minutes) 5.1 M9 TENNIS CLUB MEMBERSHIP FEE 17 5.2 5.2.1 Calculate the cost of refreshments sold. 3 5.2.2 Calculate the total amount of refreshments purchased during the year. 6 5.3 Name another system that the club can use to record stock. 2

(NOVEMBER 2012) ACCOUNTING (Answer book) 11 5.4 Is the periodic inventory system an appropriate system for the club to use? Motivate your answer. 3 5.5 The chairperson feels that the stock balances should not be so high. Suggest TWO ways in which stock can be more effectively controlled. 4 35

12 ACCOUNTING (Answer book) (NOVEMBER 2012) QUESTION 6 ASSET MANAGEMENT (40 marks ; 24 minutes) 6.1 GENERAL LEDGER OF HARRY’S TRADERS EQUIPMENT 6 ASSET DISPOSAL 8 6.2 TANGIBLE ASSETS VEHICLES EQUIPMENT Cost (1 March 2011) 175 000 92 400 Accumulated Depreciation (1 March 2011) CARRYING VALUE (1 March 2011) Movements: CARRYING VALUE (29 February 2012) Cost (29 February 2012) Accumulated Depreciation (29 February 2012) 21

(NOVEMBER 2012) ACCOUNTING (Answer book) 13 6.3 40% of the total equipment is made up of computers and other office devices. The accountant is of the opinion that the depreciation policy regarding equipment must be re-visited. Do you agree? Provide TWO reasons. 5 40 TOTAL : 300