Accounting Grade 12 EC June 2016 Addendum (English)

Downloaded from hlayiso.com Name: NATIONAL SENIOR CERTIFICATE GRADE 12 JUNE 2016 ACCOUNTING ANSWER BOOK MARKS MODERATED QUESTION MAX MARKS OBTAINED MARKS 1 45 2 35 3 60 4 45 5 65 6 50 300 This answer book consists of 14 pages. *ACABE*

Downloaded from hlayiso.com 2 ACCOUNTING (Answer book) (EC/JUNE 2016) QUESTION 1: RECONCILIATIONS 1.1 BANK RECONCILIATION 1.1.1 Calculation of the Bank Account balance FAVOURABLE / UNFAVOURABLE : 8 1.1.2 Provide a reason why cheque No. 882 should not appear as an outstanding cheque. Also state how this transaction must be corrected. REASON: RECORDING: 4 1.1.3 Cheque No. 1234 is post-dated. How must this cheque be treated at the end of the financial year? 4 1.1.4 List the accounting entries that must be made to take this transaction into account. 2 Provide ONE control measure to prevent such incidents in future. 2 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2016) ACCOUNTING (Answer book) 3 1.2 CREDITORS RECONCILIATION ON 30 APRIL 2016 Balance as per statement 9 1.3.1 Explain why the balance on the Debtors’ Control account in the general ledger should equal to the total of the Debtors’ List. 2 1.3.2 CORRECTION TO DEBTORS LIST M. Goode (7 535 E. Better (9 620 N. Nice (6 880 10 1.3.3 Explain why you would be concerned about the management of debtors. Quote figures in your answer. 4 Q1 45 Copyright reserved Please turn over

Downloaded from hlayiso.com 4 ACCOUNTING (Answer book) (EC/JUNE 2016) QUESTION 2: INVENTORY VALUATION 2.1 CONCEPTS 2.1.1 2.1.2 2.1.3 2.1.4 4 2.2.1 Calculate the value of the closing stock of tennis balls 8 Calculate the cost of sales of tennis balls 3 Calculate the stock holding period (in days) 4 2.2.2 Comment on whether the stock holding period is appropriate or not. 2 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2016) ACCOUNTING (Answer book) 5 2.2.3 Calculate the value of the closing stock of Nexus rackets 10 Calculate the gross profit on Olympus rackets 4 Q2 35 Copyright reserved Please turn over

Downloaded from hlayiso.com 6 ACCOUNTING (Answer book) (EC/JUNE 2016) QUESTION 3: CONCEPTS, AUDIT REPORT AND INCOME STATEMENT 3.1 CONCEPTS 3.1.1 3.1.2 3.1.3 3.1.4 4 3.2.1 Explain the role of the independent auditor. 2 3.2.2 Did Gunuz Ltd receive an unqualified, qualified or a disclaimer audit report? Explain your choice. 2 3.2.3 The external auditor was not willing to do this. Briefly explain why she feels this way. 2 Provide TWO consequences for the auditor if she agreed to this request. 4 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2016) ACCOUNTING (Answer book) 7 3.3 BHEEM LTD INCOME STATEMENT FOR THE YEAR ENDED 29 FEBRUARY 2016 Sales Cost of sales Gross profit Other income Gross income Operating expenses Operating profit Profit before interest expense Net profit before income tax Net profit after income tax 46 Q3 60 Copyright reserved Please turn over

Downloaded from hlayiso.com 8 ACCOUNTING (Answer book) (EC/JUNE 2016) QUESTION 4: COMPANIES – CONCEPTS AND BALANCE SHEET 4.1 CONCEPTS 4.1.1 4.1.2 4.1.3 4.1.4 4.1.5 5 4.2.1 ORDINARY SHARE CAPITAL 650 000 Ordinary shares on 1 May 2015 3 992 500 7 RETAINED INCOME Balance (1 May 2015) 222 900 Balance (30 April 2016) 10 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2016) ACCOUNTING (Answer book) 9 4.2.2 BALANCE SHEET AS AT 30 APRIL 2016 NON CURRENT ASSETS   CURRENT ASSETS     TOTAL ASSETS EQUITY AND LIABILITIES SHAREHOLDERS EQUITY   NON-CURRENT LIABILITIES CURRENT LIABILITIES    TOTAL EQUITY AND LIABILITIES 23 Q4 45 Copyright reserved Please turn over

Downloaded from hlayiso.com 10 ACCOUNTING (Answer book) (EC/JUNE 2016) QUESTION 5: CASH FLOW STATEMENT AND INTERPRETATION 5.1 CONCEPTS 5.1.1 5.1.2 5.1.3 5.1.4 4 5.2.1 CASH GENERATED FROM OPERATIONS Net profit before tax 456 000 Adjustments for : Cash effects of changes in working capital CASH GENERATED FROM OPERATIONS 10 5.2.2 Income tax paid 4 Dividends paid 3 Fixed assets sold at carrying value 6 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2016) ACCOUNTING (Answer book) 11 5.2.3 CASH EFFECTS OF FINANCING ACTIVITIES 9 5.2.4 Calculate the debt equity ratio 4 Net asset value per share 3 Return on shareholders’ equity 6 5.2.5 Quote and explain THREE financial indicators (with figures) that suggest that the liquidity of the business has generally improved. 6 Copyright reserved Please turn over

Downloaded from hlayiso.com 12 ACCOUNTING (Answer book) (EC/JUNE 2016) 5.2.6 Should the shareholders be satisfied with their returns and earnings? Explain. Quote TWO financial indicators (with figures) in your answer. 5 5.2.7 Were the directors justified in acquiring the additional loan? Explain. Make reference to TWO financial indicators (with figures). 5 Q5 65 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2016) ACCOUNTING (Answer book) 13 QUESTION 6: VAT AND FIXED ASSETS 6.1 TRUE AND FALSE. 6.1.1 6.1.2 6.1.3 3 6.2 VAT CALCULATION 6.2.1 Calculate the amount that is either due to SARS or receivable from SARS for the two-month period ended 30 April 2016. RECEIVABLE / PAYABLE : 12 6.2.2 What advice would you offer Joe regarding this proposal? Explain. ADVICE: REASON 3 6.3.1 GENERAL LEDGER OF CHUMLEE STORES ASSET DISPOSAL ACCOUNT 10 Copyright reserved Please turn over

Downloaded from hlayiso.com 14 ACCOUNTING (Answer book) (EC/JUNE 2016) 6.3.2 WORKINGS ANSWER (a) (b) (c) (d) 18 6.3.3 Provide TWO possible reasons why the business decided to dispose of the old office equipment. 4 Q6 50 TOTAL: 300 Copyright reserved Please turn over

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