Accounting Grade 12 EC June 2019 Addendum

Downloaded from hlayiso.com Name: NATIONAL SENIOR CERTIFICATE GRADE 12 JUNE 2019 ACCOUNTING ANSWER BOOK MAXIMUM MARKS MODERATED QUESTION MARKS OBTAINED MARKS 1 40 2 45 3 50 4 70 5 55 6 40 300 This answer book consists of 14 pages. *JACABE*

Downloaded from hlayiso.com 2 ACCOUNTING (Answerbook) (EC/JUNE 2019) QUESTION 1 1.1 1.1.1 1.1.2 1.1.3 1.1.4 4 1.2 1.2.1 Calculate the value of the closing stock on 30 April 2019. 8 1.2.2 Cost of sales Gross Profit % Stock holding period for 2019 17 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) ACCOUNTING (Answerbook) 3 1.2.3 Comment on the stock holding period for 2019. Quote figures. (The stockholding period for 2018 was 182 days.) 4 1.2.4 In order to improve on stock losses (20 suitcases) the previous year the owner introduced stricter control measures over stock. Comment on whether it was successful. Show calculations. 7 Q1: 40 TOTAL MARKS Copyright reserved Please turn over

Downloaded from hlayiso.com 4 ACCOUNTING (Answerbook) (EC/JUNE 2019) QUESTION 2 2.1.1 Calculate the correct balance of the Bank Account on 31 January 2019 15 2.1.2 Prepare the Bank Reconciliation Statement on 31 January 2019. Bank reconciliation statement on 31 January 2019 Debit Credit 11 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) ACCOUNTING (Answerbook) 5 2.1.3 An internal investigation revealed that deposits are not made immediately. Quote and explain TWO examples which led to this finding. 4 2.1.4 Provide TWO internal control measures that the business can use to prevent this from happening again. 4 2.2 Reconciled Debtor’s List on 31 March 2019: H James 1 200 A Dyantyi 1 900 E Rasmeni 2 160 H Jameson 1 500 Total of corrected debtor’s list 11 Q2: 45 TOTAL MARKS Copyright reserved Please turn over

Downloaded from hlayiso.com 6 ACCOUNTING (Answerbook) (EC/JUNE 2019) QUESTION 3 INCOME STATEMENT FOR THE YEAR ENDING 30 APRIL 2019 Sales Cost of Sales Gross profit Other operating income Bruto bedryfsinkomste Operating expenses Repairs and maintenance 150 720 Bank charges 33 600 Sundry expenses 107 670 Operating profit 102 820 Profit before interest expense Interest expense Profit before tax Income tax Net profit for the year 50 Q3: 50 TOTAL MARKS Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) ACCOUNTING (Answerbook) 7 QUESTION 4 4.1 4.1.1 ISSUED SHARE CAPITAL Ordinary shares in issue on 1 March 2018 5 200 000 Ordinary shares in issue on 28 February 2019 9 RETAINED INCOME Balance on 1 March 2018 Ordinary share dividends Balance on 28 February 2019 531 050 11 TRADE AND OTHER RECEIVABLES 7 Copyright reserved Please turn over

Downloaded from hlayiso.com 8 ACCOUNTING (Answerbook) (EC/JUNE 2019) 4.1.2 RADABA LIMITED STATEMENT OF FINANCIAL POSITION (BALANCE SHEET) 28 FEBRUARY 2019 ASSETS Non-current assets Current assets Inventories TOTAL ASSETS EQUITY AND LIABILITIES Shareholders’ equity Non-current liabilities Current liabilities TOTAL EQUITY AND LIABILITIES 26 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) ACCOUNTING (Answerbook) 9 4.2.1 The company issued additional shares at R9. In your opinion, do you think the existing shareholders would be happy with the issue price? Quote ONE financial indicator with actual figure/percentage/ratio to support your statement. 3 4.2.2 The directors feel that the shareholders should be satisfied with the performance of the company. Explain and quote TWO financial indicators with actual figures/ ratios/percentages to support their opinion. 6 4.2.3 The directors decided to increase the loan during the current financial year. Quote TWO financial indicators (actual figures/ratios/percentages) that are relevant to their decision. Explain why this was a good decision, or not. 8 Q4: 70 TOTAL MARKS Copyright reserved Please turn over

Downloaded from hlayiso.com 10 ACCOUNTING (Answerbook) (EC/JUNE 2019) QUESTION 5 5.1.1 CASH GENERATED FROM OPERATIONS    Changes in working capital      19  5.1.2 CASH FLOW STATEMENT ON 30 JUNE 2018   CASH FLOW FROM OPERATING ACTIVITIES    CASH FLOW FROM INVESTING ACTIVITIES     CASH FLOW FROM FINANCING ACTIVITIES     NET CHANGE IN CASH AND CASH EQUIVALENTS  CASH AND CASH EQUIVALENTS AT BEGINNING (12 800)  CASH AND CASH EQUIVALENTS AT THE END  23 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) ACCOUNTING (Answerbook) 11 5.2 AUDIT REPORT  5.2.1 What type of report did VOVO Ltd receive? Explain. 3 5.2.2 The Companies Act requires public companies to be audited. Provide a reason for this. 2 5.2.3 Explain ONE major consequence for Makaya&Ntini should they be negligent in performing their duties. 2 5.2.4 Name ONE other party, other than the shareholders, that would be interested in this audit opinion and give a reason for their interest. 2 Copyright reserved Please turn over

Downloaded from hlayiso.com 12 ACCOUNTING (Answerbook) (EC/JUNE 2019) 5.2.5 Briefly indicate how this audit report would possibly affect the shares of VOVO LTD on the Johannesburg Securities Exchange (JSE). Mention TWO points. 4 Q5: 55 TOTAL MARKS Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2019) ACCOUNTING (Answerbook) 13 QUESTION 6 6.1 FIXED ASSETS 6.1.1 Calculate the missing figures indicated by A to E in the incomplete Fixed Assets Note. A B C D E 7 6.1.2 Prepare the Asset Disposal Account for the office furniture sold. ASSET DISPOSAL 10 6.1.3 Comment on the sale of land to the husband of the CEO. See Information B. 2 Copyright reserved Please turn over

Downloaded from hlayiso.com 14 ACCOUNTING (Answerbook) (EC/JUNE 2019) 6.2 VAT Calculate the amount of VAT payable to/receivable from SARS on 28 February 2019. Indicate whether the amount is payable or receivable. 13 6.3 VAT AND ETHICS 6.3.1 Why should Ranti Traders produce a proof of sales? 2 6.3.2 How would this affect the VAT returns of Rantsi Traders? 2 6.3.3 Advise Rantsi Traders of the implications, should he agree to this request. Mention TWO points. 4 Q6: 40 TOTAL MARKS TOTAL: 300 Copyright reserved Please turn over

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