Accounting Feb March 2016 Answer Book Eng_hlayiso.com_.pdf

Downloaded from hlayiso.com CENTRE NUMBER EXAMINATION NUMBER NATIONAL SENIOR CERTIFICATE ACCOUNTING GRADE 12 FEBRUARY/MARCH 2016 SPECIAL ANSWER BOOK QUESTION MARKS INITIAL MOD. 1 2 3 4 5 6 TOTAL This answer book consists of 16 pages. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 2 DBE/Feb.–Mar. 2016 NSC – Answer Book QUESTION 1 1.1 Explain how the Creditors' Reconciliation Statement can assist the business in terms of their internal control measures. State TWO points. 4 1.2 Calculate the correct balance of Pikor Suppliers in the Creditors' Ledger Account of Machu Traders. Show the changes to the figure R116 400. 12 1.3 Creditors' Reconciliation Statement for Pikor Suppliers on 30 April 2015 Details Amount Balance per statement of account Correct balance 10 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 3 DBE/Feb.–Mar. 2016 NSC – Answer Book 1.4 The owner of Machu Traders is not completely satisfied with the service and quality of goods received from Pikor Suppliers. Suggest TWO factors he should consider before changing suppliers. 4 TOTAL MARKS 30 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 4 DBE/Feb.–Mar. 2016 NSC – Answer Book QUESTION 2 2.1 CONCEPTS 2.1.1 2.1.2 2.1.3 3 2.2 STAR WHEELS MANUFACTURERS 2.2.1 DIRECT LABOUR COST 9 FACTORY OVERHEAD COST 13 2.2.2 PRODUCTION COST STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2015 Direct (raw) material cost 2 100 000 Prime cost Total manufacturing cost Work-in-process (beginning of year) 160 000 Cost of production of finished goods 10 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 5 DBE/Feb.–Mar. 2016 NSC – Answer Book 2.3 NUTRITIOUS EATS 2.3.1 Calculate the break-even point for the year ended 31 October 2015. 4 2.3.2 Should the business be satisfied with the number of units that they produced and sold during the current financial year? Explain. Quote figures. 3 2.3.3 Give TWO possible reasons for the increase in the direct material cost per unit in the current financial year. 4 2.3.4 Craig suggests that, in order to improve financial results in the new financial year, the quantity of cereal per box must be reduced by 10% and the selling price must remain the same. Give TWO valid reasons why he should not do this. 4 TOTAL MARKS 50 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 6 DBE/Feb.–Mar. 2016 NSC – Answer Book QUESTION 3 3.1 VAT CONCEPTS 3.1.1 3.1.2 3.1.3 3 3.2 VAT CALCULATIONS Calculate the correct amount of VAT the business has to pay. Show ALL workings. 12 3.3 INVENTORY VALUATION 3.3.1 (a) Calculate the closing stock of Johx watches on 31 August 2015. 5 (b) Calculate the cost of sales of Johx watches for the year ended 31 August 2015. 4 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 7 DBE/Feb.–Mar. 2016 NSC – Answer Book (c) Calculate the average stock-holding period (in days) of Johx watches on 31 August 2015. 4 3.3.2 (a) Calculate the closing stock of Kwatz watches on 31 August 2015. 7 (b) Calculate the sales of Kwatz watches on 31 August 2015. 3 3.3.3 Explain why the business uses different methods to value each type of watch. State ONE valid point. 2 TOTAL MARKS 40 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 8 DBE/Feb.–Mar. 2016 NSC – Answer Book QUESTION 4 4.1 MUSICA LIMITED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2015 Sales (8 412 000 Cost of sales (4 595 000 Gross profit Other income Commission income 64 140 Gross income Operating expenses Sundry expenses 257 400 Bank charges 41 905 Audit fees 75 600 Operating profit Interest income 3 000 Profit before interest expense Interest expense Net profit before tax Income tax (300 300) Net profit after tax 50 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 9 DBE/Feb.–Mar. 2016 NSC – Answer Book 4.2 TRADE AND OTHER RECEIVABLES 10 4.3 AUDIT REPORT 4.3.1 The audit report is an example of a/an (qualified/unqualified/disclaimer of opinion) audit report. 1 4.3.2 Who is the audit report addressed to? Give a reason for your answer. 2 4.3.3 Explain why it is likely that this audit report will have a negative effect on the value of the shares of this company on the JSE. 2 TOTAL MARKS 65 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 10 DBE/Feb.–Mar. 2016 NSC – Answer Book QUESTION 5 5.1 ASSET DISPOSAL 2015 2015 31 31 Aug. Aug. 9 5.2 No. Calculation Amount (a) (b) (c) 12 5.3.1 Calculate the income tax paid. 5 5.3.2 Calculate the net change in cash and cash equivalents. 4 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 11 DBE/Feb.–Mar. 2016 NSC – Answer Book 5.4 Cash effects on financing activities 7 5.5.1 Calculate the net asset value per share. 3 5.5.2 Calculate the return on average shareholders' equity. 5 5.5.3 Calculate the debt-equity ratio. 3 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 12 DBE/Feb.–Mar. 2016 NSC – Answer Book 5.6.1 The directors are not satisfied with the liquidity position. Quote and explain THREE relevant financial indicators (with figures) to support this statement. 6 5.6.2 The directors decided to increase the loan during the current financial year. Explain why this was a good decision. Quote and explain TWO financial indicators (with figures) in your answer. 8 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 13 DBE/Feb.–Mar. 2016 NSC – Answer Book 5.6.3 The directors were pleased with the price that the company paid to buy back the 40 000 shares. Give a suitable reason why the directors felt that way. Quote relevant financial indicators (with figures) to support your answer. 3 TOTAL MARKS 65 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 14 DBE/Feb.–Mar. 2016 NSC – Answer Book QUESTION 6 6.1 KOBUS HARDWARE 6.1.1 Calculate the missing amounts indicated by (a) to (e) in the Cash Budget for March and April 2016. Calculation Amount (a) (b) (c) (d) (e) 17 6.1.2 Complete the Debtors' Collection Schedule. CREDIT SALES MARCH APRIL FEBRUARY * 76 000 MARCH * 68 400 * APRIL 158 400 * 144 400 * 8 6.1.3 Calculate the percentage increase in sundry expenses. 4 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 15 DBE/Feb.–Mar. 2016 NSC – Answer Book 6.1.4 The Cash Budget for March and April 2016 indicates that this business will face serious financial difficulties. Identify TWO items to support this statement. Quote relevant figures. 4 6.1.5 Refer to Information K. Explain why each of the items reflects a problem for the business. State TWO points in EACH case. Item Explanation Point 1: Collection from debtors Point 2: Point 1: Payments to creditors Point 2: Point 1: Insurance Point 2: Point 1: Drawings Point 2: (4 x 2) 8 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 16 DBE/Feb.–Mar. 2016 NSC – Answer Book 6.2 MANAGEMENT OF FIXED ASSETS Identify ONE problem regarding each vehicle/driver. Quote figures to support your answers. Give Kobus ONE point of advice for EACH problem identified. Problem with figures Advice Vehicle 1 (Leroy) Vehicle 2 (Fred) Vehicle 3 (Bheki) 9 TOTAL MARKS 50 TOTAL: 300 Copyright reserved