# Accounting Grade 12 NSC Supplementary 2016 QP (Eng) > Grade 12 Accounting question paper from the NSC Supplementary Exam 2016 (English), 20 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/accounting-feb-march-2016-eng/200cadca-5900-4d07-b712-b48ca1e3174e - Updated: 2026-09-27 - Subject: Accounting - Grade: Grade 12 - Document type: Question paper - Year: 2016 - Exam period: NSC Supplementary Exam - Curriculum: CAPS - Pages: 20 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 12](https://www.hlayiso.com/library/grade-12) › [Accounting](https://www.hlayiso.com/library/grade-12/accounting) › [Accounting Grade 12 NSC Supplementary 2016 QP (Eng)](https://www.hlayiso.com/library/accounting-feb-march-2016-eng/200cadca-5900-4d07-b712-b48ca1e3174e) ## About this document Accounting · Grade 12 · NSC Supplementary Exam · 2016. Question paper, 20 pages. Read online or download the PDF. Read it free online on the page above; download the PDF from there. ## Document text Text extracted from the PDF. Layout, diagrams and tables may not survive extraction. ### Page 1 Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE GRADE 12 ACCOUNTING FEBRUARY/MARCH 2016 MARKS: 300 TIME: 3 hours This question paper consists of 20 pages and a 16-page answer book. Copyright reserved Please turn over ### Page 2 Downloaded from hlayiso.com Accounting 2 DBE/Feb.–Mar. 2016 NSC INSTRUCTIONS AND INFORMATION Read the following instructions carefully and follow them precisely. 1. Answer ALL the questions. 2. A special ANSWER BOOK is provided in which to answer ALL the questions. 3. Show ALL workings to earn part-marks. 4. You may use a non-programmable calculator. 5. You may use a dark pencil or blue/black ink to answer the questions. 6. Where applicable, show all calculations to ONE decimal point. 7. Write neatly and legibly. Copyright reserved Please turn over ### Page 3 Downloaded from hlayiso.com Accounting 3 DBE/Feb.–Mar. 2016 NSC 8. Use the information in the table below as a guide when answering the question paper. Try NOT to deviate from it. QUESTION 1: 30 marks; 15 minutes Topic of the question: This question integrates: Financial accounting Creditors' Reconciliation Reconciling a Creditors' Account to a statement and Internal Control Managing resources Internal control and internal audit QUESTION 2: 50 marks; 25 minutes Topic of the question: This question integrates: Managerial accounting Production Cost Statement Manufacturing Break-even point Managing resources Ethical behaviour QUESTION 3: 40 marks; 25 minutes Topic of the question: This question integrates: Financial accounting VAT and Inventory VAT concepts and calculations Valuation Managing resources Specific identification and weighted average methods QUESTION 4: 65 marks; 40 minutes Topic of the question: This question integrates: Financial accounting Income Statement, Note to GAAP principles the Balance Sheet and Income Statement Audit Report Trade and other receivables Audit report QUESTION 5: 65 marks; 40 minutes Topic of the question: This question integrates: Financial accounting Cash Flow Statement Cash Flow Statement, Analysis and interpretation of financial information Analysis and Interpretation Notes to the Balance Sheet of Financial Statements Managing resources Asset disposal QUESTION 6: 50 marks; 35 minutes Topic of the question: This question integrates: Managerial accounting Analyse and interpret a Cash Budget Budgets Managing resources Internal control and internal audit Copyright reserved Please turn over ### Page 4 Downloaded from hlayiso.com Accounting 4 DBE/Feb.–Mar. 2016 NSC QUESTION 1: CREDITORS' RECONCILIATION AND INTERNAL CONTROL (30 marks; 15 minutes) Machu Traders buys goods on credit from Pikor Suppliers. The business received a statement for April 2015 from the creditor. REQUIRED: 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 Prepare a Creditors' Reconciliation Statement for Pikor Suppliers on 30 April 2015. (10) 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) INFORMATION: A. Creditors' Ledger of Machu Traders PIKOR SUPPLIERS (CL4) Date Debit Credit Balance 2015 April 01 Balance 44 220 08 Invoice 153 54 000 98 220 10 Cheque 1449 22 500 75 720 12 Debit note 746 5 760 69 960 15 Invoice 111 27 300 97 260 17 Invoice 214 91 500 188 760 21 Invoice 273 20 250 209 010 24 Debit note 966 5 400 214 410 27 Journal voucher 490 3 600 210 810 31 Cheque 2346 93 000 117 810 Discount 1 410 116 400 Copyright reserved Please turn over ### Page 5 Downloaded from hlayiso.com Accounting 5 DBE/Feb.–Mar. 2016 NSC B. Statement received on 30 April 2015: PIKOR SUPPLIERS PO Box 249, Sabie, 8234. Tel: 013 748 0703 Machu Traders Date: 25 April 2015 PO Box 313 Credit limit: R100 000 Graskop, 8250 Payment terms: 50 days Interest on overdue accounts: 6% DATE DEBIT CREDIT AMOUNT 2015 April 01 Account rendered 44 220 05 Interest 780 45 000 08 Invoice 153 54 000 99 000 10 Receipt 491 22 500 76 500 Discount 480 76 020 12 Credit note 511 6 570 69 450 17 Invoice 214 91 500 160 950 19 Receipt 654 84 000 76 950 21 Invoice 273 50 250 127 200 24 Credit note 632 5 400 121 800 C. Additional Information: 1. The discount of R480 received from Pikor Suppliers on 10 April 2015 was omitted erroneously in the books of Machu Traders. 2. Invoice 111 was reflected erroneously in the account of Pikor Suppliers in the Creditors' Ledger of Machu Traders. It refers to merchandise purchased from another supplier, Lethu Suppliers. 3. Pikor Suppliers made an error in the recording of invoice 273 on the statement. 4. Goods returned on 12 April 2015 were recorded correctly in the statement from Pikor Suppliers. The entry in the books of Machu Traders is incorrect. 5. Receipt 654 was shown erroneously in the statement from Pikor Suppliers. This transaction does not relate to Machu Traders and will be rectified on the next statement. 6. Pikor Suppliers also purchases goods on credit from Machu Traders. Refer to Journal Voucher 490. Machu Traders has transferred a debit balance from the Debtors' Ledger. This entry has not been recorded by Pikor Suppliers. 7. The transaction on 24 April 2015 is in respect of merchandise returned to Pikor Suppliers. 8. The statement shows transactions up to 25 April 2015. 30 Copyright reserved Please turn over ### Page 6 Downloaded from hlayiso.com Accounting 6 DBE/Feb.–Mar. 2016 NSC QUESTION 2: MANUFACTURING (50 marks; 25 minutes) 2.1 CONCEPTS Indicate whether the following statements are TRUE or FALSE. Write only 'true' or 'false' next to the question number (2.1.1–2.1.3) in the ANSWER BOOK. 2.1.1 Commission on sales will be classified as an administration cost. (1) 2.1.2 Advertising is part of factory overhead costs. (1) 2.1.3 Carriage on raw materials purchased increases the cost of raw materials issued for production. (1) 2.2 STAR WHEELS MANUFACTURERS You are provided with information relating to Star Wheels Manufacturers for the year ended 31 December 2015. The business manufactures one type of bicycle. REQUIRED: 2.2.1 Prepare the following notes to the Production Cost Statement: • Direct labour cost (9) • Factory overhead cost (13) 2.2.2 Prepare the Production Cost Statement. (10) INFORMATION: A. Stock balances: 31 December 2015 1 January 2015 Raw materials stock Work-in-process stock ? R160 000 Finished goods stock R95 000 R110 000 Indirect factory materials R15 100 R13 200 B. Employees in the production process: Number of employees 14 employees Basic monthly salary of each employee R7 000 Total overtime hours per employee for the year 144 hours Overtime rate per hour R65 Copyright reserved Please turn over ### Page 7 Downloaded from hlayiso.com Accounting 7 DBE/Feb.–Mar. 2016 NSC Employment benefits: • All employees in the production process work the same number of overtime hours. • UIF deductions from the basic salary are 1%. The employer contributes an additional 1% of the basic salary to UIF. C. The factory foreman is entitled to an annual salary of R156 000 (including UIF and pension benefits). D. Accounts appearing in the General Ledger on 31 December 2015: Water and electricity R104 000 Rent expense R115 200 Insurance R71 400 • 10% of the water and electricity was used by the administration office. The factory used the rest. • Rent is divided between the different sections according to floor space: Total Factory Administration Sales Floor space 1 500 m2 600 m2 400 m2 500 m2 • Insurance of R2 800 is still outstanding for December 2015. Insurance is divided in a ratio of 3 : 2 : 2 between the factory, administration and sales departments. E. Indirect materials of R38 400 were bought for the factory during the financial year. F. The following figures were calculated for the financial year: • Depreciation on factory equipment, R277 220 • Direct (raw) materials issued for manufacturing, R2 100 000 G. Details from the Income Statement for the year: Sales of finished goods R6 200 000 Cost of sales of finished goods R4 015 000 Copyright reserved Please turn over ### Page 8 Downloaded from hlayiso.com Accounting 8 DBE/Feb.–Mar. 2016 NSC 2.3 NUTRITIOUS EATS This business produces and sells one type of breakfast cereal. The sole owner is Craig Manning. The financial year-end is 31 October. REQUIRED: 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) INFORMATION: The following information was taken from the accounting records: 31 October 2015 31 October 2014 Total Per unit Total Per unit Sales R1 792 000 R28,00 R1 794 000 R23,00 Variable costs R1 024 000 R16,00 R975 000 R12,50 Fixed costs R736 000 R11,50 R630 000 R8,08 Direct material cost R656 000 R10,25 R592 800 R7,60 Break-even point ? 60 000 units Number of units 64 000 units 78 000 units produced and sold 50 Copyright reserved Please turn over ### Page 9 Downloaded from hlayiso.com Accounting 9 DBE/Feb.–Mar. 2016 NSC QUESTION 3: VAT AND INVENTORY VALUATION (40 marks; 25 minutes) 3.1 VAT CONCEPTS Change the underlined parts in the following sentences to make the statements TRUE. Write the answer next to the question number (3.1.1–3.1.3) in the ANSWER BOOK. 3.1.1 Input VAT is VAT charged to customers. (1) 3.1.2 VAT is payable to the South African Reserve Bank. (1) 3.1.3 VAT is charged at 14% on fruits and vegetables. (1) 3.2 VAT CALCULATIONS Wandile Traders is a VAT registered business. The standard rate of VAT is 14%. REQUIRED: Calculate the correct amount of VAT the business has to pay. Show ALL workings. (12) INFORMATION: The bookkeeper, Felix, prepared the VAT Control Account for the tax period ended 31 May 2015 and arrived at a VAT payable amount of R43 820. However, the internal auditor has identified the following errors and omissions which must still be brought into account to calculate the correct VAT payable amount: A. Sales invoices omitted from the Debtors' Journal, R10 830 including VAT B. Damaged goods returned to suppliers, excluding VAT 18 600 C. VAT on sundry business expenses omitted 6 818 D. VAT on discounts received from suppliers 756 E. VAT on bad debts recovered 112 F. VAT on bad debts was recorded on the wrong side of the 92 VAT Control Account Copyright reserved Please turn over ### Page 10 Downloaded from hlayiso.com Accounting 10 DBE/Feb.–Mar. 2016 NSC 3.3 INVENTORY VALUATION Bamjee Stores sells two types of men's watches: • Johx, imported from Germany • Kwatz, locally manufactured The financial year ended on 31 August 2015. REQUIRED: 3.3.1 Calculate the following in respect of Johx watches on 31 August 2015: (a) Closing stock (5) (b) Cost of sales (4) (c) Average stock-holding period (in days) (4) 3.3.2 Calculate the following values (in rands) in respect of Kwatz watches on 31 August 2015: (a) Closing stock (7) (b) Sales (3) 3.3.3 Explain why the business uses different methods to value each type of watch. State ONE valid point. (2) INFORMATION: A. • The business uses the following methods to value the stock of watches: o Johx – specific identification o Kwatz – weighted average • No watches were stolen or lost during the financial year. B. Information relating to Johx watches: UNIT TOTAL UNITS TOTAL UNITS PRICE AMOUNT SOLD SALES Opening stock 12 R6 500 R78 000 11 R125 125 Purchases: 35 R252 000 September 2014 15 R6 800 R102 000 10 R119 000 January 2015 12 R7 300 R87 600 10 R127 750 April 2015 8 R7 800 R62 400 5 R68 250 47 R330 000 36 R440 125 • The cost price of Johx watches includes transport costs and customs duties. • These watches are sold at a mark-up of 75% on cost. Copyright reserved Please turn over ### Page 11 Downloaded from hlayiso.com Accounting 11 DBE/Feb.–Mar. 2016 NSC C. Information relating to Kwatz watches: TOTAL UNITS UNIT PRICE AMOUNT Opening stock 95 R340 R32 300 Purchases: 675 R259 900 September 2014 320 R375 R120 000 January 2015 210 R390 R81 900 April 2015 145 R400 R58 000 • Kwatz watches are sold at a fixed selling price of R520 each. • Cost to transport Kwatz watches from local suppliers amounted to R11 950 for the financial year and is not included in the figures above. • There were 92 Kwatz watches in stock on 31 August 2015. 40 Copyright reserved Please turn over ### Page 12 Downloaded from hlayiso.com Accounting 12 DBE/Feb.–Mar. 2016 NSC QUESTION 4: INCOME STATEMENT, NOTE TO THE BALANCE SHEET AND AUDIT REPORT (65 marks; 40 minutes) You are provided with information relating to Musica Limited for the year ended 31 December 2015. REQUIRED: 4.1 Prepare the Income Statement. (50) 4.2 Prepare the Note to the Balance Sheet for Trade and Other Receivables. (10) INFORMATION: Extract from Pre-adjustment Trial Balance on 31 December 2015: Balance Sheet Accounts Section Debit Credit Ordinary share capital 3 000 000 Retained income (1 January 2015) 628 000 Loan from Paris Bank 540 800 Debtors' control 125 000 Creditors' control 96 200 Provision for bad debts 7 150 Trading stock 376 000 SARS: Income tax 315 000 Nominal Accounts Section Sales 8 412 000 Cost of sales 4 595 000 Debtors' allowances 112 000 Sundry expenses 257 400 Bank charges 41 905 Audit fees 75 600 Packing materials 15 400 Repairs and maintenance 107 500 Commission income 64 140 Directors' fees 736 000 Salaries and wages 1 020 000 Employer's contributions 156 000 Interest on current bank account 3 000 Bad debts 17 600 Rent income 87 720 Dividends on ordinary shares 360 000 Copyright reserved Please turn over ### Page 13 Downloaded from hlayiso.com Accounting 13 DBE/Feb.–Mar. 2016 NSC Adjustments and additional information: A. Provide for R278 200 depreciation for the financial year. B. On 27 December 2015 P Maine, a debtor, returned merchandise. A credit note for R1 600 was issued to her. (The cost price was R900.) No entries were made for the return of the merchandise. These items were returned to stock. C. The insolvent estate of a debtor, J Jabaroo, paid out 45 cents in the rand and made a direct deposit of R2 025 on 31 December 2015. The outstanding balance must be written off. No entries were made to record the direct deposit and the amount written off. D. The provision for bad debts must be increased to R8 000. E. The stock count on 31 December 2015 revealed: • Trading stock R369 100 • Packing material R2 400 F. The company has two directors. Each director receives the same monthly remuneration. One of the directors did not receive his directors' fee for December 2015. G. Interest on the loan from Paris Bank has not been entered yet. Interest is capitalised. The loan statement received from Paris Bank reflected the following: Balance on 1 January 2015 R601 600 Repayments made during the year R100 800 Balance on 31 December 2015 R540 800 H. There was no change in the monthly rent during the financial year. The tenant paid R6 000 for repairs to the premises. As Musica Limited is responsible for all repairs, the tenant deducted this amount from the rent, which he paid for November 2015. The repairs have not been recorded, and the rent for December 2015 has not been received yet. I. An employee was left out of the Salaries Journal. His details are: Net salary R12 150 Deductions R6 350 Employer's contributions R5 050 J. Income tax for the year was correctly calculated at R300 300. Copyright reserved Please turn over ### Page 14 Downloaded from hlayiso.com Accounting 14 DBE/Feb.–Mar. 2016 NSC 4.3 AUDIT REPORT You are provided with an extract from the independent audit report of Sumba Ltd. EXTRACT FROM THE AUDIT REPORT OF SUMBA LTD. We found that internal control procedures were not adhered to and documentation did not exist for a significant portion of the transactions tested. Because of the significance of the matter described in the previous paragraph, we have not been able to obtain sufficient audit evidence to provide a basis for an audit opinion. Accordingly, we do not express an opinion on the financial statements for the year ended 28 February 2014. REQUIRED: 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) 65 Copyright reserved Please turn over ### Page 15 Downloaded from hlayiso.com Accounting 15 DBE/Feb.–Mar. 2016 NSC QUESTION 5: CASH FLOW STATEMENT, ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS (65 marks; 40 minutes) You are provided with information for the financial year ended 28 February 2016, taken from the books of Chuta Ltd, a listed public company. 5.1 Refer to Information C. Prepare the Asset Disposal Account in respect of equipment sold on 31 August 2015. (9) 5.2 Refer to Information C. Calculate the amounts indicated by (a) to (c). (12) 5.3 Calculate the following figures which will appear in the Cash Flow Statement for the year ended 28 February 2016: (Show ALL workings.) 5.3.1 Income tax paid (5) 5.3.2 Net change in cash and cash equivalents (4) 5.4 Prepare the section of the cash effects on financing activities of the Cash Flow Statement for the year ended 28 February 2016. (7) 5.5 Calculate the following financial indicators for the financial year ended 28 February 2016: (Round off your calculation to ONE decimal point or the nearest cent, where applicable.) 5.5.1 Net asset value per share (3) 5.5.2 Return on average shareholders' equity (5) 5.5.3 Debt-equity ratio (3) 5.6 Refer to Information F. 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) 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) Copyright reserved Please turn over ### Page 16 Downloaded from hlayiso.com Accounting 16 DBE/Feb.–Mar. 2016 NSC INFORMATION: A. Extract from the Income Statement for the year ended 28 February 2016: Sales R2 800 000 Net profit before tax 1 240 000 Income tax ? Net profit after tax 892 800 B. Extract from the Balance Sheet on 28 February 2016: 2016 2015 Fixed assets (carrying value) ? ? Fixed deposit: FS Bank 1 450 000 1 200 000 Current assets 1 944 280 1 010 000 Inventory 975 700 345 000 Debtors and other receivables 419 000 629 600 SARS (Income tax) 0 17 400 Cash and cash equivalents 549 580 18 000 Shareholders' equity 5 950 800 4 345 000 Share capital 5 402 000 4 200 000 Retained income 548 800 145 000 Mortgage loan: TKO Bank 1 950 000 400 000 Current liabilities 587 200 555 000 Creditors and other payables 437 800 165 000 Accrued expenses 8 700 5 000 SARS (Income tax) 35 700 0 Shareholders for dividends 105 000 275 000 Bank overdraft 0 110 000 Copyright reserved Please turn over ### Page 17 Downloaded from hlayiso.com Accounting 17 DBE/Feb.–Mar. 2016 NSC C. Fixed Assets (i) Land and Vehicles Equipment Buildings Carrying value at the 2 000 000 (b) beginning of the year Cost 2 000 000 900 000 Accumulated depreciation 0 (470 000) Movements: Additions (a) 150 000 Disposals 0 Depreciation 0 (c) Carrying value at the 3 900 000 end of the year Cost 3 900 000 930 000 Accumulated depreciation 0 (ii) Equipment • An old printer, bought for R120 000, was sold for cash on 31 August 2015 at carrying value. Accumulated depreciation on this printer was R38 400 on 1 March 2015. • A new printer was bought for R150 000 on 1 September 2015. • Depreciation on equipment is written off at 20% p.a. according to the diminishing-balance method. D. Share Capital • Authorised share capital is 3 000 000 ordinary shares. • In 2012, 1 200 000 ordinary shares had been issued at R3,50 per share. • On 1 November 2015, 300 000 ordinary shares were issued at R4,50 each. • On 28 February 2016, 40 000 shares were repurchased at R0,60 more than the average price per share. E. Dividends The directors declared a final dividend of 7 cents per share. The shares bought back on 28 February 2016 also qualify for the final dividends. F. Financial Indicators on 28 February: 2016 2015 Net profit after tax on sales 31,9% 24,5% Current ratio 3,3 : 1 1,8 : 1 Debtors' collection period 36 days 28 days Creditors' payment period 45 days 80 days Acid-test ratio 1,7 : 1 1,2 : 1 Rate of stock turnover 3 times 5 times Return on shareholders' equity ? 17,5% Return on total capital employed 24,2% 21,2% Debt-equity ratio ? 0,09 : 1 Interest rate on loans 10,5% 10,5% Net asset value per share ? 362 cents Market value per share 505 cents 480 cents 65 Copyright reserved Please turn over ### Page 18 Downloaded from hlayiso.com Accounting 18 DBE/Feb.–Mar. 2016 NSC QUESTION 6: BUDGETS (50 marks; 35 minutes) 6.1 KOBUS HARDWARE You are provided with information relating to Kobus Hardware, owned by Kobus Groenewald. REQUIRED: 6.1.1 Calculate the missing amounts indicated by (a) to (e) in the Cash Budget for March and April 2016. (17) 6.1.2 Complete the Debtors' Collection Schedule for April 2016. (8) 6.1.3 Calculate the percentage increase in sundry expenses. (4) 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. (4 x 2) (8) INFORMATION A. An extract from the Cash Budget MARCH 2016 APRIL 2016 CASH RECEIPTS Cash sales (a) 237 600 Cash from debtors 144 400 ? Rent income 3 000 (c) Loan: Bull Bank - 180 000 Commission income 26 600 28 000 CASH PAYMENTS Cash purchases of trading stock (b) 257 500 Payments to creditors for stock 32 350 28 250 Salaries and wages 61 240 61 240 Loan instalment - (d) Interest on loan - (e) Insurance 2 260 2 260 Drawings 18 000 18 000 Delivery expenses 30 000 30 000 Sundry expenses 87 600 89 790 Cash surplus/(deficit) Bank: Opening balance Bank: Closing balance (75 300) (44 900) Copyright reserved Please turn over ### Page 19 Downloaded from hlayiso.com Accounting 19 DBE/Feb.–Mar. 2016 NSC B. The business has only one supplier. Commission of 7% of total sales is receivable in the month following the sales. C. Cash sales amount to 60% of total sales. D. Total sales for February 2016 were R380 000. E. 10% of the trading stock is bought on credit. Creditors are paid in full in the month following the month of purchase. F. Collection from debtors: • 45% settle accounts in the month of sales and receive 5% discount. • 50% settle accounts in the following month. • Provision is made for 5% bad debts. G. A tenant rented a storage room in our building. He moved in on 15 March 2016 and was required to pay only half the rent amount. He was informed that rent increases by 5,5% on 1 April each year. H. Sundry expenses are expected to increase by a fixed percentage each month. I. The loan, at 10,5% p.a. interest, will be taken out on 1 April 2016. • The loan will be repaid in 24 equal monthly instalments commencing on 30 April 2016. • Interest on the loan is also payable at the end of each month commencing on 30 April 2016. Interest is not capitalised. J. The bank has granted Kobus an overdraft facility of R40 000. K. Kobus is concerned about the following items, which were under/over budget for February 2016: Under/over Item Budgeted Actual budget Collection from debtors 174 200 61 800 Under Payments to creditors 39 400 15 600 Under Insurance 2 260 0 Under Drawings 18 000 52 000 Over Copyright reserved Please turn over ### Page 20 Downloaded from hlayiso.com Accounting 20 DBE/Feb.–Mar. 2016 NSC 6.2 MANAGEMENT OF FIXED ASSETS You are the internal auditor for Kobus Hardware. Kobus is concerned that he is spending too much on delivering goods to customers. He has provided you with figures for a typical month, February 2016. REQUIRED: Identify ONE problem regarding each vehicle/driver. Quote figures to support your answers. Give Kobus ONE point of advice for EACH problem identified. (9) INFORMATION: A. Kobus has three delivery vehicles and employs three drivers to transport goods to his customers free of charge. The drivers are expected to work five days per week. There are four weeks in February. B. Some customers live close by while others live further away. None of the customers live more than 20 km from the shop (i.e. maximum 40 km round trip). C. Information from the accounting records for February 2016: Vehicle 1 Vehicle 2 Vehicle 3 Name of driver Leroy Fred Bheki Date of purchase 1 Mar. 2014 2 Feb. 2012 1 May 2007 Carrying value R270 000 R102 000 R1 Number of days driver 12 20 20 worked Salary of driver per month R8 000 R5 000 R5 000 Number of deliveries made 48 80 120 Average number of trips 4 4 6 per day Kilometres travelled 1 300 4 600 3 000 Average number of 27 58 25 kilometres per trip Petrol (litres) used 59 209 214 Kilometres per litre 22 22 14 Petrol costs R668 R2 365 R2 424 (R11,31 per litre) Petrol costs per km R0,51 R0,51 R0,81 50 TOTAL: 300 Copyright reserved ## Related documents - [ACCN GR12 SEPT2016 AFR QP](https://www.hlayiso.com/library/accn-gr12-sept2016-afr-qp/60974d99-7967-406d-8a25-f56fbba8eb17) — Accounting · QP · 2016 · Afr - [2016 KZN June QP](https://www.hlayiso.com/library/2016-kzn-june-qp/50bf5b89-0bac-4f5b-915d-dd2ca2def2ce) — Accounting · QP · 2016 - [2016 KZN Prelim QP](https://www.hlayiso.com/library/2016-kzn-prelim-qp/4073534a-a91f-4646-aa09-acdc89a40dd1) — Accounting · QP · 2016 - [Accounting Nov 2016 Afr](https://www.hlayiso.com/library/accounting-nov-2016-afr/4b85ebe0-a2bd-4759-802a-1c1d3028494b) — Accounting · QP · 2016 · Afr - [Accounting Feb March 2017 Eng](https://www.hlayiso.com/library/accounting-feb-march-2017-eng/1553532b-c4b5-4962-b321-ef37e71fb728) — Accounting · QP · 2017 · Eng - [2016 KZN June Memo](https://www.hlayiso.com/library/2016-kzn-june-memo/f370d234-2813-4e5b-8c39-f416ea0e8128) — Accounting · Memo · 2016 ## More from Grade 12 Accounting - [Accounting](https://www.hlayiso.com/library/accounting/8f42a6a4-9593-4d36-86b1-d890dd1bb1bf) — Guide - [ACCOUNTING P1 GR12 AB JCT ENG D watermark](https://www.hlayiso.com/library/accounting-p1-gr12-ab-jct-eng-d-watermark/77ae8297-53f7-47b3-8e29-57bd38f30483) — Addendum · 2025 · Eng - [Acc P2 Memo ENg watermark](https://www.hlayiso.com/library/acc-p2-memo-eng-watermark/5c899e95-f3c2-4bf6-b539-ed8b1bcec50d) — Memo · 2025 · Eng - [Accounting P1 (English) June 2025 Answer Book](https://www.hlayiso.com/library/accounting-p1-english-june-2025-answer-book/7e96e433-56f8-43a1-9a38-c68c465746dd) — Addendum · 2025 · Eng - [Accounting P2 (English ) June 2025 Answer Book](https://www.hlayiso.com/library/accounting-p2-english-june-2025-answer-book-1/73bffe7c-1c96-49bd-af78-abb8db8c6618) — Addendum · 2025 · Eng - [Accounting P1 (Afrikaans) June 2025 Possible Answers](https://www.hlayiso.com/library/accounting-p1-afrikaans-june-2025-possible-answers/2f10559b-54d6-47f4-9fc2-b2efc62644c4) — Memo · 2025 · Afr ## Collection - [Grade 12 past papers](https://www.hlayiso.com/grade-12/past-papers) --- Hlayiso: free CAPS and IEB past papers, memos, notes and study guides for South African learners. 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