Accounting Grade 12 NSC Supplementary 2017 Addendum (Eng)

Downloaded from hlayiso.com CENTRE NUMBER EXAMINATION NUMBER NATIONAL SENIOR CERTIFICATE ACCOUNTING GRADE 12 FEBRUARY/MARCH 2017 SPECIAL ANSWER BOOK QUESTION MARKS INITIAL MOD. 1 2 3 4 5 6 TOTAL This answer book consists of 16 pages. Sticker Copy right reserved Please turn over

Downloaded from hlayiso.com Accounting 2 DBE/Feb.–Mar. 2017 NSC – Answer Book QUESTION 1 1.1 CONCEPTS 1.1.1 1.1.2 1.1.3 3 1.2 VALUE-ADDED TAX (VAT) 1.2.1 Calculate the amount of VAT either receivable from or payable to SARS on 31 July 2016. Receivable/Payable: __________________ 9 1.2.2 The owner wants to change the VAT amount on bad debts from R840 to R4 200. Give ONE reason why you would disagree with him. 2 Copy right reserved Please turn over

Downloaded from hlayiso.com Accounting 3 DBE/Feb.–Mar. 2017 NSC – Answer Book 1.3 BANK RECONCILIATION 1.3.1 Calculate the correct balance of the Bank Account in the General Ledger on 31 July 2016. Provisional Bank balance R16 785 Correct Bank balance Favourable/Unfavourable: ________________ 8 1.3.2 Bank Reconciliation Statement as at 31 July 2016 6 1.3.3 Explain ONE internal control measure that the business should implement to ensure that this will not happen in the future. 2 TOTAL MARKS 30 Copy right reserved Please turn over

Downloaded from hlayiso.com Accounting 4 DBE/Feb.–Mar. 2017 NSC – Answer Book QUESTION 2 2.1 CONCEPTS 2.1.1 2.1.2 2.1.3 3 2.2.1 Calculate the unit price of cricket bats on 1 July 2015. 2 2.2.2 Calculate the value of the stock on hand on 30 June 2016 using the weighted-average method. 10 2.2.3 Calculate the gross profit on 30 June 2016. 5 Copy right reserved Please turn over

Downloaded from hlayiso.com Accounting 5 DBE/Feb.–Mar. 2017 NSC – Answer Book 2.2.4 Calculate how long (in days) it is expected to sell the closing stock of 465 cricket bats. Use the closing stock in your calculation. 4 2.2.5 Provide a calculation to support André's concern about the control of cricket bats. How can André solve this problem? Explain ONE point. 7 2.3 Identify ONE problem relating to each branch. Quote figures to support your answer. In each case, offer Bennie advice. BRANCH PROBLEM (with figures) ADVICE Parys Pretoria Pofadder 9 TOTAL MARKS 40 Copy right reserved Please turn over

Downloaded from hlayiso.com Accounting 6 DBE/Feb.–Mar. 2017 NSC – Answer Book QUESTION 3 3.1 GANDHI LTD INCOME STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2017 Sales Cost of sales Gross profit 3 150 000 Other income Commission income 12 000 Gross income Operating expenses Salaries and wages 824 000 Depreciation 216 500 Sundry expenses Operating profit Interest income Net profit before interest expense Interest expense Net profit before tax Income tax (396 800) Net profit after tax 33 Copy right reserved Please turn over

Downloaded from hlayiso.com Accounting 7 DBE/Feb.–Mar. 2017 NSC – Answer Book 3.2.1 ORDINARY SHARE CAPITAL AUTHORISED SHARE CAPITAL 1 200 000 ordinary shares ISSUED SHARE CAPITAL Ordinary shares on 1 March 2016 3 084 000 10 3.2.2 RETAINED INCOME Balance on 1 March 2016 674 500 Ordinary share dividends Balance on 28 February 2017 10 3.3 EQUITY AND LIABILITIES SECTION OF THE BALANCE SHEET SHAREHOLDERS' EQUITY NON-CURRENT LIABILITIES CURRENT LIABILITIES TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 16 Copy right reserved Please turn over

Downloaded from hlayiso.com Accounting 8 DBE/Feb.–Mar. 2017 NSC – Answer Book 3.4.1 Calculate B Sly's percentage shareholding in the company before and after the share buy-back. Before the buy-back: After the buy-back: 4 3.4.2 Explain why the other shareholders will be concerned about this transaction. 2 TOTAL MARKS 75 Copy right reserved Please turn over

Downloaded from hlayiso.com Accounting 9 DBE/Feb.–Mar. 2017 NSC – Answer Book QUESTION 4 4.1 CONCEPTS 4.1.1 4.1.2 4.1.3 4.1.4 4 4.2 BRAZILIA LTD 4.2.1 State ONE purpose of a Cash Flow Statement. 2 4.2.2 CASH FLOW STATEMENT FOR THE YEAR ENDED 31 OCTOBER 2016 CASH FLOW FROM OPERATING ACTIVITIES Cash generated from operations 2 844 200 Interest paid (336 000) CASH FLOW FROM INVESTING ACTIVITES Fixed assets purchased (1 360 000) Change in fixed deposit 240 000 CASH FLOW FROM FINANCING ACTIVITIES NET CHANGE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING CASH AND CASH EQUIVALENTS AT END 179 500 27 Copy right reserved Please turn over

Downloaded from hlayiso.com Accounting 10 DBE/Feb.–Mar. 2017 NSC – Answer Book 4.2.3 Calculate the acid-test ratio. 4 Calculate the % return on average shareholders' equity (ROSHE). 4 Calculate the earnings per share (EPS). 3 4.3 GRAYSON LTD AND JONI LTD 4.3.1 Which company is NOT handling its working capital effectively? Explain what the main problem is in respect of their working capital, by quoting TWO financial indicators. 7 Copy right reserved Please turn over

Downloaded from hlayiso.com Accounting 11 DBE/Feb.–Mar. 2017 NSC – Answer Book 4.3.2 The companies have made different decisions regarding the use of loans. Comment on the degree of risk and financial gearing. Give ONE financial indicator in EACH case for EACH company. DEGREE OF RISK FINANCIAL GEARING Financial indicator: Financial indicator: Grayson Ltd Financial indicator: Financial indicator: Joni Ltd Comment 7 4.3.3 The dividend policy used by each company has been maintained for the past four years. Explain the policy used by EACH company. Provide figures to support your explanation in EACH case. EXPLANATION (with figures) Grayson Ltd Joni Ltd 6 Copy right reserved Please turn over

Downloaded from hlayiso.com Accounting 12 DBE/Feb.–Mar. 2017 NSC – Answer Book 4.3.4 Should EACH company be satisfied with its share price on the JSE? Explain. Provide figures. EXPLANATION (with figures) Grayson Ltd Joni Ltd 6 TOTAL MARKS 70 Copy right reserved Please turn over

Downloaded from hlayiso.com Accounting 13 DBE/Feb.–Mar. 2017 NSC – Answer Book QUESTION 5 5.1 MOSES MANUFACTURERS 5.1.1 PRODUCTION COST STATEMENT ON 30 APRIL 2016 Direct labour cost 716 960 Prime cost Total manufacturing cost Work in process at beginning of year 142 000 Cost of production of finished goods 16 5.1.2 Complete the abridged (shortened) Income Statement to calculate the net profit for the year ended 30 April 2016. Gross profit 1 250 000 Net profit 8 Copy right reserved Please turn over

Downloaded from hlayiso.com Accounting 14 DBE/Feb.–Mar. 2017 NSC – Answer Book 5.2 UNIT COSTS AND BREAK-EVEN ANALYSIS 5.2.1 Explain the difference between fixed cost and variable cost. 2 5.2.2 Calculate the break-even point for 2017. 5 5.2.3 Comment on the break-even point and the level of production for 2016 and 2017. Explain why the owner should be satisfied or not. 6 5.2.4 Identify the variable cost that should be of great concern to the owner. Explain and provide a calculation to support your answer. 4 5.2.5 Despite the fact that there was a decrease in the fixed costs per unit, the owner is still not satisfied with his control over the fixed costs. Explain and provide calculation(s) to support his opinion. 4 TOTAL MARKS 45 Copy right reserved Please turn over

Downloaded from hlayiso.com Accounting 15 DBE/Feb.–Mar. 2017 NSC – Answer Book QUESTION 6 6.1 Calculate the expected monthly percentage of goods sold on credit. 4 6.2 Debtors Collection Schedule for March 2017 MONTH CREDIT SALES FEBRUARY MARCH December 2016 74 000 16 280 January 2017 68 000 27 200 * February 2017 70 000 24 010 * March 2017 64 000 * Cash from debtors 67 490 * 5 6.3.1 Explain why the owner is concerned. Give TWO reasons with supporting figures. 4 6.3.2 Suggest ONE solution for this problem. 2 WORKINGS ANSWER 6.4.1 Payment to (a) creditors 6 Salaries of (b) sales assistants 5 Copy right reserved Please turn over

Downloaded from hlayiso.com Accounting 16 DBE/Feb.–Mar. 2017 NSC – Answer Book 6.4.2 Calculate the percentage increase in rent on 1 March 2017. 4 6.4.3 Calculate the amount of the interest on investment expected to be received in March 2017. 4 6.5 Identify TWO payments that you consider to be poorly managed in February 2017. In EACH case, give a suggestion to improve the internal control of the items identified. PAYMENT ADVICE 6 TOTAL MARKS 40 TOTAL: 300 Copyright reserved