Accounting Grade 10 North West June 2018 Memo

Downloaded from hlayiso.com PROVINCIAL ASSESSMENT GRADE 10 ACCOUNTING JUNE 2018 MEMORANDUM MARKS: 200 This memorandum consists of 11 pages. Demo NW/JUNE/ACCNG/ EMIS/6******* Page 1 of 11

Downloaded from hlayiso.com Accounting Grade 10 - Memorandum NW/June 2018 QUESTION 1: COLUMN A COLUMN B 1.1 The source document used when goods are returned D. Debit note to a supplier. 1.2 Money the owner gives to start the business. H. Capital 1.3 The GAAP principle that says that assets purchased I. Historical by the business are entered at cost price in the cost accounting records. 1.4 The action taken by the business to prevent fraud, A. Internal losses and to ensure that the business achieve its control aims and goals. 1.5 The employer must deduct income tax from his B. PAYE employees. 1.6 Basic salary plus birthday bonus. G. Gross salary 1.7 Other businesses to which the business owes money C. Creditors for purchasing stock. 1.8 Assets that have a reasonably long life span. E. Fixed Assets 1.9 The business will continue to operate in the future. K. Going concern concepts 1.10 The discount allowed to a debtor for early payment F. Expense is classified as a / an…….. 10 Demo NW/JUNE/ACCNG/ EMIS/6******* Page 2 of 11

Downloaded from hlayiso.com Accounting Grade 10 - Memorandum NW/June 2018 QUESTION 2: No. Journal General Ledger Account Account credited A OE L debited e.g. CPJ Packaging Bank -590 -590 0 material 2.1 CRJ Bank Debtors Control -4 900 0 +4 900 Debtors’ Debtors Control -100 -100 Allowance 0 2.2 CAJ Creditors Equipment -8 000 0 -8 000 control 2.3 DJ Debtors Sales +2 400 +2 400 0 Control Cost of sales Trading stock -1 600 -1 600 2.4 AJ Debtors Interest income +27 +27 0 Control 2.5 AJ Drawings Stationary 0 +32 0 -32 2.6 CPJ Wages Bank -560 -560 0 2.7 CJ Vehicles Creditors +130 000 0 +130 00 control 0 45 Demo NW/JUNE/ACCNG/ EMIS/6******* Page 3 of 11

Downloaded from hlayiso.com Accounting Grade 10 - Memorandum NW/June 2018 QUESTION 3: 3.1 DEBTORS CONTROL B7 Date Details Fol Amount Date Details Fol Amount 2018 1 4650 2018 30 Bank & 1 320 Balance b/d Apr Apr discount 30 Sales 2 700 Debtors 175 2440+260 allowance  Bank 100 Journal Cr 90 Journal Dr 455 6320 240+200 Balance c/d +15 7 905 7 905 May 1 Balance b/d 6320 15 3.2 Debtors R B. Brewis (1861 + 640 + 640+15) 3 156 R. Kelly (450 + 18 – 35) 433 F. Frylinck (-200 + 200) 0 M. Mustafa (715 – 150 + 36) 601 J. Jiang (1980 + 150) 2 130 6 320 21 Demo NW/JUNE/ACCNG/ EMIS/6******* Page 4 of 11

Downloaded from hlayiso.com Accounting Grade 10 - Memorandum NW/June 2018 3.3 List TWO internal control procedures that must be applied in a business to maintain proper control over debts ▀ There should be a policy for credit approval.  ▀ Credit checks should be performed regularly.  ▀ Interest should be charged on overdue accounts. ▀ The balance of the Debtors Control must be reconciled monthly with the Debtors list. (Any other acceptable answer) 4 (Any 2 x 2) 40 Demo NW/JUNE/ACCNG/ EMIS/6******* Page 5 of 11

Downloaded from hlayiso.com Accounting Grade 10 - Memorandum NW/June 2018 QUESTION 4 4.1 Name of the business: BROOKLYN TRADERS SALARIES JOURNAL: JULY 2017 SJ 7 Deductions Employer’s contribution Gross Gross Total Net Pension Pension salary salary salary Medical SARS Medical fund Aid (PAYE) fund UIF Aid UIF Z. Zinzi 18 000 1 440 450 3 700 150 5740 12 260 3 600 900 180 A.Arthur 15 000 1200 850 2 700 150 4 900 10 100 3 000 1 700 150 10 4.2.1 What do the following abbreviations stand for? PAYE Pay as you earn  UIF Unemployment Insurance Fund  2 4.2.2 Briefly explain the difference between “deductions” and “contributions Deduction is deducted from the employee’s gross salary.  Contributions are additional expenses for the business and are made by the employer on behalf of the employees.  4 4.2.3 How much money must be paid to the pension fund on 31 July 2017? R2 640 *+ R6 600* = R9 240  *must be the same as Salaries journal 3 4.2.4 One of the employees of this business is of the opinion that by joining a pension fund he is wasting his money. Do you agree with him? Provide a reason for your answer. No.  Provides a guaranteed income when an employee retires.  or Yes.  If he can invest this money in an investment that will give him a better return over the long run.  3 Demo NW/JUNE/ACCNG/ EMIS/6******* Page 6 of 11

Downloaded from hlayiso.com Accounting Grade 10 - Memorandum NW/June 2018 4.2.5 Name two other “fringe” benefits which can be provided by employers. Car allowance Cell phone allowance Any other valid example 2 4.2.6 Brooklyn Traders issued a cheque to SARS to settle the PAYE for July 2017. Name the accounts to be debited and credited. Account debited Account credited SARS ( PAYE) Bank 2 4.2.7 Name the account to be debited and credited when posting to the net salary from the salaries journal to the general ledger. Account debited Account credited Salaries Creditors for salaries 2 4.2.8 Name the account and amount to be debited and credited when the pension fund contributions are posted from the salaries journal to the general ledger. Account debited Account credited Pension fund contribution Pension fund 2 40 Demo NW/JUNE/ACCNG/ EMIS/6******* Page 7 of 11

Downloaded from hlayiso.com Accounting Grade 10 - Memorandum NW/June 2018 QUESTION 5: 5.1 Calculate the Gross Profit Amount in the Trading Account (7) Sales (300 000 – (1296 + 600) – Cost of Sales = (200 000 - 400) = 98 504 () 7 5.2 PROFIT AND LOSS ACCOUNT DR CR 201 2 Insurance 1 125 00 2018 2 Trading 98 504  8 8 Feb (1 695 – 570) 8 Account Feb Packaging 5 719 00 Rent Income 36 000 00 material (6 029 (33 000 + – 310) 3000) Salaries and 48 000 00 Interest 2 100 00 Wages income Delivery cost 10 820 00 Telephone (13 14 350 00 510 + 840) Water and 12 000 00 Electricity Bad debts 396 00 Trading Stock 16 880 00 deficit (67 540+400 – 51 060) Depreciation 16 274 00 (13 650 + 2 624) Interest expense 9 000 00 Capital 2 040 00 136 604 00  BOTH SIDES 136 604 00 25 Demo NW/JUNE/ACCNG/ EMIS/6******* Page 8 of 11

Downloaded from hlayiso.com Accounting Grade 10 - Memorandum NW/June 2018 5.3 Post Closing Trial Balance on 28 February 2018 Post-Closing Trial Balance of The Scene Traders on 28 February 2018 Balance Sheet Account Section FOL DEBIT CREDIT Capital (251 000+2 040-7 100) B1 245 940 00 Land & Buildings B3 180 980 00 Vehicles B4 91 000 00 Equipment B5 20 500 00 Accumulated depreciation on vehicle B6 27 300 00 (13 650+13 650) Accumulated depreciation on equipment B7 10 004 00 (7 380+2 624) Bank(44 000 + 264) B8 44 264 00 Trading Inventory B9 51 060 00 (67 540-16 480) Debtors Control B10 20 520 00 (21780 – 600 – (264 + 396) or -660 Cash Float B11 500 00 Petty cash B12 200 00 Mortgage Loan:FNB Bank(14%) B13 90 000 00 Creditors Control B14 38 820 00 Accrued expenses B15  840 Accrued income B16  3 000 Prepaid expenses B17  570 00 Consumable Goods on hand B18 310 00 412 904 00 412 904 00 21 Demo NW/JUNE/ACCNG/ EMIS/6******* Page 9 of 11

Downloaded from hlayiso.com Accounting Grade 10 - Memorandum NW/June 2018 5.4 Give two reasons why a deficit can occur and one control measure to have better control over the trading stock in future. (5) A loss of stock means a loss of profit.  Authorization for stock ordering Division of duties Security cameras (any 2x2) 60 Demo NW/JUNE/ACCNG/ EMIS/6******* Page 10 of 11

Downloaded from hlayiso.com Accounting Grade 10 - Memorandum NW/June 2018 QUESTION 6: 6.1 What is the business’s VAT registration number? (1) 372010763 6.2 Who issued the number to this business? (2) The South African Revenue Services(SARS)  6.3 How much is the VAT on the slip? (1) R1,80 6.4 How much would he have paid if the owner of the shop was not (2) Registered for VAT? R12,00 6.5 List two zero-rated items that this business would be likely to sell. (2)  Brown bread, maize products, rice, milk, fruit, vegetables, lentils, vegetable oil, eggs of canned pilchards (any 2x1) 6.6 Briefly explain the difference between zero-rated items and VAT- (4) Exempted items. Zero-rated items are goods or services on which VAT is charged at a rate of 0%,  while VAT-exempted items are goods or services on which no VAT is charged, either at the standard rate of zero-rated.  6.7 Study the scenario below and advise Aquilla as to whether she should (3) accept the offer or not. No She should not accept the offer.  To accept this offer will be morally and ethically wrong.   It is evident that the owner is trying to evade tax which is fraudulent  If she accepts the offer she will be collaborating in an illegal activity (any 2x1) 15 TOTAL:200 Demo NW/JUNE/ACCNG/ EMIS/6******* Page 11 of 11