Accounting Grade 10 North West June 2017 Memo

Downloaded from hlayiso.com Accounting Grade 10 NW/ June2017 PROVINCIAL ASSESSMENT GRADE 10 ACCOUNTING JUNE 2017 MEMORANDUM MARKS: 200 This memorandum consists of 9 pages. Page 1 of 9

Downloaded from hlayiso.com Accounting Grade 10 NW/ June2017 QUESTION 1: Choose the concept in column B which matches the explanation in column A. Write ONLY the letter, e.g. 1.1. A. COLUMN A COLUMN B 1.1 The document attached to the document used to pay E. Cheque a supplier for an amount owed to him, using money in counterfoil the business bank account. 1.2 Bank overdraft. G. Current liability 1.3 Money the owner gives to start the business. B. Capital 1.4 Assets with a long life span. A. Tangible/ Fixed assets 1.5 Money received by the business for selling stock. D. Income 1.6 Other businesses to which the business owes money C. Creditors for purchasing stock. 1.7 The reason why a person would start a business. F. Profit motive 1.8 The GAAP principle that says that assets purchased I. Historical cost by the business are entered at cost price in the accounting records. 1.9 The employer must deduct income tax from his J. PAYE employees. 1.10 The business will continue to operate in the future. H. Going concern concept Page 2 of 9

Downloaded from hlayiso.com Accounting Grade 10 NW/ June2017 QUESTION 2: 2.1.1 CASH RECEIPT JOURNAL OF STHE TRADERS FOR MARCH 2017 Do Da Details Analysis Cost Deb Disc Amoun Details c y of Bank Sales of tor`s ount t receipts Sales cont allo rol wed 21 1 Sales 5 100 5 100 2 550   58 L. Lion 760 5 860 800 40  10 S. Bank 68 000 68 000 50 000 Fixed  Deposit 18 000 Interest on  fixed deposit 73 860 800  (15) 2.1.2 CASH PAYMENT JOURNAL OF STHE TRADERS FOR MARCH 2017 Doc Da Payee Tradi Creditor Dis Amou Details y Bank Wage ng `s co nt s stock control unt rec eiv ed 711 5 Zoo Wholesalers 2 160 2 160   712 7 Bingo Traders 1 500 1 590 90  713 9 First Bank 600 600 Loan 714 14 Child Welfare 300 300 Donation 715 21 Cash 3 500 3 500  716 31 Cash 380 380 Petty cash BS 31 Star Bank 90 90 Debtor`s control BS 31 A. Tlou(R/D) 1 400 1 400 Debtor`s  control 9 930 3 500 2 160 1 590 90 2 770 (28) Page 3 of 9

Downloaded from hlayiso.com Accounting Grade 10 NW/ June2017 2.2.1 Dr BANK Cr Mar Mar Total 2017 1 Balance b/d 500 2017 31 payments CPJ 9 930  31 Total receipts CRJ 73 860 (4) 2.2.2 Dr CREDITOR`S CONTROL Cr Mar Mar 2017 31 Bank and 2017 1 Balance b/d 20 600 discount CPJ 1 590 received (2) 2.3.1 Provide the double entry for the cancellation of the discount allowed in the transaction of A Tlou dated 31 March. Debit Debtor`s Control R 50 Credit Discount Allowed R 50 (4) 2.3.2 Do you think that the bank account had a favourable balance throughout the month? Provide a suitable answer by explaining. No The business was charged interest on overdraft (3) Page 4 of 9

Downloaded from hlayiso.com Accounting Grade 10 NW/ June2017 QUESTION 3 ACCOUNTING EQUATION Use the following information of Zet Traders to show the effect of each transaction on the accounting equation. Example Donate stationery to the amount of R450 to a local crèche. Account Account Amount Asset Owner`s Liabilities debited credited Equity Ex Donation Stationery 550 0 - 0 + 1 Donation Merchandise 480 - - 0 Debtor`s Interest 2 control income 5 + - 0 Bad debt 3 Bank recovered 150 + + 0 4 Creditor`s control Bank 620 - + - 5a Drawings Bank 600 - - 0 B Petty Bank 700 + 0 0 Cash - c Repairs Bank 400 - - 0 Interest 6 expense Bank 66 - - 0 (41) Page 5 of 9

Downloaded from hlayiso.com Accounting Grade 10 NW/ June2017 QUESTION 4 DEBTORS AND THE LIST 4.1 GENERAL LEDGER OF ZIZI TRADERS Dr DEBTOR`S CONTROL Cr April April Bank and 2017 1 Balance b/d 94 560 201 30 discount(257 508+ CRJ 257 588 7 80) 31 Sales(271 050- DJ 265 050 Debtor`s allowance 6 000) DAJ 1 122 Bank CP 270 Journal credits J GJ 936 Journal debits(624+30 GJ 834 Balance c/d 101 068 +180)  360 714 360 714 May 1 Balance b/d 101 068 (13) 4.2 Debtor`s List on 30 April 2017 Debtors Debit Credit C. Lebo ( 17 960 + 30) 17 990 S. Thabo ( 19 910 + 200) 20 110 W. Jos ( 18 202 + 600) 18 802 V. Vuyani 12 460 B. Ben 17 382 H. Hope ( 14 404 – 80) 14 324 T. Tlou ( 180 – 180) 0 101 068 (13) Page 6 of 9

Downloaded from hlayiso.com Accounting Grade 10 NW/ June2017 4.3.1 Name two ways to encourage debtors to pay their accounts on time. - Give discount for early settlement of accounts. - Charge interest on overdue accounts. - Send regular reminders and requests for account payment. - No sales to overdue debtors - Close accounts of long overdue debtors. (4) 4.3.2 Explain the difference betweenCredit Terms and Credit Limit. Credit terms The terms offered by the seller to the buyer for the maximum time allowed for repayment Credit limit A maximum amount allowed to buy on credit (4) Page 7 of 9

Downloaded from hlayiso.com Accounting Grade 10 NW/ June2017 QUESTION 5 VAT 5.1 Define the following concepts: 5.1.1 Value Added Tax Value Added Tax is tax that is collected by the seller from the customers and (2) paid over to South African Revenue Services (SARS). √√ 5.1.2 VAT- exempted items VAT- exempted Items are items on which no VAT is levied.√√ (2) 5.1.3 Zero-rated items Zero rated items are basic products on which VAT is charged at zero percent (2) (0%). √√ 5.3 List THREE zero-rated items from the above information Cooking oil√ Rice√ (3) Sugar beans√ 5.4 What is the current rate of VAT in South Africa? 14%√√ (2) 5.5 Is it ethical for Zico Traders to charge VAT on zero rated items? Explain No√ (3) The law does not allow a registered VAT vendor to charge VAT on zero rated items.√√ 5.5 SIS B`S OUTFITTERS DEBTORS LEDGER – FEBRUARY 2017 Date Details Folio Debit Credit Balance Feb 2017 1 Balance b/d 2 000 3 Inv no C05 DJ 300 2 300 8 Inv no C31 DJ 600 2 900 9 C/N no B29 DAJ 150 2 750 15 Rec no R25 CRJ 1 000 1 750 Discount allowed CRJ 25 1 725 19 Inv no C53 DJ 550 2 275 21 Rec no R31 CRJ 700 1 575 25 Inv no C65 DJ 525 2 100 26 R/d chegue CPJ 700 2 800 Page 8 of 9

Downloaded from hlayiso.com Accounting Grade 10 NW/ June2017 (20) NOTE: The method mark of the balance column, debit entry added and credit entry subtracted. QUESTION 6 SALARIES AND WAGES 6.1.1 Calculate the gross wage for the week ending 30 March 2017 (5) 40 X 160 = 6 400√√ 6 X 230 = 1 380√√ R 7 780 6.1.2 How much has it cost Ditebogo Clothing in total to employ Jane Menoe for the week ended 30 March 2014? (4) R7 780 + R621√ + R1 260√ =R9 661 6.2 Eva Visser has recently started working as a bookkeeper and has been placed on the following salary scale: R360 000 x 54 000 – 522 000 x 90 000 – 702 000 x 109 800 – 811 800. 6.2.1 What will Eva’s monthly gross salary be when she starts working? (2) R360 000/ 12 = R30 000√√ 6.2.2 What will Eva earn per month in her fourth year of working? (5) R360 000 + R54 000√ + R54 000√ + R54 000√= R522 000 R522 000√ /12 = R43 500 TOTAL: 300 Page 9 of 9