Accounting Grade 10 North West June 2019 Question Paper

Downloaded from hlayiso.com PROVINCIAL ASSESSMENT GRADE 10 11 ACCOUNTING JUNE 2019 MARKS: 200 DATE : JUNE 2019 TIME: 2 hours This question paper consists of 9 pages and formula sheet an answer book of 9 pages. Demo NW/JUNE/ACCNG/ EMIS/6*******

Downloaded from hlayiso.com 2 GRADE 10 ACCOUNTING JUNE EXAMINATION - 2019 Instructions to learners: 1. Answer ALL questions in the special Answer Book provided. 2. Read the instructions carefully and answer them precisely. 3. Where relevant, show all workings to earn part-marks. 4. You may use a black/blue ink or a dark pencil. Write neatly and legibly. 5. Ensure that you have your own non-programmable calculator. 6. The paper consist of 6 compulsory questions. Try to manage your time as per the suggested time guide per question. QUESTION 1: 65 marks; 40 minutes Topic of the question: This question integrates: Financial accounting Concepts, analysis and General Concepts Ledger Accounting equation Ledger accounts QUESTION 2: 40 marks; 25 minutes Topic of the question: This question integrates: Financial accounting Concepts Credit transactions Debtors Ledger account Creditor Ledger account QUESTION 3: 40 marks; 25 minutes Topic of the question: This question integrates: Financial accounting Salaries and wages Calculations Salaries and wages QUESTION 4: 44 marks; 25 minutes Topic of the question: This question integrates: Financial accounting Concepts Sole trader Journal adjustments Ethics and internal control QUESTION 5: 11 marks; 05 minutes Topic of the question: This question integrates: Managerial accounting VAT VAT Demo NW/JUNE/ACCNG/ EMIS/6*******

Downloaded from hlayiso.com 3 GRADE 10 ACCOUNTING JUNE EXAMINATION - 2019 QUESTION 1: Concepts, Analysis and General Ledger (65 marks; 40 minutes) 1.1 Match the source document in Column A with a description provided in Column B. Write the letter (A – E) next to each number (1.1.1 – 1.1.5) in the Answer Book. COLUMN A COLUMN B 1.1.1 Cheque counterfoil A. This is the business’ record of the sale of goods on credit to a debtor. 1.1.2 Authorisation voucher B. This shows that the monthly rent from the tenant was collected. 1.1.3 Receipt C. This will indicate the amount paid to settle the telephone account 1.1.4 Original invoice D. Issued by the manager so that an entry for bad debts can be made. 1.1.5 Duplicate invoice E. Received from a creditor for the purchase of goods on credit. (5) 1.2 Analyse the following transactions according to the headings on the table provided. Assume that the Bank balance is favourable for all transactions. Transactions for August 2018: 1.2.1 Received a cheque from C. Claren for the monthly rent, R4 680. 1.2.2 Received R220 000 from VBS Bank being a mortgage loan at 12% p.a. interest. 1.2.3 Bought cleaning detergents for R210 and paid from petty cash. 1.2.4 A cheque for R760 received from a debtor as a part payment of her account was returned by the bank marked “R/D – insufficient funds”. 1.2.5 Received stationery purchased together with credit invoice for R2 180, from Bunty Suppliers. (20) 1.3 The following information appeared in the books of Rufas Stores for July 2018. All goods are sold at a profit mark-up of 60% on cost. REQUIRED: 1.3.1 Calculate the missing amounts denoted by (a) to (d). (12) 1.3.2 Post to the following accounts in the General Ledger:  Bank (8)  Debtors Control (13)  Cost of Sales (7) Demo NW/JUNE/ACCNG/ EMIS/6*******

Downloaded from hlayiso.com 4 GRADE 10 ACCOUNTING JUNE EXAMINATION - 2019 INFORMATION: A. Balances and totals on 1 July 2018: Bank Debit R23 500 Debtors Control R35 380 Cost of sales R56 120 B. Totals from the journals on 31 July 2018: Note that the profit mark-up is 60% on cost. Cash Receipts Journal DEBTORS CONTROL COST OF SUNDRY BANK SALES DISCOUNT SALES RECEIPTS ACCOUNTS ALLOWED 96 500 57 280 (a) (b) 3 220 15 000 Cash Payments Journal CREDITORS CONTROL TRADING STATIO- SUNDRY BANK DISCOUNT STOCK NERY PAYMENTS ACCOUNTS RECEIVED (c) 42 400 3 400 28 900 3 680 18 500 Debtors Journal Debtors Allowances Journal COST OF DEBTORS COST OF SALES SALES ALLOWANCES SALES (d) 14 200 3 100 1 120 General Journal GENERAL LEDGER DEBTORS LEDGER CREDITORS LEDGER DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT 12 000 7 500 3 000 1 200 2 500 8 800 65 Demo NW/JUNE/ACCNG/ EMIS/6*******

Downloaded from hlayiso.com 5 GRADE 10 ACCOUNTING JUNE EXAMINATION - 2019 QUESTION 2: Credit Transactions (40 marks; 25 minutes) 2.1 Answer the following questions regarding credit sales: 2.1.1 List TWO advantages for the business when goods are sold on credit. (4) 2.1.2 Before granting credit the business must obtain the correct address and contact details of the applicant. Provide TWO other vital information that must be checked before allowing anyone to buy goods on credit. (4) 2.1.3 Once credit has been granted, how can the business ensure that debtors pay their account on time? Provide TWO points. (4) 2.2 The following Debtors Ledger account appeared in the books of the FIVE Traders. Study the account and answer the questions. FRANK THULO (DL6) DATE DETAILS FOL DEBIT CREDIT BALANCE 2017 Sept 1 Account rendered b/d ? 5 Invoice No. x23 DJ3 4 380 17 490 7 Credit Note No. 11 ? 520 16 970 10 ? No. 76 CRJ3 4 500 12 470 Discount allowed CRJ3 225 12 245 15 Invoice No. x56 DJ3 3 755 16 000 21 Interest/Receipts ? 50 ? Questions: 2.2.1 Provide the folio reference for the transaction on the 7 th and the 21st. (2) 2.2.2 Provide the detail for the transaction on the 10th. (1) 2.2.3 Calculate the amount owed by F. Thulo on 1 September 2018. (3) 2.2.4 Calculate the percentage discount granted when R4 500 was received. (4) 2.2.5 Comment on the entry for Interest on the 21st. Calculate the final balance. (6) 2.3 The incomplete Creditors Ledger account of Marang Suppliers is provided. Complete the account by filling in the missing details. (12) MARANG SUPPLIERS (CL8) DATE DETAILS FOL DEBIT CREDIT BALANCE 2018 Sept 1 Account rendered b/d 12 840 6 CJ3 19 680 14 17 850 22 Cheque No. 2211 7 500 25  Unsatisfactory goods purchased on 6th was returned on 14th.  Trading goods purchased on the 25th was subject to a 5% trade discount. Invoice total before the trade discount amounted to R8 200. 40 Demo NW/JUNE/ACCNG/ EMIS/6*******

Downloaded from hlayiso.com 6 GRADE 10 ACCOUNTING JUNE EXAMINATION - 2019 QUESTION 3: Salaries and Wages (40 marks; 25 minutes) 3.1 Calculating Wages C. Mogale works in Marry Marie Ltd, a chocolate factory. REQUIRED: 3.1.1 Calculate Mogale’s net wage for the week. Show all workings. (15) 3.1.2 Calculate the amount due to the SIZWE Medical on behalf of C. Mogale for the week ending 28 October 2018. (5) 3.1.3 Complete the posting to the CF Pension Fund account in the General Ledger. Take into account that a cheque to settle the amount due was issued on the 21 October 2018. (8) INFORMATION: Details of C. Mogale for the week ending 28 October 2018. C. Mogale - Normal time Normal time rate Overtime rate Hours worked (hours per week) (per hour) (per hour) for the week 52 40 R78,50 R117,50 Employee Employer’s contribution deductions SARS – PAYE 18 % of gross - CF Pension 8 % of basic 10% of basic Fund GW Medical aid R320 R1,20 for every R1 Unemployment 1% of basic 1% of basic Insurance Staff Fund R12 per week - Skills - 1% of basic Development 3.2 Analysing Salary Information The salary information of Piet Molotsi, a sales assistant, is presented below. REQUIRED: 3.2.1 Calculate Piet’s basic monthly salary in his first year of employment? (3) 3.2.2 Piet receives a sales commission of 4% of the monthly sales. Calculate the total sales amount for October 2017. (4) 3.2.3 Calculate the total amount that the business pays with regards to Piet’s employment (including his gross salary). (5) Demo NW/JUNE/ACCNG/ EMIS/6*******

Downloaded from hlayiso.com 7 GRADE 10 ACCOUNTING JUNE EXAMINATION - 2019 INFORMATION: A. Piet’s salary scale: 117 600 x 8 160 – 142 080 x 12 240 – 166 560 B. Information from Piet’s October salary advice: Basic monthly salary R11 160 Sales commission R4 240 Total deductions from employee’s salary R5 120 Net salary R10 280 Employer’s contributions R6 200 Total cost to business ? 40 QUESTION 4: Sole Trader (44 marks; 25 minutes) 4.1 Choose the correct word/s that best describe each statement below. Write the word/s only, next to each number (4.1.1 – 4.1.5) in the Answer Book. CAPITAL ; DRAWINGS ; CURRENT LIABILITY ; DEBTORS CONTROL ; CREDITORS ; NON-CURRENT ASSETS; OPERATING PROFIT 4.1.1 The owner uses a business cheque to pay his personal insurance expense. 4.1.2 Represents a current asset to the business as money is receivable. 4.1.3 Equipment purchased for use in the business. 4.1.4 Amount due to creditors for purchase of trading stock. 4.1.5 The owner invests additional funds to run the business. (5) 4.2 Ben Traders The information below relates to Ben Traders for the financial year ended 28 February 2019. REQUIRED: 4.2.1 Prepare General Journal entries to take into account adjustments (i) to (v). (21) Demo NW/JUNE/ACCNG/ EMIS/6*******

Downloaded from hlayiso.com 8 GRADE 10 ACCOUNTING JUNE EXAMINATION - 2019 INFORMATION: A. Information extracted from the Pre-Adjustment Trial Balance on 28 February 2019: Fixed Deposit: Trust Bank (9%p.a.) 320 000 Rent income 99 450 Interest on fixed deposit 21 600 Telephone 18 880 Water and electricity 17 300 Insurance 15 160 B. Adjustments and additional information: (i) The February 2019 telephone account of R1 820 was received but it was not yet paid. (ii) The rent for March 2019 was received and deposited. (iii) An additional fire insurance policy was taken out on 1 January 2019. A cheque for R3 240 to cover the premiums for six months commencing 1 January 2019 was paid. (iv) Interest on fixed deposit for the last quarter of this financial year was not yet received. 4.3 INTERNAL CONTROL (10) Melt Masuku owns a gift shop. He has the following two problems in his business:  Stock is going missing from the shop. He suspects that either the customers or his employees are stealing stock from her shop.  Although Melt puts a fixed amount of R500 in the petty cash every month as an imprest amount, there is never enough money available to make small payments. The petty cashier assured him that the petty cash box is physically safeguarded against theft. Fridah could, however, not explain to Melt what happened to the money. List the main internal control measures that Melt Masuku should apply in his business to: 4.3.1 Solve the stock problem (THREE points) (6) 4.3.2 Solve the petty cash problem (TWO points) (4) Demo NW/JUNE/ACCNG/ EMIS/6*******

Downloaded from hlayiso.com 9 GRADE 10 ACCOUNTING JUNE EXAMINATION - 2019 4.4 Ethics (8 marks; 8 minutes) Code of ethics is a set of rules which governs the financial activities of a business. You have started your own business and have decided on three people you wish to employ. You would like to motivate them to be conscientious and loyal employees who carry out their tasks in a way you would like them to. REQUIRED: 4.4.1 Why you think it is necessary to have a Code of Ethics. (2) 4.4.2 Outline THREE principles of ethical behaviour that you expect them to adhere to. (6) QUESTION 5: VAT ( 11 marks; 05 minutes) 5.1 Calculate the VAT amount for the following: Note that the standard VAT rate is 15%. (a) Invoice total inclusive of VAT, R10 925 (VAT exclusive amount, R9 500). (b) Invoice total : R142 800 (excluding VAT) (c) Invoice total : R140 676 (inclusive of VAT) (7) 5.2. B. Lentswe (the local grocer) has set his till to charge VAT on all sales at 15%. Do you agree with this practice? Explain. (4) TOTAL: 200 Demo NW/JUNE/ACCNG/ EMIS/6*******