Accounting Grade 12 Eastern Cape Mock 2018 QP (Eng)

Downloaded from hlayiso.com Name: NATIONAL SENIOR CERTIFICATE GRADE 12 SEPTEMBER 2018 ACCOUNTING ANSWER BOOK MARKS MODERATED QUESTION MAX MARKS OBTAINED MARKS 1 45 2 40 3 75 4 65 5 45 6 30 300 This answer book consists of 16 pages. *ACABE*

Downloaded from hlayiso.com 2 ACCOUNTING (ANSWER BOOK) (EC/SEPTEMBER 2018) QUESTION 1: COST ACCOUNTING 1.1 Choose the correct answer from the words provided within brackets. Write only the answer, next to each number. 1.1.1 1.1.2 1.1.3 3 1.2 LOLO MANUFACTURERS 1.2.1 Calculate the cost of the raw materials issued to the factory during the financial year. 8 1.2.2 Calculate: Direct Labour Cost 7 Calculate: Factory Overhead Cost Factory sundry expenses 89 910 5 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/SEPTEMBER 2018) ACCOUNTING (ANSWER BOOK) 3 1.2.3 PRODUCTION COST STATEMENT ON 28 FEBRUARY 2018 Prime cost Total manufacturing cost Work-in-process (opening balance) 30 000 Total cost of production of finished goods 11 Copyright reserved Please turn over

Downloaded from hlayiso.com 4 ACCOUNTING (ANSWER BOOK) (EC/SEPTEMBER 2018) 1.3 GRENS BAKERY 1.3.1 Calculate the break-even point for 2018. 4 1.3.2 Explain whether Sydney should be concerned about the break-even point and the level of production. Quote figures. 3 1.3.3 Give a possible reason for the change in unit costs of direct material and of direct labour. REASON: DIRECT MATERIAL COST REASON: DIRECT LABOUR COST 4 Q1: TOTAL MARKS 45 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/SEPTEMBER 2018) ACCOUNTING (ANSWER BOOK) 5 QUESTION 2: BUDGETING 2.1. TRUE OR FALSE 2.1.1 2.1.2 2.1.3 3 2.2 BANYAMA LTD 2.2.1 DEBTORS COLLECTION SCHEDULE MONTHS CREDIT SALES AUGUST SEPTEMBER July 157 500 94 500 August CASH FROM DEBTORS 7 2.2.2 WORKINGS ANSWER (i) (ii) (iii) (iv) (v) (vi) 19 Copyright reserved Please turn over

Downloaded from hlayiso.com 6 ACCOUNTING (ANSWER BOOK) (EC/SEPTEMBER 2018) 2.2.3 Refer to Information J: Calculate the percentage increase in the manager’s salary. 4 Comment on whether the salary and wage decision was justified. Quote figures. 3 Provide TWO possible consequences of this decision. 4 Q2: TOTAL MARKS 40 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/SEPTEMBER 2018) ACCOUNTING (ANSWER BOOK) 7 QUESTION 3: FIXED ASSETS, INCOME STATEMENT AND AUDIT REPORT 3.1 3.1.1 3.1.2 3.1.3 3.1.4 4 3.2 YASHPAL LTD 3.2.1 Refer to Information A: WORKINGS ANSWER (i) (ii) (iii) 11 3.2.2 ASSET DISPOSAL (N12)           5 Copyright reserved Please turn over

Downloaded from hlayiso.com 8 ACCOUNTING (ANSWER BOOK) (EC/SEPTEMBER 2018) 3.2.3 Income Statement for the year ended 28 February 2018 Sales Cost of sales Gross profit Other income Fee income 79 350 Gross income Operating expenses Operating profit Profit before interest expense Net profit before income tax Income tax Net profit after tax 46 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/SEPTEMBER 2018) ACCOUNTING (ANSWER BOOK) 9 3.3 AUDIT REPORT: PICOLI LTD 3.3.1 Briefly explain the role of the external auditor. 2 3.3.2 What type of audit report did Picoli Ltd receive? Explain. TYPE: EXPLANATION: 3 3.3.3 Why would an existing shareholder be concerned about this report? Provide TWO points. 4 Q3: TOTAL MARKS 75 Copyright reserved Please turn over

Downloaded from hlayiso.com 10 ACCOUNTING (ANSWER BOOK) (EC/SEPTEMBER 2018) QUESTION 4: FINANCIAL STATEMENTS, CASH FLOW AND INTERPRETATION 4.1 CONCEPTS: MATCHING 4.1.1 4.1.2 4.1.3 4.1.4 4.1.5 5 4.2 KHLOE LTD 4.2.1 Net profit before income tax 988 700 Adjustments for: Interest expense 124 900 Changes in working capital CASH GENERATED FROM OPERATIONS 9 4.2.2 Amounts for the Cash Flow Statement. WORKINGS ANSWER Income tax paid 4 Dividends paid 4 Fixed assets purchased 5 4.2.3 Calculate: Net change in cash and cash equivalents 4 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/SEPTEMBER 2018) ACCOUNTING (ANSWER BOOK) 11 4.3 KWEZI LTD 4.3.1 ORDINARY SHARE CAPITAL 760 000 Balance on 1 March 2017 Balance on 28 February 2018 4 291 500 7 4.3.2 Calculate: Net asset value per share 3 Calculate: Return on average shareholders’ equity 5 4.3.3 Quote TWO financial indicators (with figures and trends) that indicate an improvement in the liquidity position of the business. 4 4.3.4 The company paid back a large portion of the loan. Explain why this was a good decision. Quote TWO financial indicators (with figures). 6 Copyright reserved Please turn over

Downloaded from hlayiso.com 12 ACCOUNTING (ANSWER BOOK) (EC/SEPTEMBER 2018) 4.3.5 Comment on the dividend pay-out policy over the past two years. Provide a possible reason for the policy adopted. Quote figures. 5 4.3.6 Explain whether the price paid for the share buy-back was fair. Quote TWO financial indicators (with figures) in your explanation. 4 Q4: TOTAL MARKS 65 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/SEPTEMBER 2018) ACCOUNTING (ANSWER BOOK) 13 QUESTION 5: INVENTORY VALUATION 5.1 5.1.1 5.1.2 5.1.3 3 5.2. CASUAL OUTFITTERS 5.2.1 Calculate: The amount paid for carriage on 11 June 2018 4 Calculate: The value of the closing stock on 30 June 2018 9 5.2.2 Explain the effect that this decision will have on the gross profit. 2 Give ONE valid reason for and ONE valid reason against changing the stock valuation method. REASON FOR REASON AGAINST 4 Copyright reserved Please turn over

Downloaded from hlayiso.com 14 ACCOUNTING (ANSWER BOOK) (EC/SEPTEMBER 2018) 5.2.3 Funiwe is concerned about the control of her stock of jeans. She has sold 1 788 pairs of jeans during the year. Provide a calculation to support her concern. 5 5.2.4 Comment on the stock balance on 30 June 2018. Is this appropriate? Explain. Provide ONE point. 3 5.3 PROBLEM-SOLVING 5.3.1 What decision did Jay take regarding the selling price of the desks? 3 Explain TWO points on how this decision has affected the business. 6 5.3.2 Jay decided to buy his chairs from a cheaper supplier. Provide TWO points on why you feel that this was NOT a good decision. 6 Q5: TOTAL MARKS 45 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/SEPTEMBER 2018) ACCOUNTING (ANSWER BOOK) 15 QUESTION 6: RECONCILIATION AND VAT 6.1.1 CREDITOR’S LEDGER NO. STATEMENT BALANCE ACCOUNT BALANCE Balance 95 160 143 460 (i) (ii) (iii) (iv) (v) (vi) (vii) TOTAL 11 6.1.2 Refer to Information (vi): Provide TWO possible actions that can be taken against M. Rice. 4 Explain TWO internal control measures that the business can use to prevent such incidents in future. 4 Copyright reserved Please turn over

Downloaded from hlayiso.com 16 ACCOUNTING (ANSWER BOOK) (EC/SEPTEMBER 2018) 6.2 VAT Calculate the final amount payable to SARS on 31 July 2018. 11 Q6: TOTAL MARKS 30 TOTAL: 300 Copyright reserved Please turn over