Accounting Grade 12 Eastern Cape Mock 2017 Addendum (Eng)

Downloaded from hlayiso.com Name: NATIONAL SENIOR CERTIFICATE GRADE 12 SEPTEMBER 2017 ACCOUNTING ANSWER BOOK MARKS MODERATED QUESTION MAX MARKS OBTAINED MARKS 1 40 2 40 3 50 4 70 5 60 6 40 300 This answer book consists of 16 pages. *ACABE*

Downloaded from hlayiso.com 2 ACCOUNTING (Answer Book) (EC/SEPTEMBER 2017) QUESTION 1: RECONCILIATIONS 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 1.1.4 4 1.2 DEBTORS RECONCILIATION 1.2.1 Calculate the correct Debtors Control balance on 30 June 2017. 74 600 4 1.2.2 Calculate the balances for the following debtors: DEBTOR WORKINGS BALANCE Pillai Tele Botha 12 1.2.3 Calculate the percentage of debtors that are not complying with the 30 days credit terms. 3 Explain TWO internal control measures that JT Traders can use to ensure that only reliable clients are granted credit. 4 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/SEPTEMBER 2017) ACCOUNTING (Answer Book) 3 1.3 CREDITORS RECONCILIATION CREDITOR’S LEDGER NO. STATEMENT BALANCE ACCOUNT BALANCE Balance 35 000 38 420 (i) (ii) (iii) (iv) (v) (vi) TOTAL 13 Q1: TOTAL MARKS 40 Copyright reserved Please turn over

Downloaded from hlayiso.com 4 ACCOUNTING (Answer Book) (EC/SEPTEMBER 2017) QUESTION 2: INVENTORY VALUATION 2.1. 2.1.1 2.1.2 2.1.3 2.1.4 2.1.5 5 2.2 COMRADES LTD 2.2.1 Calculate the selling price per unit for tracksuits. 2 2.2.2 Calculate the cost of sales of tracksuits using the FIFO method. 7 2.2.3 Calculate the turnover rate of tracksuits (use the average stock). 5 2.2.4 It was discovered that vests were missing from the June 2016 delivery. Calculate the number and value of the vests missing. NUMBER MISSING: VALUE: 7 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/SEPTEMBER 2017) ACCOUNTING (Answer Book) 5 2.2.5 Calculate the Gross Profit made by the vests department. Note that this department uses the weighted average method to value stock. 8 2.2.6 Identify TWO problems other than the missing vests in the VESTS department. Quote figures. In each case, provide a solution to the problem. PROBLEM SOLUTION / ADVICE Problem 1: Problem 2: 6 Q2: TOTAL MARKS 40 Copyright reserved Please turn over

Downloaded from hlayiso.com 6 ACCOUNTING (Answer Book) (EC/SEPTEMBER 2017) QUESTION 3: COMPANY FINANCIAL STATEMENTS 3.1 3.1.1 3.1.2 3.1.3 3 3.2 RUHI LTD 3.2.1 RETAINED INCOME Balance on 1 March 2016 Ordinary share dividends Balance on 28 February 2017 10 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/SEPTEMBER 2017) ACCOUNTING (Answer Book) 7 3.2.2 BALANCE SHEET AS AT 28 FEBRUARY 2017 ASSETS Non-current assets Fixed assets 4 060 545 Current assets Cash and cash equivalents TOTAL ASSETS EQUITY AND LIABILITIES Shareholders’ equity Non-current liabilities Current liabilities 592 970 Trade and other payables 231 920 TOTAL EQUITY AND LIABILITIES 5 200 000 26 Copyright reserved Please turn over

Downloaded from hlayiso.com 8 ACCOUNTING (Answer Book) (EC/SEPTEMBER 2017) 3.2.3 Do a calculation to show the number of shares that Bakkies must buy, to gain control of the company. 5 Bakkies wants to buy the shares at the current net asset value without advertising them to the public. As an existing shareholder, why would you not be satisfied with this arrangement? Explain. Provide TWO points. 4 3.2.4 Ruhi Ltd is planning to spend R300 000 on staff development and training over the next two years. How will this expense be explained (disclosed) in the published annual report? Give TWO points. 2 Q3: TOTAL MARKS 50 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/SEPTEMBER 2017) ACCOUNTING (Answer Book) 9 QUESTION 4: FINANCIAL STATEMENTS, CASH FLOW AND INTERPRETATION 4.1 CONCEPTS: MATCHING 4.1.1 4.1.2 4.1.3 3 4.2 MANI LTD 4.2.1 SHARE CAPITAL Authorised share capital 1 200 000 ordinary shares Issued share capital 800 000 Shares repurchased (ASP: R ________ ) 10 4.2.2 Amounts for the Cash Flow Statement. (Final answer must indicate INFLOW or OUTFLOW of cash) WORKINGS ANSWER Dividends paid 4 Income tax paid 4 Change in investment 2 Change in loans 2 Copyright reserved Please turn over

Downloaded from hlayiso.com 10 ACCOUNTING (Answer Book) (EC/SEPTEMBER 2017) 4.2.3 Calculate the cost of the additional equipment purchased. 6 4.2.4 NET CHANGE IN CASH AND CASH EQUIVALENTS 5 4.2.5 Calculate the gross profit percentage (mark-up percentage) 4 Calculate the net asset value per share (NAV). 3 Calculate the return on average shareholders’ equity. 6 4.2.6 Were the directors justified in increasing the loan? Explain. Quote TWO relevant financial indicators (with figures) in your answer. YES or NO: _______ Financial Indicators: Explanation: 7 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/SEPTEMBER 2017) ACCOUNTING (Answer Book) 11 4.2.7 Explain why the shareholders are not satisfied with the dividend pay- out policy and their return earned. Quote financial indicators (with figures) in your explanation. Dividend pay-out policy: Return earned: Explanation: 8 4.2.8 Comment on the price paid to repurchase the shares on 31 March 2017. Quote TWO financial indicators (with figures) in your comments. 6 Q4: TOTAL MARKS 70 Copyright reserved Please turn over

Downloaded from hlayiso.com 12 ACCOUNTING (Answer Book) (EC/SEPTEMBER 2017) QUESTION 5: COST ACCOUNTING AND FIXED ASSETS 5.1 5.1.1 5.1.2 5.1.3 3 5.2. TS FINE-WEAR 5.2.1 Direct labour cost 7 5.2.2 WORKINGS ANSWER (a) 4 (b) 9 5.2.3 Factory overhead cost Factory sundry expenses 19 150 12 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/SEPTEMBER 2017) ACCOUNTING (Answer Book) 13 5.2.4 Calculate: Cost of sales 5 5.3 PASS MANUFACTURERS 5.3.1 Do a calculation to prove that the break-even point for jackets in 2017 is correct. 4 5.3.2 Comment on the break-even points and the level of production for both products. Quote figures. Jackets: Caps: 4 5.3.3 Calculate the percentage increase in the selling price. 4 Provide ONE reason why the owner felt it necessary to increase the selling price. 2 Copyright reserved Please turn over

Downloaded from hlayiso.com 14 ACCOUNTING (Answer Book) (EC/SEPTEMBER 2017) 5.3.4 COST IDENTIFIED ADVICE OR SOLUTION (with figures) Cost: Jackets Cost: Caps 6 Q5: TOTAL MARKS 60 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/SEPTEMBER 2017) ACCOUNTING (Answer Book) 15 QUESTION 6: BUDGETING 6.1 Explain why: 6.1.1 Depreciation and bad debts will not appear in a Cash Budget. 2 6.1.2 A cash budget is different from a Projected Income Statement. 2 6.2 KWT DISTRIBUTORS LTD 6.2.1 MONTHS CREDIT SALES NOVEMBER DECEMBER September 180 000 October 186 000 55 800 November 92 625 December 210 000 Total collection from debtors 12 6.2.2 Calculate: WORKINGS ANSWER (i) Cash sales for December: 2 (ii) Rent income amount for November: 3 (iii) Payments to creditors for November: 6 (iv) Salaries and wages for December: 4 (v) Loan instalment (including interest) for December: 5 Copyright reserved Please turn over

Downloaded from hlayiso.com 16 ACCOUNTING (Answer Book) (EC/SEPTEMBER 2017) 6.2.3 Comment on the internal control regarding the collection from debtors and the payment to creditors. Provide TWO points. 4 Q6: TOTAL MARKS 40 TOTAL: 300 Copyright reserved Please turn over