Accounting Grade 10 SEPT 2022 QP and Memo

Downloaded from Stanmorephysics.com % ; KWAZULU-NATAL PROVINCE m1. EDUCATION REPUBLIC OF SOUTH AFRICA NATIONAL SENIOR CERTIFICATE ACCOUNTING SEPTEMBER 2022 COMMON TEST MARKS: 100 TIME : 1% HOURS This paper consists of 8 pages, 1 formula sheet and the answer booklet of 7 pages.

Accounting Sorpreay aay (rani WS tanmdgephysics. caren” 2022 Common Test INSTRUCTIONS AND INFORMATION 1. You are provided with a question paper and an ANSWER BOOK. This question paper comprises THREE compulsory questions. Answer ALL the questions. Use the format provided in the answer book in order to reflect your answers. Where applicable-workings must be shown in order to achieve part-marks. Non-programmable calculators may be used. Round off to ONE deci. place where necessary. rey You may use dark pencil or blue/black ink to answer the suenefo" Use the information in the table, below, as a guide when secs the question paper. Try NOT to deviate from it. ob QUESTION | TOPICS (~ (LMARKS_[ MINUTES 1 Statement of Comprehensive In and Tangible/ Fixed Assets Note - 60 54 2 & Ratio Calculations x 20 18 3 Interpretation of mines won Information 20 18 TOTAL rit 100 90 Copyright Reserved Please Turn Over

“‘POWhCATeN "FGF S'anmorephysics.. com Sertember 2022 Common Test QUESTION 1 (60 Marks; 54 Minutes) SOLE TRADER: STATEMENT OF COMPREHENSIVE INCOME AND NOTES Use the following information from Mere Traders for the financial year ending on 28 February 2022. The business is owned by Andile Ndlovu. REQUIRED: 1.1. Prepare the Income Statement/Statement of Comprehensive Income for the year ended 28 February 2022. (43) 1.2. Calculate the missing figures in the Tangible/ Fixed Assets Note denoted by letters A — D by using information no.9. «@ 1@) INFORMATION: G PRE-ADJUSTMENT TRIAL BALANCE OF MERC TRADERS O oS: 28 FEBRUARY 2022. A Balance sheet accounts section Debits Credits Capital WS 1 200 000 Drawings 68 000 Mortgage loan: Mondlo Bank ¢ as 207 600 Land and buildings at cost 1.160 000 Equipment at cost aS 260 000 Accumulated depreciation on equipment(1 March 2021) 69 200 Vehicles at cost & 560 000 Accumulated depreciation on vehicles (1 March 2021) 112 000 Fixed deposit: Juju Bank (8% p.a.) AN 48 000 Trading stock Oo" 88 000 Debtors control aN 84 600 Bank BN 60 200 Creditors contro! WA 85 200 Nominal accounts section Sales Ain 1792 840 Cost of sales ANS) 840 000 Debtors allowances. * 21 840 Salaries and wages 187 000 Insurance (\~ 25 000 Bad debts 17 600 Stationery 28 640 Telephone 42 900 Bank charges 22 800 Rent income 66 800 Packing materials 40 000 Advertising 11 280 Commission income 30 620 Interest on fixed deposit 1600 3 565 860 | 3 565 360 Copyright Reserved Please Turn Over

AccoumoninloeRd eet Fresh 9S tanmdyephysics. c6Aie* 222 Common Test Additional information and adjustments: 1. Received 40 cents in the rand from the insolvent estate of Shukela Gumede, a debtor who owed R 1 600.The remainder must be written off. No entries have as yet been made. 2. The telephone account for February 2022, R1 830, was still outstanding. 3. The rent for March 2022 has already been received. The rent was increased by R600 per month with effect from 1 January 2022. 4. The loan statement received reflected the following: Balance on 1 March 2021 300 000 Repayments during the financial year (including 92 400 interest) Interest capitalized ? Balance on 28 February 2022 234 600 Provide for the interest on loan. 5. Insurance includes an amount of R1 920 paid for the period 1 January 2022 to 30 June 2022. 6. Provide for the outstanding interest on the fixed deposit. 7. There was a fire in the business on 20 February 2022 and merchandise was damaged. The insurance company has agreed to pay only 80% of the claim as the goods were under-insured. Their settlement EFT of R12 800 was received and recorded. No entries have as yet been made for the loss. 8. Stocks on hand on 28 February 2022 as per stock sheets: e Trading stock, R71 000 e Packing materials, R950 Copyright Reserved Please Turn Over

‘POWHLAE FSA'S anmorefbysics.. com Sertember 2022 Common Test 9. Fixed/ Tangible Assets Note for the year ended February 2022. FIXED/TANGIBLE ASSETS Equipment Vehicles Carrying value at beginning of : c A 560 000 (69 200) (112 000) year(1/03/2021) Cost Accumulated depreciation Movements Additions at cost Depreciation Carrying value at end of year (28/02/2022) Cost Accumulated depreciation 260 000 Provide for depreciation as follows: e On vehicles at 25% p.a. on cost. + On equipment at 20% p.a. on diminishing balance method. NOTE: Additional equipment with a total cost of R24 800 was purchased on 1 September 2021. This transaction was recorded and therefore included in the equipment balance above. Copyright Reserved Please Turn Over an

AccouionanoeRd eat Frege 9S tanmdrephysics. copie" 2022 Common Test QUESTION 2 RATIO CALCULATIONS The following information was extracted from the accounting records of (20 Marks; 18 Minutes) Manchester Traders the business owned by S. Mhlanga which is selling school uniform in Dumbe Area. REQUIRED: 2.1. Calculate the following ratios/financial indicators for the year ended 30 June 2019. Show all calculations to the nearest two decimal points. Solvency ratio Current ratio Acid test ratio Return on average owner's equity Operating expenses on sales NNNNN bin ii mb WN — INFORMATION: 1. Extract from the Statement of Comprehensive Income for the year ended 30 June 2022: Sales 1 875 000 Cost of sales 1 118 750 Operating expenses 700 000 Net profit 525 000 2. Extract from the Statement of Financial Position as at 30 June : 2022 2021 Fixed/Tangible assets at carrying value 2 250 000 1500 000 Fixed deposit: Betty Bank 150 000 120 000 Current assets 1287 500 880 000 Inventories 300 000 225 000 Trade and other receivable 850 000 565 000 Cash and cash equivalents 137 500 90 000 Owner’s equity 2 500 000 1 475 000 Non current liabilities 818 750 625 000 Current liabilities 368 750 400 000 Copyright Reserved (5) Please Turn Over

Aceon foacied °F FeM* Stanmoréphysics. cones 2022 Common Test QUESTION 3 (20 Marks; 18 Minutes) INTERPRETATION OF FINANCIAL INFORMATION You are provided with information about Punchies Stores for the past two financial years ended 30 September. The business is situated in KZN Pongola and trades in racing bikes. The business is owned by Supota Mbhele. REQUIRED: 2022; 3.2. Comment on the liquidity position of the business, quote TWO financial Indicators to support your comment. What is the decision, quote figures to support your answer? Did the business benefited from that decision explain by mentioning TWO Paints from the question with figures to support your answer. The owner took a decision with regards to selling price/Mark-up of bikes in (3) (6) (6) 3.3. The owner is satisfied with the return he is earning in this business, explain By quoting ONE financial indicator to support your answer. NOTE: Provide figures or financial indicators (ratios or percentages) And comparisons with the previous year to support comments or explanations. INFORMATION FOR THE YEAR ENDED 30 SEPTEMBER: (5) A. FIGURES IDENTIFIED FROM STATEMENT OF COMPREHENSIVE INCOME: 2022 2021 Sales R13 182000} R7 740000 Number of bikes sold 1 750 bikes 900 bikes Mark-up % 58% 72% Cost of sales 8 330 000 4 500 000 Gross profit 4 852 000 3 240 000 Operating expenses 1 900 000 1 500 000 Depreciation 412 000 275 000 Net profit for the year 1.911 000 1 036 000 Copyright Reserved Please Turn Over

Accenpsinafioente csi Pont ‘Stanmorephysics. COBpptember 2022 Common Test NSC B. FINANCIAL INDICATORS: Copyright Reserved 2022 2021 Mark-up % achieved 58% 72% Operating profit on sales 22% 17,5% Net profit on sales 19% 16,2% Operating expenses on sales 12,6% 19,4% Current ratio 2,0:1 2,9:1 Acid-test ratio 1,2:1 0,9:1 Solvency Ratio 3,8:1 3,351 Return on owners equity 20,8% 17,8% Interest(rate) on fixed deposit 12% 12% TOTAL: 100 Please Turn Over

APUWNICATeU FrGHti*Stanmordphysics. conPertember 2022 Common Test Annexure A FORMULA SHEET FOR GRADE 10 Gross profit x100 Gross profit x 100 Net profit x 100 Sales 1 Cost of sales 1 Sales 1 Operating expensesx100 Operating profit x 100 Sales 1 Sales 1 Current assets : Current liabilities Current Assets - Inventory : Current liabilities Net profit x 100 Total assets : Total liabilities Average equity 1 Copyright Reserved

iyjloaded from Stanmorephysics.com KWAZULU-NATAL PROVINCE f EDUCATION " REPUBLIC OF SOUTH AFRICA ACCOUNTING SPECIAL ANSWER BOOK SEPTEMBER 2022 COMMON TEST NATIONAL SENIOR CERTIFICATE GRADE 10 Name: Grade: Learners | Moderators Question Topic Mark Mark Statement of Comprehensive Income and Tangible Assets Note 2 Ratio Calculations 1 Interpretation of Financial Statements TOTAL 3 N.B. This Special Answer Book consists of 7 pages.

Accounting (ePoaded from Stanmagephysics. comSeremet 2022 Common Test QUESTION 1 4.1. STATEMENT OF COMPREHENSIVE INCOME OF MERCTRADERS FOR THE YEAR ENDED 28 FEBRUARY 2022 Sales Cost of sales Gross profit Other operating income | Gross operating income Operating expenses ae Operating profit Interest income Profit before interest expense Interest expense Net profit for the year 43 Copyright Reserved Please Turn Over

Accountpssqiffoduied from Stanmoreghysics.com September 2022 Common Test 12 WORKINGS ANSWER (A) (B) (C) (D) 17 Copyright Reserved Please Turn Over WT

Accounting (Wrage Qaded From Stanmoyéphysics. com September 2022 Common Test QUESTION 2 2.1.1. Solvency Ratio 2.1.2. Current Ratio 2.1.3. Acid test ratio 2.1.4. Return on average owner’s equity Copyright Reserved Please Turn Over

AccountPoprnDated from Stanmoreghysics.com SePtember 2022 Common Test 2.1.5. Operating expenses on sales Copyright Reserved Please Turn Over

Accounting Bawienkoaded from Stanmorephysics. COM September 2022 Common Test NS QUESTION 3 3.1. | The owner took a decision with regards to selling price/Mark-up of bikes in 2022; What is the decision, quote figures to support your answer? * Did the business benefited from that decision explain by mentioning TWO Points from the question with figures to support your answer. Decision Explanation TWO Points 3.2. Comment on the liquidity position of the business, quote TWO financial Indicators to support your comment. Copyright Reserved Please Turn Over

AccountipéimnHdided from Stanmorephysics.com SePtember 2022 Common Test 3.35 Thevowner is satisfied with the return he is earning in this business, explain by quoting ONE financial indicator to support your answer. TOTAL MARKS: 100 Copyright Reserved

Downloaded from Stanmorephysics.com KWAZULU-NATAL PROVINCE EDUCATION REPUBLIC OF SOUTH AFRICA GRADE 10 MARKS: 100 MARKING PRINCIPLES: 1. Penalties for foreign items are applied only if the candidate is not losing marks elsewhere in the question for that item (no penalty for misplaced item). No double penalty applied. Full marks for correct answer. If answer incorrect, mark the workings provided. If a pre-adjustment figure is shown as a final figure, allocate the part-mark for the working for that figure (not the method mark for the answer). Unless otherwise indicated, the positive or negative effect of any figure must be considered to award the mark. If no + or — sign or bracket is provided, assume that the figure is positive. Where indicated, part-marks may be awarded to differentiate between differing qualities of answers from candidates. Where penalties are applied, the marks for that section of the question cannot be a final negative. Where method marks are awarded for operation, the marker must inspect the reasonableness of the answer and at least one part must be correct before awarding the mark. Operation means ‘Check operation’. ‘One part correct’ means ‘Operation & one part correct’. Note: Check operation means must be +, -, x, or + per memo, but some items can be + or — such as stock deficit. Be aware of candidates who provide valid alternatives beyond the marking guideline. N.B. This MARKING GUIDELINE consists of 7 pages.

Accountingerase/oaded from Stanmorephysics.com QUESTION 1 September 2022 Common Test 1.1. STATEMENT OF COMPREHENSIVE INCOME OF MERC TRADERS FOR THE YEAR ENDED 28 FEBRUARY 2022 Sales (1 792 840v - 21 840v) M1 771 000 Cost of sales (840 000) v (840 000) Gross profit operation 5 M931 000 Other operating income one part correct M91 820 Commission income(30 620) v30 620 Rent income( 66 800v — 5 600vv) one part correct M61 200 Gross operating income 7 M1 022 820 Operating expenses operation Mi (655 660) Salaries and wages(187 000) ¥187 000 Insurance(25 000v — 1 280v) M23 720 Bad Debts (17 600v + 960v) M18 560 Stationery (28 640) ¥28 640 Telephone (42 900v + 1 830) v44 730 Bank Charges (22 800) ¥22 800 Packing Materials (40 000v—950~) ¥39 050 Advertising (11 280) v11 280 Trading stock deficit (88 000 — 16 000 — 71 000) v1 000 Depreciation see B+D in 1.2 M175 680 Loss due to fire (16 000v — 12 800v) 23 M3 200 | Operating profit 71467 160 Interest income (1 600v + 2 240v)_ M3 840 Profit before interest expense M1471 000 Interest expense v¥(27 000) Net profit for the year 8 71444 000 No panel formisplacement of sltement of comprehensive income items 43 43 Copyright Reserved Please Turn Over

Accountingeidelm@aded From Stanmorephysics.com September 2022 Common Test NS 1.2 WORKINGS ANSWER (ay_ | 260.000 — 24 800v 3 M235 200 One part correct New 24 800v X 20% X 6/12v = 2 480M 3 235 200” — 69 200v= 166 000M X 20% = 33 200M 4 135 680 2 480 + 33 200 1 One part correct 3Marks 4 Marks (©) | 560 ooov — 112 o00v 3 4448 000 One part correct g 7140 000 (D) | 560 000v x 25%v 3 Ononarearea | 37 17 Copyright Reserved Please Turn Over

Accountingewdelanded From Stanmorephysics.com September 2022 Common Test NS QUESTION 2 2.1.1 Solvency Ratio (2 250 000 + 150 000v forboth + 1 287 500v) : (818 750v + 368 750v) 3 687 500: 1 187 500 2Marks == 2 Marks 31:14 2.1.2. Current Ratio 1 287 500v : 368 750v 3,5:14 One part correct 2.1.3. Acid test ratio (1 287 500v — 300 000v) : 368 750” 987 500 : 368 750 2Marks 1 Mark 27:14 One part correct . 2.1.4. Return on average owner’s equity 525 000 v x 100 (1 475 000v + 2 500 000v jiv2 525 000 1mark x 100 1 987 500 3 marks = 26,4%M | One part comect Copyright Reserved Please Turn Over

Accountingeidelm@aded From Stanmorephysics.com September 2022 Common Test NS 2.1.5. Operating expenses on sales 700 000 v x 100 1 875 000 v 37, 3% VM One part correct Copyright Reserved Please Turn Over

Accountingewdelanded From Stanmorephysics.com September 2022 Common Test NS QUESTION 3 3.1. The owner took a decision with regards to selling price/Mark-up of bikes in 2022; e What is the decision, quote figures to support your answer? e Did the business benefited from that decision explain by mentioning TWO Points from the question with figures to support your answer. Decreased mark-up % from 72% - 58% or by 14% Explanation TWO Points (Any TWOv¥ explanations Figures) Sales increased from 7 740 000 — 13 182 000 or by 5 540 000 Number of bikes sold increased from 900 — 1 750 or by 850 Gross profit increased from 3 240 000 — 4 852 000 or by 1 612 000 3.2. Comment on the liquidity position of the business, quote TWO financial Indicators to support your comment. Current Ratio decreased from 2,9: 1—2,0:1 Acid Test Ratio increased from 0,9: 1-—1,2:1 Liquidity position indicates that the business can pay its current liabilities using current assets/ there are no liquidity problems/ the business does not rely on stock Copyright Reserved Please Turn Over

Accountingeidelm@aded From Stanmorephysics.com September 2022 Common Test NS 3.3. The owner is satisfied with the return he is earning in this business, explain By quoting ONE financial indicator to support your answer. Return on Equity increased from 17,8% - 20,8% or by 3% This is above interest rate on fixed deposit at 12% TOTAL MARKS: 100 Copyright Reserved Please Turn Over