Accounting Grade 11 KwaZulu Natal June 2019 Memo

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Downloaded from hlayiso.com QUESTION 4 [ 1.1.1 ASSET DISPOSAL ACCOUNT DATE | DETAILS AMOUNT DATE | DETAILS AMOUNT Dec | Equipment vo 50 000" | Dec | Accum. Depreéciation:Equip” 18 750 4 2018 2018 | (15000 V+3750 v) Bank ” 21 000 ¥ Loss on sale of asset V 10 250 4 50 000 50 000 f FIXED(TANGIBLE) ASSETS ] LAND AND EQUIPMENT : | BUILDINGS Carrying value (01/07/2018) 2 000 000 165 000 Cost 2 000 000 300 000 Accumulated depreciation (135 000) Movements Additions at Cost 600 000” 7180 000 Disposal at Carrying value (31 250) v1 Depreciation . (52 500) V4 Carrying value (30/06/19) 2 600 000 361250 Cost | 2 600 000V 430 000 vv Accumulated depreciation 0 (168 750) — 1.2 | The owner of Chinamhora Stores also owns vehicles that are used for deliveries. He has discovered that some of his drivers are using the business vehicles for private use. Identify TWO ways that the business can ensure that the. vehicles are being used responsibly by staff. |. Install trackery¥ ° ¢ Assign a particular driver per vehicle who is responsible for the vehicle”” e Have weekly checks on the condition of the vehiciesY ¥ ¢ Log book to record mileagev Vv Any valid explanation LC 4

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Downloaded from hlayiso.com 2.2.4 THALVIN TRADERS INCOME STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2019 Sales (910 600 - 12 000v - 5 600v ) 893000] Cost of sales (548 000 - 3 500” ) (544 500) ” Gross profit Check operation [6] 348500] @ | OTHER OPERATING INCOME 91 820 | Rent income (97 300 ~ 7 700”) 9 600 |v | Discount received | 1300] “ | Bad debts recovered 720] ¥ Provision for bad debts adjustment (2 100 - 1 900) 200 vv | GROSS OPERATING INCOME Check operation [9] 440 320 OPERATING EXPENSES Check operation (275 730) Salaries and wages (150 000 +21 000v ) 171 000 Employer's contribution (42 130 + 2 520” ) | 14650 Bad debts (1 850 +1 050v ) 2 900 Water and electricity 52 800 Discount allowed (750 - 150”) | 600 Telephone 9610 Insurance (11 000 + 2 200”) 43 200 Consumable stores (7 100 — 1 800’) 5 300 a] <P <] s} <b sis] <1 8) 8 Bank charges (690 + 480’) | 1170 OR (271 500” v — 270 000”) Trading stock deficit (280 000 + 3 500V -12 000Y — 270 000) 1500 Loss due to fire (12 000 x 25 %) or (12 000 — 9 000) [23] 3.000} OPERATING PROFIT 164 | <{H} Ss} @t< INTEREST INCOME | 1410 PROFIT BEFORE INTEREST EXPENSE 166 000} INTEREST EXPENSE (26 000) | ner PROFIT FOR THE YEAR check operation (5] ~ 140 000 | YZ [3 4

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Downloaded from hlayiso.com QUESTION 4: ANALYSIS AND INTERPRETATION (30 marks:24 minutes ) Calculate the following financial indicators on 30 June 2019 patculate the folowing tence Une 2019 in 4.1.1] Acid test ratio 1 (1.015 000 v— 564 000”): 635 200Y OR (246 000 + 205 000):635 200 451 000 : 635 200 | 0,7:1 4 ai 4.1.2 | Debt: Equity ratio 8 000 000 v: 1 0050 750 ¥ 0,8:14 pL a 4.1.3 | % Return on average partners equity earned by the partnership 1840500 vx 100 (1 0050 750 “+9 540 000 v) +2 ¥ 1 = 1840 500 x 160 9 795 375 = 18,8% 4 a mene ESOS LT) Ev — ——————— — —_ 4.2 The partners are pleased that the liquidity of the partnership has improved. Quote THREE financial indicators to support their statement Current ratio’ has improvedior increased from 0 ,3: 1 to 1,6: 1v Acid test ratio v has improved/or increased from 0, 1: 1 to 0,7: 1v Debtors collection period has improved or decreased from 43 days to 36 days ¥ | Debtors are paying 7 days sooner than last year. Financial Indicator “, Explanation/trend, Figures, Do not accept creditors payment period Do not accept stock turnover rate 6 Dneneremrnivoumen -

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