Accounting Grade 12 Question Paper

NATIONAL SENIOR CERTIFICATE Grade 12 ACCOUNTING POST-TEST Winter 2017 MARKS: 100 TIME: 60 Minutes This question paper consists of 10 pages and an answer book of 7 pages. INSTRUCTIONS AND INFORMATION Read the following instructions carefully and follow them precisely. 1. Answer the question fully. 2. A special ANSWER SHEET is provided in which to answer the questions. 3. Show ALL workings in order to achieve part-marks. 4. You may use a non-programmable calculator. 5. You may use a dark pencil or blue/black ink to answer the questions. 6. Where applicable, show ALL calculations to ONE decimal point. 7. Use the information in the table below as a guide when answering the question paper. Try NOT to deviate from it. 1

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https://ultradeep.co.za QUESTION 1 (30 Marks; 18 Minutes) Topic of the question This question integrates: Managing resources ASSET MANAGEMENT  Ethics and Problem Solving Financial accounting  Asset Disposal  Notes to Fixed Assets QUESTION 2 (30Marks; 18 Minutes) Topic of the question This question integrates: Financial accounting  Reconcile creditors ledger with CREDITORS' RECONCILIATION AND creditor statement INTERNAL CONTROL Managing resources  Internal controls and ethics QUESTION 3 (40 Marks; 24 Minutes) Topic of the question This question integrates: Financial accounting INVENTORY VALUATIONS AND VAT  VAT concepts and Calculations Managing resources  Specification Identification and Weighted average method QUESTION 1 (30 MARKS; 18 MINUTES) FIXED ASSETS MANAGEMENT 1. FIXED ASSETS The following information relates to the fixed/tangible assets of Jabulani Hypermarket for the year ended 28 February 2015. REQUIRED: 1.1 Refer to Information A, B and C. Calculate the amounts indicated by (i)–(iii). Show the workings in the space provided in the ANSWER BOOK. (7) 1. 2 Refer to Information D. Prepare the Asset Disposal Account for the computer sold on 30 November 2014. (13) 1.3 Refer to Information E. You are the internal auditor of Jabulani Hypermarket. The owner has asked you to investigate the control of trolleys and baskets used in the business. (a) Explain how the Fixed Assets Register will assist you in your duties as internal auditor. Provide ONE point. (2) 2 https://tvetpapers.co.za

https://ultradeep.co.za (b) The stock of trolleys and baskets is classified as a fixed asset. Give ONE suitable reason for this. (2) (c) The owner has received numerous complaints from his customers about the trolleys and baskets. On a busy day the business often has up to 420 customers in the shop at the same time. Identify and explain THREE major problems (with figures) relating to the control of the trolleys and baskets. In EACH case, provide a valid,practical solution to improve the control over these assets. (6) INFORMATION: A. Information from the financial statements for the year ended 28 February 2015: LAND AND FIXED/TANGIBLE ASSETS VEHICLES EQUIPMENT BUILDINGS Carrying value on 1 March 2014 2 500 000 264 600 (i) Cost 2 500 000 552 000 900 000 Accumulated depreciation 0 (287 400) (224 000) Movement Additions (ii) 0 470 000 Disposals at carrying value 0 0 Depreciation 0 (iii) Carrying value on 3 200 000 28 February 2015 Cost 3 200 000 Accumulated depreciation 0 3 https://tvetpapers.co.za

https://ultradeep.co.za B. The business has two vehicles. The following details appeared in the Fixed Assets Register: Vehicle1 Vehicle 2 Cost 240 000 312 000 Accumulated depreciation on 1 March 2014 (225 000) (62 400) Carrying value on 1 March 2014 15 000 249 600 NOTE: Vehicle 1 is old and is reaching the end of its useful life. C. The business provides for depreciation on its fixed assets as follows: On vehicles at 25% p.a. on cost On equipment at 20% p.a. on the diminishing-balance method. Equipment comprises shopping baskets, trolleys, computers, fridges and other general shop equipment. D. A computer was sold for cash to Mash Crusaders on 30 November 2014. A loss of R250 was incurred as the computer was slightly damaged. According to the Fixed Assets Register, the computer was originally purchased for R9 200. Accumulated depreciation on this item was R6 400 on 1 March 2014. E. The following information refers to the trolleys and baskets of the business: TROLLEYS BASKETS Number of units on hand on 1 March 2014 148 120 Additional units purchased during the financial year at R2 000 each for the trolleys and R250 112 35 each for the baskets Number of damaged units written off during the 14 60 financial year Number of units on hand as per physical count 210 95 on 28 February 2015 Repair and maintenance cost for units during R1 800 R16 000 the financial year 30 4 https://tvetpapers.co.za

https://ultradeep.co.za QUESTION 2: (30 marks; 18 minutes) CREDITORS' RECONCILIATION AND INTERNAL CONTROL Machu Traders buys goods on credit from Pikor Suppliers. The business received a statement for April 2015from the creditor. REQUIRED: 2.1 Explain how the Creditors' Reconciliation Statement can assist the business in terms of their internal control measures. State TWO points. (4) 2.2 Calculate the correct balance of Pikor Suppliers in the Creditors' Ledger Account of Machu Traders. Show the changes to the figure R116 400. (12) 2.3 Prepare a Creditors' Reconciliation Statement for Pikor Suppliers on 30 April 2015. (10) 2.4 The owner of Machu Traders is not completely satisfied with the service and quality of goods received from Pikor Suppliers. Suggest TWO factors he should consider before changing suppliers. (4) INFORMATION: A. Creditors' Ledger of Machu Traders PIKOR SUPPLIERS (CL4) Date Debit Credit Balance 2015 01 Balance 44 220 April 08 Invoice 153 54 000 98 220 10 Cheque1449 22 500 75 720 12 Debit note746 5 760 69 960 15 Invoice111 27 300 97 260 17 Invoice214 91 500 188 760 21 Invoice273 20 250 209 010 24 Debit note966 5 400 214 410 27 Journal voucher 490 3 600 210 810 31 Cheque2346 93 000 117 810 Discount 1 410 116 400 5 https://tvetpapers.co.za

https://ultradeep.co.za B. Statement received on 30 April 2015: PIKOR SUPPLIERS PO Box 249, Sabie, 8234. Tel: 013 748 0703 Machu Traders Date: 25 April 2015 PO Box 313 Credit limit: R100 000 Graskop, 8250 Payment terms: 50 days Interest on overdue accounts: 6% DATE DEBIT CREDIT AMOUNT 2015 01 Account rendered 44 220 April 05 Interest 780 45 000 08 Invoice 153 54 000 99000 10 Receipt491 22 500 76 500 Discount 480 76 020 12 Credit note511 6 570 69 450 17 Invoice214 91 500 160 950 19 Receipt654 84 000 76 950 21 Invoice273 50 250 127200 24 Credit note632 5 400 121 800 C. Additional Information: 1. The discount of R480 received from Pikor Suppliers on 10 April 2015 was omitted erroneously in the books of Machu Traders. 2. Invoice 111 was reflected erroneously in the account of Pikor Suppliers in the Creditors' Ledger of Machu Traders. It refers to merchandise purchased from another supplier, Lethu Suppliers. 3. Pikor Suppliers made an error in the recording of invoice 273 on the statement. 4. Goods returned on 12 April 2015 were recorded correctly in the statement from Pikor Suppliers. The entry in the books of Machu Traders is incorrect. 5. Receipt 654 was shown erroneously in the statement from Pikor Suppliers. This transaction does not relate to Machu Traders and will be rectified on the next statement. 6. Pikor Suppliers also purchases goods on credit from Machu Traders. Refer to Journal Voucher 490. Machu Traders has transferred a debit balance from the Debtors' Ledger. This entry has not been recorded by Pikor Suppliers. 7. The transaction on 24 April 2015 is in respect of merchandise returned to Pikor Suppliers. 8. The statement shows transactions up to 25 April 2015. 30 6 https://tvetpapers.co.za

https://ultradeep.co.za QUESTION 3: (40 marks; 24 minutes) VAT AND INVENTORY VALUATION 3.1 VAT CONCEPTS Change the underlined parts in the following sentences to make the statements TRUE. Write the answer next to the question number (3.1.1–3.1.3) in the ANSWER BOOK. 3.1.1 Input VAT is VAT charged to customers. (1) 3.1.2 VAT is payable to the South African Reserve Bank. (1) 3.1.3 VAT is charged at 14% on fruits and vegetables. (1) 3.2 VAT CALCULATIONS Wandile Traders is a VAT registered business. The standard rate of VAT is 14%. REQUIRED: Calculate the correct amount of VAT the business has to pay. Show ALL workings. (12) INFORMATION: The bookkeeper, Felix, prepared the VAT Control Account for the tax period ended 31 May 2015 and arrived at VAT payable amount of R43 820. However, the internal auditor has identified the following errors and omissions which must still be brought into account to calculate the correct VAT payable amount: A. Sales invoices omitted from the Debtors Journal, R10 830 including VAT B. Damaged goods returned to suppliers, excluding VAT 18 600 C. VAT on sundry business expenses omitted 6 818 D. VAT on discounts received from suppliers 756 E. VAT on bad debts recovered 112 F. VAT on bad debts was recorded on the wrong side of the VAT 92 Control Account 3.3 INVENTORY VALUATION Bamjee Stores sells two types of men's watches:  Johx, imported from Germany  Kwatz, locally manufactured The financial year ended on 31 August 2015. REQUIRED: 3.3.1 Calculate the following in respect of Johx watches on 31 August 2015: 7 https://tvetpapers.co.za

https://ultradeep.co.za (a) Closing stock (5) (b) Cost of sales (4) (c) Average stock-holding period (in days) (4) 3.3.2 Calculate the following values (in rands) in respect of Kwatz watches on 31 August 2015: (a) Closing stock (7) (b) Sales (3) 3.3.3 Explain why the business uses different methods to value each type of watch. State ONE valid point. (2) INFORMATION: A.  The business uses the following methods to value the stock of watches: o Johx – specific identification o Kwatz – weighted average  No watches were stolen or lost during the financial year. B. Information relating to Johx watches: UNIT TOTAL UNITS TOTAL UNITS PRICE AMOUNT SOLD SALES Opening stock 12 R6 500 R78 000 11 R125 125 Purchases: 35 R252 000 September 2014 15 R6 800 R102 000 10 R119 000 January 2015 12 R7 300 R87 600 10 R127 750 April 2015 8 R7 800 R62 400 5 R68 250 47 R330 000 36 R440 125  The cost price of Johx watches includes transport costs and customs duties.  These watches are sold at a mark-up of 75% on cost. 40 8 https://tvetpapers.co.za

https://ultradeep.co.za C. Information relating to Kwatz watches: UNITS UNIT PRICE TOTAL AMOUNT Opening stock 95 R340 R32 300 Purchases: 675 R259 900 September 2014 320 R375 R120 000 January 2015 210 R390 R81 900 April 2015 145 R400 R58 000  Kwatz watches are sold at a fixed selling price of R520 each.  Cost to transport Kwatz watches from local suppliers amounted to R11 950 for the financial year and is not included in the figures above.  There were 92 Kwatz watches in stock on 31 August 2015. 40 9 https://tvetpapers.co.za