Accounting Grade 12 NSC June 2012 Question Paper (English)

Downloaded from hlayiso.com : basic education WN \, = Department: Basic Education REPUBLIC OF SOUTH AFRICA SENIOR CERTIFICATE EXAMINATION ACCOUNTING HIGHER GRADE 2012 MARKS: 400 ACCOUNTING HG 4011E TIME: 3 hours 40110E This question paper consists of 17 pages and an 18-page answer book. X@5 wT Copyright reserved GAUTENG Please turn over |

Downloaded from hlayiso.com Accounting/HG 2 DBE/2012 SCE INSTRUCTIONS AND INFORMATION 7 Answer ALL the questions. 2. A special ANSWER BOOK is provided in which to answer ALL the questions. 3. Show ALL calculations in order to earn part marks to be allocated. 4. Read the instructions carefully and follow them precisely. 5. Candidates will forfeit marks for: e Important dates which are omitted e Use of non-standardised abbreviations e =Over-writing on figures e Superfluous entries/foreign items/errors of principle 6. Non-programmable calculators may be used. 7. No pages may be removed from the answer book. 8. Use the information given in the table below as a guide when answering the question paper. Try NOT to deviate from it. QUESTION TOPIC MARKS PaRUTES 1 Partnership 60 Ay 2 Stock Systems 30 16 3 Bank Reconciliation 55 22 4 Club 60 27 5 Company 70 31 6 Close Corporation 50 22 7 Budget 75 35 TOTAL 400 180 Cri see TCT Le

Downloaded from hlayiso.com Accounting/HG 3 DBE/2012 SCE QUESTION 1 PARTNERSHIP (60 marks; 27 minutes) The following information was taken from the books of MM Traders with partners M Mabote and M Mangojane. REQUIRED: Use the information below to prepare the following notes to the financial statements on 29 February 2012: 1.1 Capital accounts (10) 1.2 Current accounts (25) 1.3 Prepare the notes for Fixed Assets on 29 February 2012 (25) EXTRACT FROM THE LIST OF BALANCES ON 1 MARCH 2011: Debit Credit Capital: M Mabote 400 000 Capital: M Mangojane 400 000 Current account: M Mabote 10 000 Current account: M Mangojane 20 000 EXTRACTS FROM THE POST-CLOSING TRIAL BALANCE ON 29 FEBRUARY: 2012 2011 Land and buildings 375 490 204 560 Equipment at carrying value 138 320 142 320 Vehicles at carrying value 118 400 164 540 ADDITIONAL INFORMATION: 1. On 31 August 2011 partner M Mabote increased her capital contribution by R50 000 whilst partner M Mangojane decreased his capital contribution on 1 December 2011 by R100 000. Both transactions have been recorded. 2. The net profit for the year amounted to R340 000. 3. The partnership agreement stipulates the following: 3.1 Salaries The partners are entitled to the following monthly salaries: e MMabote — R10 000 e MMangojane — R9 000 3.2 Interest on capital The partners are entitled to interest on capital at 12% per annum. Take into consideration that there were changes to capital during the year. Conrihtesoned NI 0 Pcs um over

Downloaded from hlayiso.com Accounting/HG 4 DBE/2012 SCE 3.3 Drawings e M Mabote — R90 000 cash and R10 000 trading stock e M Mangojane — R75 000 cash 3.4 Remaining profits/losses The partners Mabote and Mangojane divide the profits/losses in the ratio 3 : 2 respectively. 4. Fixed assets The following transactions have been correctly recorded in the books and are reflected in the balances: 4.1 A vehicle was sold at carrying value for R12 000 cash (the original cost was R23 000 and the accumulated depreciation at the date of disposal was R11 000). 4.2 Equipment was purchased for R24 000 during the year. 4.3 An extra storeroom was built during the year. 60 Conrit esd JANINE) === 2s ov

Downloaded from hlayiso.com Accounting/HG 5 SCE QUESTION 2 STOCK SYSTEMS DBE/2012 (30 marks; 16 minutes) The financial year of Bryden Traders ends on 31 May. The following accounts appeared in the General Ledger: REQUIR 2.1 ED: Refer to the details and figures in the accounts. Provide the missing details/figures labelled [A] to [M]. | There are differences between the periodic and perpetual inventory systems. e Briefly explain ONE difference between these systems. e Explain HOW a business would decide which system to use. GENERAL LEDGER OF BRYDEN TRADERS Dr DEBTORS' CONTROL Cr May_|1 [Balance |v | 95 000][51" | 91 | Bank cRJ | 44000 Discount 31 | Sales DJ [A] allowed CRJ 4 400 [B] CPJ 7 700 [D] DAJ 2 800 [ce] | pu 150 ey os 6 400 accounts Sundry By ante GJ 650 Balance cd ? mn 1 | Balance bid | 112 900 Dr SALES Cr May [3t| FED | | 22000][ee"" | 1 | Total bi 780 000 Trading Peeaint GJ | 878000 31 | Bank cRJ IF] [G] DJ 67 000 900 000 2? Cont rover OT Please turn over (25) (5)

Downloaded from hlayiso.com Accounting/HG 6 DBE/2012 SCE Dr PURCHASES Cr May |1_ | Total ot | 77 .500|[ipay | 31_| Drawings 6s 8 585 31 | Bank cPJ | 155 000 [J] GJ 415 415 [H] CJ fi} q 424 000 Dr TRADING ACCOUNT Cr 2011 Opening 2011 May 31 stock GJ 153 000]} 1, i 31 | Sales GJ [M] [K] GJ | 415415 Closing stock | GJ 175 000 Profit and loss So fL] 7 ? 30 Crise A I) se

Downloaded from hlayiso.com Accounting/HG 7 DBE/2012 SCE QUESTION 3 BANK RECONCILIATION (55 marks; 22 minutes) You are provided with information taken from the records of Masoke Traders. The business is owned by Koos Masoke. REQUIRED: 2 Complete the Cash Receipts Journal and Cash Payments Journal for April 2012. 3.2 Post to the Bank Account in the General Ledger. Balance the account on 30 April 2012. 3.3 Prepare the Bank Reconciliation Statement on 30 April 2012. INFORMATION: 1. Provisional totals of the bank columns in the Cash Journals on 30 April 2012: CASH RECEIPTS JOURNAL CASH PAYMENTS JOURNAL Sundry Sundry aoe Accounts dois Accounts 33 433 33 433 31 313 31 313 2. The following items appeared in the Bank Reconciliation Statement on 31 March 2012: e Deposit R13 600 — this was made on 31 March 2012. e Cheque No. 831 for R1 460 No. 840 for R1 250 No. 863 for R2 845 No. 878 for R3 820 NOTE: e Cheque No. 831 was issued on 15 October 2011 to SPCA as a donation. The cheque must be cancelled. e Cheque Nos. 840 and 863 appeared on the Bank Statement of April 2012. 3. Items that appear in the Cash Journals for April 2012 but not on the Bank Statement: 3.1 A deposit by Masoke Traders on 30 April 2012, R22 777. Conrihtesoned NA Pesce tum over (35) (6) (14)

Downloaded from hlayiso.com Accounting/HG 8 DBE/2012 SCE 3.2 The following cheques: No. 911 for R2 500 No. 948 for R1 700 (Dated 20 July 2012) No. 955 for R1 350 NOTE: Cheque No. 911, dated 13 April 2012, which was issued to Hall Traders to settle an account of R2 500, was lost. Payment of the cheque was stopped. A new cheque (No. 966) was issued for the same amount. No entries were made. 7) Cheque No. 777 for R1 300 in favour of BB Stores was issued for purchase of stationery. The amount was entered in the Cash Payments Journal as R1 800, but it appears correctly on the Bank Statement as R1 300. 4. Items that appear on the April Bank Statement (received from Bella Bank), but not in the Cash Journals: 4.1 Service fees, R123 Credit card charges, R234 Interest on fixed deposit, R333 Interest on unfavourable balance, R35 4.2 Monthly stop order for R1 250 to SA Insurers for insurance for business vehicle. 4.3 Received R666 from a debtor, B Ben, whose account was previously written off as bad debts. 44 The tenant, Y Yacoob, made an electronic transfer to the account of Masoke Traders, R3 500. 4.5 A debit order in favour of Charlie Bank for the monthly instalment of the owner's car, R3 200. 46 Deposit of R13 600 on 1 April. 5: The debit balance on the bank account in the General Ledger on 1 April 2012 was R4 180. 6. There was an unfavourable balance of R5490 according to the Bank Statement on 30 April 2012. 55 Com esoed JANI ANAM] ov

Downloaded from hlayiso.com Accounting/HG 9 SCE QUESTION 4 CLUB DBE/2012 (60 marks; 27 minutes) The following information was taken from the books of Dome Cycling Club. The annual membership fee is R700 per member per year. The accounting period ends on 31 August each year. REQUIRED: 4.1 Complete the Membership Fees Account. Close off/Balance the account on 31 August 2011. 4.2 Prepare the Income and Expenditure Statement for the year ended 31 August 2011. INFORMATION: DOME CYCLING CLUB POST-CLOSING TRIAL BALANCE AT 31 AUGUST 2010 Debit Credit Accumulated fund 1 446 700 Land and buildings 950 000 Equipment 550 000 Accumulated depreciation on equipment 195 000 Fixed deposit: BB Bank (10%) 120 000 Loan: DD Bank (12%) 50 000 Crockery at book value 25 800 Bank 22 900 Savings account 3 300 Expenses prepaid 9000 (Stationery R2 000; Wages R7 000) Stock of refreshments 800 Income received in advance (Membership fees) 700 Accrued income (Membership fees) 12 600 Accrued expenses (Honorarium) 2 000 1 694 400 1 694 400 coor reoned JNA A Please turn over (17) (43)

Downloaded from hlayiso.com Accounting/HG 10 DBE/2012 SCE EXTRACT FROM THE STATEMENT OF RECEIPTS AND PAYMENTS FOR THE FINANCIAL YEAR ENDING 31 AUGUST 2011 RECEIPTS 589 050 Entrance fees 9 000 Membership fees: 2010 5 600 2011 364 000 2012 1 400 Proceeds of cycle race 39 800 Fixed deposit BB Bank: Matured on 31 August 2011 132 000 Donations 20 000 Refreshments sold 17 250 PAYMENTS 291 520 New crockery purchased 18 900 Cycle race expenses 15 850 Payment to Star Builders 95 000 Increase in savings account 5 000 Stationery 8 200 Refunds of fees to members who have resigned 2 100 Water and electricity 12 000 Telephone 18 470 Equipment purchased 50 000 Wages 46 000 Refreshments purchased 11 000 Interest paid 5 000 Honorarium 4 000 ADJUSTMENT AND ADDITIONAL INFORMATION: 7 Membership fees: e Membership fees still unpaid for the previous year must be written off and the names of the members must be removed from the register of members with effect from 1 September 2010. e 35 members have not settled their membership fees for the current financial year. 2. Entrance fees: e New members pay entrance fees. e 60% of the entrance fees must be capitalised and the remainder must be treated as current income. Cote mes A |e

Downloaded from hlayiso.com Accounting/HG 11 DBE/2012 SCE a Stationery: e Stationery on hand on 31 August 2011, R750. 4. Equipment: e New equipment was purchased for R50 000 cash on 1 March 2011. e Depreciation on equipment is calculated at 5% p.a. on the cost price method. 5. Refreshments: e The value of refreshments on hand on 31 August 2011 was R1 250. 6. Honorarium: An honorarium of R5 500 was approved for the secretary for the 2011 financial year, but has not yet been fully paid. Savings account: The balance of the savings account at the end of the year is R8 480. This amount includes interest of R180. 8. Fixed deposit and buildings: e The fixed deposit matured on 31 August 2011. The interest rate was 10% p.a. The amount received included the interest for the year. e The payment of R95 000 to Mohammed Builders was for the following: Extensions to the buildings R55 000 Repairs to the roof R40 000 9. Crockery: The crockery was revalued at R42 000 on 31 August 2011. Write off the difference. 10. Water and electricity: Water en electricity outstanding for August 2011 amounted to R1 450. a Interest expense: Interest of R1 000 is still outstanding on 31 August 2011. 60 Com ese NAN Pose tm oe

Downloaded from hlayiso.com Accounting/HG 12 DBE/2012 SCE QUESTION 5 COMPANY (70 marks; 31 minutes) Marvin Traders Limited has a registered authorised share capital of 500 000 ordinary shares of R1,50 each. Their financial year ends on the last day of February each year. New shares were issued on 1 March 2011. REQUIRED: (for the 2012 financial year ended 29 February 2012) a Prepare the following notes to the Cash Flow Statement on 29 February 2012: 5.1.1 Reconciliation between net profit before taxation and cash generated by operations (14) 5.1.2 Dividends paid (7) 5.1.3 Income tax paid (7) 5.2 Calculate the number of ordinary shares that were issued on 1 March 2011. (4) | Study the following ratios and explain what this means for the business: 2012 2011 e Current ratio 1,18:1 0,85: 1 e = Acid-test ratio 0,57: 1 0,31: 1 (6) 5.4 Calculate the debt to owners' equity (shareholders' equity) ratio for the 2012 financial year. (5) 5.5 Calculate the creditor's payment period (in months) for the 2012 financial year. (5) 5.6 Calculate the number of days the company had to wait in the 2012 financial year before debtors settled their debts. (5) 5.7 Outline TWO ways in which management could encourage debtors to pay their debts earlier. (4) 5.8 Calculate the net asset value per share on 29 February 2012. (5) 5.9 Calculate the return on average shareholders' equity for 2012. (4) 5.10 Do you think that the average shareholders' equity calculated in QUESTION 5.9 is acceptable? Give a brief explanation for your answer. (4) Cpe mr AL I) se

Downloaded from hlayiso.com Accounting/HG 13 DBE/2012 SCE INFORMATION: 1. EXTRACTS FROM THE INCOME STATEMENT: 2012 2011 Sales (this includes credit sales of R640 000 for 2012) 960 000 840 000 Cost of sales 600 000 560 000 Interest on loan 9 750 12 000 Depreciation: Equipment 28 000 8 000 Vehicles 34 140 16 000 Income tax 73 500 54 180 Net profit after tax 136 500 100 620 Interim dividends declared and paid 48 800 30 000 2. EXTRACTS FROM THE POST-CLOSING TRIAL BALANCE ON 29 FEBRUARY: 2012 2011 Ordinary shareholders' equity 600 000 401 500 Ordinary share capital (nominal value per share R1,50) 450 000 300 000 Share premium 50 000 40 000 Retained income/Accumulated profit 100 000 61 500 Long-term liabilities (15% p.a.) 60 000 90 000 Fixed assets at carrying value 632 210 511 420 Current assets 178 960 116 000 Trading inventory 93 450 73 350 Debtors' control 63 290 42 650 Cash and cash equivalents 22 220 - Current liabilities 151 170 135 920 Bank overdraft - 8 500 Creditors' control 94 000 93 000 Accrued expenses 560 280 South African Revenue Service (Income tax) 7410 6 140 Shareholders for dividends 49 200 28 000 70 Copyright reserved GAUTENG Please turn over

Accounting/HG 14 DBE/2012 SCE QUESTION 6 CLOSE CORPORATION (50 marks; 22 minutes) Downloaded from hlayiso.com The given information appeared in the books of Ramroos CC with J Ramsamy and B Roos as members. The corporation's financial year ends on 29 February 2012. REQUIRED: 6.1 Draw up the following Ledger Account, properly balanced or closed off on 29 February 2012: 6.1.1 Members' contributions 6.1.2 Retained income/Accumulated profits 6.1.3 Distribution payable to members 6.1.4 South African Revenue Service (Income tax) 6.1.5 Appropriation Account 6.2 Show only the members' funds and the non-current liabilities in the Balance Sheet at 29 February 2012. (Show workings in brackets.) INFORMATION: Some of the balances that appeared in their books on 1 March 2011, the first day of a new accounting period, are as follows: Members' contributions 335 000 Accumulated profits/Retained income 35 555 Distribution payable to members 24 000 South African Revenue Service (Income tax) (Cr) 17 850 Loan: East Bank 100 000 Loans from members 50 000 Transactions: 2011 Mar. 7 21 June 14 July 28 Aug. 30 Copyright reserved Paid the distribution due to members by cheque. Paid the amount due to SARS for last year's income tax by cheque No. 111. J Ramsamy gave trading stock valued R40 000 to the business. He requested that the amount must be regarded as part of his member's contribution. B Roos gave her personal computer and laser printer, R17 250, to the business to increase her member's contribution. Paid provisional income tax by cheque, R41 650. FAI AO AA ease tim over GAUTENG (9) (5) (8) (9) (10) (9)

Accounting/HG 15 DBE/2012 Ses Nov. 1 B Roos reduced her share in the close corporation by withdrawing Downloaded from hlayiso.com R10 000 cash from the business. Nov. 30 Issued a cheque to East Bank for R15 000 for the following: e Part repayment of loan R12 000 e Interest on loan R3 000 2012 Feb. 26 Issued a cheque for R33 400 in respect of provisional income tax. 29 Final accounts were drawn up and a net profit of R200 000 was transferred to the Appropriation Account. The income tax calculated correctly amounted to R74 000. An amount of R90 000 of the net profit will be distributed between the members in the ratio 2 : 1. 50 QUESTION 7 BUDGET (60 marks; 27 minutes) 7 You are provided with information relating to Cheetah Traders. REQUIRED: a Prepare the Debtors' Collection Schedule for May and June 2012. 7.1.2 Prepare the Cash Budget for the two months May and June 2012. INFORMATION: 1. Extract from list of balances 30 April 2012 Bank (dr) R84 400 Fixed deposit: BBW Bank 60 000 2. Total sales Actual sales Budgeted sales February March April May June 2012 2012 2012 2012 2012 R R R R R 94 000 120 000 84 000 75 000 90 000 i CAA AL | Peo (10) (50)

Downloaded from hlayiso.com Accounting/HG 16 DBE/2012 SCE o Credit sales Credit sales amount to 60% of the total sales. Credit sales are usually collected as follows: e 40% in the month of sales less 5% discount for prompt payment. 50% in the month following the sales (after 30 days). 6% in the second month following the sales (after 60 days). 4% are written off as bad debts in the third month after the sales (after 90 days). 4. Purchases and payments to creditors ¢ Goods are sold at cost price plus 50%. e 70% of all purchases are on credit and 30% for cash. Goods are replaced in the same month that they are sold. e Creditors are paid in the month following the purchase (after 30 days). 5. Rent income e The business leases part of the building. e The budgeted rent income for the period 1 June 2011 to 31 May 2012 is R28 800. e The monthly rent will increase yearly by 15% on 1 June. 6. Fixed deposit and interest on fixed deposit e The fixed deposit matures on 31 May 2011 and half of this amount is to be invested on the same date at BBW Bank. The rest will be retained in the current bank account. e Interest on fixed deposit is received monthly. The expected interest rate on fixed deposits for May is 10%. It is expected that the interest rate will drop by 1% from 1 June 2012. 7. Vehicles and depreciation e Depreciation on vehicles amount to R5 000 per month. e It was decided to buy a delivery vehicle during May 2012 from Polo Motors. A deposit of R45 000 will be paid in May 2012. The balance, including finance charges, amounts to R96 000, will be paid in 12 equal monthly instalments starting in June 2012. Coprihtesoned NAN Peetu ove

Accounting/HG 17 DBE/2012 _] Downloaded from hlayiso.com SCE 8. Wages e The wages amount to R40 000 per month for ten workers. e Two additional workers will be employed from 1 June 2012 at 80% of the wage rate of the current workers. 9. Salaries e The owner receive R30 000 per month. His salary increases by R5 000 on 1 June of every year. 10. Drawings e The owner will make the following monthly drawings from May 2012: o Cash — R5 500 o Stationery — R4 300 11. Other operating expenses e May —R2 900 e June —R3 050 BUDGET (15 marks; 8 minutes) The owner of Limpopo Traders, Thabo Mkhize, received the cash budget for the three months ending 31 March 2012, from his new accountant. Thabo presented the following extract from this budget to you to give him a few suggestions. REQUIRED: Study this extract and for each item give him an OBSERVATION (what you notice) and a RECOMMENDATION (advise what to do). INFORMATION: March 2012 Budgeted Actual Repairs and maintenance R23 000 R18 000 Telephone R15 000 R24 000 Rent income R72 000 R22 000 Advertising R25 000 R25 000 Sales R60 000 R80 000 75 TOTAL: Copyright reserved FTI UU AO A A (15) 400