Accounting Grade 12 NSC June 2015 Addendum (English)

Downloaded from hlayiso.com CENTRE NUMBER EXAMINATION NUMBER SENIOR CERTIFICATE EXAMINATION ACCOUNTING GRADE 12 2015 SPECIAL ANSWER BOOK QUESTION MARKS INITIAL MOD. 1 2 3 4 5 6 TOTAL This answer book consists of 17 pages. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 2 DBE/2015 SCE – Answer Book QUESTION 1 BANK RECONCILIATION 1.1.1 CASH RECEIPTS JOURNAL NAME OF ACCOUNT AFFECTED IN THE AMOUNT GENERAL LEDGER 7 CASH PAYMENTS JOURNAL NAME OF ACCOUNT AFFECTED IN THE AMOUNT GENERAL LEDGER 8 1.1.2 BANK RECONCILIATION STATEMENT ON 31 MAY 2015 10 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 3 DBE/2015 SCE – Answer Book 1.1.3 As internal auditor you are not happy with the manner in which cash is being controlled in this business. Identify TWO problems and provide figures to support your answer. Give advice on how these problems can be avoided in future. PROBLEMS IDENTIFIED ADVICE 1 2 6 1.2 CREDITORS' RECONCILIATION ACCOUNT OF STATEMENT RECEIVED METEOR SUPPLIERS IN FROM METEOR CREDITORS' LEDGER OF SUPPLIERS COMET TRADERS Balance R10 705 R19 120 A B C D E Final balance 9 TOTAL MARKS 40 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 4 DBE/2015 SCE – Answer Book QUESTION 2 2.1.1 FACTORY OVERHEAD COST NOTE Indirect material cost R11 040 Indirect labour cost 33 345 10 PRODUCTION COST STATEMENT FOR THE YEAR ENDED 30 APRIL 2015 Prime cost Total manufacturing cost Work-in-process (1 May 2014) 18 680 COST OF PRODUCTION OF FINISHED GOODS 14 2.1.2 The accountant is of the opinion that the workers are not properly supervised. IDENTIFY SEPARATE PROBLEMS POSSIBLE SOLUTION (WITH FIGURES) Problem 1 Problem 2 8 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 5 DBE/2015 SCE – Answer Book 2.2 ZIPHO WOODWORK MANUFACTURERS 2.2.1 Should the business be satisfied with the number of tables that were produced and sold during this financial year? Explain. Quote relevant figures in your answer. 3 2.2.2 Nozipho, the owner of the business, aimed for a profit of R200 000 for this financial year. How many tables must she make to achieve the target of R200 000 profit? Provide a suitable calculation to support your answer. 5 TOTAL MARKS 40 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 6 DBE/2015 SCE – Answer Book KEEP THIS PAGE BLANK Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 7 DBE/2015 SCE – Answer Book QUESTION 3 3.1.1 What does FIFO stand for? 1 3.1.2 Calculate the value of closing stock on 28 February 2015 according to the FIFO method. 7 3.1.3 The suppliers informed the owner that the cost price of shampoo will increase to R96 per unit and the carriage will increase to R8 per unit. Calculate the selling price that the owner will have to charge for these goods in order to achieve a mark-up of 60%. 3 3.1.4 The insurance company is prepared to pay out only 80% of the total value of the goods destroyed by a fire. Calculate the loss that should be reflected in the Income Statement. 4 3.1.5 The owner has submitted the claim form for the loss of stock as a result of the fire to the insurance company. However, the number of units destroyed in the fire was reflected as 1 500. Explain what you would say to the owner regarding this insurance claim. 2 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 8 DBE/2015 SCE – Answer Book 3.2.1 NO. CALCULATIONS AMOUNT (i) (ii) (iii) 7 3.2.2 ASSET DISPOSAL 13 3.2.3 (a) Explain how the Fixed Assets Register will assist you in your duties as internal auditor. Provide ONE point. 2 (b) The stock of trolleys and baskets is classified as a fixed asset. Give ONE suitable reason for this. 2 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 9 DBE/2015 SCE – Answer Book (c) 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. PROBLEM WITH PRACTICAL SOLUTION TO FIGURES IMPROVE INTERNAL CONTROL Problem 1 Problem 2 Problem 3 9 TOTAL MARKS 50 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 10 DBE/2015 SCE – Answer Book QUESTION 4 4.1 Write only the letter (A–E) next to the question number. 4.1.1 4.1.2 4.1.3 4.1.4 4 4.2.1 See Income Statement on the next page. 4.2.2 Ordinary Share Capital Note Authorised 1 000 000 ordinary shares Issued Shares in issue on 1 Mar. 2014 Shares issued during the year at R12 each Shares bought back (average issued price of _______) Shares in issue on 28 Feb. 2015 8 4.2.3 Retained Income Note Balance at beginning of financial year Dividends Balance at end of financial year 11 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 11 DBE/2015 SCE – Answer Book 4.2.1 PRINCE LIMITED INCOME STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2015 Sales Cost of sales (14 974 000) Gross profit Other income Gross operating income Operating expenses Auditors' fees 147 600 Advertising 960 000 Operating profit Income tax (540 000) 42 TOTAL MARKS 65 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 12 DBE/2015 SCE – Answer Book QUESTION 5 5.1 CASH GENERATED FROM OPERATIONS Depreciation 178 000 Interest expense 52 000 Operating profit before changes in working capital Cash generated from operations 10 5.2 MAXIE LTD CASH FLOW STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2015 CASH EFFECTS OF OPERATING ACTIVITIES CASH EFFECTS OF INVESTING ACTIVITIES CASH EFFECTS OF FINANCING ACTIVITIES 160 000 Proceeds of shares issued 1 000 000 Share repurchased (540 000) Repayment of loan (300 000) NET CHANGE IN CASH AND CASH EQUIVALENTS Cash and cash equivalents (1 March 2014) Cash and cash equivalents (28 February 2015) 21 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 13 DBE/2015 SCE – Answer Book 5.3.1 Calculate the current ratio. 3 5.3.2 Calculate the debt-equity ratio. 3 5.3.3 Calculate the net asset value per share. 3 5.4 On 1 March 2014 additional shares were issued at R5,00 each. Will the existing shareholders be satisfied with this price? Explain. Quote relevant financial indicators with figures in your explanation. 5 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 14 DBE/2015 SCE – Answer Book 5.5 The directors decided to pay back a large portion of the loan. Do you think that this was a wise decision? Quote TWO relevant financial indicators and figures to support your answer. 7 5.6 Besides paying back the loan, the directors have taken other major decisions that have affected the cash balances. State TWO other major decisions (exceeding R200 000) and quote the figures from the Cash Flow Statement. In EACH case, state how the decision will affect the future of the company. DECISION FUTURE EFFECT ON COMPANY (with figures) 6 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 15 DBE/2015 SCE – Answer Book 5.7.1 Choose the correct word from those given in brackets. Write down the word and briefly explain your choice. Maxie Ltd received a/an (unqualified/qualified/disclaimer) auditors' report. Briefly explain your choice. 3 5.7.2 Explain the consequences of this auditors' report for the chief executive officer (CEO) and/or the company. State TWO points. Point 1: Point 2: 4 TOTAL MARKS 65 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 16 DBE/2015 SCE – Answer Book QUESTION 6 6.1 DEBTORS' COLLECTION SCHEDULE CREDIT SALES AUGUST May 42 000 June 49 200 July August 33 600 6 6.2 NO. CALCULATIONS AMOUNT (i) (ii) (iii) (iv) (v) 12 6.3.1 Give ONE reason (with figures) why the workers are dissatisfied. 2 6.3.2 Give ONE reason (with figures) that Charles could use to justify the increases that he is going to give the workers. 2 6.4.1 Charles decided to offer trade discounts to special customers in July 2015. In your opinion, has this benefitted the business? Provide figures to support your answer. 2 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 17 DBE/2015 SCE – Answer Book 6.4.2 Explain what you would say to Charles about the control of the following: ITEM COMMENT WITH FIGURES ADVICE Delivery costs Advertising costs 6 6.5.1 Calculate the purchase price of the new vehicle. 4 6.5.2 Apart from the deposit and the monthly instalment of R6 250, explain how the next Cash Budget will be affected. Provide THREE points. Point 1: Point 2: Point 3: 6 TOTAL MARKS 40 TOTAL: 300 Copyright reserved