Accounting Grade 12 NSC June 2016 Addendum (English)

Downloaded from hlayiso.com CENTRE NUMBER EXAMINATION NUMBER SENIOR CERTIFICATE EXAMINATIONS ACCOUNTING GRADE 12 2016 SPECIAL ANSWER BOOK QUESTION MARKS INITIAL MOD. 1 2 3 4 5 6 TOTAL This answer book consists of 20 pages. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 2 DBE/2016 SCE – Answer Book QUESTION 1 VALUE-ADDED TAX 1.1 1.1.1 1.1.2 1.1.3 3 1.2.1 Calculate the VAT amount that is either payable to or receivable from SARS. 12 1.2.2 What comment would you offer Nelson concerning this practice? State ONE point. 2 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 3 DBE/2016 SCE – Answer Book 1.3 CREDITORS' RECONCILIATION 1.3.1 CREDITORS' LEDGER CREDITORS' RECONCILIATION STATEMENT Balance 110 170 111 600 (a) (b) (c) (d) (e) (f) (g) (h) 14 1.3.2 State TWO internal control measures that the business can use to prevent similar incidents from happening in future. 4 TOTAL MARKS 35 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 4 DBE/2016 SCE – Answer Book QUESTION 2 2.1 ABE ACCESSORIES 2.1.1 Factory Overhead Cost Note 15 2.1.2 Production Cost Statement for the year ended 29 February 2016 Direct material 350 000 Direct labour cost Prime cost/Direct cost Factory overhead cost Total cost of production Cost of production of finished goods 8 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 5 DBE/2016 SCE – Answer Book 2.2 NEW FASHION MANUFACTURERS 2.2.1 Gloria is concerned about the wastage of direct materials. Calculate the number of metres of fabric that was wasted. 5 Gloria feels that the wastage is significant. Provide a calculation to support her opinion. 3 2.2.2 Give TWO possible reasons for this wastage and, in EACH case, give advice to prevent this from happening in future. Reason Advice 1. 2. 4 2.2.3 Calculate the break-even point for the year ended 29 February 2016. 4 Explain why the business should be satisfied with the number of units made during the current financial year. State TWO points. 4 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 6 DBE/2016 SCE – Answer Book 2.2.4 What effect will it have on the production cost of a dress? Provide a calculation to support your answer. 3 State TWO other consequences of importing the direct material. 4 TOTAL MARKS 50 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 7 DBE/2016 SCE – Answer Book LEAVE THIS PAGE BLANK Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 8 DBE/2016 SCE – Answer Book QUESTION 3 3.1 CONCEPTS 3.1.1 3.1.2 3.1.3 3.1.4 4 3.2 LYNN STORES 3.2.1 Calculate the value of the closing stock on 29 February 2016 using the weighted-average method. 8 3.2.2 Calculate the following for the year ended 29 February 2016: Cost of sales: Gross profit: 6 3.2.3 Calculate the average stock-holding period (in days) on 29 February 2016. 5 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 9 DBE/2016 SCE – Answer Book 3.2.4 Calculate the value of the closing stock by using the FIFO method. 7 3.3.1 Identify ONE problem in Shop 1 and ONE problem in Shop 2. Quote figures. In EACH case, give ONE point of advice. Branch Problem Advice Shop 1 Shop 2 6 3.3.2 Explain TWO good decisions that Chad has made in respect of Shop 3. Quote figures. 4 TOTAL MARKS 40 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 10 DBE/2016 SCE – Answer Book QUESTION 4 4.1 CONCEPTS 4.1.1 4.1.2 4.1.3 4.1.4 4 4.2 PARADISE LIMITED 4.2.1 Ordinary share capital 6 Retained income Balance at beginning of year 1 634 000 Ordinary share dividends Balance at end of year 10 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 11 DBE/2016 SCE – Answer Book 4.2.2 BALANCE SHEET (STATEMENT OF FINANCIAL POSITION) ON 29 FEBRUARY 2016 ASSETS NON-CURRENT ASSETS Fixed deposit: Sandton Bank CURRENT ASSETS 3 538 600 TOTAL ASSETS EQUITY AND LIABILITIES ORDINARY SHAREHOLDERS' EQUITY Ordinary share capital NON-CURRENT LIABILITIES CURRENT LIABILITIES Trade and other payables TOTAL EQUITY AND LIABILITIES 35 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 12 DBE/2016 SCE – Answer Book 4.3 AUDIT REPORT 4.3.1 What type of audit report did Topstar Ltd receive? Choose from the following: unqualified, qualified, disclaimer. Reason: 3 4.3.2 To whom is an audit report addressed? Reason: 3 4.3.3 Explain why the auditor mentioned IFRS in the audit report. 2 Explain why the auditor mentioned the Companies Act (Act 61 of 1973) in the audit report. 2 TOTAL MARKS 65 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 13 DBE/2016 SCE – Answer Book LEAVE THIS PAGE BLANK Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 14 DBE/2016 SCE – Answer Book QUESTION 5 5.1 CONCEPTS 5.1.1 5.1.2 5.1.3 5.1.4 4 5.2 MAFUSA LTD 5.2.1 (a) (b) (c) (d) 16 5.2.2 Calculate the income tax paid. 5 Calculate the net changes in cash and cash equivalents. 4 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 15 DBE/2016 SCE – Answer Book 5.2.3 CASH FLOW FROM FINANCING ACTIVITIES 7 5.2.4 Calculate the return on average shareholders' equity. 5 Calculate the net asset value. 3 5.2.5 Comment on the overall liquidity position of the company. Quote THREE relevant financial indicators (with figures). 8 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 16 DBE/2016 SCE – Answer Book 5.2.6 The directors decided to change the dividend pay-out policy in 2016. Provide calculations that indicate the policy change. 4 Explain the effect of this change of policy on the company. State TWO points. 4 5.2.7 One of the directors feels that the company should pay back the loan as soon as possible. What are your views about this? Quote and explain TWO relevant financial indicators with figures. 6 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 17 DBE/2016 SCE – Answer Book 5.2.8 Explain why the shareholders are satisfied with the market price of the shares on the JSE (Quote figures/financial indicators.) 2 Explain why the shareholders are satisfied with the price at which the 75 000 shares were repurchased on 25 April 2016 (Quote figures/ financial indicators.) 2 TOTAL MARKS 70 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 18 DBE/2016 SCE – Answer Book QUESTION 6 6.1 (a) Operating profit (b) Cost of sales (c) Wages (d) Rent income 12 6.2.1 Calculate the monthly salary due to the sales manager in June 2016. 4 6.2.2 Calculate the total credit sales expected in July 2016. 4 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 19 DBE/2016 SCE – Answer Book 6.2.3 Calculate the cost price of the new vehicle purchased on 1 May 2016. 4 6.3 Comment on the control of telephone and water and electricity. What advice would you offer Susan? State ONE point. Comment: Advice: 4 6.4 Susan wants to reduce the maintenance budget to R500 per month and then use this saving for staff training. What should she consider before making this change? State TWO points. 4 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 20 DBE/2016 SCE – Answer Book 6.5 Explain how Susan responded to this threat. State THREE points. Provide figures/calculations to support your answer. 6 Explain whether Susan's response was successful or not. Provide figures. 2 TOTAL MARKS 40 TOTAL: 300 Copyright reserved