Accounting May June 2017 Answer Book Eng_hlayiso.com_.pdf

Downloaded from hlayiso.com STICKER CENTRE NUMBER EXAMINATION NUMBER SENIOR CERTIFICATE EXAMINATIONS ACCOUNTING GRADE 12 2017 SPECIAL ANSWER BOOK QUESTION MARKS INITIAL MOD. 1 2 3 4 5 6 TOTAL This answer book consists of 18 pages. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 2 DBE/2017 SCE – Answer Book QUESTION 1 1.1 TRUE OR FALSE 1.1.1 1.1.2 1.1.3 3 1.2 MIZZY BOUTIQUE Use the table provided to indicate corrections that must be made to the Debtors' Control Account and the debtors' list. Provide figures and a plus (+) or minus (–) sign for each correction. Debtors' Control Debtors' List Account Balance/Total on R37 710 R39 490 28 February 2017 (a) (b) (c) (d) (e) (f) Balance/Total on 28 February 2017 13 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 3 DBE/2017 SCE – Answer Book 1.3 GLENDALE TRADERS 1.3.1 Explain how a debtors' age analysis can assist with internal control over debtors. 2 1.3.2 Calculate the percentage of total debts exceeding the credit terms. 4 1.3.3 Explain ONE problem (with figures) relating to EACH of the following debtors: DEBTOR PROBLEM WITH FIGURES D Pillay W Patel 4 1.3.4 Explain TWO problems (with figures) relating to debtor D Gouws. 4 TOTAL MARKS 30 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 4 DBE/2017 SCE – Answer Book QUESTION 2 2.1 VAT 2.1.1 (a) (b) (c) (d) 4 2.1.2 VAT INCREASES THE DECREASES THE No. AMOUNT AMOUNT DUE TO SARS AMOUNT DUE TO SARS (a) (b) (c) 10 2.2 INVENTORY VALUATION 2.2.1 Give a reason why the business uses the weighted average method to value the stock of tyres. 2 2.2.2 Calculate: Value of closing stock on 28 February 2017 10 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 5 DBE/2017 SCE – Answer Book 2.2.3 Calculate: Cost of sales 3 Calculate: Gross profit 3 Calculate: Average stock-holding period (in days) 5 2.2.4 Should the owner be satisfied with the stock-holding period calculated above? Explain. Quote figures. NOTE: The stock-holding period for 2016 was 70 days. 3 TOTAL MARKS 40 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 6 DBE/2017 SCE – Answer Book QUESTION 3 3.1 3.1.1 3.1.2 3.1.3 3.1.4 4 3.2 3.2.1 Factory Overhead Cost Note 14 3.2.2 Production Cost Statement for the year ended 28 February 2017 Prime cost Total manufacturing cost 4 824 000 Cost of production of finished goods 10 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 7 DBE/2017 SCE – Answer Book 3.2.3 Infinity Hats are considering importing raw materials at a lower price than they are currently paying. Provide TWO points they should consider before deciding. 4 3.3 SANYATI BAKERY 3.3.1 PROBLEM WITH FIGURES SOLUTION Doughnut factory Cake factory 6 3.3.2 Provide workings to show that the break-even point of 158 298 units for the doughnuts in 2016 was correctly calculated. 3 3.3.3 Explain why Damon should be concerned over the break-even point of doughnuts. Quote figures. 3 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 8 DBE/2017 SCE – Answer Book 3.3.4 COMMENT ON PRICE AND DEMAND PRODUCT (WITH FIGURES) Doughnuts Cakes 6 TOTAL MARKS 50 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 9 DBE/2017 SCE – Answer Book KEEP THIS PAGE BLANK. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 10 DBE/2017 SCE – Answer Book QUESTION 4 4.1 4.1.1 4.1.2 4.1.3 4.1.4 4 4.2 MTOMBENI LTD 4.2.1 Calculate: Carrying value of the vehicle sold on 30 November 2016 5 Calculate: Total depreciation on equipment on 28 February 2017 7 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 11 DBE/2017 SCE – Answer Book 4.2.2 MTOMBENI LTD Income Statement (Statement of Comprehensive Income) for the year ended 28 February 2017: Sales (5 500 000 Cost of sales (3 150 000 Operating expenses Directors' fees 380 000 Audit fees 54 000 Operating profit Interest income Net profit after interest income Net profit before tax Income tax Net profit after tax 864 000 54 TOTAL MARKS 70 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 12 DBE/2017 SCE – Answer Book QUESTION 5 5.1 5.1.1 5.1.2 5.1.3 5.1.4 4 5.2 MIHKA LTD 5.2.1 ORDINARY SHARE CAPITAL Authorised Share Capital 800 000 ordinary shares Issued Share Capital 600 000 Ordinary shares on 1 January 2016 4 200 000 100 000 6 RETAINED INCOME Balance on 1 January 2016 276 000 9 5.2.2 CASH EFFECTS OF OPERATING ACTIVITIES Cash generated from operations 1 237 400 9 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 13 DBE/2017 SCE – Answer Book 5.2.3 Amounts in the Cash Flow Statement: Calculate: Change in fixed deposit 3 Calculate: Proceeds on disposal of equipment 6 5.2.4 Calculate: Mark-up percentage on cost 4 Calculate: Debt-equity ratio 4 Calculate: Net asset value (in cents) 3 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 14 DBE/2017 SCE – Answer Book 5.2.5 The financial director was questioned about the decision to increase the loan. Explain what he should say to justify this decision. Quote TWO financial indicators (with figures). 6 5.2.6 Ashraf, a new shareholder, bought 70 000 shares on 31 August 2016. He expected the company to distribute at least 80% of its earnings as it did in 2015. Ashraf is unhappy with the dividend pay-out policy for 2016. Provide a calculation to support his opinion. 3 Explain TWO points to support the company's decision regarding dividends for 2016. 4 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 15 DBE/2017 SCE – Answer Book 5.2.7 Comment on the re-purchase price paid for the 40 000 shares on 30 December 2016. Provide TWO financial indicators (with figures) in your comment. 4 TOTAL MARKS 65 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 16 DBE/2017 SCE – Answer Book QUESTION 6 6.1 Comment on the control of EACH item and give ONE point of advice in each case. COMMENT ADVICE Telephone Staff training 4 6.2 Identify TWO items incorrectly entered in the Cash Budget. 2 6.3 CREDITORS' PAYMENT SCHEDULE CREDIT MONTH MAY JUNE PURCHASES March R64 000 6 400 April R72 000 10 800 May 57 000 June R96 000 74 200 9 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 17 DBE/2017 SCE – Answer Book 6.4 CALCULATION AMOUNT Cash sales (i) Cash purchases of stock (ii) Delivery expenses (iii) Salaries and wages (iv) Repayment of loan (v) Cash at end of month (vi) Cash deficit for the month (vii) 21 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 18 DBE/2017 SCE – Answer Book 6.5 Piet wants to save on costs by not offering a free delivery service. Is this a good idea? Explain. 3 6.6 Explain ONE advantage and ONE disadvantage of each option. OPTION ADVANTAGE DISADVANTAGE Raise a new loan Hire (lease) the assets from Computer Solutions Ask a friend to become equal partner 6 TOTAL MARKS 45 TOTAL: 300 Copyright reserved