Accounting May June 2018 Answer Book Eng_hlayiso.com_.pdf

Downloaded from hlayiso.com STICKER CENTRE NUMBER EXAMINATION NUMBER SENIOR CERTIFICATE EXAMINATIONS ACCOUNTING GRADE 12 2018 SPECIAL ANSWER BOOK QUESTION MARKS INITIAL MOD. 1 2 3 4 5 6 TOTAL This answer book consists of 16 pages. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 2 DBE/2018 SCE – Answer Book QUESTION 1 1.1.1 CASH RECEIPTS JOURNAL CASH PAYMENTS JOURNAL R510 607 R488 260 14 1.1.2 Calculate the Bank Account balance in the Ledger of Hartfield Suppliers on 30 April 2018. R30 975 3 1.1.3 Bank Reconciliation Statement on 30 April 2018 8 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 3 DBE/2018 SCE – Answer Book 1.2 The internal auditor is concerned about the management of cash. 1.2.1 Explain TWO different problems to justify her concern. Quote figures. Problem 1: Problem 2: 4 1.2.2 Give advice (TWO points) on how such problems can be avoided in future. Point 1: Point 2: 2 1.3 Explain TWO benefits of using the electronic funds transfer (EFT) system rather than cheques for direct payments to suppliers. Benefit 1: Benefit 2: 4 TOTAL MARKS 35 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 4 DBE/2018 SCE – Answer Book QUESTION 2 2.1 2.1.1 2.1.2 2.1.3 2.1.4 4 2.2 TIGHT-FIT MANUFACTURERS 2.2.1 Calculate: Value of the closing stock of raw materials Workings Answer 4 Calculate: Value of direct/raw materials issued for production Workings Answer 3 Calculate: Correct factory overhead costs Workings Answer 746 670 6 2.2.2 Production Cost Statement for the year ended 31 March 2018. Direct labour cost Prime cost Total manufacturing costs Work-in-process at beginning of year 147 500 Cost of production of finished goods 12 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 5 DBE/2018 SCE – Answer Book 2.2.3 Give TWO reasons why the business should support local suppliers. Reason 1: Reason 2: 2 2.3 BREAK-TIME MANUFACTURERS 2.3.1 Calculate the direct labour cost for the year ended 30 April 2018. Workings Answer 2 Calculate the break-even point for the year ended 30 April 2018. Workings Answer 4 2.3.2 Explain why the owner should be concerned about the break-even point. Quote figures. 3 2.3.3 Explain why the owner would NOT be satisfied with the direct labour cost per unit. Quote figures. 3 Give ONE solution to this problem. 2 TOTAL MARKS 45 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 6 DBE/2018 SCE – Answer Book QUESTION 3 3.1.1 Calculate the value of the closing stock of bicycles on 31 May 2018. Workings Answer Tempo Cruze Ryder 8 Calculate the cost of sales for the year ended 31 May 2018. Workings Answer 4 Calculate the gross profit for the year ended 31 May 2018. Workings Answer 3 3.1.2 Calculate the selling price of a Ryder bicycle. Workings Answer 3 Calculate the average number of Ryder bicycles sold per month. Workings Answer 3 Indicate how long it will take Fred to sell the closing stock of the Ryder bicycles. Show calculations. Workings Answer 3 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 7 DBE/2018 SCE – Answer Book Give ONE possible reason for the slow sales of Ryder bicycles. Give advice (ONE point) to Fred in this regard. 4 3.2.1 Explain why it was NOT a good idea to change to a cheaper supplier of T-shirts. State TWO points. Point 1: Point 2: 4 3.2.2 Celia decided to change the supplier in 2018 and to change the mark-up %. How has this decision affected the business? State TWO points. Point 1: Point 2: 4 3.2.3 Make TWO separate suggestions to Celia to improve the profit on pants in 2019. Point 1: Point 2: 4 TOTAL MARKS 40 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 8 DBE/2018 SCE – Answer Book QUESTION 4 4.1 4.1.1 4.1.2 4.1.3 4.1.4 4.1.5 5 4.2 MODISE LTD 4.2.1 RETAINED INCOME NOTE Balance at beginning of year R567 000 Ordinary share dividends Balance at end of year 12 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 9 DBE/2018 SCE – Answer Book 4.2.2 MODISE LTD BALANCE SHEET ON 28 FEBRUARY 2018 ASSETS Non-current assets Fixed assets Current assets Inventories TOTAL ASSETS EQUITY AND LIABILITIES Ordinary shareholders' equity Ordinary share capital 13 650 000 Non-current liabilities Current liabilities 2 600 000 Trade and other payables Shareholders for dividends SARS: Income tax TOTAL EQUITY AND LIABILITIES 38 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 10 DBE/2018 SCE – Answer Book 4.2.3 The directors want to give R500 000 to a local school. Give TWO reasons why companies take such decisions. 4 4.3 AUDIT REPORT 4.3.1 Briefly explain the role of an independent auditor. 2 4.3.2 Did Denga Limited receive a qualified/unqualified/disclaimer of opinion audit report? Briefly explain your choice. 3 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 11 DBE/2018 SCE – Answer Book 4.3.3 State THREE possible consequences for the independent auditor if he had NOT mentioned the advertising expense in his report. Point 1: Point 2: Point 3: 6 TOTAL MARKS 70 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 12 DBE/2018 SCE – Answer Book QUESTION 5 5.1 5.1.1 5.1.2 5.1.3 5.1.4 4 5.2 MALOTRA LTD 5.2.1 Workings Answer (a) (b) (c) (d) (e) 16 5.2.2 Calculate the net profit after income tax on 28 February 2018. Workings Answer 3 5.2.3 Calculate the dividends paid. Workings Answer 4 Calculate the funds used to repurchase shares. Workings Answer 5 Calculate the proceeds from shares issued. Workings Answer 5 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 13 DBE/2018 SCE – Answer Book 5.2.4 Net change in cash and cash equivalents Cash and cash equivalents (opening balance) Cash and cash equivalents (closing balance) 4 5.2.5 Calculate the acid-test ratio. Workings Answer 4 Calculate the debt-equity ratio. Workings Answer 3 Calculate the return on average shareholders' equity. Workings Answer 5 5.2.6 The directors decided to increase the loan during the current financial year. Explain whether this was a good decision or not. Quote TWO financial indicators (with figures). 6 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 14 DBE/2018 SCE – Answer Book 5.2.7 Comment on the price paid for the shares repurchased on 1 January 2018. Quote TWO financial indicators (with figures). 5 5.2.8 Thandi Nene owns 416 000 shares in the company. When the directors decided to issue a further 200 000 shares during October 2017, she decided not to buy more shares and rather spend her funds on an overseas holiday. Explain why you feel Thandi has made the wrong decision. Quote relevant figures or calculations to support your opinion. Calculations: Explanation: 6 TOTAL MARKS 70 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 15 DBE/2018 SCE – Answer Book QUESTION 6 6.1.1 The main purpose of a Cash Budget is to … 6.1.2 The main purpose of a Projected Income Statement is … 4 6.2.1 Debtors' Collection Schedule: CREDIT SALES MAY 2018 JUNE 2018 March 2018 252 000 22 680 April 2018 288 000 172 800 May 2018 51 300 June 2018 216 000 Cash from debtors 246 780 7 6.2.2 Determine the discount allowed for May 2018. Workings Answer 3 Determine the bad debts written off in June 2018. Workings Answer 3 6.3 Calculate the cash sales for May 2018. Workings Answer 2 Calculate the payment to creditors in June 2018. Workings Answer 4 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 16 DBE/2018 SCE – Answer Book Calculate the salaries for May 2018. Workings Answer 5 6.4.1 Tony is not concerned about the overspending in advertising. Explain why this is so. Quote figures to support your answer. 4 6.4.2 State ONE consequence of not paying the amount due to creditors in April 2018. 2 6.4.3 State TWO points in favour of appointing Gentex Cleaning Services. Point 1: Point 2: Explain ONE point that Tony should consider before making this decision. 6 TOTAL MARKS 40 TOTAL: 300 Copyright reserved