Accounting Grade 12 NSC November 2012 Addendum (English)

Downloaded from hlayiso.com CENTRE NUMBER EXAMINATION NUMBER NATIONAL SENIOR CERTIFICATE ACCOUNTING GRADE 12 NOVEMBER 2012 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/November 2012 NSC – Answer Book QUESTION 1 1.1 Indicate whether the statements are TRUE or FALSE. 1.1.1 1.1.2 1.1.3 1.1.4 1.1.5 10 1.2 1.2.1 Calculate the total value of the opening stock (A). 3 1.2.2 Calculate the value of the tiles received on 25 April 2012 (B). 4 1.2.3 Calculate the value of the closing stock using the weighted- average method. 6 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 3 DBE/November 2012 NSC – Answer Book 1.3 1.3.1 Calculate the amount owed to SARS for VAT. 9 1.3.2 Amy has not yet submitted the VAT return. John Smith is the internal auditor. He has a CA qualification. He has noticed that an invoice for purchases from KZN Wholesalers amounting to R200 000 has been signed by Amy and recorded by the bookkeeper. On investigation he discovers that KZN Wholesalers does not exist. What should John Smith do about this? Explain. 3 TOTAL MARKS 35 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 4 DBE/November 2012 NSC – Answer Book QUESTION 2 2.1 Complete the following sentences in your own words: It is important to prepare a Bank Reconciliation Statement each month because It is important to prepare a Debtors' Age Analysis each month because 4 2.2 2.2.1 Which GAAP principle will the bookkeeper apply when writing off the amount of R40 000? Briefly explain this principle. 3 The bookkeeper wants to prevent a problem such as this in future. Give TWO solutions to improve internal control in this regard. 4 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 5 DBE/November 2012 NSC – Answer Book 2.2.2 BANK RECONCILIATION STATEMENT ON 31 MAY 2012 13 2.3 Identification of TWO different Internal control measure to problems, with evidence from the correct each problem question Problem 1 Problem 2 6 TOTAL MARKS 30 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 6 DBE/November 2012 NSC – Answer Book QUESTION 3 3.1 3.1.1 CAPE CHOCOLATES - NOTE TO THE PRODUCTION COST STATEMENT FOR THE YEAR ENDED 30 JUNE 2012 FACTORY OVERHEAD COST Total factory overhead cost 20 3.1.2 CAPE CHOCOLATES – PRODUCTION COST STATEMENT FOR THE YEAR ENDED 30 JUNE 2012 Prime cost Total cost of production Work-in-process on 1 July 2011 35 000 Work-in-process on 30 June 2012 Cost of production of finished goods 1 212 000 16 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 7 DBE/November 2012 NSC – Answer Book 3.2 3.2.1 BLANKETS TOWELS Which production cost caused the biggest problem? Explanation and figures to support your opinion Possible solution for Benny 6 3.2.2 Benny does not know how to calculate the break-even point. Give the workings to prove that the 2012 break-even point of 12 298 units for blankets is in fact correct. 4 3.2.3 Refer to the number of blankets produced and sold in 2012, and the break-even point for blankets. Explain why these figures should be of concern to Benny. Quote figures to support your answer. 4 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 8 DBE/November 2012 NSC – Answer Book 3.2.4 Which product should Benny increase in price by R15,00? Explain and quote figures to support your answer. In this case, estimate how much extra net profit he could earn next year assuming that his level of production and sales will remain unchanged. Give a calculation to support your answer. 5 TOTAL MARKS 55 Copyright reserved Please turn over

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Downloaded from hlayiso.com Accounting 10 DBE/November 2012 NSC – Answer Book QUESTION 4 4.1 Choose a description from COLUMN B that matches the term in COLUMN A. Write only the letter (A–D) next to the question number (4.1.1–4.1.4). 4.1.1 4.1.2 4.1.3 4.1.4 8 4.2 MASTER LIMITED 4.2.1 NOTE TO THE BALANCE SHEET ON 30 JUNE 2012 FIXED/TANGIBLE ASSETS LAND AND EQUIPMENT VEHICLES BUILDINGS Carrying value – 1 July 2011 R 930 000 R 220 000 R 519 200 Cost 930 000 561 000 814 000 Accumulated depreciation 0 (341 000) (294 800) Movements Additions at cost * * 0 Disposal at carrying value 0 0 * Depreciation 0 * (98 890) Carrying value – 30 June 2012 1 580 000 * * Cost 1 580 000 616 000 * Accumulated depreciation 0 * * 17 4.2.2 Calculate the Retained Income on 30 June 2012. (You may prepare an Appropriation Account if you wish.) 7 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 11 DBE/November 2012 NSC – Answer Book 4.2.3 MASTER LIMITED – BALANCE SHEET ON 30 JUNE 2012 ASSETS Non-current assets Fixed/Tangible assets Current Assets Inventories TOTAL ASSETS EQUITY AND LIABILITIES Ordinary shareholders' equity Ordinary share capital Retained income Non-current liabilities Current liabilities TOTAL EQUITY AND LIABILITIES 38 TOTAL MARKS 70 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 12 DBE/November 2012 NSC – Answer Book QUESTION 5 5.1 Write down the missing words. 5.1.1 5.1.2 5.1.3 5.1.4 5.1.5 10 5.2 5.2.1 Calculate the acid-test ratio. 4 5.2.2 Calculate the earnings per share (in cents). 4 5.2.3 Calculate the net asset value per share (in cents). 3 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 13 DBE/November 2012 NSC – Answer Book 5.2.4 Calculate the percentage return on average shareholders' equity. 5 5.2.5 Calculate the figures that will appear in the Cash Flow Statement for: Repayment of loans 2 Proceeds of issue of ordinary shares 4 Fixed assets purchased (Note that fixed assets with a book value of R105 000 were sold at carrying value.) 5 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 14 DBE/November 2012 NSC – Answer Book 5.3 5.3.1 James is of the opinion that Pomi Ltd is handling its working capital more effectively and is in a better liquidity situation than Kwela Ltd. Explain and quote THREE financial indicators to support his opinion. 9 5.3.2 Which company is making more use of loans? Quote a financial indicator for each company. Explain whether or not it was a good idea for that company to make use of loans. Quote ONE financial indicator. 6 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 15 DBE/November 2012 NSC – Answer Book 5.3.3 Kwela Ltd has a better percentage return, earnings and dividends than Pomi Ltd. Explain and quote THREE financial indicators for each company. 9 5.3.4 Explain why the existing shareholders of Kwela Ltd are happy with the current market value of their shares. Quote a financial indicator/figures to support your answer. Explain why the existing shareholders of Pomi Ltd are very disappointed with the current market value of their shares. Quote a financial indicator/figures to support your answer. 4 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 16 DBE/November 2012 NSC – Answer Book 5.4 How would these audit reports influence James in deciding in which company to buy shares? Explanation on the audit report of Kwela Ltd Explanation on the audit report of Pomi Ltd 5 TOTAL MARKS 70 Copyright reserved Please turn over

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Downloaded from hlayiso.com Accounting 18 DBE/November 2012 NSC – Answer Book QUESTION 6 6.1 Explain why it is important for Jim to prepare a Projected Income Statement. 2 6.2 Calculate the percentage increase in sales he expects in December. Explain why he has budgeted for this increase. 4 6.3 Calculate the mark-up percentage he actually achieved in October. Explain whether or not it was a good idea to change the mark-up percentage from its original target. 6 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 19 DBE/November 2012 NSC – Answer Book 6.4 Calculate the following figures in the Projected Income Statement: WORKINGS ANSWER Rent income for November 2012 Advertising for December 2012 Interest expense for November 2012 10 6.5 Refer to the actual and budgeted figures for October 2012. Identify the THREE overhead expenses that have been poorly controlled by Jim. Quote figures to support your answer. 6 What advice would you offer Jim to improve his internal control over these overhead expenses? Explain. 2 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 20 DBE/November 2012 NSC – Answer Book 6.6 Jim is of the opinion that he could benefit financially if he accepts Samuel's offer. State THREE points that would have a positive effect on his Projected Income Statement for January 2013 if he accepts the offer. Give figures or information from the question to support your answer. Point 1: Point 2: Point 3: 6 6.7 Jim is also conscious of the fact that there are negative points if he accepts the offer. State TWO points that Jim should consider before finalising his decision to sell the property. Explain. Point 1: Point 2: 4 TOTAL MARKS 40 TOTAL: 300 Copyright reserved