Accounting Nov 2015 Answer Book Eng_hlayiso.com_.pdf

Downloaded from hlayiso.com CENTRE NUMBER EXAMINATION NUMBER NATIONAL SENIOR CERTIFICATE ACCOUNTING GRADE 12 NOVEMBER 2015 SPECIAL ANSWER BOOK QUESTION MARKS INITIAL MOD. 1 2 3 4 5 6 TOTAL This answer book consists of 15 pages. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 2 DBE/November 2015 NSC – Answer Book QUESTION 1 1.1 BANK RECONCILIATION AND INTERNAL CONTROL 1.1.1 Calculate the correct bank balance on 30 June 2015. Cash Receipts Journal Cash Payments Journal (figures only) (figures only) 87 220 74 860 Bank balance on 30 June 2015: 13 1.1.2 Bank Reconciliation Statement on 30 June 2015 8 1.1.3 Refer to Information E. Identify TWO separate problems with evidence. Give advice for EACH problem. PROBLEM WITH EVIDENCE ADVICE 6 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 3 DBE/November 2015 NSC – Answer Book 1.2 DEBTORS' AGE ANALYSIS 1.2.1 As the internal auditor, what concerns would you have over Susan's job description? Explain. 2 1.2.2 Identify TWO debtors who could have their credit limits increased. 2 1.2.3 Explain THREE different problems reflected by the Debtors' Age Analysis. Give evidence. Explanation of problem with evidence Problem 1 Problem 2 Problem 3 9 TOTAL MARKS 40 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 4 DBE/November 2015 NSC – Answer Book QUESTION 2 2.1 INVENTORY VALUATION 2.1.1 Explain the difference between the perpetual stock system and the periodic stock system. 2 2.1.2 Calculate the value of the stock on hand on 28 February 2015 using the weighted-average method. 9 2.1.3 Calculate how long (in days) it will take to sell the closing stock of 650 jackets. Use the closing stock in your calculation. 5 2.1.4 Calculate the value of the closing stock using the FIFO method. 6 Give ONE reason in favour of changing to the FIFO method. Give ONE reason against changing to the FIFO method. 4 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 5 DBE/November 2015 NSC – Answer Book 2.2 INTERNAL CONTROL 2.2.1 Calculate the number of shirts stolen. Give TWO points of advice. 9 2.2.2 Product Comment on stock- Explanation on how it will holding period and give affect the business figures Jackets Shirts Jeans 9 2.2.3 Josy is unsure whether she is charging the right prices for her products. Give her advice on EACH product. Quote figures. Product Advice with figures Jackets Shirts Jeans 6 TOTAL MARKS 50 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 6 DBE/November 2015 NSC – Answer Book QUESTION 3 3.1 PRIDONA LIMITED 3.1.1 Calculation of the correct net profit after tax Incorrect net profit 2 493 600 Correct net profit before tax Income tax Net profit after tax 13 3.1.2 RETAINED INCOME NOTE ON 30 JUNE 2015 Balance at beginning of year 2 700 000 Dividends Balance at end of year 11 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 7 DBE/November 2015 NSC – Answer Book 3.1.3 PRIDONA LIMITED BALANCE SHEET AS AT 30 JUNE 2015 ASSETS NON-CURRENT ASSETS 8 950 000 Fixed assets at carrying value 8 950 000 CURRENT ASSETS Inventories Trade and other receivables Cash and cash equivalents TOTAL ASSETS EQUITY AND LIABILITIES ORDINARY SHAREHOLDERS' EQUITY Ordinary share capital 5 572 000 Retained income NON-CURRENT LIABILITIES CURRENT LIABILITIES Trade and other payables TOTAL EQUITY AND LIABILITIES 30 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 8 DBE/November 2015 NSC – Answer Book 3.2 AUDIT REPORT 3.2.1 Choose the correct word from those given in brackets. Give a reason. 2 3.2.2 Explain TWO consequences of this audit report for the company and/or the CEO. 4 TOTAL MARKS 60 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 9 DBE/November 2015 NSC – Answer Book QUESTION 4 4.1 4.1.1 4.1.2 4.1.3 4.1.4 4 4.2 SENZO LTD 4.2.1 Calculate income tax paid. 5 Calculate proceeds from disposal of fixed assets (carrying value). 5 Calculate net change in cash and cash equivalents. Indicate whether this is a net inflow or net outflow of cash. 5 4.2.2 CASH EFFECTS OF FINANCING ACTIVITIES 12 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 10 DBE/November 2015 NSC – Answer Book 4.2.3 Calculate the acid-test ratio for 2015. 4 Calculate the return on shareholders' equity (ROSHE) for 2015. (Use average equity in your calculation.) 5 Calculate the net asset value (NAV) per share for 2015. 3 4.3 DON LTD AND KEY LTD 4.3.1 Comment on the value of the shares of the two companies on the Johannesburg Securities Exchange (JSE). Explain how this will influence your choice of company. 6 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 11 DBE/November 2015 NSC – Answer Book 4.3.2 Compare and comment on the dividend pay-out policies of the two companies. 6 4.3.3 Comment on the degree of risk and gearing. Explain how this will influence your choice of company. 6 4.3.4 Apart from the points mentioned above, what other factors would you consider before deciding in which company you are going to invest? Explain TWO points. 4 TOTAL MARKS 65 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 12 DBE/November 2015 NSC – Answer Book QUESTION 5 5.1 BRUCE TRADERS CASH BUDGET FOR NOVEMBER AND DECEMBER 2015 CASH BUDGET NOVEMBER 2015 DECEMBER 2015 R R CASH RECEIPTS: Cash sales 399 000 Cash from debtors 536 025 597 975 Commission income Total receipts CASH PAYMENTS: Cash purchases of stock 114 000 Payments to creditors 520 000 Sundry expenses 22 500 Total payments 935 280 874 210 Surplus (deficit) 26 745 Opening bank balance (56 000) Closing bank balance (29 255) 25 5.2 SLEEPEZI BEDS (PTY) LTD 5.2.1 Calculate the percentage increase in the amount budgeted for salaries and wages for October 2015. Should the employees be satisfied with this? Explain. 3 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 13 DBE/November 2015 NSC – Answer Book 5.2.2 The financial director is pleased with the work being done by the bookkeeper and internal auditor. Identify an expense that indicates that he is correct. Explain your answer. 3 5.2.3 Comment on how the new competitor has affected the sales of Sleepezi Beds. Provide figures. Explain how Sleepezi Beds has responded to this problem. Provide THREE points. Provide figures. Point 1 Point 2 Point 3 13 5.2.4 Comment on the cash balances. Provide figures. Explain how the directors can improve the cash balances in future. Explain TWO points. 6 TOTAL MARKS 50 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 14 DBE/November 2015 NSC – Answer Book QUESTION 6 6.1 SNAZZY HANDBAGS PRODUCTION COST STATEMENT ON 30 SEPTEMBER 2015 R Prime cost Manufacturing cost Total cost of production 21 6.2 HEALTHY LIFESTYLE COOKWARE 6.2.1 Calculate the variable cost per unit for 2015. 3 Calculate the break-even point for 2015. 5 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 15 DBE/November 2015 NSC – Answer Book 6.2.2 Explain why the owner should be concerned about the break-even point and level of production. Provide TWO points. Provide figures. Point 1 Point 2 4 6.2.3 Identify ONE other problem relating to this business. Provide figure(s). 2 TOTAL MARKS 35 TOTAL: 300 Copyright reserved