Accounting Grade 12 NSC November 2018 Addendum (English)

Downloaded from hlayiso.com STICKER CENTRE NUMBER EXAMINATION NUMBER NATIONAL SENIOR CERTIFICATE ACCOUNTING GRADE 12 NOVEMBER 2018 SPECIAL ANSWER BOOK QUESTION MARKS INITIAL MOD. 1 2 3 4 5 6 TOTAL This answer book consists of 17 pages. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 2 DBE/November 2018 NSC – Answer Book QUESTION 1 1.1 1.1.1 1.1.2 1.1.3 3 1.2 KRIGE SHIRTS 1.2.1 Calculate direct labour cost. 9 1.2.2 PRODUCTION COST STATEMENT FOR THE YEAR ENDED 31 JULY 2018 Direct material cost 528 300 Prime cost Total production cost Work-in-progress (1 August 2017) Cost of production of finished goods 12 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 3 DBE/November 2018 NSC – Answer Book 1.3 GEMMA'S MANUFACTURERS 1.3.1 Calculate the break-even point for the year ended 31 August 2018. 5 1.3.2 Compare and comment on the break-even point and the production level achieved over the last two years. Quote figures. 6 1.3.3 Give TWO reasons for the increase in direct material cost. Suggest ONE way to control this cost. REASONS: SUGGESTION: 5 TOTAL MARKS 40 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 4 DBE/November 2018 NSC – Answer Book QUESTION 2 2.1 VAT 2.1.1 WORKINGS ANSWER (a) (b) (c) (d) 10 2.1.2 You are the internal auditor. The sole owner, Samson, used a business cheque to buy a new car for R460 000 including VAT. This car is kept at home for his wife's use. Samson says the vehicle must be recorded as a business asset and R60 000 must be recorded as a VAT input in the business' books. Explain what you would say to Samson. Provide TWO points. Point 1 Point 2 4 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 5 DBE/November 2018 NSC – Answer Book 2.2 CREDITORS' RECONCILIATION 2.2.1 CREDITORS' LEDGER: STATEMENT OF ACCOUNT OF MARITI ACCOUNT SUPPLIERS Balance 147 820 145 060 (a) (b) (c) (d) (e) (f) 13 2.2.2 The internal auditor insists that direct payments (EFTs) must be used to pay suppliers. Explain ONE reason to support his decision. 2 Explain ONE internal procedure to ensure control over this system. 2 2.2.3 Besides dismissing Vernon, provide ONE suggestion for action to be taken against him. Provide ONE suggestion to prevent this problem in future. 4 TOTAL MARKS 35 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 6 DBE/November 2018 NSC – Answer Book QUESTION 3 3.1 3.1.1 3.1.2 3.1.3 3.1.4 4 3.2.1 TEMBISO LTD INCOME STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2018 Sales Cost of sales (4 856 000) Gross profit Other operating income 879 440 Gross income Operating expenses Salaries and wages 501 200 Operating profit Interest income Net profit before interest expense Interest expense Net profit before tax Income tax Net profit after tax 959 400 28 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 7 DBE/November 2018 NSC – Answer Book 3.2.2 ORDINARY SHARE CAPITAL AUTHORISED SHARE CAPITAL 1 600 000 ordinary shares ISSUED SHARE CAPITAL 1 480 000 Ordinary shares on 28 February 2018 8 816 000 7 RETAINED INCOME Balance on 1 March 2017 376 600 Ordinary share dividends 2 Balance on 28 February 2018 7 3.2.3 EQUITY AND LIABILITIES SECTION OF THE BALANCE SHEET SHAREHOLDERS' EQUITY Ordinary share capital 8 816 000 Retained income NON-CURRENT LIABILITIES CURRENT LIABILITIES Trade and other payables TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 16 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 8 DBE/November 2018 NSC – Answer Book 3.3 AUDIT REPORT 3.3.1 Point 1 Opinion 1 Point 2 IFRS and Companies Act 2 Point 3 Independent 2 3.3.2 Point 4 TWO examples of ethical responsibilities: Example 1: Example 2: 4 Point 5 TWO examples of audit evidence: Example 1: Example 2: 4 TOTAL MARKS 75 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 9 DBE/November 2018 NSC – Answer Book KEEP THIS PAGE BLANK. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 10 DBE/November 2018 NSC – Answer Book QUESTION 4 4.1 CALCULATION OF FINANCIAL INDICATORS FOR 2018 4.1.1 Calculate: % operating expenses on sales Workings Answer 2 4.1.2 Calculate: Acid-test ratio Workings Answer 4 4.1.3 Calculate: % return on shareholders' equity Workings Answer 4 4.2 FIGURES FOR 2018 CASH FLOW STATEMENT 4.2.1 Calculate: Change in investments Workings Answer 2 4.2.2 Calculate: Income tax paid Workings Answer 4 4.2.3 Calculate: Fixed assets sold (at carrying value) Workings Answer 5 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 11 DBE/November 2018 NSC – Answer Book 4.3 EXPLANATIONS ON CASH FLOW STATEMENT 4.3.1 Explain why the directors are satisfied with the improvement in cash and cash equivalents since 1 July 2016. Quote figures. 3 4.3.2 Identify THREE decisions that the directors made to pay for land and buildings. Decision 1 (with figures) Decision 2 (with figures) Decision 3 (with figures) 6 Explain how these decisions affected the capital employed in the 2018 financial year. Quote figures. Explain how these decisions affected the financial gearing in the 2018 financial year. Quote TWO indicators and their figures. 6 4.3.3 From the Cash Flow Statement identify ONE decision made by the directors in 2017 that they did NOT make in 2018, besides the points mentioned above. Give a possible reason for the decision in 2017. Decision (with figures) Possible reason 3 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 12 DBE/November 2018 NSC – Answer Book 4.4 DIVIDENDS, RETURNS AND SHAREHOLDING 4.4.1 Calculate: Total interim dividends paid for the 2018 financial year Workings Answer Calculate: Interim dividends per share for the 2018 financial year Workings Answer 6 4.4.2 Calculate total dividends earned by Dudu Mkhize for the 2018 financial year. Workings Answer 5 4.4.3 Calculate the minimum number of additional shares that Dudu should have bought. Workings Answer 3 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 13 DBE/November 2018 NSC – Answer Book 4.5.1 Explain why it was necessary to purchase properties in other provinces instead of in KZN. 2 Explain whether the decision to purchase these properties had the desired effect on sales. Quote figures. 3 Explain another strategy they used to solve the problem of low sales. Quote figures. 3 4.5.2 Give advice on what Ben Palo should say about the following topics: Advice on what to say on earnings per share: 3 Advice on what to say on % return earned: 3 Advice on what to say on share price on the JSE: 3 TOTAL MARKS 70 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 14 DBE/November 2018 NSC – Answer Book QUESTION 5 5.1 5.1.1 5.1.2 5.1.3 5.1.4 4 5.2 PACKER'S SUITCASE SHOP 5.2.1 Calculate the value of the closing stock on 30 June 2018 using the first- in-first-out method. Workings Answer 5 5.2.2 Charles suspects that suitcases have been stolen. Provide a calculation to support his concern. Workings Answer 5 5.2.3 Charles is concerned about the volume of stock on hand. Calculate for how long his closing stock is expected to last. Workings Answer 6 ONE problem with keeping too much stock on hand: ONE problem with keeping insufficient stock on hand: 4 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 15 DBE/November 2018 NSC – Answer Book 5.3 MINDEW LIMITED 5.3.1 WORKINGS ANSWER (i) (ii) (iii) (iv) (v) 17 5.3.2 Explain how the internal auditor should check that movable fixed assets were not stolen. 2 5.3.3 As an independent auditor, what advice would you give? Provide ONE point. 2 TOTAL MARKS 45 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 16 DBE/November 2018 NSC – Answer Book QUESTION 6 6.1 Debtors' Collection Schedule for October 2018 CREDIT MONTHS SEP. 2018 OCT. 2018 SALES July 369 600 81 312 August 384 400 211 420 September 403 200 76 608 October 420 000 369 340 7 6.2 Calculate: (i) Cash sales for September Workings Answer (ii) Rent income for October Workings Answer (iii) Payments to creditors in October Workings Answer 9 6.3 Calculate the % increase in salaries of sales assistants for October 2018. Workings Answer 3 Explain whether the sales assistants should be satisfied with this increase. 2 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 17 DBE/November 2018 NSC – Answer Book 6.4 Refer to Information E. 6.4.1 Explain the effect of the new competitor on any TWO items in the budget for September. Provide figures. 4 6.4.2 Identify TWO changes Donald implemented in October in response to the new competitor. Quote figures. Give ONE reason for EACH change. Item (with figures) Possible reason 6 6.4.3 Explain why Donald feels that his decisions were successful. Provide TWO points (with figures). Point 1 Point 2 4 TOTAL MARKS 35 TOTAL: 300 Copyright reserved

Downloaded from hlayiso.com Accounting DBE/November 2018 NSC – Answer Book RE-MARK/RE-CHECK HERMERK/HERSIEN Question Marks Initials Vraag Punte Voorletters 1 2 3 4 5 6 TOTAL TOTAAL Copyright reserved