Accounting Grade 12 IEB Paper 1 2018 Question Paper

Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE EXAMINATION NOVEMBER 2018 ACCOUNTING: PAPER I EXAMINATION NUMBER Time: 2 hours 200 marks PLEASE READ THE FOLLOWING INSTRUCTIONS CAREFULLY 1. This question paper consists of 11 pages, an Information Booklet of 7 pages (i–vii) and a Formula Sheet of 1 page (i). Please check that your question paper is complete. 2. Read the questions carefully. 3. Answer the questions in the space provided. 4. It is in your own interest to write legibly and to present your work neatly. 5. You may not use red or green ink. You may use a pencil, but please use a soft, dark pencil. 6. All calculations should be rounded off to two decimal places. 7. The allocation of marks and appropriate time to be taken for each question are as follows: Possible Actual Marker Moderator marks marks signature signature Question 1: Manufacturing and Asset Disposal 62 (37 minutes) Question 2: Financial Statements 62 (37 minutes) Question 3: Cash Flow Statement 43 (26 minutes) Question 4: VAT and Inventory 33 (20 minutes) TOTAL 200 IEB Copyright © 2018 PLEASE TURN OVER

Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE: ACCOUNTING: PAPER I Page 2 of 11 QUESTION 1 MANUFACTURING & ASSET DISPOSAL [62 marks; 37 minutes] Refer to the Information Booklet for information relating to Hammond Huts. 1.1 Complete the Tangible Asset Note as it would have appeared in the Statement of Financial Position as at 30 June 2018. You may use the calculation blocks below to show your workings, but write your final answer in the Note next to the question marks (?). Vehicle depreciation calculations New Total (4) Machinery depreciation calculations Depreciation of old machinery sold Depreciation of machinery not sold (7) Accumulated depreciation at end of Total depreciation for year year (5) Disposal of machinery Disposal (2) IEB Copyright © 2018

Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE: ACCOUNTING: PAPER I Page 3 of 11 Vehicles Machinery Carrying value on 1 July 2017 ? 550 000 Cost 1 400 000 ? Accumulated depreciation ? (270 000) MOVEMENTS Additions ? – Disposals – ? Depreciation ? ? Carrying value on 30 June 2018 ? ? Cost 1 700 000 ? Accumulated depreciation ? ? (12) 1.2 Complete the Direct Labour Note as it would have appeared on 30 June 2018: (11) 1.3 Complete the Factory Overheads Note as it would have appeared on 30 June 2018: (9) IEB Copyright © 2018 PLEASE TURN OVER

Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE: ACCOUNTING: PAPER I Page 4 of 11 1.4 Calculate the cost of finished goods produced during the year ended 30 June 2018: (4) 1.5 Complete the Production Cost Statement for the year ended 30 June 2018: Direct/Prime costs Total manufacturing costs Cost of production of finished goods (8) 62 IEB Copyright © 2018

Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE: ACCOUNTING: PAPER I Page 5 of 11 QUESTION 2 FINANCIAL STATEMENTS [62 marks; 37 minutes] Refer to the Information Booklet for information relating to NDIV Limited. All workings need to be shown as part marks will be allocated to them. You may use the calculation blocks on the next page to show your workings, but your final answer must be written in the Statement of Comprehensive Income. The number of lines does not represent the number of entries required. 2.1 Complete the Statement of Comprehensive Income (Income Statement) for the year ending 28 February 2018. NDIV Limited Statement of Comprehensive Income for the year ending 28 February 2018 Net sales (3 321 000 Cost of sales (2 214 000 Gross profit Other operating incomes Do not calculate • Rent income • Discount received (3 300 • • Gross operating income Do not calculate Operating expenses Do not calculate • Directors' fees 56 000 • Audit fees (30 000 • Consumable stores (14 600 • Bad debts (1 500 • Depreciation • • • • Operating profit before interest Do not calculate Interest income 0 Profit before interest expense Do not calculate Interest expense (30 000 Profit before taxation Do not calculate • Taxation for the year Net profit after taxation Do not calculate (25) IEB Copyright © 2018 PLEASE TURN OVER

Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE: ACCOUNTING: PAPER I Page 6 of 11 Calculations Trading stock deficit Interest expense Rent income Profit/loss on sale of asset (13) 2.2 Complete the following Notes to the Financial Statements as it would have appeared on 28 February 2018. All workings must be shown to be awarded part marks. TRADE AND OTHER RECEIVABLES AMOUNT Net trade debtors Do not calculate Trade debtors Provision for bad debts Do not calculate (10) TRADE AND OTHER PAYABLES AMOUNT Trade creditors (99 000 Do not calculate (10) IEB Copyright © 2018

Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE: ACCOUNTING: PAPER I Page 7 of 11 2.3 Both audit fees and director fees are listed as expenses in the Statement of Comprehensive Income. What is the difference between the role of an auditor and the role of a director? (2) 2.4 2.4.1 What was the interim dividend per share? (1) 2.4.2 Give one reason why you think the final dividend was so much less than the interim dividend. (1) 62 IEB Copyright © 2018 PLEASE TURN OVER

Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE: ACCOUNTING: PAPER I Page 8 of 11 QUESTION 3 CASH FLOW STATEMENT [43 marks; 26 minutes] Refer to the Information Booklet for information relating to Stubar Ltd. 3.1 Complete the Reconciliation Note between profit before taxation and cash generated from operations for the year of the Cash Flow Statement for the year ended 30 September 2018. You may use the calculation blocks below the Reconciliation Note to do your workings, but your final answer must be written in the Reconciliation Note. 1. Reconciliation between profit before taxation and cash generated from operations • Profit before tax Adjustments in respect of: • Depreciation • Operating profit before changes in working capital 950 000 Changes in working capital: • • • Cash generated from operations (15) Calculations Calculate trade and other Calculate trade and other receivables payables (7) IEB Copyright © 2018

Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE: ACCOUNTING: PAPER I Page 9 of 11 3.2 Calculate the following amounts. 3.2.1 Dividends paid Workings Amount paid (5) 3.2.2 Tax paid Workings Amount paid (6) 3.3 Complete the Cash Flows from Financing Activities Section of the Cash Flow Statement for the year ended 30 September 2018. CASH FLOWS FROM FINANCING ACTIVITIES Do not calculate • Repayment of loan • • Proceeds from issue of shares • (10) 43 IEB Copyright © 2018 PLEASE TURN OVER

Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE: ACCOUNTING: PAPER I Page 10 of 11 QUESTION 4 VAT AND INVENTORY [33 marks; 20 minutes] Refer to the Information Booklet for information relating to Shick Chicken. Refer to Information A and B to answer Questions 4.1– 4.4. Refer to Information C to answer Question 4.5. 4.1 Calculate the rand value of the closing stock on 30 November 2018. (5) 4.2 Calculate the cost of sales for the financial year. Opening stock Purchases (11) 4.3 Calculate the mark-up achieved by Shick Chicken for the financial year. (4) IEB Copyright © 2018

Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE: ACCOUNTING: PAPER I Page 11 of 11 4.4 Considering the type of product they buy and sell, which two stock control measures are absolutely essential in order to avoid possible legal action being taken against them? • • (4) 4.5 Use only Information C to calculate VAT. Then circle if this is to be paid to SARS or received from SARS. (Some amounts might include cents). Calculations Amount Owed to SARS Owed by SARS (9) 33 Total: 200 marks IEB Copyright © 2018