ACCOUNTING P1 GR10 ANSWERBOOK NOV2020 English hlayiso.com

NAME: NATIONAL SENIOR CERTIFICATE GRADE 10 NOVEMBER 2020 ACCOUNTING P1 ANSWER BOOK (EXEMPLAR) QUESTION MAX. MARKS MARKS MODERATED OBTAINED MARKS 1 24 2 49 3 55 4 22 TOTAL 150 This answer book consists of 9 pages.

2 ACCOUNTING P1 (EC/NOVEMBER 2020) QUESTION 1: ACCOUNTING CONCEPTS AND ACCOUNTING EQUATION 1.1 CONCEPTS 1.1.1 1.1.2 1.1.3 1.1.4 4 1.2 ACCOUNTING EQUATION NO. ASSETS OWNER’S EQUITY LIABILITIES REASON EFFECT REASON EFFECT REASON EFFECT 1.2.1 1.2.2 1.2.3 1.2.4 (a) (b) 20 Q1: TOTAL MARKS 24 Copyright reserved Please turn over

(EC/NOVEMBER 2020) ACCOUNTING P1 3 QUESTION 2: CONCEPTS AND INCOME STATEMENT 2.1 CONCEPTS 2.1.1 2.1.2 2.1.3 2.1.4 4 2.2.1 INCOME STATEMENT OF KINGSTON TRADERS FOR THE YEAR ENDED 29 FEBRUARY 2020 Sales Cost of Sales Gross Profit Other operating Income Discount received 830 Gross operating income Operating Expenses Discount allowed 1 260 Stationery 8 800 Operating Profit Profit before Interest Expense Net Profit for the Year 45  operation, one part correct, Foreign entries -1 (max. 2), accept alternative format (two columns) Q2: TOTAL MARKS 49 Copyright reserved Please turn over

4 ACCOUNTING P1 (EC/NOVEMBER 2020) QUESTION 3: CONCEPTS, FIXED ASSETS, BALANCE SHEET, INTERPRETATION AND INTERNAL CONTROL 3.1 3.1.1 3.1.2 3.1.3 3.1.4 4 3.2 3.2.1 (a) (b) (c) (d) 14 Copyright reserved Please turn over

(EC/NOVEMBER 2020) ACCOUNTING P1 5 3.2.2 BALANCE SHEET OF OBBIE TRADERS – 30 APRIL 2020 ASSETS NON-CURRENT ASSETS CURRENT ASSETS INVENTORIES 270 200 TOTAL ASSETS EQUITY AND LIABILITIES OWNER’S EQUITY 2 186 400 NON-CURRENT LIABILITIES CURRENT LIABILITIES TOTAL EQUTY AND LIABILITIES 22 2 600 000 Copyright reserved Please turn over

6 ACCOUNTING P1 (EC/NOVEMBER 2020) 3.3 Calculate the following financial indicators. (a) Current Ratio 3 (b) Acid test ratio 4 (c) Do you think that the business will experience liquidity problems in the near future? Explain briefly, with reference to the ratios in (a) and (b). 4 Copyright reserved Please turn over

(EC/NOVEMBER 2020) ACCOUNTING P1 7 3.4 Should the business repay the long-term loan as soon as sufficient funds are available? Explain briefly why you think this is advisable or not. 4 Q3: TOTAL MARKS 55 Copyright reserved Please turn over

8 ACCOUNTING P1 (EC/NOVEMBER 2020) QUESTION 4: CONCEPTS, WAGES JOURNAL AND INTERNAL CONTROL 4.1 CONCEPTS 4.1.1 4.1.2 4.1.3 4.1.4 4 4.2.1 How much cash must be withdrawn in order to pay the employees? 2 4.2.2 Briefly explain the difference between deductions and contributions. 4 4.2.3 Calculate the total number of overtime hours worked during the week. 5 Copyright reserved Please turn over

(EC/NOVEMBER 2020) ACCOUNTING P1 9 4.2.4 The medical aid details have remained the same for all four weeks during November 2020. Calculate the amount which must be paid to the medical fund by HMT Fruit and Vegetables at the end of November 2020. 3 4.2.5 There are approximately 80 employees in total. Briefly explain the TWO roles played by the clock-card system in ensuring that HMT Fruit and Vegetables do not pay any employee for work which he has not done. 4 Q4: TOTAL MARKS 22 TOTAL: 150 Copyright reserved Please turn over