ACCOUNTING P2 GR10 MEMO NOV2018 English hlayiso.com

Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE GRADE 10 NOVEMBER 2018 ACCOUNTING P 2 MARKING GUIDELINE MARKS: 150 This marking guideline consists of 10 pages.

Downloaded from hlayiso.com 2 ACCOUNTING P2 (EC/NOVEMBER 2018) GENERAL RULES: 1. Award full marks for the correct final answers. If the answer is incorrect, mark the workings provided. If a workings figure/amount is shown as a final answer, allocate the working mark. 2. “Method” marks are denoted by   In calculations and final totals, at least one part of the workings must be correct to earn the mark.  In cases where answers of previous questions must be used, check the transfer.  Ignore brackets on statements, but check the operation before awarding marks. 3. Where penalties are applied, the marks for that section cannot be a negative. (foreign items) 4. For questions requiring explanations and comments, award part-marks. A good explanation will normally mention and explain a point. Beware of alternative wording reflecting the same points. This marking guideline provides some explanations – they are not conclusive. Read the candidates’ responses and give credit for their interpretations. 5. Where appropriate/acceptable, accept recognisable abbreviations. 6. Educators are expected to work through the entire paper and make reasonable adjustments within the framework of the mark allocation. Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/NOVEMBER 2018) ACCOUNTING P2 (MARKING GUIDELINE) 3 QUESTION 1: INTERNAL CONTROL AND VAT (25 marks; 20 minutes) 1.1 INTERNAL CONTROL 1.1.1 Internal  2 1.1.2 Recommend THREE control measures or procedures that should be implemented in order to protect the trading stock and the cash from being stolen. TRADING STOCK    CASH    Any valid answer Any valid answer Keep trading stock in locked storage Cash should be kept in a suitable space at all times and lockable money box. Only one learner has the key to the Cash should be kept in a locked storage space storage space / safe. Do regular stock counts to match Cash should be banked regularly. sales with cash received 12 1.2 1.2.1 True  1.2.2 False  1.2.3 False  1.2.4 True  1.2.5 True  1.2.6 True  6 1.3 VAT GOODS / SERVICES 15% VAT 0% VAT EXEMPT 1.3.1 Petrol X  1.3.2 New cash register X  1.3.3 Brown bread X  School fees of public 1.3.4 X  school 1.3.5 Salary of hotel manager X  5 QUESTION 1 25 Copyright reserved Please turn over

Downloaded from hlayiso.com 4 ACCOUNTING P2 (EC/NOVEMBER 2018) QUESTION 2: COST ACCOUNTING AND INTERNAL CONTROL (45 marks; 35 minutes) 2.1 COST OF PRODUCTION 2.1.1 Direct material cost for 250 tables COST ITEM CALCULATION AMOUNT Wood 250  X 12  X 2,8  X 10  84 000  Wood 250 X 8  X 4  X 12  96 000  Brass screws 250 X 2  X 3  1 500  Sand paper 250 X 6  X 6  9 000  Varnish 250 X 20  5 000  TOTAL 195 500  20 2.1.2 Direct labour cost for 250 tables CALCULATION AMOUNT 250  X 5  X 20  25 000  4 2.1.3 Prime cost 195 500 + 25 000 = 220 000  2 2.1.4 Calculate the overhead cost Factory insurance 3 000  Rent 3 000  Consumable stores 200  Cleaning aids 150  Salary: Factory manager 8 000  Salary: Factory cleaner 2 800  Total 17 150  7 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/NOVEMBER 2018) ACCOUNTING P2 (MARKING GUIDELINE) 5 2.1.5 Calculate the total production cost for 250 tables 220 000 + 17 150 = 237 150  2 2.2 Calculate the unit cost per table 237 150  ÷ 250 = 948,60  3 2.3 Calculate the selling price per unit if the mark-up is 30%. 948,60  X 1,3 = 1 233,18  3 2.4 Win-Wood Manufacturers experience huge losses due to errors during production. Give TWO solutions to solve this problem. Any valid answer   Train machine operators Service machines regularly Improve supervision of production process 4 QUESTION 2 45 Copyright reserved Please turn over

Downloaded from hlayiso.com 6 ACCOUNTING P2 (EC/NOVEMBER 2018) QUESTION 3: BUDGET (25 marks; 20 minutes) 3.1 1.3.1 True  1.3.2 False  1.3.3 False  1.3.4 False  1.3.5 True  5 3.2.1 Prepare a budget for the 2019 matric farewell using the information supplied. INCOME Cake sale 2 000  Donations 6 000  Soccer tournament 17 600  Raffle 4 500  Sale of bunny chows 3 900  EXPENSES Décor 5 000  Catering 24 000  Rent of venue 6 000  SURPLUS / (SHORTFALL) (1 000)  10 3.2.2 Make a suggestion to cut on the costs for décor and food for the 2019 matric farewell. DÉCOR  FOOD  Any valid answer Any valid answer Plan properly to avoid unnecessary Parents do catering expenses Ask for donations of ingredients Make décor from recycled items 4 3.2.3 Name ONE other possible fundraising method. Any valid answer  Steak evening Dance 2 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/NOVEMBER 2018) ACCOUNTING P2 (MARKING GUIDELINE) 7 3.2.4 Name TWO sources of income and TWO expenses found on a household budget. INCOME   EXPENSES   Any valid answer Any valid answer Salary Water and electricity Interest Food and clothing Rent income Transport 4 QUESTION 3 25 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/NOVEMBER 2018) ACCOUNTING P2 (MARKING GUIDELINE) 8 QUESTION 4: RECONCILIATIONS AND GENERAL LEDGER (55 marks; 45 minutes) 4.1.1 GENERAL LEDGER OF SPAZA TRADERS Debtors Control Sep 1 Balance b/d 41 550 Sep 30 Bank CRJ  90 936 Debtors allowances 30 Sales 95350  – 3000 DJ  92 350 DAJ  394 574 - 180 Journal credits Bank CPJ  95 GJ  422 292+130 Journal debits GJ 518 Balance c/d  42 761 508+10 134 513 134 513 Oct 1 Balance b/d  42 761 16 4.1.2 Debtors list C Rode 0 + (95 + 10)  105  D Mahoman 130 – 130  0  RE Truter 35 641 + 180  35 821  Master & Sons 7 000 0  7 4.1.3 Name TWO strategies that can be implemented to encourage debtors to pay their accounts on time. Any valid answer   Add interest on overdue accounts Give discount for payment received on time Regularly send out accounts Follow up on overdue accounts 4 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/NOVEMBER 2018) ACCOUNTING P2 (MARKING GUIDELINE) 9 4.2.1 A 4 500  B Bank  C CJ  D Cost of sales  E PCJ  F CAJ  G Cost of sales  H DJ  I Drawings / donations/ any valid answer  J 2 410  11 4.2.2 Give ONE possible explanation for the entry of R2 220. Any valid answer  Unsatisfactory good returned by debtor 2 4.2.3 Give TWO possible explanations for the entry of R60. Any valid answer   Drawings of trading stock by owner Donation to school / old age home 4 4.3.1 Name and explain the GAAP principle that should be applied in the above scenario. Business entity  Transactions of owner should be kept separate from that of the business and should be recorded as drawings.  3 Copyright reserved Please turn over

Downloaded from hlayiso.com 10 ACCOUNTING P2 (EC/NOVEMBER 2018) 4.3.2 NT Traders do not have proper control of their trading stock. Identify THREE areas of concern and give a solution for each. AREA OF CONCERN    SOLUTION    M Snook has too many responsibilities Division of duties relating to ordering and recording of stock and payment of suppliers Stock ordered for personal use of owner Transactions of owner should be and staff members entered as drawings and staff members may only place orders with the necessary permission Regular stocktaking is not done Stock must be counted on a regular basis. Appoint more staff to assist M Snook 6 4.3.3 It has been noted that the quality of the trading stock supplied by one of the regular suppliers has deteriorated. Give ONE suggestion as to how NT Traders can overcome this problem. Any valid answer  Discuss the matter with the supplier Find another supplier with better quality 2 QUESTION 4 55 TOTAL: 150 Copyright reserved Please turn over