Accounting Grade 10 P2 Eastern Cape November 2018 QP (Eng)

Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE GRADE 10 NOVEMBER 2018 ACCOUNTING P2 MARKS: 150 TIME: 2 hours This question paper consists of 7 pages and a 10 page answer book.

Downloaded from hlayiso.com 2 ACCOUNTING P2 (EC/NOVEMBER 2018) INSTRUCTIONS AND INFORMATION Read the following instructions carefully and follow them precisely. 1. A special ANSWER BOOK is provided in which you must answer ALL the questions. 2. Show ALL workings to earn part-marks. 3. You may use a non-programmable calculator. 4. You may use a dark pencil or black/blue ink to answer the questions. 5. Where applicable, show all calculations to ONE decimal point. 6. A breakdown of the questions is provided. You must attempt to comply with the suggested time allocation for each question. QUESTION 1: 25 marks; 20 minutes Topic of the question: This question integrates: Financial accounting  VAT concepts Internal control, VAT Managing resources  Control of cash and stock QUESTION 2: 45 marks; 35 minutes Topic of the question: This question integrates Cost accounting  Calculating production cost Cost accounting and internal control Managing resources  Control of raw materials and work in progress QUESTION 3: 25 marks; 20 minutes Topic of the question: This question integrates: Cost accounting  Concepts Budget  Budget  Managing costs QUESTION 4: 55 marks; 45 minutes Topic of the question: This question integrates: Managing resources Reconciliation and general ledger  Control of debtors and trading stock Copyright reserved Please turn over Please turn over

Downloaded from hlayiso.com (EC/NOVEMBER 2018) ACCOUNTING P2 3 QUESTION 1: INTERNAL CONTROL AND VAT (25 marks; 20 minutes) 1.1 INTERNAL CONTROL Read the following scenario and answer the questions that follow. Lennox High’s Grade 10 learners have been running a small tuck-shop business at school during break time. They are a group of five who help each other at the tuck-shop. They have been recording everything they do. They kept their stock in an unlocked cupboard in the accounting teacher’s classroom. Their cash was put in a shoe box and also put inside that cupboard. Two weeks after beginning their project, they were disappointed to notice that their trading stock and cash were missing. They have asked one of the Grade 12 Accounting learners to look at their books and check how much their loss is. 1.1.1 The Grade 12 learner acts as their (internal / external) auditor. (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. (12) 1.2 VAT STATEMENTS Indicate whether the following statements are TRUE or FALSE. 1.2.1 VAT is payable to SARS. 1.2.2 VAT input is the value added tax that is charged to customers. 1.2.3 Any business with sales of more than R200 000 must register as a VAT vendor. 1.2.4 Certain basic foods and essential items are zero-rated to assist the poor. 1.2.5 Most businesses mark their stock with the selling price including VAT. 1.2.6 VAT is payable when VAT output exceeds VAT input. (6) 1.3 VAT ANALYSIS Analyse the following items by making a cross (X) in the appropriate column. GOODS / SERVICES 15% VAT 0% VAT VAT EXEMPT 1.3.1 Petrol 1.3.2 New cash register 1.3.3 Brown bread 1.3.4 School fees of public school 1.3.5 Salary of hotel manager (5) 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) Win-Wood Manufacturers make wooden tables for outdoor use. The target of the factory is 250 tables per month. REQUIRED: 2.1 Calculate the total cost of production for the month, according to the following steps: 2.1.1 Direct material cost for 250 tables (20) 2.1.2 Direct labour cost for 250 tables (4) 2.1.3 Prime cost (2) 2.1.4 Calculate the overhead cost (7) 2.1.5 Calculate the total production cost for 250 tables (2) 2.2 Calculate the unit cost per table. (3) 2.3 Calculate the selling price per unit if the mark-up is 30%. (3) 2.4 Win-Wood Manufacturers experience huge losses due to errors made during production. Give TWO solutions to solve this problem. (4) INFORMATION: The following materials are required to make one table. R10 per m 12 slatted pieces x 2,8 m Wood R12 per m 8 square pieces x 4 m Brass screws R3 per packet of 50 2 packets Sandpaper R6 per sheet 6 sheets Varnish R20 per litre 1 litre Labour rate R20 per hour 5 hours per table Factory insurance R3 000 per month Factory: R3 000 Rent R6 000 per month Admin block: R3 000 Consumable stores R200 Gloves, dust masks Hand cleaner, varnish Cleaning aids R150 remover Manager: R12 000 Receptionist: R4 500 Salaries Factory manager: R8 000 Factory cleaner: R2 800 45 Copyright reserved Please turn over Please turn over

Downloaded from hlayiso.com (EC/NOVEMBER 2018) ACCOUNTING P2 5 QUESTION 3: BUDGET (25 marks; 20 minutes) 3.1 Indicate whether the following statements are TRUE or FALSE. 3.1.1 A long term budget is drawn up for a period of five years. 3.1.2 Capital budget is the same as the cash budget. 3.1.3 Shortfall is when you receive more money than what you spend. 3.1.4 A cash budget is a plan showing only the money expected to be received 3.1.5 A zero budget is drawn up each year. (5) 3.2 Grade 11 learners are usually responsible to organise the matric farewell. Since Grade 10 learners need to be knowledgeable, it is important to take note of what the 2018 Grade 11s did. REQUIRED: 3.2.1 Prepare a budget for the 2019 matric farewell using the information supplied. (10) 3.2.2 Make a suggestion to cut the costs for décor and food for the 2019 matric farewell. (4) 3.2.3 Name ONE other possible fundraising method. (2) 3.2.4 Name TWO sources of income and TWO expenses found on a household budget. (4) INFORMATION: Dѐcor 5 000 Catering 24 000 Rent of the venue 6 000 Cake sale 2 000 Donations 6 000 Soccer tournament 17 600 Raffle 4 500 Sale of bunny chows 3 900 25 Copyright reserved Please turn over

Downloaded from hlayiso.com 6 ACCOUNTING P2 (EC/NOVEMBER 2018) QUESTION 4: RECONCILIATIONS AND GENERAL LEDGER (55 marks; 45 minutes) 4.1 RECONCILIATION REQUIRED: 4.1.1 Draw up the amended Debtors Control account as at 30 September 2018. (16) 4.1.2 Make the necessary adjustments to the debtors list. Show all calculations. (7) 4.1.3 Name TWO strategies that can be implemented to encourage debtors to pay their accounts on time. (4) INFORMATION: The inexperienced bookkeeper of Spaza Traders prepared the following Debtors Control account on 30 September 2018. GENERAL LEDGER OF SPAZA TRADERS DEBTORS CONTROL Sep 1 Balance b/d 41 550 Sep 30 Bank CPJ 95 30 Sales DJ 95 350 Debtors allowances DAJ 574 Bank CRJ 90 936 Journal credits GJ 292 Journal debits GJ 508 Balance c/d 227 383 228 344 228 344 Oct 1 Balance b/d 227 383 Debtors list C Rode 0 D Mahoman 130 RE Truter 35 641 Master & Sons 7 000 Errors and omissions  C Rode’s cheque for R95 was returned by the bank marked “insufficient funds”, this has been recorded. C Rode had previously settled his debt of R105.  D Mahoman, a debtor, is insolvent and the balance of R130 on his account must be written off as a bad debt. No entry has been made.  The Debtors Journal is overcast by R3 000.  A debit note for R180 in respect of goods returned to RE Traders (a creditor) was entered in the Debtors Allowances Journal by mistake and posted to the account of RE Truter in the debtors’ ledger.  Master & Sons, a creditor, who has a debit balance of R7 000, appears on the debtors list. Copyright reserved Please turn over Please turn over

Downloaded from hlayiso.com (EC/NOVEMBER 2018) ACCOUNTING P2 7 4.2 GENERAL LEDGER REQUIRED: 4.2.1 Complete the Trading Stock account by supplying the missing information (A – J). (11) 4.2.2 Give ONE possible explanation for the entry of R2 220. (2) 4.2.3 Give TWO possible explanations for the entry of R60. (4) GENERAL LEDGER OF NT TRADERS Trading Stock Sep 1 Balance b/d A Sep 30 Creditors Control F 950 30 B CPJ 6 880 G CRJ 9 200 Creditors Control C 7 430 Cost of sales H 8 500 D DAJ 2 220 I GJ 60 Petty Cash E 90 Balance c/d 2 410 Oct 1 Balance b/d J 4.3 INTERNAL CONTROL M Snook is employed by NT Traders. It is her duty to order stock, to record all transactions relating to these orders and to pay the suppliers. She frequently buys stock from regular suppliers for the personal use of the owner and staff members. She is too busy with her other duties to do the quarterly stocktaking as requested. 4.3.1 Name and explain the GAAP principle that should be applied in the above scenario. (3) 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. (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. (2) 55 TOTAL: 150 Copyright reserved Please turn over