Accounting Grade 12 P2 NSC June 2022 Question Paper (Eng)

Downloaded from hlayiso.com SENIOR CERTIFICATE EXAMINATIONS/ NATIONAL SENIOR CERTIFICATE EXAMINATIONS ACCOUNTING P2 2022 MARKS: 150 TIME: 2 hours This question paper consists of 15 pages, a formula sheet and a 10-page answer book. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 2 DBE/2022 SC/NSC INSTRUCTIONS AND INFORMATION Read the following instructions carefully and follow them precisely. 1. Answer ALL questions. 2. A special ANSWER BOOK is provided in which to answer ALL questions. 3. Show ALL workings to earn part-marks. 4. You may use a non-programmable calculator. 5. You may use a dark pencil or blue/black ink to answer questions. 6. Where applicable, show ALL calculations to ONE decimal point. 7. If you choose to do so, you may use the Financial Indicator Formula Sheet attached at the end of this question paper. The use of this formula sheet is NOT compulsory. 8. Write neatly and legibly. 9. Use the information in the table below as a guide when answering the question paper. Try NOT to deviate from it. QUESTION TOPIC MARKS MINUTES 1 VAT and Creditors' Reconciliation 30 20 2 Cost Accounting 45 35 3 Inventory Valuation 35 30 4 Budgeting 40 35 TOTAL 150 120 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 3 DBE/2022 SC/NSC QUESTION 1: VAT AND CREDITORS' RECONCILIATION (30 marks; 20 minutes) 1.1 VALUE-ADDED TAX (VAT) Chuckle Traders is registered for VAT, although the annual turnover is less than R1 000 000. The standard VAT rate is 15%. The business is owned by Chuckles Berry. REQUIRED: 1.1.1 Give ONE reason why Chuckles decided to register for VAT. (2) 1.1.2 Calculate the amount of VAT that is payable to SARS for the two-month period ended 30 April 2022. (9) 1.1.3 Chuckles uses the money collected for VAT to pay business expenses. He does not have sufficient cash to make the VAT payments on the due dates. What would you say to Chuckles? State TWO different/separate points. (2) INFORMATION: VAT-related transactions for the period ended 30 April 2022: Balance due by SARS on 1 April 2022 R2 600 Purchases of trading stock (excluding VAT) 59 000 Cash and credit sales (including VAT) 87 400 VAT on drawings of trading stock by Chuckles 1 200 VAT on returns from debtors 2 820 VAT on discount received from suppliers 3 360 1.2 CREDITORS' RECONCILIATION Mani Supermarket is owned by Mani Bloom. The business buys goods on credit from Lawes Wholesalers. REQUIRED: 1.2.1 Use the table provided in the ANSWER BOOK to show changes to the Creditors' Ledger account of Lawes Wholesalers in the books of Mani Supermarket and the statement of account received from Lawes Wholesalers, to take into account the differences identified. Indicate a '+' or '–' next to each amount. (13) 1.2.2 Mani feels that the creditors' clerk is not efficient in performing her duties.  Provide evidence to support his opinion. Give ONE point. (2)  Explain how he can solve this problem. (2) Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 4 DBE/2022 SC/NSC INFORMATION: A. CREDITORS' LEDGER OF MANI SUPERMARKET LAWES WHOLESALERS (CL6) DEBIT CREDIT BALANCE DATE DETAILS R R R 2022 1 Balance 41 200 April 3 Invoice 3381 7 800 49 000 8 Debit Note 149 640 49 640 15 Invoice BB55 11 400 61 040 18 Invoice 3886 12 800 73 840 24 EFT 425 14 620 59 220 Discount received 1 250 57 970 29 Invoice 4 243 9 900 67 870 B. Statement of account received from Lawes Wholesalers: LAWES WHOLESALERS STATEMENT OF ACCOUNT To: MANI Supermarket Credit limit: R45 000 Statement date: 26 April 2022 DEBIT CREDIT BALANCE DATE DETAILS R R R 2022 28 Balance b/d 56 200 Mar. 30 Receipt 376 15 000 41 200 Credit Note A11 750 40 450 Penalty for late payment 580 41 030 Penalty for late payment 580 41 610 2022 3 Invoice 3381 8 700 50 310 April 9 Credit Note A32 640 49 670 18 Invoice 3886 14 720 64 390 24 Receipt 667 14 620 49 770 25 Credit Note A88 3 180 46 590 th Terms: 30 days. 10% discount allowed on payments received before the 20 of each month. Penalty for late payment is applied on overdue balances. + 90 days 60 days 30 days Current R4 380 R7 050 R14 400 R20 760 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 5 DBE/2022 SC/NSC C. A comparison of the statement received from Lawes Wholesalers with the Creditors' Ledger account revealed the following differences: (i) Mani Supermarket was granted an allowance of R750 for inferior quality goods received during March 2022. This transaction was not recorded by the bookkeeper of Mani Supermarket. (ii) Lawes Wholesalers had in erroneously entered the penalty for late payment twice on 30 March 2022. They will correct it on the following statement. (iii) The amount for Invoice 3381 on 3 April 2022 was correctly recorded in the Creditors' Ledger account. (iv) An incorrect posting of the returns on 8 April 2022 was noted. (v) Invoice BB55 in the Creditors' Ledger account was for goods purchased from a different supplier, Wes Suppliers. (vi) Invoice 3886 on the statement included VAT at 15%. All goods on this invoice were zero-rated products. Lawes Wholesalers will correct this on the next statement (vii) The bookkeeper of Mani Supermarket recorded a 10% discount with the payment of EFT 425. Lawes Wholesalers indicated that the discount was not approved. (viii) Credit Note A88 on the statement received does not relate to Mani Supermarket. This will be corrected on the next statement. (ix) The statement is received on 26th of each month. 30 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 6 DBE/2022 SC/NSC QUESTION 2: COST ACCOUNTING (45 marks; 35 minutes) 2.1 STYLISH SUITS The business, owned by Fiona Radebe, manufactures one type of fashionable men's suit. The financial year ended on 31 March 2022. REQUIRED: 2.1.1 Calculate the following for the Production Cost Statement:  Direct material cost (6)  Direct labour cost (6)  Factory overhead cost (7) 2.1.2 Complete the Abridged Statement of Comprehensive Income (Income Statement) for the year ended 31 March 2022. (11) INFORMATION: A. Raw material stock:  During the financial year, the business purchased 12 250 metres of fabric for the manufacture of suits: R5 512 500. This was secured in the storeroom.  Fabric was issued to the factory to meet the production target of 3 000 suits, as follows: 3,2 metres of fabric and an allowance of 5% thereof for wastage required to manufacture one suit. B. Finished goods stock: 31 March 2022 31 March 2021 Finished goods R195 000 R260 000 C. Direct and indirect labour costs: Employee No. of Basic monthly Total annual description employees salary per employee bonus Factory machinists 40 R9 800 ? Factory supervisors 3 R17 500 R84 000  The factory machinists are involved in the production of suits.  The earnings of the supervisors have been recorded as factory overheads.  Annual bonuses were paid to all employees. The bonus budget is distributed between the machinists and the supervisors in the ratio 5 : 2 respectively.  All employees pay 1% of their gross earnings to the UIF. The employer contributes to this fund on the R-for-R basis. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 7 DBE/2022 SC/NSC D. The bookkeeper provisionally calculated the following amounts for the current financial year: Factory overhead cost R941 500 Selling and distribution cost 866 400 Administration costs 532 200 E. The bookkeeper omitted to record the following adjustments when he calculated the amounts reflected in Information D above:  An invoice of R59 500 for consumable stores was not recorded. The factory used 60% of this and the office used the balance.  Rent paid for the selling and distribution section amounted to R186 000. Rent is apportioned according to floor space as follows: Factory Selling and distribution Administration 400 m2 300 m2 100 m2  Factory insurance of R31 500 per month was paid and correctly recorded. The premium was increased by 8% from 1 January 2022. The premiums for January to March 2022 had not been paid or recorded yet. F. Production and sales:  3 000 suits were manufactured during the financial year at a unit cost of R3 750.  Total sales for the financial year amounted to R18 104 000. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 8 DBE/2022 SC/NSC 2.2 Unit cost and break-even analysis: Fiona also owns three other factories that manufacture shirts, shoes and ties respectively. Their financial year ended on 31 March 2022. NOTE:  Production is based on orders received.  The current inflation rate is 6%. REQUIRED: 2.2.1 Calculate the break-even point for shirts in 2022. (4) 2.2.2 Fiona has invested in new equipment to make the shoes. She knows that she has saved 10% of the fixed costs for shoes, but she cannot understand why the fixed costs per unit increased. Explain. Provide figures. (2) 2.2.3 Identify the variable cost that caused the biggest problem in EACH factory. Provide figures. Give a valid solution for EACH problem identified. (9) INFORMATION: The following information relates to the financial years ended 31 March: SHIRT SHOE TIE DETAILS FACTORY FACTORY FACTORY 2022 2021 2022 2021 2022 2021 Fixed cost per unit R94,20 R97,90 R117,90 R97,80 R40,90 R45,80 Factory overhead cost R45,80 R48,50 R73,10 R62,30 R21,80 R24,00 Administration R48,40 R49,40 R44,80 R35,50 R19,10 R21,80 Variable cost per unit R246,60 R216,50 R282,40 R256,20 R148,20 R138,50 Direct material R67,90 R66,00 R132,40 R123,50 R48,00 R36,30 Direct labour R136,70 R110,00 R105,20 R97,20 R81,10 R80,40 Selling and distribution R42,00 R40,50 R44,80 R35,50 R19,10 R21,80 Selling price per unit R360,00 R340,00 R460,00 R420,00 R200,00 R200,00 Units produced and sold 22 000 20 000 15 000 21 200 27 500 24 000 Break-even point 2.2.1 15 855 9 958 12 658 21 713 17 874 45 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 9 DBE/2022 SC/NSC QUESTION 3: INVENTORY VALUATION (35 marks; 30 minutes) 3.1 Complete each of the following sentences by filling in the missing word(s). Write only the word(s) next to the question numbers (3.1.1 to 3.1.3) in the ANSWER BOOK. 3.1.1 The stock valuation method that assumes that the older stock is sold first is the … method. 3.1.2 The stock system used to record the cost of goods sold at the point of sale is the … system. 3.1.3 The stock valuation method that divides the total cost of goods available for sale by the number of units is the … method. (3 x 1) (3) 3.2 RATO COOKWARE The business, owned by Lerato Klou, sells one type of cooking pot and two popular models of microwave ovens. The financial year ended on 28 February 2022. The periodic inventory system is used.  The pots are valued using the weighted-average method.  The microwave ovens are valued using the specific identification method. REQUIRED: COOKING POTS Refer to information A, B and C. 3.2.1 Calculate the value of the closing stock of pots on 28 February 2022. (4) 3.2.2 Lerato is unsure how long it will take to sell the closing stock of pots.  Provide a calculation to address her concern. (3)  Explain whether the period calculated is acceptable, or not. (2) 3.2.3 Calculate the number of pots missing. (4) MICROWAVE OVENS Refer to information D. 3.2.4 Calculate the value of the closing stock of microwave ovens. (7) 3.2.5 Lerato plans to discontinue selling the Delta model. Give TWO reasons to support this decision and ONE reason against this decision. Quote figures. (6) Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 10 DBE/2022 SC/NSC 3.2.6 The internal auditor discovered that the number of Swift microwave ovens received on 6 January 2022 does not correspond with the number of microwave ovens recorded on the relevant stock card. MICRO WHOLESALERS DELIVERY NOTE Date: 6 January 2022 Number of units Details 75 Swift microwave ovens RATO COOKWARE: STOREROOM STOCK CARD STOCK ITEM: SWIFT MICROWAVE OVENS Date Received from Dispatched Units on hand supplier to the shop 1 March 2021 380 31 July 2021 700 530 550 15 December 2021 420 130 6 January 2022 50 15 165  Identify the problem relating to the Swift microwave ovens on 6 January 2022. Quote figures. (2)  State TWO internal control measures that the internal auditor should implement to ensure that such incidents do not occur in the future. (4) INFORMATION: A. Stock records of cooking pots: NUMBER OF UNIT TOTAL COOKING POTS PRICE R Opening stock (1 March 2021) 800 R224 000 Closing stock (28 February 2022) 980 ? B. Purchases and returns: NUMBER OF UNIT TOTAL COOKING POTS PRICE R Purchases: May 2021 1 500 R320 480 000 September 2021 2 300 R370 851 000 January 2022 1 200 R410 492 000 Returns: September 2021 (300) (111 000) NET PURCHASES 4 700 1 712 000 C. Sales and cost of sales:  4 270 units were sold at R560 each.  Cost of sales was calculated as R1 591 040. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 11 DBE/2022 SC/NSC D. Record of microwave ovens: TOTAL NO. OF UNIT PRICE MODEL AMOUNT UNITS R R Opening stock SWIFT 380 2 800 1 064 000 DELTA 430 3 200 1 376 000 Purchases SWIFT 750 2 800 2 100 000 DELTA 600 3 200 1 920 000 Total purchases 1 350 4 020 000 Returns DELTA 120 384 000 SWIFT 965 4 200 4 053 000 Sales DELTA 580 5 600 3 248 000 SWIFT 1 351 000 Gross profit DELTA 1 392 000 35 Copyright reserved Please turn over

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Downloaded from hlayiso.com Accounting/P2 13 DBE/2022 SC/NSC QUESTION 4: BUDGETING (40 marks; 35 minutes) 4.1 GLYDIS TRADERS Information is provided for the budget period ending 31 July 2022. REQUIRED: 4.1.1 Complete the Debtors' Collection Schedule for July 2022. (7) 4.1.2 Calculate the amounts denoted by (i) to (iv) in the extract of the Projected Statement of Comprehensive Income. (9) 4.1.3 Calculate:  Payments to creditors in July 2022 (4)  Loan amount that will be paid on 1 July 2022 (4) INFORMATION: A. Sales and purchases: MAY JUNE JULY Total sales R962 500 R997 500 R1 015 000  Credit sales accounts for 60% of total sales.  Debtors pay according to the following trend: o 40% in the month of sales, subject to a 5% discount o 45% in the month following the month of sales o 12% two months after the month of sales o 3% written off as irrecoverable in the third month after sales  The mark-up is 75% on cost.  Stock is replaced in the month of sales. A base stock is maintained.  80% of stock is bought for cash.  Creditors are paid in the second month after the month of purchases. B. Extract from the Projected Statement of Comprehensive Income: JUNE JULY Gross profit 427 500 435 000 Commission income 79 800 (i) Bad debts 16 800 (ii) Salaries and wages (iii) 196 980 Discount allowed (iv) 12 180 Interest on loan 4 550 4 025 C. Additional information:  Commission income is a fixed percentage of total sales.  All employees will receive a 5% increase from 1 July 2022.  Part of the loan will be repaid on 1 July 2022. Interest at 14% p.a. is payable on the outstanding balance, on the last day of each month. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 14 DBE/2022 SC/NSC 4.2 FRAZILA (PTY) LTD The business sells gas stoves. The information relates to the period April and May 2022. Peter Pillay, the CEO, became aware of a competitor, Lite Stores, which opened for business in April 2022. They sell a cheaper model stove for cash only. Peter was unable to respond to this threat in April. He changed his strategies in May 2022. This included a change in the delivery service. Delivery is outsourced to Speedy Couriers in April. Peter decided in May to outsource it to Prime Deliveries. REQUIRED: NOTE: Provide figures or calculations in your explanations for all the questions below. 4.2.1 Delivery expenses: Peter noticed that the full budget for April 2022 had not been used.  Explain whether Peter should be satisfied with the actual delivery cost in April 2022, or not. (3)  Explain whether Peter made a good decision in changing the delivery service provider to Prime Deliveries, or not. (3) 4.2.2 Other strategies:  Apart from changing the delivery service, identify TWO other strategies that Peter implemented in May 2022 in response to the competitor. (4)  Explain how these other strategies have affected the sales and the profit. (4) 4.2.3 Cash balances: Peter is confused about why the cash balances are not good despite the fact that sales increased in May 2022. Explain. (2) Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 15 DBE/2022 SC/NSC INFORMATION: A. Extract of the Projected Income Statement: APRIL 2022 MAY 2022 BUDGETED ACTUAL BUDGETED ACTUAL Number of stoves 750 600 750 900 sold Selling price per R3 780 R3 780 R3 780 ? stove Cost price per stove R2 100 R2 100 R2 100 R2 100 R R R R Cash sales 1 417 500 1 247 400 1 417 500 958 500 Credit sales 1 417 500 1 020 600 1 417 500 2 236 500 Total sales 2 835 000 2 268 000 2 835 000 3 195 000 Cost of sales (1 575 000) (1 260 000) (1 575 000) (1 890 000) Gross profit 1 260 000 1 008 000 1 260 000 1 305 000 R R R R Advertising 120 000 120 000 120 000 192 000 Delivery costs 425 250 408 240 425 250 319 500 B. Extract from the Cash Budget: APRIL 2022 MAY 2022 BUDGETED ACTUAL BUDGETED ACTUAL R R R R Cash surplus/deficit 208 000 243 000 220 000 (972 000) Opening balance 77 000 77 000 285 000 320 000 Closing balance 285 000 320 000 505 000 (652 000) C. Additional information:  The business budgets to sell 750 stoves per month.  Purchases of stock are paid in 30 days. 40 TOTAL: 150 Copyright reserved

Downloaded from hlayiso.com Accounting/P2 DBE/2022 SC/NSC GRADE 12 ACCOUNTING FINANCIAL INDICATOR FORMULA SHEET Gross profit x 100 Gross profit x 100 Sales 1 Cost of sales 1 Net profit before tax x 100 Net profit after tax x 100 Sales 1 Sales 1 Operating expenses x 100 Operating profit x 100 Sales 1 Sales 1 Total assets : Total liabilities Current assets : Current liabilities (Current assets – Inventories) : Current liabilities Non-current liabilities : Shareholders' equity (Trade & other receivables + Cash & cash equivalents) : Current liabilities Average trading stock x 365 Cost of sales . Cost of sales 1 Average trading stock Average debtors x 365 Average creditors x 365 Credit sales 1 Cost of sales 1 Net income after tax x 100 Net income after tax x 100 Number of issued shares 1 Average shareholders' equity 1 (*See note below) Net income before tax + Interest on loans x 100 Average shareholders' equity + Average non-current liabilities 1 Shareholders' equity x 100 Dividends for the year x 100 Number of issued shares 1 Number of issued shares 1 Interim dividends x 100 Final dividends x 100 Number of issued shares 1 Number of issued shares 1 Dividends per share x 100 Dividends for the year x 100 Earnings per share 1 Net income after tax 1 Total fixed costs . Selling price per unit – Variable costs per unit NOTE: * In this case, if there is a change in the number of issued shares during a financial year, the weighted-average number of shares is used in practice. Copyright reserved