Accounting QP P2 ENG

PROVINCIAL ASSESSMENT GRADE 10 ACCOUNTING P2 NOVEMBER 2024 MARKS: 150 TIME: 2 hours This question paper consists of 9 pages, a formula sheet and a 8-page answer book. Copyright reserved Please turn over

Accounting/P2 2 NW/November 2024 Grade 10 INSTRUCTIONS AND INFORMATION Read the following instructions carefully and follow them precisely. 1. Answer ALL the questions. 2. A special ANSWER BOOK is provided in which to answer ALL questions. 3. A Financial Indicator formula sheet is attached at the end of this question paper. 4. Show ALL workings to earn part-marks. 5. You may use a non-programmable calculator. 6. You may use a dark pencil or blue/black ink to answer questions. 7. Where applicable, show ALL calculations to ONE decimal point. 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 Control accounts and Reconciliations 60 48 2 Fixed assets 32 26 3 Cost accounting 32 26 4 Budgeting 26 20 TOTAL 150 120 Copyright reserved Please turn over

Accounting/P2 3 NW/November 2024 Grade 10 QUESTION 1: CONTROL ACCOUNTS, RECONCILIATION AND INTERNAL CONTROL (60 marks; 48 minutes) 1.1 UPTOWN TRADERS The information relates to UPTOWN TRADERS for the period ending 31 October 2024. The business uses a mark-up of 75% on the cost price. REQUIRED: 1.1.1 Prepare the correct Debtors control account for October 2024 after considering the errors and omissions found. (16) Note: Show all your calculations to earn part marks. 1.1.2 Prepare the corrected debtors list on 31 October 2024. (18) 1.1.3 Provide TWO reasons why it is important to do the Debtors reconciliation. (4) 1.1.4 Apart from correction of error, what other transaction could appear as journal credits in the Debtors control account? (2) 1.1.5 The owner, Mr Dawson, is warried that the debtors are not paying on time. Describe THREE measures that he can put in place to ensure debtors pay on time. (6) INFORMATION: General Ledger of Uptown Traders Balance sheet accounts Debtors control account 2024 2024 Bank and CRJ 277 480 Oct 1 Balance b/d 98 650 Oct 31 discount allowed 31 Sales DJ 194 610 Debtors DAJ 1 500 Allowance Journal GJ 270 Journal credits GJ 1 950 debits Balance c/d 7 990 288 920 288 920 Nov 1 Balance b/d 7 990 Debtors List as on 31 October 2024 Mdiniso 2 760 Twala 6 840 Nel 1 440 Ally 2 190 Vilakazi 3 830 17 060 Copyright reserved Please turn over

Accounting/P2 4 NW/November 2024 Grade 10 ERRORS AND OMISSIONS A. The Debtors Control opening balance was under cast by R2 000. B. The total column of the Debtors Allowance Journal was overcast by R350. C. An invoice for R1 950 issued to Nel was correctly entered in the Debtors Journal, but was incorrectly posted to the account of Ally. D. A credit note of R350 issued to Mdiniso was not recorded at all. E. An EFT of R1 500 received from Nel in full settlement of his account of R1 650 was recorded correctly in the subsidiary journal. However, the bookkeeper forgot to record the discount in the account of Nel. F. A credit note of R980 was correctly entered in the Debtors Allowance Journal, but was incorrectly recorded as an invoice in the account of Vilakazi. G. No entry has been made for interest charged on the overdue account of Twala, R260. 1.2 TIM TRADERS CREDITORS CONTROL ACCOUNT The following information was extracted from the accounting records of TIM TRAERS for September 2024. REQUIRED: Complete the Creditors control account for the month ending 30 September 2024. Balance the account at the end of the month. (14) INFORMATION: Balance as per Creditors control account on 31 August 2024: R 75 280 Creditors Journal Creditors Trading Stationery Repairs Sundry control stock accounts ? 10 870 1 470 800 1 790 Creditors Allowance Journal Creditors Trading Stationery Repairs Sundry control stock accounts 1 505 1 250 70 150 35 Copyright reserved Please turn over

Accounting/P2 5 NW/November 2024 Grade 10 Cash Payments Journal Bank Trading Stationery Creditors Discount Repairs Sundry stock control received accounts 112 785 50 280 2 580 59 880 2 995 2 890 150 General Journal General Ledger Debtors control Creditors control Debit Credit Debit Credit Debit Credit 7 655 7 655 280 250 1 200 85 60 QUESTION 2: FIXED ASSETS (32 marks; 26 minutes) OLYMPIC STORES The following information was extracted from the financial information of Olympic Stores for the year 30 June 2024. REQUIRED: 2.1.1 Describe the historical cost principle and its relevance to fixed assets, by giving an example of how this principle is applied. (2) 2.1.2 What GAAP principle is applied when depreciation is written off on fixed assets? (2) 2.1.3 Explain TWO internal controls procedures that the owner of the business could implement in order to protect the fixed assets of the (4) business. 2.2 Calculate the missing amounts in the Fixed Asset note of Olympic Stores on 30 June 2024. (24) INFORMATION: Land & Vehicles Equipment Buildings Carrying Value at the beginning ***** 240 000 2.2.6 Cost 2.2.1 550 000 450 000 Accumulated depreciation - 2.2.3 (180 000) Movements Additions 2.2.2 2.2.4 **** Depreciation - 2.2.5 2.2.7 Carrying Value at the end Cost 1 300 000 700 000 ***** Accumulated depreciation - ***** ***** Copyright reserved Please turn over

Accounting/P2 6 NW/November 2024 Grade 10 ADDITIONAL INFORMATION: (i) During the year an invoice was received from Builders Suppliers for the following: A new storeroom built R450 000 Repairs on existing building R 20 000 R470 000 (ii) A new vehicle was bought for cash on 1 November 2023. (iii) Vehicles are depreciated at 20% p.a. on the cost price method. (iv) Equipment is depreciated at 10% p.a. on the diminishing balance method. On 31 December 2023 equipment with a cost price of R18 600 was purchased on credit, but no entry was made. 32 QUESTION 3: COST ACCOUNTING (32 marks; 26 minutes) 3.1 MANUFACTURING CONCEPTS Choose the correct answer from COLUMN B to match the description in COLUMN A. Write only the letter (A–E) next to the number (3.1.1 to 3.1.5) in the ANSWER BOOK. (5) COLUMN A COLUMN B 3.1.1 Costs that stays the same, no matter A Direct Labour costs how many goods are produced. 3.1.2 All the costs that are not directly B Prime costs involved in the production of goods. 3.1.3 The total cost of the direct material C Fixed costs and direct labour. 3.1.4 The salaries of personnel directly D Indirect Labour costs involved in the manufacturing of goods. 3.1.5 The cost of the salary of the factory E Manufacturing overheads cleaner. Copyright reserved Please turn over

Accounting/P2 7 NW/November 2024 Grade 10 3.2 Dan Sithole manufactures and sells wooden furniture made from pallets. The selling price per bench is R2 500. Below is a summary of all his costs for October 2023. He manufactured 500 benches during October. REQUIRED: Calculate: 3.2.1 Direct material cost per bench. (4) 3.2.2 Total manufacturing overheads for October 2023. (5) 3.2.3 Total production cost for October 2023 if 500 benches were produced. (7) 3.2.4 Unit cost of production. (3) 3.2.5 What is the percentage profit Dan earned per bench during October 2023, if the benches were sold at R2 500 each? (4) 3.2.6 Explain the difference between fixed and variable costs. (4) INFORMATION: Cost per bench Wood per bench R500 Nails per bench R20 Paint per bench R50 Wages per completed bench R1 000 Costs per month Salary of the factory foreman R5 000 Rent of the factory R8 000 Water and Electricity of the factory R2 500 Indirect material cost R 500 Copyright reserved Please turn over

Accounting/P2 8 NW/November 2024 Grade 10 QUESTION 4: BUDGETS (26 marks; 20 minutes) 4.1 CONCEPTS Choose the correct term from those within the brackets. Write only the term next to the question numbers (4.1.1 to 4.1.5) in the ANSWER BOOK. (5) 4.1.1 A (Capital/Cash) budget is a statement of estimated receipts and payments for a specific period of time. 4.1.2 A (Capital/Cash) budget is a forecast of the future expenditure on fixed assets. 4.1.3 A (Short-/Long-) term budget is a budget prepared for a period of 3 or 6 months. 4.1.4 (Budget speech/Tax) is the main source of income for the government. 4.1.5 (Surplus/Deficit) is when the closing balance of the cash budget is positive. 4.2 Briefly explain why it is important for a business to prepare a budget. (2) 4.3 What is the main purpose of a cash budget? (2) 4.4 Name TWO items which will not appear in a cash budget. (2) Copyright reserved Please turn over

Accounting/P2 9 NW/November 2024 Grade 10 4.5 TULANI STORES REQUIRED: Calculate the missing amounts for April and May 2024 donated by 4.5.1 to 4.5.7 (15) INFORMTION: CASH BUDGET FOR THE PERIOD APRIL TO MAY 2024 RECEIPTS April May Cash sales 297 000 4.5.1 Rent income 15 000 15 000 Total receipts [A] 312 000 4.5.2 PAYMENTS Cash purchases of trading stock 198 000 207 900 Salaries 4.5.3 64 949 Advertising 2 000 2 000 Drawings 4 000 4 800 Sundry other expenses 22 100 4.5.4 Bond repayment 16 300 16 300 New equipment - 15 000 Total payments [B] 302 292 4.5.5 Cash surplus (shortfall) [A – B] 9 708 (6 755) Bank: opening balance 14 000 4.5.6 Bank: closing balance 23 708 4.5.7 ADDITIONAL INFORMATION: (i) The sales are expected to increase by 5% in May 2024. (ii) A salary increases of 7% will be effective form 1 May 2024. (iii) Sundry other expenses are expected to increase by 5% per month. 26 TOTAL: 150 Copyright reserved

Accounting/P2 10 NW/November 2024 Grade 10 GRADE 10 ACCOUNTING FINANCIAL INDICATOR FORMULA SHEET Gross profit x 100 Gross profit x 100 Net profit x 100 Sales 1 Cost of sales 1 Sales 1 Operating expenses x 100 Operating profit x 100 Sales 1 Sales 1 Current assets : Current liabilities (Current assets – Inventories) : Current liabilities (Trade and other receivables + Cash and cash equivalents) : Current liabilities Net profit_ x 100 Total assets : Total liabilities Owner’s equity 1 Copyright reserved