Accounting Grade 12 NSC June 2014 Question Paper (English)

Downloaded from hlayiso.com SENIOR CERTIFICATE EXAMINATION ACCOUNTING STANDARD GRADE 2014 MARKS: 300 TIME: 3 hours This question paper consists of 13 pages and a 12-page answer book. 3 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/SG 2 DBE/2014 SCE INSTRUCTIONS AND INFORMATION 1. Answer ALL the questions. 2. A special ANSWER BOOK is provided in which to answer ALL the questions. 3. Show ALL the calculations in order for part marks to be allocated. 4. Read the instructions carefully and follow them precisely. 5. Candidates will forfeit marks for: 5.1 Important dates which are omitted 5.2 Use of non-standardised abbreviations 5.3 Over-writing on figures 5.4 Superfluous entries/foreign items/errors of principle 6. Non-programmable calculators may be used. 7. NO pages may be removed from the answer book. The answer book caters for alternative formats of financial statements. 8. Use the information given in the table below as a guide when answering the question paper and try NOT to deviate from it. TIME GUIDE QUESTION TOPIC MARKS (MINUTES) 1. Bank Reconciliation 45 27 2. Partnership 60 36 3. Close Corporation 40 24 4. Budget 50 30 5. Company 65 39 6. Clubs 40 24 300 marks 180 minutes Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/SG 3 DBE/2014 SCE QUESTION 1 BANK RECONCILIATION (45 marks; 27 minutes) The information below appears in the books of Makwena Traders. REQUIRED: 1.1 Complete the Cash Receipts Journal and the Cash Payments Journal for May 2014. Total only the bank columns in the Cash Journals. (25) 1.2 Post to the bank account in the General Ledger. Balance the account on 31 May 2014. (7) 1.3 Prepare a Bank Reconciliation Statement on 31 May 2014. (12) 1.4 Give ONE example of bank charges that will appear on the Bank Statement. (1) NOTE: It is the policy of the business to correct errors in the Cash Journals, whenever possible. INFORMATION: 1. Provisional totals in the Cash Journals for May 2014: CRJ CPJ Bank 46 464 37 373 Sundry Accounts 46 464 37 373 2. The Bank Reconciliation Statement prepared on 30 April 2014 reflects the following information: R Favourable balance per Bank Statement 13 650 Outstanding deposit 12 312 Outstanding cheques: 511 4 580 512 2 315 534 5 876 Favourable balance per bank account in the Ledger 13 191 3. A comparison of the Bank Reconciliation Statement for April 2014 with the Bank Statement of Bulls Bank for May 2014 reflects the following: 3.1 The outstanding deposit of R12 312 appears on the Bank Statement for May 2014. 3.2 Cheque No. 511 for R4 580 appears on the Bank Statement for May 2014. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/SG 4 DBE/2014 SCE 3.3 Cheque No. 512 was issued to Benzo Stores to settle their account. This cheque has been lost and payment has been stopped. It was replaced with cheque No. 562 for the amount of R2 340 (inclusive of interest) on 31 May 2014. This cheque is in the post. No entry has been made for the cancellation of the old cheque or the issuing of the new cheque. 3.4 Cheque No. 534 for R5 876, dated 15 June 2014 is still outstanding. 4. A comparison of the Bank Statement for May 2014 with the Cash Journals reflects the following differences: 4.1 Bank charges according to the Bank Statement amount to R345. 4.2 A credit of R85 being interest on the current bank account was reflected on the Bank Statement of Bulls Bank. 4.3 A dishonoured cheque for R775, received from a debtor L Bryden, appears on the Bank Statement. 4.4 A tenant, J Jennings, paid R1 950 for rent. This appears only on the Bank Statement. 4.5 A stop order to Helpline Insurers appears on the Bank Statement for the following:  R750 for business insurance  R230 for household insurance of the owner paid on his behalf by the business. 4.6 A deposit of R14 441 appears in the CRJ but not on the Bank Statement. 5. The Salaries Journal for May 2014 reflects the following: Employees Cheque Gross salaries Net salaries number R Groenewald 551 R12 600 R8 275 J Taylor 555 R13 654 R9 437 P Bezuidenhout 556 R11 912 R7 954 Only cheques 551 and 555 appeared on the Bank Statement for May 2014. 6. The Bank Statement on 31 May reflects a credit balance of R23 921. 45 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/SG 5 DBE/2014 SCE QUESTION 2 BALANCE SHEET AND NOTES OF PARTNERSHIP (60 marks; 36 minutes) Jan Jones and Ben Botha are partners in the firm trading as JB Traders. Their bookkeeper did not complete the Balance Sheet because he was on sick leave. The financial year ends on 28 February 2014. REQUIRED: Complete the following notes to the Balance Sheet on 28 February 2014: 2.1 Capital accounts (of partners) (6) Current accounts (of partners) (20) 2.2 Balance Sheet on 28 February 2014. (Show calculations in brackets where there are no notes.) (34) INFORMATION: Extracted from the accounting records of JB Traders on 28 February 2014: R Capital: J Jones (28 February 2014) 50 000 Capital: B Botha (28 February 2014) 75 000 Current account: J Jones (1 March 2013) Cr 8 700 Current account: B Botha (1 March 2013) Dr 2 000 Drawings: J Jones 98 000 Drawings: B Botha 77 000 Long-term loan from Sanz Bank (18% p.a.) 54 000 Fixed assets ? Creditors' control 65 600 Debtors' control 9 760 Trading stock 56 700 Consumable stores on hand 1 700 Accrued expenses/Expenses payable 3 800 Cash float 3 000 Bank overdraft 2 700 Financial assets at Parys Bank 68 000 Additional information on 28 February 2014 1. The net profit for the year was R179 300. 2. An amount of R7 500 for the long-term loan is due to be paid to Sanz Bank within the next financial year. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/SG 6 DBE/2014 SCE 3. The financial assets of R68 000 at Parys Bank consist of: A fixed deposit of R18 000 due to mature on 31 March 2014 A fixed deposit of R50 000 due to mature on 30 June 2017. 4 J Jones took the following for his personal use on 27 February 2014:  Trading stock at cost price, R400  A cash cheque for R700 These transactions have not been recorded. 5. J Jones reduced his capital account by withdrawing an amount of R30 000 cash from the business on 31 May 2013. This has been properly recorded. 6. B Botha increased his capital contribution by giving computer equipment valued at R15 000 to the business on 28 February 2014. This has been properly recorded. 7. Distribution of net profit between the partners: 7.1 Jan Jones is entitled to:  Interest on capital at 10% p.a. on his capital contribution for the year (note changes during the year)  Salary of R2 400 more per month than that of Ben Botha because of managerial duties  Remaining profit shared in proportion to partners' contributions at the end of the year 7.2 Ben Botha is entitled to:  Interest on capital of R6 000  Annual salary allowance of R51 000  Remaining profit shared in proportion to partners' contributions at the end of the year 60 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/SG 7 DBE/2014 SCE QUESTION 3 CLOSE CORPORATION (40 marks; 24 minutes) Scheunsamy Traders CC is a close corporation with B Scheun and J Ramsamy as members. They each have a 50% interest in the business and generally share distribution to members equally. The accounting period ends annually on 28 February. REQUIRED: Use the information below to prepare the following accounts in the General Ledger. Balance/Close off the accounts on 28 February 2014. 3.1 Members' contributions (9) 3.2 South African Revenue Services – Income tax (11) 3.3 Distribution payable to members (8) 3.4 Distribution to members (4) 3.5 Appropriation Account (8) EXTRACT FROM THE LIST OF BALANCES ON 1 MARCH 2013 Members' contributions R423 000 Retained income 11 650 South African Revenue Services – Income tax (Cr) 12 550 Loan to Scheun 80 000 Distribution payable to members 40 000 TRANSACTIONS 2013 Mar. 11 Issued cheque No. 345 for outstanding income tax. 23 Paid the distribution owing to members. Member Ramsamy requested that his amount be paid out to him while Scheun asked the business to credit it to his loan account. Sept. 30 Cheque No. 456 for R34 750 was issued to SARS to pay first provisional income tax. Oct. 17 Member Scheun provided equipment to the value of R27 000 to increase his interest in the business. Nov. 29 Member Ramsamy provided services as an accounting officer at a fee of R33 500. This amount was not paid out to him but was used to increase his members' contribution. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/SG 8 DBE/2014 SCE Dec. 28 Member Scheun withdrew R18 600 of his members' contribution. A cheque was issued to him. 2014 Feb. 27 Issued cheque No. 764 for R35 250 to SARS in respect of the second provisional tax payment. 28 The Profit and Loss Account reflected a net income of R168 500 for the financial year. The total income tax for the year has been calculated at R69 000. The members decided to distribute 60% of the net profit BEFORE tax equally between Scheun and Ramsamy. 40 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/SG 9 DBE/2014 SCE QUESTION 4 BUDGET (50 marks; 30 minutes) The information below was taken from the books of Razia Traders. REQUIRED: 4.1 Complete the Debtors' Collection Schedule for the period 1 April 2014 to 31 May 2014. (12) 4.2 Prepare a Cash Budget for the period 1 April 2014 to 31 May 2014. (34) 4.3 Name TWO expenses that will not appear in a Cash Budget. (4) INFORMATION: 1. The Bank Account on 31 March 2014 reflected an overdraft balance of R70 000. 2. Some actual and budgeted figures. Actual Budgeted February March April May R R R R Cash sales 96 000 140 000 120 000 88 000 Credit sales 48 000 70 000 60 000 44 000 Cash purchases of stock 54 000 60 000 46 000 52 000 Credit purchases of stock 16 000 28 000 22 000 24 000 Operating expenses 2 000 2 200 2 400 2 600 Salaries 18 000 18 000 18 000 ? 3. Credit sales are collected as follows:  50% in the same month as the sale  40% after 30 days (one month after sale)  8% after 60 days (two months after sale)  2% as bad debts (three months after sale) 4. Creditors are paid during the second month after the purchase. 5. Depreciation is calculated at R750 per month. 6. The business rents out a building at R3 600 per month. The rent increases annually on 1 May by R360. All amounts are received monthly. 7. The owner draws R3 500 cash per month for his own use. 8. New equipment will be purchased on credit on 1 April for R96 600. This will be settled in three equal monthly payments starting on 30 April 2014. 9. Razia Traders has three employees in service and all employees receive the same salary. On 1 May 2014 a fourth worker will be employed at the same salary. 50 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/SG 10 DBE/2014 SCE QUESTION 5 COMPANY (65 marks; 39 minutes) Ballito Ltd is a company with an authorised share capital of 150 000 ordinary shares. REQUIRED: 5.1 Prepare the Income Statement for the year ended 28 February 2014. (46) 5.2 Prepare the following notes to the financial statements: 5.2.1 Retained income (8) 5.2.2 Trade and other receivables (debtors) (11) INFORMATION PRE ADJUSTMENT TRIAL BALANCE OF BALLITO LIMITED ON 28 FEBRUARY 2014 BALANCE SHEET ACCOUNTS SECTION DEBIT CREDIT Ordinary share capital (par value R5 each) R 700 000 Retained income 94 800 Loan: NBA Bank (15%) 91 000 Land and buildings 870 000 Vehicles 110 000 Equipment 55 000 Accumulated depreciation on vehicles 44 500 Accumulated depreciation on equipment 24 930 Trading stock 120 000 Debtors' control 55 500 Creditors' control 48 800 SA Revenue Services/SARS (Income tax) 74 000 Provision for bad debts 1 700 Bank 13 250 NOMINAL ACCOUNTS SECTION Sales 820 200 Cost of sales 361 490 Debtors allowances 5 500 Salaries and wages 105 000 Directors' fees 40 000 Rent income 13 260 Commission income 1 100 Bad debts 600 Audit fees 3 500 Interest on overdue debtors' accounts 100 Interest on current accounts 390 Sundry expenses 3 000 Interest on loan 12 740 Dividends on ordinary shares (interim) 11 200 1 840 780 1 840 780 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/SG 11 DBE/2014 SCE Adjustments on 28 February 2014: 1. Trading stock on hand amounts to R119 300. 2. A debtor, P Cloete, who owed R500 left the country before settling his account. This debt must be written off. 3. Provision for bad debts must be adjusted to 2% of the debtors. 4. The tenant, Galore Stores, paid their rent for the flower stand for 13 months ending 31 March 2014. There was no change in the rent for the past 18 months. 5. Rates at 3% of the value of the land and buildings is payable to the local municipality for the financial year ended 28 February 2014. 6. In the Sundry Expenses Account, an amount of R250 has been prepaid for the Water and Electricity bill. 7. Depreciation is calculated as follows:  On vehicles at 20% per annum according to the diminishing balance method  On equipment a fixed amount of R2 750 for the year 8. The following amounts are owed at the end of the year:  Interest on loan R910  Directors' fees R20 000 9. Commission income of R100 is owed to the business at the year- end. 10. Income tax for the year was calculated at R79 400. 11. A final dividend of 60 cents per share was declared on 28 February 2014. 65 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/SG 12 DBE/2014 SCE QUESTION 6 CLUB (40 marks; 24 minutes) 6.1 The following information was extracted from the books of Vorster Bowling Club. REQUIRED: Prepare the Membership Fees Account for the year ended 31 December 2013. (16) INFORMATION: 1. Balances on 1 January 2013: Accrued income/Income receivable (Membership fees) R7 200 Income received in advance/Deferred income 900 (Membership fees) 2. Summary of transactions for the year: Membership fees are R300 per member per year. Membership fees received during the year: 2012: R3 900 2013: R75 000 2014: R1 800 The membership fees that are still outstanding in respect of the previous year must be written off as irrecoverable. On 1 January 2013 a member who had paid her membership fees in advance left the club. She requested that her membership fees be repaid to her. She received a cheque on 20 January for the R300 refund from the club. On 31 December 2013 membership fees of 23 members were still outstanding for 2013. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/SG 13 DBE/2014 SCE 6.2 The following transactions were taken from the books of Dreyer Golf Club. REQUIRED: Analyse the following transactions according to the example provided. (24) Example: Paid R8 500 by cheque for wages. No. Receipts Payments Income Expenses E.g. R8 500 R8 500 Transactions: 6.2.1 Membership fees amounting to R1 500 were received. This includes R150 for the next financial year. 6.2.2 Entrance fee of R180 was received from a new member. 6.2.3 Refreshments were bought on credit for R500. 6.2.4 Affiliation fees of R400 were paid by cheque. (This includes R200 for the previous year). 6.2.5 A creditor's account of R210 was paid by cheque. 6.2.6 Paid the Water and Electricity Account of R900 by cheque. 6.2.7 Sold a vehicle for R28 100 cash. The cost price was R45 000 and the accumulated depreciation on the date of sale for this vehicle was R17 000. 40 TOTAL: 300 Copyright reserved