Accounting Grade 10 P1 Gauteng June 2023 QP (Eng)

Downloaded from hlayiso.com PROVINCIAL EXAMINATION JUNE 2023 GRADE 10 ACCOUNTING TIME: 2½ hours MARKS: 200 11 pages + an answer book of 9 pages P.T.O.

Downloaded from hlayiso.com ACCOUNTING 2 GRADE 10 INSTRUCTIONS AND INFORMATION 1. Answer ALL the questions. 2. Answer all questions in the ANSWER BOOK provided. 3. Show ALL calculations to earn part-marks. 4. Non-programmable calculators may be used. 5. You may use blue or black ink to answer the questions. 6. Where applicable, show ALL calculations to ONE decimal point. 7. Write neatly and legibly. 8. Use the information in the table below as a guide when answering the question paper. Try NOT to deviate from it. Question Topics Marks Time 1 GAAP Concepts and Transaction Analysis 55 40 minutes 2 Concepts and Salaries Journal 45 34 minutes 3 General Journal and Ledger Accounts 30 23 minutes 4 Ledger Accounts and Internal Control 40 30 minutes 5 Creditors Reconciliation and Internal Control 30 23 minutes Total 200 150 minutes P.T.O.

Downloaded from hlayiso.com ACCOUNTING 3 GRADE 10 QUESTION 1: GAAP CONCEPTS AND ANALYSIS OF TRANSACTIONS (55 marks; 40 minutes) 1.1 GAAP CONCEPTS Match COLUMN A to COLUMN B. Write only the letter (A – D) next to the question number (1.1.1 to 1.1.5) in the ANSWER BOOK. COLUMN A COLUMN B A Financial records prepared should maintain the 1.1.1 Business entity same accounting principles throughout accounting periods. B Bank charges and interest on overdraft are 1.1.2 Matching recorded separately in the financials. C The market value of land and buildings is 1.1.3 Materiality R4 000 000, the original cost price recorded in the financial records is R800 000. D Stock taken by the owner for personal use is 1.1.4 Historical cost recorded as drawings in the books of the business. E The cost of sales should be recorded in the 1.1.5 Going concern same financial period as the corresponding amount generated from sales of goods. F Trading stock is shown in the financials as R100 000, even though it can only be sold for R75 000 in the foreseeable future. (1 x 5) (5) 1.2 ANALYSIS OF TRANSACTIONS The following transactions appeared in the books of Naidoo Traders. The business maintains a gross profit mark-up of 40% on cost. REQUIRED: Analyse the transactions below according to the table provided in your ANSWER BOOK. The first transaction has been done for you as an example. (50) NOTE: Assume that bank balance is unfavourable for all the transactions. Example: Purchased stationery for cash, R3 000. P.T.O.

Downloaded from hlayiso.com ACCOUNTING 4 GRADE 10 TRANSACTIONS: A. Sold goods for cash to customers, R91 000. B. The owner took R15 000 worth of stock for personal use. C. Paid J.A. Gupta, a creditor, R13 500 via EFT after a discount of 10% was deducted. D. Received R55 000 from NBS Bank. This was for the fixed deposit that matured plus interest. The fixed deposit was taken out 12 months ago at an interest rate of 10% p.a. E. The bank statement received from BB Bank at the end of the month showed the following:  Cash deposit fees R350  Administration fees R200  Interest on unfavourable bank balance R700 F. Purchased merchandise from J.A. Gupta, a creditor, for R40 000 and received a 5% trade discount. 55 P.T.O.

Downloaded from hlayiso.com ACCOUNTING 5 GRADE 10 QUESTION 2: CONCEPTS AND SALARIES JOURNAL (45 marks; 34 minutes) 2.1 CONCEPTS 2.1.1 Explain the difference between the salaries and wages. (2) 2.1.2 To which government departments are the following paid?  PAYE  UIF (2) 2.2 SALARIES JOURNAL HAIRCUT 100 Haircut 100 is a salon owned by Nick Heyward. He recently started the business and has asked for assistance regarding salaries. REQUIRED: 2.2.1 Use the information below to prepare the Salaries Journal for December 2022. (41) INFORMATION A: Salary information for December 2022 Details B. Makumo J. Abrahams T. Khumalo Basic salary ? R12 000 R12 000 100% of monthly basic 90% of monthly Bonus None salary basic salary Deductions S. Makua J. Murray K. Mashaba PAYE R 900 R1 300 R1 300 First Pension 10% of basic 10% of basic 10% of basic salary Fund salary salary KG Medical Aid R1 000 on basic salary of R10 000, in addition, 5% is used to calculate medical deductions for all amounts above R10 000. 1% of basic salary 1% of basic 1% of basic UIF salary salary INFORMATION B: Employers contributions for the month of December are as follows:  To the pension fund R1,50 for every R1 deducted from the employee.  To the medical aid fund R2 for every R1 deducted from the employee.  To the UIF on a rand for rand basis. 45 P.T.O.

Downloaded from hlayiso.com ACCOUNTING 6 GRADE 10 QUESTION 3: GENERAL JOURNAL AND LEDGER ACCOUNTS (30 marks; 23 minutes) VICIOUS TRADERS The information provided was taken from the accounting records of Vicious Traders on 28 February 2023. The business uses a mark-up of 50% on cost. REQUIRED: Record the transactions provided below in the General Journal. Narrations are not necessary. (30) Transactions for the month of February 2023: A. Charged L. Dlamini, a debtor, interest on overdue account at 10% p.a. His balance of R1 500 was two months overdue. B. A building was repaired for R6 500, the amount was incorrectly posted to the Land and Buildings account. C. Discount of R600 received from Marie Traders was recorded in the account of a creditor, Mario Brothers in error. Correct the error. D. A credit note was issued to J.P. Morgan, a debtor, for goods returned by him for R8 600.This entry was omitted from the records. E. Received R900 from G. Hansen, a debtor whose account was previously written off. The entry was recorded in the Debtors’ Control in the CRJ and posted accordingly. Correct the error. F. Received an EFT for R2 520 from a debtor, A.B. Villiers, which is a dividend of 40 cents in every rand he owed the business. The money received was properly recorded in the Cash Receipts Journal. Write off the balance. G. Transfer a credit balance of R750 from the account of J. Michil in the Debtors’ ledger to his account in the Creditors’ Ledger. H. 25% of the goods that were bought by the business for R18 000 were returned to Ray Suppliers, a creditor. The returned goods were incorrectly recorded in the Creditors’ Ledger of Ray Traders. P.T.O.

Downloaded from hlayiso.com ACCOUNTING 7 GRADE 10 QUESTION 4: GENERAL LEDGER AND INTERNAL CONTROL (40 marks; 30 minutes) 4.1 GENERAL LEDGER The information provided below relates to the financial records of Maningi Traders for the month ended 28 February 2023. The business uses a mark-up of 50% on cost. REQUIRED: Prepare the following accounts in the general ledger : 4.1.1 Debtors’ Control (14) 4.1.2 Trading Stock Account (16) Write folio references and balance the ledger accounts properly. INFORMATION A: The following balances appeared in the books on 1 February 2023: Debtors’ control R67 800 Creditors’ control R80 600 Trading stock R173 200 INFORMATION B: Cash Receipts Journal for February 2023 Cost of Debtors’ Discount Bank Sales Sundries sales control allowed 290 500 234 000 156 000 ? 10 000 1 000 Cash Payments Journal for February 2023 Trading Creditors’ Discount Bank Stationery Sundries stock control received 433 900 80 000 355 500 4 000 1 500 900 P.T.O.

Downloaded from hlayiso.com ACCOUNTING 8 GRADE 10 Debtors’ Journal for February 2023 Sales Cost of sales ? 90 600 Debtors’ Allowances Journal for February 2023 Debtors’ allowances Cost of sales 17 100 ? Creditors’ Journal for February 2023 Creditors’ Trading Consumable Equipment Sundries control stock stores 258 600 84 300 150 000 24 000 300 Creditors’ Allowances Journal for February 2023 Creditors' Trading Equipment Stationery Sundries control stock 81 000 ? 10 000 1 500 500 General Journal for February 2023 Debtors’ control Creditors’ control Dr Cr Dr Cr 3 800 960 1 050 170 P.T.O.

Downloaded from hlayiso.com ACCOUNTING 9 GRADE 10 4.2 INTERNAL CONTROL RAINBOW TRADERS The information provided below is extracted from the books of Rainbow Furnishers. The business is owned by Ray Ndlovu. REQUIRED: Refer to the information provided below and answer the questions that follow. 4.2.1 Ray is concerned about the stock figures. He suspects that there are employees who are stealing from the business. Provide calculations to support his concern. (Refer to Information A.) (2) 4.2.2 Provide TWO internal control measures that must be implemented to protect stock from theft. (4) 4.2.3 Comment on goods returned by customers. Provide figures to support your answer. What control measures must be put in place by a business? (4) (Refer to Information B.) INFORMATION A Balances and transactions affecting trading stock Opening balance R85 000 Trading stock purchased during the month 75 000 Cost of goods sold during the month 63 000 Closing balance 89 000 INFORMATION B Summary of transactions related to sales and debtors Balance (1 March 2023) R19 220 Credit sales 21 000 Total sales 39 000 Selling price of goods returned by customers 4 680 Bank (amount received from debtors during the month) 22 480 Balance (31 March 2023) 15 060 40 P.T.O.

Downloaded from hlayiso.com ACCOUNTING 10 GRADE 10 QUESTION 5: CREDITORS' RECONCILIATION AND INTERNAL CONTROL (30 marks; 23 minutes) 5.1 CREDITORS' RECONCILIATION KAGISO TRADERS The information for February 2023 provided below relates to the books of Kagiso Traders. REQUIRED: 5.1.1 Use the information below to correct and reconcile the Creditors’ Control account with the Creditors' list. (26) 5.1.2 The internal auditor of Kagiso Traders picked up invoices received from suppliers which did not match entries in the stock records of the business. He suspects that some goods were not delivered to the business premises. What measures should be implemented by the business to avoid paying for goods that were not received by the business? Provide TWO points. (4) INFORMATION: A. GENERAL LEDGER OF KAGISO TRADERS CREDITORS’ CONTROL Feb Bank and discount CPJ 30 800 Feb Balance b/d 8 330 28 received 28 Creditors' allowances CAJ 4 800 Total purchases CJ 48 400 Journal credits GJ 580 Journal debits GJ 450 Balance c/d 21 000 57 180 57 180 Mar Balance b/d 21 000 1 B. CREDITORS’ LIST Credit S. Mvelase 7 500 M. Pillay 3 800 G. George 2 850 R. Mokoena 6 300 20 450 P.T.O.

Downloaded from hlayiso.com ADDITIONAL INFORMATION: (i) The opening balance in the Creditors’ Control account is overcast by R1 500. (ii) The amount for goods bought from R. Mokoena was incorrectly recorded as R6 750 in the books. The correct amount that appears in the invoice is R6 570. (iii) An amount of R2 400 has been transferred to S. Mvelase via EFT. The transaction has not been recorded in the books of the business. (iv) A debit note issued to R. Mokoena for R360 has not been recorded in the journal but was posted to his account in the Creditors’ Ledger. (v) P. George was paid R850. This transaction was correctly entered in the journal but not posted to his ledger account. (vi) A debit note of R250, sent to M. Pillay, was recorded as purchases in his ledger account. This transaction was correctly recorded in the journal. (vii) The total of the Creditors’ Allowances Journal was undercast by R300, and was posted as such. 30 TOTAL: 200 END