Gr 10 Accounting P2 (English) 2023 Question Paper hlayiso.com

Downloaded from hlayiso.com PROVINCIAL EXAMINATION NOVEMBER 2023 GRADE 10 ACCOUNTING (PAPER 2) TIME: 2 hours MARKS: 150 10 pages, a formula sheet and a 9 page answer book. P.T.O.

Downloaded from hlayiso.com ACCOUNTING (PAPER 2) 2 GRADE 10 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 workings to earn part-marks. 4. Where applicable, round off all calculations to the nearest rand. All other calculations are to be rounded to ONE decimal place. 5. Read the instructions of each question carefully and follow them precisely. 7. Non-programmable calculators may be used. 8. All answers must be written in black or blue ink. 9. A FORMULA SHEET is attached at the end of this question paper. 10. 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 Concepts and Creditors' Reconciliation 42 34 minutes 2 Budgeting 34 26 minutes 3 Inventory, Problem Solving and Ethics 46 38 minutes 4 Cost Accounting 28 22 minutes Total 150 120 minutes P.T.O.

Downloaded from hlayiso.com ACCOUNTING (PAPER 2) 3 GRADE 10 QUESTION 1: CONCEPTS AND CREDITORS' RECONCILIATION (42 marks; 34 minutes) 1.1 CONCEPTS Indicate whether the following statements are TRUE or FALSE. Write only true or false in your ANSWER BOOK. 1.1.1 Payments made to creditors are recorded on the debit side of their account. 1.1.2 A receipt is issued by a creditor when goods are purchased on credit. 1.1.3 Trade creditors are classified as current assets in the records of a business. (3) 1.2 CREDITORS' RECONCILIATION METH STORES The information provided below was extracted from the records of Meth Stores for August 2023. The business maintains a mark-up of 25% on cost. REQUIRED: 1.2.1 Prepare the Creditors' Control Account in the General Ledger for August 2023. (17) 1.2.2 Prepare the corrected Creditors' List on 31 August 2023. (16) 1.2.3 Sammy Sithole works for Meth Stores. He is responsible for the following: ordering goods, receiving goods delivered by suppliers and for payment to the suppliers for goods delivered. The owner of Meth Stores is concerned that sales figures are not improving but goods (trading stock) are replaced frequently. Provide THREE internal control measures that should be implemented by Meth Stores. (6) NOTE: Show all your calculations in brackets. INFORMATION: A. Creditors Control balance on 31 July 2023, R33 500. P.T.O.

Downloaded from hlayiso.com ACCOUNTING (PAPER 2) 4 GRADE 10 B. TOTALS OF THE SUBSIDIARY JOURNALS ON 31 AUGUST 2023 Creditors' Journal Debtors' Journal Trading stock 24 000 Sales 36 000 Sundry accounts 2 100 Cost of sales 28 800 Creditors' control 26 100 Creditors' Allowances Journal Debtors' Allowances Journal Trading stock 2 000 Debtors’ allowances 1 000 Sundry accounts 200 Cost of sales 800 Creditors control 2 200 Cash Payments Journal General Journal Bank 66 895 Debtors' Control Creditors' Control Trading stock 23 000 Dr Cr Dr Cr Creditors control 25 550 780 850 950 800 Discount received 550 Sundry accounts 18 345 C. Creditors' List on 31 August 2023 Creditors Amount AB Dealers R14 350 BB Traders 7 400 Otto Furnishers 9 300 Crox Stationers 2 300 33 350 ERRORS AND ADDITIONAL INFORMATION: (i) An invoice for goods purchased from AB Dealers was erroneously posted to the account of BB Traders, R1 200. (ii) Payment of R600 by EFT was made to Crox Stationers for goods previously bought on credit. The transaction was recorded in the Cash Payments Journal but was not posted to the account of Crox Stationers in the Creditors Ledger. (iii) The Creditors' Control column in the Creditors' Journal was undercast by R300. (iv) No entry has been made for merchandise returned to BB Traders, R770. (v) An electronic transfer of R540 was made to the account of Otto Furnishers. It was correctly recorded in the Cash Payments Journal but posted to the account of Otto Furnishers in the Creditors Ledger as R450. (vi) A credit note for R330 received from AB Dealers for goods returned was entered correctly in the Creditors' Allowances Journal but was posted to the incorrect side of AB Dealers’ account in the Creditors' Ledger. 42 P.T.O.

Downloaded from hlayiso.com ACCOUNTING (PAPER 2) 5 GRADE 10 QUESTION 2: BUDGETING (34 marks; 26 minutes) 2.1 Gauteng High School for Boys The rugby team of Gauteng High School for Boys is planning a tour (trip) to Port Elizabeth. The tour is planned for the July 2024 school holidays. 2.1.1 Calculate the total expected cost of the tour for all the players (for a three day tour). (27) 2.1.2 Calculate the cost of the tour per player. (3) 2.1.3 How can the contributions expected from each player be reduced? Provide TWO methods that can be used to raise funds for the team, excluding the sources of funds mentioned in the given information. (4) INFORMATION: A. There are 15 players, 8 reserves in a team and 2 coaches. It is stated in the school policy that the cost of the 2 coaches must be covered by the players. B. The school was able to secure a sponsorship of R18 200 from Planet Rugby Sports. C. A donation of R7 700 was received from a rugby player who plays for the national team. D. The following are the costs/expenses for the tour: Uniform/Kit: A quotation was received from Cassim Outfitters for new uniforms and a sweater which amounts to R800 per player. The coaches will also receive sweaters that will cost R250 each. Accommodation: The team will sleep in two of the Port Elizabeth dormitories for the duration of the tour, at a cost of R980 per dormitory, per day. Transport: Bus hire is R18 000 plus R3,50 per km. The return distance to and from Port Elizabeth is 2 164 km. P.T.O.

Downloaded from hlayiso.com ACCOUNTING (PAPER 2) 6 GRADE 10 Meals: The team will be supplied with supper at a cost of R46 per person and breakfast at R18 per person. Lunch costs will be covered by the players. Entrance fee: On the third day the team and coaches will visit the Kruger National Park. The entrance fee is R150 per person. A 20% discount is granted for group bookings exceeding 20 people. 34 QUESTION 3: INVENTORY, PROBLEM SOLVING AND ETHICS (46 marks; 38 minutes) 3.1 INVENTORY KULA TRADERS The information below relates to Kula Traders for January 2023. REQUIRED: Refer to the Trading Stock Account in the General Ledger and answer the following questions: 3.1.1 What is the contra account for A? (1) 3.1.2 Where do we record the closing trading stock in the financial statements? (2) 3.1.3 What transaction gave rise to B? (2) 3.1.4 What is the contra account indicated by C? (1) 3.1.5 Give a reason for entry D. (2) 3.1.6 Calculate the missing amount for E. (2) 3.1.7 What is the contra account indicated by F? (1) 3.1.8 Calculate G, goods were sold on credit for R27 000, a mark-up of 25% was added. (3) 3.1.9 What is the folio reference for H? (1) 3.1.10 Give THREE possible reasons for item I. (6) 3.1.11 Calculate the missing amount for J. (3) P.T.O.

Downloaded from hlayiso.com ACCOUNTING (PAPER 2) 7 GRADE 10 INFORMATION: GENERAL LEDGER OF KULA TRADERS Dr TRADING STOCK ACCOUNT Cr 2023 1 Balance b/d 54 780 2023 31 (F) CAJ 5 700 Jan Jan 31 (A) CPJ 7 008 Cost of sales DJ (G) Creditors’ CJ 36 192 Cost of sales H 22 800 control (B) (C) DAJ 2 370 (I) GJ 900 Petty cash PCJ (E) Balance c/d (J) (D) 102 000 102 000 2023 1 Balance b/d ? Feb 3.2 PROBLEM SOLVING INFORMATION Thuli Mabuza owns four bakeries around Gauteng. They sell a variety of baked products to customers and retailers. The information below is extracted from two of her branches. She is concerned about targeted profits that were not achieved for more than 6 months. REQUIRED: Use information A and B provided to respond to the following questions. 3.2.1 Calculate the number of cakes sold at Diepkloof Square Bakery. (2) 3.2.2 Diepkloof Square Bakery has a high number of cakes that are not collected. Suggest TWO strategies that can be implemented by the business to improve collection of cakes by customers. (Refer to information A and B.) (4) 3.2.3 Suggest TWO methods that can be used by the business to promote sales. (4) 3.2.4 Refer to information A. Identify a problem at Naledi Mall Bakery and provide TWO solutions to the problem. Use figures to support the identified problem. (6) P.T.O.

Downloaded from hlayiso.com ACCOUNTING (PAPER 2) 8 GRADE 10 INFORMATION: A. Information on wedding and birthday cakes for September 2023 Diepkloof Square Naledi Mall Bakery Bakery Targeted number of sales 340 340 Number of orders placed by 280 290 customers Number of cakes sold ? 254 Number of cakes missing 0 34 Number of cakes on hand/not 8 2 collected by customers 3 bakers 3 bakers Number of employees 3 shop assistants 3 shop assistants B. • A deposit of 10% is paid before orders can be processed. • The minimum price for birthday cakes is R500 and for wedding cakes R1 800. 3.3 ETHICS Egoli Clothing Store Egoli Clothing Store is owned by Nelly Masinya. She sells clothes, handbags and shoes. The store is next to the Mall of East. Goods are sold for cash and on credit to loyal customers who qualify to buy on credit. Goods are bought in Italy (abroad). Nelly has been informed by her suppliers that a new branch will be opening in Witbank (Mpumalanga). Nelly will pay less for goods and transportation costs. She is not prepared to adjust the selling price of her goods. She feels that this is an opportunity to make more profit. REQUIRED 3.3.1 What advice would you offer her? Provide THREE points. (6) 46 P.T.O.

Downloaded from hlayiso.com ACCOUNTING (PAPER 2) 9 GRADE 10 QUESTION 4: COST ACCOUNTING (28 marks; 22 minutes) 4.1 CONCEPTS Match the concepts in COLUMN A with appropriate item or explanation provided in COLUMN B. Write only the letter next to the question numbers (4.1.1 to 4.1.5) in the ANSWER BOOK. INFORMATION: COLUMN A COLUMN B 4.1.1 Direct material cost A Manager in the factory 4.1.2 Direct labour cost B Advertising 4.1.3 Factory overhead cost C Office rent 4.1.4 Sales and distribution cost D Wood for the tables and chairs 4.1.5 Administration cost E Machine operators (5) 4.2 THELMA MANUFACTURES Thelma Manufacturers design handbags and sell them at a mark-up of 40% on cost. With the current loadshedding implementation, production costs have increased, and sales figures have decreased. REQUIRED: Calculate the following costs, showing all calculations. 4.2.1 Calculate the direct material cost. (9) 4.2.2 Calculate the direct labour cost. (3) 4.2.3 Calculate the total direct cost. (2) 4.2.4 Calculate the factory overhead cost. (2) 4.2.5 Calculate the total cost of production. (2) 4.2.6 Calculate the production cost per handbag. (2) 4.2.7 Calculate the selling price per handbag. (3) P.T.O.

Downloaded from hlayiso.com INFORMATION: The following costs are taken from records of Thelma Manufacturers for the month of September 2023. COSTS AND EXPENSES Per handbag Quantity Price per item Zips 2 R5 per zip Fabric 1,5 metres R25 per metre Sewing cotton 10 metres R2 per metre Beads 4 packets R9 per packet Labour Cost Labour (factory) 3 hours R36 per hour Factory Expenses Amount Rent R4 000 Electricity R700 Insurance R590 Cleaning material R350 • 100 units were produced and sold 28 TOTAL: 150 END

Downloaded from hlayiso.com GRADE 10 ACCOUNTING FINANCIAL INDICATORS FORMULA SHEET Gross profit 100 Gross profit 100 Net profit 100    Sales 1 Cost of sales 1 Sales 1 Operating expenses 100 Operating profit 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 100  Total assets: Total liabilities Owner' s equity 1