Accounting Grade 11 P2 Gauteng November 2022 Memo (English)

Downloaded from hlayiso.com PROVINCIAL EXAMINATION NOVEMBER 2022 GRADE 11 MARKING GUIDELINES ACCOUNTING (PAPER 2) 11 pages Marking principles: 1. Penalties for foreign items are applied only if the candidate is not losing marks elsewhere in the question for that item (no penalty for misplaced item). No double penalty applied. 2. Penalties for placement or poor presentation (e.g. details) are applied only if the candidate is earning marks on the figures for that item. 3. Full marks for correct answer. If answer is incorrect, mark the workings provided. 4. If a pre-adjustment figure is shown as a final figure, allocate the part-mark for the working for that figure (not the method mark for the answer). 5. Unless otherwise indicated, the positive or negative effect of any figure must be considered to award the mark. If no + or – sign or bracket is provided, assume that the figure is positive. 6. Where indicated, part-marks may be awarded to differentiate between differing qualities of answers from candidates. 7. Where penalties are applied, the marks for that section of the question cannot be a final negative. 8. ‘Operation’ means check operation. ‘One part correct’ means operation and one part correct. Note: ‘check operation’ must be +, -, x, ÷ as per memo. 9. ‘One part correct’ means operation and one part correct. Where method marks are awarded for one part correct, the marker must inspect the reasonableness of the answer and at least one part must be correct before awarding the mark. If a figure has earned a method mark, this will be regarded as ‘one part correct’. 10. In calculations, do not award marks for workings if numerator and denominator are swapped – this also applies to ratios. 11. In awarding method marks, ensure that candidates do not get full marks for any item that is incorrect at least in part. Indicate with a  12. Be aware of candidates who provide valid alternatives beyond the marking guideline. 13. Codes: f = foreign item; p = placement/presentation.

Downloaded from hlayiso.com ACCOUNTING MARKING GUIDELINES (PAPER 2) GRADE 11 QUESTION 1: RECONCILIATIONS 40 marks; 32 minutes 1.1 Choose the correct word/s that match/es with the statements below. 1.1.1 debit √ 1.1.2 CRJ √ 1.1.3 materiality √ 1.1.4 credit card √ 1.1.5 liability √ 5 1.2 1.2.1 Cash Receipts Journal and Cash Payments Journal for June 2022 CASH RECEIPTS JOURNAL CASH PAYMENTS JOURNAL 20 420 29 070 3 500 √ 260 √ 52 √ 250 √ 3 600 √√ 4 950 √√ 27 572  34 530  10 2

Downloaded from hlayiso.com ACCOUNTING MARKING GUIDELINES (PAPER 2) GRADE 11 1.2.2 Bank Reconciliation Statement of Mamba Traders on 30 June 2022 Debit Credit Cr balance as per bank statement √ 11 892 Cr outstanding deposit √ 750 Dr outstanding EFTs No: 250 √ √ 2 300 No. 251 √ √ 1 700 Dr balance as per bank account √  8 642 12 642 12 642 8 23 1.3 1.3.1 Creditors' Reconciliation of Adamjee Foods Creditors’ Reconciliation on 31 May 2022 Creditors' Ledger of Statement of Account Adamjee Foods from Kajee Meats Balance 56 500 √ 67 500 √ i -9 000 √√ ii -2 500 √ iii +11 000 √ iv +6 000 √ v -5 000 √ vi -500 √ +7 000 √√ vii OR (3 500 + 3 500) Total 65 500  65 500  Operation one part correct 13 3

Downloaded from hlayiso.com ACCOUNTING MARKING GUIDELINES (PAPER 2) GRADE 11 1.3.2 Kajee’s bookkeeper advised him to stop accepting cash payments from the businesses that he supplies with meat. He is advised to request that all payments should be made electronically using the customers' numbers as references. Discuss TWO advantages of this method of payment. • The bank statement can be used as a source document to record all money received. • Money cannot be lost/spent/misplaced by Kajee while delivering to these businesses. • Kajee will also be safer as he will not be carrying large amounts of cash in his delivery vehicle. Any TWO relevant points. √√ 4 40 QUESTION 2: COST ACCOUNTING (40 marks; 32 minutes) 2.1 CONCEPTS 2.1.1 Indirect labour √ or factory overhead 2.1.2 Selling and distribution costs √ 2.1.3 Administration √ 2.1.4 Direct Materials √ 2.5.5 Factory overhead √ 5 4

Downloaded from hlayiso.com ACCOUNTING MARKING GUIDELINES (PAPER 2) GRADE 11 2.2 GENERAL LEDGER OF FASHION JEANS MANUFACTURERS 2.2.1 DR RAW MATERIAL STOCK ACCOUNT B2 CR 2021 b/d 1 Balance √ 72 000 W-I-P  1 191 625 Mar c/d Bank √ 850 000 Balance √ 54 000 Carriages √ 53 000 Customs Duties (124 000 + √143 125 19 125) Creditors' Control √ 127 500 1 245 625 1 245 625 2022 1 Balance b/d 54 000 Mar 8 2.2.2 DR FACTORY OVERHEAD COST ACCOUNT N2 CR 2022 2022 28 Foreman's Salary 142 000 28 W-I-P  579 120 Feb Feb Indirect labour 72 000 Indirect Materials (7 000√ +  46 200 43 000√ – one part correct 3 800√) Factory rent √√ 256 000 (320 000 x 0,8) Sundry Expenses √√ 13 920 (17 400 x 0,8) Insurance √√ 28 000 (42 000 x 4/6) Water and Electricity √ 21 000 579 120 579 120 12 5

Downloaded from hlayiso.com ACCOUNTING MARKING GUIDELINES (PAPER 2) GRADE 11 2.2.3 DR WORK-IN-PROGESS STOCK ACCOUNT B3 CR 2021 2022 Finished Goods 1 Balance b/d 81 000 28 2 552 745 Mar Feb Stock Direct Material GJ 1 191 625 Balance c/d Cost √ 62 000 Direct Labour √ 763 000 GJ Cost Factory  579 120 Overhead Cost 2 614 745 2 614 745 2022 1 Balance b/d 62 000 Mar 05 2.2.4 DR FINISHED GOODS STOCK ACCOUNT B5 CR 2021 2022 1 Balance b/d 138 000 28 Cost of Sales  2 525 745 Mar Feb 2022 Work in 28 GJ  2 552 745 Balance c/d Feb Process √ 165 000 2 690 745 2 690 745 2022 1 Balance b/d 165 000 Mar 3 6

Downloaded from hlayiso.com ACCOUNTING MARKING GUIDELINES (PAPER 2) GRADE 11 2.3 LITTLE ANGELS TOY MANUFACTURERS 2.3.1 Provide calculations to show that the break-even point for the year ended 28 February 2022 is 507 units. Total fixed cost Selling price − Variable cost 136 890 √ = 860√ − 590 √ 136 800 = 270 = 507 units (3) 2.3.2 Explain using figures, why is the owner not happy with the break- even point. The business is currently producing less than the BEP by 27 units. √√ The business is incurring a loss of R7 290. (2) 2.3.3 The owner has been importing plastic material from Botswana. She wants to change to a local supplier who is supplying plastic material which is of a lower quality. Do you agree or disagree with her decision? Give a reason for your answer. Disagree √ • Quality of the product will not be the same. • The customers may not be made aware of the cheaper quality material. • She will lose customers if quality of final product is poor. • She could be faced with lawsuits if there are accidents related to the poor quality. Any one relevant answer. √ (2) 7 40 7

Downloaded from hlayiso.com ACCOUNTING MARKING GUIDELINES (PAPER 2) GRADE 11 QUESTION 3: VAT AND INVENTORY SYSTEMS (30 marks; 24 minutes) 3.1 VAT 3.1.1 State whether the following statement is TRUE or FALSE. Explain the reason for your answer. All goods are charged VAT at 15% in South Africa. False √ Some items are subjected to VAT at the standard rate – VAT charged at 15%. √ Others are zero-rated – 0% VAT charged. √ Other goods are exempt – No VAT is charged at all. √ (4) 3.1.2 A √ 640 000 B √ 96 000 C √ 5 290 D √ 133 500 4 3.2 3.2.1 False √ 3.2.2 True √ 3.2.3 False √ 3.2.4 False √ 3.2.5 True √ 5 8

Downloaded from hlayiso.com ACCOUNTING MARKING GUIDELINES (PAPER 2) GRADE 11 3.3 3.3.1 Calculate the cost of sales for the year ended 30 September 2022. Show all your calculations. Opening Stock √ 34 000 Purchases (424 570√ + 96 000√ – 103 000√ – 12 000√ – 320√)  405 250 Operation one part correct Carriage on purchases (500 x 19) √√ 9 500 Closing Stock ( 275 x 90) √√ (24 750) Cost of Sales Operation one part correct  424 000 (12) 3.3.2 Calculate the average rate of stock turnover for 2022. Cost of Sales____ Average Stock = 424 000_√_ _ √ ½ (34 000 √ + 24 750 √) = 424 000 29 375 = 14,4 times  Operation one part correct (5) 30 9

Downloaded from hlayiso.com ACCOUNTING MARKING GUIDELINES (PAPER 2) GRADE 11 QUESTION 4: CASH BUDGETS AND PROJECTED INCOME STATEMENT (40 marks; 32 minutes) 4.1 Amount in the Cash Budget Amount in the Projected Income No. for October 2022 Statement for October 2022 RECEIPT PAYMENT INCOME EXPENSE Example 0 R5 870 0 R5 870 4.1.1 √ 15 870 4.1.2 √ 92 950 √ 3 260 4.1.3 √ 8 580 √ 580 √ 134 960 4.1.4 √ 134 960 Accept 38 560 for 2 √ 96 400 marks 8 4.2 4.2.1 DEBTORS' COLLECTION SCHEDULE FOR SEPTEMBER AND OCTOBER 2022 Credit sales September October August 57 000 √ 17 100 √ 8 550 √ 26 600  16 800 September √√ 56 000 Credit sales x Credit sales 50% x 95% x 30% October 55 000 √ 26 125 Debtors' collections Operation one part correct  43 700  51 475 10 10

Downloaded from hlayiso.com ACCOUNTING MARKING GUIDELINES (PAPER 2) GRADE 11 4.2.2 Calculate the missing amounts indicated by the letters A to J in the Cash Budgets for September and October 2022. Workings Answer 75 A 55 000 √ x √ √ 165 000 25 Operation one part correct B See 4.2.1  51 475 C 15 000 x 85% √√12 750 40 D 33 000 √ x √  22 000 60 Operation one part correct E 30 000 x 97% √√ 29 100 F 6 000 – 800 √ 5 200 1 G 40 000 √ x 12% = 4 800 √ x √  400 12 Operation one part correct 100 H 42 000 √ x √ √ 40 000 105 Operation one part correct I √ 15 000 J √ 15 000 22 40 TOTAL: 150 11