Accounting Grade 11 P2 Gauteng November 2022 QP (Eng)

Downloaded from hlayiso.com PROVINCIAL EXAMINATION NOVEMBER 2022 GRADE 11 ACCOUNTING (PAPER 2) TIME: 2 hours MARKS: 150 13 pages + 1 formula sheet and an answer book of 11 pages P.T.O.

Downloaded from hlayiso.com ACCOUNTING 2 (PAPER 2) GRADE 11 INSTRUCTIONS AND INFORMATION 1. Answer ALL the questions. 2. A special ANSWER BOOK is provided in which to answer ALL the questions. 3. A FORMULA SHEET for financial indicators is provided at the back of this question paper. You may use it if necessary. 4. Show ALL workings to earn part-marks. 5. Where applicable, round all calculations to the nearest rand. All other calculations must be rounded off to one decimal place. 6. Read the instructions of each question carefully and follow them precisely. 7. Learners will forfeit marks for: • The use of non-standardised abbreviations • Overwriting of figures or words • Superfluous/foreign entries 8. You may use a non-programmable calculator. 8. Write neatly and legibly. 9. You may use blue/black ink to answer the questions. 10. Use the information in the table below as a guide when answering the question paper. Try NOT to deviate from it. QUESTION TOPIC MARKS TIME IN MINUTES 1 Reconciliations 40 32 minutes 2 Cost Accounting 40 32 minutes 3 VAT and Inventory Systems 30 24 minutes Cash Budgets and Projected Income 4 40 32 minutes Statement TOTAL 150 120 minutes P.T.O.

Downloaded from hlayiso.com ACCOUNTING 3 (PAPER 2) GRADE 11 QUESTION 1: RECONCILIATIONS (40 marks; 32 minutes) MAMBA TRADERS BANK RECONCILATION Mamba Traders appointed a new bookkeeper who is struggling to prepare a Bank Reconciliation Statement for June 2022. REQUIRED: 1.1 CONCEPTS Choose the correct word/s that match/es with the statements below. Write only the answer next to the question numbers (1.1.1 to 1.1.5) in the ANSWER BOOK. materiality; prudence; debit; credit; CRJ; CPJ; debit card; credit card; liability; asset (5) 1.1.1 A __________ balance on the Bank Statement is an unfavourable balance. 1.1.2 Interest credited on the Bank Statement is recorded in the __________. 1.1.3 Service fees and ATM deposit fees are added and recorded as bank charges according to the __________ concept. 1.1.4 A __________ is used to buy goods or services from suppliers and the amount used is paid back to the bank at a later date. 1.1.5 An unfavourable balance to the bank is a/an __________ to the business. 1.2 Use the following information taken from the accounting records of Mamba Traders. REQUIRED: 1.2.1 Calculate the correct totals for the Cash Receipts Journal and Cash Payments Journal. (10) 1.2.2 Prepare the Bank Reconciliation Statement as at 30 June 2022. (8) P.T.O.

Downloaded from hlayiso.com ACCOUNTING 4 (PAPER 2) GRADE 11 INFORMATION: A Extract from the Bank Reconciliation Statement on 31 May 2022 DR CR Balance as per Bank Account 15 600 Outstanding deposits 8 800 Outstanding EFTs No. 178 5 900 No. 201 1 750 No. 220 7 350 No. 225 5 500 Balance as per Bank Statement 27 300 B The balance on the Bank Statement on 30 June 2022 was R11 892 (favourable). C The Cash Journals had the following totals on 30 June 2022, before the Bank Reconciliation was completed: CASH RECEIPTS R20 420 CASH PAYMENTS R29 070 D The following items appeared on the Bank Statement for June 2022, but not in the Cash Journals for June 2022: • EFT numbers 201 and 220 • Deposit of R8 800 • A direct deposit of R3 500 was made by a tenant for her July 2022 rent. • Bank charges of R260 • A debit card payment of R250 to purchase new windscreen wipers for the vehicle • Interest on the credit balance of R52 E The following items appeared in the Cash Journals for June 2022 but not on the Bank Statement. • EFT number 250 for stationery bought and EFT number 251 for petrol for the owner’s private vehicle worth R2 300 and R1 700 respectively. • An outstanding deposit of R750 from a customer. F The following errors were noted when preparing the Bank Reconciliation Statement for July. • EFT number 178 was incorrectly recorded in the Cash Payment Journal for May 2022. The correct amount of R2 300 appears on the Bank Statement for June 2022. • EFT number 225 was incorrectly recorded in the Cash Payments Journal for May 2022. The correct amount of R10 450 appears on the Bank Statement for June 2022. P.T.O.

Downloaded from hlayiso.com ACCOUNTING 5 (PAPER 2) GRADE 11 1.3 CREDITORS' RECONCILATION ADAMJEE FOODS Adamjee Foods is a restaurant located in Sandton, Gauteng. This business caters for workers in the area and provides them with healthy meals during tea and lunch breaks. Adamjee Foods has an account with Kajee Meats from where they purchase meat. REQUIRED: 1.3.1 Use the table provided in your ANSWER BOOK to reconcile the Creditors' Ledger of Adamjee Foods with the statement received from Kajee Meats at the end of April 2022. Write only the amounts in the appropriate column with a plus (+) or (-) sign to indicate an increase or a decrease in the balance. Calculate the correct balance/total at the end of the month. (13) 1.3.2 Kajee’s bookkeeper advised him to stop accepting cash payments from the businesses that he supplies with meat. He was advised to request that all payments should be made electronically using the customers' numbers as references. Discuss TWO advantages of using this method of payment. (4) INFORMATION: A The balances on 30 April 2022 before the completion of the Creditors' Reconciliation were as follows. Adamjee Foods Creditors' Ledger R56 500 Account Statement from Kajee Meats R67 500 B Errors and omissions discovered during the reconciliation process. i The opening balance on 1 April 2022 in the Creditors' Ledger of Adamjee Foods was recorded as R76 000 instead of R67 000. ii Stock amounting to R2 500 that was returned by Adamjee Foods was not recorded in the statement of account from Kajee Meats. iii An invoice of R11 000 issued by Kajee Meats had not been recorded in the Creditor s’ Ledger of Adamjee Foods. iv Stock of R6 000 returned by Akojee Foods was accidentally recorded as Adamjee Foods on the statement received from Kajee Meats. P.T.O.

Downloaded from hlayiso.com ACCOUNTING 6 (PAPER 2) GRADE 11 v A cash payment of R5 000, from Adamjee Foods was not reflected on the statement from Kajee Meats. Upon investigation, it was discovered that Kajee Meats did not have a receipt book on the day the money was received, therefore no source document was issued. It was assumed that Adamjee Foods was correct. vi Interest of R500 charged by Kajee Meats on the overdue account of Adamjee Foods needs to be cancelled as the account was paid on time. vii An invoice for R3 500 received from Kajee Meats was recorded as a debit 40 note in the Creditor’s Ledger of Adamjee Foods. QUESTION 2: COST ACCOUNTING (40 marks; 32 minutes) 2.1 CONCEPTS For each item below, indicate the appropriate cost category from the following options. Write only the word/s next to the question numbers (2.1.1 to 2.1.5) in the ANSWER BOOK. Selling and distribution; Direct materials; Factory overheads; Indirect labour; Administration 2.1.1 Wages paid to the factory supervisor 2.1.2 Advertising 2.1.3 Office telephone 2.1.4 Materials used to make the final product 2.1.5 Insurance paid by the factory (5) 2.2 FASHION JEANS MANUFACTURERS You are provided with the following information relating to Fashion Jeans Manufacturers. The financial year ends on 28 February each year. REQUIRED: Prepare the following accounts in the General Ledger. NOTE: You are required to balance all accounts. 2.2.1 Raw Material Stock (8) 2.2.2 Factory Overhead Cost (12) 2.2.3 Work-in-progress Stock (5) 2.2.4 Finished Goods Stock (3) P.T.O.

Downloaded from hlayiso.com ACCOUNTING 7 (PAPER 2) GRADE 11 INFORMATION: A The following balances appeared in the books of Fashion Jeans Manufacturers. 28 February 2022 1 March 2021 Raw Material Stock 54 000 72 000 Consumable stores on hand (indirect 3 800 7 000 materials) Work-in-progress Stock 62 000 81 000 Finished goods Stock 165 000 138 000 B Summary of transactions for the year ended 28 February 2022 Raw materials purchased for cash during the year 850 000 Carriage on purchases paid on raw materials purchased 53 000 Customs duties paid 124 000 Advertising paid 55 000 Wages: Factory workers 763 000 Factory cleaner 72 000 Factory foreman’s salary 142 000 Rent paid 320 000 Water and electricity paid 28 000 Indirect material purchased 43 000 Sundry expenses paid 17 400 Office assistant’s salary for the year 130 000 Commission paid to salespersons 100 000 Insurance paid 42 000 Motor vehicle expenses paid: Selling and distribution 25 200 Administration 56 000 Stationery and printing paid (all administration) 11 000 P.T.O.

Downloaded from hlayiso.com ACCOUNTING 8 (PAPER 2) GRADE 11 C Additional information and adjustments: 1. Raw material costing R127 500 purchased on credit from Alt Traders, a foreign based company, has not been recorded. Customs duties of 15% on this purchase that was paid was not recorded. 2. Rent and sundry expenses are allocated according to the percentage of floor space used. Factory 80%, office 5% and shop 15%. 3. Insurance is to be apportioned in the ratio of 4:1:1 to factory, selling and distribution and administration costs respectively. 4. Water and electricity of R21 000 relates to the factory. The rest is shared equally between the administration and sales departments. 2.3 LITTLE ANGELS TOY MANUFACTURERS Little Angels Toy Manufacturers manufactures scooters for toddlers. The information below was taken from their records for the financial year ended 28 February 2022. REQUIRED: 2.3.1 Provide calculations to show that the break-even point for the year ended 28 February 2022 is 507 units. (3) 2.3.2 Explain using figures why the owner is not happy with the break-even point. (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. (2) INFORMATION: The following information was extracted from the books of Little Angels Toy Manufacturers. Selling price per unit R860 Variable cost per unit R590 Fixed costs R136 890 Number of units produced and sold 480 units Break-even point 507 units 40 P.T.O.

Downloaded from hlayiso.com ACCOUNTING 9 (PAPER 2) GRADE 11 QUESTION 3: VAT AND INVENTORY SYSTEMS (30 marks; 24 minutes) 3.1 VAT KAMA STORES You are provided with extracts from the books of Kama Stores, a registered VAT vendor. Goods are subject to VAT at a rate of 15%. REQUIRED: 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. (4) 3.1.2 Calculate the amounts marked A – D in the table given below. (4) INFORMATION: Excluding VAT Including VAT VAT A R736 000 B R4 600 C R890 000 D 3.2 INVENTORY SYSTEMS Indicate whether the following statements are TRUE or FALSE. Write only True or False next to the question numbers (3.2.1 to 3.2.5) in the ANSWER BOOK. 3.2.1 Carriage on sales increases the value of trading stock when using the periodic inventory system. 3.2.2 One advantage of the perpetual inventory system is that stock theft is easily detected. 3.2.3 Cost of sales is calculated at the end of a certain period in the perpetual inventory system. 3.2.4 The periodic inventory system is mainly used when large volumes of high cost items are sold. 3.2.5 The perpetual inventory system is costly to administer. (5) P.T.O.

Downloaded from hlayiso.com ACCOUNTING 10 (PAPER 2) GRADE 11 S. SMITH 3.3 The information provided below relates to a business run by S. Smith which sells school sun hats. The business uses the Periodic Inventory System. The financial year ends on 30 September 2022. REQUIRED: 3.3.1 Calculate the cost of sales for the year ended 30 September 2022. Show all your calculations. (12) 3.3.2 Calculate the average rate of stock turnover for 2022. (5) INFORMATION: Balances/Totals in the General Ledger 30 September 2022 1 October 2021 Stock of school sun hats ? 34 000 Creditors' Control 96 000 103 000 Additional adjustments not taken into account: A. School sun hats are bought on credit by the business. B. The supplier charges R500 per delivery. 19 separate orders were made and delivered during the year. C. Creditors were paid R424 570 during the financial year. D. Four sun hats with a cost price of R80 each were damaged and returned to the supplier during the financial year. E. Old stock to the value of R12 000 was donated to a local orphanage. F. At the year-end physical stocktaking, 275 hats were on hand at an 30 average cost of R90 each. P.T.O.

Downloaded from hlayiso.com ACCOUNTING 11 (PAPER 2) GRADE 11 QUESTION 4: CASH BUDGETS AND PROJECTED INCOME STATEMENT (40 marks; 32 minutes) 4.1 CASH BUDGETS AND PROJECTED INCOME STATEMENT JADEN STORES The following transactions were taken from the records of Jaden Stores for the period ending 31 October 2022. Complete the table in the ANSWER BOOK by filling in the amounts only in the relevant column(s). (8) Example: The stationery account for October 2022, R5 870 was paid by EFT. Amount in the Cash Amount in the Projected Income No. Budget for October 2022 Statement for October 2022 RECEIPT PAYMENT INCOME EXPENSE Example 0 R5 870 0 R5 870 Transactions: 4.1.1 Total depreciation on tangible assets for the financial year ended 31 October 2022 amounted to R15 870. 4.1.2 Cash payments to creditors for October 2022 are expected to be R92 950 after taking out discounts of R3 260 for early payments. 4.1.3 An instalment of R8 580 on the loan is expected to be paid on 25 October 2022. R580 of this amount is the interest on loan. 4.1.4 The expected cash sales for October 2022 was estimated to be R134 960. The profit mark-up is 40% on cost. P.T.O.

Downloaded from hlayiso.com ACCOUNTING 12 (PAPER 2) GRADE 11 4.2 CASH BUDGETS TRYHARD STORES The information below relates to Tryhard Stores. Their financial year ends on 30 September 2022. REQUIRED: 4.2.1 Prepare the Debtors' Collection Schedule for September and October 2022. (10) 4.2.2 Calculate the missing amounts indicated by the letters A to J in the Cash Budgets for September and October 2022. (22) INFORMATION: 1. Extract of Cash Budgets for the period September and October 2022 Cash Receipts September October Cash sales 168 000 A Collection from debtors 43 700 B Rent income 15 000 C Cash Payments Cash purchases 20 000 D Payments to creditors 29 100 E Sundry expenses F 6 000 Loan 10 000 -- Interest on loan (12%) 500 G Salaries H 42 000 Drawings I J 2. Sales and Purchases Months Credit Sales Credit Purchases August 57 000 27 000 September ? 30 000 October 55 000 33 000 November 54 600 36 000 Note: Credit sales are 25% of the total sales. P.T.O.

Downloaded from hlayiso.com ACCOUNTING 13 (PAPER 2) GRADE 11 3. Debtors are expected to pay as follows: • 50% in the transaction month subject to a 5% discount • 30% in the month following the transaction month • 15% in the second month following the transaction month • 5% will be written off as bad debts after the third month 4. Rent will decrease by 15% from 1 October 2022. 5. Credit purchases are 60% of total purchases. Creditors are paid one month after purchases subject to a 3% discount. 6. Sundry expenses increase by R800 each month. 7. Balance on 1 September 2022 Loan: Big Bank 50 000 8. Part of the loan will be repaid on 30 September 2022. 9. Salaries will increase by 5% with effect from 1 October 2022. 10. The owner plans to withdraw R15 000 cash per month for personal use. He will also take an additional R2 000 stationery home for his children 40 in October. TOTAL: 150 END

Downloaded from hlayiso.com ACCOUNTING 14 (PAPER 2) GRADE 11 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 Total earnings by Partner 100 Net Profit 100   Average Partners' Equity 1 Average Partners' Equity 1 Current Assets: Current Liabilities Current Assets – Inventories: Current Liabilities Average Debtors 365 12 Average Creditors 365 12  or  or Credit Sales 1 1 Credit Purchases or Cost of Sales 1 1 Average Inventorie s 365 12 Cost of Sales  or Cost of Sales 1 1 Average Inventorie s Non-Current Liabilities: Partners’ Equity Total Assets: Total Liabilities Fixed Cost Selling price per unit − Variable costs per unit