Accounting Grade 10 Gauteng June 2018 Memo (English)

Downloaded from hlayiso.com GAUTENG DEPARTMENT OF EDUCATION PROVINCIAL EXAMINATION JUNE 2018 GRADE 10 ACCOUNTING MEMORANDUM 9 pages 1

Downloaded from hlayiso.com MEMORANDUM ACCOUNTING GRADE 10 GAUTENG DEPARTMENT OF EDUCATION PROVINCIAL EXAMINATION ACCOUNTING MEMORANDUM QUESTION 1: ANALYSIS OF TRANSACTIONS General Ledger Equation A/c Dr A/c Cr Amount A O L E.g. Water and Bank R450 - - 0 electricity + 01 Trading Stock Bank R10 000 0 0 - 03 Debtors’ Control Sales R5 200 + + 0 Cost of Sales Trading Stock R 4 160 - - 0 Debtors’ 10 Debtors’ Control R3 000 - - 0 Allowance Trading Stock Cost of Sales R2 400 + + 0 + 20 Bank Debtors’ Control R1 980 0 0 - Discount Allowed Debtors’ Control * R 220 - - 0 24 Postage Petty cash R45 - - 0 Fixed deposit: + Bank R18 000 0 0 Add Bank - 31 Debtors’ Control Interest Income R27 + + 0 *Check 10% of the sales [amount x  0.10 ÷ 0.90] *cv 46 2

Downloaded from hlayiso.com MEMORANDUM ACCOUNTING GRADE 10 QUESTION 2: SALARY SCALES, CALCULATIONS AND INTERNAL CONTROL No YEAR ANNUAL SALARY 1 2010 48 000 2 2011 52 800 3 2012 57 600 4 2013 62 800 5 2014 68 000 6 2015 73 500 7 2016 79 000 8 2017 84 500 2.1.1 48 000 / 12 = R4 000  (2) 2.1.2 2012 (1) 2.1.3 (52 800 – 48 000) / 48 000 x 100 = 10%  (2) 2.1.4 8 years  (2) 2.2 Gross Salary  6 700 Less : Deductions  1 958 PAYE  1 005 Medical aid Fund  350 Pension Fund  536 UIF  67 Net Salary  4 742 (7) 2.3.1 Is the action being considered by Greenwich Suppliers (2) appropriate? Motivate your answer by providing ONE point. Any valid point   Part-marks for unclear/incomplete explanation  The action is unlawful, it is a breach of the employment contract.  The employee can report the employer to the labour court or to the union, for implementing unlawful salary cuts. 2.3.2 What measures / actions should be applied by the employer to (4) increase productivity levels. Mention TWO points. Any two valid points   Part-marks for unclear/incomplete explanation  Train employees  Increased supervision over employees 20 Allocate one mark for training and supervision 3

Downloaded from hlayiso.com MEMORANDUM ACCOUNTING GRADE 10 QUESTION 3: CASH JOURNALS 3.1 CASH RECEIPTS JOURNAL OF KORTH TRADERS FOR APRIL 2018 Analysis Doc Day Details Fol of Bank Sales Cost of Debtors’ Discount Sundry Accounts Receipts Sales Control Allowed Amount Fol Details CRT 01 Sales 10 752  10 752 10 752  7 168 81 04 K. Sayed 1 520  1 520  1 600  80 82 18 Nkosi Suppliers 1 700  1 700 1 700 Creditors’ control CRT 22 Sales  20 600 20 600 13 733 83 28 IM Wise 300  300 Bad debts recovered B/S Crazy Bank 6 700  7 000 6 700 Loan: Crazy Bank 1 Mark=min of 4 doc no.’s and dates 16 4

Downloaded from hlayiso.com MEMORANDUM ACCOUNTING GRADE 10 CASH PAYMENTS JOURNAL OF KORTH TRADERS FOR APRIL 2018 Doc Day Payee Fol Bank Debtors’ Trading Creditors’ Discount Sundry Accounts Control Stock Control Received Amount Fol Details 113 07 R. Vania 2 280  2 280 114 Speedy Deliveries  260  260 115 09 Crazy Bank  580 580 Loan: Crazy Bank 116 10 Zwane Traders  3 120  3 300  180 B/S 20 N. Van Niekerk (RD)  2 760 2 760 117 26 Beauty Insurance Co. 10 400 10 400 Drawings B/S 30 World Bank  460 460 Bank charges 1 World Bank  160 160 Interest on overdraft Mark=min of 4 doc no.’s and dates 20 36 5

Downloaded from hlayiso.com MEMORANDUM ACCOUNTING GRADE 10 QUESTION 4: GENERAL JOURNAL AND GENERAL LEDGER 4.1 GENERAL JOURNAL OF PROWLER STATIONERS (No narrations needed) General Ledger Debtors’ control Creditors’ control Doc Day Details F Dr Cr Dr Cr Dr Cr no. 31 Totals 350 270 120 160 Drawings 200 Trading stock 200 Bad debts 160 C. Spender 160 160 M. Baartman 30 30 Discount allowed 30 Stationery 390 Trading stock 390 Mthembu Suppliers 280 280 M. Mthembu 280 280 Vehicles 170 000 Capital 170 000 Repairs 5 300 Land and buildings 5 300 Fixed deposit: Angel 20 000 Bank  Interest on Fixed 20 000 Deposit Award one  380 710 400 160 mark for all totals 31 6

Downloaded from hlayiso.com MEMORANDUM ACCOUNTING GRADE 10 4.2.1 GENERAL LEDGER OF CELE TRADERS Dr TRADING STOCK B6 Cr Jul 1 Balance b/d 20 600 Jul 31 Cost of sales CRJ 7 000 31 Bank CPJ 17 900 Cost of sales DJ 4 400 Cost of sales DAJ 220 Creditors’ CAJ 570 control Creditors’ CJ 5 990 Balance c/d 33 020 control Petty cash PCJ  280 44 990 44 990 Aug 1 Balance b/d 33 020 17 Dr SALES N1 Cr Jul 1 Total b/d 44 400 31 Bank CRJ 14 000 Debtors’ control DJ 8 800 6 4.2.2 Cele Traders relies on the accounting records for the calculation of the closing balance of stock. In your opinion briefly explain how the stock balance can be verified. Any valid point  Part-marks for unclear/incomplete explanation  Conduct physical stock count and check the balance of actual stock on hand against the records of the business. 2 56 7

Downloaded from hlayiso.com MEMORANDUM ACCOUNTING GRADE 10 QUESTION 5: DEBTORS’ RECONCILIATION 5.1 GENERAL LEDGER OF DISNEY DEALERS Dr DEBTORS’ CONTROL B7 Cr Jun 1 Balance b/d 13 460 Jun 30 Bank and discount CRJ 36 690 allowed 30 Sales DJ 48 240 Debtors’ DAJ 14 910 allowances (51 560 – 2 210 – 1 110) (13 520 + 280 + 1 110) Bank (r/d) CPJ 8 100 Journal credits GJ 6 080 (7 500 + 600) (1 290 + 4 790) Journal debits GJ  30 Balance c/d 12 150 69 830 69 830 Jul 1 Balance b/d 12 150 18 5.2 DEBTORS’ LIST FOR 30 JUNE 2017 DEBTORS M. Minnie (3 810 – 1 500)  2 310 P. Pluto (4 790 – 4 790) *0 G. Goofy (8 340 + 400)  8 740 D. Donald (2 690 – 1 110 – 1 110 + 600 + 30)  1 100 OR (2 690– 2 220 + 630)  12 150 *if workings are not provided allocate 2 marks to 0 16 8

Downloaded from hlayiso.com MEMORANDUM ACCOUNTING GRADE 10 5.3 By making reference to transaction no. 1 mention TWO control measures that should be implemented by the business before they can grant credit to customers. Any TWO valid points   Obtain the following information from customers before approving accounts:  Salary advice slip / Proof of income  Proof of residence / Address  Contact details of family / friend  Bank statement / Bank balance  Identity document  Credit references / Credit history  Email address 4 5.4 Name TWO ways in which you can encourage debtors to pay their accounts on time. Any TWO valid points   Part-marks for unclear/incomplete explanation  Give discounts for early payments.  Charge interest on overdue accounts.  Send regular statements / reminders.  Do not sell to overdue debtors. 4 42 9