Accounting Grade 10 Gauteng June 2018 Question Paper (Eng)

Downloaded from hlayiso.com GAUTENG DEPARTMENT OF EDUCATION PROVINCIAL EXAMINATION JUNE 2018 GRADE 10 ACCOUNTING TIME: 2 hours MARKS: 200 11 pages P.T.O.

Downloaded from hlayiso.com ACCOUNTING 2 GRADE 10 GAUTENG DEPARTMENT OF EDUCATION PROVINCIAL EXAMINATION ACCOUNTING MARKS: 200 TIME: 2 hours INSTRUCTIONS AND INFORMATION 1. Answer ALL the questions. 2. Answer all the 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. Changes must be done neatly. ILLEGIBLE figures will not be marked. 7. Use the information in the table below when answering questions. 8. Try not to deviate from the time allocated per question. Time in Question Details Marks minutes 1 Analysis of Transactions 46 28 2 Salaries 20 12 3 Cash Journals 36 22 4 General Journal and General Ledger 56 34 5 Debtors’ Reconciliation 42 24 Total 200 120 P.T.O.

Downloaded from hlayiso.com ACCOUNTING 3 GRADE 10 QUESTION 1: ANALYSIS OF TRANSACTIONS (46 marks; 28 minutes) INFORMATION Soca Pillay is the owner of Soccer Suppliers. The business uses a mark-up of 25% on cost of goods sold. REQUIRED Analyse the transactions that occurred in April 2018 according to the answer book provided. The first transaction has been done for you as an example: Assume that Bank has a favourable balance at all times. TRANSACTIONS E.g. Paid water and electricity account by cheque, R450. 01 Soccer Suppliers bought merchandise for cash, R10 000. 03 Sold goods on credit to B. Naidoo for R5 200. 10 B. Naidoo returned damaged stock with a cost price of R2 400, issued a credit note. 20 B. Naidoo settled his account in full less 10% cash discount. 24 Paid for stamps from petty cash, R45. A fixed deposit of R18 000, at ADD Bank matured on this day. Received the amount by cheque. 31 Charged B. Smith interest at 12% per annum on his overdue account of R900 for 3 months. QUESTION 2: SALARY SCALES, CALCULATIONS AND INTERNAL CONTROL (20 marks; 12 minutes) 2.1 The following salary scale was prepared for Salmon Nkonde, an admin clerk who works at Greenwich Suppliers. He was employed on 1 January 2010. 48 000 x 4 800 57 600 x 5 200 68 000 x 5 500 84 500 P.T.O.

Downloaded from hlayiso.com ACCOUNTING 4 GRADE 10 Complete the table in you answer book and answer the following questions. 2.1 2.1.1 What is Salmon’s monthly starting salary? (2) 2.1.2 In which year will Salmon earn R57 600? (1) 2.1.3 By what percentage will Salmon’s salary increase at the end of the first year? (2) 2.1.4 How many years will Salmon have to work before he earns an annual salary of R84 500? (2) 2.2 Use the information given below to calculate the NET SALARY for the employee (Dorothy Sibande) for March 2017. (7) INFORMATION Gross salary R6 700 PAYE 15% of the gross salary Medical Aid Fund R4 200 per annum Pension Fund 8% of gross salary UIF 1% of gross salary 2.3 The owner of Greenwich Suppliers is dissatisfied with the production levels of his employees, he threatened to cut the salaries of employees. 2.3.1 Is the action being considered by Greenwich Suppliers appropriate? Motivate your answer by providing ONE point. (2) 2.3.2 What measures / actions should be applied by the employer to increase productivity levels. Mention TWO points. (4) P.T.O.

Downloaded from hlayiso.com ACCOUNTING 5 GRADE 10 QUESTION 3: CASH JOURNALS (36 marks; 22 minutes) The following information was taken from the accounting records of KORTH Traders for the month of April 2018. REQUIRED 3.1 Enter the transactions listed below in the Cash Journals of KORTH Traders for April 2018. [Do not total the Journals.] (36) INFORMATION Date Transactions for April 2018 01 Information as per Cash Register Tape (CRT) no. 42: Sales, R10 752 (Cost of sales, R7 168). 04 Issued receipt no. 81 to K. Sayed for R1 520, in settlement of her debt of R1 600. 07 Purchased merchandise for R2 400 less 5% trade discount from R. Vania and paid by cheque no. 113. Paid Speedy Deliveries R260 by cheque to deliver the above-mentioned merchandise to the business. 09 Issued a cheque to Crazy Bank for R580 to meet the monthly repayment towards the loan. 10 Paid R3 120 to Zwane Traders by cheque on account and received a discount of R180. 18 Received cheque no. 687 for R1 700 from Nkosi Suppliers, a creditor as a refund for an over payment made to them in March 2018. 20 A cheque drawn by N. Van Niekerk for R2 760 in settlement of her account of R2 800 was returned by the bank unpaid, due to insufficient funds. 22 Total credit card sales to date, R20 600. Cost of sales, R13 733. 26 Sent a cheque for R10 400 to Beauty Insurance Co. to pay the owner’s annual insurance premium on her personal vehicle. P.T.O.

Downloaded from hlayiso.com ACCOUNTING 6 GRADE 10 28 A debtor, IM Wise, paid R300 towards an account that had been previously written off during December 2017. Received R6 700 from Crazy Bank to increase the loan. 30 The bank statement received from World Bank revealed the following that still has to be recorded in the Cash Journals:  Service fees, R220  Credit card levy , R50  Cash handling fees, R190  Interest on an unfavourable bank balance, R160. P.T.O.

Downloaded from hlayiso.com ACCOUNTING 7 GRADE 10 QUESTION 4: GENERAL JOURNAL AND GENERAL LEDGER (56 marks; 34 minutes) 4.1 GENERAL JOURNAL The following information was taken from the books of Prowler Stationers. Take note of the following points when recording:  Indicate the origin of the transactions by means of folio references.  The business uses a mark-up of 100% on cost price.  Dates must be clearly stated.  Balance or total all General Ledger accounts.  Leave out narrations in the General Journal. REQUIRED Record the following transactions given below in the General Journal on 31 July 2017. Provisional totals have been given. (31) General Journal Debtors’ Control Creditors’ Control Dr Cr Dr Cr 350 270 120 160 Transactions for 31 July 2017 1 The owner took stock from the business for a personal gift, marked R400. 2 C. Spender owed R200. Her insolvent estate paid 20c in the rand.This amount has been recorded. The remainder of her debt must still be written off. 3 The dishonoured cheque of R140 was received from M. Baartman. This amount has been recorded. Discount of R30 must still be cancelled. 4 Stationery purchased from Walter Stationers, R390 was incorrectly recorded as Trading stock. 5 A credit note issued to a debtor, M. Mthembu for R280 was incorrectly posted to the account of a creditor, Mthembu Suppliers. 6 The owner gave a delivery vehicle worth R170 000 as capital contribution to the business. 7 The roof has been repaired at a cost of R5 300. The amount has been posted to the Land and buildings account in error. 8 The fixed deposit of R100 000 matured. Received a cheque of R120 000 from Angel Bank. The accountant posted the full amount to the Fixed Deposit account. P.T.O.

Downloaded from hlayiso.com ACCOUNTING 8 GRADE 10 4.2 GENERAL LEDGER The information provided below is taken from the books of Cele Traders for the month ending on 31 July 2017. REQUIRED 4.2.1 Use the information given to prepare the Ledger Accounts. Balance ONLY the Trading Stock Account at the end of the month.  Trading stock (17)  Sales (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. (2) INFORMATION Balance on 1 July 2017: R Trading stock on hand 20 600 Sales 44 400 Cash Receipts Journal Cost of Discount Debtors’ Current Bank Sales Sales Allowed Control Income 57 830 ? 7 000 270 3 380 40 720 Cash Payments Journal Trading Discount Creditors’ Debtors’ Bank Stock Received Control Control Stationery ? 17 900 620 6 510 140 1 620 Debtors’ Journal Sales Cost of Sales 8 800 4 400 Debtors’ Allowances Journal Debtors’ Allowances Cost of Sales 440 220 P.T.O.

Downloaded from hlayiso.com ACCOUNTING 9 GRADE 10 Creditors’ Journal Creditors’ Trading Stationery Packing Sundry Control Stock Material Accounts 18 400 5 990 1 500 2 300 8 610 Creditors’ Allowances Journal Creditors’ Trading Stock Stationery Packing Sundry Control Material Accounts 1 900 ? 175 - 1 155 Petty Cash Journal Debtors’ Sundry Petty Cash Trading Stock Control Stationery Accounts ? 280 30 150 - P.T.O.

Downloaded from hlayiso.com ACCOUNTING 10 GRADE 10 QUESTION 5: DEBTORS’ RECONCILIATION AND INTERNAL CONTROL (42 marks; 24 minutes) The following information was extracted from the accounting records of Disney Dealers for June 2017. At the end of the month, the Debtors’ Control account and Debtors’ List could not be reconciled. As the internal auditor of Disney Dealers you were asked to help with the reconciliation process. REQUIRED 5.1 Prepare the correct Debtors’ Control account. (18) 5.2 Prepare the correct Debtors’ List for June 2017. (16) 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. (4) 5.4 Name TWO ways in which you can encourage debtors to pay their accounts on time. (4) P.T.O.

Downloaded from hlayiso.com ACCOUNTING 11 GRADE 10 INFORMATION General Ledger of Disney Dealers DR Debtors’ Control B5 CR Jun 1 Balance b/d 13 460 Jun 30 Bank and CRJ 36 690 discount allowed 30 Sales DJ 51 560 Debtors DAJ 13 520 allowances Bank CPJ 7 500 Journal GJ 1 290 credits Journal GJ 0 Balance c/d 21 020 debits 72 520 72 520 Jul 1 Balance b/d 21 020 DEBTORS’ LIST ON 30 JUNE 2017 M. Minnie 3 810 P. Pluto 4 790 G. Goofy 8 340 D. Donald 2 690 19 630 The following errors and omissions were discovered: 1 P. Pluto’s account has to be written off as he cannot be traced. 2 A cheque received from M. Minnie for R1 500 was recorded correctly in the journal and General Ledger but was not posted to her personal account. 3 The total of the Sales column in the Debtors’ Journal was overstated by R2 210 while the total of the Debtors’ Allowances column in the Debtors’ Allowances Journal was understated by R280. 4 D. Donald returned goods to the value of R1 110 but the bookkeeper incorrectly treated this as a credit sale and posted it accordingly. 5 Goods were sold on credit to G. Goofy for R2 440. This was entered correctly in the journal and General Ledger but was posted to his account as R2 040. 6 A cheque for R600 which was received from D. Donald has been dishonoured. He had been allowed a discount of R30 on this payment. No entries were processed. TOTAL MARKS 200 END