Accounting Grade 10 Gauteng June 2019 Question Paper (Eng)

Downloaded from hlayiso.com GAUTENG DEPARTMENT OF EDUCATION PROVINCIAL EXAMINATION JUNE 2019 GRADE 10 ACCOUNTING TIME QUESTION TOPIC MARKS ALLOCATED 1 Concepts and Cash Journals 45 27 min 2 General Journal 22 13 min 3 General Ledger and Internal Control 22 13 min 4 Debtors Reconciliation and Internal 46 28 min control 5 Analysis of transactions 44 26 min 6 Concepts, Salaries and Wages 21 13 min Journals and Ethics 200 120 min TIME: 2 hours MARKS: 200 12 pages P.T.O.

Downloaded from hlayiso.com ACCOUNTING 2 GRADE 10 GAUTENG DEPARTMENT OF EDUCATION PROVINCIAL EXAMINATION ACCOUNTING TIME: 2 hours MARKS: 200 INSTRUCTIONS 1. Answer all questions in the ANSWER BOOK provided 2. Show ALL calculations to earn part marks. 3. Non-programmable calculators may be used. 4. You may use blue or black ink to answer the questions. 5. Try not to deviate from the time allocated per question. 6. Write neatly and legibly. QUESTION 1: 45 marks; 27 minutes Topic This question integrates: Concepts and Cash Journals Concepts and Bookkeeping entries of a sole trader QUESTION 2: 22 marks; 13 minutes Topic This question integrates: General Journal Bookkeeping entries QUESTION 3: 22 marks; 13 minutes Topic This question integrates: General Ledger and Internal Bookkeeping –General Ledger Control Internal control QUESTION 4: 46 marks; 28 minutes Topic This question integrates: Reconciliation and Internal Reconciliation of debtors and Internal control control QUESTION 5: 44 marks; 26 minutes Topic This question integrates: Analysis of transactions Analysis of transactions of a sole trader QUESTION 6: 21 marks; 13 minutes Topic This question integrates: Concepts, Salaries and Concepts on salaries and wages Wages Journals and Ethics Salaries and wages journals Ethics P.T.O.

Downloaded from hlayiso.com ACCOUNTING 3 GRADE 10 QUESTION 1: CONCEPTS AND CASH JOURNALS (45 marks; 27 minutes) 1.1 CONCEPTS Match the information in COLUMN A to the term in COLUMN B. Write only the letter (A – G) in your ANSWER BOOK. COLUMN A COLUMN B 1.1.1 Serves as a source of information when preparing A Drawings financial records 1.1.2 Where transactions are recorded before they are B Petty Cash Journal posted to the General Ledger 1.1.3 A deduction offered to promote bulk purchases C General Journal 1.1.4 Money withdrawn by the owner from the business D Subsidiary Journals for personal use 1.1.5 A record of items that are bought for a small amount E Trade discount of money F Cash discount G Source document 5 1.2 CASH JOURNALS The following transactions of Waterkloof Traders took place during September 2018, the business uses a mark-up of 100% on cost price. REQUIRED 1.2.1 Refer to the transactions below and record them in the Cash Journals for September 2018. (40) NOTE:  Do not total the journals at the end of the month.  Do not enter any information in the cells that are coloured in grey. P.T.O.

Downloaded from hlayiso.com ACCOUNTING 4 GRADE 10 Transactions for September 2018 01 The owner L. Lally, increased her capital contribution from R200 000 to R280 000 by depositing the amount directly into the business’ current account. Received a cheque from K. Siwedi in settlement of his account of R160, less 5% discount, issued receipt no.92. 03 Received a cheque for R16 600 from Knysna Bank Ltd for the fixed deposit of R16 000 which matured, plus interest. 04 Paid R2 380 by cheque no. 115 to Gugu Wholesalers in full settlement of debt of R2 500. Cash sales for the day, R3 900. 05 B. Brown’s cheque for R110 received last month in payment of his account, was returned by the bank unpaid due to insufficient funds. 06 Received an amount of R650 from I. Patel as part-payment towards his account, the payment was done electronically. 10 Purchased goods from Dada Dealers for R4 140, paid by cheque. Paid Go-Go Transporters R300 for the delivery of the goods (mentioned above), by cheque. 20 Drew a cheque for R870 in favour of the municipality to pay the water and electricity account of the business. 22 Issued a cheque to Natal Bank in part-payment of a loan, R7 000, plus interest on loan for R350. 27 Cashed a cheque for R2 500 to pay wages R1 980 and used the rest to increase the cash float. 28 Cash sales of merchandise for the day, R1 520 including credit card sales of R520. 30 The bank statement received from Knysna Bank Ltd showed that our bank account was debited with the following amounts:  Interest, R360  Cheque book and deposit book fees, R190  Service fees, R210  Tax levy, R164 40 Total Marks 45 P.T.O.

Downloaded from hlayiso.com ACCOUNTING 5 GRADE 10 QUESTION 2: GENERAL JOURNAL (22 marks; 13 minutes) 2.1 The information for December 2018 presented below is taken from the books of Devaan Stores, the business is owned by H. Devaan. REQUIRED: Record the transactions in the General Journal for December 2018, and close off the journal properly. (22) Refer to INFORMATION below: NOTE: Narrations are not required. INFORMATION A Provisional totals General Journal Debtors Control Debtors Control Debit Debit Debit Debit 624 316 702 454 B Transactions on 31 December 2018 1 A debtor, A. Pondor, who owes R1 200, was declared insolvent. His estate paid 30c in the rand.(This has been recorded in the books of the business.) The remainder must be written off as irrecoverable. 2 The bank statement reflected a dishonoured cheque of R570 received from J. Klop in settlement of his account of R600. This has been recorded. The discount must still be cancelled. 3 The owner, C. Devaan was unhappy with the stock he took home and returned the stock to the business, R170. No entry was recorded. 4 Merchandise costing R640 was purchased and paid for by cheque and correctly recorded in the CPJ. However, when posting the CPJ, it was incorrectly recorded as Consumable stores. 5 Goods returned by M. Mawema (a debtor) as per credit note for R210 were incorrectly posted to the account of M. Mokwena (a debtor). 6 An amount of R550 received from B. Smith (debtor) in settlement of her account, was incorrectly posted to the account of T. Smith, a creditor. Total Marks 22 P.T.O.

Downloaded from hlayiso.com ACCOUNTING 6 GRADE 10 QUESTION 3: GENERAL LEDGER AND INTERNAL CONTROL (22 marks; 13 minutes) RHINEHART SUPPLIERS The following information was extracted from the books of Rhinehart Suppliers for the year ending 28 February 2019. The business uses a mark-up of 60% on cost. REQUIRED 3.1 Refer to the General Ledger accounts below to complete the missing information A to N in your ANSWER BOOK. Show calculations where necessary to earn part marks. (15) 3.2 Use the ledger accounts below to answer the following questions: 3.2.1 The owner took goods for personal use. What was the selling price of the goods taken? Refer to Trading Stock Account. (2) 3.2.2 What would be the source document for amount L, recorded in DAJ? (1) 3.3 Ernst Rhinehart, the owner suspects that stock has been stolen during the year. He has asked you for advice on internal controls he could implement to prevent stock from being stolen. List TWO internal controls to safeguard stock. (4) P.T.O.

Downloaded from hlayiso.com ACCOUNTING 7 GRADE 10 INFORMATION GENERAL LEDGER OF RHINEHART SUPPLIERS NOMINAL ACCOUNTS SECTION Dr SALES Cr Feb 01 Total b/d 150 000 00 28 A DJ 80 000 00 Bank B 92 000 00 Dr COST OF SALES Cr Feb 01 Total b/d 93 750 00 Feb 28 Trading stock DAJ 6 000 00 28 C DJ 50 000 00 Trading CRJ D stock BALANCE SHEET ACCOUNTS SECTION Dr TRADING STOCK Cr Feb 01 Balance b/d 110 000 00 Feb 28 E DJ F 28 Bank G 120 000 00 Cost of sales CRJ 57 500 00 H CJ 30 000 00 I CAJ 7 000 00 Petty cash J 1 000 00 Drawings GJ 5 000 00 K DAJ L Donations M 2 000 00 Balance c/d N 267 000 00 267 000 00 Mar 1 Balance b/d N Total Marks 22 P.T.O.

Downloaded from hlayiso.com ACCOUNTING 8 GRADE 10 QUESTION 4: DEBTORS’ RECONCILIATION AND INTERNAL CONTROL (46 marks; 28 minutes) SCHUMANN WHOLESALERS The information below was taken from the books of Schumann Wholesalers. REQUIRED 4.1 Prepare a correct Debtors’ Control account for 31 March 2019 after adjusting for all errors and omissions and balancing the account. (14) 4.2 Prepare a correct list of debtors as at 31 March 2019. (16) 4.3 Provide ONE reason why the Debtors’ Control account and the Debtors’ List should always agree. (2) 4.4 The owner Paul Schumann is worried that debtors are not paying on time. List THREE measures that he can put in place to ensure debtors pay on time. (6) 4.5 Refer to the Debtors’ Control account and answer the following: 4.5.1 If the discount allowed was R35 720, how much was received from debtors for the month of March? (2) 4.5.2 Apart from interest charged, what else could appear as a journal debit? Provide ONE item or answer. (2) 4.5.3 Provide TWO possible reasons for the debit of R300 in the Debtors’ control account. (4) INFORMATION GENERAL LEDGER OF SCHUMANN WHOLESALER BALANCE SHEET ACCOUNTS SECTION Dr DEBTORS’ CONTROL Cr Mar 1 Balance b/d 89 560 00 Mar 31 Bank and CRJ 266 040 00 discount allowed 31 Sales DJ 270 000 00 Debtors’ DAJ 1 200 00 allowances Bank CPJ 300 00 Journal GJ 1 950 00 credits Journal GJ 720 00 Balance c/d 91 390 00 debits 360 580 00 360 580 00 Apr 1 Balance b/d 91 390 00 P.T.O.

Downloaded from hlayiso.com ACCOUNTING 9 GRADE 10 List of debtors as at 31 March 2019 NAME Debit Cooper 17 900 00 Baloyi 16 380 00 Hope 14 400 00 Smith 21 900 00 Williams 18 200 00 88 780 00 Errors and omissions discovered during the month: A The Debtors’ Control opening balance was overcast by R6 000. B The total column of the Debtors’ Allowances Journal was undercast by R210. C A credit sales invoice for R2 900 issued to Baloyi was correctly entered in the Debtors Journal, but was incorrectly posted to the account of Smith. D A credit note of R520 for Cooper was not recorded at all. E A cheque of R5 600 received from Hope in full settlement of his account of R6 000 was recorded correctly in the subsidiary journal. However, the bookkeeper forgot to record the discount in the account of Hope. F A credit note of R1 600 was correctly entered to the Debtors’ Allowances Journal, but was incorrectly recorded as an invoice in the account of Williams. G Charged Baloyi R300 interest on his overdue account of R8 000. No entry has been made. Total Marks 46 P.T.O.

Downloaded from hlayiso.com ACCOUNTING 10 GRADE 10 QUESTION 5: ANALYSIS OF TRANSACTIONS (44 marks; 26 minutes) REQUIRED 5.1 Use the information of BB Fashion Boutique to show the effect of each transaction on the Accounting Equation for August 2018. (38) Assume that the Bank balance is favourable for all the transactions. 5.2 Answer the following questions: 5.2.1 Explain the meaning of R/D. (Refer to transaction on the 19th) (2) 5.2.2 Provide TWO reasons why a bank may dishonour a cheque. (4) Transactions Example: Donate stationery to the amount of R540 to the local crèche. 01 Stanford Suppliers charged our overdue account of R3 600 an interest of 6% for two months. 07 A. Habib was declared insolvent, BB Fashion Boutique received R1 400 which represents a first and final dividend of 35 cents in the rand. The balance must be written off as irrecoverable. 16 The bank statement received from Rand Bank reflected an interest received of R130. 19 The bank statement revealed an R/D cheque for R1 260, this cheque was received from M. Gumpu in settlement of his account of R1 300. 25 Cashed a cheque for R480 to restore the petty cash imprest amount of R600. 31 Bought goods on credit from Wacko Retailers for R1 700, less 10% trade discount. Total Marks 44 P.T.O.

Downloaded from hlayiso.com ACCOUNTING 11 GRADE 10 QUESTION 6: CONCEPTS, SALARIES AND WAGES AND ETHICS (21 marks; 11 minutes) 6.1 CONCEPTS Indicate whether the following statements are TRUE or FALSE. 6.1.1 The acronym SDL stands for Skills Development Levy. 6.1.2 SDL is paid by employers whose payroll exceeds R300 000. 6.1.3 UIF is normally 1% of the net salaries. 6.1.4 Net salaries are also known as creditors for salaries. 6.1.5 PAYE must be paid over to the Treasury. 6.2 SALARIES AND WAGES You are provided with information extracted (taken) from the Wages Journal and Salaries Journal of Ndebele Dealers for May 2018.They have employees that are paid weekly and monthly. REQUIRED 6.2 Calculate the missing amounts in the Wages and Salaries Journal for May 2018. (10) 6.3 Answer the following questions: 6.3.1 Provide the double entry for the Pension Contributions in the Wages Journal. (2) 6.3.2 The net salary calculated in 6.2.5 of the Salaries Journal would be posted to Salaries Account in the ledger and which other account? (1) 6.4 The owner Mr Thomas Ndebele decided that he would not pay the money over for PAYE this month as he needed the cash, he will make a double payment the next month. Why are you against the decision he took? Provide consequences (results) of this action in ONE point. (3) P.T.O.

Downloaded from hlayiso.com ACCOUNTING 12 GRADE 10 INFORMATION A WAGES JOURNALS OF NDEBELE DEALERS FOR MAY 2018 DEDUCTIONS EMPLOYERS’ CONTRIBUTIONS Week Gross Net Pension Medical Pension Medical ended Wage UIF PAYE Total Wage UIF SDL Fund Aid Fund Fund Aid Fund 21 May R2 874 R160 R240 R28.74 R809 6.2.1 6.2.2 R320 R240 6.2.3 R28.74 2017 28 May R3 078 R164 R240 R30.78 R882 R320 R240 R30.78 2017 INFORMATION B SALARIES JOURNAL OF NDEBELE DEALERS FOR THE MONTH ENDED 31 MAY 2018 DEDUCTIONS CONTRIBUTIONS Gross Medical Netto Medical Pension Pension Salary Aid PAYE UIF Total Salary Aid UIF SDL Fund Fund Fund Fund R21 110 R1 480 R1 450 6.2.4 R2 111 R13 261 6.2.5 R2 960 R2 175 R2 111 6.2.6 INFORMATION C  The employer contributes on a rand for rand basis towards UIF.  The employer contributes 1% of gross salaries towards the SDL. Total marks 21 END