Accounting Grade 10 P1 Gauteng June 2022 QP (Eng)

Downloaded from hlayiso.com PROVINCIAL EXAMINATION JUNE 2022 GRADE 10 ACCOUNTING TIME: 2½ hours MARKS: 200 11 pages + a formula sheet and an answer book of 11 pages Time in Question Details Marks minutes 1 Concepts and Transaction Analysis 40 30 minutes 2 Salaries and Wages 50 38 minutes 3 General Journal 23 17 minutes Creditors’ Reconciliation and Internal 4 43 32 minutes Control 5 General Ledger and Internal Control 44 33 minutes Total 200 150 minutes P.T.O.

Downloaded from hlayiso.com ACCOUNTING 2 GRADE 10 INSTRUCTIONS AND INFORMATION 1. Answer ALL the questions. 2. Answer all 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. A FORMULA SHEET for financial indicators is provided at the back of this question paper. You may use this if necessary. 7. Write neatly and legibly. 8. Use the information in the table below when answering questions. 9. Try NOT to deviate from the time allocated per question. QUESTION 1: 40 marks ; 30 minutes Topic This question integrates: Concepts and Concepts Transaction Analysis Transaction Analysis of a Sole Trader QUESTION 2: 50 marks ; 38 minutes Topic This question integrates: Concepts on Salaries and Wages Salaries and Wages Salaries Journal QUESTION 3: 23 marks ; 17 minutes Topic This question integrates: General Journal Bookkeeping entries QUESTION 4: 43 marks ; 32 minutes Topic This question integrates: Creditors’ Reconciliation Reconciliation of creditors and Internal Control Internal Control QUESTION 5: 44 marks ; 33 minutes Topic This question integrates: General Ledger and General Ledger Internal Control Internal Control P.T.O.

Downloaded from hlayiso.com ACCOUNTING 3 GRADE 10 QUESTION 1: CONCEPTS AND TRANSACTION ANALYSIS (40 marks ; 30 minutes) 1.1 CONCEPTS Choose the correct word(s) from COLUMN B to match the description in COLUMN A. Write only the letter (A – E) next to the question numbers (1.1.1 – 1.1.5) in the ANSWER BOOK, e.g. 1.1.6 F. (5) COLUMN A COLUMN B 1.1.1 An example of a non-current asset. A Fairness 1.1.2 The management of a business should treat employees B Trial Balance equally regardless of their positions. 1.1.3 A summary of balances and totals extracted from all the C GAAP ledger accounts of a business. 1.1.4 Assets that are convertible into cash within a period of 12 D Fixed Deposit months. 1.1.5 Commonly accepted guidelines that are followed when E Current Assets financial records are prepared for reporting. 1.2 ANALYSIS OF TRANSACTIONS The following transactions for March 2022 appeared in the books of Naledi Traders. The business buys and sells electrical appliances to customers. Naledi Traders uses a mark-up of 80% on cost price. REQUIRED: Analyse the following transactions according to the headings provided in the ANSWER BOOK. (35) NOTE: The business has a favourable bank balance at all times. Example: Paid R. Motloung R500 cash for washing the windows of the building. P.T.O.

Downloaded from hlayiso.com ACCOUNTING 4 GRADE 10 TRANSACTIONS: 1.2.1 Bought goods on credit from Ralefe Stores for R10 800 less 10% trade discount. 1.2.2 Paid R450 out of the petty cash to RSA Distributors for goods delivered to a debtor, S. Small. The amount must be debited to his account. 1.2.3 Sold goods on credit to K. Samuels for R4 500 and issued an invoice. 1.2.4 A printer bought on credit for office use for R2 400 from Rossouw Traders in February 2022 had a defect (was faulty). After consultation with Rossouw Traders, the printer was returned to them. No transaction was recorded. 1.2.5 Received R3 400 from K. Abrahams (a debtor) in settlement of her account of R3 500. 1.2.6 A loan repayment of R44 000 to Perm Bank included an interest of 10% per annum for one year. Funds were paid via EFT. Total Marks 40 P.T.O.

Downloaded from hlayiso.com ACCOUNTING 5 GRADE 10 QUESTION 2: WAGES AND SALARIES (50 marks ; 38 minutes) 2.1 WAGES – HILLTOP PACKAGING Hilltop Packaging employs only one employee, Jonas Shibangu, who is paid weekly. The information is extracted from the week ending 22 April 2022. REQUIRED: Use the information provided below to answer the following questions. 2.1.1 List TWO differences between salaries and wages. (4) 2.1.2 To which organisation is PAYE paid? Write your answer in full. (1) 2.1.3 What is the difference between deductions and contributions? (4) 2.1.4 Calculate the total number of overtime hours worked by Jonas for the week. (6) 2.1.5 Name the statutory or legal deduction that has NOT been made from Jonas’s wages. Do not abbreviate your answer. (1) 2.1.6 Refer to QUESTION 2.1.5. How much should have been deducted from Jonas’s wages? (2) 2.1.7 Refer to QUESTIONS 2.1.5 and 2.1.6. How much is owed to the Department of Labour at the end of the month? (Assume there were four weeks in the month.) (2) INFORMATION A. Jonas’s normal time rate is R13,50 per hour and if required to work overtime he earns R20,25 per hour. B. The following is an extract from his wages earned for the week 18 to 22 April 2022. Wages Normal time 32 hours Overtime ? Total wage (normal time and overtime) R675,00 Deductions Medical aid R125,00 Pension Fund (7,5% of basic wages) ? P.T.O.

Downloaded from hlayiso.com ACCOUNTING 6 GRADE 10 2.2 SALARIES JOURNAL RAPID REALTORS Rapid Realtors sells houses. They employ two sales representatives, J. Smith and H. Sonum, who earn the same basic salary and a commission of 0,5% for every house sold. Commission is only earned once all the documents for the sale have been signed by both the buyer and the seller. REQUIRED: 2.2.1 Complete the Salaries Journal for the month of March 2022 in the ANSWER BOOK provided. (30) INFORMATION A. On 01 March, J. Smith sold a house for R500 000. All sale and transfer documents were signed on 27 March. B. H. Sonum sold a house on 25 March for R800 000. The documents were signed on 05 April 2022. C. Both employees belong to a medical aid fund. The total premium paid for each member towards the medical aid fund is R2 700 per month. Rapid Realtors agreed to contribute double what the employees pay. D. Pension fund contribution is 15% per month on their basic salary. The employees pay 7,5% while the employer contributes the rest. E. UIF deductions and contributions are as per statutory requirements. Total Marks 50 P.T.O.

Downloaded from hlayiso.com ACCOUNTING 7 GRADE 10 QUESTION 3: GENERAL JOURNAL (23 marks ; 17 minutes) 3.1 The information for December 2021 presented below is taken from the books of Jevon Stores. The business is owned by J. Mahlangu. REQUIRED: Record the transactions in the General Journal for December 2021, and close off the journal properly. (23) Refer to the INFORMATION below: NOTE: Narrations are not required. INFORMATION A. Provisional totals General Journal Debtors’ Control Creditors’ Control Debit Credit Debit Credit 825 116 268 384 B. Transactions on 31 December 2021 (i) A debtor, G. Molefe, who owes R2 400, was declared insolvent. His estate paid 40c in the rand. (This has been recorded in the books of the business.) The remainder must be written off as irrecoverable. (ii) Transfer a debit balance of R280 in the account of M. Naude from the Debtors’ Ledger to his account in the Creditors’ Ledger. M. Naude is both a customer and supplier to Jevon Stores. (iii) The owner, J. Mahlangu took trading stock at a cost price of R1 200. The transaction was not recorded yet. (iv) The business received an amount for R35 000 from RSA Bank via EFT for a fixed deposit that matured on 31 December 2021. Included in the amount is interest on fixed deposit of R3 000. The total amount of R35 000 has been credited to the Fixed Deposit Account. Correct the error. (v) Goods returned by G. Chetty (a debtor) as per credit note for R280, was incorrectly posted to the account of G. Levy (a debtor). (vi) Charged interest of 6% per annum for three months to the overdue account of M. Smith, he owes the business R6 800. Total Marks 23 P.T.O.

Downloaded from hlayiso.com ACCOUNTING 8 GRADE 10 QUESTION 4: CREDITORS’ RECONCILIATION AND INTERNAL CONTROL (43 marks ; 32 minutes) 4.1 BLUE WATER TRADERS The bookkeeper of Blue Water Traders made errors when posting to the Creditors’ Control Account on 31 March 2022. The balance in the Control Account did not correspond with the Creditors’ List extracted from the Creditors’ Ledger. REQUIRED: Take into account the errors and omissions provided in INFORMATION C and prepare the following: 4.1.1 Correct the Creditors’ Control Account for March 2022 in the General Ledger. Balance the account correctly. (17) 4.1.2 Correct the list of creditors as at 31 March 2022. (18) INFORMATION A GENERAL LEDGER OF BLUE WATER TRADERS BALANCE SHEET ACCOUNTS SECTION DR CREDITORS’ CONTROL B6 CR Mar 31 Bank and CPJ 34 250 Mar 01 Balance b/d 4 380 Discount received Journal debits GJ 3 290 31 Creditors’ CAJ 2 108 Allowances Balance c/d 15 038 Total CJ 44 800 purchases Journal credits GJ 1 290 52 578 52 578 Apr 01 Balance b/d 15 038 INFORMATION B LIST OF CREDITORS AS AT 31 MARCH 2022 Name Debit Credit PE Traders 3 890 Together Stores 1 300 Lindiwe Traders 4 512 Number One Motors 3 100 Frans Distributors 260 260 12 802 P.T.O.

Downloaded from hlayiso.com ACCOUNTING 9 GRADE 10 INFORMATION C ERRORS AND OMMISSIONS (i) Invoice 154 received from Together Stores for R1 480 was posted to the account of Lindiwe Traders in the Subsidiary Ledger. (ii) The business decided to transfer the balance of Frans Distributors to the Debtors’ Ledger. No entry was made. (iii) Invoice 278 received from PE Traders for merchandise purchased on credit for R2 300 was incorrectly recorded in the Creditors’ Journal as R3 200. (iv) The business returned some parts bought for the delivery van to the value of R860 to Number One Motors. The amount was correctly recorded in the Creditors’ Allowances Journal but it was posted to the Creditors’ Ledger as credit purchases. (v) PE Traders supplies goods to Blue Water Traders and also buys from Blue Water Traders. The debit balance of R640 on their account in the Debtors’ Ledger is to be transferred to their account in the Creditors’ Ledger. 4.2 INTERNAL CONTROL Blue Water Traders buys goods in large quantities from Lindiwe Traders. The stock received from Lindiwe Traders normally include damaged goods or goods that were not ordered. Goods purchased from Lindiwe Traders are also delivered late and Blue Water Traders has lost customers as a result of this. Blue Water Traders have decided to change the supplier because they do not receive any discount from Lindiwe Traders. 4.2.1 Provide TWO internal control measures that can be implemented by Lindiwe Traders to manage stock effectively. (4) 4.2.2 Suggest the actions that should be taken by Lindiwe Traders to retain (keep) his customers. Provide TWO points. (4) Total Marks 43 P.T.O.

Downloaded from hlayiso.com ACCOUNTING 10 GRADE 10 QUESTION 5: CONCEPTS, GENERAL LEDGER AND INTERNAL CONTROL (44 marks ; 33 minutes) 5.1 CONCEPTS Indicate if the following statements are TRUE or FALSE. Write only ‘True’ or ‘False’ next to the numbers (5.1.1 – 5.1.4) in the ANSWER BOOK. (1 x 4) (4) 5.1.1 According to historical cost principle, goods purchased must be recorded at cost price. 5.1.2 When a debtor has a credit limit of R10 000, it means that R10 000 is the maximum amount he can spend on goods and services on credit. 5.1.3 The prudence principle applies when the business provides for known expenses or losses to avoid the overstating of profit. 5.1.4 To evaluate the debtor’s credit worthiness before goods are sold on credit is a good internal control measure that a business applies. 5.2 GENERAL LEDGER AND INTERNAL CONTROL Solly Wholesalers The bookkeeper of Solly Wholesalers was suddenly hospitalised and could not complete some of the General Ledger accounts for May 2022. He was able to post the General Journal to the General Ledger Accounts. The business uses a mark-up percentage of 100% on cost price. REQUIRED: 5.2.1 Complete and balance the following accounts in the General Ledger for May 2022: • Debtors’ Control Account (10) • Trading Stock Account (16) • Stationery (8) 5.2.2 The owner of Solly Wholesalers noticed that some debtors do not comply with the credit terms as part of their contractual agreement with the business. (a) Explain the meaning of the concept credit term. (2) (b) Provide TWO measures that can be implemented by the business to encourage early payments. (4) P.T.O.

Downloaded from hlayiso.com INFORMATION Totals in the Subsidiary Journals for May 2022: Cash Receipts Journal Cost of Discount Debtors’ Current Bank Sales Sales Allowed Control Income 88 400 44 000 22 000 270 4 280 ? Cash Payments Journal Trading Discount Creditors’ Wages Stationery Bank Stock Received Control 65 350 27 900 620 36 510 ? 1 620 Debtors’ Journal Sales Cost of Sales 12 800 6 400 Debtors’ Allowances Journal Debtors’ Allowances Cost of Sales 1 200 600 Creditors’ Journal Packing Sundry Creditors’ Control Trading Stock Stationery Material Accounts 58 400 25 990 1 500 2 300 ? Creditors’ Allowances Journal Creditors’ Packing Sundry Trading Stock Stationery Control Material Accounts 6 900 4 800 175 ? 1 155 Petty Cash Journal Debtors’ Sundry Petty Cash Trading Stock Stationery Control Accounts 960 380 280 150 ? Total Marks 44 TOTAL: 200 END

Downloaded from hlayiso.com GRADE 10 ACCOUNTING FINANCIAL INDICATOR FORMULA SHEET Gross profit 100 Gross profit 100 Net profit 100 X X X Sales 1 Cost of Sales 1 Sales 1 Operating expenses 100 Operating profit 100 X X Sales 1 Sales 1 Current assets : Current liabilities (Current assets – Inventories) : Current liabilities (Trade and other receivables + Cash and cash equivalents) : Current liabilities Net profit 100 X Total assets : Total liabilities Owners' equity 1