Gr10 Acc P2 (English) November 2018 Possible Answers hlayiso.com

Downloaded from hlayiso.com GAUTENG DEPARTMENT OF EDUCATION PROVINCIAL EXAMINATION NOVEMBER 2018 GRADE 10 ACCOUNTING PAPER 2 MARKING GUIDELINES 11 pages 1

Downloaded from hlayiso.com ACCOUNTING MARKING GUIDELINES PAPER 2 GRADE 10 GAUTENG DEPARTMENT OF EDUCATION PROVINCIAL EXAMINATION ACCOUNTING PAPER 2 MARKING GUIDELINES QUESTION 1: CONCEPTS, VALUE ADDED TAX AND INVENTORY 1.1 VAT CONCEPTS 1.1.1 False  1.1.2 True  1.1.3 False  Accept abbreviations for True or False 1.1.4 False  1.1.5 True  5 1.2 VAT CALCULATIONS No. Exclusive VAT Inclusive Eg. R648 R97.20 R745.20 8 1.2.1 R5 600 R840 R6 440 1.2.2 R900 R135 R1 035 1.2.3 R420 R63 R483 1.2.4 R2 100 R315 R2 415 1.2.5 R640 R96 R736 2

Downloaded from hlayiso.com ACCOUNTING MARKING GUIDELINES PAPER 2 GRADE 10 1.3 INVENTORY GENERAL LEDGER OF NAIDOO TRADERS DR TRADING STOCK B4 CR 2018 1 Balance b/d 10 000 2018 30 Cost of sales CRJ 7 900 April April 30 Bank CPJ  3610 Cost of sales DJ 22 100 Petty cash PCJ 47 Creditors’ control CAJ 1 426 Creditors’ CJ 14 281 Balance c/d 2 888 control Cost of sales DAJ 600 28 538 28 538 May 1 Balance b/d  2 888 21 34 34 3

Downloaded from hlayiso.com ACCOUNTING MARKING GUIDELINES PAPER 2 GRADE 10 QUESTION 2: CREDITORS’ RECONCILIATION AND INTERNAL CONTROL 2.1.1 GENERAL LEDGER OF BAFANA TRADERS BALANCE SHEET ACCOUNTS SECTION DR CREDITORS’ CONTROL B6 CR Nov 30 Bank and CPJ 34 250 Nov 1 Balance b/d 4 380 discount received [32 400 + 1 850] Total returns CAJ 2 108 30 Total purchases CJ 44 800 [45 700 – 900] Journal debits GJ 3 290 Journal credits GJ 1 550 [2 650 + 640] [1 290 + 260] Balance c/d 11 082 50 730 50 730 Dec 1 Balance b/d 11 082 19 2.1.2 CREDITORS’ LIST OF BAFANA TRADERS ON 30 NOVEMBER 2018 NAME Credit PP Traders [3 890 – 900 – 640]  2 350 Townsend Stores [1 300 + 1 480] 2 780 Longwitz Traders [4 512 – 1 480] 3 032 Numero Motors [4 640 – 860 – 860] 2 920 Fanele Distributors [-260 + 260] 0 17 11 082 4

Downloaded from hlayiso.com ACCOUNTING MARKING GUIDELINES PAPER 2 GRADE 10 2.2.1 What could be the reason for the shortage in stock? Provide ONE reason. Any one valid reason   Stock bought in the name of the company but not delivered to the premises of the business.  Stock may have been stolen at the warehouse or at the store.  Poor record-keeping of damaged stock. 2 2.2.2 Which control procedures should be applied by the business to ensure that stock is safeguarded? Provide TWO points. Any two valid reasons   Proper authorization on purchases of stock  Stock delivered should be checked against the delivery note and the purchases ordered.  The entry into the warehouse or store room should be restricted to specific employees.  Regular physical stock counts  Segregation or division of duties (Record-keeping, receiving of goods, ordering of goods should be done by different people.) 4 42 42 5

Downloaded from hlayiso.com ACCOUNTING MARKING GUIDELINES PAPER 2 GRADE 10 QUESTION 3: MANUFACTURING 3.1 MANUFACTURING CONCEPTS 3.1.1 C  3.1.2 D  3.1.3 B  3.1.4 A  4 3.2 MANUFACTURING CALCULATIONS 3.2.1 Calculate the direct material cost. 3 16 000 + 5 500 +1 100 + 300 + 500 + 600 = 24 000* * Three figures correct 3.2.2 Calculate the direct labour cost. 2 250 x 40 = 10 000 3.2.3 Calculate the prime cost. 3 24 000  + 10 000  = 34 000  one part must be correct or correspond with 3.2.1 and 3.2.2 Check 3.2.1 and 3.2.2 6

Downloaded from hlayiso.com ACCOUNTING MARKING GUIDELINES PAPER 2 GRADE 10 3.2.4 Calculate the total production cost. 5 24 000  + 10 000  + 11 000 +1 800  = 46 800  one part must be correct Check 3.2.1 and 3.2.2 3.2.5 Calculate the unit cost of ONE table. 3 46 800  ÷ 40 = 1 140  one part must be correct Check 3.2.4 20 20 7

Downloaded from hlayiso.com ACCOUNTING MARKING GUIDELINES PAPER 2 GRADE 10 QUESTION 4: BUDGETS 4.1 BUDGET CONCEPTS 4.1.1 Budget  4.1.2 Capital Budget  4.1.3 Short –term budget  4.1.4 Tax  4 4.2 CALCULATIONS ON BUDGETS 4.2.1 Calculate the monthly salary received by Jane after deductions. 2 150 000 ÷ 12 = 12 500 4.2.2 Calculate the total income that will be received by Jane in December. 3 12 500  + 13 000 = 25 500  one part must be correct Check 4.2.1 4.2.3 Calculate Jane’s monthly expenses. 3 3 100+ 250+ 300+ 2 200 + 700+ 800 + 750 + 400 + 1 800 +1 200 = 11 500 * if 5 figures are correct 8

Downloaded from hlayiso.com ACCOUNTING MARKING GUIDELINES PAPER 2 GRADE 10 Calculate the amount of money that Jane needs to save on a monthly 4.2.4 basis. 3 12 500 - 11 500 * =1 000  One part correct * check 4.2.3 4.2.5 Will Jane have saved enough money, including her annual bonus, to pay for her holiday in January 2019? Support your answer with a calculation. 8 Indicate the deficit / shortfall or surplus. (1 000 X12 X 90% ) * + 13 000  = 23 800  10 800 * two parts correct Deficit or Shortfall R26 000  - 23 800 # =R2 200  One part correct # Check calculation above shortfall 4.2.6 Referring to her monthly expenses below, which TWO expenses could she cut back on in order to increase her monthly savings? 2 Any valid two ,  one mark for each  Cell phone  Clothing accounts  Entertainment 25 25 9

Downloaded from hlayiso.com ACCOUNTING MARKING GUIDELINES PAPER 2 GRADE 10 QUESTION 5 : FIXED ASSETS AND INTERNAL CONTROL 5.1.1 NOTE 3: FIXED / TANGIBLE ASSETS LAND AND VEHICLES EQUIPMENT BUILDINGS Carry value @ the beginning of 450 000 71 500 17 820 the year Cost 450 000 130 000 30 900 Accumulated depreciation - (58 500)  (13 080) MOVEMENTS Additions at cost 12 000 Depreciation - * (26 000) * (3 123) Carry value @ the end of the 450 000  45 500  26 697 21 year Cost 450 000 130 000 42 900 Accumulated depreciation - # (84 500) # (16 203) *See calculations below # Figure must be greater than depreciation at the beginning of year. CALCULATIONS: VEHICLES 130 000 x 20% x 12/12 = 26 000 EQUIPMENT 3 OLD: 30 900- 13 080 = 17 820 x 15% x 12/12 = 2 673 NEW: 12 000 x 15% x 3/12 = 450 OLD + NEW: (2 673 + 450 = 3 123) 10

Downloaded from hlayiso.com ACCOUNTING MARKING GUIDELINES PAPER 2 GRADE 10 5.1.2 According to which GAAP principle should all assets bought be recorded at the original cost price? 1  Historical cost concept 5.2 INTERNAL CONTROL As an internal auditor of Bekezela Traders what advice would you give to the owner of business? Provide TWO points. 4 Any two valid points    Install tracking device or cameras in the trucks.  Get quotations from different insurance companies.  Proper screening of employees is essential / Background check on potential employees. One mark for partly answered questions 29 29 TOTAL 150 150 11