Accounting Grade 11 Gauteng June 2016 Addendum

Downloaded from hlayiso.com GAUTENG DEPARTMENT OF EDUCATION PROVINCIAL EXAMINATION JUNE 2016 GRADE 11 ACCOUNTING ANSWER BOOK NAME OF LEARNER: ___________________________________________ GRADE: _________ QUESTION TOPIC MARKS LEARNER’S MARKS 1 Bank Reconciliation 60 2 Creditors’ Reconciliation 25 3 Asset Disposal 50 4 Partnerships 40 5 Financial statements 75 Analysis and Interpretation of 6 50 Financial Statements TOTAL 300 MARKS: 300 TIME: 180 minutes 18 pages P.T.O.

Downloaded from hlayiso.com ACCOUNTING GRADE 11 2 GAUTENG DEPARTMENT OF EDUCATION PROVINCIAL EXAMINATION ACCOUNTING TIME: 180 minutes MARKS: 300 QUESTION 1 1.1 What is the purpose of Bank reconciliation? 2 1.2 Indicate whether the statements are TRUE or FALSE. 1.2.1 1.2.2 1.2.3 1.2.4 4 P.T.O.

Downloaded from hlayiso.com ACCOUNTING GRADE 11 3 1.3.1 Cash Receipts Journal of Sabe Traders – March 2016 Sundry accounts Doc. Day Details Bank Amount Fol Details 31 Totals 31 400 13 000 18 P.T.O.

Downloaded from hlayiso.com ACCOUNTING GRADE 11 4 Cash Payments Journal of Sabe Traders – March 2016 Debtors’ Sundry accounts Doc. Day Name of payee Bank Control Amount Fol Details 31 Totals 54 800 240 10 960 18 1.3.2 General ledger of Sabe Traders Dr. Bank B8 Cr. 8 P.T.O.

Downloaded from hlayiso.com ACCOUNTING GRADE 11 5 1.3.3 Bank Reconciliation statement on 31 March 2016 Debit Credit 10 60 P.T.O.

Downloaded from hlayiso.com ACCOUNTING GRADE 11 6 QUESTION 2 2.1 Why must the balance of the Creditors’ Control Account in the General Ledger be the same as the total of the Creditors’ List in the Creditors’ Ledger?  2 2 2.2 Calculate the correct balance of the Creditors’ Control Account in the General Ledger. Balance R153 800 A B C D E F G 12 Final balance P.T.O.

Downloaded from hlayiso.com ACCOUNTING GRADE 11 7 2.3 Prepare the correct Creditors’ List of balances on 30 June 2016. Stand Traders (29 200 Walk Wholesalers (95 600 ) Run Stores (44 100  (One part correct) 11 25 P.T.O.

Downloaded from hlayiso.com ACCOUNTING GRADE 11 8 QUESTION 3 No. Calculations Answer 3.1.1 Calculate the Depreciation on Equipment sold on 31 August 2016. ( 3.1.2 Calculate the TOTAL Depreciation on Equipment on 29 February 2016. 8 3.2.1 GENERAL LEDGER OF BONANZA TRADERS BALANCE SHEET ACCOUNTS SECTION Dr EQUIPMENT B Cr 2015 Mar 1 Balance c/d 510 000 5 P.T.O.

Downloaded from hlayiso.com ACCOUNTING GRADE 11 9 3.2.2 ACCUMULATED DEPRECIATION ON EQUIPMENT B 2015 2015 8 3.2.3 NOMINAL ACCOUNTS SECTION ASSET DISPOSAL N 2016 Aug 31 Equipment GJ 80 000 8 P.T.O.

Downloaded from hlayiso.com ACCOUNTING GRADE 11 10 3.3 NOTE TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 29 FEBRUARY 2016 FIXED ASSETS Land & Vehicles Equipment buildings Carrying value at beginning 450 000 240 000 Cost 450 000 800 000 510 000 Accumulated depreciation (260 000) Movements Additions at cost Disposals at carrying value Depreciation Carrying value at end 500 000 Cost 500 000 1 000 000 Accumulated depreciation 0 (388 000) 15 3.4 THREE control measures 6 50 P.T.O.

Downloaded from hlayiso.com ACCOUNTING GRADE 11 11 QUESTION 4 4.1 NO. 4.1.1 4.1.2 4.1.3 4.1.4 4.1.5 5 4.2 Calculation of interest on capital Answer Gifford: 4 Ndlovu: 4 4.2.1 CAPITAL Gifford Ndlovu Total Balance at the beginning of the year Contribution of capital during the year Withdrawal of capital during the year Balance at the end of the year 6 P.T.O.

Downloaded from hlayiso.com ACCOUNTING GRADE 11 12 4.2.2 CURRENT ACCOUNTS Gifford Ndlovu Total Partners’ salaries Partner’s bonus 0 Interest on capital 71 100 Primary distribution of 575 100 profits Final distribution of profits 147 390 Profit as per Income Statement Drawings during the year Retained income for the year Balance at beginning of year Balance at end of year 21 40 P.T.O.

Downloaded from hlayiso.com ACCOUNTING GRADE 11 13 QUESTION 5 NAME OF BUSINESS: FLASHGORDON TRADERS 5.1 INCOME STATEMENT FOR YEAR ENDED 29 February 2016 Sales Cost of sales Gross profit Other operating income Bad debts recovered (700 Discount Received (1 600 Rent Income (79 650 Commission income ? Gross operating income Operating expenses Water and electricity (8 900 Insurance (8 800 Bad debts (4 300 Donations (2400 Discount Allowed Stationery (17 300 Bank charges (8 410 + Telephone (10 900 Salaries & wages (288 090 ? ? Operating profit Interest income Profit before interest expense Interest expense Net profit for the year 50 P.T.O.

Downloaded from hlayiso.com ACCOUNTING GRADE 11 14 5.2.1 TRADE AND OTHER RECEIVABLES 8 5.2.2 TRADE AND OTHER PAYABLES 17 75 P.T.O.

Downloaded from hlayiso.com ACCOUNTING GRADE 11 15 QUESTION 6 6.1 Complete each of the following statements by supplying the missing word/s. Note: Do not re-write the sentences. Write down only the answer. 6.1.1 6.1.2 6.1.3 6.1.4 6.1.5 10 6.2 Should the partners be satisfied with the stock turnover rate? Explain by quoting the financial indicators for both years to support your answer. Opinion: Comment: 3 6.3 Comment on the Debtors’ collection period and the Creditors’ Payment period. 3 P.T.O.

Downloaded from hlayiso.com ACCOUNTING GRADE 11 16 6.4 In your opinion has the business been able to control its operating expenses well in 2016? Quote figures from both years to support your answer. Opinion: Comment: 4 6.5 Supply reasons for the difference between the percentage operating expenses on sales and the percentage net profit on sales. 2 6.6 Calculate the percentage return earned by the business on average equity for 2016. 5 6.7 The percentage return earned by Flynn on his average equity is 20,53%. Provide a calculation to prove that this calculation is correct. 5 P.T.O.

Downloaded from hlayiso.com ACCOUNTING GRADE 11 17 6.8 Comment on the percentage return earned by Flynn. Quote a financial indicator for both years to support your answer. 4 6.9 Comment on the debt/equity ratio. Quote a financial indicator for both years to support your answer. 3 6.10 What percentage of the net income did the partners withdraw from the business in 2016? 3 P.T.O.

Downloaded from hlayiso.com ACCOUNTING GRADE 11 18 6.11 Comment on the profitability of the business. Quote THREE financial indicators and figures to support your answer. 8 40 50 TOTAL: 300 END