Accounting Grade 11 P1 Gauteng November 2020 Addendum (Eng)

Downloaded from hlayiso.com GAUTENG DEPARTMENT OF EDUCATION PROVINCIAL EXAMINATION NOVEMBER 2020 GRADE 11 ACCOUNTING PAPER 1 ANSWER BOOK TIME: 2 hours MARKS: 150 10 pages Name of school Name of learner Date Possible Obtained Moderated Question Topic Marks Marks Marks 1 Financial Statements 55 2 Partnerships 40 Interpretation and 3 20 analysis Asset Management & 4 35 internal control 150 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 2 PAPER 1 GRADE 11 QUESTION 1: FINANCIAL STATEMENTS (55 marks; 42 minutes) Golden Gate Traders Statement of Comprehensive Income (Income Statement) for the year ending 30 June 2020 Sales Cost of Sales Gross Profit Other operating income Rent income (17 836 Discount received (600 Gross operating income Other operating expenses Repairs 1 500 Bad debts 1 618 Telephone (2 350 Rates 2 850 Insurance (4 120 Packing materials Water and electricity 4830 Salaries (78 000 U.I.F. contributions (3 120 Operating Profit Interest income (1 125 Profit before interest expenses Interest expenses Net Profit for the Year 40 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 3 PAPER 1 GRADE 11 Golden Gate Traders Notes to Financial Statements as at 30 June 2020 1.2.1 Trade and other receivables Trade Debtors (31 900 6 1.2.2 Trade and other payables Trade Creditors (21 363 9 55 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 4 PAPER 1 GRADE 11 QUESTION 2: PARTNERSHIPS (40 marks; 32 minutes) 2.1 TRUE or FALSE Number Answer 2.1.1 2.1.2 2.1.3 2.1.4 2.1.5 5 2.2 Mighty Mouse Traders Notes to Financial Statements as at 28 February 2020 Current Accounts Mighty Mouse Total Net profit as per Income Statement 141000 Partners’ salaries Interest on capital Primary distribution of profit Final distribution of profit/loss Drawings for the year Retained income for the year Balance at beginning of year Balance at end of year 14 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 5 PAPER 1 GRADE 11 2.3 Mighty Mouse Traders Statement of Financial Position (Balance Sheet) as at 28 February 2020 ASSETS NON-CURRENT ASSETS Fixed assets Financial assets Fixed deposit : Giant Bank Fixed Deposit : Small Bank CURRENT ASSETS Inventories Trade and other receivables Cash and cash equivalents Total assets EQUITY AND LIABILITIES OWNERS’ EQUITY Capital Current accounts 2.2 NON-CURRENT LIABILITIES Loan : Giant Bank CURRENT LIABILITIES Trade and other payables Bank overdraft Short term loan Total equity and liabilities 21 40 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 6 PAPER 1 GRADE 11 QUESTION 3: ANALYSIS AND INTERPRETATION (55 marks; 16 minutes) 3.1 Calculate King Ben’s percentage earnings for the year ended 31 December 2020. Does he have reason to be satisfied? Give one reason for your answer. (10) Calculation: Satisfied / Not satisfied Reason: 10 3.2 Calculate the debt-equity ratio on 31 December 2020. (3) Calculation: 3 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 7 PAPER 1 GRADE 11 3.3 The partners are considering taking up an additional R200 000 loan at an interest rate of 12% per annum. Do you think this is a good idea? Refer to one financial indicator and to gearing to motivate your answer with figures. (3) Good idea/not good idea Motivation: 3 3.4 The partners are concerned about the liquidity position of the business. Refer to two financial indicators with figures to justify their concerns. (4) Financial indicator 1: Financial indicator 2: 4 20 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 8 PAPER 1 GRADE 11 QUESTION 4: ASSET MANAGEMENT AND INTERNAL CONTROL (35 marks; 30 minutes) 4.1 Ethics Number Answer 4.1.1 4.1.2 4.1.3 4.1.4 4.1.5 5 4.2 Accounting Equations Owners’ Number Account debited Account credited Assets Liabilities equity Example Bank Capital : Barack 0 + 50 000 - 50 000 4.2.1 4.2.2 8 4.3 Asset Management 4.3.1 If all vehicles are depreciated using the same method, what is rate of depreciation used by the business? (3) Calculations: 3 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 9 PAPER 1 GRADE 11 4.3.2 It was decided to sell Vehicle 2 (see fixed asset register) as it was costing too much in repairs and maintenance. Complete the asset register page to calculate the vehicle’s book value on the date it was sold. (Round off to the nearest Rand when doing all depreciation amounts.) (10) Movement Accumulated Carrying Date Cost price Depreciation depreciation value 28 February 2018 380 000 47 500 47 500 332 500 28 February 2019 380 000 83 125 130 625 249 375 28 February 2020 380 000 31 May 2020 380 000 Calculations: February 2020: May 2020: 10 P.T.O.

Downloaded from hlayiso.com 4.4 Problem solving Accounting Made Easy Branch Problem with figures Solution Daveyton Actonville Farramere 9 35 TOTAL: 150 END