GR11 Accounting Practice exam memorandum November Paper 2

Study & Master Support Pack | Grade 11 CAPS Accounting Memorandum: November exemplar examination (Paper 2) This revision pack for Accounting Grade 11 provides support for learners revising the most important concepts and principles covered in the CAPS curriculum, by providing practice exams. This pack offers a marking memorandum for the November exemplar examination (Paper 2). You have permission to print or photocopy this document, and to distribute it electronically via email or WhatsApp. For more information on our Study & Master CAPS-approved  textbooks and valuable resource materials, visit www.cambridge.org Brighter Thinking | Better Learning i

Grade 11 NOVEMBER Time: 2.5 hours EXAMINATION PAPER 2 MEMORANDUM Marks: 150 QUESTION 1 [37 marks] BANK RECONCILIATION 1.1 Calculate the correct totals for the Cash Receipts Journal and Cash Payments Journal for February 2023. CRJ CPJ 88 906 59 082 2 100  4 650  4 650  2 400  686  1 890  157  102  96 342 68 281 16 1.2 Calculate the correct balance of the bank account, according to the General Ledger on 28 February 2023. 96 342() –5 849 - 68 281 () = 22 212 () 4 1.3 Prepare the Bank Reconciliation Statement on 28 February 2023. Debit Credit Cr-balance according to statement  19 333 Credit outstanding deposit  17 610 Debit outstanding cheques No. 669  4 650 No. 662  3 490 No. 667  6 500 Correction on bank statement (989-898)  91 () Dr balance according to bank account 22 212 36 943 36 943 13 1

Why will the auditor be interested to see that the Bank Reconciliation 1.4 Statement is prepared every month? To see that controls are put in place to control cash To see that the business is checking for discrepancies between the business records and the bank statement To enter additional information Any acceptable answer x  2 What audit evidence can the auditor obtain to verify that cheque 667 to 1.5 Xoseka & Co has actually been issued? Contact Xoseka & Co to see if they received the payment Wait until the cheque is cleared by the bank the next month Look at receipt from supplier as proof of payment Any acceptable answer x  2 QUESTION 2 [34 marks] INVENTORY SYSTEMS 2.1 Dr    Trading account Cr Date Details Fol. Amount Date Details Fol. Amount 2023 2023 Sales Jun 30 Opening stock 45 600 Jun 30 (444 120 – 2 390 – 970 – 4 224) 436 536 Purchases (271 350 – 1 300 + 4 670 – 2 640) 272 080 Closing stock  33 210 Carriage on purchases (12 340 + 290) 12 630 Profit and loss 139 436 469 746 469 746 14 Determine the mark-up percentage achieved by the business for the year 2.2 ended 30 June 2023. 139 436  × 100 297 100  = 46,93% or 47%  3 2

2.3 Determine the average months stock on hand for the year ended 30 June 2023. 1 (45 600 + 33 210) 2 × 12 297 100 = 1,6 months  5 2.4 List TWO possible reasons, besides the situation mentioned in 2.6, for the business not achieving its mark-up percentage of 60%. The price of suppliers increased while the selling price remained constant Sales/allowances were given in order to increase turnover Theft Errors on invoices Any two acceptable answers 2 x  4 2.5 List ONE reason why the business should not have too much stock on hand, and ONE reason why the business should not have too little stock on hand. Not too much stock: Stock can become obsolete  Negative influence on the cash flow of the business Not too little stock: Will lose customers if stock is not available  Any acceptable answer 4 2.6 The auditor discovered that the employee responsible for ordering stock, orders stationery for himself, but the business ends up paying for it. What internal control measures over stock can be put in place to prevent situations like this? List TWO. Split duties – the person ordering the stock should not be paying as well Stock delivered should be compared with the invoices by somebody else Any two acceptable answers 2 ×  4 3

QUESTION 3 [39 marks] BUDGETS AND VAT 3.1 Complete the sentence Control over cash 3.1.1 Planning purposes 3.1.2 Payment to creditors/receipts from debtors/purchases of assets  3.1.3 Depreciation/withdrawal of trading stock  6 3.2 Calculate the missing figures indicated by A, B and C in the Fixed Assets note below. Calculations Answer A 342 000 × 60% 205 200 B 342 000 × 40% 136 800 C 239 400 × 30% 71 820 D 205 200() × 20% × 95% 38 988 E 136 800 + 71 820 + 38 988 247 608 F 399 000 × 40% 159 600 G 171 000 × 20% 34 200 H 285 000 × 80% 228 000 I [(320 000 - 32 000) × 12%] ÷ 12 2 880 J {(1 300 x 6) × 4} × 107 33 384  100 Or 22 256 x 6 ÷ 4 K 6 400 × 109/100 6 976 L (70 000 + 49 000)  – (35 800 + 25 100)  58 100 30 3.3 In order to increase sales and the number of customers, Samantha intends to advertise that credit limits for all credit customers will be increased to R30 000 and that new customers are welcome to open accounts during April. Do you agree with Samantha? Give a reason for the answer. No  She does not have good control over debtors as it is She will have to write off too many bad debts She must first do a credit background check on customers Any acceptable reason  3 4

QUESTION 4 [40 marks] MANUFACTURING 4.1 Choose a category from COLUMN B that matches a description in COLUMN A. 4.1.1 E 4.1.2 D 4.1.3 E 4.1.4 C 4 4.2.1 General Ledger Dr    Raw material stock Cr Date Details Fol. Amount Date Details Fol. Amount 2012 2013 Mar 01 Balance bd 21 300 Feb 28 Raw material issued 425 400 2013 Feb 28 Creditors control 321 000 Balance cf 15 600 Bank 98 700 441 000 441 000 2013 Mar 01 Balance bd 15 600 6 4.2.2 Calculate the factory overhead cost for the year. Salary – factory foreman 68 000 Motor vehicle expenses 21 000 Water and electricity 28 800 Indirect material (2900 + 17600 – 2 350) 18 150 Sundry expenses 45 200 181 150 9 5

4.2.3 General Ledger Dr   Work-in-process Cr Date Details Fol. Amount Date Details Fol. Amount 2012 2013 Mar 01 Balance bd 13 100 Feb 28 Finished goods  1 021 450 2013 Feb 28 Direct material cost  () 425 400 Balance cf 18 200 Direct labour cost  420 000 Factory overheads  () 181 150 1 039 650 1 039 650 2013 Mar 01 Balance bd ()18 200 9 4.2.4 Calculate the Cost of Sales for the year. 21 100 + 1021 450 – 23 400  = 1 019 150  4 4.3.1 Calculate the break-even point. Contribution per unit = 24 – 17,60 = 6,40 Break-even point Total fixed cost = Contribution per unit = 77 160 6,40 12 056 = 12 057 units 5 4.3.2 Comment on the number of bags she is producing. Quote figures and refer to break-even point. Karen should be producing 12 056 bags – she only produced 10 288 bags in 2013.  She is making a loss/she should produce and sell more bags in order to break even 3 6