Accounting Grade 10 North West June 2024 QP (Eng)

PROVINCIAL ASSESSMENT GRADE 10 ACCOUNTING JUNE 2024 MARKS: 200 TIME: 2½ hours This question paper consists of 11 pages, a formula sheet and a 11-page answer book. Copyright reserved Please turn over

Accounting 2 NW/June 2024 Grade 10 INSTRUCTIONS AND INFORMATION Read the following instructions carefully and follow them precisely. 1. Answer ALL the questions. 2. A special ANSWER BOOK is provided in which to answer ALL questions. 3. A Financial Indicator formula sheet is attached at the end of this question paper. You may use it if necessary. 4. Show ALL workings to earn part-marks. 5. You may use a non-programmable calculator. 6. You may use a dark pencil or blue/black ink to answer questions. 7. Where applicable, show ALL calculations to ONE decimal point. 8. Write neatly and legibly. 9. Use the information in the table below as a guide when answering the question paper. Try NOT to deviate from it. QUESTION TOPIC MARKS MINUTES 1 GAAP 5 4 2 Journals & Internal controls 70 52 3 Ledgers 38 28 4 Salaries and Wages 26 20 5 Final accounts 15 11 6 Reconciliation and Transaction analysis 46 35 TOTAL 200 150 Copyright reserved Please turn over

Accounting 3 NW/June 2024 Grade 10 QUESTION 1: GAAP (5 marks; 4 minutes) Match the description in column A with the word in column B. Write down only the letter from column B next to the number on the answer sheet. Column A Column B 1.1 Land and buildings are shown in the A Business entity concept Financial records at cost price (R 500 000) even though the market price of the property is R1 000 000. B Matching 1.2 Interest on overdraft is shown in a separate account in the General Ledger. C Going concern 1.3 The telephone account of the owner, that is paid by the business, is allocated to the drawings account. D Prudence 1.4 Assets and Liabilities are not over- or understated in the financial records of the business. E Historical cost 1.5 Credit sales are recorded on the day it happened and not on the day the debtor settles the account. F Materiality 5 Copyright reserved Please turn over

Accounting 4 NW/June 2024 Grade 10 QUESTION 2: JOURNALS AND INTERNAL CONTROLS (70 marks; 52 minutes) ALPHA TRADERS The following information was extracted from the financial information of Alpha Trades for the month ended 30 April 2024. REQUIRED: 2.1 Use the information from the given transactions to complete the following journals for the month ended 30 April 2024. Do not total the journals. Debtors Journal (5) Debtors Allowance Journal (6) Cash Receipts Journal (25) Cash Payments Journal (16) Creditors Journal (7) Creditors Allowance Journal (2) Petty Cash Journal (5) 2.2 Name and describe TWO internal controls for Cash Receipts. (4) INFORMATION: The business buy and sell goods for cash and on credit. All goods are sold at cost plus 25% mark-up. Transactions for April 2024: 1 The owner, Mr F Alpha, contributed a further R50 000 as capital by making a direct deposit into the bank account of the business. Issued receipt 20. 3 Bought merchandise per EFT9 from Abdul Wholesalers, R9 145. Paid Stofile Transport per EFT for the delivery of the merchandise, R500. 5 Cash sales for the week were banked R12 500. (CRR5) Issued invoice no 60 to S Botha for goods sold on credit to him, R6 250. Cost of sales R5 000. 12 Bought merchandise, R15 000 and stationery on credit from All Suppliers and received their invoice for R16 500. Renumber the invoice to no 47. 14 Receive R2 000 from N Themba, a debtor, as part payment on his account. Issued a receipt to him. Rent was R3 000 per month but increased with 12% as form 1 April 2024. Issued a receipt to B Zulu for April’s rent. Copyright reserved Please turn over

Accounting 5 NW/June 2024 Grade 10 15 Draw cash for the following: R1 500 for Cash float and R500 for the owner’s personal use. 16 M. Manning settled his account of R2 650. A receipt was issued and a discount of 10% was allowed for early payment. 19 Goods sold for cash as per cash register roll 6, R8 765 (Cost price R7 012) 21 Bought stationery with cash from the Petty Cash, R50. Petty Cash voucher 20 was completed. 22 A Fixed deposit of R20 000 at Invest Bank matured. Received R20 850. This amount includes interest on the fixed deposit. 23 Sold trading stock with a cost price of R3 640 on account to G Simenya. An invoice was issued. 24 Made an EFT payment of R2 800 to settle the account of AB Suppliers after a discount was received of R200. 25 Postage was paid on behalf of a debtor with money from the Petty Cash, R100. 26 Bought the following on account from Office Suppliers, Desk and chair, R4 500 and Stationery, R850. S Botha retuned some of the goods sold to him with a selling price of R250. Credit note 15 was issued to him. 27 Returned some of the merchandise to All Suppliers that was damaged on delivery, R1 750. Debit note no 54 was issued. 28 G Simenya complained about the quality of the trading stock received. An allowance of R600 was granted to him. 30 Made an EFT payment to West Bank for R5 200. This was an instalment on the loan. 70 Copyright reserved Please turn over

Accounting 6 NW/June 2024 Grade 10 QUESTION 3: LEDGERS (38 marks; 28 minutes) 3.1 DEBTORS LEDGER REQUIRED: Complete the account of L Martino in the Debtors Ledger of Horseshoe (12) Stores for May 2024. TRANSACTIONS: 1. Balance brought down from April 2024 R 2 680. 5. Received an EFT payment form L Martino for R2 600 in full settlement of his account as on 1 May 2024. Receipt no. 800 was issued to him. 7. Issued invoice no. 500 for goods sold on credit to L Martino for R1 500. Cost of sales R 750. 10. Cash sales to L Martino for R500 per Cash Register Roll 8. 14. Issued invoice no. 516 to L Martino for credit sales to him R1 050. 15. Credit note no. 10 was issued to L Martino for goods retuned by him with a cost price of R200 and a selling price of R400. Copyright reserved Please turn over

Accounting 7 NW/June 2024 Grade 10 3.2 GENERAL LEDGER REQUIRED: Supply the missing details indicated with (A to N) in the accounts below. The business uses a 50% mark-up on cost price. (26) GENERAL LEDGER OF FOR YOU TRADERS BALANCE SHEET ACCOUNTS Dr TRADING STOCK B7 Cr 2024 2024 May 1 Balance b/d 53 762 May 31 (A) CRJ (B) 31 Creditors control CJ 19 260 Cost of Sales (E) (F) Bank CPJ 9 560 (G) CAJ 270 Cost of Sales (C) (D) Balance c/d 82 722 82 722 June 1 Balance b/d Dr DEBTORS CONTROL B8 Cr 2024 2024 Bank & discount May 1 Balance b/d 8 610 May 31 allowed CRJ 10 720 31 Sales DJ 11 415 (H) DAJ 210 Balance c/d 9 095 20 025 20 025 June 1 Balance b/d 9 095 Dr CREDITORS CONTROL B9 Cr 2024 Bank & discount 2024 May 1 received CPJ 26 400 May 1 Balance b/d 17 410 31 (I) CAJ 270 31 (J) CJ 19 260 Balance c/d (K) June 1 Balance b/d (K) NOMINAL ACCOUNTS Dr SALES N1 Cr 2024 May 1 Total b/d 110 525 31 Bank (M) 12 345 (L) DJ (N) Dr COST OF SALES N2 Cr 2024 2024 May 1 Total b/d 73 300 May 31 Trading stock DAJ **** 31 Trading stock CRJ ***** Trading stock DJ 7 610 Copyright reserved Please turn over

Accounting 8 NW/June 2024 Grade 10 QUESTION 4: SALARIES AND WAGES (26 marks; 20 minutes) 4.1 SALARIES JOURNAL An employee, M Mathaba, was left off the Salaries Journal of XY STORES for February 2024. REQUIRED: Complete the salaries journal by entering the following information. (10) INFORMATION: M Mathaba earns a gross salary of R15 000. The following amounts are deducted from his salary: PAYE R950 and Pension Fund R1 125. The compulsory UIF deduction is 1% of Gross salary. The business contributes on a Rand for Rand basis towards the Pension Fund and UIF. 4.2 GENERAL LEDGER The following information was extracted from the accounting records of GOOD QUALITY CLOTING STORE for the week ended 21 October 2023. REQUIRED: 4.2.1. Complete the General Ledger with the totals form the Wages (12) Journal for the week ended 21 October 2023. 4.2.2. Name and describe TWO internal controls that the business (4) can put in place to prevent fake employees to be created on the payroll system. INFORMATION: Wages Journal of Good Quality Clothing Store for the week ended 21 October 2023. Earnings per time Gross Deductions Nett Contributions Normal Overtime Wage PAYE Medical Pension UIF Wage Medical UIF Aid Fund Aid 3 000 2 500 5 500 150 280 150 50 4 870 160 50 26 Copyright reserved Please turn over

Accounting 9 NW/June 2024 Grade 10 QUESTION 5: FINAL ACCOUNTS (15 marks; 11 minutes) The following information was extracted from the accounting records of JK Trades. REQUIRED: Complete the Profit and Loss account in the General Ledger of JK Traders on 28 February 2024. INFORMATION: Extract from the Post Adjustment trial balance as on 28 February 2024. Nominal accounts Sales N1 268 400 Cost of Sales N2 90 000 Debtors allowance N3 2 000 Salaries & Wages N4 59 000 Bad debts N5 2 800 Advertising N6 4 560 Repairs N7 11 900 Depreciation N8 3 590 Telephone N9 6 770 Insurance N10 6 790 Rent income N11 26 000 Interest income N12 5 680 15 QUESTION 6: RECONCILIATION AND TRANSACTION ANALYSIS (46 marks; 35 minutes) 6.1 TRANSACTION ANALYSIS REQUIRED: Analyse each of the transactions below and indicate the effect on the Accounting (29) Equation. Answer each question INDEPENDENTLY from the others. Assume that the Bank account balance is favourable. TRANSACTIONS: (i) Write off the account of a debtor as irrecoverable, R850. (ii) ABD Suppliers charged our account with interest, R50. (iii) Repairs of R20 000 was debited to the Land and Buildings account. Correct the error. (iv) Made an EFT payment to a creditor, R8 540 (v) Credit sales to W Coetzee, R600 (Cost of sales R300) Copyright reserved Please turn over

Accounting 10 NW/June 2024 Grade 10 6.2 RECONCILIATION The inexperienced bookkeeper of WME Traders drew up the Debtors control account for the month ended April 2024. The owner approached you to help to correct the account. REQUIRED: Draw up the corrected Debtors control account in the books of WME Traders for the (17) month ended 30 April 2024. Balance the account at the end of the month INFORMATION: Dr DEBTORS CONTROL B5 Cr 2024 2024 April 1 Balance b/d 12 895 April 30 Sales DJ 15 750 Bank and 30 Petty Cash PCJ 250 discount allowed CRJ 11 560 Debtors Allowance DAJ 1 155 Balance c/d 13 010 27 310 27 310 May 1 Balance b/d 13 010 The following errors were found: a) Some of the journals was transferred to the wrong side of the control account. b) The sales column in the Debtors Journal was under cast by R1 000. c) A debtor who paid R800 to settle his debt of R820, was omitted from the Cash Receipts Journal. d) The correct total of the Debtors Allowance column in the Debtors Allowance Journal was R1 550. 46 TOTAL: 200 Copyright reserved Please turn over

Accounting 11 NW/June 2024 Grade 10 GRADE 10 ACCOUNTING FINANCIAL INDICATOR FORMULA SHEET Gross profit x 100 Gross profit x 100 Net profit x 100 Sales 1 Cost of sales 1 Sales 1 Operating expenses x 100 Operating profit x 100 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_ x 100 Total assets : Total liabilities Owner’s equity 1 Copyright reserved