# Accounting Grade 12 Gauteng Mock 2016 Addendum > Grade 12 Accounting addendum from the Gauteng Mock Exam 2016, 17 pages. Read online or get the free PDF download. - Page: https://www.hlayiso.com/library/grade-12-nsc-accounting-10710-preperatory-2016-answer-book/68246bc2-7ba1-41ec-99db-3737ff97d717 - Updated: 2026-09-27 - Subject: Accounting - Grade: Grade 12 - Document type: Addendum - Year: 2016 - Exam period: Gauteng Mock Exam - Curriculum: CAPS - Pages: 17 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 12](https://www.hlayiso.com/library/grade-12) › [Accounting](https://www.hlayiso.com/library/grade-12/accounting) › [Accounting Grade 12 Gauteng Mock 2016 Addendum](https://www.hlayiso.com/library/grade-12-nsc-accounting-10710-preperatory-2016-answer-book/68246bc2-7ba1-41ec-99db-3737ff97d717) ## About this document Accounting · Grade 12 · Gauteng Mock Exam · 2016. Addendum, 17 pages. Read online or download the PDF. 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Layout, diagrams and tables may not survive extraction. ### Page 1 Downloaded from hlayiso.com GAUTENG DEPARTMENT OF EDUCATION PREPARATORY EXAMINATION 2016 10710 ACCOUNTING ANSWER BOOK Name QUESTION POSSIBLE MARKS MARKER MARKS 1 35 2 40 3 70 4 60 5 45 6 50 TOTAL 300 17 pages 3 P.T.O. ### Page 2 Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 2 10710/16 GAUTENG DEPARTMENT OF EDUCATION PREPARATORY EXAMINATION – 2016 ACCOUNTING TIME: 3 hours MARKS: 300 QUESTION 1: BANK AND CREDITORS’ RECONCILIATION 1.1 BANK RECONCILIATION 1.1.1 Calculate the bank balance as at 31 July 2016. 11 1.1.2 Prepare the Bank Reconciliation Statement on 31 July 2016. 7 1.1.3 Explain ONE internal control measure that can be used to ensure that this problem does not occur. 2 P.T.O. ### Page 3 Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 3 10710/16 1.2 CREDITORS’ RECONCILIATION 1.2.1 Explain why the balance of the Creditors’ Control Account and the total of the Creditors’ List should correspond. 2 1.2.2 Reconcile the Creditors’ Control Account with the Creditors’ List on 31 August 2016. The balance in the Creditors’ Control Account was R108 450 and the total of the Creditors’ List was R104 865. CREDITORS’ CONTROL CREDITORS’ LIST DEBIT CREDIT DEBIT CREDIT 108 450 104 865 A. B. C. 13 D. E. F. G. BALANCE BALANCE TOTAL MARKS 35 P.T.O. ### Page 4 Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 4 10710/16 QUESTION 2: MANUFACTURING, CONCEPTS AND NOTES CONCEPTS 2.1 Indicate whether the following statements are TRUE or FALSE. Write only 'true' or 'false' next to the question number (2.1.1–2.1.3) in the ANSWER BOOK 2.1.1 2.1.2 3 2.1.3 2.2 THE CLOTHING FACTORY SHOP 2.2.1 Prepare the Factory Overheads Note to the Production Cost Statement. 14 2.2.2 Calculate on Direct material cost on 29 February 2016. 7 Calculate on Direct labour cost on 29 February 2016. 4 P.T.O. ### Page 5 Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 5 10710/16 2.3 FAST MOVERS FACTORY SHOP 2.3.1 Calculate the break-even point. 4 Patrick is satisfied with the break-even point. Explain. Quote figures. 4 2.3.2 Identify one specific factory cost that has improved. Quote figures. Provide ONE possible reason for this. 3 TOTAL MARKS 40 P.T.O. ### Page 6 Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 6 10710/16 QUESTION 3 3.1 Match the concepts in Column A with the descriptions in Column B. 3.1.1 4 3.1.2 3.1.3 3.1.4 3.2 FOLLOWS ON THE NEXT PAGE. P.T.O. ### Page 7 Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 7 10710/16 3.2 YEH HAI LIMITED 3.2.1 YEH HAI LIMITED INCOME STATEMENT FOR THE YEAR ENDED 29 FEBRUARY 2016 Sales 5 970 000 Cost of sales 3 200 000 Gross profit Other operating income Bad debts recovered 3 860 Rent income 234 000 Gross operating income Operating expenses Salaries and Employer’s contribution 921 268 Directors’ fees 840 000 Loss on sale of asset 10 000 Audit fees 76 000 Sundry expenses 292 330 Bad debts 12 100 Operating profit (loss) Interest Income 27 000 Profit (loss) before interest expense Interest Expense Profit (loss) before tax Income Tax Net profit (loss) after tax 35 P.T.O. ### Page 8 Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 8 10710/16 3.2.2 Prepare the following notes to the Balance sheet. (Statement of Financial Position) FIXED/TANGIBLE ASSETS Land and Vehicles Equipment Building Carrying value at the beginning of the year Cost 652 000 760 000 Accumulated depreciation (236 000) (650 000) Movement Additions 13 Disposal at carrying value Depreciation for the year Carrying value at the end of the 6 789 720 year Cost 6 789 720 452 000 760 000 Accumulated depreciation (247 200) ORDINARY SHARE CAPITAL AUTHORISED Number of authorised ordinary shares: 3 000 000 shares ISSUED R 2 000 000 Ordinary shares at the beginning of the year 5 000 000 9 P.T.O. ### Page 9 Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 9 10710/16 3.3 AUDIT OF PROTEA LIMITED 3.3.1 The business received a (qualified, unqualified, disclaimer) report. Give a reason for your answer. 3 3.3.2 Who is the audit report addressed to? Give a reason for your answer. 2 3.3.3 Explain why the Companies Act makes it a requirement for public companies to be audited by an independent auditor. Give ONE reason. 2 3.3.4 The auditor’s report refers to the International Financial Reporting Standards (IFRS). Explain why auditors have to take IFRS into account when expressing their opinions? 2 TOTAL MARKS 70 P.T.O. ### Page 10 Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 10 10710/16 QUESTION 4: CASH FLOW STATEMENT AND RATIO ANALYSIS 4.1 Write down only the answer next to the question number (4.1.1 – 4.1.3) in the answer book. 4.1.1 4.1.2 3 4.1.3 4.2.1 For the purpose of the Cash Flow Statement calculate the income tax paid for the year ended 29 February 2016. 5 4.2.2 Prepare the section of the Cash Flow Statement showing the cash effects on financing activities for the year ended 29 February 2016. CASH FLOW FROM FINANCING ACTIVITIES 9 P.T.O. ### Page 11 Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 11 10710/16 4.2.3 Calculate the following financial indicators for the financial year 29 February 2016. (Round-off your calculations to ONE decimal point or to the nearest cent, where applicable.) Return on average shareholders’ equity (ROSHE) 5 Debt equity ratio for 2016 3 4.2.4 Comment on the following financial indicators. Note that the intended mark-up is 50% on cost of sales. Reason for improvement Comment with figures or decline % Gross profit on cost of sales 8 % Operating expenses on sales P.T.O. ### Page 12 Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 12 10710/16 4.2.5 The directors are of the opinion that the shareholders should be satisfied with the performance of the company. Explain TWO financial indicators or actual ratios/percentages to support their opinion. 6 4.2.6 You are a shareholder of Mika Ltd. Calculate the price at which the new shares were offered. Comment on the selling price of the new shares issued. Quote TWO relevant financial indicators to support your answer. 7 4.2.7 One of the directors feels that the loan should be paid-off as soon as possible. Do you agree? Explain quoting TWO financial indicators (with figures) to support your answer. 5 P.T.O. ### Page 13 Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 13 10710/16 4.2.8 Comment on the liquidity position of the company. Quote THREE relevant financial indicators (actual figures / ratios / percentages) and their trends. 9 TOTAL MARKS 60 P.T.O. ### Page 14 Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 14 10710/16 QUESTION 5 5.1 VAT CONCEPTS Choose the correct word from those which are given within the brackets. 5.1.1 5.1.2 5.1.3 3 5.2 VAT CALCULATIONS Calculate the amount of VAT payable to OR receivable from SARS on 29 February 2016. 12 P.T.O. ### Page 15 Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 15 10710/16 5.3 INVENTORY VALUATION 5.3.1 What does FIFO stand for? 1 5.3.2 Calculate the closing stock of shoes according to the weighted average method on 30 June 2016. 10 5.3.3 Calculate the number of stolen items of footwear accessories. 4 Average stock holding period in days 8 Should Mani Traders continue buying and selling accessories? Provide TWO points of advice. Quote figures to support your answer 7 TOTAL MARKS 45 P.T.O. ### Page 16 Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 16 10710/16 QUESTION 6 6.1 Indicate whether each of the following statements is TRUE or FALSE: 6.1.1 6.1.2 6.1.3 6.1.4 4 6.2 Identify an incorrect entry in the cash budget and explain why this is incorrect. 2 6.3 State THREE ways in which the purchasing of Land and Building would be financed. 3 6.4 Complete the Debtors’ Collection schedule for the budgeted period. MONTH CREDIT SALES OCTOBER NOVEMBER August 2016 135 000 64 800 September 2016 150 000 October 2016 9 November 2016 34 200 467 100 P.T.O. ### Page 17 Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 17 10710/16 6.5 Calculate the missing figures denoted by A – E on the cash budget. A B C D 12 E 6.6 Comment on the cash and credit sales. Quote figures. Explain how these amounts affect the cash flow of the business. 6 Has the advertising campaign been beneficial to the business? Explain. Quote figures. 5 Do you think the collection from debtors is well controlled? Explain. Quote figures. Give TWO points of advice. 9 TOTAL MARKS 50 TOTAL: 300 END ## Related documents - [Gr12 Accounting P2 (Afrikaans) SEP 2022 Answer Book](https://www.hlayiso.com/library/gr12-accounting-p2-afrikaans-sep-2022-answer-book/d433311b-2ab8-4c86-90d3-42fe3c2ac6c3) — Accounting · Addendum · 2022 · Afr - [Grade 12 NSC Accounting X5 Preparatory 2018 Answer Book](https://www.hlayiso.com/library/grade-12-nsc-accounting-x5-preparatory-2018-answer-book/1421ebad-78d7-44c5-8bc8-32ed3600ed1b) — Accounting · Addendum · 2018 - [Grade 12 NSC Accounting X10 Afrikaans 2018 Answer Book](https://www.hlayiso.com/library/grade-12-nsc-accounting-x10-afrikaans-2018-answer-book/69e260ea-abfd-4631-a19b-66d4d2e224a7) — Accounting · Addendum · 2018 · Afr - [Grade 12 NSC Accounting (English) Answer Book 2015 Prepartory Examination Answer Book](https://www.hlayiso.com/library/grade-12-nsc-accounting-english-answer-book-2015-prepartory-examination-answer-book/1504bb7f-526b-44e4-991e-b308973bbfca) — Accounting · Addendum · 2015 · Eng - [ACCN GR12 SEPT2016 AFR QP](https://www.hlayiso.com/library/accn-gr12-sept2016-afr-qp/60974d99-7967-406d-8a25-f56fbba8eb17) — Accounting · QP · 2016 · Afr - [2016 KZN June Memo](https://www.hlayiso.com/library/2016-kzn-june-memo/f370d234-2813-4e5b-8c39-f416ea0e8128) — Accounting · Memo · 2016 ## More from Grade 12 Accounting - [Accounting](https://www.hlayiso.com/library/accounting/8f42a6a4-9593-4d36-86b1-d890dd1bb1bf) — Guide - [Acc P2 Memo ENg watermark](https://www.hlayiso.com/library/acc-p2-memo-eng-watermark/5c899e95-f3c2-4bf6-b539-ed8b1bcec50d) — Memo · 2025 · Eng - [ACCOUNTING P1 GR12 QP JCT 2025 AFR D watermark](https://www.hlayiso.com/library/accounting-p1-gr12-qp-jct-2025-afr-d-watermark/c6a5692b-3cb0-464b-bb82-67d6ce83bfdd) — QP · 2025 · Afr - [ACCOUNTING P1 GR12 QP JCT 2025 ENG D watermark](https://www.hlayiso.com/library/accounting-p1-gr12-qp-jct-2025-eng-d-watermark/84d92eb0-f5bd-4442-bb6d-c55cdc52e25d) — QP · 2025 · Eng - [ACCOUNTING P2 QP GR12 JCT 2025 ENG D watermark](https://www.hlayiso.com/library/accounting-p2-qp-gr12-jct-2025-eng-d-watermark/13425f71-aba6-4328-b084-d9b108884315) — QP · 2025 · Eng - [Accounting P1 (Afrikaans) June 2025 Possible Answers](https://www.hlayiso.com/library/accounting-p1-afrikaans-june-2025-possible-answers/2f10559b-54d6-47f4-9fc2-b2efc62644c4) — Memo · 2025 · Afr ## Collection - [Grade 12 past papers](https://www.hlayiso.com/grade-12/past-papers) --- Hlayiso: free CAPS and IEB past papers, memos, notes and study guides for South African learners. 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