Accounting Grade 10 KZN June 2023 Paper & Memo

Downloaded from hlayiso.com Down from Stanmorephysics.com } KWAZULU-NATAL PROVINCE EDUCATION REPUBLIC OF SOUTH AFRICA NATIONAL SENIOR CERTIFICATE MARKS: 200 TIME: 2% hours 11 pages and Special Answer Booklet of 7 pages. Copyright Reserved Please Turn Over

Accounting (Grade 10) Down loaded from h layis9,¢om..., Downloaded from Stalifmorephysics.com INSTRUCTIONS AND INFORMATION 1. i od You are provided with a question paper and an ANSWER BOOKLET in which to answer ALL questions. This questionjpaper comprises FOUR compulsory questions. Answer ALLithe questions. Use the format provided in the answer book in order to reflect your answers. Where applicable-workings must be shown in order to achieve part-marks. Non-programmable calculators may be used. You may use dark pencil or blue/black ink to answer the questions. Use the information in the table, below, as a guide when answering the question paper. Try NOT to deviate from it. QUESTION | TOPICS MARKS _| MINUTES 1 Debtors Reconciliation , Ethics and Internal Controls 32 24 2 Fixed Assets Ledger Accounts: Depreciation , Problem Solving 52 38 3 Final Ledger Accounts: Trading Account, Profit and Loss Account 62 47 Salary Scales, Wages Journal , Internal 4 Controls and Ethics 54 41 TOTAL 200 150 Copyright Reserved Please Turn Over

Downloaded from hlayisg,gcom Accounting (Grade 10) ommon Test Downloaded from Stahimorephysics.com QUESTION 1: DEBTORS RECONCILIATION AND CONTROLS (32 Marks; 24 Minutes) 1.1 Ntshondwe Traders sell goods for cash and on credit. 144 NtsHondwe Traders have telephone numbers of all their debtors. What other information or Documents should they obtain before allowing customers to open accounts? State TWO points with a reason in EACH case. (6) 1.1.2 Refer to Information A, B and C. Calculate: ¢ The correct closing balance of the Debtors’ Control Account on 30 June 2023 (7) e The correct amounts owing by debtors: - SShangase (D1) - K. Buthelezi (D2) - T.Mbhele (D3) - B.Ntshangase (D5) (19) INFORMATION: A. Balance of the Debtors’ Control Account on 30 June 2023, R324 400 (before errors and omissions). Indicate with (+) for an increase and (-) for a decrease B. Debtors’ list on 30 June 2023: DEBTORS FOLIO AMOUNT S. Shangase D1 R120 400 K. Buthelezi D2 75 000 T. Mbhele D3 39 000 N. Mavuso D4 84 000 B. Ntshangase DS 7 800 TOTAL R326 200 C. The following errors and omissions must be taken into account: (a) An invoice for R7 500 issued to T Mbhele was not! inetorded in the books of Ntshondwe Traders. (b) The total of the Debtors' Allowances Journal wasposted to the Debtors' Control Account as R60 300 instead of R63-000. Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting (Grade 10) June 2023 Common Test Downloaded from Steemorephysics. com (c) An invoice for R12 900 issued to B Ntshangase was posted incorrectly to the account of K Buthelezi. (d) An invoice for stock, R15 300 sold on credit to B Ntshangase was tr oh as a return of goods when posting it to the Debtors' Ledger \ecount of B Ntshangase. Ip (e) frites for R23 050, received from S Shangase in payment of his Account and the discount of R 2 450 was allowed, the transaction was recorded in the relévant.journal. No entries were made in his account in the Debtors' Ledger. (f) An invoice for R10 800 issued to T Mbhele was recorded correctly in the Debtors’ Journal, but posted as R18 900 to his account in the Debtors’ Ledger. (g) The total for discount allowed. in. the CRJ Wasoverstated by R1 500. Copyright Reserved Please Turn Over

Accounting (Grade 10) Downloaded from hlayiso.com june 2023 Common Test Downloaded from Stdfinorephysics.com QUESTION 2: FIXED/TANGIBLE ASSETS: LEDGER ACCOUNT (52 Marks; 38 Minutes) The following information was taken from the books of Bambanani Traders for the year ended 28 February 2023 REQUIRED: 2.1.1. Calculate the: t of Land and Building purchased on 1 February 2023. (4) ni 2:1.2 For Vehicles calculate the following: (i) | The cost of Vehicle on 1 March 2022 (4) (ii) |The carrying value Vehicles on 1 March 2022 (4) (iii) The depreciation for the year ended 28 February 2023 (10) (iv) The total Accumulated depreciation on Vehicles on 28 February 2023 (4) 2.13 For Equipment calculate the following: (i) The cost of Equipment on 28 February 2023 (2) (ii) The depreciation for the year ended 28 February 2023 (5) (iii) The carrying value on 28 February 2023 (5) 2.1.4 Calculate the total depreciation to be shown in the profit and loss account (5) INFORMATION: A The extract of the general ledger of Bambanani Traders on 28 February 2023 GENERAL LEDGER OF BAMBANANI TRADERS ON 28 FEBRUARY 2023 Balance sheet Accounts Section Land and Buildings Account 2022 2023 MAR 1 |Balance|b/d |1 250000 |Feb |28/|Balance|c/d|2 100 000 2023 Feb] 1 |Bank__|CPJ ? 2 100 000 2.100 000 2023 Feb 28|Balance|b/d_|2 100 000 Vehicles Account 2022 2023 BP Mar |1 |Balance b/d 2? |Feb |28|Balance|é/dj1 370 000 2022 r Aug |31|Creditors control|CJ| 680000 1 370 000 1370 000 2023 Mar |1 |Balance b/d| 1370 000 Copyright Reserved Please Turn Over

Accounting (Grace 10. DOWNIOaded from hlayiSQ.GAM «an ts Downloaded from Stanmorephysics.com Equipment Account 2022 12023 Mar |1 |Balance b/d | 200000 ||Feb |28|Balance c/d ? 200 000 200 000 2023 00] Mar _/|1 |Balance) b/d ? ” Accumulated Depreciation on Vehicles Account 2023 2022 Feb |28 |Balance c/d ?|Mar |1 [Balance b/d| 400 000 2023 Feb |28 | Depreciation GJ ? 2023 Feb |28 |Balance b/d ? Accumulated Depreciation on Equipment Account 2022 2022 Mar |1 [Balance b/d ?|Mar |1_ |Balance b/d 85 000 2023 Feb |28 | Depreciation GJ Feb |28 |Balance b/d vd Nominal Accounts Section Depreciation Account Accumulated 2023 Depreciation on 2023 Feb [28 |Vehicles GJ ? |Feb |28|Profitand Loss |GJ ? Accumulated depreciation on Equipment GJ 2 B The extension on Land and buildings was made on 1 Februaty 2023 c The new delivery van was bought on credit from Tira Motors on 31 August 2022 D No new equipment was purchased during the year. E Depreciation is calculated as follows: = On vehicles at 20% p.a. on cost price method = On equipment at 15% p.a. on carrying value method. Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting (Grade 10) 7 . June 2023 Common Test Downloaded from Stanmorephysics.com 2.2 Problem Solving REQUIRED: 2.2.1 Consider theinformation provided on 30 June 2023. Identify ONE problem per taxi. Quote figuires to support your opinion. Give ONE point of advice in each (9) case. i INFORMATION: |— A Shaya Zulu run a taxi business called Mageba Taxi Service at Sebenza. He is concerned that his income from taxi fares has not met his budget of R 3 000 000. And that the fuel cost and repair costs have exceeded his budget of R1 200 000. He has extracted the following information from the Ledger, the Fixed Assets Register and other records on 30 June 2023, the last day of the financial year. N.B: Mageba Taxi Services has estimated that a vehicle has a life span/ economic usefulness life of 10 years. Details NGM 2468 | NMG 5678 | NMG 9876 Name of the Driver Ntoko Thabo Sgwebo Date of purchase 1 July 2005 | 1 July 2020 | 1 July 2022 Cost of Vehicle R 150 000 R410 000 R 720 000 Accumulated Depreciation R149999| R246000| R144000 Carrying Value R1|R164000} R576000 Amount of Income cashed R960 000/ R180000} R 406000 Kilometers covered during the year 120000 KM | 70000KM]| 44000KM Fuel and repair costs for the year R 900 000 R 420 000 R 242 000 Fuel and repair cost per kilometer R 7.50 R 6.80 R 5.50 Copyright Reserved Please Turn Over

Accounting (Grade 10) Downloaded from Stufimorephysics.com QUESTION 3: FINAL LEDGER ACCOUNTS Downloaded from hlayiso,com, (62 Marks; 47 Minutes) The following information was taken from the financial records of JIT Stores for the year ended 28 February 2023. The business is owned by J George. REQUIRED: Prepare the following ledger accounts in the books of JIT Stores on 28 February 2023 after taking into account adjustments and additional information. Close off the accounts. nT 3.1. Trading Account! tf 3.2 Profit and Logs‘Aécount (9) (53) INFORMATION: A Pre-adjustment Trial Balance of JIT Stores on 28 February 2023. Debit Credit Balance Sheet Accounts Section Capital 3.918 960 Drawings 450 000 Mortgage Loan : Zuma Bank (18% p.a) 500 000 Land and Buildings 3 600 000 Equipment 240 000 Vehicles 1 560 000 Accumulated Depreciation on Equipment 47 000 Accumulated Depreciation on Vehicles 210 000 Trading Stock 359 000 Debtors Control 655 000 Bank 637 950 Petty Cash 20 000 Cash Float 30 000 Creditors Control 483 990 Fixed Deposit: Pongola Bank (12% p.a) 380 000 Pension Fund 45 000 Creditors for Salaries 268 000 Nominal Accounts Section Sales 4 550 000 Cost of Sales 2 130 000 Debtors Allowances 45 000 Salaries and Wages 1 402 000 Rent Income 423 500 Interest on Overdraft 5 900 Rates 27 000 Insurance 38 000 Repairs 26 000 Telephone 18 400 Stationery 22 400) Bank Charges 14 000] Bad debts Recovered 7 300 Bad Debts 9 600 : Interest on Loan 80 000 Interest on Fixed Deposit 40 000 Water and Electricity 30 000 11 131 300 11 131 300 Copyright Reserved Please Tur Over

Downloaded from hlayiso.com Accounting (Grade 10) June 2023 Common Test Downloaded from Stamnorephysics. com B ADJUSTMENTS AND ADDITIONAL INFORMATION 1, Rates include an amount of R 9 600 was paid for March and April 2023 in advance. 2. The rent for February 2023 has not yet been received from the tenant. 3. A debt Myeni, who owed R 14 400 has disappeared. Write off his account erable, sand electricity account for February 2023 has not yet been paid, 5. Provide Tor outstanding interest on loan. The interest on loan is calculated at 18% p.a. 6. Depreciation for the year has been correctly calculated as follows: - On equipment R 24 000 - On vehicles R 270 000 7. Provide for outstanding interest on fixed deposit. The interest on fixed deposit is calculated at 12% p.a. 8. On 14 February 2023 goods worth R 40 000 were damaged by fire. The insurance company has agreed to settle 60% of the claim, for which the EFT will be made in March 2023. The entry for the stock damaged was entered correctly in the trading stock account. Write off the loss due to fire. 9. Stock on hand as per physical count on 28 February 2023 revealed the following: - Trading stock, R 312 000 - Stationery .R 2 800 10. The bank statement received from Mchunu Bank reflected the following: - Service Fees R 1 100 - EFT Charges R 900 - Interest on Overdraft R 4 500 - AnEFT from S.Fokazi for R 3 200, a debtor whose account was written off as bad debt in 2021. The relevant entries were not made. Copyright Reserved Please Turn Over

Accounting (Grade own load ed from h layiso © CAM. Common Test NSC 7 Downloaded from Stanmorephysics.com QUESTION 4: SALARY SCALES, WAGES JOURNAL, ETHICS AND INTERNAL CONTROL (54 Marks; 41 Minutes) 4.1 The following salary scale was prepared for Alwande Mchunu, an administration clerk who works at ABC Suppliers. She was employed on 1 January 2023. INFORMATION: 480,000 x 48 000>576 000 x 52 000-680 000 x 55000845000 | ee Ss REQUIRED: Complete the table in you answer book and answer the following questions. 4.1.1 What is Alwande Mchunu’s monthly starting salary? (4) 4.1.2 Inwhich year will Alwande Mchunu earn R576 000? (2) 4.1.3 By what percentage Alwande Mchune’s salary increase at the end of the third year? (4) 4.1.4 | Howmany years will Alwande Mchunu have to work before he earns an annual salary of R845 000? (2) 4.2 WAGES JOURNAL You are provided with information related to CJB Traders for June 2023, the business manufactures and sell schools tracksuits. The business employs two (2) workers working to produce tracksuits. 4.2.1 Prepare the Wages Journal for the last week ending on 30 June 2023 (36) 4.2.2 The owner of the business Stan Mazibuko is concerned about the power cuts (load shedding) that are negatively affecting his business. He is considering retrenching one employee since load shedding is also causing his business to pay huge amount on overtime. « Give One point to the owner Stan Mazibuko against retrenching an employee. (2) = What measures can the business implement to prevent huge amount of overtime. Explain Two Points (4) INFORMATION: The workers employed by the business are expected to work 40 hours per week, however due to power cuts , employees worked as follows: M. Mbambo 40.hours @ R 240 per hour C. Ronaldo 35 hours @ R 340 per hour OVERTIME S M. Mbambo 15 hours)p/ C. Ronaldo 15 hoursyy N.B: The overtime rate is double the normal time d000] Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accounting (Grade 10) "1 . June 2023 Common Test Downloaded from Starmorephysics.com Deductions are as follows PAYE is 26% of Gross Wages for M. Mbambo and 31% of Gross Wages for C. Ronaldo Pension Fund 8% of Basic Wages UIF 1% of Gross Wages Medical Aid is deducted as follows M. Mbamo — R 1 150 C. Ronaldo — R 1 790 EMPLOYERS CONTRIBUTIONS: CJB Traders contributes on Rand — for — Rand basis towards Unemployment Insurance Fund. And 12% of Basic Wages on Pension Fund. CJBTraders also contributes R2.50 for every rand deducted on employees for Medical Aid Fund. TOTAL MARKS: 200 Copyright Reserved

Downloaded from hlayiso.com Downloaded from Stanmorephysics.com KWAZULU-NATAL PROVINCE EDUCATION REPUBLIC OF SOUTH AFRICA NATIONAL SENIOR CERTIFICATE GRADE 10 IMARKS: 200 MARKING PRINCIPLES: Penalties for foreign items are applied only.if:the candidate is not losing marks elsewhere in the question for that item (no penalty for misplaced item). No double penalty applied. Full marks for correct answer. If answer incorrect, mark the workings provided. If a pre-adjustment figure is shown as a final figure, allocate the part-mark for the working for that figure (not the method mark for the answer).Note if figures stipulated in memo for components of workings, these do not carry the method. mark for the final answer as well. Unless otherwise indicated, the positive or negative effect of any figure must be considered to award the mark. If no + or — sign or bracket is provided, assume that the figure is positive. Where indicated, part-marks may be awarded to differentiate between differing qualities of answers from candidates. Where method marks are awarded for operation, the marker must inspect answer and at least one part must be correct, before awarding the mark. Operation means ‘Check operation’. ‘One part correct’ means ‘Operation & Note: Check operation means must be +,-, x, or + per memo, but some items can be + or — $ Be aware of candidates who provide valid alternatives beyond the marking guid . In awarding method marks, ensure that learners do not get full marks for any item that is incorrect at least in part. Indicate, witha. N.B. This marking guideline consists of 7 pages. Please Turn Over

Downloaded from hlayiso.com Accountingiandnilvaded from Stanmorephysics. CoM June 2023 Common Test arking eline NSC QUESTION 1 1.1.1 Ntshondwe Traders have the telephone numbers of all their debtors. What other 1.1.2 information should they obtain before allowing customers to open accounts? State TWO points with a reason in EACH case. Information to be obtained viv Reasonvv vv Point 1 Salary advice slip / Proof of | To set credit limits for each possible debtor income To determine affordability To be able to trace debtors not adhering to credit terms and conditions Constant reminders of amount owed To ensure that statements are sent to correct : Proof of residence Point2 | ; address addresses OR Contact details of family /] To track the debtor if other information is friend incorrect / changes OR Bank statement / balance hae how the debtor is managing his - Ensure that correct personal details of OR Identity document customers are on record OR Credit references / To check that they will not sell to bad debtors Credit history To check credit worthiness OR Email address aselian communication of statements of 75 Calculate the correct closing balance of the Debtors’ Control Account on 30 June 2023. 324 400V +7 500V— 2 700VY V+ 1 500V = 330 700V Mone part correct 63 000 - 60 300 OR: T-account with figures on correct sides Debit (plus) Credit (minus) 324 400 2700 7 500 Balance c/d 330 700 1.500 7 Calculate the correct amounts owing by debtors. Calculations Balance 25 500 two marks * § Shangase (D1) 120 400v — 23 0502 450v 4 M94 900 K Buthelezi (D2) 75 000v_ 12 900v 3 “M162 100 T Mbhele (D3) 39 000” +7500 V8 100v” 5 *™138 400 N Mavuso (D4) 84 000 B Ntshangase (DS) eelihllemiaadla 7 pane . “7151 300 Total ¥ 1330 700 *One part derrect for method mark | | 19 | Total Marks | 32 | Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accountingiandnilvaded from Stanmorephysics. CoM June 2023 Common Test QUESTION 2 2.1.1 Answer 4 2 100 000%—1 250 000Y @” M850 000 2.1.2 (i) Answer 1 370 000V — 680 000VY @” M690 000 4 (ii) Answer See (i) above 690 000M — 400 000Y @v M290 000 4 (iii) Answer NEW: 680 000Y x 20/100Y x 6/12” @v M68 000 OLD: See (i) above 690 000M x 20/100V M138 000 10 68 000(5 Marks) + 138 O00 (4 Marks) M206 000 (iv) Answer See (iii) above 400 000v + 206 000M @v 606 000 z 2.1.3 (i) Answer No Workings ¥¥ 200 000 2 Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accountingiandihyaded from Stanmorephysics.com June 2023 Common Test NSC (ii) Answer 2 Marks 200 000V — 85 000 = 115 000 x 15/100” @v 17 250 (iii) Answer -102 250 One Mark, One M/Mark 200 000¥ — (85 000 + 17 250M) @v 197 750 2.1.4 See 2.1.2 (iii) See 2.1.3 (ii) 206 000VM + 17 250VvM1 Answer 223 250eM 2.2.1 Consider the information provided on 30 June 2023. Identify ONE problem per taxi. Quote figures to support your opinion. Give ONE point of advice in each case. Problem with ae High running cost R 7,50 Advice Advice Buy new vehicle Swap the cars and give it to Sgwebo NMG 2468) Vehicle too old exceeded 10 Ntoko years life span Possibility that driver Thabo is Supervise / monitor the driver closely NMG 5678} stealing cash R180 000 cashed. | Appoint drivers assistant Thabo Less than other drivers Ensure that drivers deposit cash within 24 hours NMG 9876] Sgwebo is a lazy driver only Swap the cars andigive it to Ntoko Sgwebo | 44 000 kms travelled Pay drivers in a form) of commission/as per‘work done/monies deposited Copyright Reserved | Total Marks | 52 | Please Turn Over

Downloaded from hlayiso.com Accountinginodailyaded from Stanmorephys h 'SICS.COM June 2023 Common Test NSC QUESTION 3 GENERAL LEDGER OF JIT STORES ON 28 FEBRUARY 2023 3.1. TRADING ACCOUNT 2023 2023 SalesY Feb _|28 |Cost of Salegv= ¥2 130000 |Feb [28 |(4 550 000v- 45 000v) M4 505 000 Profit and Less% ¥ M2 375 000 4505 000 4505 000 For method marks operation one part correct 9 3.2. PROFIT AND LOSS ACCOUNT 2023 2023 M2 375 000 Feb |28 |Salaries and Wages ¥1402000 |Feb [28 |TradingAccounty | Rent Income Insurance ¥ 38 000 (423 500v+ 38 500V v) M462 000 Bad Debts Recovered Repairs ¥ 26 000 (7 800v +3 200) M11 000 Interest on Fixed on Deposit Telephone ¥18 400 (40 000V +5 600Vv) M45 600 Interest on Overdraft (5 900V + 4 500v) M10 400 Rates(27 000v—9 600”) M17 400 Stationery (22 400v- 2 800v) M19 600 Bank Charges (14 000 +2 000v v) M116 000 Bad Debts (9 600V + 14 400) M24 000 Interest on Loan (80 000v +10 000v v) M90 000 Depreciation (24 000V +270 000 ) M294 000 Water and Electricity (30 000“+ 9 200”) M39 200 Loss due to fire (40 000 x 40%) 3 marks (40 000v — 24 000v'v) M16 000 Stock deficit (359 000v — 312 000v’) M47 000 Capital Accounty wv 835 600 2 893 600 2 893 600 | 53 Copyright Reserved | Total Marks [62 | Please Turn Over

Accountingiandnilvaded from Stanmorephysics. CoM June 2023 Common Test Downloaded from hlayiso.com arking eline NSC QUESTION 4 41 WORKINGS ANSWER 4.1.1 480 000v/12v 40 000vM 4.1.2 No Workings 2025vv 4.13 52 000v/576 000v x 100 9% 4.1.4 No Workings vv8 years 12 ‘One part correct 4.2.1 WAGES JOURNAL OF CJB TRADERS ON 30 JUNE 2023 Employee Basic Wages (Normal Time) Overtime Gross Hours | Rate Amount Hours Rate Amount _ | Wages M . Mbambo 40v | 240v 9 600M 15 480vv 7 200M | 16 800M C. Ronaldo 35v | 340v 11 900M 15 680vv | 10 200M | 22100M 14 Employee Deductions Net PAYE Pension | Medical Aid | UIF Total Wages Fund Scheme M. Mbambo 4 368v 768v 1 150v 168v | 6 454M | 10 346M C. Ronaldo 6 851v 952v 1 790v 221v | 9814M | 12 286M 12 Employee Employers Contributions Total Pension | Medical Aid | UIF Fund Scheme M. Mbambo 1 008vM 2 875vM) 168 M4 051 C. Ronaldo 1 428vM 4 476vM) 221 M6 124 10 Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Accountingiandihyaded from Stanmorephysics.com June 2023 Common Test arking eline NSC 4.2.2. | Explain One point to the owner Stan Mazibuko against retrenching an eae - Retrenching an employee will cause more unemployment - ThiS-will reduce production level of the business - This may create negative image of the business Points for 1 Marks - Unemployment - Productivity - Negative image What measures can the business implement to prevent huge amount of overtime. a Two Points - Increase supervision of workers during breaks and lunch times - Buy generators / install solar system - Use power cuts to train workers - Set daily production targets for each employee 4 Points for 1 Marks - Supervision - Generators / Solar - Daily targets | Total Marks | 54 | TOTAL MARKS: 200 Copyright Reserved