Accounting Grade 11 March Test 2023 Paper & Memo

Downloaded from hlayiso.com Downloaded from Stanmorephysics.com = LIMPOPO PROVINCIAL GOVERNMENT REPUBLIC OF SOUTH AFRICA DEPARTMENT OF EDUCATION ACCOUNTING TERM 1 CONTROLLED TEST 1 17 MARCH 2023 MARKS: 100 TIME: 90 minutes This question paper consists of 8 pages

Downloaded from hlayiso.com Downloaded from Stanmorephysics.com INSTRUCTIONS AND INFORMATION: 1. Answer ALL the questions. 2. Answer ALL questions in the ANSWER BOOK provided. 3. Sow ALL workings in order to earn possible part marks. 4, You may use a non-programmable calculator. Bs ‘You may use a dark pencil or blue / black pen to answer the questions. 6. Where applicable, show all calculations to ONE decimal point. its Write neatly and legibly. 8. Use the information in the table as a guide when answering the question paper. Try not to deviate from it. QUESTION: 1 20 marks; 18 minutes TOPIC THIS INTEGRATES Bank Reconciliation Concepts Bank account and the Cash Journals Bank reconciliation statement QUESTION: 2 20 marks; 18 minutes TOPIC THIS INTEGRATES Creditors Reconciliation Concepts and internal control Creditors Ledger Creditors Reconciliation Statement QUESTION: 3 40 marks; 36 minutes TOPIC THIS INTEGRATES Fixed Assets GAAP Concepts Fixed Asset General Ledger Accounts Fixed Asset — Note 3 QUESTION: 4 20 marks; 18 minutes TOPIC THIS INTEGRATES Partnerships Current Account Appropriation Account

Downloaded from hlayiso.com Downloaded from Stanmorephysics.com QUESTION1 BANK RECONCILIATION 20 marks; 18 minutes You are provided with information relating to Rover Jewelers. REQUIRED: 1.1 Give one reason why it is important for a business to prepare a Bank Reconciliation Statement each month. 1.2 Calculate=the correct totals for the Cash Receipts Journal and the Cash PaymentsJournal for May 2023. 1.3 Calculatejthe Bank balance on 31 May 2023. 1.4 Prepare the Bank Reconciliation Statement on 31 May 2023. INFORMATION: 1. At the end of the previous month, 30 April 2023, the following items were reflected in the Bank Reconciliation Statement: e Favourable balance in the Ledger, R6 325. e Favourable balance on the Bank Statement, R12 545. e Outstanding deposit (dated 30 April 2023), R12 000. e Outstanding EFT: 519, R8 920, EFT: 543, R4 300. NOTE: EFT no. 519 did not appear on the May Bank Statement. 2. On 31 May 2023, the provisional totals in the journals were: e Cash Receipts Journal — R70 600 e Cash Payments Journal — R105 320 3. The following items were reflected on the Bank Statement but not in the journals for May 2023: e Direct deposit by a tenant, K Kwela, R7 400. Bank charges, R520. Interest on a fixed deposit for May, R700. Interest on overdraft for May, R810. personal insurance. 4. The following differences were noticed: e EFT no. 565 for repairs recorded in the CPJ as R1 570, but as R1 750 on the Bank Statement. The bank statement is correct. e A deposit of R12 000 appeared on the Bank Statement on 1 May 2023 but did not appear in the CRJ of May. e A deposit of R20 295, dated 20 May 2023, appeared in the CRJ for May, but not on the Bank Statement for May. e The following EFT Payments appeared in the CP2 of May, but not on the Bank statement: No. 654, R2 800 No. 674, R2 520 Stop order in favour of Rama for insurance, R6 860. R5 500 for the business insurance and the remaining for the owner's 5. The bank statement shows an overdrawn balance of R34-72@0n 31 ae 2023.

Downloaded from hlayiso.com wuesmewed FrocREMRORDRECONGENAATEON 20 marks; 18 minutes The following Creditors Ledger account of ROLEX Dealers was extracted from the records of KWEZI STORES. When the bookkeeper of Kwezi Stores compared the statement of ROLEX Dealers, he discovered that there were some errors and omissions. REQUIRED: 2.1 Correctithe errors made in the account of ROLEX Dealers in the Creditors Ledgemof|Kwezi Stores. (7) 2.2 Prepare-the Creditors Reconciliation Statement on 31 March 2020. (7) 2.3 Name THREE (3) internal control measures for Creditors. (6) INFORMATION: Creditors Ledger of Kwezi Stores ROLEX Dealers Date Details Fol. Debit Credit Balance 2020 Mar | 1 | Account rendered b/d 15 240 3 | Invoice no. 411 CJ 6779 5 | Debit note no. 194 CAJ 450 11 | EFT no. 7891 cP 2 250 EFT no. 7891 (discount) | CPJ 250 24 | Invoice no. 478 CJ 2 128 25 | Invoice no. 12268 CJ 490 31 | EFT no. 7929 CPJ 3 500 18 187 Creditors Reconciliation Statement of Rolex Dealer on 29 February 2020 Debit Credit Balance according to statement 8910 Credit purchases after 26 February 2020 6 540 Debit discount omitted 210 Balance according to Creditors Ledger 15 240 15 450 15 450

Downloaded from hlayiso.com Downloaded from Stanmorephysics.com STATEMENT Rolex Dealers Island Road 3 PAARL 7646 Accou Kwezi Stores Account no. 22356 Church-road 23 Date: 29 March 2020 Wellington Date Transaction Debit Credit 2020 Feb 27 | Balance 8910 29 | Invoice no. 332 6 540 March | 1 Discount omitted in February 210 3 Invoice no. 411 6779 5 __| Credit note no. 112 50 11 | Receipt no. 207 2 250 24 | Invoice no. 478 1 228 28 | Interest on overdue account 97 Balance due R21 044 The bookkeeper of Kwezi Stores and Rolex Dealers made the following errors and omissions: e Rolex Dealers incorrectly recorded credit note no. 112 as R50 instead of R450. e Rolex Dealers did not record the discount allowed on 11 March 2020. e Invoice no. 478 on 24 March 2020 was recorded as R2 128, instead of R1 228. e Invoice no. 12268 on 25 March 2020 was for stationery purchased from Rolex Wholesalers and not from Rolex Dealers. e Rolex Dealers charged the account of Kwezi Stores with R97 interest. e The account was sent to Kwezi Stores on 29 March 2020.

Downloaded from hlayiso.com Rwesiened from Stannrmepksséts.com 40 marks; 36 minutes 3.1 Choose the concepts in Column B that best suits the description in column A. Write only the letter next to the number on the answer sheet. E.g. 3.1.1 B (7) No /|ColumnA Column B 3.1.1 | Afixed amount of depreciation is written offevery | A_ | Historical Cost Principle year omfixed assets. 3.1.2 | A separate record is kept of every asset in the | B | Depreciation on the business: diminished balance 3.1.3 | In the note for Fixed Assets, the original cost} C | Depreciation price is shown. 3.1.4 | The disposed asset will be indicated at this value | D | Depreciation on the cost in the accounting records. price 3.1.5 | The value the asset lost during the financial year. Fixed asset register 3.1.6 | When an asset is of no use for the business. Carrying Value 3.1.7 | When the accumulated depreciation is deducted Asset disposal from the cost price of an asset before calculating depreciation for the current financial year. H_ | Business entity principle 3.2 The following information relates to Limpopo Stores. Their financial year ends on 28 February 2023. REQUIRED: 3.2.1 3.2.2 3.2.3 3.2.4 Use information A to complete the following accounts in the General Ledger of Limpopo Stores for the period 1 March 2022 to 28 February 2023. a. Vehicles b. Accumulated depreciation on vehicles c. Asset disposal Use the information B, regarding Equipment, to complete the fixed asset note for Equipment. State three (3) internal control measures, to ensure better-coftrol over the business’ fixed assets. Give two possible reasons for selling a computer or equipment. (2)

Downloaded from hlayiso.com Mevrdoadoedafrom Stanmorephysics.com 1. The following information was obtained at the end of the previous financial year. 28 February 2023 | 28 February 2022 Vehicles R 640 000 R 890 000 Accumulated Depreciation on ve R 350 000 Vehicles 2. Depreciation on vehicles is calculated at 15% per annum on the straight-line method (fixed instalment). 3. On 30 October 2022 an old vehicle was sold for R310 000 cash. The cost price of the vehicle was R420 000 and the accumulated depreciation on 28 February 2022 on this vehicle amounted to R35 500. 4. On 1 February 2023 Limpopo Sores purchased a new vehicle on credit. (Calculate the cost price) INFORMATION B: You are provided with information for EQUIPMENT relating to Limpopo Stores. Complete the fixed asset note by considering the following information e Equipment was sold at carrying value on the last day of the financial period. e The total depreciation on the sold equipment was R85 000. e No equipment was purchased during the year. e Calculate the missing figures —- Number A — D.

Downloaded from hlayiso.com uesinewed From StanmarewERSHies com 20 marks; 18 minutes The following information appeared in the books of McGregor Stores (with partners Saaiman and Drikus) on 30 June 2023, the end of their financial year. REQUIRED: Complete thefallowing ledger accounts in the General Ledger. 4.1 Gurent Account: Saaiman (12) 4.2 Appropriation Account (8) INFORMATION: A. Balances on 30 June 2023 (unless otherwise indicated) Capital : Drikus R250 000 Capital : Saaiman R150 000 Drawings : Drikus R26 425 Drawings : Saaiman R14 400 Current account :Drikus (1 July 2022) R22 360 (Cr) Current account : Saaiman (1 July 2022) R32 100 (Dr) B. The Profit and Loss Account reflected the net profit of R 420 500 after taking all the adjustments into account. C. Transactions relating to partners to be reflected in the partners’ accounts only: The partnership agreement provided for the following salary allowances: Drikus: R 6 500 per month Saaiman: R125 000 per annum Interest on capital is calculated at 12% on the capital balances. On 1 December 2022 Drikus increased her capital by R100 000 and Saaiman decreased his capital by R30 000. These changes were recorded. Saaiman is entitled to a bonus of R25 600. Saaiman took goods from stock for his personal use. The selling price of the goods was R 14 520 and the cost of sales, R 6 500. This transaction was not yet recorded. The remaining profit or loss is shared in the ratio of the partners’ capital balances at the end of the financial year. TOTAL: 100 MARKS

Downloaded from hlayiso.com Downloaded from. ganmoreph sics.com ee L POPO PROVINCIAL GOVERNMENT REPUBLIC OF SOUTH AFRICA —SE DEPARTMENT OF EDUCATION ACCOUNTING 17 March 2023 TERM 1 CONTROLLED TEST 1 ANSWER BOOK NAME & SURNAME QUESTION MAXIMUM MARKS 1 20 2 20 3 40 4 20 me TOTAL 100 P (aYaYey MARKS: 100 IME: 90 minutes This answer book consists of 9 pages a

Downloaded from hlayiso.com Boxretionded from Stanmorephysics.com 1.1 | Give a reason why it is important for a business to prepare a Bank Reconciliation Statement each month. 1 1.2 CASH RECEIPTS BANK CASH PAYMENT BANK JOURNAL JOURNAL Provisional total 70 600 Provisional total 105 320 9 1.3 | Calculate the bank balance.

Downloaded from hlayiso.com Downloaded from Stanmorephysics.com 1.4 BANK RECONCILIATION STATEMENT ON 31 MAY 2023. Debit Credit i land co TOTAL MARKS 20

Downloaded from hlayiso.com BHowstlonded from Stanmorephysics.com 2.1 Creditors Ledger of Kwezi Stores Rolex Dealers Date Details Fol Debit Credit Balance Mar] 1 | Balance b/d 2.2 Creditors Reconciliation Statement of Rolex Dealers on 31 March 2020 Debit Credit Balance according to statement Balance according to Creditors Ledger 2.3 | Name THREE (3) internal control measures for Creditors TOTAL MARKS 20

Downloaded from hlayiso.com Downloaded from Stanmorephysics.com QUESTION 3 3.1 ANSWER 3.1.1 3.1.2 3.1.3 3.1.4 3.1.5 3.1.6 3.1.7 7 3.2.1 GENERAL LEDGER OF LIMPOPO STORES VEHICLES Date Details Fol Amount Date Details Fol Amount 2022 March | 1 | Balance B/d | 890 000 4 ACCUMULATED DEPRECIATION ON VEHICLES Date Details Fol | Amount Date Details Fol | Amount wu

Downloaded from hlayiso.com Downloaded Trom STangsseamssocnicom Date Details Fol | Amount Date Details Fol Amount 3.2.2 NOTE 3: FIXED ASSET NOTE 5 EQUIPMENT Carry value at the end of the previous year A. Cost Price 382 800 Accumulated Depreciation (146 800) MOVEMENTS Additions at cost 0 Disposal at carrying value B. Depreciation Cc. Carrying value at the end of the current year D. Cost Price 172 800 Accumulated Depreciation (83 000) CALCULATIONS: 3.2.2) A 1 B 3 c 3 D 1

Downloaded from hlayiso.com Downloaded from Stanmorephysics.com 3.2.3 | State three (3) internal control measures, to ensure better control over the business’ fixed assets. 3.2.4 | Give two possible reasons for selling a computer or equipment. TOTAL MARKS 40

Boretionded from Stanmorephysics.com Downloaded from hlayiso.com 41 DR CURRENT ACCOUNT: SAAIMAN CR Date Details Fol | Amount Date Details Fol Amount 12 4.2 DR APPROPRIATION ACCOUNT CR Date Details Fol | Amount Date Details Fol | Amount 8 TOTAL MARKS 20

Downloaded from hlayiso.com Downloaded from Stanmorephysics.com LIMPOPO PROVINCIAL GOVERNMENT REPUBLIC OF SOUTH AFRICA DEPARTMENT OF EDUCATION ACCOUNTING ‘ 17 March 2023 TERM 1 CONTROLLED TEST 1 MARKING GUIDELINES ’ MARKS: 100 TIME: 90 minutes This marking guidelines consists of 8 pages

Downloaded from hlayiso.com Qoretionded from Stanmorephysics.com 1.1 | Give one reason why it is important for a business to prepare a Bank Reconciliation Statement each month. e Improves internal control — minimize fraud or error because records are checked to an external source. ¢ To compare the books of the business with that of the bank in order to detect errors and/or dishonesty at an early stage « jpfo-reconcile the bank statement balance with the bank account balance | 1 ~~ tes CASH RECEIPTS BANK CASH PAYMENT BANK JOURNAL JOURNAL Provisional total 70 600 Provisional total 105 320 K Kwela 7 400Y Bank charges 520” Interest on F/D 700¥ Interest on O/D 810v Insurance 5 500v Drawings 1 360v Repairs 180¥ 78 700M 113 6904 9 1.3 | Calculate the bank balance. 6 325v +78 700M -— 113 690! = 28 6654 4 1.4 | BANK RECONCILIATION STATEMENT AS AT 31 May 2023 Debit Credit Balance as per bank statement 34 720V Credit outstanding deposits 20 295v Debit outstanding EFT/payment: 8 920V 2 800¥ 2 520V¥ Balance as per bank account 28 665Y¥ 48 960 =-48 960 6 TOTAL MARKS 20

Downloaded from hlayiso.com Downloaded from Stanmorephysics.com QUESTION 2 2.1 Creditors Ledger of Kwezi Stores Rolex Dealers Date Details Fol Debit Credit Balance Mar] 1 | Balance b/d 18 187 v Incorrect invoice 478 900¥ 17 287M Incorrect invoice 12268 490v 16 797M Interest on overdue account 97v 16 894M) 2.2 Creditors Reconciliation Statement of Rolex Dealers on 31 March 2020 Debit Credit Balance according to statement 21 044v Credit note incorrect nr 112 400Vv¥ Discount not entered 250¥ Payment after 29 March 3 500V¥ Balance according to Creditors Ledger 16 894M) 21 044M 21 044 2.3. | Name THREE (3) internal control measures for Creditors Prices charged and the accuracy of invoices from creditors should be checked. The quantities of goods received should be checked against the invoices from creditors. All available discounts should be taken. Invoices must be properly processed before payment, There must be separation of duties. The internal control process for creditors should ensure that credit invoices received from creditors match the good received and are recorded accurately. Monthly reconciliation should be done. The following are a few procedures that should be adhered to: Creditors should be paid as late as possible without incurringlinterest charges. (Any THREE Vv¥ Vv vv _ ) TOTAL MARKS 20

Downloaded from hlayiso.com Downloaded from Stanmorephysics.com QUESTION 3 3.1 ANSWER 3.1.1 Dv Depreciation: Cost price method 3.1.2 Bay Fixed asset register 3.1.3 AM Historical Cost Principle 3.1.4 a na Carrying Value 3.1.5 Cv Depreciation 3.1.6 Gv Asset disposal 3.1.7 By Depreciation on the diminished balance 7 3.2.1 GENERAL LEDGER OF LIMPOPO STORES VEHICLES Date Details Fol Amount Date Details Fol Amount 2022 2022 March | 1 | Balance B/d | 890 000 Oct | 30 | Asset disposalY | GJ | 420 000V 2023 Creditors Feb 1 | Control v CJ | 170 000VY Balance c/d | 640 000 1 060 000 1 060 000 2023 | March | 1 | Balance b/d | 640000 al

Downloaded from hlayiso.com Downloaded from Stanmorephysics.com ACCUMULATED DEPRECIATION ON VEHICLES Date Details Fol Amount Date Details Fol Amount 2022 Asset 2022 Oct | 30 | Disposalv GJ | 77 500M | March | 1 | Balance b/d | 350 000v Depreciation GJ | 114 og M Old: 70500+¥ "| Sold: 42 000+” ra New: 2 125¥ i Balance c/d | 387 125 464 625 464 625 rr] 2023 | March | 1 | Balance b/d | 387 125 8 ASSET DISPOSAL Date Details Fol Amount Date Details Fol Amount Accumulated 2022 2022 Depreciation on Get '|4a)| Shiels GJ | 420000” | Oct | 30) Vehiclesv GJ | 77 500” Bank CRJ | 310 000Y Loss on asset disposal v GJ | 325004 420 000 420 000

Downloaded from Stanmorephysics.com Downloaded from hlayiso.com 3.2.2 NOTE 3: FIXED ASSET NOTE EQUIPMENT Carry value at the end of the previous year A. 236 000 Cost Price 382 800 Accumulated Depreciation (146 800) MOVEMENTS Additions at cost 0 Disposal at carrying value B. (125 000) Depreciation C. (21 200) Carrying value at the end of the current year D. 89 800 Cost Price 172 800 Accumulated Depreciation (83 000) CALCULATIONS: 3.2.2 A CP - Acc depr = CV 382 800 — 146 800 = 236 000 v B Asset disposal CP — acc depr = CV 210 000v — 85 000Y = 125 000Y c Acc depr at the beginning + depr — Asset disposal = Acc depr at the end 146800 + _21200 v- 85000v = 83000v D CP - Acc depr = CV 172 800 — 83 000 = 89 800 v

Downloaded from hlayiso.com Downloaded from Stanmorephysics.com State three (3) internal control measures, to ensure better control over 3.2.3 | the business’ fixed assets. Non-current assets must physically safeguarded against theft Proper authorisation must be obtained for purchasing a new asset. All assets must be recorded and maintained in the asset register. All the asset registers must be regularly monitored by doing a physical Stocktaking. Lost, stolen, or damaged stock must be reported immediately. ‘A depreciation policy must be established and implemented. Any change in respect of non-current assets must immediately be recorded in the relevant subsidiary journals. vvVVv 3 3.2.4 | Give two possible reasons for selling a computer or equipment. e This asset is old e The asset is outdated/obsolete e There is no longer any use for it v v P TOTAL MARKS 40

Downloaded from hlayiso.com Boxretionded from Stanmorephysics.com 41 DR CURRENT ACCOUNT: SAAIMAN CR Date Details Fol | Amount Date Details Fol Amount 2023 2023 June |1 | Balance b/d | 32 100” June | 30 | Salary v 125 000v Interest on Capital Drawings 180 00 x 12/100 x 5/12 (9.000 + 10 500) 150 000 x 12/100 x 14 400 + 6 500 20 900V4 m2 19 500vv 4 BonusY¥ 25 600Y Appropriation Account 55 275M Balance cfd | 172 375 | 2023 July | 1 ie ee b/d | 1723754 4.2 DR APPROPRIATION ACCOUNT CR Date Details Fol | Amount Date Details Fol | Amount Salary: Drikus 125 000V Profit and Loss 420 500Y Salary: Saaiman 78 000V Interest on Capital (S:.25 000 + P: 19 500) 44 500vv Bonus: Saaiman 25 600V Current Account: Drikus 92125 M Account: Saaiman 55 275M as ——— 420 500 420 500 TOTAL MARKS 20