The document provides instructions and information for candidates taking the Grade 11 November 2013 Accounting exam. It outlines the six compulsory questions on the paper, allocating marks and time for each. Question 1 deals with reconciliations, Question 2 with partnerships and financial statements, Question 3 with cash budgets, Question 4 with non-profit organizations, Question 5 with cost accounting, and Question 6 with VAT and inventory. Details of the requirements and information provided for each question are also included.
PRESENTATION USED FOR PGPSE PARTICIPANTS OF AFTERSCHOOOL. JOIN AFTERSCHOOOL - IT IS THE BEST WAY TO BECOME AN ENTREPRENEUR AND WORK FOR SOCIAL DEVELOPMENT
PRESENTATION USED FOR PGPSE PARTICIPANTS OF AFTERSCHOOOL. JOIN AFTERSCHOOOL - IT IS THE BEST WAY TO BECOME AN ENTREPRENEUR AND WORK FOR SOCIAL DEVELOPMENT
This book is a practical guide for Tax Professionals to assist them in their day-to-day tax works. The present publication is the 6th Edition which incorporates all the changes made by the Finance Act, 2020 & other Amendment Acts.
Key features of this book are as follows:
• Law relating to Tax Procedure has been explained lucidly and
in a practical manner with check-lists, necessary tips, etc.
• All-important Courts Decisions have been covered
• Every aspect of the tax practice has been explained
elaborately
• 330+ case-studies are given to deal with practical tax
problems faced by the tax professionals
• Complete guide to draft deeds and documents such as:
○ Affidavits
○ Wills
○ Special Business Agreements
○ Family Arrangements
○ Power of Attorney
○ Lease
○ Indemnity
○ Guarantee
○ Charitable Trust Deeds
Startup4Chinese #14: Hate financial trouble? Guidelines for non-finance backg...Ke Zheng
Startup4Chinese: Inspire, empower and connect entrepreneur minds.
Find out more at http://Startup4Chinese.com.
And our meetup group: http://meetup.com/Startup-4-Chinese-GTA/.
The video of this presentation:
part 1- https://www.youtube.com/watch?v=AFLaARQ6ktk
part 2 - https://www.youtube.com/watch?v=o_SM4n89f6M
Companies a lot of times fail because they overlooked the basics of running a business. Startups, too, often fail to execute the basics and create pitfalls later on.
Accounting is your business doctor - it tracks how your business’s been doing lately, finds out root causes and plans a path for you to get well. No companies can grow and be viable in the long run without proper accounting management. It reveals everything from sales - such as customer adoption rate, operations - such as operating inefficiencies, to strategic issues - such as positioning and branding.
This presentation will touch important accounting basics and classic business failure cases studies. It’ll also give out useful tips for business owners.
很多时候公司的失败是由于未做到管理生意的基本面而造成的。未作这些基本点的初创公司在创业初期不会感觉到有什么问题,但是没多久就会造成事后的悲催。
财务是你生意上的医生 —— 它统计着你生意的近况,诊断出问题的根源并且设计出一条改善你“健康”的道路。现今没有任何公司可以不使用现代财务管理工具而可以长期健康的生长。财务工具能帮你扯去公司运营表面现象的面纱,暴露一切问题:从销售的客户获取率,运营的效率,到战略上的问题比如定位和品牌。
这次的交流内容会涉及财务基础(针对非财务专业),现实生活中经典的公司案例(北美地区公司案例),然后会给初创公司的创业者们有用的tips.
Speaker: Jason Lu
Experience:
10+ years experience in business development (North America and the Asia Pacific), project valuation & acquisition, product costing, corporate finance consulting. Currently working as a consultant to help turnaround medium-sized and small businesses.
经验:
10多年经验——北美和亚太地区业务拓展(曾拓展超出两亿美金的年销售额),项目估值和并购(超过2,000万美金价值的项目并购),财务成本,公司财务顾问。目前作为顾问帮助挽转GTA地区的中小公司。
Education:
MBA 14’ – Schulich School of Business, York University
Chartered Professional Accountant (CPA): 2016 – present
B.Eng. - Hefei University of Technology, China
教育背景:
MBA 14’ – Schulich School of Business, York University
Chartered Professional Accountant (CPA): 2016 – present
B.Eng. – Hefei University of Technology, China
Marc Aisen, Organizer, Richmond Hill, NY, for the Petitioner. Learn more about Marc Aisen, Brotherhood Elec Workers including contact information, career history, news and intelligence.
This book is a practical guide for Tax Professionals to assist them in their day-to-day tax works. The present publication is the 6th Edition which incorporates all the changes made by the Finance Act, 2020 & other Amendment Acts.
Key features of this book are as follows:
• Law relating to Tax Procedure has been explained lucidly and
in a practical manner with check-lists, necessary tips, etc.
• All-important Courts Decisions have been covered
• Every aspect of the tax practice has been explained
elaborately
• 330+ case-studies are given to deal with practical tax
problems faced by the tax professionals
• Complete guide to draft deeds and documents such as:
○ Affidavits
○ Wills
○ Special Business Agreements
○ Family Arrangements
○ Power of Attorney
○ Lease
○ Indemnity
○ Guarantee
○ Charitable Trust Deeds
Startup4Chinese #14: Hate financial trouble? Guidelines for non-finance backg...Ke Zheng
Startup4Chinese: Inspire, empower and connect entrepreneur minds.
Find out more at http://Startup4Chinese.com.
And our meetup group: http://meetup.com/Startup-4-Chinese-GTA/.
The video of this presentation:
part 1- https://www.youtube.com/watch?v=AFLaARQ6ktk
part 2 - https://www.youtube.com/watch?v=o_SM4n89f6M
Companies a lot of times fail because they overlooked the basics of running a business. Startups, too, often fail to execute the basics and create pitfalls later on.
Accounting is your business doctor - it tracks how your business’s been doing lately, finds out root causes and plans a path for you to get well. No companies can grow and be viable in the long run without proper accounting management. It reveals everything from sales - such as customer adoption rate, operations - such as operating inefficiencies, to strategic issues - such as positioning and branding.
This presentation will touch important accounting basics and classic business failure cases studies. It’ll also give out useful tips for business owners.
很多时候公司的失败是由于未做到管理生意的基本面而造成的。未作这些基本点的初创公司在创业初期不会感觉到有什么问题,但是没多久就会造成事后的悲催。
财务是你生意上的医生 —— 它统计着你生意的近况,诊断出问题的根源并且设计出一条改善你“健康”的道路。现今没有任何公司可以不使用现代财务管理工具而可以长期健康的生长。财务工具能帮你扯去公司运营表面现象的面纱,暴露一切问题:从销售的客户获取率,运营的效率,到战略上的问题比如定位和品牌。
这次的交流内容会涉及财务基础(针对非财务专业),现实生活中经典的公司案例(北美地区公司案例),然后会给初创公司的创业者们有用的tips.
Speaker: Jason Lu
Experience:
10+ years experience in business development (North America and the Asia Pacific), project valuation & acquisition, product costing, corporate finance consulting. Currently working as a consultant to help turnaround medium-sized and small businesses.
经验:
10多年经验——北美和亚太地区业务拓展(曾拓展超出两亿美金的年销售额),项目估值和并购(超过2,000万美金价值的项目并购),财务成本,公司财务顾问。目前作为顾问帮助挽转GTA地区的中小公司。
Education:
MBA 14’ – Schulich School of Business, York University
Chartered Professional Accountant (CPA): 2016 – present
B.Eng. - Hefei University of Technology, China
教育背景:
MBA 14’ – Schulich School of Business, York University
Chartered Professional Accountant (CPA): 2016 – present
B.Eng. – Hefei University of Technology, China
Marc Aisen, Organizer, Richmond Hill, NY, for the Petitioner. Learn more about Marc Aisen, Brotherhood Elec Workers including contact information, career history, news and intelligence.
IPCC Advanced Acounting Paper | CA Classes in Mumbaiseomiamia
Mia Mia is a real time local search engine that enables people to search for a search provider anywhere with ease and convenience. Best CA classes in Mumbai are listed on MiaMia by some best companies on MiaMia. For details - visit: http://miamia.co.in/
Accounting 970642 paper 4 problem solving (supplementary topics) october nove...alproelearning
Accounting 970642 paper 4 problem solving (supplementary topics) october november 2013
Advanced Level
A Level
Zimsec
Cambridge
Alpro Learning Portal
Accounting
Accounts
Zimbabwe
Principle of accounts
EDWARD'S ELECTRICAL GOODS PTY LTD
– ACCOUNTING PRACTICE SET
(
2
)
Table of Contents
INTRODUCTION 5
CompanyBackground 5
AccountingSystemInformation 5
UNADJUSTED TRIAL BALANCE AND CHARTOFACCOUNTS 6
As at 31May2017 6
SUBSIDIARYLEDGERS 7
Schedule ofAccountsReceivable 7
As at 31May2017 7
Schedule ofAccountsPayable 7
As at 31May2017 7
TRANSACTIONS 8
ForJune2017 8
Instructions 9
ADJUSTINGENTRIES 10
CashReceiptsJournal 18
CashPaymentsJournal 19
SalesJournal 20
PurchasesJournal 21
LEDGERS 22
Accounts ReceivableSubsidiaryLedger 23
Accounts PayableSubsidiaryLedger 24
GeneralLedger 25
WORKSHEET 34
FINANCIAL STATEMENTS 36
Schedules ofSubsidiaryLedgers 36
IncomeStatement 37
Statement of ChangesinEquity 38
BalanceSheet 39
Post-closingTrialBalance 40
WRITTENCOMPONENT 41
STUDENT DECLARATION FOR COMPLETIONOFWORK 46
INTRODUCTION
TheobjectiveofthisAccountingpracticesetistoprovidestudentswithaninsightintotheprocessof recordingtransactions,completingadjustingandclosingentries,andpreparingfinancialstatements foraretailbusiness.Company Background
Edward's Electrical Goods has been in business in Sydney since July, 2011. The company was started by Edward Wright and operates a shop which sells electrical equipment on a retail basis to other businesses on credit and the public on cash terms. The company's share capital consists of 126,000 ordinary shares, issued at $1 each, that are owned by various members of the Wright family. The company employs a combination of sales and administration staff to operate the business.Accounting System Information & Procedures
The company has a financial year end of 30 June and prepares adjusting entries at the end of the financial year. To ensure efficiency of its accounting procedures, the company uses the following Special Journals to maintain its accounting records:
1. Sales Journal (SJ): to record all sales of inventory oncredit
2. PurchasesJournal(PJ):torecordallpurchasesofinventoryoncredit
3. Cash Receipts Journal (CRJ): to record all cashreceipts
4. Cash Payments Journal (CPJ): to record all cashpayments
5. GeneralJournal(GJ):torecordalltransactionsotherthantheabove.
Business transactions are recorded for Edward's Electrical Goods on a daily basis in one of these five journals in the accounts.
Additionally, the company maintains a general ledger to record postings from the journals. Subsidiary Ledgers are used to record the separate details of Accounts Receivable and Accounts Payable. Transactions are posted immediately to the relevant ledger account if they are entered into the general journal, the “other” column of the Cash Receipts Journal or Cash Payments Journal, or if they affect any of the Accounts Receivable or Accounts Payable subsidiary ledger accounts. Apart from these transactions, totals of the special journals are taken at the end of the month and then posted to the appropriate accounts. The company uses a periodic inventorysystem.
In practice, the company w ...
SOS Please please please help on this problem!!!!!!!!!!!!!!!!!!!!!! .pdfFOREVERPRODUCTCHD
SOS Please please please help on this problem!!!!!!!!!!!!!!!!!!!!!! :) Closing Entries and the
Postclosing Trial Balance 192 CHAPTER 6 Mini-Practice Set 1 Service Business Accounting
Cycle Eli\'s Consulting Services ing principles and This project will give you an opportunity to
apply your knowledge of accounting principles and procedures by handling all the accounting
work of Eli\'s Consulting Services for the month o January 2020. Assume that you are the chief
accountant for Eli\'s Consulting Services, During January, the busi ness will use the same types
of records and procedures that you learned about in Chapters 1 through 6. The chart of accounts
for Eli\'s Consulting Services has been expanded to include a few new accounts. Follow the
instructions to complete the accounting records for the month of January. INTRODUCTION
Eli\'s Consulting Services Chart of Accounts Revenue 401 Fees Income Assets 101 Cash 111
Accounts Receivable 121 Supplies 134 Prepaid Insurance 137 Prepaid Rent 141 Equipment 142
Accumulated Depreciation Equipment Liabilities 202 Accounts Payable Expenses 511 Salaries
Expense 514 Utilities Expense 517 Supplies Expense 520 Rent Expense 523 Depreciation
Expense-Equipment 526 Advertising Expense 529 Maintenance Expense 532 Telephone
Expense 535 Insurance Expense Owner\'s Equity 301 Trayton Eli, Capital 302 Trayton Eli,
Drawing 309 Income Summary INSTRUCTIONS 1. Open the general ledger accounts and enter
the balances for January 1, 2020. Obtain the necessary figures from the postclosing trial balance
prepared on December 31, 2019, which appears in Figure 6.3. 2. Analyze each transaction and
record it in the general journal. Use page 3 to begin January\'s transactions. 3. Post the
transactions to the general ledger accounts. 4. Prepare the Trial Balance section of the worksheet.
5. Prepare the Adjustments section of the worksheet. a. Compute and record the adjustment for
supplies used during the month. An inventory taken on January 31 showed supplies of $5,200 on
hand. b. Compute and record the adjustment for expired insurance for the month. c. Record the
adjustment for one month of expired rent of $4,000. d. Record the adjustment for depreciation of
$183 on the old equipment for the month. The first adjustment for depreciation for the new
equipment will be recorded in February, 6. Complete the worksheet. 7. Prepare an income
statement for the month. 8. Prepare a statement of owner\'s equity.
Solution
Journal Entries
Date
Account Title
Debit
Credit
2-Jan
Supplies
7000
Cash
7000
7-Jan
Cash
20000
Accounts receivable
5000
Fees Income
25000
2-Jan
Insurance expense
8400
Cash
8400
12-Jan
Cash
4000
Accounts receivable
4000
Advertising expense
3600
Cash
3600
Cash
20700
Accounts receivable
2300
Fees Income
23000
13-Jan
Cash
4500
Accounts receivable
4500
14-Jan
Cash
750
Supplies
750
20-Jan
Supplies
5000
Accounts Payable
5000
20-Jan
Cash
12500
Accounts receivable
3500
Fees Income
16000
20-Jan
Cash
5600
Accounts receivable
5600
21-Jan
Ma.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
How to Create Map Views in the Odoo 17 ERPCeline George
The map views are useful for providing a geographical representation of data. They allow users to visualize and analyze the data in a more intuitive manner.
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
2. 2 ACCOUNTING (NOVEMBER 2013)
INSTRUCTIONS AND INFORMATION
1. This question paper comprises SIX compulsory questions.
2. Answer ALL the questions in the answer book provided.
3. Where applicable, workings must be shown in order to achieve part-marks.
4. Non-programmable calculators may be used.
5. You may use a dark pencil or black/blue ink to answer the questions.
6. A breakdown of the questions is provided below. You must attempt to comply
with the suggested time allocation for each question. To exercise good time
management, try NOT to deviate from it.
QUESTION TOPIC SECTION/CONTENT MARKS TIME
(minutes)
1 Reconciliations
Financial Accounting
Bank reconciliation statement
Analyses and interpretation
Managing Resources
Internal controls
50 30
2 Partnerships
Financial Accounting
Financial Statements
Analyses and interpretation
Managing Resources
Fixed Asset Management
100 60
3 Budgeting
Managerial Accounting
Cash budget – preparation and analysis
Managing Resources
Internal controls mechanisms
40 24
4
Non-Profit
Organisations
(Clubs)
Financial Accounting
General Ledger accounts
Receipts and payments / Income and
expenses
30 18
5 Cost Accounting
Managerial Accounting
Cost Concepts
Calculations – cost and breakeven
General Ledger accounts
35 21
6
VAT and
Inventory
Financial Accounting
VAT concepts and calculations
Managing Resources
Ethical issues (VAT)
Inventory systems
45 27
3. (NOVEMBER 2013) ACCOUNTING 3
QUESTION 1
RECONCILIATIONS (50 marks; 30 minutes)
1.1 Bank Reconciliation
The information presented below was taken from the books of Blitz Traders. They
relate to the cash/bank transactions for the month of March 2013.
REQUIRED:
1.1.1 The manager noticed that R5 000 of the outstanding deposits did not
appear on the March statement. After investigating this, he discovered
that this was money received for cash sales, on 12 February 2013, and
was not deposited. The cashier in charge at that time, resigned. The
manager decided to cancel this amount as he would not be able to
recover this money.
Make the necessary entry in the appropriate journal to cancel the
R5 000.
1.1.2 Make the additional supplementary entries to the Cash Receipts
Journal and the Cash Payments Journal for March 2013. (20)
1.1.3 Prepare the Bank account in the General Ledger. (7)
1.1.4 Prepare the Bank Reconciliation Statement on 31 March 2013. (8)
1.1.5 Suggest TWO ways in which the internal controls of the business can
be improved so that situations like the missing R5 000 can be
prevented.
(4)
1.1.6 Provide ONE advantage of making payments via the Internet. (2)
4. 4 ACCOUNTING (NOVEMBER 2013)
INFORMATION:
a) Bank Reconciliation Statement of Blitz Traders on 28 February 2013.
Debit balance as per bank statement 2 220
Outstanding deposits (5 000 + 7 000) 12 000
Cheques not presented for payment:
No. 1812 (dated 16 September 2012)* issued to B. Chop 1 500
No. 1834 (dated 27 February 2013) issued to XY Services 3 860
No. 1848 (dated 18 May 2013) issued to PE Electronics 6 660
Credit amount wrongly debited 570
Credit balance as per Bank Account 1 670
*Cheque No. 1812 was issued to the owner for his personal use. It was not used.
b) Totals in the bank columns of the journals on 31 March 2013:
Cash Receipts Journal R22 250
Cash Payments Journal R15 500
c) Bank Statement received from Northmead Bank.
NORTHMEAD BANK
BANK STATEMENT OF BLITZ TRADERS
12 Cambridge Street Date: 28 March 2013
East London Statement No.: 221
DETAILS
CREDITS (+)
DEBITS (-)
DATE BALANCE
Balance 1/3/2013 2 220 (dr)
Deposit 7 000 + 2/3/2013 4 780
Cash handling fees 35 - 4/3/2013 4 745
Cheque No. 1834 3 680 - 6/3/2013 1 065
Cheque No. 1855 2 660 - 10/3/2013 1 595 (dr)
Cheque No. 1856 3 920 - 15/3/2013 5 515 (dr)
Correction of error 570 + 15/3/2013 4 945 (dr)
Deposit 7 500 + 17/3/2013 2 555
Stop Order – ASD Insurance 620 - 18/3/2013 1 935
Cheque No. 1858 3 330 - 19/3/2013 1 395 (dr)
Deposit – S. Jackson 5 600 + 20/3/2013 4 205
Cheque No. 1859 2 520 - 20/3/2013 1 685
Unpaid Cheque 830 - 20/3/2013 855
Deposit 8 500 + 25/3/2013 9 355
Cash deposit fees 132 - 26/3/2013 9 223
Service fees 248 - 27/3/2013 8 975
Interest on credit balance 75 + 28/3/2013 9 050
d) The stop order on 18 March 2013 is the insurance on the business vehicles.
e) The deposit on 20 March 2013 is from the tenant for the March 2013 rent.
f) The unpaid cheque was from A. Skelm, a debtor.
g) The correct amount for Cheque No. 1834, issued for general maintenance to
the buildings, is the amount on the bank statement.
h) A deposit of R6 250 on 29 March 2013, in the CRJ, did not appear on the bank
statement.
i) Cheques No. 1857 (for R2 320) and No. 1860 (for R?), were not presented to
the bank during March 2013.
5. (NOVEMBER 2013) ACCOUNTING 5
1.2 Creditors’ Reconciliation
The creditor’s ledger account of Canes LTD (presented below) appeared in the
books of MQ Stores.
REQUIRED:
1.2.1 Prepare a Creditor’s Reconciliation Statement on 31 March 2013. (9)
INFORMATION:
1. CREDITORS LEDGER OF MQ STORES
Canes LTD (CL5)
DATE DETAILS FOL DEBIT CREDIT BALANCE
2013
Mar 1 Balance b/d 24 760
5 Invoice No. 321 6 950 31 710
7 Debit Note No. 98 490 31 220
20 Cheque No. 1123 12 000 19 220
Discount Received 600 18 620
25 Invoice No. 487 6 840 25 460
2. All the information on the above creditor’s ledger account is correct.
3. The statement received from Canes LTD showed a balance of R27 440 owing
to them on 30 March 2013.
4. The following differences/errors were noted on the statement:
4.1 The statement had the invoice total on 5 March 2013, as R6 590.
4.2 Damaged goods returned on the 7th
(R490), appeared on the debit side
of the statement.
4.3 The discount received when payment was made on 20th
was not taken
into account by the Canes LTD.
4.4 The 10% trade discount on goods purchased on 25th
was omitted. 50
6. 6 ACCOUNTING (NOVEMBER 2013)
QUESTION 2
FINANCIAL STATEMENTS AND PARTNERSHIPS (100 marks; 60 minutes)
2.1 Fixed Assets and Financial Statements
The Income Statement below was prepared by the newly appointed bookkeeper. Upon
inspection of the statement, it was discovered that there were many errors.
REQUIRED:
2.1.1 Post to the Asset Disposal account in the general ledger. (8)
2.1.2 Prepare the following notes to the Balance Sheet:
Tangible Assets (Fixed Assets) (20)
Trade and other receivables (6)
2.1.3 Taking into account the additional information (as well as other errors you may
discover), prepare the correct Income Statement for the year. (35)
INFORMATION:
1. Star Traders
Income Statement for the year ended 28 February 2013
Sales 323 320
Cost of Sales (192 000)
GROSS PROFIT 131 320
Other Income 80 030
Rent Income 71 500
Discount Received 2 420
Sale of Equipment* Refer 2.1 3 000
Interest on Fixed Deposit 3 110
GROSS INCOME 211 350
Operating expenses (123 110)
Debtors’ Allowances 3 320
Salaries and wages 56 000
Total employer’s contributions 2 800
Stationery 5 330
Consumable Stores 7 350
Insurance 3 920
Telephone 6 410
Purchase of office equipment* Refer 2.2 7 600
Bank Charges 4 560
Bad Debts 1 220
Provision for Bad Debts 1 170
Interest on Overdraft 970
Sundry Expenses 22 460
NET PROFIT FOR THE YEAR 88 240
7. (NOVEMBER 2013) ACCOUNTING 7
2. The following balances appeared on the Trial Balance on 28 February 2013.
Vehicles 176 500
Equipment 67 800
Accumulated Depreciation on Vehicles (1/3/2012) 79 200
Accumulated Depreciation on Equipment (1/3/2012) 22 200
Trading Stock 27 550
Debtors Control ?
Provision for Bad Debts (1 March 2012) 1 320
2.1 The “Sale of equipment” amount in the Income Statement is the cash
received from an employee who purchased some old furniture that were
replaced. The cost of these items was R5 500 and the carrying value was
R2 125. These items were sold on 28 February 2013. No other entries were
made.
2.2 The new desks and chairs were purchased on 1 December 2012. The cost of
these items was included in the Income Statement. This amount is also
included in the equipment balance above.
2.3 Equipment is depreciated at 15% p.a. on the diminishing balance method.
2.4 Vehicles are depreciated at 15% p.a. on cost.
3. The following adjustments were not taken into account by the inexperienced
bookkeeper:
3.1 The rent for February 2013 was not yet received.
3.2 Insurance includes monthly payments up to 30 April 2013.
3.3 Physical count of stock revealed the following stock on hand:
Trading Stock, R25 640
Unused consumable stores in stock amounted to R2 150
3.4 The salary of a clerk on leave was not yet entered. Her net salary is R4 460.
Her total deductions add up to R2 340. The employer’s contributions were
taken into account.
3.5 The telephone account for February 2013, R480, was paid on 5 March 2013.
3.6 Depreciation was not taken into account (refer to point 2 above).
3.7 The business makes provision for bad debts at 5% of Trade Debtors.
The bookkeeper calculated 5% of the Debtors Control balance and used this
amount in the Income Statement.
8. 8 ACCOUNTING (NOVEMBER 2013)
2.2 Partnerships and Interpretation
The information below was obtained from the financial statements of SoFine
Traders. The business is owned by two partners, Yoga and Yash.
REQUIRED:
2.2.1 Calculate the missing amounts on the table provided (denoted by A to G). (10)
YOGA YASH TOTAL
Partners’ salaries 64 800 46 200 111 000
Interest on Capital A 7 500
Bonus - E
Total primary distribution B D C
Share in the remaining profit F G 14 820
Net profit for the year 154 670
2.2.2 Calculate the following financial indicators:
(a) Debt/Equity Ratio (3)
(b) Percentage return earned by Yoga. (Use the average equity) (5)
`
2.2.3 Yoga feels that the business is in a sound liquidity position. Explain why you
think he feels this way. Quote TWO financial indicators (with figures) to
motivate your answer. (6)
2.2.4 Yash is not satisfied with her percentage return on equity compared to that of
Yoga’s. Give ONE possible reason why she feels this way. Quote figures to
motivate your response. (3)
2.2.5 The business wants to expand their operations and have discussed
extending the existing building. This venture is expected to cost R200 000.
By looking at the financial statements and the indicators, suggest different
ways in which this project can be financed. (Two points) (4)
9. (NOVEMBER 2013) ACCOUNTING 9
INFORMATION:
1. Information from the Balance Sheet on 28 February 2013.
(with comparative figures)
FEBRUARY 2013 FEBRUARY 2012
Fixed Assets (Carrying value) 422 660 337 520
Investments (11% p.a.) 160 000 30 000
Current Assets 113 560 121 050
TOTAL ASSETS 696 220 488 570
Owners’ Equity 534 580 301 510
Capital Note 1 475 000 325 000
Current Accounts Note 2 59 580 (23 490)
Non-Current Liabilities (12% p.a.) 94 840 138 640
Current Liabilities 66 800 48 420
TOTAL LIABILITIES 696 220 488 570
Note 1: Capital YOGA YASH
Balance on 1 March 2012 200 000 125 000
Additions / (withdrawals) 75 000 75 000
Balance on 28 February 2013 275 000 200 000
Summary of information from the Current Accounts of partners:
a. Current Account balances: YOGA YASH
Opening balance (1 MARCH 2012) (24 690) 1 200
Closing balance (28 FEBRUARY 2013) 17 040 42 540
b. Salary allowances of partners for the year ended 28 February 2013.
Yoga R64 800
Yash R46 200
c. Partners’ drawings for the year ended 28 February 2013:
Yoga R47 400
Yash R24 200
d. The Net Profit from the Income Statement R154 670
e. The profit after deducting the total primary distribution of
the partners (remaining profit for final division) R14 820
10. 10 ACCOUNTING (NOVEMBER 2013)
2. Additional Information:
Interest on capital is 6% p.a. on capital balances.
Yoga increased his capital on 1 May 2012 and Yash increased her capital
on 28 February 2013.
Yash (who is the sales manager) is entitled to an annual bonus.
Profits and losses are shared in the ratio of their capital balances at the
end of the year.
3. Financial indicators for 2013 (with comparatives).
2013 2012
Current Ratio 1,7 : 1 2,5 : 1
Acid-Test Ratio 1,1 : 1 1,8 : 1
Debtors Collection Period 31 days 42 days
Creditors payment period 76 days 82 days
Debt/Equity ratio ? 0,45 : 1
Return on total capital employed 28% 22,4%
% return earned by Yoga ? 72,3%
% return earned by Yash 53,7% 54,4%
100
11. (NOVEMBER 2013) ACCOUNTING 11
QUESTION 3
CASH BUDGETS (40 marks; 24 minutes)
You are provided with information relating to Sentry Traders, a sole proprietor.
REQUIRED:
3.1 Calculate the percentage of goods sold on credit during February 2013. (4)
3.2 Calculate the amount that the business expects to receive from debtors during
March 2013. (Debtors Collection Schedule) (8)
3.3 Prepare the Cash Budget for March 2013. (20)
3.4 The business intends to employ two additional shop assistants in April 2013, at
the same salary of the existing employees. In your opinion, is this a wise
decision? Motivate your answer by making use of figures from the information. (4)
3.5 Compare the actual figures for February 2013 against the budgeted amounts
for March 2013. (Refer to point 14 of the information provided)
Advise the owner on what he could do to improve the internal controls of any
TWO items on the list. You do not need to quote any figures. (4)
INFORMATION:
1. Sales figures for 2013
MONTHS
ACTUAL BUDGETED
CASH CREDIT CASH CREDIT
JANUARY 18 800 75 200
FEBRUARY 12 600 50 400
MARCH 19 600 78 400
2. Credit sales are generally collected as follows:
50% in the month of sale (these debtors receive a 5% discount)
30% after 30 days (in the month after sales)
15% after 60 days (two months after sales)
5% is written off as bad debts.
3. With regard to trading stock, the following must be noted:
The business maintains a mark-up percentage of 40% on sales and a
fixed base stock level. (stock sold in a month is replaced in that month)
All purchases of stock are made on credit.
Creditors are paid in the month after the purchase of the stock.
12. 12 ACCOUNTING (NOVEMBER 2013)
4. Interest on fixed deposit amounts to R4 800 per year. This is received in two
equal instalments on 1 March 2013 and 1 September 2013.
5. Operating expenses amount to R18 000 per month and is paid by cheque.
6. Salaries is R24 000 per month. During March 2013, the four shop assistants
will also receive their production bonuses of 80% of their monthly salary.
7. The total rent income for the previous financial year was R36 000. The rent is
expected to increase by 15% on 1 March 2013.
8. The owner agreed that his drawings per month should not exceed R2 000. This
must comprise R1 500 cash and R500 worth of trading stock.
9. Renovations to the office and reception area were done during December 2012.
New office equipment including computers were purchased on 1 January 2013
for R96 000. These are being paid off in 12 equal monthly instalments.
Depreciation on equipment amounts to R7 800 (including the new equipment).
10. Bank charges average R500 per month.
11. R2 000 per month is allocated for maintenance of buildings.
12. Mr Senta decided that, during March 2013, he will increase his capital
contribution by R40 000 cash and by R17 000 worth of equipment.
13. The bank balance reflected an overdraft of R6 000 on 28 February 2013.
14. The bookkeeper supplied the following actual amounts for February 2013:
Rent Income 1 000
Drawings 3 210
Bank charges 525
Maintenance of buildings 3 780
40
13. (NOVEMBER 2013) ACCOUNTING 13
QUESTION 4
CLUBS (30 marks; 18 minutes)
4.1 Membership fees
The information presented below was taken from the records of City Sports Club for
the financial year ended 31 December 2012.
REQUIRED:
4.1.1 Calculate the total amount that is due by all members in respect of
membership fees, for this financial year. (Income and expenditure
amount) (7)
4.1.2 Prepare the Membership Fees account for the year ended
31 December 2012. (12)
INFORMATION:
1. Information from the post-closing trial balance on 31 December 2011:
Accrued Income (Membership Fees) 480
Income Received in advance (Membership Fees) 900
2. The constitution of the club stipulates the following:
Membership fee per member, per year is R60 (this has remained the same
for the last two years.)
Membership fees of members who join the club during the year will be
calculated pro rata on the unexpired months for that financial year. Any part
of a month will be regarded as a full month.
3. There were 108 members on the club register on 31 December 2011, the last
day of the previous financial year.
4. 12 new members joined on 1 June 2012.
15 new members joined on 12 September 2012.
They all paid their membership fees in full.
5. Of the outstanding fees of 2011, only four members settled their accounts.
An unemployed member was allowed to offset (settle) his outstanding fees of
2011 by doing some minor repairs to the clubhouse.
The balance of the amount due from last year must be written off, and the
defaulting members were suspended from the club.
6. Six members paid their 2013 membership fees during this year.
7. Five members did not pay their fees for the current financial year.
14. 14 ACCOUNTING (NOVEMBER 2013)
4.2 Analysing Transactions:
The transactions listed below, were from the books of City Sports Club.
For each transaction, write only the amount under the appropriate headings on
the table provided, as per the following example: (11)
Example: Affiliation fees of R800 were paid on 1 January 2012. R200 of that amount is for
the next accounting period.
NO.
STATEMENT OF RECEIPTS AND PAYMENTS
– 31 DECEMBER 2012
STATEMENT OF INCOME AND EXPENDITURE
– 31 DECEMBER 2012
RECEIPTS PAYMENTS INCOME EXPENDITURE
E.g. 800 600
TRANSACTIONS:
1. The wages column in the Cash Journal showed R9 900. R6 000 was in
respect of labour cost for the construction of an extra room to the clubhouse.
2. Entrance fees received amounted to R3 000. Club policy stipulates that
entrance fees must be capitalised.
3. Crockery purchased by cheque was R1 400. Breakages totalled R300.
4. Refreshments were sold for cash at a profit mark-up of 60%. The cost of
refreshments sold amounted to R5 590. R2 500 is still payable to the suppliers
of refreshments.
5. The secretary is entitled to an honorarium of R350 which will only be paid on
25 January 2013.
30
15. (NOVEMBER 2013) ACCOUNTING 15
QUESTION 5
MANUFACTURING CONCERNS (35 marks; 21 minutes)
5.1 Place a cross (X) under the appropriate category for each of the items
listed below.
ITEM PRIME COST
FACTORY
OVERHEADS
ADMINISTRATION
COSTS
SELLING AND
DISTRIBUTION
5.1.1 Indirect materials
5.1.2 Advertising
5.1.3 Direct Labour
5.1.4 Factory Rent
5.1.5 Office Stationery (5)
5.2 Julius Mamba manufactures handbags. He works at home using his
father’s garage. He is determined that he is only able to produce 40
handbags per month.
His average monthly expenses are as follows:
Material and other components for 40 handbags 520
Direct labour cost for 40 handbags 555
Rent for the use of the garage 1 250
Water and electricity (60% is variable cost) 775
Indirect material used in producing the handbags 460
Sundry expenses in the production process 200
5.2.1 Calculate:
a) The total fixed cost (2)
b) The total variable cost (2)
5.2.2 Explain the concept “breakeven”. (2)
5.2.3 Calculate the selling price at the breakeven point.
Will Julius be satisfied with this break-even selling price? Explain. (7)
16. 16 ACCOUNTING (NOVEMBER 2013)
5.3 The following incomplete ledger accounts appeared in the books of
Target Products for the financial year ended 28 February 2013.
The business manufactures stationery cases for learners.
These are sold at a constant mark-up of 25% on cost.
REQUIRED:
5.3.1 Fill in all the appropriate details and amounts, where applicable.
(shown by an *) (17)
INFORMATION:
a) 18 200 units were produced during the year, and 16 825 units were sold.
b) The factory overhead cost per unit was R2,50.
GENERAL LEDGER OF TARGET PRODUCTS
BALANCE SHEET ACCOUNTS
WORK IN PROCESS STOCK (B8)
2012
Mar
1 Balance 10 200
2013
Feb
28 * *
2013
Feb
28 * 38 420 Balance 14 000
Direct labour cost 65 480
Factory Overheads *
* *
2013
Mar
1 Balance *
FINISHED GOODS STOCK (B9)
2012
Mar
1 Balance 0
2013
Feb
28 * *
2013
Feb
28 * * Balance *
* *
2013
Mar
1 Balance *
FINAL ACCOUNTS
TRADING ACCOUNT
2013
Feb
28 Cost of Sales *
2013
Feb
28 * *
* *
* *
35
17. (NOVEMBER 2013) ACCOUNTING 17
QUESTION 6
VAT AND STOCK SYSTEMS (45 marks; 27 minutes)
6.1 VAT
REQUIRED:
6.1.1 Indicate whether the following statements are True or False.
(a) The invoice method means declaring VAT when money is received or
paid.
(b) All businesses must register as VAT vendors.
(c) People using public transport do not pay VAT.
(d) Necessary goods like bread and milk are taxed at a rate of 0%. (8)
6.1.2 The following information was extracted from the books of Tidy Cleaning
Services. This businesses is a registered VAT vendor and pays the VAT owing
to SARS on the 25th
of each month.
During July 2013, the following list of payments was noted. Some amounts are
given. You are required to complete the calculations where necessary.
EXPENSES
EXCLUDING
VAT
VAT
VAT
(INCLUSIVE)
Rental 6 400 896 7 296
Salaries and Wages 28 000
Telephone 1 250 1 425
Advertising and Insurance 2 900
Cleaning material 44 232
Stationery 550 77
Fuel (Petrol) 2 480
Invoices issued for services rendered during July 2013 totalled
R61 900 (excluding VAT). They also received R7 182 in fee income from
cash customers (including VAT).
QUESTIONS:
(a) According to the information above, calculate the amount of VAT that City
Cleaning Services will need to pay to SARS on 25th
August 2013.
(Show all calculations – do not show the final answer only.) (13)
(b) As a registered accountant, you noticed that the owner, P. Mandla, inflated the
cleaning materials account by R5 000.
Express your feelings about Mandla’s action, and explain what steps you
would take. (4)
18. 18 ACCOUNTING (NOVEMBER 2013)
6.2 STOCK SYSTEMS
Jubilee Stores uses the periodic inventory system to record their stock. The information
presented is from their accounting records for the financial year ended 30 September 2013.
Goods are sold at a profit mark-up of 50% on cost.
REQUIRED:
6.2.1 Complete the Purchases Account provided in the answer book, by
filling in the missing details and amounts. (7)
6.2.2 Calculate the Gross profit earned by the business.
(You may construct the Trading Account to calculate this amount) (8)
6.2.3 Calculate the Gross profit percentage achieved. (3)
6.2.4 Provide ONE suitable reason why the 50% mark-up on cost was not
achieved.
(2)
INFORMATION:
1. The following balances appeared (amongst others) in the Pre-Adjustment Trial
Balance on 30 September 2013.
Capital 550 000
Drawings 55 140
Debtors Control 75 000
Trading Stock (1 October 2012) 211 900
Sales 915 000
Purchases 684 240
Carriage on Purchases 9 610
Carriage on Sales (Delivery Expenses) 7 455
Debtors Allowances 24 170
Creditors Allowances 10 350
2. On 28 September 2013, the business donated goods (selling price: R2 160) to a
local golf fund raiser. This transaction was not recorded.
3. It was discovered that an invoice received from Wheirs Cash and Carry was not
entered. The invoice showed the following:
Merchandise purchased, 9 550
Transport cost, 320
9 870
4. The owner took goods (cost R2 000) for his personal use.
5. A physical stock-count on 30 September 2013 showed the value of stock on
hand to be R255 000.
6. An amount of R145 for carriage on sales was still outstanding from a customer.
45
TOTAL: 300