1. This document provides information for an accounting exam consisting of 6 compulsory questions covering topics like partnerships, manufacturing concerns, cash budgets, bank reconciliation, clubs/stock systems, and asset management.
2. It outlines the time allocation and learning outcomes for each question. Question 1 covers partnerships and has the most marks/time allocated.
3. The document also provides additional information for the exam questions, including financial records and transactions for a partnership business and a manufacturing concern. This information is to be used when answering the relevant exam questions.
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Case Study 1 (Part A)
Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books; construct and use a trial balance) During the first month of operation of Gordon Construction, Inc., completed the following transactions:
June
For more course tutorials visit
www.tutorialrank.com
Case Study 1 (Part A)
Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books; construct and use a trial balance) During the first month of operation of Gordon Construction, Inc., completed the following transactions:
June
For more classes visit
www.snaptutorial.com
Case Study 1 (Part A)
Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books; construct and use a trial balance) During the first month of operation of Gordon Construction, Inc., completed the following transactions:
For more course tutorials visit
www.tutorialrank.com
Case Study 1 (Part A)
Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books; construct and use a trial balance) During the first month of operation of Gordon Construction, Inc., completed the following transactions:
June
2
Gordon received $55,000 cash and issued common stock to the stockholders.
3 Purchased supplies, $3,000, and equipment, $5,200, on account.
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Acct 503 Social Responsibility / tutorialrank.comPrescottLunt432
For more course tutorials visit
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Case Study 1 (Part A)
Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books; construct and use a trial balance) During the first month of operation of Gordon Construction, Inc., completed the following transactions:
June
2
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Case Study 1 (Part A)
Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books; construct and use a trial balance) During
For more course tutorials visit
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Case Study 1 (Part A)
Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books;
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Advanced Level
A Level
Zimsec
Cambridge
Alpro Learning Portal
Accounting
Accounts
Zimbabwe
Principle of accounts
For more course tutorials visit
www.tutorialrank.com
Case Study 1 (Part A)
Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books; construct and use a trial balance) During the first month of operation of Gordon Construction, Inc., completed the following transactions:
June
For more course tutorials visit
www.tutorialrank.com
Case Study 1 (Part A)
Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books; construct and use a trial balance) During the first month of operation of Gordon Construction, Inc., completed the following transactions:
June
For more classes visit
www.snaptutorial.com
Case Study 1 (Part A)
Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books; construct and use a trial balance) During the first month of operation of Gordon Construction, Inc., completed the following transactions:
For more course tutorials visit
www.tutorialrank.com
Case Study 1 (Part A)
Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books; construct and use a trial balance) During the first month of operation of Gordon Construction, Inc., completed the following transactions:
June
2
Gordon received $55,000 cash and issued common stock to the stockholders.
3 Purchased supplies, $3,000, and equipment, $5,200, on account.
Accounting 970642 paper 4 problem solving (supplementary topics) october nove...alproelearning
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Accounting
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Principle of accounts
Acct 503 Social Responsibility / tutorialrank.comPrescottLunt432
For more course tutorials visit
www.tutorialrank.com
Case Study 1 (Part A)
Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books; construct and use a trial balance) During the first month of operation of Gordon Construction, Inc., completed the following transactions:
June
2
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Principle of accounts
htmore classes visit
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Case Study 1 (Part A)
Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books; construct and use a trial balance) During
For more course tutorials visit
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Case Study 1 (Part A)
Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books;
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Principle of accounts
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Due Tues., May 2- 7 questions Big Time Picture Frames h.docxsagarlesley
Due Tues., May 2- 7 questions
Big Time Picture Frames has asked you to determine whether the company's ability to pay current
liabilities and total liabilities improved or deteriorated during 2009. To answer this question, you gather the
following data:
______________________________________________2009__________2008
Cash $52, 000 51, 000
Short-term investments 30,000 --
Net receivables 110,000 120, 000
Inventory 217,000 262,000
Total assets 540,000 490,000
Total current liabilities 265,000 202,000
Long-term note payable 44,000 54,000
Income from operations 165,000 153,000
Interest expense 44,000 37,000
Requirement
1. Compute the following ratios for 2009 and 2008:
a. Current ratio
b. Acid-test ratio
c. Debt ratio
d. Times-interest-earned ratio
a. Calculate the current ratio for both years. (Round your answers to two decimal places.)
2009: nothing
2008: nothing
The Variline Inc., comparative income statement follows. 2010 data are given as needed.
Variline, Inc.
Comparative Income Statement
Years Ended December 31, 2012 and 2011
(Dollars in thousands) 2012 2011 2010
Net sales $176,000 $160,000
Cost of goods sold 93,600 86,000
Selling and general expenses 46,800 41,400
Interest expense 9,600 10,900
Income tax expense 10,200 9,200
Net income $15,800 $12,500
Additional data:
Total assets $201,000 $192,000 $174,000
Common stockholders' equity $96,900 $89,800 $79,500
Preferred dividends $3,400 $3,400 $0
Common shares outstanding during the
year 20,000 20,000 18,000
Requirements
1. Calculate the rate of return on net sales.
2. Calculate the rate of return on total assets.
3. Calculate the rate of return on common stockholders' equity.
4. Calculate the EPS.
5. Did the company's operating performance improve or deteriorate during 2012?
Requirement 1. Calculate the rates of return on net sales for 2012 and 2011. (Round your answers to
three decimal places.)
2012:
nothing
2011: nothing
The Specialty Department Stores, Inc., chief executive officer (CEO) has asked you to compare the
company's profit performance and financial position with the average for the industry. The CEO has
given you the company's income statement and balance sheet, as well as the industry average data for
retailers.
Specialty Department Stores, Inc.
Income Statement Compared with Industry Average
Year Ended December 31, 2010
Industry
Specialty Average
Net sales $782,000 100.0 %
Cost of goods sold 526,286 65.8
Gross profit 255,714 34.2
Operating expenses 164,220 19.7
Operating income 91,494 14.5
Other expenses 6,256 0.4
Net income $85,238 14.1 %
Specialty Department Stores, Inc.
Balance Sheet Compared with Industry Average
December 31, 2010
...
A GUI design elements is a combination of technology and equipment.docxevonnehoggarth79783
A GUI design elements is a combination of technology and equipment to provide users with a platform that allows users to interact with it. A series of GUI components follow a visual language to represent the information stored in the computer. The most common elements include a combination of components such as model WIMP (window, icon, menu, pointing device) in the personal computer.
1. (TCO A) An advantage of the corporate form of business is that _____. (Points : 5)
it has limited life
its owner's personal resources are at stake
its ownership is easily transferable via the sale of shares of stock it is simple to establish
2. (TCO A) When a corporation distributes a dividend, _____. (Points : 5)
the most common form of distribution is a cash dividend the Dividends account will be increased with a credit
the Retained Earnings account will be directly increased with a debit the Dividends account will be decreased with a debit
3. (TCOs A, B) Below is a partial list of account balances for Denton Company:
Cash $7,000
Prepaid insurance 700
Accounts receivable 3,500
Accounts payable 2,800
Notes payable 4,200
Common stock 1,400
Dividends 700
Revenues 21,000
Expenses 17,500
What did Denton Company show as total credits? (Points : 5)
$30,100 $29,400 $28,700 $30,800
4. (TCOs B, E) A small and private company may be able to justify using a cash basis of accounting if it has _____. (Points : 5)
sales under $1,000,000 no accountants on staf
insignificant receivables and payables all sales and purchases on account
5. (TCO D) In a period of increasing prices, which inventory cost flow assumption will result in the lowest amount of income tax expense? (Points : 5)
FIFO
LIFO
The average cost method
Income tax expense for the period will be the same under all assumptions.
6. (TCOs A, E) Equipment was purchased for $60,000. Freight charges amounted to $2,800 and there was a cost of $8,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $12,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be _____. (Points : 5)
$14,160 $11,760 $9,840 $9,600
7. (TCOs D, G) Lopez Corporation issues 500 ten-year, 8%, $1,000 bonds dated January 1, 2007, at 96. The journal entry to record the issuance will show a _____. (Points : 5)
debit to Cash of $500,000
credit to Discount on Bonds Payable for $20,000 credit to Bonds Payable for $480,000
debit to Cash for $480,000
8. (TCO C) Accounts receivable arising from sales to customers amounted to $35,000 and $40,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was
$120,000. Exclusive of the efect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is _____. (Points : 5)
$120,000 $125,000 $155,000 $115,000
9. (TCO F) Which one of the following is not a tool in fin.
Exercise 18-1Financial information for Sinead Inc. is pr.docxgitagrimston
Exercise 18-1
Financial information for Sinead Inc. is presented below.
December 31, 2013
December 31, 2012
Current assets
$123,920
$100,970
Plant assets (net)
394,340
328,550
Current liabilities
89,510
70,740
Long-term liabilities
129,370
87,560
Common stock, $1 par
166,530
116,400
Retained earnings
132,850
154,820
Prepare a schedule showing a horizontal analysis for 2013 using 2012 as the base year. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000). (20%). Round percentages to 1 decimal place, e.g. 12.3%.)
SINEAD INC.
Condensed Balance Sheets
December 31
Increase or (Decrease)
2013
2012
Amount
Percentage
Assets
Current Assets
$123,920
$100,970
$
%
Plant Assets (net)
394,340
328,550
%
Total assets
$518,260
$429,520
$
%
Liabilities
Current Liabilities
$89,510
$70,740
$
%
Long-term Liabilities
129,370
87,560
%
Total liabilities
218,880
158,300
%
Stockholders' Equity
Common Stock, $1 par
166,530
116,400
%
Retained Earnings
132,850
154,820
%
Total stockholders' equity
299,380
271,220
%
Total liabilities and stockholders' equity
$518,260
$429,520
$
%
Exercise 18-2
Operating data for Krystal Corporation are presented below.
2013
2012
Net sales
$747,550
$596,800
Cost of goods sold
466,890
393,490
Selling expenses
123,640
70,370
Administrative expenses
56,450
54,540
Income tax expense
30,120
25,260
Net income
70,450
53,140
Prepare a schedule showing a vertical analysis for 2013 and 2012. (Round all answers to 1 decimal place, e.g. 48.5%.)
KRYSTAL CORPORATION
Condensed Income Statements
For the Years Ended December 31
2013
2012
Amount
Percent
Amount
Percent
Net sales
$747,550
%
$596,800
%
Cost of goods sold
466,890
%
393,490
%
Gross margin
280,660
%
203,310
%
Selling expenses
123,640
%
70,370
%
Administrative expenses
56,450
%
54,540
%
Total operating expenses
180,090
%
124,910
%
Income before income taxes
100,570
%
78,400
%
Income taxes expense
30,120
%
25,260
%
Net income
$70,450
%
$53,140
%
Comparative statement data for Lionel Company and Barrymore Company, two competitors, appear below. All balance sheet data are as of December 31, 2013, and December 31, 2012.
Lionel Company
Barrymore Company
2013
2012
2013
2012
Net sales
$1,576,018
$339,804
Cost of goods sold
1,008,289
240,939
Operating expenses
300,593
78,336
Interest expense
8,640
2,920
Income tax expense
54,924
6,370
Current assets
320,222
$314,105
83,452
$ 78,542
Plant assets (net)
519,420
498,249
139,245
125,702
Current liabilities
64,200
74,053
34,295
28,136
Long-term liabilities
107,950
90,407
28,915
25,879
Common stock, $10 par
496,000
496,000
120,000
120,000
Retained earnings
171,492
151,894
39,487
30,229
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Part I. Comprehensive problems. Place answers below each questio.docxherbertwilson5999
Part I. Comprehensive problems. Place answers below each question.
1. Points = 4
Instructions
Determine the incremental income or loss that Hayes Enterprises would realize by accepting the special order.
2. Points = 4
Instructions
Prepare an incremental analysis, which shows the effect of the make-or-buy decision.
3. Points = 12
Instructions
Prepare the net cash provided by operating activities section of the company's statement of cash flows for the year ended December 31, 2014, using the indirect method.
4. Points = 10
Instructions
Mimi Manufacturing Company uses a job order cost accounting system and keeps perpetual inventory records. Prepare journal entries to record the following transactions during the month of June. (Indent credit accounts)
Date:
Account
Debit
Credit
5. Points = 12
Instructions
Complete the Production Cost Report for the Molding Department for the month of May using the above information and the information below.
Equivalent Units
QUANTITIES
Physical Units
Materials
Conversion Costs
Work in process, May 1
7,000
Started into production
28,000
Total units
35,000
Units accounted for:
Transferred out
30,000
Work in process, May 31
5,000
Total units
35,000
COSTS
Unit costs
Materials
Conversion Costs
Total
Costs in May
$140,000
$160,000
$300,000
Equivalent units
Units costs
Costs to be accounted for
Work in process, May 1
$60,000
Started into production
240,000
$300,000
Cost Reconciliation Schedule
Costs accounted for:
Transferred out
Work in process, May 31:
….Materials
….Conversion costs
Total costs
$300,000
6. Points = 8
Instructions
(a)
Prepare the responsibility reports for the Mixing Department for each month.
June
July
Controllable Cost
Budget
Actual
Delta
F or U
Budget
Actual
Delta
F or U
Indirect materials
Indirect labor
Factory supplies
Supervision
Total costs
· F = Favorable variance
· U = Unfavorable variance
(b) Comment on the manager's performance in controlling costs during the two-month period.
Part II: 25 Multiple Choice Questions @ 2 points each = 50 points.
Place answers in the table below:
1.
6.
11.
16.
21.
2.
7.
12.
17.
22.
3.
8.
13.
18.
23.
4.
9.
14.
19.
24.
5.
10.
15.
20.
25.
FinalSUMNIll9287jhd72g
Part I. 6 Comprehensive problems worth 50 points total
1. Points = 4
Hayes Enterprises produces miniature parasols. Each parasol consists of $1.20 of variable costs and $.90 of fixed costs and sells for $4.50. A French wholesaler offers to buy 9,000 units at $1.40 each, of which Pederson has the capacity to produce. Hayes will incur extra shipping costs of $.12 per parasol.
Instructions
Determine the .
Exploring Career Paths in Cybersecurity for Technical CommunicatorsBen Woelk, CISSP, CPTC
Brief overview of career options in cybersecurity for technical communicators. Includes discussion of my career path, certification options, NICE and NIST resources.
This comprehensive program covers essential aspects of performance marketing, growth strategies, and tactics, such as search engine optimization (SEO), pay-per-click (PPC) advertising, content marketing, social media marketing, and more
Want to move your career forward? Looking to build your leadership skills while helping others learn, grow, and improve their skills? Seeking someone who can guide you in achieving these goals?
You can accomplish this through a mentoring partnership. Learn more about the PMISSC Mentoring Program, where you’ll discover the incredible benefits of becoming a mentor or mentee. This program is designed to foster professional growth, enhance skills, and build a strong network within the project management community. Whether you're looking to share your expertise or seeking guidance to advance your career, the PMI Mentoring Program offers valuable opportunities for personal and professional development.
Watch this to learn:
* Overview of the PMISSC Mentoring Program: Mission, vision, and objectives.
* Benefits for Volunteer Mentors: Professional development, networking, personal satisfaction, and recognition.
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* Program Structure and Expectations: Mentor-mentee matching process, program phases, and time commitment.
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* How to Get Involved: Steps to participate and resources available for support throughout the program.
Learn how you can make a difference in the project management community and take the next step in your professional journey.
About Hector Del Castillo
Hector is VP of Professional Development at the PMI Silver Spring Chapter, and CEO of Bold PM. He's a mid-market growth product executive and changemaker. He works with mid-market product-driven software executives to solve their biggest growth problems. He scales product growth, optimizes ops and builds loyal customers. He has reduced customer churn 33%, and boosted sales 47% for clients. He makes a significant impact by building and launching world-changing AI-powered products. If you're looking for an engaging and inspiring speaker to spark creativity and innovation within your organization, set up an appointment to discuss your specific needs and identify a suitable topic to inspire your audience at your next corporate conference, symposium, executive summit, or planning retreat.
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How Mentoring Elevates Your PM Career | PMI Silver Spring Chapter
Accn p1-n12-qp-eng-final
1. Province of the
EASTERN CAPE
EDUCATION
NATIONAL
SENIOR CERTIFICATE
GRADE 11
NOVEMBER 2012
ACCOUNTING
MARKS: 300
TIME: 3 hours
This question paper consists of 16 pages.
2. 2 ACCOUNTING (NOVEMBER 2012)
INSTRUCTIONS AND INFORMATION
1. This question paper comprises SIX compulsory questions.
2. Answer ALL the questions in the special 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 a black/blue pen in order to answer the questions.
6. A breakdown of the questions is provided. You must attempt to comply with the
suggested time allocation for each question.
3. (NOVEMBER 2012) ACCOUNTING 3
Use the information given in the table below as a guide when answering the questions.
To exercise good time management, try NOT to deviate from it.
QUESTION 1: (105 marks ; 63 minutes)
Topic of the question Learning Outcomes covered
Partnerships
LO1 AS5 Financial statements of partnerships
Ratios and interpretation of financial information
LO3 AS6 Ethical issues
QUESTION 2: (45 marks ; 27 minutes)
Topic of the question Learning Outcomes covered
Manufacturing Concerns
LO2 AS2 Posting to specific ledger accounts
Break-even analysis
QUESTION 3: (45 marks ; 27 minutes)
Topic of the question Learning Outcomes covered
Cash Budgets
LO2 AS3 Prepare and present cash budgets
LO3 AS6 Internal control over cash
QUESTION 4: (30 marks ; 18 minutes)
Topic of the question Learning Outcomes covered
Bank Reconciliation
LO1 AS4 Preparing bank reconciliation statements
LO3 AS6 Internal control over cash
QUESTION 5: (35 marks ; 21 minutes)
Topic of the question Learning Outcomes covered
Clubs and Stock
systems
LO1 AS2 Clubs: ledger accounts and interpretation
LO3 AS4
AS6
Stock recording systems
Internal control over stock
QUESTION 6: (40 marks ; 24 minutes)
Topic of the question Learning Outcomes covered
Asset Management
LO3 AS3 Asset acquisition, asset disposal and
depreciation
4. 4 ACCOUNTING (NOVEMBER 2012)
QUESTION 1
PARTNERSHIPS (105 marks ; 63 minutes)
The information presented below is from the records of JJ Stores for the financial year
ended 29 February 2012. JJ Stores is a partnership with partners Jakob and Julies. The
business deals in footwear sales and offers a repair facility. The business maintains a
constant profit mark-up of 60% on cost.
INSTRUCTIONS:
1.1 MATCHING ITEMS
Choose a statement from COLUMN B that matches the GAAP principle listed
in COLUMN A. Write only the letter next to the question number in the space
provided in the answer book.
COLUMN A COLUMN B
1.1.1 Matching A The market value of the building is R800 000, but it
must be recorded at its original cost of R340 000
1.1.2 Going-
concern
B “small” expenses of the business are grouped
together and disclosed as Sundry Expenses
1.1.3 Historical
cost
C Money lost due to theft of stock is written off, even
though it may be recovered in the future
1.1.4 Prudence D Insurance includes R340 which relates to the next
financial year
1.1.5 Materiality E Financial statements are prepared on the assumption
that the business will continue operating in the future (10)
1.2 Taking into account the adjustments, complete the Income Statement for the
year ended 29 February 2012. (40)
1.3 Prepare the following notes to the Balance Sheet:
1.3.1 Trade and Other Receivables (8)
1.3.2 Partners’ Current Account Note (21)
1.4 Comment on the LIQUIDITY position of this business. Quote TWO relevant
ratios to support your comment. (8)
1.5 Calculate the total earnings of partner Jakob. (Show workings). (4)
1.6 Calculate the return on investment of partner Julies. Should he be satisfied
with this return? Elaborate. (8)
1.7 Julies is concerned about the total drawings of Jakob. Explain why you think it
bothers him, and provide TWO suggestions on how he can address this
concern. (6)
5. (NOVEMBER 2012) ACCOUNTING 5
INFORMATION
a. Extracted from the Pre-Adjustment Trial Balance on 29 February 2012
DEBITS CREDITS
Capital: Jakob 330 000
Capital: Julies 220 000
Current Account: Jakob (1 March 2011) 9 850
Current Account: Julies (1 March 2011) 12 750
Drawings: Jakob 83 610
Drawings: Julies 24 140
Equipment 77 540
Accumulated Depreciation on equipment 32 820
Trading Inventory 88 770
Debtors Control 27 777
Provision for Bad Debts 1 420
Creditors Control 64 600
Loan: AB Bank 84 375
Fixed Deposit (14% p.a.) 50 000
Cash and Cash Equivalents 4 695
Sales 540 270
Cost of Sales 204 180
Debtors Allowances 18 020
Rent Income 46 520
Fee Income (on footwear repairs) 17 630
Consumable Stores 15 430
Salaries and Wages 42 600
Insurance 8 725
Stationery 9 288
Water and Electricity 12 545
Bad Debts 2 323
Interest on investment 5 250
Discount received 2 180
Sundry Expenses ?
6. 6 ACCOUNTING (NOVEMBER 2012)
ADDITIONAL INFORMATION:
a) A physical stock taking on 29 February 2012 revealed the following inventories
on hand:
Trading Inventory R87 650
Consumable Stores R1 430
b) Make provision for interest on investment. This investment has been in
existence for the entire year.
c) A debtor who owed R1 580 was declared insolvent. His estate paid 35% of his
debt, and this has been correctly recorded. The remaining balance must be
written off as a bad debt.
d) The provision for bad debts must be adjusted to 4% of debtors.
e) The rent increased by R320 on 1 December 2011. The tenant has paid the
rent until the end of March 2012.
f) Insurance includes R675 which relates to the period 1 January 2012 to
31 March 2012.
g) The total interest on loan was transferred to the Loan Account (capitalised) on
27 February 2012. Interest is charged at 12,5% p.a.
h) Depreciation on equipment of R15 472 must be taken into account.
i) The partnership agreement made provision for the following:
1. Partners’ salary allowance:
Jakob and Julies are entitled to an annual salary allowance of
R90 000 and R86 600 respectively.
2. Interest on capital is calculated at 8% p.a. on capital balances. Take into
account that Julies increased his capital by R30 000 on 1 June 2011.
3. Partners share profits and losses in proportion to their capital balances at
the end of the financial year.
j) List of financial indicators calculated: 29/02/2012 28/02/2011
1 Current ratio 1,9 : 1 1,6 : 1
2 Acid test ratio 0,5 : 1 0,9 :1
3 Average debtors collection period 39 days 42 days
4 Debt-equity ratio 0,14 : 1 0,3 : 1
5 Return on investment Jakob: 38%
Julies: 45%
6 Current interest rate offered by banks 10%
105
7. (NOVEMBER 2012) ACCOUNTING 7
QUESTION 2
MANUFACTURING CONCERNS (45 marks ; 27 minutes)
Gauteng Manufacturers produces printer cartridges for Bex printers and sells them at a profit
mark-up of 50% on cost. The information below is from their financial records for the
financial year ended 30 June 2012.
INSTRUCTIONS:
2.1 Indicate the cost category of each of the item listed below. Choose your
answer from the list provided. Write the answer only, next to the question
number in the answer book.
Direct material cost; Selling and Distribution cost;
Direct labour cost; Administration cost; Factory overhead cost
2.1.1 Advertising expense
2.1.2 Wages paid to workers in the production process
2.1.3 Salary of the factory foreman
2.1.4 Stationery and telephone expenses (4)
REFER TO INFORMATION A
2.2 Calculate the total FACTORY OVERHEAD COSTS. (15)
2.3 Calculate the selling price per cartridge.
Hint: Calculate the number of units sold first. (4)
2.4 Post to the following accounts in the General Ledger.
2.4.1 Work in Process Stock Account (7)
2.4.2 Finished Goods Stock Account (6)
REFER TO INFORMATION B
2.5 Calculate the number of units Vusi had to produce in order to break even. (5)
2.6 Explain the usefulness of the break-even analysis, and comment on the level
of production achieved by Vusi. (4)
8. 8 ACCOUNTING (NOVEMBER 2012)
INFORMATION A:
Gauteng Manufacturers produces printer cartridges for Bex printers and sells them at a profit
mark-up of 50% on cost. The information below is from their financial records for the
financial year ended 30 June 2012.
a) Stock balances 30 JUNE 2012 1 JULY 2011
Raw Material Stock 34 560 27 660
Factory Indirect material 2 530 3 550
Work in Process Stock 37 300 32 450
Finished Goods Stock 33 000
440 units
14 250
190 units
b) Summary of transactions for the year ended 30 June 2012
Material used in the factory:
Raw material purchased ?
Raw materials issued for production 490 000
Indirect materials purchased 21 760
Factory salaries and wages:
Direct labour 647 500
Indirect labour 24 350
Factory manager’s salary 64 860
Other expenses:
Rent expense 38 400
Insurance 8 880
Water and Electricity 16 600
Bad debts 3 210
Sundry factory expenses 25 620
Sales 1 940 625
Number of units produced 17 500
c) Additional Information:
60% of the rent expense must be allocated to the factory.
of the insurance expense relates to the factory.
Water and electricity must be divided between the factory and the office in
the ratio 4 : 1 respectively.
9. (NOVEMBER 2012) ACCOUNTING 9
INFORMATION B:
Vusi makes fancy cellphone pouches which are popular with high school learners. He
operates from his father’s garage. The information below relates to the first 3 months
of his business.
a) TOTAL PER UNIT
Fixed Costs
Factory overheads 6 860
Administration costs 690
Variable Costs
Direct material costs 9 800 10
Direct labour costs 5 880 6
Selling and distribution costs 2 940 3
b) Number of units produced: 980 (all the units produced were sold)
Sales for the period above: R27 440
45
10. 10 ACCOUNTING (NOVEMBER 2012)
QUESTION 3
CASH BUDGETS (45 marks ; 27 minutes)
You are provided with information from King Dealers, a business owned by D. King.
The business buys and sells camping goods using a profit mark-up of 60% on cost.
INSTRUCTIONS:
3.1 Complete the partially completed Debtors Collection schedule. (7)
3.2 Prepare the Cash Budget for the budget period 1 May 2012 to 30 June 2012. (26)
3.3 D. King wants to borrow R100 000 from the bank. He intends presenting this
budget as a motivation for the loan. State TWO points that you think the bank
would consider before making a decision. (Quote figures) (4)
3.4 The budgeted telephone expense for April was R3 000.
3.4.1 Provide a suitable reason for the actual expense being R450 more
than the budgeted amount. (2)
3.4.2 Give a reason why the business decided to maintain the telephone
expense at R3 000 for the budget period. (2)
3.5 The sales assistants are dissatisfied with their wage increase.
Give TWO points to support them. (4)
11. (NOVEMBER 2012) ACCOUNTING 11
INFORMATION:
a) Some actual and budgeted amounts:
ACTUAL BUDGETED
MARCH APRIL MAY JUNE
Sales (cash and credit) 82 000 76 000 72 000 66 000
Purchases of stock 51 250 47 500 ? ?
Rent Income 9 000 9 000 ? ?
Manager’s Salary 8 500 8 500 ? ?
Wages (Sales assistants) 12 000 12 000 ? ?
Telephone 3 000 3 450 3 000 3 000
Consumable Stores 4 500 4 500 4 600 4 600
Discount Received 1 000 1 200 1 200 1 300
Sundry expenses 8 000 ? ? ?
b) 25% of total sales are for cash. Experience has shown that debtors settle their
accounts as follows:
60% Settle in the month following the transaction month
37% Settle in the 2nd
month after the transaction month
3% Is usually irrecoverable
c) Inventories are kept constant by replacing the amount of goods sold.
(A base stock is maintained.) Note that the mark-up percentage on cost is 60%.
All purchases are on credit and creditors are paid 30 days after purchases.
(i.e. in the next month)
d) Salaries and wages are reviewed at the end of May each year. It was decided
that the manager’s salary will increase by 10% effective from 1 June 2012.
The sales assistants will receive a 5% increase, which was equal to the inflation
rate at the time.
e) Sundry expenses are expected to increase by 5% on the previous month’s
total.
f) New equipment to the value of R75 000 (including finance charges) will be
purchased during May 2012. R25 000 will be paid in May, and the balance will
be paid in eight equal instalments.
g) Rent income will be increased by 8% on 1 May 2012.
h) The owner’s total drawings per month amounts to R5 500. R1 200 of this is
usually consumable goods from stock.
i) On 30 April 2012 the bank account showed a favourable balance of R27 555.
45
12. 12 ACCOUNTING (NOVEMBER 2012)
QUESTION 4
BANK RECONCILIATION (30 marks ; 18 minutes)
KJ Traders is a small business that deals in selling computer equipment. They also provide a
repair and maintenance service to regular clients. The following information was extracted
from their records. The bank statement was received from Beta Bank on 29 June 2012.
INSTRUCTIONS:
4.1 Adjust the Bank account in the General Ledger, by recording the information
directly in the Bank Account, as laid out in the answer book.
Insert appropriate details on each side of the bank account for part-marks. (16)
4.2 Prepare the Bank Reconciliation Statement on 30 June 2012. (10)
4.3 Explain how monthly reconciliation with the bank statement can be useful in
detecting and preventing mismanagement of cash and fraud. (TWO POINTS) (4)
13. (NOVEMBER 2012) ACCOUNTING 13
INFORMATION:
a) On 30 June 2012, the bank columns in the cash journals show the following
provisional totals:
Cash Receipts Journal R620 500
Cash Payments Journal R532 200
b) The following items appeared on the bank reconciliation statement on 31 May 2012.
Favourable balance as per bank statement 11 500
Cheque 1123 not presented for payment 12 250
Cheque 1136 4 200
Cheque 983 dated 22 December 2010 500
Outstanding deposits 18 600
c) Information that appeared in the cash journals but not on the bank statement for
June 2012:
Cheque 1143 for R21 400 – post-dated for 15 September 2012.
Cheque 1156 for R7 500 – dated 29 June 2012.
A deposit of R45 600 on 30 June 2012.
d) Information that appeared on the bank statement received, but not in either of the cash
journals for June 2012:
Total bank charges for the period of the statement, R1 860.
A deposit of R18 600 was recorded on 1 June 2012.
Cheque 1136 was recorded on the statement as R2 400 (the correct amount). This
cheque was in favour of a creditor.
A stop-order went through in favour of Cat Insurers for R3 000 for a short-term
insurance on the store.
Interest of R600 was received for the period of the bank statement.
An R/D cheque for R9 420. An investigation revealed that this cheque was received
from a debtor, M. Broke as a final payment of his account of R9 500.
A cheque payment for R1 250. It was established that this was not a transaction of
this business but it was an error made by the bank.
e) Cheque 983 was issued to Sunflower Children’s Home, as a donation.
This organisation has subsequently closed down.
f) Cheque 1123 was reported lost. This was in favour of BLK Services for
renovations to the existing building. A new cheque 1167 was issued.
This transaction was not recorded.
g) The bank statement reflected a favourable balance on 30 June 2012.
30
14. 14 ACCOUNTING (NOVEMBER 2012)
QUESTION 5
CLUBS AND STOCK SYSTEMS (35 marks ; 21 minutes)
The information below was taken from the records of M9 Tennis Club for the financial year
ended 31 December 2011:
INSTRUCTIONS:
5.1 Prepare the Membership Fee account in the General Ledger. (17)
5.2 The club has a kiosk and dining area. Refreshments are sold to members at a
profit mark-up of 25% on cost. The club uses the periodic inventory system to
record refreshment stock.
5.2.1 Calculate the cost of refreshments sold. (3)
5.2.2 Calculate the total amount of refreshments purchased during the year. (6)
5.3 Name another system that the club can use to record stock. (2)
5.4 Is the periodic inventory system an appropriate system for the club to use?
Motivate your answer. (3)
5.5 The chairperson feels that the stock balances should not be so high.
Suggest TWO ways in which stock can be more effectively controlled. (4)
15. (NOVEMBER 2012) ACCOUNTING 15
INFORMATION:
a) Balances on 1 January 2011: (amongst others)
Refreshment Stock 12 450
Accrued Income (Membership Fees) 480
Income Received in advance (Membership Fees) 240
b) Extract from the Analysis Cash Book for the year ended 31 December 2011:
RECEIPTS PAYMENTS
Membership fees 2010 320 Refreshment purchased 22 680
2011 5 430 Membership fees (refunded) 60
2012 360
Entrance fees 1 320
Refreshment sales 52 550
c) Entrance Fees:
New members pay R120 entrance fees once their application is accepted.
d) Membership Information:
Membership fee is R80 per member per year.
New members joining before June each year, pay R50.
Old members, who pay before March, get a R20 discount.
On 1 January 2011, the club had 67 members.
5 of the new members joined before 30 June 2011. All the new members
paid their memberships in full.
The outstanding 2010 fees must be written off, and the defaulting members
taken off the club records.
A member, who paid his 2011 fees in 2010, was transferred to KZN. The
club decided to give him a refund.
Three members did not pay their 2011 membership fees.
e) Refreshment information:
Refreshments are purchased for cash and on credit, but sold for cash only.
Refreshment to the value of R640 was donated to a local school.
Stock of refreshments on 31 December 2011 amounted to R10 420.
35
16. 16 ACCOUNTING (NOVEMBER 2012)
QUESTION 6
ASSET MANAGEMENT (40 marks ; 24 minutes)
The following information appeared in the books of Harry’s Traders for the financial year
ended 29 February 2012.
INSTRUCTIONS:
6.1 Post to the following accounts in the General Ledger:
6.1.1 Equipment (cost) (6)
6.1.2 Asset Disposal (8)
6.2 Complete the Tangible Asset Note to the Balance Sheet.
Show workings for depreciation calculations to score part marks. (21)
6.3 40% of the total equipment is made up of computers and other office devices.
The accountant is of the opinion that the depreciation policy regarding
equipment must be re-visited. Do you agree? Provide TWO reasons. (5)
INFORMATION:
a) Tangible Assets balances
29 FEBRUARY 2012 1 MARCH 2011
Vehicles 235 000 175 000
Equipment 69 900 92 400
Accumulated Depreciation on
Vehicles
? 87 600
Accumulated Depreciation on
Equipment
? 42 200
b) On 1 December 2011, a new vehicle was purchased from BGT Motors on
credit. No vehicles were sold.
c) On 30 June 2011, old equipment was donated to an old age home. The
accumulated depreciation on the furniture donated, was R18 300 on 1 March
2011. The new equipment to replace the old ones will only be purchased in the
next financial year.
d) Depreciation must be provided for as follows:
Vehicles at 15% on cost.
Equipment at 20% on the diminishing balance method.
40
TOTAL: 300