ACCOUNTING GRADE 10 NOVEMBER 2015 - Best Education

ACCOUNTING GRADE 10

NOVEMBER 2015

MARKS: 300

TIME: 3 HOURS

THIS QUESTION PAPER CONSISTS OF 13 PAGES INCLUDING THE COVER PAGE AND AN ANSWER BOOK OF 14 PAGES.

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INSTRUCTIONS AND INFORMATION

Read the following instructions carefully and follow them precisely.

1. Answer ALL questions 2. A special ANSWER BOOK is provided in which to answer all questions 3. 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 blue/black ink to answer the questions

Use the information below as guideline when answering the questions.

QUESTION 1 : 36 MARKS (22 minutes)

TOPIC OF THE QUESTION

THIS QUESTION INTERGRATES WITH:

Financial accounting

Accounting equation

Concepts, GAAP, source documents

Accounting concepts

QUESTION 2 : 29 MARKS(17 minutes)

TOPIC OF THE QUESTION

THIS QUESTION INTERGRATES WITH:

Financial accounting

General Journal

Concepts, GAAP, source documents

Subsidiary journals

QUESTION 3 : 53 MARKS(32 minutes)

TOPIC OF THE QUESTION

THIS QUESTION INTERGRATES WITH:

Financial accounting

Bookkeeping systems Inventory

Concepts, GAAP, source documents Internal control

QUESTION 4 : 44 MARKS(26 minutes)

TOPIC OF THE QUESTION

THIS QUESTION INTERGRATES WITH:

Financial accounting

Salaries and wages journal

Concepts, GAAP, source documents

QUESTION 5 : 87 MARKS(52 minutes)

TOPIC OF THE QUESTION

THIS QUESTION INTERGRATES WITH:

Financial accounting

Financial statements

Balance sheet and notes

QUESTION 6 : 18 MARKS(11 minutes)

TOPIC OF THE QUESTION

THIS QUESTION INTERGRATES WITH:

Financial accounting

Financial statements

Analysis and interpretation

Costing and VAT

QUESTION 7 : 33 MARKS (20 minutes) THIS QUESTION INTERGRATES WITH: Financial accounting Concepts, Ethics

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QUESTION 1

(36 MARKS: 22 MINUTES)

Accounting equation and concepts

1.1 Analyse the following transactions using the table below by showing Account debited, Account credited and the effect on the accounting equation (A = O + L). Assume that the bank balance is favourable for all transactions.

Use the example to guide you.

Example: Paid the telephone account by cheque no.147, R700

NO. ACCOUNT

ACCOUNT

A

O

L

DEBITED

CREDITED

e.g. Telephone

Bank

-700

-700

0

TRANSACTIONS:

1. Sold goods on account to S.Mnini, a debtor for R960 (mark up 60% on cost). 2. Purchased merchandise on credit from Voda Wholesalers for R4 500. 3. Charged debtor, M.Mahlangu, interest at 10% p.a. for three months on his overdue

account, R320. 4. Received R550 from debtor S.Mnini. 5. Paid Municipality for lights and water by cheque, R850.

[24

1.2 Fill in the missing words or amounts

a. Expenses decrease owners' equity on the ________ side. b. Goods sold on credit to customer are recorded in the _________ Journal. c. _____________ is the source document used when trading stock is bought for cash. d. R100, 00 is 10% of ___________. e. The GAAP principle used when only material items are shown in the financial

statements is called ________________. f. All money received by the business is recorded in the ____________Journal.

[12]

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QUESTION 2

(29 MARKS: 17 MINUTES)

General Journal

Vukas Bakers has the following transactions for March 2015.The owner is unsure as to which entries must be entered into the General Journal. Use the given transactions to complete the General Journal in the books of Vukas Bakers. Narrations may be omitted.

Transaction for March 2015

3. B.Thompson has not paid his account of R1 200 for over three months. It has been decided to charge him interest of 12% per month.

7. L.Welman returned stock costing R500. This has been incorrectly recorded in R.Welman's account. The error needs to be corrected.

14. A debtor, S.Tyson, who had been previously written off, paid his account of R230. 16. The bank returned a cheque for R470 received from A.Wolfe in settlement of his account

of R500. The cheque was marked R/D insufficient funds. 22. The owner took stock costing R400 home for personal use. 29. Repairs costing R2 000 was incorrectly debited to the Equipment account. 31. S.Naidoo has been declared bankrupt. She owes R900 to Vukas Bakers. She was able to

pay 30 cents in each rand and the remaining amount to be written off.

QUESTION 3

(53 MARKS: 32MINUTES)

Bookkeeping systems, inventory and debtors

3.1 FORMAL AND INDIGENOUS BOOKKEEPING SYSTEMS

Required

Study the statements in the table below. Decide which statements apply to FORMAL BUSINESS and which apply to INFORMAL BUSINESS. Indicate with a CROSS (X) in the relevant column.

STATEMENT

FORMAL

BUSINESS

1. Has to register with Government

departments

2. Cannot function without a trading

license

3. Business premises can be moved

from one place to another without

notice

4. Must be registered with SARS for

tax purposes.

INFORMAL BUSINESS

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5. Not aware of whether a profit or loss is made, just look at cash available

6. Records of source documents, transactions are sometimes kept in note books just to remind the owner.

7. Always aware of whether the business has made a profit or not.

8. Adheres to principles of GAAP. 9. Records of source documents

and books are kept safe and must always be available. 10. Format of recording depends on the person running the business.

[10] 3.2 INVENTORY

You are provided with the Trading Stock account taken from the Ledger of Lebogang Traders.

REQUIRED: Study the account and then answer the questions that follow.

INFORMATION:

2015 01 Balance July

31 Bank Creditors control Cost of sales

General Ledger of Lebogang Traders

Trading Stock

b/d

16 220 2015 31 Creditors control (c)

July

CPJ

8 770

?

GJ

(a)

6 420

Cost of sales

CRJ

(b)

200

Cost of sales

(d)

Balance

c/d

31 590

500

400 9 100 8 400 13 190 31 590

Aug 1 Balance

b/d

13 190

3.2.1

3.2.2 3.2.3 3.2.4

Indicate the names of the journals associated with the letters (a), (b), (c) and (d).in

the folio column.

(4)

Give one possible explanation for the entry of R400

(1)

Give one possible explanation for the entry of R200

(1)

What is the value of merchandise sold for cash if the business uses a mark-up of

50% on cost?

(4)

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