Primrose High School | Ex Libris Vires



STICKERCENTRE NUMBEREXAMINATION NUMBERNATIONAL SENIOR CERTIFICATE ACCOUNTINGGRADE 12NOVEMBER 2019SPECIAL ANSWER BOOKQUESTIONMARKSINITIALMOD.123456TOTALThis answer book consists of 17 pages.QUESTION 11.1.11.1.21.1.31.13Factory Overhead Cost NoteIndirect labourR 296 500Depreciation on factory plant166 0008DESKS FACTORY 1.2.11.2.2Calculate the total cost of production of finished goods.WorkingsAnswer51.2.3Sihle wants to produce an additional 1 500 desks.Calculate the additional profit he can expect.WorkingsAnswer4Provide a calculation to confirm the break-even point for 2019.WorkingsAnswerCHAIRS FACTORY 1.3.14Comment on the break-even point and the production level achieved.Quote figures.1.3.24Sihle feels that wood raw material was not well controlled.Provide a calculation to support his opinion.Identify TWO possible causes of this problem. Provide a solution for EACH.POSSIBLE CAUSESSOLUTION FOR EACHCause 1Cause 21.3.344Give TWO reasons for the increase in direct labour cost. Provide a solution for EACH.REASONSSOLUTION FOR EACHReason 1Reason 21.3.44TOTAL MARKS45QUESTION 2State THREE advantages of EFTs.Advantage 1Advantage 2Advantage 32.1.132.1.2Janet, the bookkeeper, has been assigned the duty of processing and controlling all EFTs.Explain TWO reasons why the internal auditor is concerned about this.Reason 1Reason 2 4Show changes in the Cash Journals for June 2019.CASH RECEIPTS JOURNALCASH PAYMENTS JOURNAL27 470Provisionaltotals32 400TOTALS2.211Calculate: Bank Account balanceWorkingsAnswer2.34BANK RECONCILIATION STATEMENT ON 30 JUNE 201982.4TOTAL MARKS30Calculate the value of closing stock using FIFO.WorkingsAnswerQUESTION 3 CABINETS 3.16Calculate the % mark-up achieved in 2019.WorkingsAnswer3.2.14Provide TWO points (with figures) to prove that this decision achieved its aims.Point 1Point 23.2.24The CEO feels that this decision also negatively affected the company.Provide TWO points (with figures) to support his opinion.Point 1Point 2Give the directors advice to solve this problem. Explain TWO points.Point 1Point 23.2.342Calculate the stockholding period for lamps (use closing stock).WorkingsAnswerLAMPS 3.33Calculate the number of missing lamps.WorkingsAnswerGive TWO suggestions to solve this problem.Suggestion 1Suggestion 23.454CalculatethevalueoftheclosingstockofTVsetson 30 September 2019 using the specific identification method.WorkingsAnswerTELEVISION SETS 3.57Explain THREE different concerns that George would have about this problem.Concern 1Concern 2Concern 33.66TOTAL MARKS45KEEP THIS PAGE BLANK.QUESTION 44.1.14.1.24.1.34.1.44.1.54.15(i)Calculate: Depreciation for the current yearWorkingsAnswer(ii)Calculate: Carrying value of vehicle soldWorkingsAnswerCalculate: Profit/Loss on sale of assetWorkingsAnswerCalculate: Fixed assets carrying value on 28 February 2019WorkingsAnswer4.2VISIV LTD 4.2.1524Calculatethecorrectnetprofitaftertaxfortheyearended28 February 2019. Indicate (+) for increase and (–) for decrease.WorkingsAnswerIncorrect net profit before tax822 700Correct net profit after tax4.2.29RETAINED INCOME NOTE:Balance at beginning865 300Ordinary share dividendsBalance at end94.2.3VISIV LTDSTATEMENT OF FINANCIAL POSITION (BALANCE SHEET) ON 28 FEBRUARY 2019ASSETSNon-current assetsFixed assetsFixed depositCurrent assetsInventories1 102 000Cash and cash equivalentsTOTAL ASSETSEQUITY AND LIABILITIESOrdinary shareholders' equityOrdinary share capital8 152 000Non-current liabilitiesCurrent liabilities2 900 000Current portion of loanTOTAL EQUITY AND LIABILITIES27What type of audit report did the company receive?14.3AUDIT REPORT 4.3.1Give TWO examples of audit evidence that the auditors would have required regarding this problem.Example 1Example 24.3.22Apart from the current ratio, identify and calculate ONE other financial indicator that the auditors would have used in deciding on this opinion.Identify ONE other financial indicator: Calculate the financial indicator:Explain what the directors could have done to prevent this comment by the auditors. Provide TWO points.Point 1Point 24.3.342TOTAL MARKS7044QUESTION 55.1.15.1.25.1.35.1.45.14Calculate: Income tax paidWorkingsAnswerCalculate: Dividends paidWorkingsAnswerCalculate: Proceeds of shares issuedWorkingsAnswerCalculate: Fixed assets purchasedWorkingsAnswer5.2SUNSET LTD 5.2.14465% operating profit on salesWorkingsAnswerNet asset value per shareWorkingsAnswerDebt-equity ratioWorkingsAnswer45.2.2Calculate financial indicators for the year ended 28 February 2019:5.3HORIZON LTD and OPTIMA LTD5.3.1Explain why directors should be interested in the price of their companies' shares on the JSE.2Calculate the number of additional shares in Horizon Ltd that Mike wasable to buy on the JSE in 2019.WorkingsAnswer3Comment on the price that Mike paid for these shares and provide TWO reasons why he might have been satisfied to pay this ment (with figures): Reason 1 :Reason 2:65.3.2Explain your opinion on which company has the better dividend pay-out policy. Quote figures.6Compare and comment on the % return on equity earned by EACH company. Quote figures.4Mike feels that the earnings per share (EPS) of Optima Ltd is much better than that of Horizon Ltd. Explain why he feels this way. Quote figures or calculations. 5Explain TWO decisions taken by the directors of Horizon Ltd in response to the state of the economy, and how these decisions will affect the company in future.Decision 1 (with figures): Decision 2 (with figures): Effect on Horizon Ltd in future:Explain TWO decisions taken by the directors of Optima Ltd that affectrisk and gearing. Quote and comment on TWO financial indicators.Decision 1 (with figures):Decision 2 (with figures):Quote and comment on TWO financial indicators that affect risk and gearing.5.3.368TOTAL MARKS75QUESTION 6CASH BUDGETNov.2019Dec.2019Jan.2020Printer boughtDepreciationInsuranceLoan receivedLoan repaymentsInterestPROJECTED INCOME STATEMENTNov.2019Dec.2019Jan.20206.111Thembiispreparingprojectionsfortheperiodcommencing 1 November 2019. Thembi does not grant discount for early payment.Calculate the % of debtors who settle their accounts in the 2nd month following the credit sales transaction month.WorkingsAnswerCalculate the % of debtors written off as bad debts at the end of the 3rdmonth following the credit sales transaction month.WorkingsAnswer6.234Office workers are unhappy with the increase that Thembi gave them on 1 October 2019. Explain what she should say to them. Provide TWO points. Quote figures or a calculation.ExplanationsFigures/CalculationsPoint 1Point 26.3.166.3.2Thembi pays her son, Jacob, to deliver and install carpets for customers. She budgets R2,80 per metre for ment on the control of this expense. Quote figures or a calculation.46.3.3A new competitor commenced trading in the area on 1 September 2019.Provide figures to illustrate the impact on sales in September.2Explain THREE decisions that Thembi took in October in response to the new competitor. Quote figures or a calculation.Explanation (with figures)Decision 1Decision 2Decision 366.3.4Calculate the actual amount payable to creditors in November 2019.WorkingsAnswer4TOTAL MARKS40TOTAL:300 ................
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