GR 10 Engels Questions

Accounting – Grade 10 1 Questions 2023
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GRADE 10
ACCOUNTING
QUESTIONS- 2023
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MARCH TESTS

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QUESTION 1: SOURCE DOCUMENTS AND CASH AND CREDIT JOURNALS

(40 marks, 24 minutes)
1.1 CONCEPTS
REQUIRED:
Match the transaction in column 1 with the correct document that would have
been used to record the entry in the journals. Record only the correct letter
to indicate the document in your Answer book.
TRANSACTION SOURCE DOCUMENT

1.1.1 Send goods back to the supplier A Cash register tape/roll
1.1.2 Cash sales B EFT
1.1.3 Pay the electricity bill C Credit note
1.1.4 Debtor return goods to the D Debit note
business
(4)
1.2 CASH AND CREDIT JOURNALS
The following information was extracted from the records of Thipanyane Traders for
January 2018. Do not total the journals. The business maintain a mark-up
percentage of 50% on cost.
REQUIRED:
1.2.1 Complete the Debtors Journal for January 2018. (6)

1.2.2 Complete the Cash Receipts Journal for January 2018. (14)
1.2.3 Complete the Cash Payments Journal for January 2018. (16)
TRANSACTIONS FOR JANUARY 2018:
3 Received an EFT transfer from POP Bank for R60 000. This was for a loan
negotiated in December 2017.
4 Invested R15 000 in a fixed deposit at 10% p.a. interest at SLY Bank. Paid
the amount electronically.
5 A debtor, G. Ntusimi bought goods on credit for R4 500. (Invoice 212)
9 Issued EFT no. 334 for R6 480 to Ncakane Stores for purchasing of trading
stock.
12 Cash sales for the day amounts to R15 000 (CRR 11) .
14 Issued EFT for R320 to Tshehla Transport for the delivery of the goods
purchased on 9 January.

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15 Made an EFT payment in favour of Rakotsoana Store for the following:

• Trading stock for R7 330
• Computer for office use , R8 400
16. Credit sales per invoice to N. Sicwetsha amounts to R1 200.
18 Received an EFT payment form B Mashiane (a debtor) for R970 in
settlement of his account of R1 020. (Receipt 03)
25 Issued an EFT for R7 600 to Thateng Traders this is the monthly instalment
for purchases on credit. A discount of 5% was deducted when this payment
was made.
28 The business sold trading stock on credit for R960 to a debtor, B. Ben.
29 Bank statement received from TT Bank, showed the following:
• Service fees R95
• Cash deposit fees R135
• Credit card levies R170
• Interest on credit balance R120
• Debit order payment to BT Insurers for the insurance on the owner’s
car, R365.
40
QUESTION 2
GAAP PRINCIPLES AND LEDGER ACCOUNTS (30 marks, 18 minutes)
2.1 CONCEPTS
Choose a correct GAAP principle from the alternatives provided to suite the
sentences listed below. Write only the principle next to the question number
(2.1.1 – 2.1.5) in the answer book (5)
Matching, Going concern, Business entity, Materiality, Historical cost

2.1.1 The financial affairs of the owner and the business should be kept
separate.
2.1.2 All fixed assets should be recorded in the books of the business
at the amount that was original paid for them.
2.1.3 Drawing up the financial statements so that all income earned,
and expenses incurred in a particular year are taken into account.
2.1.4 The financial statements of a business should be prepared on the
assumption that the business will continue to operate in the
foreseeable future.
2.1.5 All significant information should be disclosed separately in the
financial statements.

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2.2 GENERAL LEDGER
The information given below was extracted from the accounting records of Nosi
Traders during February 2018.
REQUIRED:
Prepare the following ledger accounts in the General Ledger:
2.2.1 Bank (6)

2.2.2 Trading stock (9)
2.2.3 Debtors Control (6)
2.2.4 Sales (4)
Balances/Totals in the General ledger on 1 February 2018:
R
Bank 13 555 (Dr)
Trading stock 75 456
Debtors control 43 210
Sales 88 600
SUMMARY OF THE JOURNALS OF NOSI TRADERS FOR FEBUARY 2018
CASH RECEIPTS JOURNAL CRJ - 5

Debtors Sundry
Bank Sales Cost of sales
Control accounts
106 500 66 300 44 200 13 620 26 580
CASH PAYMENTS JOURNAL CPJ – 5

Creditors Sundry
Bank Trading stock Stationery
control accounts
111 700 ? 7 400 35 690 11 700
CREDITORS JOURNAL CJ - 5
Creditors control Sundry
Trading stock Stationery Equipment
accounts
168 900 64 400 13 400 55 800 35 300
DEBTORS JOURNAL DJ - 5
Sales Cost of sales
54 000 36 000
30

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QUESTION 3: ACCOUNTING EQUATION, INTERNAL CONTROL AND ETHICS

3.1 ANALYSIS OF TRANSACTIONS
REQUIRED:
Use the table provided to show the account debited, account credited and the effect
on the accounting equation foe each transaction. Indicate a decrease/minus with (–)
sign, an increase/plus with (+) sign and 0 for no effect. (20)
Example: Bought stationery for R270 and paid by EFT.
No Account Account Assets Owner’s Liabilities

debited credited equity
e.g. Stationery Bank –270 –270 0
TRANSACTIONS:
3.1.1 Purchased equipment on credit by ABC Traders for R6 456.
3.1.2 Pay the owners parking fine out of the petty cash for R350.
3.1.3 Credit sales for the day amounts to R9 000. Cost of sales R6 000.
3.1.4 Issued a receipt to D. Jonny for R950 for settling his account.
3.2 INTERNAL CONTROL AND ETHICS
The owner of Parys Traders suspects that the staff is stealing stock. He is confident that it is
not customers because of the security cameras that were installed.
REQUIRED:
3.2.1 Provide a reason why the owner suspect that stock is being stolen. (2)
3.2.2 Suggest TWO internal control measures that the owner can employ to
resolve this problem (2)
3.2.3 You are the manager in a business. It was brought to your attention that
certain employees were receiving gifts and discounts from suppliers in
exchange for granting them contracts. Provide THREE points that you would
include in the business code of ethics which will make it clear to the staff as
to what is acceptable and unacceptable conduct. (6)
30
TOTAL MARKS: 100

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QUESTION 1: SOURCE DOCUMENTS AND JOURNALS 30 marks, 18 minutes
1.1 CONCEPTS
Indicate if the following statements true or false is.

1.1.1 When goods are send back to a provider because it was not
according to the samples, the business will issue a credit note.
1.1.2 For credit card sales the source document is a cash register tape
1.1.3 The source document used for cash payments is an EFT
1.1.4 A debtor sends goods back. The business issue a credit note to that
person. (4)
1.2 CASH JOURNALS

Use the information given and complete the two journals asked. It is not
necessary to close off the accounts. Complete:
1.2.1 The Cash receipts journal of PG Stores for March 2018. (13)
1.2.2 The Cash payments journal of PG Stores for March 2018. (13)
TRANSACTIONS:
5 FNB paid R153 750 into our account. It is for a fixed deposit of R 150 000
that matured, plus interest.
7 Credit card sales according to cash register tape 162, R72 000. Cost price
was R24 000.
9 A debtor, C van Zyl, that owed R4 500, made an electronic payment into
PG Stores account for R4 250.
10 A loan was taken out 3 months ago at ABSA for R 180 000 at 12 % per
annum. The loan will be paid back in 8 equal instalments, over 2 years.
The first instalment, plus 3 months interest is paid.
12 Cash sales to M Kruger, R ?. The cost price was R1 000 and the mark-up
is 20 % on cost price.
15 Buy trading stock electronical from Makpro, R6 000. Transport costs of

R1 200 is paid to Speedy Deliveries as well.
19 A tenant, N Kemp, pays rent directly into the bank account of the business.
The rent is R6 500 per month. The rent increased by 5 % on 1 March 2018.
23 Draw cash from the ATM to pay the following:

• Wages for week, R2 400
• The owner pays his daughter’s monthly school fees, R2 500

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25 Issue an EFT for R24 000 to Mokolope Stores. Mokolope stores gives us
2 % discount on this amount.
30 Receive the bank statement from Nedbank, where the business holds a
current account. The following information is on the bank statement:
• Credit card fees, R70
• Cash handling fees, R0
• Service fees, R 150
• Interest on current account, R1 500
The bank informs us that an overdraft of R10 000 was approved
30
QUESTION 2 GAAP; GENERAL AND SUBSIDAIRY LEDGER 40 marks; 24 minutes
2.1 GAAP PRINCIPLES

Choose the correct GAAP – principle from the alternatives provided to match
the sentences given. Write only the principle next to the question number
(2.1.1 – 2.1.5) in your answer book.
Matching principle, going concern principle, business entity principle,

materiality principle, historical cost principle
2.1.1 The financial statements are drawn up in such a way as if the

business will continue to operate in the unforeseeable future.
2.1.2 The financial information of the business and that of the owner
must be kept separate.
2.1.3 All relevant information must be shown separately in the

financial statements of a business.
2.1.4 The financial statements are drawn up in such a way that the
income and expenses of that particular year is taken into
account.
2.1.5 All fixed assets are recorded at the original purchase price.
(5)

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2.2 GENERAL LEDGER (24)
REQUIRED:
Use the information provided and draw up the following accounts in the records of Rain
Traders for February 2019. The accounts must be balanced.
REQUIRED:
2.2.2 Debtors control (12)
INFORMATION:
A. Balances on 1 February 2019:

R
B Summary of transactions for February 2019. The business maintains

a mark –up percentage of 25% on cost price .
Cash Receipts Journal
Sales Cost of Debtors control
Sales Receipts Discount allowed
25 000 ? 10 000 1 200
Debtors Journal
Sales Cost of sales
? 35 000
Debtors Allowances Journal
Debtors Cost of sales
allowances
540 120
Cash Payments Journal
Trading Stock Stationery
60 000 600
Creditors Journal Creditors Allowances Journal
Trading stock Trading stock
12 000 4 500
Petty Cash Journal
Trading stock Debtors control
340 100

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2.3 DEBTORS LEDGER (11)

REQUIRED:
2.3.1 Use the information and draw up the Debtors ledger of R Muller in the books
of Andrews Traders. The markup %
INFORMATION:
MAY 2018
1 Amount owed by R Muller, R450.
Sold goods on credit to R Muller as per invoice 56. The cost price of
15
the goods was R3 600.
R Muller pays R1 500 of on her account by means of an electronic
18
transfer.
A 5 % trade discount is allowed to R Muller on all goods purchased.
24 The cashier neglected to give it to her on the sales of the 15th.
Send credit note 7 to R Muller.
26 Cash sales to R Muller, R7 600.
30 Sold goods on credit to R Muller as per invoice for R6 600.
40

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QUESTION 3:ACCOUNTING EQUATION, INTERNALCONTORL AND ETHICS

30 marks; 18 minutes
REQUIRED:
Use the table provided to record account debited, account credited and the effect on
the accounting equation for every transaction. Show a decrease with a (–) sign, an
increase with a (+) sign and no effect with a 0. (22)
Example: Buy pens and pencils for R 270 and pay per EFT.
no. Account Account Assets Owners’ Liabilities

debited credit equity
Ex Stationery Bank –270 –270 0
TRANSACTIONS:
3.1.1 Credit sales as per invoice 123 to B Louw, R1 200 (cost of sales amounts to
R900)
3.1.2 Computers worth R10 500 was delivered at the business, with an invoice from
Compuden.
3.1.3 Compuden forgot to give us our normal 5 % trade discount. Bring it into
account.
3.1.4 B Louw asked for discount of 10 % on the amount she bought according to
invoice 123. The discount was awarded.
3.2 ETHICS AND INTERNAL CONTROL
REQUIRED
3.2.1 Identify TWO internal control concerns that contributed to the problem
of the petty cash box and the petty cash journal that did not match. (4)
3.2.2 Provide Two solutions to rectify the problems that Inge had. (4)
Problems with the petty cash

Inge manages the petty cash for Greyling Traders. She is not sure how it is
supposed to be done. The petty cash is kept on her desk, and anyone can
come and take money if they want. They complete the source document and
brings it back at the end of the month. She realizes that there is a lot less
money in the petty cash box and there are no evidence for the transactions.
30
TOTAL MARKS: 100

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QUESTION 1: CASH JOURNALS (50 marks, 30 minutes)
1.1 Match the account in column A with the correct concept in column B.
Record only the correct letter to indicate the concept in your Answer book.
COLUMN A COLUMN B
1.1.1 Trading Stock A Income
1.1.2 Creditors control B Non-current asset
1.1.3 Sales C Current Liability
1.1.4 Land and building D Current Asset
1.1.5 Cost of sales E Expense
(5)
1.2 CASH JOURNALS
The following information was extracted from the records of Montego Traders for
February 2020. The business maintains a mark-up percentage of 80% on cost.
REQUIRED:
Prepare the following journals:
1.2.1 Cash Receipts Journal (20)
1.2.2 Cash Payments Journal (25)
TRANSACTIONS FOR FEBRUARY 2020:

Day The owner, D. Sello, deposited R137 000 in the business bank account to
1 increase his capital contribution. (Receipt 1)
3 Issued EFT no. 101 to Mashiane Traders for:
• Trading stock R9 600
• Equipment R4 600
5 Cash sales for the week amounts to R17 010. (CRR 23)
7 Invested R40 000 in a fixed deposit at 10% p.a. interest at DD Bank. This
transaction was done electronically.
9 Credit sales per invoice 31 to M. Coetzee for R6 624.
12 Issued EFT for R3 854 to Harry Stores for purchasing of goods.
14 Pay Mkize Traders per EFT for:
• Trading stock for R7 540
• Equipment for R6 460
15 Buy a new vehicle for R180 000 from Delta Motors per EFT.
16 Issued EFT to Minty Traders for the purchases of trading stock for
R13 400

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17 Pay DD Carriages R560 per EFT for the delivery of goods on the 16 th.
18 Received a EFT form A. Vorster for R1 350 in settlement of her account of
R1 475. Issue a receipt to him.
19 Received a loan from BB Bank for R80 000. The money was directly
deposited in the business bank account.
21 Receive an EFT payment, R8 000 from T. Lilly for the monthly rent.
23 Issued a EFT for R1 250 to Nkomo Traders for settling his account of
R1 375.
30 Bank statement received from ASBA Bank, showed the following:
• Service fees R211
• EFT fees R89
• Credit card levies R188
• Interest on bank overdraft R121
50
QUESTION 2: GAAP PRINCIPLES AND LEDGER ACCOUNTS

2.1 CONCEPTS
Choose a correct GAAP principle from the alternatives provided to suite the
sentences listed below. Write only the principle next to the question number
(2.1.1 – 2.1.4) in the answer book
Materiality, Going concern, Business entity,

Historical cost and Matching
2.1.1 All fixed assets should be recorded in the books at the original
purchase price.
2.1.2 Expenses are offset against income generated by those
expenses. Income and expense items are allocated to the
correct time.
2.1.3 The financial affairs of the owner and the business should be
kept separate.
2.1.4 The financial statements of a business should be prepared on
the assumption that the business will continue to operate. (4)

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2.2 MOTLOUNG TRADERS
The information given below was extracted from the accounting records of
Motloung Traders during January 2020. The business maintains a mark-up of 50%
on cost.
REQUIRED:
Prepare the following accounts in the General Ledger:

2.2.1 Bank (5)
2.2.4 Creditors Control (6)
2.2.5 Interpretation of ledger accounts:
• Refer to the Bank account. Should Motloung Traders be satisfied
with the cash flows for the month? Explain and quote figures to
support your opinion. (3)
• Explain why a business must not keep too much stock on hand. (2)
INFORMATION
Balances in the General ledger on 1 January 2020:
R
Bank 12 564 (Cr)
Trading Stock 65 755
Debtors Control 63 000
Creditors’ control ?
List of creditors on 1 January 2020
R
DD Traders 30 000
XYZ Suppliers 27 500
SUMMARY OF THE JOURNALS OF MOTLOUNG TRADERS FOR

JANUARY 2020
CASH RECEIPTS JOURNAL CRJ 1

Cost of Sundry
Bank Sales Debtors control
sales accounts
Receipts Discount
99 500 61 500 41 000 23 000 1 500 15 000

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CASH PAYMENTS JOURNAL CPJ 1

Trading Sundry
Bank Stationery Creditors control
stock accounts
Payments Discount
118 200 52 350 11 400 41 700 2 500 12 750
30
QUESTION 3: ACCOUNTING EQUATION (20 marks, 10 minutes)
REQUIRED:
For each transaction use the table provided to show the account debited, account
credited and the effect on the accounting equation. Indicate a decrease/minus with
– sign, an increase/plus with + sign and 0 for no effect. Assume that Bank is always
favourable. (20)
Example: Pay wages, R650 by EFT.
No Account Account Assets Owner’s Liabilities

debited credited equity
e.g. Wages Bank – 650 – 650 0
TRANSACTIONS:
3.1.1 Receive R5 000 from a tenant for the monthly rent.
3.1.2 Purchased goods for cash for R7 500.
3.1.3 Cash sales to R. Rama amounts to R6 600. Cost of sales R4 400.
3.1.4 Issued a EFT to Dawie Traders for R940 for settlement of our
account of R1 000.
20
TOTAL MARKS: 100

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QUESTION 1: JOURNALS (75 marks, 40 minutes)

The folllowing information is an extract out of Malini Traders books for March 2021.
The busniss maintains a profit margin of 80 % on cost price.
REQUIRED
1.1 Draw up the following journals for March 2021:
1.1.1 Cash Receipts journal (Bank, Sales, Cost of sales, Debtors control
and Sundry accounts)
1.1.2 Cash Payments Journal (Bank, Trading stock, Stationery, Wages,
Consumable stores and Sundry accounts)
1.1.3 Creditors’ journal (Creditors control, Trading stock, Stationery.
Consumable stores and Sundry accounts)
1.1.4 Creditors’ allowances journal (Creditors control, Trading stock,

Stationery. Consumable stores and Sundry accounts)
Transactions
March
1 The owner, M Fourie, deposited her capital contribution of R150 000.
Bought trading stock of R6 800 and stationery of R2 700 at TJ Traders

received an invoice.
2 Paid Willie Traders via EFT for trading stock, R14 600, stationery, R415
and consumable stores, R1 250
Made an internet payment to buy a new vehicle from Vrede Motors,
R125 000.
7 Cash sales for the week, R4 860.
Draw money from the local ATM to pay the weekly wages , R3 500.
8 Bought from KA Stores the following and received an invoice:
• Trading stock, R13 200
• Stationery, R2 300
• Consumable stores, R5 900
10 Credit card sales for the day, R8 100.
Received R4 000 from M Masabi for partial settlement of his account.
12 Send the following back to KA Stores:
• Stationery, R450
• Consumable stores, R520
Made and electronic transfer to BB stores for the following:
• Equipment, R14 900

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14 Paid the weeks wages, R3 500

Received R950 from M de Bruyn in settlement of her account of
R1 000.
18 Bought per invoice from TJ Traders:
• Equipment, R520
19 Cash sales for the day, R?. Cost of sales amounts to R11 200.
21 Send the following goods back to TJ Traders:
• Trading stock, R900
• Stationery, R120
• Equipment, R20
22 Paid the weeks wages, R3 700
Bought from KK Traders paid by EFT:
• Equipment for R4 800
23 Settled the account of TJ Stores and received a discount of R1 120.
Cash sales for the day, R 6 120. Cost of sales amounts to R3 400.
Paid delivery fees of R280 to Speedy stores for delivery of trading
stock by EFT.
24 Bought goods worth R13 100 and consumable stores of R1 600 from
ABC Traders. Received an invoice.
25 Send goods worth R3 000 back to ABC Traders.
28 The owners drew R3 000 cash for own use.
29 Debit order of R1 600 was paid to the City council for property tax.
30 Received the bank statement from WW Bank:
• Bank charges for the month, R235
• Interest on current account, R120
• R6 000 from D. Diaan for monthly rent.
75

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QUESTION 2: GAAP-PRINCIPLES AND GENERAL LEDGER ACCOUNTS

CONCEPTS
2.1 Choose the correct GAAP principle from the alternatives provided to fit to
the correct explanation given. Write only the letter (A – D) next to the
question number (2.1.1 – 2.1.4) in your answer book.
Concept Explanation
Incomes and expenses have to be

2.1.1 Business entity A
recorded in the correct financial year
The assumption that the business will
2.1.2 Historical cost B
continue in the future
Going concern The financial matters of the owner is
2.1.3 C
kept separate from the business
All assets are valuated at the original (4)

2.1.4 Matching D
cost price
2.2 RUBEN TRADERS
The information below is an extract from the January 2021 accounting records. The
business maintains a profit margin of 50 % on cost price.
REQUIRED:
Draw up the following ledger accounts in the general ledger:

2.2.1 Bank (5)
2.2.4 The owner suspects that cash is being stolen from the business. Give
TWO internal control measures to prevent this in future.
(2)
INFORMATION:
Balances in the general ledger on 1 January 2021:
R
Bank 6 500 (Cr)

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SUMMARY OF THE JOURNALS OF RUBEN TRADERS FOR JANUARY

2021:
CASH RECEIPTS JOURNAL CRJ 1

Cost of Debtors control Sundry
Bank Sales
sales accounts
Received discount
114 500 66 000 44 000 24 500 1 700 24 000
CASH PAYMENTS JOURNAL CPJ1

Trading Creditors control Sundry
Bank Stationery
stock accounts
Payments Discount
122 700 53 600 10 300 44 000 3 600 14 800
CREDITORS JOURNAL CJ 1
Creditors Trading Sundry
Stationery Equipment Vehicle
Control stock accounts
118 200 52 350 11 400 2 500 41 700 12 750
DEBTORS JOURNAL DJ 1
Sales Cost of sales
90 000 60 000
25
TOTAL MARKS: 100

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1.1 CASH JOURNALS
The following information was extracted from the records of Skillie Traders
for February 2022. The business maintains a mark-up percentage of 80%
on cost. Do not total the journals.
REQUIRED:
Prepare the following journals:
1.1.1 Cash Receipts Journal (16)
1.1.2 Cash Payments Journal (29)
TRANSACTIONS FOR FEBRUARY 2022:

1 Made an EFT payment to Postnet to pay the January 2022 telephone
account for R2 980.
3 EFT received from Eybers Bank for R320 000 , this was a loan that was
negotiated during February 2022 at 18% p.a. interest.
5 Cash sales, R43 200 for the week.
7 I. Ingemar, a debtor settled her account by doing an EFT payment for
R12 825. She qualifies for a 5% discount on this payment. She has
deducted the discount.
9 Paid a creditor, Bell Stores, R22 600 as part payment of our account.
Received a discount of R1 400 on this amount. The payment was
made electronically.
12 Purchase trading stock from Mduma Suppliers, R36 500 and
consumables stores. EFT payment was made for R44 900.
13 EFT payment in favour of Fast Carriers for delivery of the trading stock
for R3 500.
14 Paid Paper and Co R2 690 by EFT for stationery purchased.
16 EFT payment to Jonas Stores for the following:
• Goods, R14 450
• Computer for office use R34 200
23 Electronic deposit of R24 600 was made by M Nel (a debtor) as partial
payment of her account.
26 EFT credit for March and April rental received from VX Agency,
R16 600

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28 Bank statement from Eybers Bank showed the following:

• Service fees R455; cash deposit fees R184; credit card levy R381
and interest on overdraft R1 230.
• Debit order payment, R8 500 to BB Insurers.R2 000 for the owner’s
car and the rest for the business vehicles.
45
QUESTION 2: LEDGER ACCOUNTS AND INTERPRETATIONS

2.1 LITCHFIELD STORES
The information given below was extracted from the accounting records of
Litchfield Stores during February 2022. The business maintains a mark-up
of 60% on cost.
REQUIRED:
Prepare the following accounts in the General Ledger:

2.1.1 Bank (6)
2.1.3 Creditors Control (8)
2.1.4 Sales (4)
INFORMATION:
A. Balances/Totals on 1 February 2022:
R
Bank (Dr) 45 900
Creditor’s control 94 200
Sales 155 800
B. Totals from the Journals on 28 February 2022:
Debtors Journal DJ1 Debtors Allowances Journal DAJ1

Sales 107 040 Debtors’ allowances 27 000
Cost of sales 66 900 Cost of sales 15 000

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Cash Receipts Journal CRJ1 Cash Payments Journal CPJ1

Bank 186 500 Bank 165 300
Sales 120 000 Trading stock 96 500
Cost of sales ? Equipment 34 400
Debtors: Receipts 52 000 Creditors: Payments 29 700
Discount 9 200 Discount 2 900
Sundry accounts 14 500 Sundry accounts 4 700
Creditors Journal CJ1 Creditors Allowances Journal CAJ1

Creditor’s control 179 000 Creditor’s control 13 780
Trading stock ? Trading stock 5 200
Equipment 45 000 Equipment 4 600
Consumables 22 100 Consumables 1 780
2.2 JARDIM TRADERS
REQUIRED:
Study the given Debtors Control ledger account and answer the following
questions:
2.2.1 Provide the details for the entry of R21 000 on the credit side. (1)
2.2.2 Provide the details for the entry of R17 000 on the credit side. (1)
2.2.3 Provide the journal folio for the entry of R42 000 on the debit side. (1)
2.2.4 Which source document will support the entry of R21 000 on the
credit side? (2)
2.2.5 How can the owner verify that the closing balance is correct? (2)
INFORMATION:
GENERAL LEDGER
BALANCE SHEET ACCOUNTS SECTION
Dr DEBTORS CONTROL B5 Cr
202 202
2 2
Feb 1 Balance b/d 51 000 Feb 28 ? DAJ 21 000
28 Sales ? 42 000 ? CRJ 17 000
Discount allowed CRJ 800
Balance c/d 54 200
93 000 93 000
Mar 1 Balance b/d 54 200
35

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QUESTION 3: GAAP AND ACCOUNTING EQUATION (20 marks, 15 minutes)
3.1 Match the GAAP principle in column A with the correct concept in
column B. Write only the correct letter to indicate the concept in your Answer
book.
COLUMN A COLUMN B
3.1.1 Business entity A Expenses and income must be
recorded in the correct time period.
3.1.2 Going concern B Assets are recorded at the original
price that was paid.
3.1.3 Matching C Financial Statements are prepared
on the assumption that the business
will continue in the foreseeable (4)
future.
3.1.4 Historical cost D The affairs of the owner and the
business must be kept separate.
3.2 HILKE TRADERS
REQUIRED:
Analyse the effect of the following accounts according to the table provided.
Assume the bank balance is favourable at all times. (16)
INFORMATION:
Effect on
No. Account debited Account credited
A O L
E.g. Trading stock Creditor’s control + 0 +
(a) Drawings Bank
(b) Debtor’s control Sales
Cost of sales Trading stock
(c) Rent expense Bank
(d) Creditor’s control Stationery
(e) Bank Capital
(f) Vehicles Bank
(g) Consumable stores Creditor’s Control
20
TOTAL MARKS: 100

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JUNE
EXAMINATIONS

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QUESTION 1: GAAP AND ACCOUNTING EQUATION
REQUIRED:
1.1 Match the GAAP Principles in COLUMN A with the correct explanations in COLUMN
B. Write only the letter (A – F) next to the question number (1.1.1 – 1.1.5) in the
ANSWER BOOK.
COLUMN A COLUMN B
1.1.1 Business Entity A Income and expenses incurred to
generate that income are recorded in the
same accounting period.
1.1.2 Historical Cost B Financial statements are prepared
conservatively.
1.1.3 Matching Principle C Assets are recorded at their original cost.
1.1.4 Going Concern D Financial statements are prepared with
the assumption that the business will
continue in the future.
1.1.5 Prudence E Transactions that do not have significant
effect on the outcome of the business’
financial results are not recorded if it
requires money to do so.
F The personal affairs of the owner must
be kept separate from that of the business
(5)
1.2 RAMAHODI TRADERS

The given information relates to Ramahodi Traders for 31 May 2018.
REQUIRED:
1.2.1 Show effects of the following adjustments on the Accounting
Equation.
ADJUSTMENTS:
A. The owner, R Ramahodi, donated stationery to the charity welfare,
selling price R1 650.
B. Sold goods for cash, R660 (Cost of Sales R440)
C. Purchased goods on credit from Gallileo Suppliers, R3 740.
D. S Mateka, a debtor, paid his full account of R1 100 by EFT 111 of
R960, R140 discount allowed.
E. Zumba Traders owes R500 and was declared insolvent, his estate
paid 60 cents in the rand, the rest must be written off as irrecoverable. (27)

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QUESTION 2: LEDGER ACCOUNTS AND INTERPRETATIONS

(50 marks; 30 minutes)
The following information appeared in the books of Tello Traders for May 2018. All
goods are sold at a profit mark-up of 50% on cost.
REQUIRED:
2.1 Post to the following accounts in the General Ledger:
• Bank (7)
• Debtors Control (12)
• Cost of Sales (9)
INFORMATION:
A. Balances and totals on 1 May 2018:
R
Bank (Dr) 13 550
Cost of sales 49 987
B. Totals from the journals on 31 May 2018:

DEBTORS CONTROL
COST OF SUNDRY
BANK SALES DISCOUNT
SALES RECEIPTS ACCOUNTS
ALLOWED
99 999 62 222 41 482 22 222 3 333 15 555

CREDITORS CONTROL
TRADING SUNDRY
BANK WAGES DISCOUNT
STOCK PAYMENT ACCOUNTS
RECEIVED
102 300 65 400 2 450 23 950 2 785 15 000
Debtors Journal Debtors Allowances Journal

COST OF DEBTORS COST OF
SALES
SALES ALLOWANCES SALES
24 600 ? 6 600 4 400
General Journal
GENERAL LEDGER DEBTORS LEDGER CREDITORS LEDGER
DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
1 234 246 1 212 4 321

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2.2 ABC FURNISHERS

You are provided with the Creditors Control Account which appeared in the
Ledger of ABC Furnishers for May 2018. It is their policy to try to settle
creditors' accounts as quickly as possible even though the creditors grant
30 days’ credit.
REQUIRED:
Study the following account and answer the questions that follow.
CREDITORS CONTROL
2018 Bank and 47 000 2018 Balance b/d 28 000
May 30 CPJ May 1
discount
Sundry 6 900 Sundry CJ 34 500
accounts / accounts /
CAJ
Total returns Total
purchases
Sundry 200 Sundry GJ 500
GJ
accounts accounts
Balance c/d 8 900
63 000 63 000
2018 1 Balance b/d 8 900
June
QUESTIONS:
2.2.1 Name the document which supports the entry of R34 500 on the credit
side. (2)
2.2.2 Give ONE possible explanation for the entry of R500 on the credit side. (2)
2.2.3 Creditors charged ABC Furnishers interest on overdue accounts. How
can this be avoided in future? Give TWO suggestions. (4)
2.2.4 The balance on the creditors list is not the same as the one in the
Creditors Control account. What should the bookkeeper do to align
them? Give TWO suggestions. (4)
2.2.5 ABC Furnishers is not happy with the quality of furniture it is getting
from its suppliers. Provide a figure with an explanation to support your
answer. (4)
2.3 INTERNAL CONTROL OF KANI TRADERS
The owner, Kananelo Tsotetsi, is concerned about cash deposits. The
R23 000 of the cash sales received on 12 January 2018, was only deposited
in the bank on 27 January 2018.
REQUIRED:
2.3.1 Explain the problem relating to cash deposits. Quote evidence to

support her concern. Give TWO strategies to prevent this in future. (6)
50

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QUESTION 3: DEBTORS LEDGER (15 marks; 10 minutes)
The following information appeared in the books of Fralize Traders.

REQUIRED:
3.1 Complete the Debtors Ledger of D. Dawie for April 2018.

TRANSACTIONS
April
1 The amount owed by D. Dawie to the business amounted to
R2 134.
5 Sold goods for R1 375 on credit to D. Dawie as per invoice 23.
9 Received cash from D. Dawie for R1 995 as settlement of his
account as on 1 April 2018. Issued receipt 555.
12 Sold goods with a value of R790 on credit to D. Dawie as per
invoice 88.
16 Issued credit note number 154 to D. Dawie for R415.
20 D. Dawie paid the business R950 per EFT. Receipt no 598 was
issued to him.
23 D. Dawie bought R960 goods.
24 Charge the debtor D. Dawie with R25 interest.
30 Wrote the account of D. Dawie off as irrecoverable.
15

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QUESTION 4: CONCEPTS, SALARIES JOURNAL AND INTERNAL CONTROL

4.1 Indicate whether the following statements are TRUE or FALSE. Write
only 'true' or 'false' next to the question number (4.1.1–4.1.4) in the
ANSWER BOOK.
4.1.1 Salaries are paid weekly per EFT.
4.1.2 Wages are paid weekly and in cash.
4.1.3 UIF is a compulsory deduction of 1% and only paid by the employees
and employers.
4.1.4 Only the employers pay a 1% skills development levy. (4)
4.2 INTERNAL CONTROL: BYBY WHOLESALERS
Ronnie, the bookkeeper, issues invoices, credit notes, and collects cash from
debtors and deposit the money in the bank.
4.2.1 Identify what is wrong with the job description of Ronnie? (2)
4.2.2 Name THREE internal control measures that needs to be adhered to

regarding Ronnie’s job description. (6)
4.3 The following information appeared in the books of Servaas Traders for May
2018.
REQUIRED:
4.3.1 Complete the Salaries journal for May 2018. (33)
INFORMATION
Servaas Traders employed two people to control the business. The details are
as follows:
Employee Position Basic salary PAYE Medical Aid Pension

per month fund
B. Bushien Office R14 800 per 23 % of gross R530 7%
manager month
P. Piet Bookkeeper R116 400 per R1 940 per R225 R680 per
annum month month

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Other deduction:
1. All members contribute 1% of their basic salary to the

Unemployment Insurance fund (UIF).
The employer’s contribution is as follows:

1. Contributes 10% of the basic wage to the pension fund.
2. Contributes R2 for every R1 that the employee pays to medical
aid.
3. Contribute 1% of gross salary to the UIF.
4. Contribute 1% of gross salary to the Skills development Levy.
45

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QUESTION 5: YEAR-END ADJUSTMENTS (50 marks; 35 minutes)

5.1 The Pre-adjustment Trial Balance of Woolmer Sport Traders on
28 February 2018, the end of the accounting period is given.
REQUIRED:
5.1.1 Show the effects of the adjustments in the General Journal.
(Journal narrations are not needed) (50)
INFORMATION:
WOOLMER SPORT SHOP

PRE-ADJUSTMENT TRIAL BALANCE ON 28 FEBRUARY 2018
BALANCE SHEET SECTION DEBIT CREDIT
Capital 935 500
Drawings 30 360
Land and buildings 342 320
Vehicles 336 400
Equipment 88 000
Accumulated depreciation on vehicles (1/3/2017) 113 640
Accumulated depreciation on equipment 17 600
(1/3/2017)
Debtors' Control 36 960
Bank ?
Petty cash 1 650
Mortgage Loan 179 300
Creditors' Control 101 530
NOMINAL ACCOUNTS SECTION
Sales 828 240
Debtors’ allowances 13 740
Wages and Salaries 120 875
Sundry Expenses 5 357
Depreciation 31 240
Bad debts 1 770
Insurance 13 000
Rent income 48 725
Advertising 6 600
Interest on current account 5 500
Bank Charges 2 398
Telephone 3 410
Stationery 4 785
Water and electricity 13 640
Discount Allowed 3 322

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ADJUSTMENTS
1. The owner took Trading Stock to the value of R1 670 for personal use.
This was not recorded.
2. According to the physical count, the following were on hand at year
end:
3. Telephone account for February 2018 has not yet been paid, R735.
4. Commission of R1 800 is owed to the company.
5. Insurance was paid for 13 months.
6. Advertising includes an amount of R3 600 paid for six advertisements in
the Daily News newspaper. By 28 February 2018 only four of these
advertisements had appeared in the newspaper.
7. A broken window was replaced at R1 590. This was accidentally debited
against land and buildings. Correct the error.
8. The rent includes the rent for March 2018. Take into account that the rent
was increased by R1 075 per month on 1 January 2018.
9. Depreciation is calculated as follows:
• On vehicles at 10% on cost price. A new vehicle was bought for

R120 000 on 1 September 2017 and recorded properly.
• On equipment at 15% on diminished balance method.
50
TOTAL: 200

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QUESTION 1: ANALYSIS OF TRANSACTIONS (25 marks; 15 minutes)

INFORMATION:
Davo Langley is the owner of Langley Suppliers. The business uses a mark-up of 25%
on cost of goods sold.
REQUIRED:
Analyse the transactions for April 2019 according to the answer book provided. The first
transaction has been done for you as an example.
Transactions:
Assume the bank always has a favourable balance.
Eg. Paid the water and electricity account by EFT, R450.

1. M. Gloria returned damaged stock with a cost price of R2 400. Issued a credit
note.
2. M. Gloria settled her account of R2 200 full less 10% cash discount.
3. The business sends R2 750 goods back to the supplier. Received a debit
note.
4. Paid postage from petty cash, R45.
5. Credit sales to the debtor. Cost of sales amounted R1 000.
25
QUESTION 2: GAAP PRINCIPLES
GAAP PRINCIPLES
2.1.1 What does the abbreviation GAAP stand for? (2)
2.1.2 Indicate which of the following GAAP principles would be applied in each
case:
A. Items of significance must be reported.
B. Financial information is always reported conservatively.
C. Income and expenses must be recorded in the correct financial
period.
D. The financial statements are completed under the assumption that
the business will continue operating in the foreseeable future.
E. All assets must be reported at its original cost price. (5)

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QUESTION 3: SALARY SCALES, CALCULATIONS, INTERNAL CONTROL AND

WAGES JOURNAL (55 marks; 30 minutes)
The following salary scale was prepared for Thuto Begue, an admin clerk who works
at Josie suppliers. He was employed on 1 January 2010.
48 000 x 4 800 → 57 600 x 5 200 → 68 000 x 5 500 → 84 500
3.1 Complete the table in your answer book and answer the following questions:
3.1.1 Fill in the missing amounts in the table denoted by (i) – (iii) (6)
3.1.2 What is Thuto’s monthly starting salary? (2)
3.1.3 In which year will Thuto earn R57 600? (1)
3.1.4 By what percentage will Thuto’s salary increase at the end of the first
year? (3)
3.1.5 How many years will Thuto work before he earns an annual salary of
R84 500? (2)
3.2 Use the information given below to calculate the Net Salary of the employee,
Hlompho Saint for March 2019. (11)
INFORMATION:
Gross salary R6 700 per month

PAYE 15% of the gross salary
Medical Aid Fund R4 200 per annum
Pension Fund 8% of gross salary
UIF 1% of gross salary
3.3 The owner of Josie suppliers is dissatisfied with the production levels
of his employees, he threatens to cut the salaries of employees.
3.3.1 Is the action being considered by Josie Suppliers appropriate?
Motivate your answer by providing ONE reason. (2)
3.3.2 What measures/actions should be applied by the employer to
increase the productivity levels. Provide TWO points. (4)

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3.4 WAGES JOURNAL

The following information was taken from the records of Benjy Suppliers.
REQUIRED:
Prepare the Wages journal of Benjy Traders for the week ending
17 May 2019. Do NOT total the journal. (24)
INFORMATION
A. Normal time:
The normal working week is 40 hours.
• T. Kgang earns R50 per hour.
• M. Mothibe earns R40 per hour
The clock-cards of the workers show the following details:
• T. Kgang worked 45 hours in total.
• M. Mothibe worked 42 hours in total.
B. Overtime is calculated at 1 ½ times the normal rate.
C. Pension Fund:
• The employees contribute 8% of normal time to the pension fund
• Benjy contributes R1.50 for every R1 contributed by the
employee.
D. UIF:
• Calculated at a rate of 1% of normal time and both employer and
employee contribute the same amount.
E. Trade union:
• It is compulsory for each worker to belong to the JV Trade union.
The contribution is R9 per week
F. PAYE
Use the following tax scale to calculate PAYE
Remuneration per week Tax percentage

1 600 – 1 899 10%
1 900 – 2 199 11%
2 200 – 2 499 12%
G. Benjy must pay 1% of gross wages to the skills development levy.
55

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QUESTION 4: GENERAL JOURNAL, CONCEPTS AND LEDGER

The following information was taken from the books of Nosi Stationers.
REQUIRED:
4.1 Journalise the following adjustments on 28 February 2019. Journal

narrations are not needed in the General Journal. (40)
INFORMATION
A. Provisional totals on 28 February 2019
General Journal
Debtors control Creditors control
DR CR DR CR
350 270 120 0
B Adjustments for 28 February 2019

(i) Insurance is prepaid, R200.
(ii) Water and electricity have not yet been paid, R1 500.
(iii) C. Khobe owed R160. The account must be written off as bad debts.
(iv) The dishonoured EFT of R140 was received from S. Peters. This
amount has been recorded. Discount of R30 must still be cancelled.
(v) Rent income amounts to R39 000. One month’s rent was received in
advance.
(vi) The roof has been repaired at a cost of R5 300. The amount was
posted to land and buildings account in error.
(vii) Received R4 400 for Interest on fixed deposit. One month interest is
still due.
(viii) The following extract appeared in the pre-adjustment trial balance:
Balance sheet accounts section Debit Credit

Vehicles 100 000
Equipment 75 000
Accumulated depreciation on vehicle 30 000
Calculate depreciation as follows:

• Vehicles at 15% p.a. at cost price
• Equipment at 10% p.a. on diminishing balance method.
(ix) Trading stock according to physical stock taking amounts to R67 000
on 28 February 2019.

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4.2 Match the definition in column B to the concept in column A. Write only the
correct answer next to the question number in the answer book.
NO. COLUMN A COLUMN B

4.2.1 Fixed assets A Decreases profit and therefore decreases
owner’s equity.
4.2.2 Owners’ equity B Increase profit and therefore increase
owners’ equity.
4.2.3 Current assets C Amounts owing that will be paid back
within 12 months.
4.2.4 Income D The value of the business at any point in
time (total assets – total liabilities).
4.2.5 Expenses E Assets which are expected to be
converted into cash in a short period of
time, less than a year.
F Assets which are expected to be kept for
a long period of time, usually longer than
a year. (5)
4.3 GENERAL LEDGER

The information provided below is taken from the books of Tello Traders for
the month ending 30 April 2019. The business uses a mark-up of 100% on
cost price.
REQUIRED:
4.3.1 Use the information provided to prepare the following ledger accounts:
• Trading stock (13)
• Sales (5)
4.3.2 Tello Traders relies on the Accounting records for the calculation of the
stock on hand. Explain how the stock on hand can be verified. (2)
INFORMATION:
Balances on 1 April 2019 R

Trading stock on hand 20 600
Sales 44 400

Bank Sales Cost of sales Debtors control
? ? 7 000 3 380

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Bank Trading Creditors Wages Stationery
stock Control
26 170 17 900 6 510 140 1 760
Debtors Journal
Sales Cost of Sales
8 800 4 400
Debtors Allowances Journal

Debtors allowances Cost of Sales
440 220
Creditors Journal
Creditors Trading Stationery Packing Sundry
Control stock Material Accounts
18 400 5 990 1 500 2 300 8 610
Creditors Allowances Journal

Creditors Trading Stationery Packing Sundry
Control stock Material Accounts
1 900 ? 175 155 1 000
65
QUESTION 5: DEBTORS RECONCILIATION AND INTERNAL CONTROL
The following information was extracted from the accounting records of Pinky
Dealers for May 2019.
At the end of the month, the Debtors Control account and the Debtors List could
not be reconciled. As the internal auditor of Pinky Dealers you were asked to help
with the reconciliation process.
REQUIRED:
5.1 Calculate the correct balance for the Debtors Control Account by using
” +” signs for an increase, a ” -” for a decrease and ”0” for no effect. (11)
5.2 Prepare the correct Debtors List for May 2019. (16)
5.3 Mention TWO measures that should be implemented by the business
before they can grant credit to customers. (4)
5.4 Name TWO ways in which you can encourage debtors to pay their
accounts on time. (4)

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INFORMATION:
A Balances of Pinky Traders on 1 May 2019:
Debtors Control Account R21 020
B Debtors list on 31 May 2019 R

M. Mary 3 810
P. Paper 4 790
G. Gordon 8 340
D. Daniels 2 690
19 630
C The following errors and omissions were discovered:

(i) P. Papers’ account must be written off as he cannot be traced.
(ii) A EFT received from M. Mary for R1 500 was recorded
correctly in the Journal and General ledger but was not
posted to his personal account.
(iii) The total of the sales column in the Debtors Journal was
overstated by R2 210.
(iv) The total of the Debtors allowances journal was understated
by R280.
(v) D. Daniels returned goods to the value of R1 110 but the
bookkeeper incorrectly treated this as a credit sale and
posted it accordingly.
(vi) Goods were sold on credit to G. Gordon for R2 440. This was
entered correctly in the journal and General ledger but was
posted to his account as R2 040.
(vii) D. Daniels purchased R630 goods by the business. No
entries were done.
35
TOTAL: 200 MARKS

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QUESTION 1: ACCOUNTING EQUATION (35 marks; 25 minutes)
1.1 Complete the given table for the transactions of Nkomo Traders. The business
maintain a mark-up of 50% on cost price.
TRANSACTIONS
1.1.1 Received a EFT of R4 600 from a debtor, L. Noge to settle her account
of R5 000.
1.1.2 Sold goods for R1 800 on credit to J. de Lange.
1.1.3 The owner took trading stock, R250 (cost price) for his own use.
1.1.4 Send equipment, which was bought on credit for R1 800, back to the
supplier.
1.1.5 J. de Lange send R300 goods back to the business (See 1.3.2)
1.1.6 Settle the account of R5 000 to ACD Traders and receive R400
discount.
1.1.7 Rent income amounted to R26 000 is the pre adjusted trial balance.
This includes the March rent of the next financial year.
35
QUESTION 2: WAGES JOURNAL (30 marks; 20 minutes)
The following information appeared in the books of Malinde Traders for May 2020.
REQUIRED:
2.1 Prepare the Wages Journal for the week ended 15 May 2020. It is not
necessary to add the columns in the journal. (30)
INFORMATION
Malinde Traders employed three workers. A month consists of four working

weeks. The employees are allowed to work for 45 hours a week normal time.
Name Normal time Overtime
Hours Rate per Hours Rate per
worked hour worked hour
T. Ntaka 45 R60 12
1½ time the
L. Janeke 45 R40 8
normal rate
S. Sebico 40 R30 2

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Deductions were as follows:
(i) All workers contribute 8% of their basic wage to the pension fund.
(ii) Every member pays R32 per month to the Staff fund.
(iii) Employees pay the standard rate of 1% of basic wage towards the
unemployment insurance fund. Ignore cents in your calculations.
(iv) Tax must be calculated at 20% of employees’ gross wage.
(v) The medical aid works as follows:

• Single members pay R150 per week.
• Married members pay R225 per week.
• Married members with one child pay R1 000 per month.
T. Ntaka S. Sebico L. Janeke

Married with 1 child Married Single
(i) Contributes 12% of the basic wage to the pension fund.

(ii) Contributes R2 for every R1 that the employee pays to medical aid.
(iii) Contributes R1 for every R1 to the unemployment insurance fund.
Ignore cents in your calculations.
30
QUESTION 3: RECONCILIATIONS AND DEPRECIATION (50 marks; 35 minutes)
3.1 Name the source documents that are used to record the following transactions.
No. TRANSACTION SOURCE

DOCUMENT
3.1.1 Goods returned to the business from a debtor
3.1.2 Payment received from a debtor
3.1.3 Charge a debtor interest on his overdue account
3.1.4 Send stock back to the creditor. (4)
3.2. The following information appear in the books of Lebona Suppliers for April
2020.
REQUIRED:
3.2.1 Using the information given below calculate the correct balance on the
Debtors Control account and the Debtors List. (30)

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INFORMATION:
A The Debtors control balance on 30 April 2020 was R36 360.
B The Debtors List extracted on 30 April 2020 showed the following balances:
R
A. Apple 7 500
M. Mango 13 600
L. Lemon 11 800
P. Peach 2 450
TOTAL 35 350

(i) The total in the Debtors Journal was overcast with R2 550.
(ii) An invoice to M. Mango was recorded in the journal as R7 900 instead
of R9 700.
(iii) Purchasing of goods by A. Apple for R5 300 was correctly recorded
in the journal but posted to the account of P. Peach.
(iv) A return of goods by L. Lemon for R770 was correctly recorded in the
journal but posted to the wrong side of his account.
(v) P. Peach send R1 700 goods back to business. No entry has been
made.
(vi) An EFT issued by L. Lemon for R3 800 as partially payment, was not
entered in the records of Lebona Suppliers.
(vii) Charge A. Apple account with R45 interest. No entry was made.
(viii) Write the account of M. Mango off as bad debt.
3.3 KABI TRADERS
The following information was taken from the books of Kabi Traders. The
financial year ends annually on 29 February 2020.
REQUIRED:
Compile the following ledger accounts on 29 February 2020:
3.3.1 Vehicles (6)
3.3.2 Accumulated depreciation on Vehicles (5)
3.3.3 Depreciation (5)

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INFORMATION:
The following balances were extracted from their books on 1 March 2019:
R
Vehicles 240 000
Accumulated depreciation on Vehicles 80 000
TRANSACTIONS
• Bought on 1 May 2019 an additional vehicle on credit for R180 000.
• Bought on 31 December 2019 a motor bike to assist with deliveries for

R48 000 cash.
• Provide for depreciation at 10% according to the diminishing balance

method.
50
QUESTION 4: LEDGER ACCOUNTS, INTERNAL CONTROL AND ETHICS

REQUIRED:
4.1 Prepare the following General Ledger accounts in the books of Masike
Suppliers and balance the accounts at the end of May 2020:
4.1.1 Bank (5)
4.1.3 Creditors control (8)
4.2 Answer the following questions:
4.2.1 Provide TWO strategies that the business can implement to solve
the cash flow problem. (2)
4.2.2 List TWO ways to motivate debtors to settle their accounts on time. (2)
4.2.3 List ONE transaction that will be recorded on the debit side and ONE
transaction on the credit side in the Debtors Control account which
was posted from the General Journal. It must be TWO different
reasons. (4)

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4.2.4 Explain the concept of ‘division of duties’ as an important internal

control method. (2)
4.2.5 The debtors settle their debt in 30 days. Calculate the percentage
discount which the debtors received at the end of May 2020. (3)
4.2.6 The business is unhappy with the supplier of stationery and needs
to change. Quote figures to support their decision. (2)
4.3 The business maintains the same the mark-up percentage throughout the
year. Calculate the mark up percentage. (3)
INFORMATION
The following information appeared in the books of Masike Suppliers for
May 2020.
Balances on 1 May 2020:
R
Bank 25 000 (cr)
Creditors control 65 000
CASH RECEIPTS JOURNAL CASH PAYMENTS JOURNAL

Bank R135 000 Bank R168 000
Sales 84 000 Trading stock 66 000
Cost of sales 60 000 Stationery 12 000
Debtors control – Creditors control –
Receipts 45 000 Payments 40 000
Discount allowed 5 000 Discount received 6 500
CREDITORS JOURNAL CREDITORS ALLOWANCES JOURNAL

Creditors control 96 000 Creditors control ?
Trading stock ? Trading stock 5 000
Stationery 10 000 Stationery 9 000
DEBTORS JOURNAL DEBTORS ALLOWANCES JOURNAL

Sales 50 400 Debtors allowances 3 220
Cost of sales 36 000 Cost of sales 2 300
PETTY CASH JOURNAL GENERAL JOURNAL

Petty cash 800 Debtors control (dr) 1 500
Trading stock 600 Debtors control (cr) 800
Stationery 75
Debtors control 125
50

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QUESTION 5: ADJUSTMENTS IN THE GENERAL JOURNAL

The following information appeared in the books of Leo Traders.

REQUIRED:
5.1 Use only the adjustments that are relevant to the General Journal. Show
which account must be debited and which account must be credited in the
General Journal of Leo Traders on 29 February 2020. (35)
LEO TRADERS
EXTRACT FROM THE TRIAL BALANCE ON 29 FEBRUARY 2020
DEBIT CREDIT
Balance Sheet section
Mortgage loan from AA Bank 100 000
Equipment 95 000
Fixed Deposit: Absa Bank 150 000
Nominal accounts section
Sales 417 400
Insurance 3 400
Bad debts 310
Interest on fixed deposit 4 500
Bank charges 405
Consumable stores 2 780
Interest on overdraft 1 350
Salaries 135 000
Wages 65 000
Interest on loan 5 000
Rent income 28 000
Stationery 1 350
ADJUSTMENTS
A. Wages of R30 000 was wrongly debited to salaries. Rectify the error.
B. Insurance amounting to R450 has not been paid.
C The owner withdrew R500 goods for his own use.
D Wrote a debtor, A. Ansie’s account of R800 off as bad debts.
E Rent was already received for March and April 2020.

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F Depreciation must be calculated as follows:

• Equipment: 10% p.a. on the diminishing balance method
• Vehicles amount to R35 000
G Provide for the outstanding interest on fixed deposit. The fixed deposit
was deposited on 1 October 2019 at 9% p.a.
35
TOTAL : 200 MARKS

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QUESTION 1: WAGES JOURNAL (30 marks; 30 minutes)
The following information appeared in the books of Malinde Traders for May 2020.
REQUIRED:
1.1 Prepare the Wages Journal for the week ended 15 May 2020. It is not
necessary to add the columns in the journal. (30)
INFORMATION
Malinde Traders employed three workers. A month consists of four working

weeks. The employees are allowed to work for 45 hours a week normal time.
Name Normal time Overtime
Hours Rate per Hours Rate per
worked hour worked hour
T. Ntaka 45 R60 12
1½ time the
L. Janeke 45 R40 8
normal rate
S. Sebico 40 R30 2
Deductions were as follows:
(i) All workers contribute 8% of their basic wage to the pension fund.
(ii) Every member pay R32 per month to the Staff fund.
(iii) Employees pay the standard rate of 1% of basic wage towards the
unemployment insurance fund. Ignore cents in your calculations.
(iv) Tax must be calculated at 20% of employees’ gross wage.
(v) The medical aid works as follows:

• Single members pay R150 per week.
• Married members pay R225 per week.
• Married members with one child pay R1 000 per month.
T. Ntaka S. Sebico L. Janeke

Married with 1 child Married Single
(i) Contributes 12% of the basic wage to the pension fund.

(ii) Contributes R2 for every R1 that the employee pays to medical aid.
(iii) Contributes R1 for every R1 to the unemployment insurance fund.
Ignore cents in your calculations.
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QUESTION 2: RECONCILIATIONS (35 marks; 30 minutes)
2.1 Name the source documents that are used to record the following transactions.
No. TRANSACTION SOURCE

DOCUMENT
2.1.1 Goods returned to the business from a debtor
2.1.2 Payment received from a debtor
2.1.3 Charge a debtor interest on his overdue account
2.1.4 Send stock back to the creditor. (4)
2.2. The following information appear in the books of Lebona Suppliers for April 2020.
REQUIRED:
2.2.1 Using the information given below calculate the correct balance on the
INFORMATION:
A The Debtors control balance on 30 April 2020 was R36 360.
B The Debtors List extracted on 30 April 2020 showed the following balances:
R
A. Adams 8 530
M. Marais 3 320
L. Lukele 14 150
P. Porogo 12 900
TOTAL 38 900

(i) The total in the Debtors Journal was undercast with R3 400.
(ii) An invoice to M. Marais was recorded in the journal as R9 400
instead of R4 900.
(iii) Purchasing of goods by P. Porogo for R7 890 was correctly
recorded in the journal but posted to the account of A. Adams.
(iv) A return of goods by L. Lukele for R1 450 was correctly recorded in
the journal but posted to the wrong side of his account.
(v) Credit sales to P. Porogo for R3 960 is not yet recorded.
(vi) An EFT issued by L. Lukele for R4 450 as partially payment, was not
entered in the records of Lebona Suppliers.
(vii) Charge A. Adams account with R76 interest. No entry was made.
(viii) M. Marais purchased R9 200 goods. No entry was made.
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QUESTION 3: ADJUSTMENTS IN THE GENERAL JOURNAL

The following information appeared in the books of Leo Traders.

REQUIRED:
3.1 Use only the adjustments that are relevant to the General Journal. Show
which account must be debited and which account must be credited in the
General Journal of Leo Traders on 29 February 2020. (35)
LEO TRADERS
EXTRACT FROM THE TRIAL BALANCE ON 29 FEBRUARY 2020
DEBIT CREDIT
Balance Sheet section
Mortgage loan from AA Bank 100 000
Equipment 195 000
Vehicles 350 000
Accumulated depreciation on vehicles 135 000
Fixed Deposit: Absa Bank 150 000
Sales 417 400
Insurance 3 400
Bad debts 310
Bank charges 405
Salaries 135 000
Wages 65 000
Rent income 39 000
Stationery 1 350
ADJUSTMENTS
A. Salaries of R25 000 was wrongly debited to wages. Rectify the error.
B. The owner withdrew R2 400 goods for his own use.
C Wrote a debtor, B. Belinda’s account of R650 off as bad debts.
D Rent was already received for March 2020.

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E Insurance amounting to R275 has not been paid.

F Depreciation must be calculated as follows:
• Equipment: 5% p.a. on the diminishing balance method
• Vehicles: 20% on the cost price method
G Provide for the outstanding interest on fixed deposit. The fixed deposit
was deposited on 1 August 2019 at 10% p.a.
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TOTAL : 100 MARKS

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2022
1.1 CONCEPTS
REQUIRED:
Match the correct document from column B with the appropriate transaction in
Column A. Only write down the correct letter.in your Answer Book.
TRANSACTION SOURCE DOCUMENT
1.1.1 Payment method for goods A Invoice
purchased
1.1.2 Goods returned by a customer B Debit note
1.1.3 Sales on credit C Credit note
1.1.4 Goods returned to a supplier D EFT (Electronic funds
transfer)
(4)
1.2 CASH JOURNALS
The following information was extracted from the books of Ace Suppliers for
May 2022. The business maintains a mark-up percentage of 80% on cost.
Provide your own source document numbers. Do not total the journals.
REQUIRED:
1.2.1 Prepare the following journals. Total only the bank column.
• Cash Receipts Journal (14)
• Cash Payments Journal (17)
TRANSACTIONS FOR MAY 2022:

1 The owner, M. Riande increased her capital contribution by depositing
an additional R125 000 into the business bank account.
2 Obtained a loan from Bata Bank for R185 000 at an interest rate of
12% p.a. paid monthly.
6 Issue EFT to Snowy Traders for:
• Trading stock – R22 450
• Stationery – R3 180
• Consumable stores – R1 670.
11 Made an EFT payment to JJ Garage for R165 000 for purchasing of a

new vehicle.
17 Cash sales for the week amounts to R22 320.

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19 Issued an EFT no. 46 for R3 900 to Danny Traders and received a

discount of R360.
26 Received an EFT payment from a debtor, L. Lindiwe for R3 940 in
settlement of his account of R4 160.
30 Bank statement received from Vivo Bank, showed the following:
• Service fees R312,
• Interest on current account R133
• EFT fees R114
• Loan repayment R3 850 including interest.
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QUESTION 2: DEBTORS RECONCILIATION (25 marks; 20 minutes)

LUCKY LOO TRADERS
The following information was extracted from the accounting records of Lucky Loo
Traders for April 2022. At the end of the month, the Debtors Control account and the
Debtors List could not be reconciled.
REQUIRED:
2.1 Calculate the correct balance for the Debtors Control Account for April 2022
by using ” +” signs for an increase, a ” –” for a decrease and ”0” for no entry
(effect). (10)
2.2 Prepare the correct Debtors List for April 2022. (13)
2.3 Name TWO advantages of EFT payments. (2)
INFORMATION:
A Balance on 30 April 2022:
Debtors Control Account R38 495
B Debtors list on 30 April 2022 R

B. Mkize 5 950
R. Radebe 16 600
L. Lemoen 11 580
B. Brown 5 280

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(i) The total of the sales column in the Debtors Journal was
understated by R3 900.
(ii) An EFT payment received from B. Mkize for R5 600 to settle
his account was not recorded.
(iii) The total of the Debtors allowances journal was understated
by R2 175.
(iv) Goods were sold on credit to L. Lemoen for R3 900. This was
posted to his account as R3 090.
(v) Charged R. Radebe’s account with 8% interest for
3 months. No entry was made.
(vi) Credit sales to B. Brown for R1 630. The bookkeeper
incorrectly treated this as returns and posted it accordingly.
(vii) Goods were sold on credit to L. Lemoen for R3 700. This was
posted wrongly to B. Brown. Correct the error.
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QUESTION 3: LEDGER ACCOUNTS (30 marks; 25 minutes)

PATENSIE STORES
The following information was extracted from the accounting records of Patensie
Stores.
REQUIRED:
Prepare the following accounts in the General Ledger and balance the accounts at
the end of the month.
3.1 Bank (5)
3.2 Trading stock (11)
3.3 Sales (4)
3.4 Cost of sales (7)
3.5 Calculate the mark-up percentage on cost (3)

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INFORMATION
A Opening balances on 1 May 2022:
Bank R44 950
Sales 204 000
B Extract from the journals for May 2022:
Cash Receipt Journal – May 2022 CRJ
Doc D Details Fol Bank Sales Cost Debtors control
of Receipts Discount
sales
101 060 67 660 39 800 33 400 3 740
Cash Payment Journal – May 2022 CPJ

Doc D Details Fol Bank Trading Stationery Creditors Control
stock Payment Discount
155 500 103 400 54 000 22 800 2 590
Creditors Journal – May 2022 CJ

Doc D Details Fol Creditors’ Trading Stationery Sundry
Control stock Amount
96 550 79 300 7 725 9 525
Creditors Allowances Journal – May 2022 CAJ

Doc D Details Fol Creditors’ Trading Stationery Sundry
Control stock Amount
11 460 6 900 2 540 2 020
Debtors Journal – May 2022 DJ

Doc D Details Fol Sales Cost of
sales
40 290 23 700
Debtors Allowances Journal – May 2022 DAJ

Doc D Details Fol Debtors Cost of
Allowances sales
4 400 2 300
General Journal – May 2022 GJ 7

Debtors Control
Doc D Details Debit Credit Debit Credit
28 Drawings 1 790
Trading stock 1 790
Owner took stock
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QUESTION 4: SALARIES JOURNAL (35 marks; 20 minutes)
PARYS MUSICA
Parys Musica employs three full time workers.
REQUIRED
4.1 Use the information provided below to complete the salaries journal for the
month ended 31 May 2022. (35)
INFORMATION
A. The employees are as follows:
• P. Piano (Married)
• G. Guitar (Not Married)
• F. Flute (Married, with one child)
B. Information regarding salaries:

• P. Piano earns 8 000 per month
• G. Guitar earns R144 000 per year
• Salary scale of F. Flute (employed for 2 years at the business) is
as follows:
84 000 x 8 400 – 109 200 x 15 400 – 155 400 .
C. Deductions:
(i) Pension fund:

• All employees are members of BB Pension fund and
contributes 8% of their gross salaries per member.
(ii) Medical Aid stipulations:
• Adults pay R450 per month per person
• Children pay R200 each, per month per child
(iii) South African Revenue Services:
• All employees pay 20% of their gross salaries.
(iv) Unemployment Insurance Fund contribution:
• 1% of gross salary
D Employers’ contribution:
• 12% of gross salary for the medical aid
• Employer contributes R2 for every R1 to the pension fund
• UIF contributions 1%.
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QUESTION 5: GAAP PRINCIPLES AND ACCOUNTING EQUATION

REQUIRED:
5.1 Match the GAAP Principles in COLUMN A with the correct explanations in
COLUMN B. Write only the letter (A – E) next to the question number
(5.1.1 – 5.1.5) in the ANSWER BOOK.
COLUMN A COLUMN B
5.1.1 Business Entity A Financials are prepared on the
assumption that the business will
continue in the foreseeable future.
5.1.2 Historical Cost B Financial statements are prepared
conservatively.
5.1.3 Matching Principle C Assets are recorded at the price that
was paid.
5.1.4 Going Concern D Expenses and income must be
recorded in the correct time period.
5.1.5 Prudence E The owner and the business affairs
must be kept separate.
(5)
5.2 SILBANYA TRADERS

The given information relates to Sibanya Traders for April 2022. The
business maintain a mark-up percentage of 50% on cost.
REQUIRED:
Show the effects of the following transactions on the Accounting Equation.
Assume that the bank balance is favourable at all times. Show the account
and the amount affected.
(25)
TRANSACTIONS:
5.2.1 Credit purchases of trading stock from Rebecca Traders, R3 950.
5.2.2 The owner donated R1 500 stationery to the local high school.
5.2.3 Retuned trading stock worth R645 (see 5.2.1) to Rebecca Traders.
5.2.4 The debtor M. Modupi returned goods to the value of R600 to the
business. Cost of sales R450.
5.2.5 M. Vanneer, a debtor, settled her account of R1 300 with a EFT
payment of R1 180.
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QUESTION 6: YEAR-END ADJUSTMENTS (45 marks; 35 minutes)

The Pre-adjustment Trial Balance of Parys Traders on 28 February 2022, the end
of the accounting period was given.
REQUIRED:
6.1 Prepare the General Journal for the adjustments on 28 February 2022. (45)
INFORMATION:
PARYS TRADERS
EXTRACT OF THE PRE-ADJUSTMENT TRIAL BALANCE ON 28 FEBRUARY 2022
BALANCE SHEET SECTION DEBIT CREDIT
Vehicles 750 000
Equipment 360 000
Accumulated depreciation on equipment (1/3/2021) 160 000
Debtors' Control 65 300
Fixed deposit 225 000
Creditors' Control 139 550
NOMINAL ACCOUNTS SECTION
Sales 2 700 000
Cost of sales 1 600 000
Discount Allowed 4 400
Wages and Salaries 144 000
Advertising 35 400
Bad debts 24 500
Insurance 48 100
Rent income 123 000
Telephone 33 000
Repairs 36 600
Bank Charges 11 450
Sundry Expenses 18 200
ADJUSTMENTS
(i) The telephone account for February 2022 has not yet been paid,
R2 425.
(ii) M. Montso, a debtors account of R1 350 must be written off as
bad debts.
(iii) R1 200 for Interest on fixed deposit is still receivable.

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(iv) According to the physical stocktaking, the following were on hand

at year end:
(v) Advertising includes an amount of R7 800 paid for six
advertisements in the Parys News newspaper. By 28 February
2022 only four of these advertisements had appeared in the
newspaper.
(vi) Repairs for R4 700 was incorrectly posted to Bank charges. Rectify
the error.
(vii) Insurance was paid 1 month in advance.
(viii) The rent includes the rent for March 2022. Take into account that
the rent was increased by R1 500 per month on 1 December 2021.
(ix) Depreciation is calculated as follows:
• On vehicles at 20% pa on cost price.
• On equipment at 10% on diminished balance method.
45
TOTAL: 200

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SEPTEMBER
TESTS

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QUESTION 1: CONCEPTS AND INCOME STATEMENT (45 marks : 25 minutes)

1.1 GAAP PRINCIPLES
Choose the correct GAAP principle from the list given for each of the
following statements.
Historical cost; Prudence; Materiality; Business entity; Matching

1.1.1 The financial statements is expected to report income and expenses
in the most conservative or pessimistic manner.
1.1.2 The income earned and expenses incurred must be a counted for in
the financial year to which they relate.
1.1.3 The assets should be recorded at the price at which they were bought
and not at any future expected value.
1.2 The following information appear in the books of Ramodula Stores for the
year ended 28 February 2019.
REQUIRED:
1.2.1 Prepare the Statement of Comprehensive Income (Income
Statement) on 28 February 2019.
Ramodula Clothing Store
Extract from the Pre-Adjustment Trial Balance on 28 February 2019
Balance Sheet accounts section R

Loan (Sureplus Bank) ?
Fixed deposit: Sureplus Bank 300 000
Sales 9 600 000
Salaries and wages 1 906 000
Discount received 9 998
Rent income 66 000
Security services 39 900
Telephone 49 871
Bad debts 24 664
Bank charges 12 642
Discount allowed 5 235
Insurance 56 000
Sundry expenses 42 223

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Adjustments and additional information:
A. An invoice for R9 600 was issued to a debtor. The mark-up percentage

is 50%. No entries were made.
B. A physical count of stock on 28 February 2019 revealed the following

on hand:
• Consumable stores R1 542
C. A debtor has been declared insolvent. Received R600 from his estate
which only paid 25 cents in the Rand. The rest of his account must
be written off. No entries were made.
D. The monthly security services fee is paid electronically. The fee was
increased every year by 10% with effect from 1 January. They pay the
fee for one month in advance.
E The fixed deposit was invested on 1 September 2018. Provide for

outstanding interest. The interest rate was 8% throughout the period
of investing.
F Rent income was received for 11 months only. The rent was not
received for February 2019.
G Bank charges according to the bank statement for February 2019

amounts to R1 234.
H Provide for depreciation for R23 700 on the financial year.
I Loan Statement of Sureplus Bank
R
Balance on 1 March 2018 280 000
Interest ?
Repayment during the year 96 000
Balance on 28 February 2019 240 000
45

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QUESTION 2: NOTES TO THE STATEMENT OF FINANCIAL POSITION

AND STATEMENT OF FINANCIAL POSITION (BALANCE
SHEET) (40 marks, 25 minutes)
2.1 The information below was taken from the books of Motaung Traders.
Their financial year ends 30 June 2019.
REQUIRED:
2.1.1 Note for fixed assets (12)
2.1.2 Trade and other receivables (4)
2.1.3 Owner's Equity (5)
2.1.4 The Statement of Financial Position (Balance Sheet) on 30 June (19)

2019.
INFORMATION:
EXTRACT FROM THE TRIAL BALANCE OF KELSO TRADERS – JUNE 2019
Balance sheet section Fol Debit Credit

Capital (1/7/2018) 1 950 000
Drawings 165 300
Land and Buildings (1/7/2018) 660 000
Equipment (cost price) (1/7/2018) ?
Vehicles (cost price) (1/7/2018) 640 000
(1/7/2018)
(1/7/2018)
Fixed Deposit: Aladdin Bank ?
Loan: PP Bank 440 000
Trading inventory 45 600
Bank 394 000
Prepaid expenses 3 600
Accrued expenses 7 000
Accrued income 6 850

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EXTRACT FROM THE FIXED ASSETS NOTE:
Land &
Vehicles Equipment
buildings
Carrying value at beginning of
year 660 000 400 000 99 500
Cost 660 000 640 000
Accumulated depreciation 0 (240 000) (80 500)
Additions at cost 0
Depreciation (0) (16 000)
Carrying value at end of year 875 000
Cost 875 000
Accumulated depreciation (0) (96 500)
Additional information:
• The owner extracted of his capital in January 2019. The after

closing trial balance on 30 June 2019 showed capital’s balance
as R1 875 000.
• The buildings were extended during the year. This transaction was
recorded properly.
• The loan is paid in monthly equally instalments of R8 000.
• On 1 December 2018 the business bought a new vehicle cash for

R360 000. The transaction was accidentally credited to Creditor’s
Control. Rectify the error. Depreciation on vehicles is calculated
at 15% p.a. on the diminishing method.
• The net profit for the year amounted to R446 950.

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QUESTION 3: RATIOS, ANALYSIS AND INTERPRETATIONS

You are provided with information from the books of Motheo Traders for the
financial year ended 28 February 2019.
REQUIRED:
3.1 Calculate and comment on the following ratios:
3.1.1 Acid test ratio (4)
3.1.2 Current ratio (4)
3.2 Motheo Traders sell goods with a mark-up percentage of 30%.
3.2.1 Calculate the mark up percentage for the year ended 28
February 2019. (3)
3.2.2 Should the owner be satisfied? Give ONE reason for your
answer. (2)
3.2.3 Give ONE possible cause for the change in the mark up
percentage. (2)
INFORMATION:
EXTRACT FROM THE INCOME SHEET ON 28 FEBRUARY 2019:
2019
Sales 955 000
Cost of Sales (745 000)
Gross Profit ?
EXTRACT FROM THE BALANCE SHEET ON 28 FEBRUARY 2019:
2019
Assets R
Non-current assets 835 000
Current assets 400 000
Trade and other receivable 210 000
Cash and cash equivalent ?
Equity and Liabilities
Capital ?
Non-current liabilities 200 000
Current liabilities 150 000
FINANCIAL INDICATORS:
2019 2018
Acid Test Ratio ? 0,8 : 1
Current Ratio ? 2,1 : 1
15
TOTAL: 100

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QUESTION 1: CONCEPTS AND INCOME STATEMENT (50 marks; 30 minutes)
1.1 ACCOUNTING CONCEPTS

Choose the correct word(s) from COLUMN B to match the description in
COLUMN A. Write only the letter (A–D) next to the number (1.1.1–1.1.3) in
the ANSWER BOOK.
COLUMN A COLUMN B
1.1.1 The source document used to record A Original invoice

when a debtor sends goods back to
the business.
1.1.2 The source document used to record B Duplicate invoice
a credit purchase transaction.
1.1.3 The source document used to record C Credit note
a credit sales transaction.
D Debit note
(3)
1.2. BONNY TRADERS
The following information was taken from the Bonny Traders for the year
ended 30 June 2020.
1.2.1 Prepare the Income Statement on 30 June 2020 (47)
BONNY TRADERS
EXTRACT FROM THE TRIAL BALANCE FOR THE YEAR ENDED 30 JUNE 2020
Debit Credit
BALANCE SHEET SECTION
Vehicles 420 000
Equipment 120 000
Accumulated depreciation on Equipment 12 000
Fixed Deposit: ASA Bank (9 % p.a.) 90 000
Loan: FF Bank (14% p.a.) 60 000
NOMINAL ACCOUNT SECTION
Sales 960 000
Debtors allowances 22 300
Rent income 40 250
Salaries 102 000
Telephone 24 300
Bad debts 12 100

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Stationery 13 400
Advertising 25 400
Insurance 18 600
ADJUSTMENTS AND ADDITIONAL INFORMATION:

A The telephone account for June 2020 has been received but not yet paid,
R3 100.
B An annual insurance premium of R1 320 was paid on 31 March 2020.
C Donated goods, R1 800, to the High School. No entry for this transaction
has been made.
D A physical stock taking on 30 June 2020 revealed the following:
• Trading stock on hand R33 750
• Stationery on hand R 2 300
E The account of a debtor, R. Rennie, amounting to R1 350 must be written
off as irrecoverable.
F Rent has been received for thirteen months. Take into account that the rent
was increased by R250 per month from 1 March 2020.
G A debtor E. Petty settled her account of R1 540 a EFT of R1 470 and this
was recorded correctly. The bank notified the business that the EFT has
been dishonoured due to insufficient funds.
H The Fixed deposit was invested on 1 October 2019 at ASA Bank. The
interest on the fixed deposit has been received for six months only.
I Provide for depreciation as follow:
• Depreciation on vehicles is calculated at 20% p.a. on the cost price
method. Take into account that a new vehicle, with a cost of R120 000,
was purchased on 1 September 2019 and entered into the books.
• Depreciation on equipment amounts to R10 800 for the year.
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QUESTION 2: NOTES TO THE BALANCE SHEET AND RATIOS

50 marks, 30 minutes
2.1 CONCEPTS
Choose the correct term to complete each of the following
statements. Write only the term next to the question number
(2.1.1–2.1.3) in the ANSWER BOOK.
cash and cash equivalents; current asset; non-current asset; equity;

net working capital; current liability; non-current liability
2.1.1 Consumable stores on hand are a/an ...

2.1.2 The difference between current assets and current liabilities is
known as …
2.1.3 Fixed deposit form part of … (3)
2.2 The information below was taken from the books of Henka Traders.
Their financial year ends 29 February 2020.
REQUIRED:
2.2.2 Trade and other receivables (Debtors) (4)
2.2.3. Owner's Equity (7)
2.2.4 Trade and other payables (Creditors) (7)
INFORMATION:
TRIAL BALANCE OF HENKA TRADERS – FEBRUARY 2020
Balance sheet section Debit Credit
Capital 1 950 000
Drawings 75 600
Land and Buildings 780 000
Vehicles (cost price) ?
Equipment (cost price) ?
Fixed Deposit : ABC Bank ?
Loan 120 000
SARS – PAYE 21 360
SARS – VAT 5 890
Consumable stores on hand 2 000
Income received in advance (Deferred income) 3 700
Pension fund 6 500

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EXTRACT FROM THE TANGIBLE ASSETS NOTE

Land and
Vehicles Equipment
buildings
year 350 000 150 000
Cost (A) 475 000 185 000
Accumulated depreciation 0 (125 000) (35 000)
Additions at cost 220 000 80 000 ?
Depreciation 0 (B) (D)
Carrying value at end of year 780 000 (C)
Cost 780 000
Accumulated depreciation 0 (175 000)
ADDITIONAL INFORMATION:
• During the year the building was extended for R220 000. This
transaction was recorded properly.
• The owner increased her capital contribution by donating a second-
hand vehicle of R80 000 to the business. This transaction was
recorded properly. Depreciation on vehicles is calculated at the
cost price method.
• Henka Traders bought five new computers on 1 December 2019 at
R18 000 each. This transaction was not recorded. Depreciation on
equipment is calculated at 10% p.a. on the diminishing method
• The owner takes trading stock for R3 500for his own use. This
transaction was not recorded.
• The net profit for the year amounted to R455 000.
2.3 You are provided with information from the books of Joel Stores for
the financial year ended 30 June 2020.
REQUIRED:
Calculate and comment on the following ratios:
2.3.3 Solvency ratio (6)

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INFORMATION:
EXTRACTS FROM THE BALANCE SHEET FOR THE YEAR ENDED

30 JUNE 2020
2020
Assets R
Non-current assets 700 000
Current assets 480 000
Trade and other receivables 190 000
Cash and cash equivalent 110 000
Equity and Liabilities
Capital ?
Non-current liabilities 80 000
Current liabilities 120 000
FINANCIAL INDICATORS
2020 2019
Current ratio ? 3,5:1
Acid test ratio ? 1,6:1
Solvency Ratio ? 5,2:1
50
TOTAL: 100

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QUESTION 1: STATEMENT OF COMPREHENSIVE INCOME

1.1 CONCEPTS
Choose the correct term to complete each of the following statements.
Write only the term next to the question number (1.1.1–1.1.4) in the
ANSWER BOOK.
non-current asset; current asset; current liability; income; non-current
liability; financial asset
1.1.1 Accumulated depreciation on vehicles is a/an …
1.1.2 Accrued expense is a/an ...
1.1.3 Fixed deposit who matures within 12 months is a/an …
1.1.4 Long term loan is regarded as a/an … (4)
1.2 KABI TRADERS
The information set out below was taken from the books of the business.
The financial year ends 28 February 2022. The percentage mark-up
used by the business is 75% on cost.
REQUIRED
1.2.1 Prepare the Statement of Comprehensive Income (Income
Statement) for the year ended 28 February 2022. (46)
INFORMATION:
Extract of the Pre-adjustment Trial Balance on 28 February 2022.
Debit Credit
Balance Sheet Accounts Section
Fixed Deposit: WW Bank (7% p.a) 120 000
Nominal Accounts Section
Sales 2 362 500
Cost of Sales 1 350 000
Debtors’ Allowances 42 500
Commission Income 110 000
Rent Income 134 500
Salaries and wages 155 200
Telephone 36 530
Bank charges 24 800
Bad Debts 17 300
Insurance 33 850
Stationery 27 360
Interest on fixed asset 7 700

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A. Commission for February 2022 has not yet been received by
the business.
B. R2 700 stationery was paid in advance for March 2022.
C. The water and electricity for February 2022 was not recorded,
R4 900.
D. Depreciation for the year amounts to R55 100.
E. A debtor who owed R3 100 was declared insolvent. Write off
the account as irrecoverable.
F. A physical stock count on 28 February 2022 revealed the
trading stock on hand amounts to R83 400.
G. The February Bank Statement shown that bank charges
outstanding amounted to R1 530.
H. An amount of R2 740 received from a debtor whose debt was
previously written off as irrecoverable.
I. The insurance amount includes an annual premium of R3 600
paid on 1 November 2021.
J. The interest on fixed deposit is still owed to the business at the
end of the year. There were no changes on the fixed deposit
during the financial year.
K. Interest on loan is only paid for 9 months.
L. The rent increased by R1 500 per month from 1 January 2022.
The rent for March 2022 was received and deposited.
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QUESTION 2: NOTES TO THE BALANCE SHEET (35 marks, 25 minutes)
2.1 The information below was taken from the books of Mokoatsi Stores.
Their financial year ends 28 February 2022.
REQUIRED:
2.1.2 Cash and Cash Equivalents (8)
2.1.4 Trade and other payables (All current liabilities must be shown
under this note) (4)
INFORMATION:
EXTRACT FROM THE TRIAL BALANCE OF MOKOATSI STORES
FEBRUARY 2022
Balance sheet section R
Capital (1/3/2021) 850 000
Drawings 64 500
Vehicles (cost price) 640 000
Equipment (cost price) 180 000
Accumulated depreciation on equipment (1/3/2021) ?
Debtor’s control 66 500
Creditor’s control 77 900
Bank 75 900
Petty cash 1 560
Cash float 440
Consumable stores on hand 13 456
Income received in advance 13 100

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Land &
Vehicles Equipment
buildings
year 304 000 150 000
Cost 640 000 180 000
Accumulated depreciation (0)
Movements:
Additions at cost
Depreciation (0)
Cost 844 000
(i) During the year a new storeroom for R326 000 was built. This
transaction was recorded properly.
(ii) A new vehicle was bought on 1 September 2021 for R420 000.
This transaction was recorded properly. Depreciation on vehicles
is calculated at 20% p.a. on the diminishing method.
(iii) The business bought extra equipment on 28 February 2022 for

R36 000 cash. This transaction was not recorded. Depreciation
on equipment is calculated at 10% p.a. on the cost price method.
(iv) R86 000 of the fixed deposit matured on 1 November 2022.
(v) During the year the owner increased his capital contribution with
an additional amount of R125 000. This has not been recorded.
(vi) The net profit for the year amounted to R367 000.
35

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QUESTION 3: ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS

(15 marks ; 10 minutes)
You are provided with information from the books of Motloung Traders on
28 February 2022.
3.1 REQUIRED:
Use the financial information provided to calculate the following for 2022:
3.1.1 Mark-up percentage (3)
3.2 Comment on the liquidity. Quote TWO financial indicators and figures and
provide a general comment. (5)
MOTLOUNG TRADERS
EXTRACT FROM THE STATEMENT OF COMPREHENSIVE
INCOME FOR THE YEAR ENDED ON 28 FEBRUARY
2022 2021
Sales 3 600 000 2 400 000
Cost of sales 2 400 000 1 600 000
Gross profit 1 200 000 800 000
MOTLOUNG TRADERS
EXTRACT FROM THE STATEMENT OF FINANCIAL POSITION
ON 28 FEBRUARY
2022 2021
Current assets 262 500 240 000
Inventory 115 500 60 000
Trade and other receivables 96 000 68 000
Cash and cash equivalents 51 000 112 000
Current liabilities 105 000 120 000
2022 2021
Current ratio ? 2:1
15
TOTAL: 100

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NOVEMBER
EXAMINATIONS

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QUESTION 1: CONCEPTS AND ANALYSIS OF TRANSACTIONS (30 marks; 25 minutes)

COLUMN A. Write only the letter (A–F) next to the number (1.1.1–1.1.5) in
the ANSWER BOOK.
COLUMN A COLUMN B
1.1.1 The source document used to record A Original invoice
when a debtor sends goods back to
the business.
1.1.2 The source document used to record B Duplicate invoice
a credit purchase transaction.
1.1.3 The source document used to record C Credit note
when the business sends goods back
to the creditor.
1.1.4 The source document used to record D Duplicate receipt
a credit sales transaction.
1.1.5 The source document used to record E EFT
transactions when a tenant pays his
monthly rent.
F Debit note (5)

These transactions appeared in the books of Lebombo Traders. The
business maintains a gross profit mark-up of 50% on cost. The financial
year ended 28 June 2018.
REQUIRED:
Analyse the following transactions according to the headings provided
in the ANSWER BOOK. Assume that Bank balance is favourable for all
the transactions. (25)
Example: The business pays the telephone account per EFT, R500.
TRANSACTIONS:
1.2.1 Receive R1 500 from a debtor, M. Mkhize as partly payment of
his account.
1.2.2 Purchased stationery on credit from ABC Traders for R2 200.
1.2.3 Cash sales for the day amounts to R9 600.
1.2.4 Send stationery of R550 back to the creditor ABC Traders.
1.2.5 Write a debtor, P. Peens account of R400 off as irrecoverable.
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QUESTION 2: STATEMENT OF COMPREHENSIVE INCOME (50 marks; 40 minutes)
The following information relates to BB Traders. The financial year ended 28 February
2018.
REQUIRED:
2.1 Prepare the Statement of Comprehensive Income of BB Traders for the

financial year ended 28 February 2018. (50)
INFORMATION:
A. Pre-adjustment trial balance of BB Traders Ltd on 28 February 2018

Balance sheet account section
Capital 2 300 000
Drawings 40 000
Land and buildings 1 730 000
Vehicles 900 000
Equipment 90 000
Accumulated depreciation on 180 000
vehicles
Accumulated depreciation on 42 000
equipment
Bank 42
500
Petty cash 400
Fixed deposit – ABC Bank (9%) 200 000
Loan XYZ Bank 300 000
Sales 914 000
Rates and taxes 24 000
Commission income 68 000
Rent income 156 000
Salaries 269 510
Insurance 62 000
Bad debts 1 600
Stationery 7 000
Telephone 14 400
4 164 750 4 164 750

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Adjustments
B. A debtor, S Mabe returned goods with selling price of R1 400, cost code
TEW. (Secret code is WONDERHUTS, with W = 0). No entry has been
made.
C. Rent has already been received for March 2018.
D. An annual insurance contract of R24 000 is paid on 1 June of each year.
E. R800 has been received from the insolvent estate of R Radebe, a debtor,
who owed R950. This has already been recorded in the Cash Receipt
Journal. No other transaction has been recorded.
F. The business received the loan statement from the bank. The monthly
payment was R10 000 per month. The balance on 1 March 2017 was
R384 000. Interest has been capitalized. Provide for the interest for the
year.
G. The fixed deposit was invested on 1 September 2017. Provide for
outstanding interest.
H. Trading inventory amounted to R88 900 and stationery
R1 200 on 28 February 2018.
I. Depreciation on vehicles is calculated at 10% on cost price and on
equipment 20% on the diminishing balance method
J. M Matthews, a debtor whose account has already been written off, paid
R600. This has been recorded in the Cash Receipt Journal in the Debtors
column. Correct the error.
50

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QUESTION 3: CONCEPTS, STATEMENT OF FINANCIAL POSITION AND NOTES

3.1 CONCEPTS
Choose one concept from the list provided for each explanation below.
Write only the concept next to the question number (3.1.1 -3.1.5) in the
ANSWER BOOK.
Matching , materiality, historical cost, going concern, prudence,

business entity
3.1.1 Assets are recorded at the amount that was originally paid for (1)
them.
3.1.2 Expenses and income must be recorded in the appropriate
financial period. (1)
3.1.3 The accountant assume that the business will continue for the
foreseeable future. (1)
3.1.4 The financial affairs of the owner must be recorded separately
from that of the business (1)
3.1.5 The amount which is significant to the decisions made by the
reader of the financial statements should be disclosed separately
in financial statements (1)
3.2 CHOICE TRADERS
The information below relates to Choice Traders for the financial year
ended 28 February 2018
REQUIRED:
3.2.1 Prepare the following notes to the balance sheet

• Owner’s Equity (5)
• Trade and other receivables (4)
• Cash and cash equivalents (4)
3.2.2 Prepare the Statement of Financial Position (Balance sheet) on
28 February 2018. Show ALL workings (22)

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INFORMATION
Balances extracted from the accounting records on 28 February 2018
Capital as at 1 March 2017 R1 020 000
Drawings 24 000
Fixed Assets at carrying value 1 543 135
Fixed deposit: BFL Bank 185 000
Mortgage loan 800 000
Bank 19 570
Petty Cash 1 030
Cash Float 500
ADDITIONAL INFORMATION
1. Capital and Profits
• The owner invested a further R38 000 into the business as additional
capital contribution. This has not been recorded.
• The net profit as calculated in the profit and loss account amounted
to R106 000
2. Loan and repayments
• The loan will be repaid annually on 30 September with an instalment
of R50 000
3. A physical count of stock on 28 February 2018 revealed the following on
hand:
• Trading Stock R114 000
• Stationery R12 650
40

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QUESTION 4
ANALYSIS AND INTERPRETATION (30 marks ; 20 minutes)
Use the information below in the books of Mamka Coffee Shop. Show all
working details and give your answers to first decimal place only. The
business obtains a profit mark-up of 65%.
REQUIRED:
4.1 Calculate the following for the year ended 28 February 2018:
4.1.1 Gross profit as a percentage on cost of sales. (4)
4.1.2 Net profit as a percentage of turnover. (3)
4.1.3 Current ratio. (4)
4.1.5 Return on average owner’s equity (5)
4.2 Do you think Mamka Coffee Shop can be satisfied with the gross profit %
on cost of sales? Comment and quote figures to support your answer. (3)
4.3 Mamka Coffee Shop is satisfied with the liquidity of the business.
Comment through quoting figures to support your answer. (4)
4.4 Should Mamka Coffee Shop be satisfied with the returns of the returns of
the average shareholders’ equity? Comment through quoting figures to (3)
support your answer.
INFORMATION
EXTRACT FROM THE INCOME STATEMENT FOR THE YEAR

ENDED 28 FEBRUARY:
2018 2017
Sales 640 000 560 000
Cost of Sales (400 000) (350 000)
Gross Profit 240 000 210 000
Other operating income 202 580 195 000
Operating expenses (211 805) (211 150)
Operating profit 230 775 193 850
Interest Expense (36 000) (48 000)
Net Profit 194 775 145 850

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EXTRACT FROM THE BALANCE SHEET ON 28 FEBRUARY:
2018 2017
Fixed Assets ? ?
Fixed Deposits (10%) 110 000 80 000
Current Assets 50 210 ? 61 380 ?
Trading Stock 27 035 25 200
Trade and Other Receivables 22 350 35 340
Cash and Cash Equivalents 825 840
? ?
Owner’s Equity 635 716 590 000
Non- Current Liabilities 100 000 100 000
Current Liabilities 13 327 18 600
? ?
Financial indicators for the year ended 28 February 2017
Current ratio 3,3 : 1

Acid test ratio 1,4 : 1
Return on average owner’s equity 39%
30
TOTAL MARKS : 150

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QUESTION 1: CONCEPTS AND ANALYSIS OF TRANSACTIONS (30 marks; 25 minutes)

COLUMN A. Write only the letter (A–F) next to the number (1.1.1 – 1.1.5) in the
ANSWER BOOK.
COLUMN A COLUMN B
1.1.1 Business entity A Income and expenses must be reflected
against each other in the same financial period.
1.1.2 Historical Cost B Financial information is recorded in a
conservative manner.
1.1.3 Matching principal C All assets are recorded at their cost price.
1.1.4 Going concern D Financial information prepared with the
understanding that a business will continue in
the future.
1.1.5 Prudence E Financial affairs of a business are kept entirely
separate from the financial affairs of its owners.
(5)

These transactions appeared in the books of Maxwell Traders. The business
maintains a profit mark-up of 25% on cost. The financial year ended
31 October 2019.
REQUIRED:
Analyse the following transactions according to the headings provided in the
ANSWER BOOK. Assume that Bank balance is favourable for all the
transactions. (25)
Example: The business paid the telephone account per EFT, R500.
TRANSACTIONS:
1.2.1 Donated trading stock to the orphanage at R520 selling price.
1.2.2 Issued an EFT, R530 to J. Jardim in settlement of our account of
R580.
1.2.3 Stock returned to a creditor XY Traders, R6 540
1.2.4 The fixed deposit at Diamant Bank, R30 000 expires today. Received
an EFT for the Fixed deposit as well as interest for the last six months
earned at 20% per annum.
1.2.5 Paid Ciskia Transport R60 from petty cash for transport of stock
bought to the premises.
30

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QUESTION 2: STATEMENT OF COMPREHENSIVE INCOME (40 marks; 30 minutes)
The following information relates to CR Traders. The financial year ended 30 June 2019.
REQUIRED:
2.1 Prepare the Statement of Comprehensive Income (Income Statement) of

CR Traders for the financial year ended 30 June 2019.
(40)
INFORMATION:
A. Extract form Pre-adjustment trial balance of CR Traders on 30 June 2019.
Balance Sheet account section Debit Credit

Capital ?
Drawings ?
Vehicles 484 000
Equipment 291 000
Accumulated Depreciation on vehicles 260 000
Accumulated Depreciation on equipment 143 000
Fixed deposit 60 000
Bank 11 965
Petty cash 800
Loan: Shark Bank (12%) 30 000
Nominal Account section
Sales 340 230
Debtors allowance 6 600
Rent income 99 750
Salaries 82 500
Telephone 3 420
Bad Debts 11 400
Insurance 5 320
Commission income 28 593
Employers contribution 4 700
? ?

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B. Additional Adjustments
(i) The following accounts for June 2019 have been received, but not
yet paid:
• Water and Electricity, R334
• Telephone, R478
(ii) Credit note was issued to Begue Traders for R1 200. The cost of
sales was R800.
(iii) Trading stock on hand on 30 June 2019, R90 000.
(iv) The insurance premium increased on the 1 May with R40 per month.
Before the increase the premium monthly was R400. One month
was paid in advance.
(v) The pre-adjustment trail balance was prepared before the Salary
journal for June 2019 was taken into account. The details was as
follows:
Gross salaries Deduction Employers Nett Salary

contribution
R8 700 R3 050 R300 R5 650
(vi) Depreciation must be taken into account as follows:
• On vehicles at 15% diminished balance method
• On equipment at 10% per annum at cost price. Take into
account equipment for R5 000 was purchased on 1 January
2019, and recorded correctly.
(vii) A debtor, D. Danel who owed R1 300 was declared insolvent. A final
dividend of 30 sent in the rand was deposited into the bank account.
The rest must be written off as irrecoverable.
(vii) An amount of R 1 720 was received from a debtor, E. Enrico whose
account was earlier written off as bad debts. The amount was
credited in the debtors control account.
(ix) The loan from Shark Bank was received on 1 September 2018.
Provide for any interest outstanding / prepaid.
(x) The rent increase with 10% annually on 1 May. Rent for July 2019
was received in advance.
(xi) Bank statement received after trial balance was compiled, stated
interest on overdraft of R700.
40

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QUESTION 3: CONCEPTS, STATEMENT OF FINANCIAL POSITION AND NOTES

3.1 CONCEPTS
Choose one concept from the list provided for each explanation below.
Write only the concept next to the question number (3.1.1 – 3.1.5) in the
ANSWER BOOK.
Assets, Capital, Trail balance, Balance Sheet, Non-current liabilities,

Current liabilities
3.1.1 Loan used to purchase land and buildings. (1)

3.1.2 Item of value that is acquired or owned by business or person. (1)
3.1.3 A statement that is prepared to show the value of the business on
a specific date. (1)
3.1.4 An accounting instrument used to ensure the double entry system
was applied correctly. (1)
3.1.5 Cash and other tangible assets invested in the business by the (1)
owner
3.2 MLABA TRADERS
The information below relates to Mlaba Traders for the financial year
ended 28 February 2019.
REQUIRED:
3.2.1 Prepare the following notes to the balance sheet:

• Fixed assets (14)
• Owners’ equity (5)
3.2.2 Prepare the Statement of Financial Position (Balance sheet) on

28 February 2019. Show ALL workings. (26)

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INFORMATION
Balances extracted from the accounting records on 28 February 2019:
R
Capital (1/3/2018) 665 452
Vehicles 320 000
Equipment 53 000
Accumulated Depreciation on Vehicles (1/3/2018) 34 640
Accumulated Depreciation on Equipment (1/3/2018) 25 460
Fixed deposit: BDL Bank ?
Loan: Unity Bank 90 000
Bank (overdrawn) 7 890
Petty cash 750
Cash float 100
Prepaid expense 640
Accrued income 965
ADDITIONAL INFORMATION
1. The owner, M Mlaba increased his capital contribution with R65 000. This
transaction was recorded.
2. The net profit for the year ended 28 February 2019 was calculated at
R110 500. The transfer to the capital account was already made on this
date.
3. The owner withdrew R 35 771 during the year. This amount must still be
transferred to the capital account
4. A vehicle or R150 000 was purchased during the year and recorded
correctly.
5. Depreciation on 28 February 2019 amounts to:
• Vehicle R58 000
• Equipment R5 300
6. The loan is repaid with R10 000 annually on 30 September
7. Physical stocktaking on 28 February shows the following
• Consumable stores on hand R386
50

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QUESTION 4: ANALYSIS AND INTERPRETATION (30 marks ; 20 minutes)

The given information was taken from the books of Wessie Traders. The financial year
ends annually on 31 October.
GEVRA:
4.1 The business uses a profit margin of 40% on Cost price during 2019.
Calculate the cost of sales for 2019. (2)
4.2 Calculate the gross profit for 2019. (3)
4.3 Calculate the following for 2019:

4.3.3 The % operating expense on turnover 2019. (5)
4.4 Should the enterprise be satisfied with the control over operating expense
in 2019. The percentage for 2018 was 30%. Explain briefly. (2)
4.5 During 2019 an advertising campaign was launched to increase sales and
profit. Was this campaign successful? State your opinion and compare the
net profit for the two years to support your answer. (4)
4.6 Calculate the amount for fixed assets for 2019. (6)
INFORMATION:
2019 2018
Turnover (sales) 560 000 400 000
Cost of sales ? 280 000
Gross profit ? 120 000
Interest on investments 1 000 1 500
Telephone 17 000 ?
Advertisement 15 000 5 000
Wages 80 000 78 000
Sundry expenses 280 000 ?
Net profit 56 000 20 000
2019 2018
Fixed assets ? 308 000
Investment (Fixed deposit) 20 000 20 000
Trading stock 186 000 114 000
Owners’ equity 560 000 474 000
30
TOTAL MARKS : 150

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QUESTION 1: STATEMENT OF COMPREHENSIVE INCOME

1.1 CONCEPTS
Choose the correct term to complete each of the following statements.
Write only the term next to the question number (1.1.1–1.1.3) in the
ANSWER BOOK.
financial asset; non-current asset; current liability; non-current liability;
income; current asset
1.1.1 A long-term loan is regarded as a/an …
1.1.2 Fixed deposit that matures after 24 months is a/an …
1.1.3 Consumable stores on hand are a/an … (3)
1.2 INGEMAR TRADERS

The information set out below was taken from the books of the business.
The financial year ends 28 February 2022.
REQUIRED
1.2.1Prepare the Statement of Comprehensive Income (Income
Statement) for the year ended 28 February 2022. (42)
INFORMATION:
Extract from the Pre-adjustment Trial Balance on 28 February 2022.
Debit Credit
Balance Sheet Accounts Section
Fixed Deposit: BB Bank (6% p.a.) 180 000
Loan ?
Nominal Accounts Section
Sales 2 635 200
Cost of Sales 1 646 875
Debtors’ Allowances 35 200
Commission Income 130 000
Rent Income 139 200
Telephone 58 330
Salaries and wages 185 900
Bad Debts 18 525
Bank charges 19 700
Stationery 33 950
Insurance 44 580
Interest on fixed asset 9 000

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A. The water and electricity for February 2022 was not recorded, R4
150.
B. Stationery worth R 4 290 was bought in advance for March 2022.
C. Depreciation for the year amounts to R89 600.
D. Commission for March 2022 was received during February 2022.
The commission is the same amount every month.
E. A debtor, J. Drummer who owed R4 480 was declared insolvent.
Write off the account as irrecoverable.
F. A physical stock count on 28 February 2022 revealed the trading
stock on hand amounts to R101 600.
G. The insurance amount includes an annual premium of R7 200 paid
on 1 December 2021.
H. Bank charges on the February 2022 Bank Statement amounted to
R1 427.
I. An amount of R5 460 received from a debtor whose debt was
previously written off as irrecoverable.
J. The interest on fixed deposit is still owed to the business at the end
of the year. There were no changes on the fixed deposit during the
financial year.
K. Interest on loan was paid for 10 months only.
L. The rent increased by 10% from 1 August 2021. The rent for
February 2022 was not received.
45
QUESTION 2: NOTES TO STATEMENT OF FINANCIAL POSITION

2.1 POROGO STORES
The information below was taken from the books of Porogo Stores.
The financial year ends 28 February 2022.
REQUIRED:

2.1.2 Cash and Cash Equivalents (6)

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INFORMATION:
EXTRACT FROM THE TRIAL BALANCE OF POROGO STORES
28 FEBRUARY 2022
Balance sheet section R
Capital (1/3/2021) 575 000
Drawings 58 400
Vehicles (1/3/2021) 520 000
Equipment (1/3/2021) 80 000
Debtor’s control 466 500
Bank 33 800
Petty cash 1 200
Cash float 550

Land &
Vehicles Equipment
buildings
Carrying value at beginning 525 000 208 000 64 800
Cost 525 000 520 000 80 000
Accumulated depreciation (0) (312 000) (15 200)
Movements:
Additions at cost 225 000
Depreciation (0)
Cost 750 000 880 000 104 000
(i) During the year a new storeroom for R225 000 was built. This transaction
was recorded properly.
(ii) A new vehicle was bought on 1 December 2021 for R360 000. This
transaction was recorded properly. Depreciation on vehicles is calculated
at 20% p.a. on the cost price method.
(iii) The business bought a new computer on 1 February 2022 for R24 000
cash. This transaction was not recorded. Depreciation on equipment is
calculated at 10% p.a. on the diminishing balance method.
(iv) During the year the owner increased his capital contribution with an
additional amount of R85 000. This was recorded.
(v) The net profit for the year amounted to R212 000.

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2.2 SCHEEPERS TRADERS
You are provided with information from the books of Scheepers Traders on 28
February 2022.
REQUIRED:
2.2.1 Use the financial information provided to calculate the following for
2022:
Current ratio (3)
Acid test ratio (4)
2.2.2 Comment on the liquidity. Quote TWO financial indicators and figures
and provide a general comment. (5)
SCHEEPERS TRADERS
EXTRACT FROM THE FINANCIAL STATEMENTS - 28 FEBRUARY
2022 2021
Sales 3 660 000
Gross profit 1 220 000
Capital 950 000 880 000
Current assets 297 000 150 000
Inventory 198 000 60 000
2022 2021
Current ratio ? 2:1
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QUESTION 3: RECONCILIATIONS (30 marks; 25 minutes)
3.1 The following information appeared in the books of Litchie Traders for September
2022.
REQUIRED:
3.1.1 Use the information given below calculate the correct balance on the
INFORMATION:
A The Debtors control balance on 30 September 2022 was R28 360.
B The Debtors List extracted on 30 September 2022 showed the following
balances:
R
S. de Swardt 6 350
M. Mkumbeni 11 770
K. Kompi 8 600
A. van Tonder 9 840
TOTAL 36 560

(i) The total in the Debtors Journal was undercast with R5 750.
(ii) An invoice to M. Mkumbeni was recorded in the journal as R9 600
instead of R6 900.
(iii) Charged K. Kompi account with R55 interest. No entry was made.
(iv) A van Tonder purchased goods for R5 150. This was correctly
recorded in the journal but posted to the account of S de Swardt.
Rectify the error.
(v) A return of goods by K. Kompi for R675 was correctly recorded in the
journal but posted to the wrong side of her account.
(vi) A. van Tonder send R4 000 goods back to the business.
(vii) Write the account of M. Mkumbeni off as bad debt. No entry was
made.
(viii) The total in the Debtors Allowances Journal was overcast with
R1 100.
30

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QUESTION 4: BUDGETS (10 marks; 15 minutes)

4.1 EYBERS STORES
The business sells handbags to the public.

REQUIRED:
4.1.1 Provide ONE reason why is it important to prepare a budget? (1)
4.1.2 Calculate the following on 30 November 2022:
• Total receipts (3)
• Total payments (4)
• Surplus/Deficit (3)
INFORMATION
A. R
Cash sales 55 400
Cash purchases 31 200
Rent income 5 700
Salary and wages 11 200
20
QUESTION 5: MANUFACTURING (20 marks; 15 minutes)

5.1 Choose the description in column B that best describes the concept in
column A. Write only the letter (A – C) next to the question number
(5.1.1 – 5.1.3) in the Answer Book.
COLUMN A COLUMN B
5.1.1 Indirect labour A This is the raw materials used in the
production process.
5.1.2 Selling and B This is the amount paid to factory
distribution cost cleaners.
5.1.3 Direct materials C Bad debt forms part of it. (3)
5.2 JARDIM MANUFACTURES
Jardim Manufacturers make chairs. The business sells the chairs at a mark-up
of 80% on cost. The financial year ended 30 November 2022.
REQUIRED:
5.2.1 Calculate the following
• Direct labour cost (4)
• Factory overheads (7)

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5.2.2 Calculate the direct material cost per unit (2)

5.2.3 Calculate the total cost of production. There was no work in progress in
the business. (4)
INFORMATION:
A The following costs occurred during November 2022:
R
Direct material issued for production 372 000
Direct labour cost ?
Maintenance in the factory 11 800
Indirect material for the factory 25 400
Commission to salespersons 111 222
Salary paid to supervisor 81 450
Rent expense 160 000
Wages paid to factory cleaners 25 550
B Additional information
(i) Water and electricity must be split between the factory and the sales
department in the ratio 3 : 1.
(ii) 70% of the rent expense relates to the factory.
(iii) Direct wages of the factory workers
Normal hours Rate for Overtime

Hours
Worker worked for normal
overtime
the year time
Tello 1 570 R30 85 1 ½ times
normal
rate
Other Total wages of other workers = R233 575.
(iv) The business produced 1 200 chairs for the year.
20
TOTAL: 150

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QUESTION 2: RECONCILIATION (35 marks; 30 minutes)
CONCEPTS
2.1 Choose the correct word(s) in brackets to correct the statement. Write only the
word(s) next to the numbers (2.1.1 – 2.1.3) in the ANSWER BOOK.
2.1.1 A debtor is a person who buys (cash/on credit) from the business. (1)
2.1.2 Credit note is a source document of the (Debtors Allowance Journal/
Creditors Journal). (1)
2.1.3 The balance of Debtors control account must agree with the balance of
(debtors list/creditors list). (1)
2.2 Study the ledger account provided and answer the questions that is given:
2.2.1 Describe in words the transactions that took place on numbers 1, 2
and 3. (3)
2.2.2 The business is not selling a good product. Provide ONE reason with
figures to state your answer. (4)
2.2.3 Provide ONE reason for the R240 on the debit side and ONE reason
for the R330 on the credit side. (4)
2.2.4 Calculate how much the debtors owe at the end of the month. (4)
2.2.5 Give TWO reasons why a EFT can be returned to the drawer. (2)
GENERAL LEDGER OF MEME STORES

BALANCE SHEET ACCOUNT SECTION
Dr DEBTORS’ CONTROL Cr
2018 2018
Oct 1 Balance b/d 5 200 Oct
31 Bank ② CRJ 4 000
31 Debtors
Sales ① DJ 18 000 DAJ 9 000
allowances③
Sundry accounts/ GJ Sundry accounts/
240 GJ 330
Journal debits Journal credits
Balance c/d
23 440 23 440
Nov 1 Balance b/d

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2.3 CREDITORS' RECONCILIATION
The Creditors' Control account and the Creditors' List for September 2018 was
prepared by the bookkeeper. There were some errors and omissions.
The balance in the Creditors' control account was R21 105 whereas the total in
the Creditors' list was R25 315 on 30 September 2018
REQUIRED:
2.3.1 Indicate the corrections that must be made to the Creditor's Control
account in the General Ledger and Creditors' list by showing the
amounts with: + for increase; - for decrease. (15)
INFORMATION:
The following errors and omissions were discovered:
A. The Creditors Journal was overcast by R1 000.
B. A debit note of R2 000 was not entered in the Creditors Allowances
Journal.
C. An amount of R3 090 in the Creditors Journal was incorrectly posted to
a creditor’s personal account as R3 900.
D. The Debtors’ Control column total of R9 000 in the Cash Payments
Journal was erroneously posted to the Creditors’ Control account.
E. Goods purchased on credit 30 September 2018 for R4 600 was
recorded correctly in the relevant Journal. However, this entry was not
posted to the account of the creditor in the creditors’ ledger.
35
QUESTION 3 : CASH BUDGET (25 marks; 20 minutes)

3.1 The grade 8 learners plan a Soccer tournament on the school fields to raise
funds to buy a new school bus.
REQUIRED:
3.1.1 Calculate the following figures for the budget:
• Total expected receipts from the Soccer tournament (6)
• Total expected payments (5)
• The total surplus for the soccer tournament (3)

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INFORMATION
There are 20 soccer teams from surrounding schools who will enter. A team
pays R1 000 to enter. Spectators pays R80 to watch the matches.
A Tickets
• 20 teams will enter.
• 800 spectators will watch the matches
B Tuck shop
• Sales, R8 000
• Profit made from tuck shop sales, R6 000
C Rent
• The school will rent the fields at R1 500.
D Trophies
• R 2 500 for all trophies
3.2 Andrews Store mainly trades in sport equipment. The business maintains a
fixed mark-up on cost.
REQUIRED
3.2.1 Calculate the following financial indicators for the year ended
30 June 2018:
• Gross profit on cost of sales (3)
• Net profit on sales (3)
• Operating expenses on sale (5)

INFORMATION:
INCOME STATEMENT OF ANDREWS STORE - 30 JUNE 2018
R
Sales 1 152000
Cost of sales (720 000)
Gross profit 432 000
Other operating income 62 560
Gross operating income 494 560
Operating expenses ?
Operating profit 322 560
Interest expense (42 000)
Net profit for the year 280 560
25

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QUESTION 4: MANUFACTURING & CALCULATIONS (30 marks; 25 minutes)
Match the words in Column A with the most appropriate explanation provided in
Column B. Write the letter only, next to each number.
4.1 COLUMN A COLUMN B
4.1.1 Fixed cost A Costs that change depending on the
number of units produced.
4.1.2 Variable cost B Costs related to and easily traced to the
making of a product.
4.1.3 Direct cost C Specialised labour involved in the
processing of materials to produce the final
products.
4.1.4 Direct labour cost D Costs that must be paid regardless of the
number of units being produced. (4)
4.2 COST CALCULATIONS
Anile Ziba is a small business that manufactures baseball jackets.

REQUIRED:
4.2.1 Give TWO examples of variable costs and TWO examples of fixed
costs. (4)
4.2.2 Calculate the following:
• Direct material cost (3)

• Factory overhead costs (5)
• Total cost of production (4)
• Unit cost of a jacket (3)
4.2.3 Ziba is considering importing raw materials because it is cheaper and
of a higher quality. Name TWO aspects that he must consider before
finalising his decision. (4)
INFORMATION:
A. The following costs were incurred during July 2018
R
Fabric used in the production of the jackets 150 200
Badges, cotton and buttons 13 600
Wages paid to machine operators 96 520
Wages paid to fabric cutters 20 540
Salary to factory manager 16 200
Cleaning material used in the factory 7 740
Factory sundry expenses 15 360
Advertising expenses 9 020
Office stationery 2 660

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B. Additional Information:
3 000 baseball jackets were manufactured during July 2018.
30
QUESTION 5: INVENTORY AND FIXED ASSETS (40 marks; 30 minutes)

5.1 INVENTORIES
REQUIRED:
5.1.1 In which section do we record Trading stock account in the ledger? (1)
5.1.2 Provide the missing contra account for A, B and C. (3)
5.1.3 Complete the missing folio numbers for D, E and F. (3)
5.1.4 Provide the source documents in (i), (ii) and (iii). (3)
5.1.5 There was a burglary on 31 October 2018 and the value of the stock
stolen were correctly calculated as R2 000. Suggest TWO possible
solutions to prevent this in the future. (4)
5.1.6 Provide TWO reasons (except theft) how a trading stock deficit can
occur. (4)
5.1.7 The business maintains a mark-up percentage of 80% on cost price.

Calculate the credit sales for the month. (3)
GENERAL LEDGER OF JOSEPHINE TRADERS

TRADING STOCK ACCOUNT
2018 2018 CRJ
Oct 1 Balance b/d 57 400 Oct 31 Cost of sales 800
(i)
31 Bank D 28 444 Cost of sales F 17 320
CJ
A 28 000 B GJ 9 000
(ii)
CAJ
Cost of sales E 2 554 C 4 888
(iii)
Theft GJ 2 000
Trading stock
GJ 1 200
deficit
Balance c/d 81 190
116 398 116 398
July 1 Balance b/d 81 190

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5.2 FIXED ASSETS

The following information was extracted from the books of Didi Shop for the
financial year ended on 30 June 2018.
REQUIRED:
5.2.1 Calculate the depreciation on 30 June 2018:
• On Vehicles (7)
• On Equipment (7)
5.2.2 After the extension and repairs were done to the building, the building
was valued at R500 000. Which amount will the business put in the
financial statements? (3)
5.2.3 Why do you think it is important for any business to do maintenance
on their property? (2)
INFORMATION
EXTRACT OF BALANCES ON 1 JULY 2017 IN THE LEDGER
R
Vehicles 190 000
Equipment 60 000
Accumulated depreciation on Equipment 5 600
A Land and building
• Expanded the shop for R50 000 and paid for repairs to the building
for R15 000. This transaction was not recorded.
B Equipment
• The business bought computers and printers for the office,
R30 000 on 31 March 2018. This has been properly recorded.
• Depreciation must be calculated at 10% p.a. on the cost price
method.
C Vehicles
• A vehicle was bought on credit on 1 October 2017 for R160 000.
No entries have been made of this transaction.
• Depreciation must be calculated at 10% p.a. on the on carrying
value method.
40
TOTAL : 150 MARKS

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QUESTION 1: RECONCILIATION (40 marks; 30 minutes)
CONCEPTS
1.1 Choose the correct word(s) in brackets. Write only the word(s) next to the
numbers (1.1.1 – 1.1.4) in the ANSWER BOOK.
1.1.1 A debtor is a person who buys on (credit/cash) from the business. (1)
1.1.2 A source document used when goods are returned to suppliers is a
(debit note/ credit note). (1)
1.1.3 Interest charged on overdue account will (increase/decrease) amount
owed to creditor. (1)
1.1.4 When the owner withdraw R5 000 cash it is recorded in the (General
Journal/ Cash Payment Journal). (1)
1.2 MOTSWELA STORES
REQUIRED:
1.2.1 Provide the correct detail or folio for A – C. (3)
1.2.2 Calculate the correct balance due to creditors on 1 November 2019. (4)
1.2.3 Provide ONE reason for the entry of R4 900 on the credit side. (2)
1.2.4 Give TWO reasons why a EFT can be returned to the drawer
(dishonoured). (2)
GENERAL LEDGER OF MOTSWELA STORES

BALANCE SHEET ACCOUNT SECTION
Dr CREDITORS’ CONTROL Cr
2019 2019
Oct 31 Bank and Discount (A) 65 000 Oct 1 Balance b/d 44 400
Sundry accounts/ CAJ 24 000 31 (B) CJ 96 000
Total returns
Sundry accounts/ Sundry accounts/
GJ 2 240 (C) 4 900
Journal debits Journal credits
Balance c/d ?
145 300 145 300
Nov 1 Balance b/d ?

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1.3 DD TRADERS
The business is owned by R. Rebecca.
REQUIRED:
1.3.1 Provide ONE reason why the balance in the Debtors’ Control Account
must agree with the balance of the Debtors’ List. (2)
1.3.2 List the corrections that the bookkeeper must make to the Debtors' Control
Account on 31 October 2019 in the General Ledger. (5)
1.3.3 Prepare the correct Debtors List on 31 October 2019. Indicate the
changes that must be made to the balances of each debtor. Show each
change by with a + or – sign. (18)
INFORMATION:
A. On 31 October 2019, the Debtors Control account had a balance of
R48 900.
B. Debtors List on 31 October 2019:
R
D. Damien 15 800
N. Nocanda 8 600
M. Mochela 12 400
K. Katlego 10 900
47 700
C. The following differences were identified:

• An invoice for R6 400 issued to D. Damien was not recorded in the
books of DD Traders.
• An EFT payment of R8 450 by N. Nocanda for settling her account of
R8 600 had been left out of the CRJ.
• An invoice for R4 489 issued to M. Mochela was posted incorrectly to
the account of K. Katlego. Rectify the error.
• An EFT for R8 700 originally received from D. Damien as partial
payment of her account, was returned by the bank, marked R/D. No
entries were recorded in the books.
• An invoice for R4 500 issued to M. Mochela was recorded correctly in
the Debtors' Journal, but posted as R5 400 to his account in the
Debtors' Ledger.
• An invoice for R1 050 to K. Katlego was treated as a return of goods
when posting it to the Debtors' Ledger Account of K. Katlego. The
Debtors Control account is correct.
40

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QUESTION 2: INVENTORY
2.3 NOSI STORES

Nosi Vanneer sells television sets and uses the perpetual inventory system.
Goods are sold at a mark-up at 50% on cost price.
REQUIRED:
2.3.1 Prepare the Trading Stock account on 30 September 2019. (11)
2.3.2 Nosi suspects that customers are stealing stock despite the cameras that
were installed. Provide ONE suitable reason and a figure to support her
suspension. (2)
INFORMATION
MAY 2019
1 Trading stock balance at the beginning of the month R 138 500
31 Sales of stock per EFT 66 600
Credit purchases of stock 71 900
Cash purchases of stock 24 700
Total value of goods returned by debtors (cost price) 22 200
Total value of goods returned to creditors 10 880
Theft of stock 2 500
Trading stock balance at the end of the month ?

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QUESTION 3: MANUFACTURING (30 marks; 25 minutes)

3.1 Match the words in Column A with the an explanation provided in Column B.
Write the letter only, next to each number in the ANSWER BOOK.
COLUMN A COLUMN B
3.1.1 Fixed cost A Costs that change depending on the number of
units produced.
3.1.2 Variable cost B Costs easily traced to the making of a product.
3.1.3 Direct cost C Running costs of the factory.
3.1.4 Overheads D Costs that are not related to the number of units
produced. (4)
3.2 TELLO MANUFACTURERS

Tello Manufacturers is a business that manufactures rugby jerseys.
REQUIRED:
3.2.1 Give TWO examples of variable costs and TWO examples of fixed
costs. (4)
3.2.2 Calculate the following
• Direct material cost (3)
• Factory overhead costs (5)
• Total cost of production (4)
• Unit cost of a jersey (3)
3.2.3 Tello is considering importing raw materials because it is cheaper and
of a higher quality. Name TWO aspects that he must consider before
finalising his decision. (4)
INFORMATION:
A. The following costs were incurred during July 2019:
R
Fabric used in the production of the jerseys R300 400
Badges, cotton and buttons 27 200
Wages paid to machine operators 193 040
Wages paid to fabric cutters 41 080
Salary to factory manager 32 400
Cleaning material used in the factory 15 480
Factory sundry expenses 30 720
Advertising expenses 18 040
Office stationery 5 320
B. Additional information:
6 000 rugby jerseys were manufactured during July 2019.
30

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QUESTION 4: FIXED ASSETS AND INTERNAL CONTROL (30 marks; 25 minutes)

4.1 FIXED ASSETS HALL
You are provided with information from the records of Mokoatsi Traders for
the financial year ended 30 June 2019:
REQUIRED:
4.1.1 Provide ONE point why it is important to have an asset register for the
business. (2)
4.1.2 Calculate the depreciation on 30 June 2019
• On vehicles (6)
• On equipment (6)
4.1.3 After the extension and repairs to land and buildings were completed,
the extensions costed R85 000. Calculate the total amount of Land and
buildings and indicate in which financial statement it will be recorded. (3)
4.1.4 Explain why you consider maintenance to property to be an important
aspect. (2)
INFORMATION
Extract of balances on 1 July 2018
R
Vehicles 323 000
Equipment 102 000
A. Land and buildings
• Made extensions to the shop, cost R85 000, and paid for repairs to
the building for R25 500. This transaction was not recorded.
B. Equipment
• The business bought computers and printers for the office, R51 000,
on 31 March 2019. This has been properly recorded.
• Depreciation must be calculated at 10% p.a. on the cost price
method.
C. Vehicle
• A vehicle was bought on credit on 1 October 2018 for R272 000. No
entries have been made of this transaction.
• Depreciation must be calculated at 10% p.a. on the carrying value
method.

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4.2 CALCULATIONS
Leeuw Suppliers mainly trades in sport equipment. The business maintains a

fixed mark-up on cost.
REQUIRED:
4.2.1 Calculate the following financial indicators for the year ended
30 June 2019:
• % Gross profit on cost of sales (3)
• % Net profit on sales (3)
• % Operating expenses on sales (5)
INCOMESTATEMENT (STATEMENT OF COMPREHENSIVE
INCOME) OF LEEUW SUPPLIERS ON 30 JUNE 2019
Sales 921 600

Cost of sales (576 000)
Gross profit ?
Other operating income 50 048
Gross operating income 395 640
Operating expenses ?
Operating profit 258 048
Interest expense (33 600)
Net profit for the year ?
30
QUESTION 5: CASH BUDGET (25 marks; 20 minutes)

5.1 Indicate whether the following statements are TRUE or FALSE. Write only
'true' or 'false' next to the question number (5.1.1–5.1.4) in the ANSWER
BOOK.
5.1.1 The purpose of a cash budget is to calculate the net profit of a

business.
5.1.2 A capital budget refers to the outlay of funds for large projects.
5.1.3 Receipts and payments are only recorded in the month due.
5.1.4 Depreciation will be shown as a payment in a Cash Budget. (4)

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5.2 Kabi Vegetable Store sells vegetables to the street vendors.

REQUIRED:
5.2.1 Why it is important to prepare a budget. (2)
5.2.2 Explain the difference between a “Zero-based budget” and “
Incremental budget”. (2)
5.2.3 REFER TO INFORMATION A
• Calculate the amount of total cash on 30 September 2019. (3)
• Calculate the total payments for September 2019. (5)
• Indicate whether the amount is shortfall or surplus. (1)
INFORMATION
A. Transactions for September 2019:
R
Bank on 1 September 2019 (Dr) 23 760
Cash sales of vegetables 16 650
Cash purchases of vegetables 11 550
Wages paid 5 600
Transport paid 2 468
Sundry expenses paid 8 642
5.3 CONTROL OF STOCK:

You are provided with information taken from the books of Leoneda Furnishers
for the financial year ended 30 June 2019. The business is owned by
L. Leoneda. The business sells furniture as well as a number of other
household appliances.
REQUIRED:
5.3.1 Lounge sets:
• What decision did Leoneda take regarding the selling price of the
lounge sets? (2)
• How has this decision affected the business? State ONE point. (2)
5.3.2 Fridges:
Leoneda change her supplier on fridges during 2019. Explain why this
was not a good decision. Give TWO reasons with figures. (4)

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INFORMATION:
LOUNGE SETS FRIDGES

2019 2018 2019 2018
Orders received from
300 370 425 615
customers
Gross units sold 300 365 200 615
Returns by customers 0 5 115 5
Selling price R2 500 R2 000 R975 R1 326
Gross profit R336 000 R259 200 R138 450 R327 600
25
TOTAL MARKS: 150
GRADE 10 ACCOUNTING FINANCIAL INDICATOR FORMULA SHEET
Gross profit X
Gross profit X 100 Net profit before tax X 100
100
Cost of sales 1 Sales 1
Sales 1
Operating expenses X 100 Operating profit X 100

Sales 1 Sales 1
(Current assets – Inventories) : Current

Current assets : Current liabilities
liabilities
(Trade sand other receivables + Cash and cash equivalents) : Current liabilities
Net profit X 100

Total assets : Total liabilities
Average Owner’s equity 1

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Accounting – Grade 10 1 Questions 2023

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QUESTION 1: SOURCE DOCUMENTS AND CASH AND CREDIT JOURNALS

TRANSACTION SOURCE DOCUMENT

1.2 CASH AND CREDIT JOURNALS

1.2.1 Complete the Debtors Journal for January 2018. (6)

TRANSACTIONS FOR JANUARY 2018:

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15 Made an EFT payment in favour of Rakotsoana Store for the following:

Matching, Going concern, Business entity, Materiality, Historical cost

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2.2 GENERAL LEDGER

Prepare the following ledger accounts in the General Ledger:

2.2.1 Bank (6)

Balances/Totals in the General ledger on 1 February 2018:

SUMMARY OF THE JOURNALS OF NOSI TRADERS FOR FEBUARY 2018

CASH RECEIPTS JOURNAL CRJ - 5

CASH PAYMENTS JOURNAL CPJ – 5

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QUESTION 3: ACCOUNTING EQUATION, INTERNAL CONTROL AND ETHICS

3.1 ANALYSIS OF TRANSACTIONS

Example: Bought stationery for R270 and paid by EFT.

No Account Account Assets Owner’s Liabilities

3.2 INTERNAL CONTROL AND ETHICS

TOTAL MARKS: 100

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QUESTION 1: SOURCE DOCUMENTS AND JOURNALS 30 marks, 18 minutes

Indicate if the following statements true or false is.

1.2 CASH JOURNALS

15 Buy trading stock electronical from Makpro, R6 000. Transport costs of

23 Draw cash from the ATM to pay the following:

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The bank informs us that an overdraft of R10 000 was approved

QUESTION 2 GAAP; GENERAL AND SUBSIDAIRY LEDGER 40 marks; 24 minutes

2.1 GAAP PRINCIPLES

Matching principle, going concern principle, business entity principle,

2.1.1 The financial statements are drawn up in such a way as if the

2.1.3 All relevant information must be shown separately in the

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2.2 GENERAL LEDGER (24)

2.2.1 Trading stock (12)

2.2.2 Debtors control (12)

A. Balances on 1 February 2019:

B Summary of transactions for February 2019. The business maintains

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2.3 DEBTORS LEDGER (11)

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QUESTION 3:ACCOUNTING EQUATION, INTERNALCONTORL AND ETHICS

no. Account Account Assets Owners’ Liabilities

Problems with the petty cash

TOTAL MARKS: 100

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QUESTION 1: CASH JOURNALS (50 marks, 30 minutes)

1.2 CASH JOURNALS

TRANSACTIONS FOR FEBRUARY 2020:

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QUESTION 2: GAAP PRINCIPLES AND LEDGER ACCOUNTS

Materiality, Going concern, Business entity,

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