Accounting Memo 1 (English)

November 2018 — Grade 12 / Matric — Accounting

Memo 2018 Grade 12 English Accounting Hub →

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🎯 300 marks 📄 17 pages 📝 65 items found 📚 9 topics

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Q1— Section header —

1.1.1False

1.1.2True

1.1.3True Acc ept recognizable abbreviations e .g. T or F

1.2KRIGE SHIRTS

1.2.1Calculate direct labour cost. 960 x 90 three marks (normal time\ x 12% 504 if 12% of normal time 1 x

1.2.2PRODUCTION COST STATEMENT FOR THE YEAR ENDED 31 JULY Direct material cost Direct labour cost see 1.2.1 Prime cost if D MC + DLC 284

1.3GEMMA S MANUFACTUR ERS

1.3.1Calculate the break even point for the year ended 31 August 2018. 118 860 two marks 67 200 + 51 660 910

1.3.2Compare and comment on the break even point and the production level achieved over the last two years. Quote figures. Part marks for partial answers Compulsory response Comparison of the BEP with the level of production of 2018

1.3.3Give TWO reasons for the increase in direct material cost. Suggest ONE way to control this cost. REASONS: Any TWO valid reasons. Part marks for partial/incomplete answers. nflation ary increases

Q2— Section header —

2.1VAT

2.1.1WORKINGS ANSWER (a\ 1 104 960 (b\ 52 600 x 15% 890 one part correct

2.1.2You are the internal auditor. The sole owner, Samson, used a business cheque to buy a new car for R460 000 including VAT. This car is kept at home for his wife's use. Samson says the vehicle must be recorded as a

2.2CREDITORS LEDGER: ACCOUNT OF MARITI SUPPLIERS STATEMENT OF ACCOUNT Balance + 1 800 40 950 (c\

2.2.2The internal auditor insists that direct payments (EFTs\ must be used to pay suppliers. Explain ONE reason to support his decision. ONE reason part

2.2Besides dismissing Vernon, provide ONE suggestion for action to be taken against him. ONE valid point Part marks for partial or unclear answer Disciplinary hearing / criminal or civil charge / suspension /

Q3— Section header —

3.1.1Current assets Accept recognizable abbreviations e.g. NCA

3.1.2Operating income

3.1.3Non current asset

3.1.4Operating expense

3.2.1TEMBISO INCOME STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 201 Sales Choose the line which benefits the candidates 000 000\ x 1,40 = 000 000 x 90%

3.2.2ORDINARY SHARE CAPITAL AUTHORISED SHARE CAPITAL 1 600 000 ordinary shares ISSUED SHARE CAPITAL If no brackets, check operation 1 280 000 Ordinary shares on 1 March 2017 976 000 (300

3.2.3EQUITY AND LIABILITIES SECTION OF THE BALANCE SHEET SHAREHOLDERS EQUITY operation (added\ 200 600 Ordinary share capital 816 000 Retained income

3.3AUDIT REPORT

3.3.1Point 1 Opinion ONE valid point The auditors found no problem to report unqualified report statistical sampling used / met the required standard Point 2

3.3.2Point 4 TWO examples of ethical responsibilities Any TWO valid example Part mark for partial answer No colluding with management to overlook any material matter.

Q4— Section header —

4.1CALCULATION OF FINANCIAL INDICATORS FOR 2018 Calculate: % operating expenses on sales Workings Answer 1 900 000 x 100

4.1.2Calculate: A cid test ratio Workings Answer 775 000 two marks (2 427 000 1 652 000 \ : 1 244 000 Or: (410 000 + 365 000\ : 1 244 000

4.1.3Calculate: % return on shareholders equity Workings Answer 911 000 9 651 500 or 7 000 or 12

4.2FIGURES FOR 2018 CASH FLOW STATEMENT Be aware of alternative arrangements for calculations; accept final answers in brackets Final answer need not indicate inflow or outflow may ignore brackets Choose the line which best benefits the

4.2.1Calculate: Change in investments Workings Answer 25 000

4.2.2Calculate: Income tax paid Workings Answer 819 000 15 000 74 000 OR 819 000 + 15 000 + 74 000

4.2.3Calculate: Fixed assets sold (at carrying value\ Workings Answer 12 154 000 412 000 + 4 840 000 + 8 031 000 Or: 12 154 000 + 412

4.3Explain why the directors are satisfied with the improvement in cash and cash equivalents since 1 July 2016. Quote figures. ONE valid point relevant figure/s Part marks for partial or unclear answers Response for

4.3Identify THREE decisions that the directors made to pay for land and buildings. Points (with figures\ Decision 1 (with figure Issued shares (rights issue\: R4m Decision 2 (with figure

4.3From the Cash Flow Statement identify ONE decision made by the directors in 2017 that they did NOT make in 2018, besides the points mentioned above. Give a possible reason for the decision in 2017. Any one d

4.4Calculate: Total interim dividends paid for the 2018 financial year Workings Answer 520 000 280 000 R240 000

4.3Calculate the minimum number of additional shares that Dudu should have bought. Workings Answer 500 000 490 000 or +2

4.5.1Explain why it was necessary to purchase properties in other provinces instead of in KZN Any valid explanation e.g. Part marks for unclear / incomplete answers

4.5.2Give advice on what Ben Palo should say about the following topics: Advice on what to say on earnings per share Explanation/trend Figures comparison may be implied by the figures for two marks

Q5— Section header —

5.1.1/ FIFO

5.1.2/ Specific Identification

5.1.3/ Straight line

5.1.4/ Diminishing balance

5.2PACKER S SUITCASE SHOP

5.2.1Calculate the value of the closing stock on 30 June 2018 using the first first out method. one mark one mark 425 040 368 000 292 000

5.2.2Charles suspects that suitcases have been stolen. Provide a calculation to support his concern. Choose the line which best benefits the candidates. 420 + 130 3 050 496 = 4 units one part correct

5.2.3Charles is concerned about the volume of stock on hand. Calculate for how long his clo sing stock is expected to last 500 030 see 5.2.1 x 365 or 12 500

5.3MINDEW LIMITED

5.3.1WORKINGS ANSWER (i\ (1\ 000 (ii\ 000 (2\ 12 997

5.3.2Explain how the internal auditor should check that movable fixed assets were not stolen. Any ONE point Part marks for unclear / incomplete answers Conduct p hysical inspection (regular and random\ Compare to fixed a

5.3.3As an independent auditor, what advice would you give? Provide ONE point. ONE valid point Part marks for unclear / incomplete answers GAAP prescribes the historical (original\ cost

Q6— Section header —

6.1Debtors Collection Schedule for October 2018. MONTHS CREDIT SALES SEP. 2018 OCT. 2018 July

6.2Calculate: (i\ Cash sales for September 200 x 60/40 = 604 800 one part correct Or 1 008

6.3Calculate the % increase in salaries of sales assistants for October 2018. 702 x 100 = 10,5% one part correct 400 Explain whether the sales assistants should be satisfied with this increase.

6.4Refer to Information E

6.4.1Explain the effect of the new competitor on any TWO items in the budget for September . Provide figures. TWO valid point figures Total sales decreased from 008

6.4.2Identify TWO changes Donald implemented in October in response to the new competitor. Quote figures. Give ONE reason for EACH change. Item (with figures\ Possible reason Decrease in cash purchases from

6.4.3Explain why Donald feels that his decisions were successful. Provide TWO points (with figures\. TWO valid points (with figures\ Be aware of two points within one explanation Sales of air conditioners exceeded budget by 50 units (300

Topics Identified

VATDepreciationInventoriesManufacturingBudgetingFinancial StatementsCompaniesDebtors ControlCreditors Control

Mark Allocation

Total300 marks

Paper information

SubjectAccounting

Year2018

SessionNovember

TypeMemo

PaperPaper 1

LanguageEnglish

Pages17

Downloads8

Examination context

Decade2010s

Years ago8y

SeasonSpring (SH)

Start dayMonday

Exam periodNovember 2018

Days since exam2,909

About Accounting examination preparation

Grade 12 Accounting tests bookkeeping, financial statements, and interpretation of corporate data. Paper 1 covers VAT and manufacturing accounts, while Paper 2 tests partnerships and corporations.

Every available Grade 12 Accounting past paper and memorandum is collected in the Accounting hub at accounting.freemode.co.za — browse all years, sessions and languages in one place.

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accurate accounting calculations

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