Accounting Memo 1 (English)

May-June 2018 — Grade 12 / Matric — Accounting

Memo 2018 Grade 12 English Accounting Hub →

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🎯 300 marks 📄 16 pages 📝 64 items found 📚 8 topics

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Q1— Section header —

1.1CASH RECEIPTS JOURNAL CASH PAYMENTS JOURNAL R510 607 R488 260 4 800 6 250 1 425 one mark

1.1.2Calculate the Bank Account balance in the Ledger of Hartfield Suppliers on 30 April 2018. Accept alternative ar rangements for calculations such as ledger account / equation form. R30 975 Signs may be omitted (or brackets may be used\,

1.3Bank Reconciliation Statement on 30 April 2018 max for presentation of details if marks earned on figures One column method. Mark signs

1.1.231 837 53 387 53 387 Foreign entries 1 (max 1\ e.g. 6 950; 12 675; 18 450; 30 975 (from previous recon\ And/or other foreign entries incorrectly duplicated in journals and/or reconciliation (mark scored elsewhere\

1.2The internal auditor is concerned about the management of cash.

1.2Explain TWO different problems to justify her concern. Quote figures. Any TWO valid responses: Problem Theft Rolling

1.3Explain TWO benefits of using the electronic funds transfer (EFT\ system rather than cheques for direct payments to suppliers. Any TWO valid response Part marks for unclear/incomplete explanatio Cheaper than cheque payments

Q2— Section header —

2.1Accept abbreviations

2.1.1Selling and distribution cost

2.1.2Direct labour cost

2.1.3Direct/raw materials cost

2.1.4Administration cost

2.2TIGHT FIT MANUFACTURERS

2.2.1Calculate: alue of the closing stock of raw materials Workings Answer 2 607 000 900 23 700 110 two marks 000

2.2.2Production Cost Statement for the year ended 31 March 2018. Incorrect placement of DMC and FOHC : do not award t icks for details 1 presentation if WIPS details not given; Will also lose method marks on Prime cost subtotal

2.2.1178 000 Direct labour cost 522 000 Prime cost Must be DMC + DLC 700 000 Factory overhead cos

2.2.1Total manufacturing costs Operation one part correct , DMC+DLC+FOHC regardless of placement 562 500 Work process at beginning

2.2.3Give TWO reasons why the business should support local suppliers. Reasons: Any TWO relevant reasons No import charges will be paid Less transport costs Prices more stable / prices not influenced by fluctuations in exchange rates.

2.3BREAK TIME MANUFACTURERS

2.3.1Calculate the d irect labour cost for the year ended 30 April 2018. Workings Answer 500 x R7,56 Two marks or nothing on final answer Calculate the b

2.3.2Explain why the owner should be concerned about the break even point. Quote figures. Compare BEP with level of production Figures The business produced and sold 331 500 units. This is below the break

2.3.3Explain why the owner would NOT be satisfied with the direct labour cost per unit. Quote figures. rend Figures Explanation Do not accept comment on total DLC

Q3— Section header —

3.1Calculate the value of the closing stock of bicycles 31 May 2018. Workings Answer Tempo 8 500 x Must multiply by correct cost price 34 000

3.1.2Calculate the selling price of a Ryder bicycle. peration, o ne part correct R979 020 = R9 990 One mark One mark One method mark 400 x 135/100 = R9 400 + R2 590 = R9 Calculate the average number of Ryder bicycles sold per month.

3.2.1Explain why it was NOT a good idea to change to a cheaper supplier of shirts. State TWO points. Any two valid points Explanations Figures

3.2.2Celia decided to change the supplier in 2018 and to change the mark up %. How has this decision affected the business? State TWO points. Any two valid points Explanations Figures Possible answers: Total units sold decreased from 165 to 150

3.2.3Make TWO separate suggestions to Celia to improve the profit on pants in 2019. Any two valid points Explanations Figures Possible answers: Advertise more to increase the sales as it went down from 325 to 280

Q4— Section header —

4.1.1True Accept abbreviations for T or F

4.1.2False

4.1.3True

4.1.4False

4.1.5False

4.2MODISE LTD

4.2.1RETAINED INCOME Ignore foreign items ; presentation 1 max Balance at beginning of year R567 000 Funds used for shares repurchased (250 000 x R0,25\

4.2.2MODISE BALANCE SHEET ON 28 FEBRUARY 2018 ASSETS Non current assets Operation, TA 13 38 500

4.2.1or 3 400 000 x 27% SARS: Income tax one part correct Loan (current portion\ ee above 000 TOTAL EQUITY

4.2.3The directors want to give R500 000 to a local school. Give TWO reasons why companies take such decisions. Any TWO valid reasons Part

4.3AUDIT REPORT

4.3.1Briefly explain the role of an independent auditor. ONE valid explanation Part marks for unclear / incomplete answer The independent auditor expresses an opinion on the fair presentation of the financial statements

4.3.2Did Denga Limited receive a qualified/unqualified/disclaimer of opinion audit report? Qualified report May be underlined in answer book Briefly explain your choice. Mark independent of the decision above

4.3.3

Q5— Section header —

5.2MALOTRA LTD Ignore brackets in final answer

5.2.1Workings Answer 192 350 350 936 000 + 419 750

5.2.2Calculate the net profit after income tax on 28 February 2018. Workings Answer 200 or 000 one mark 200 one mark

5.2.3Calculate the ividends paid Workings Answer 000 + 332 000 000

5.2.4Net change in cash and cash equivalents Operation, from bottom up Cash and cash equivalents (opening balance\ (109 600\ Must be in brackets Cash and cas h equivalents (closing balance\ 36 400

5.2.5Calculate the a cid test ratio Workings Answer two marks 136 700

5.2.6The directors decided to increase the loan during the current financial year. Explain whether this was a good decision or not. Quote TWO financial indicators (with figures\ Debt/equity ratio 0,2: (see 5.2.5\

5.2.7Comment on the price paid for the shares repurchased on 1 January 2018. Quote TWO financial indicators (with figures\. Must compare NAV and market price to repurchase price (not average share price price\

5.2.8Thandi Nene owns 416 000 shares in the company. When the directors decided to issue a further 200 000 shares during October 2017, she decided not to buy more shares and rather spend her funds on an overseas holiday.

Q6— Section header —

6.1.1The main purpose of a Cash Budget is to Part marks for incomplete / unclear response Project / estimate the expected bank balance at end of budget period.

6.1.2The main purpose of a Projected Income Statement is Part marks for incomplete / unclear response Project / estimate the expected net profit for the

6.2.1Debtors Collection Schedule: CREDIT SALES MAY 2018 JUNE 2018 March 2018 22 680 April 2018 25 920

6.2.2Determine the d iscount allowed for May 2018 See 6.2.1 Operation, o ne part correct 180 000 30% x 5%

6.3Calculate the cash sales for May 2018 Workings Answer 300 000 x 40% 300 000 180 000 No part marks 120 000 Calculate the p

6.4.1Tony is not concerned about the overspending in advertising. Explain why this is so. Quote figures to support your answer. Candidates must indicate the positive effect of advertising on sales Provide appropriate figures

6.4.2State ONE consequence of not paying the amount due to creditors in April 2018. Any ONE valid consequence Part marks for incomplete / unclear response Credit to the business will be stopped by the creditors.

6.4.3State TWO points in favour of appointing Gentex Cleaning Services. Any two valid response Figures not required but may be provided as part of an explanati Part marks for incomplete / unclear response

Topics Identified

Bank ReconciliationVATManufacturingBudgetingFinancial StatementsCompaniesDebtors ControlCreditors Control

Mark Allocation

Total300 marks

Paper information

SubjectAccounting

Year2018

SessionMay-June

TypeMemo

PaperPaper 1

LanguageEnglish

Pages16

Downloads4

Examination context

Decade2010s

Years ago8y

Season—

Start day—

Exam period—

Days since exam—

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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checking numerical accuracy

A practical revision approach

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