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Q1— Section header —
1.1.1Value added tax
1.1.20% Zero rated
1.1.3First In First Out
1.1.4Perpetual /Continuous
1.2Calculate the final amount payable to SARS on 31 July 2014. Mark one line only choose method to benefit candi date any one part correct + 126 000 + 273 6 692 1 330
1.3Explain the effect that this will have on the gross profit. Gross profit will increase (by R20 850\ ONE valid reason for changing the stock valuation method: Award part
2.3.1Explain what action should be taken against J van Wyk. State TWO points Any two alid point Must be 2 separate points Cannot conflict with each other
2.3.2What must the business do to prevent a similar incident in future? Explain THREE points. Any THREE valid point Must be 3 separate points For 2 marks:
Q3— Section header —
3.1.1SHARE CAPITAL AUTHORISED SHARE CAPITAL 750 000 ordinary shares ISSUE D SHARE CAPITAL 450 000 Ordinary shares in issue on 1 March 2013
3.1.2RETAINED INCOME alance March 2013 Net profit after tax Shares repurchased operation one part correct and in brackets 75 000 x 2,90 if R10,40
3.2VIJAY LIMITED BALANCE SHEET STATEMENT OF FINANCIAL POSITION FEBRUARY ASSETS Non current assets peration otal assets
3.1.1412 500 Retained income see
3.1Non current liabilities Loan : W illiam Bank (482 600 + 81 400 112 800
3.3Calculate the return on average shareholders equity for 2014. 700 see 3.1.2 x 100 = 22,0% operation, %, one part correct
3.4From 2013 to 2014 the directors made a deliberate decision to change the policy on the distribution of profits in the form of dividends. Comment on this change. Quote financial indicators or figures to
3.5Comment on whether the s hareholders should be satisfied with the percentage return and the market price of their shares. Quote TWO relevant financial indicators (actual figures/ratios/percentages\ and
3.6The external auditors Hassan and Jacob have employed Janet to work on the audit of Vijay Ltd. Janet owns 10 000 shares in Vijay Ltd. Explain why this is a problem. Any one valid reason; part marks for partial
Q4— Section header —
4.1Calculate the m issing amounts (indicated by a, b and c\ in the Fixed/Tangible Asset Note for the year ended 28 February 2014. NO. WORKINGS AMOUNT 6 740 000 2 689 000
4.2METE OR SUPERMARKETS LTD CASH FLOW STATEMENT FO R YEAR ENDED 28 FEBRUARY 2014 Cash flow from operating activities (1 039 900\ Operation# Cash generated from operations Interest paid
4.3At the AGM, a shareholder stated that the Cash Flow Statement reflects po or decisions by the directors. Explain TWO points, with relevant figures, to support his opinion. Any TWO valid answers: Explanation
4.4.1Calculate the net asset value per share for 2014 839 000 450 000 = 610 cents one part correct ; R or c
4.4.2Calculate the ebt quity ratio for 2014 908 000 000 = 0,1 : 1 one part correct; ust be x:1
Q5— Section header —
5.1List FOUR items that should not have been placed in this ash udget. Discount received Bad debts Cost of sales Depreciation 1 for each superfluous additional item if four marks are earned
5.2CREDITORS PAYMENT SCHEDULE MONTH CREDIT PURCHASES OCTOBER NOVEMBER DECEMBER August
5.4.1Calculat the period for which enough stock is on hand (in days\ on September 2014. 250 000 x 365
5.4.2Calculate the mark up percentage achieved for the year ended 30 September 2014. 552 600 two marks 780 600 000 228
5.4Comment on whether or not the change in the mark up percentage has benefited the business. Give a calculation(s\ to support your opinion. Answer for FOUR
Q6— Section header —
1.1Calculat e the irect abour ost Normal time: 1 920 x R95 182 400
6.1.3PRODUCTION COST STATEMENT FOR THE YE AR ENDED JULY 2014 Direct material cost Direct labour cost see 6.1.1 Prime cost operation 236 564
6.2BEN S CATERING
6.2.1Identify ONE unit cost for doughnuts and TWO unit costs for pies that were major problems in 2014, considering that the inflation rate was 5%. Identify cost Figures Problem Valid advice Trends not necessary
6.2Calculate the number of extra doughnuts he must produce and sell to make an additional profit of R15 Assume that the unit costs and selling pri ce for 2014 remain unchanged. If candidates use alternative methods, search
6.2.3Name the product which has been negatively affected by the new competitor. Pies Comment on how this would have affected the net profit on this product. Sales & production