acc gr12 june 2009 answer sheets blank
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ACCOUNTING GRADE 12
MID-YEAR EXAMINATION
2 June 2009
09H00
EXAMINER: MRS J ABRAHAMS
MODERATOR: MRS A MOYCE
WESTERFORD HIGH
SCHOOL
Question Topic Learners mark Mark allocation
1Debtors, Creditors and BankReconciliation
25
2 Companies Ledger accounts 50
3Cash flow, ratios and
commenting
70
4Inventory valuations andvalidations
30
5Financial statements of acompany
90
6. Company concepts and records 35
300
Learners name: (please print)
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QUESTION 1
1.1 Which debtor is in arrears?
2
1.2 Which two internal measures will you put in place to ensure that collection
from debtors takes place timeously?
4
1.3 Calculate the amount owed to Sweet Apple Traders by Fruity Traders
5
1.4 One of the cheques not presented for payment on the Bank Reconciliation
Statement has been treated incorrectly.
Which cheque is it?
Give a reason for your choice.
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What will the correct entry be in the books of Fruity Traders?
6
1.5 Calculate the Bank Balance as per Bank Account in the General Ledger
6
1.6 Give one reason why the preparation of reconciliations is important for internal
control
2
25
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QUESTION 2
2.1 Briefly explain the following:
Share Capital
2
Briefly explain the following:
Share Premium
2
Briefly explain the following:
Retained Income
2
2.2 Calculate the correct net profit before tax for the year
6
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2.3
SARS (Income Tax)
11
APPROPRIATION ACCOUNT
15
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2.4 Point in favour:
Point against:
2.5 Consider the complaint by Mary Moosa regarding Bhengus directors fees. Do you
agree with her? Explain
Consider the complaint by Ken Kelly. Is Bhengus response acceptable? What else
could he have said?
8
50
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QUESTION 3
3.1
CASH FLOW STATEMENT FOR THE YEAR ENDED 29 FEBRUARY 2008
R 000s
CASH FLOW FROM OPERATING ACTIVITIES
Cash generated from operations
Interest paid
Dividends paid
Taxation paid
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of tangible assets
Proceeds from disposal of tangible assets
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from the issue of new shares
Repayment of non-current liabilities
NET CHANGE IN CASH AND CASH EQUIVALENTS
Cash and cash equivalents: beginning of year
Cash and cash equivalents: end of year 30
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NOTES TO THE CASH FLOW
CASH GENERATED BY OPERATIONS
R 000s
Profit before taxation
Adjustment for:
Depreciation
Interest expense
Operating profit before changes in working capital
.. in inventory
Increase in Trade and other receivables/debtors (40 000)
Increase in Trade and other payables/creditors (65 000)
3.2 Calculate the percentage return on shareholders equity
6
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3.3 Comment briefly on the financial risk and return on own capital by
referring to:
Debt-equity ratio
2
Return on shareholders equity
2
3.4 Calculate the earnings per share for 2008
4
3.5 Would the shareholders be happy with the dividends per share? Give a reason
for your answer.
4
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3.6 Is the company liquid? Briefly explain by quoting figures from the financial
statements or financial indicators.
7
70
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QUESTION 4
4.1 Calculate the gross profit using the FIFO method according to the periodic
inventory system.
R
9
4.2 Give two possible reasons why the CEO of Zola Traders wants you to use
the FIFO method instead of the weighted average method. Quote figures
from the information given and 4.1 to support your answer.
6
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4.3 Would you as a professional accountant agree to comply with all the
requests made by the CEO? Provide two detailed explanations to support
your answer.
5
4.4 As an experienced accountant identify one problem that you have foundwith the stock figures given by the CEO. Show relevant calculation to
support your answer.
4
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4.5 What solutions would you offer to the CEO to help solve the problem
identified in 4.4 Provide three solutions.
6
30
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QUESTION 5
BALANCE SHEET OF ZABS LIMITED ON 29 FEBRUARY 2008
5.1 NOTES R
ASSETS
Non-current Assets
3
CURRENT ASSETS
4
5
Cash and cash equivalents 6 200
TOTAL ASSETS
EQUITY AND LIABILITIES
Capital and Reserves
7
8
9
Non-current Liabilities
Current Liabilities
10
TOTAL EQUITY AND LIABILITIES 30
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5.2.1 TANGIBLE
ASSETS
Land and
Buildings Vehicles Equipment TOTAL
Carrying value 420 000 44 100
Cost 420 000 101 000 73 500 594 000
Accumulated depreciation (29 400)
Movements
Carrying value 450 000
Cost 450 000 131 000 73 500 654 500
Accumulated depreciation (33 650) (33 810) (67 460) 20
5.2.2 TRADE AND OTHER RECEIVABLES
Net trade debtors
Trade debtors 38 400
Provision for bad debts
9
5.2.3 RETAINED INCOME
Balance
Net profit after tax 70 696
Ordinary share dividends
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Balance 10
5.2.4 TRADE AND OTHER PAYABLES
Trade creditors 46 000
15
5.3 What aspects need to be considered when deciding whether to raise more
finance through increasing loans or the issuing of more shares?
6
90
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QUESTION 6
6.1 Briefly explain why a company has to have Limited or Ltd in its name
2
6.2 ACCOUNT DR ACCOUNT CR A O L AMOUNT
Eg. Directors Fees Bank - - 0 150 000
1. 32 400
2. 143 550
3. 24 000
4.
4.
5. 154 356
6.
27
6.3.1 How many shares will the company issue?
3
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6.3.2 What is the minimum number of shares Gary will have to buy to keep
control of the company?
3
35
TOTAL: 300 MARKS