accounting gr 12 - metro east€¦ · web viewchoose the correct word from those listed in...

Metro East Education District

SCHOOL

LEARNERSURNAME NAME

CLASS 12 ....

QUESTION TOTALper Question MARKS MOD.

1 402 403 754 655 506 30

TOTAL 300

This ANSWER BOOK consists of 18 pages.

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ACCOUNTING Gr 12JUNE 2016

SPECIAL ANSWER BOOK

Accounting ANSWER BOOK 2 MEED June 2016

QUESTION 1

1.1.1 Calculate the correct bank balance on 31 May 2016. Show all workings.

6

1.1.2 Bank Reconciliation Statement on 31 May 2016

10

1.1.3 State the double entries, with amounts, in the general ledger for the transaction with T. Masha

DR CR

6

Make TWO proposals to the business to eliminate receiving dishonoured cheques from debtors in future.

4



1.1.4 The bank has no record of the deposit of R12 400 being made and the money cannot be found. Provide TWO measures to be introduced to prevent a loss of this nature in the future.

4

1.2 CREDITORS’ RECONCILIATION

NO

CREDITORS CONTROL CREDITORS LIST

Debit Credit Debit Credit

1.2.1

1.2.2

1.2.3

1.2.4

1.2.5

1.2.6

1.2.7

TOTAL MARKS

40


10


QUESTION 2

GENERAL LEDGER OF ASTRO LTD2.1.1 ASSET DISPOSAL

2015Dec 31

2015Dec 31

9

2.1.2 ACCUMULATED DEPRECIATION ON VEHICLES2015Apr 1 Balance b/

d

11



2.2 FIXED ASSET NOTE ON 31 MARCH 2016

VEHICLES EQUIPMENT

Carrying value – 1 April 2015

Cost

Accumulated depreciation (100 000) (70 000)

Movements

Additions at cost

Disposals at carrying value

Depreciation

16

Carrying value – 31 March 2016

Cost

Accumulated depreciation

2.3 Astro Ltd has no insurance on the vehicles. The CEO believes that the money he saves on insurance premiums can be used to buy more stock and make more profit. Explain why you think that having no insurance on vehicles is not good business practice. Mention TWO points.

4

TOTAL MARKS

40



QUESTION 33.1 Overbay Ltd

Income Statement for the year ended 28 February 2016

Sales (3 800 640Cost of Sales (2 375 400Gross ProfitOther IncomeCommission income (26 000

Gross IncomeOperating ExpensesAudit fees 21 000Bank charges 6 210Packing material

Operating profit

47

Interest IncomeProfit before interest expense

Net profit after Tax



3.2.1 TRADE AND OTHER RECEIVABLES

11

3.2.2 TRADE AND OTHER PAYABLES

11

3.3.1 Calculate the profit margin of the business, BEFORE any adjustments.

4

3.3.2 Give ONE possible reason why the 25% profit margin made on the goods returned by M. Mgoki, differs from your answer in 3.3.1 above.

2

TOTAL MARKS

75



QUESTION 4

4.1.1 Calculate the Net profit before tax for the year ended 30 June 2015

3

4.1.2 Calculate the Income tax for the year ended 30 June 2015

3

4.2.1 APPROPRIATION2015Jun 30

2015Jun 30

11



4.2.2 RETAINED INCOME

2014Jul 1 Balance b/

d 670 000

8

4.3 ORDINARY SHARE CAPITAL

AUTHORISED

ISSUED

300 000 ordinary shares in issue on 1 July 2014

8



4.4 MOYA LTDBALANCE SHEET AS AT 30 JUNIE 2015EQUITY AND LIABILITIESORDINARY SHAREHOLDERS’ EQUITY

Ordinary Share Capital

NON-CURRENT LIABILITIES

CURRENT LIABILITIES

20TOTAL EQUITY AND LIABILITIES

4.5 Calculate the Net Asset Value (NAV) per share on 30 June 2015.

3



4.6On 30 June 2015 the price of Moya Ltd shares on the JSE was R5,20. Should the existing shareholders be satisfied with the aspects below? Explain and quote figures from the question to support your answers.

Market price:

Price at which new shares were issued on 1 January 2015:

9

Price paid for the repurchase of shares on 31 May 2015:

TOTAL MARKS

65



QUESTION 5

5.1 CASH GENERATED FROM OPERATIONS

10

Depreciation 92 840Interest Expense 52 000Operating profit before changes in working capitalCash effects of changes in working capital

Change in inventoriesChange in receivables

Change in payables

5.2 PRINS LTDCASH FLOW STATEMENT FOR YEAR ENDED 28 FEBRUARY 2016

CASH FLOWS FROM FINANCING ACTIVITIES

8



5.3.1 Calculate the current ratio.

3

5.3.2 Calculate the debt-equity ratio.

3

5.3.3 Calculate the return on average shareholders’ equity.

5



5.4 The directors are not satisfied with the liquidity position. Comment on the liquidity position. Quote and explain THREE relevant financial indicators (with figures) to support their view.

6

5.5 The directors decided to pay back a large portion of the long term loans. Explain why this was not a wise business decision. Quote and explain TWO financial indicators (with figures) in your answer.

8



5.6.1 Choose the correct word from those listed in brackets. Write down the word and briefly explain your choice.

Prins Ltd received a/an (unqualified/qualified/adverse/disclaimer) auditor's report.

Briefly explain your choice

3

5.6.2 Explain the consequences of this auditor's report for the chief executive officer (CEO) and/or the company. State TWO points.

4

TOTAL MARKS

50



QUESTION 6

6.1 VAT CONCEPTS

6.1.1

36.1.26.1.3

6.2 VAT CALCULATIONSCalculate the correct amount of VAT the business has to pay. Show all workings.

6



6.3 INVENTORY VALUATION

6.3.1 (a) Calculate the closing stock (rand value) of the guitars on 30 April 2016.

5

(b) Calculate the cost of sales (rand value) of the guitars on 30 April 2016.

4

(c) Calculate the average stock holding period (in days) of the guitars on 30 April 2016.

4



6.3.2 Calculate the closing stock (rand value) of the CDs on 30 April 2016.

7

6.3.3 Explain why the business uses the specific identification method for guitars, but not for the CDs.

1

TOTAL MARKS

30

TOTAL: 300

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accounting gr 12 - metro east€¦ · web viewchoose the correct word from those listed in...

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