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APPLIED ACCOUNTING (Second Paper) NQF LEVEL 4

SUPPLEMENTARY EXAMINATION 2010

(3011004)

3 March (X-Paper) 09:00 – 12:00

This question paper consists of 24 pages, a 3-page answer sheet and 1 annexure.

NATIONAL CERTIFICATE (VOCATIONAL)

(3011004) -2- NC200(E)(M3)V


TIME: 3 HOURS

MARKS: 200

________________________________________________________________________ INSTRUCTIONS AND INFORMATION. 1. 2. 3. 4. 5. 6.

Answer ALL the questions. Read ALL the questions carefully. Number the answers according to the numbering system used in this question paper. Answer SECTION A on the ANSWER SHEET. Use appropriate accounting software for SECTION B. Write neatly and legibly.

QUESTIONS TOPICS MARKS RECOMMENDED

TIME GUIDE

SECTION A

1 Short theoretical questions 30 30 minutes

2 VAT 30 30 minutes

SECTION B

3 Practical on an accounting software

140 2 hours

TOTAL 200 3 hours

(3011004) -3- NC200(E)(M3)V


SECTION A QUESTION 1 1.1 Various options are given as possible answers to the following questions.

Choose the correct answer and write only the letter (A – D) next to the question number (1.1.1 – 1.1.15) on the attached ANSWER SHEET.

1.1.1 In a computerised system, cash sales are captured on a …

A

B C D

credit note. debit note. supplier invoice. tax invoice.

(1)

1.1.2 The term entry type is used in accounting software which is the

same as a … in manual accounting.

A

B C D

date journal reference document number

(1)

1.1.3 The take-on balances for individual customers are recorded in the

… journal.

A

B C D

customers general suppliers inventory

(1)

1.1.4 Early payment terms can be calculated … A

B C D

from date of invoice. any day or period. from the last day or period. Both A and C

(1)

1.1.5 Another word for trading stock is … A

B C D

merchandise. inventory. goods. All the above-mentioned

(1)

(3011004) -4- NC200(E)(M3)V


1.1.6 When creating a supplier on accounting software, which of the

following is NOT part of the initial setup of the supplier?

A

B C D

Postal address Contact person Amount due Contact details

(1)

1.1.7 When customers return goods to the business, the following

document is generated:

A

B C D

Credit note Return and debit note Supplier invoice Tax invoice

(1)

1.1.8 The … is the source document for the Petty Cash Journal. A

B C D

cheque counterfoil receipt original tax invoice petty cash voucher

(1)

1.1.9 The services rendered, at a fee, by the bank on your bank account,

are known as …

A

B C D

credits. bank charges. debits. direct deposits.

(1)

1.1.10 Depreciation in accounting software is calculated … A

B C D

weekly. fortnightly. monthly. yearly.

(1)

1.1.11 An amount of R450,00 for fuel was incorrectly posted to Vehicle

Expenses. The entry in the General Journal to correct the error would be …

A

B C D

debit Fuel and credit Vehicle Expenses. debit Bank and credit Vehicle Expenses. debit Vehicle Expenses and credit Fuel. debit Fuel and credit Bank.

(1)

(3011004) -5- NC200(E)(M3)V


1.1.12 Tembi Khumalo paid her account of R1 750.00 early, which entitled

her to a 15% early payment discount. What is the amount that Tembi paid after the discount was taken into account?

A

B C D

R262,50 R1 487,50 R1 735,00 R1 521,74

(1)

1.1.13 The source document used to generate a supplier invoice is a/an

…

A

B C D

duplicate tax invoice. cheque counterfoil. duplicate receipt. original tax invoice.

(1)

1.1.14 Which entry type is linked to tax invoices? A

B C D

Customers' Journal Suppliers' Journal Customers' Allowance Journal Suppliers' Allowance Journal

(1)

1.1.15 A Customer Control Account is classified as a/an … A

B C D

accounts payable. non-current asset. financial asset. accounts receivable.

(1)

1.2 Choose a word(s) from COLUMN B, which is a printout generated on a

computerised accounting software, that matches a word(s) in COLUMN A. Write only the letter (A – E) next to the question number (1.2.1 – 1.2.5) on the attached ANSWER SHEET.

COLUMN A COLUMN B

1.2.1 1.2.2 1.2.3 1.2.4 1.2.5

VAT Suppliers General Ledger Inventory Customer

A

B

C

D

E

remittance tax report statement Trial Balance quantities

(5)

(3011004) -6- NC200(E)(M3)V


1.3. Indicate whether the following statements are TRUE or FALSE. Write only

'true' or 'false' next to the question number (1.3.1 –1.3.10) on the attached ANSWER SHEET.

1.3.1 Take-on balances are posted on the last day of the previous

financial year.

(1) 1.3.2 When a customer makes an early payment, the discount given is

known as trade discount.

(1) 1.3.3 Back-ups need to be done regularly. (1) 1.3.4 Take-on balances for nominal accounts are recorded in the

General Journal.

(1) 1.3.5 The Bank Statement is automatically reconciled by the accounting

software.

(1) 1.3.6 When printing the Income Statement and Balance Sheet, it is

essential that all batches and journals are first updated.

(1) 1.3.7 Updating of journals and batches are done daily. (1) 1.3.8 Interest on current account is an example of a Credit (+) on the

Bank Statement.

(1) 1.3.9 If the cost price of an inventory item is R760,00 and the mark-up on

cost price is 250%, the selling price will be R1 900,00.

(1) 1.3.10 An age analysis gives only the total amount outstanding on

suppliers and customers in the current period.

(1) [30]

(3011004) -7- NC200(E)(M3)V


QUESTION 2 2.1 Choose the correct word(s) from those given in brackets. Write only the

word(s) next to the question number (2.1.1 – 2.1.8) on the attached ANSWER SHEET.

2.1.1 VAT is known as a/an (direct/indirect) tax in South Africa. (1) 2.1.2 VAT is calculated at 14 (rand/per cent). (1) 2.1.3 (Output/Input) VAT is tax on goods and services received. (1) 2.1.4 The current VAT system being used in South Africa is

(payment/invoiced) based.

(1) 2.1.5 Goods taxed at 0% is referred to as (exempt/zero-rated) supplies. (1) 2.1.6 (Output/Input) VAT is tax charged on goods sold and services

provided to others.

(1) 2.1.7 (Zero-rated/Exempt) supplies are goods that attract no VAT. (1) 2.1.8 A VAT (voucher/vendor) is a business which has to register for

VAT payments.

(1) 2.2 Steel Partners is registered for VAT. At the end of April 2009 the following

information and transactions were summarised and handed to you. Complete the VAT return on the attached ANSWER SHEET (VAT 201 FORM).

Registered name: Steel Partners VAT No: 7550814141 Address: 6 Maclean Street STUTTERHEIM 4930 Telephone: 043 686 7312 Nearest SARS office: East London Submission date: 12 May 2009 Tax period: April 2009 Authorised person: J Warmberg (Financial Manager) Date form completed: 6 May 2009

(3011004) -8- NC200(E)(M3)V


Tax Report as at 31 January 2009

OUTPUT TAX INPUT TAX NET TAX Tax Inclusive Tax Inclusive Tax Inclusive

Standard – Other 13 328 108 528 7 700 62 700 5628 45 828 Standard – Capital goods

1 568 12 768 1 568 12 768

Bad debts 588 4 788 588 4 788

Zero-rated 1 200 1 200

(22) [30]

TOTAL SECTION A: 60

(3011004) -9- NC200(E)(M3)V


SECTION B

QUESTION 1

Carry out the instructions below and answer the questions that follow.

1. Open the account system of Outdoor Essentials (OUTDOOR), which has already been loaded on your computer.

2. Select SETUP.

3. Select COMPANY PARAMETERS.

4. Select COMPANY DETAILS, select the Company name section and click on 'Educational Number'.

5. Press CTRL+SHIFT+T and insert your examination number in the block that appears.

As from the 1 March 2009 Outdoor Essentials decided to use accounting software to keep accounting records. Prior to the 1 March 2009 the manual system was used to record the transactions in the business.

The following setup has already been created in the books of Outdoor Essentials.

(a) ENTRY TYPES:

Number Entry Type

01 Cash Receipts Journal

02 Cash Payments Journal

03 General Journal

04 Customers' Journal

05 Suppliers' Journal

06 Customers' Allowances Journal

07 Suppliers' Allowances Journal

08 Petty Cash Receipts Journal

09 Petty Cash Payments Journal

10 Bad Debts Journal

11 Interest Charged Journal

12 Stock Journal

(3011004) -10- NC200(E)(M3)V


(b) PERIODS: Outdoor Essentials financial year starts on 1 March 2009 and ends on

28 February 2010.

(c) VALUE ADDED TAX (VAT): VAT will be captured according to the invoice basis. Refer to the attached

ANNEXURE 1 concerning the admissible deductions with regard to INPUT TAX.

(d) CUSTOMERS:

CUSTOMER CODE

CUSTOMER AMOUNT DUE AS AT 28 FEBRUARY 2009

C01 Garden Etc R9 350,00

C02 Builders Paradise R6 850,00

Z99 Cash (e) SUPPLIERS:

SUPPLIERS CODE

SUPPLIERS AMOUNT DUE AS AT 28 FEBRUARY 2009

S01 Steel Craft R2 320,00

S02 Pure Steel R5 600,00

S03 Braai @ Large R9 890,00 (f) INVENTORY:

INVENTORY CODE

INVENTORY ITEM QUANTITY ON HAND 28 FEBRUARY 2009

BG01 Standard Grid 30

BG02 Maxi Grid 25

BG03 Snoek Grid 31

BA04 Barbeque Tongs 15

BA05 Long Fork 28

BA06 Grid Brush 22

(3011004) -11- NC200(E)(M3)V


(g) TERM CODES: • 7% discount within 30 days

• 12% discount within 30 days

(h) TAKE-ON BALANCES: Take on balances have already been processed. Required: 1.1 Use the following information that appears in the books of Outdoor Essentials

to complete the following for March 2009:

1.1.1 Print all the documents after processing. When printing journals,

select 'print batch' with contras. Update the documents and journals.

1.1.2 Make a printout of the General Ledger Master Listing. 1.1.3 Use the printout of the General Ledger Master Listing to refer to

accounts which are in use. If there is NO account to enter a transaction into, such an account must be created. Keep the structure as set out in the General Ledger Master Listing.

(3011004) -12- NC200(E)(M3)V


1.2 Use the source documents and information provided below to record

appropriate journals and generate documents in the books of Outdoor Essentials for March 2009.

1.2.1 CREDIT PURCHASES OF INVENTORY

Quantity Description Price Amount

R C R C

15 Grid Brush 10 60 159 00

10 Snoek Grid 43 95 439 50

11 Long Fork 15 30 168 30

Subtotal 766 80

Terms: 10% discount 76 68

10% trade discount 690 12

7% discount within 30 days 14% VAT 96 62

TOTAL 786 74

Braai @ Large

47 Currie Street

Quigney

5211 03/03/09

Tax Invoice: BL213

To: Outdoor Essentials

15 Oakleigh Road

Beacon Bay

5205

(3011004) -13- NC200(E)(M3)V


• Create The Braai Shop as a new supplier using the code S04. The

supplier's details are as follows:

• Contact person is Jeff

• Tel: 043 726 8022

• Fax: 043 756 9018

• Cell No: 083 798 6931

• e-mail: [email protected]

11/03/08

Tax Invoice The Braai Shop


R C R C

8 Maxi Grid 37 60 300 80

14 Standard Grid 30 00 420 00

Subtotal 720 80

Terms: 0% discount

7% discount within 30 days 720 80

14% VAT 100 91

Thank you for your support TOTAL 821 71

15 Frame Park Chislelhurst EAST LONDON 5247

To: Outdoor Living

TIV23 09/03/09

(3011004) -14- NC200(E)(M3)V


• Use code BG07 to create a new stock item for the Toaster Grids. Outdoor

Essentials work on a mark-up of 50%.

Pure SteelPure SteelPure SteelPure Steel Tax Invoice

Date: 20 March 2009 No: INV90 To: Outdoor Living

Qty Description Price Amount

R C R C

10 Maxi Grids 39 95 399 50

20 Toaster Grid 35 00 700 00

Subtotal 1 099 50


5% trade discount 1 044 53

12% discount within 30 days 14% VAT 146 23

TOTAL 1 190 76

(3011004) -15- NC200(E)(M3)V


1.2.2 CREDIT RETURNS OF INVENTORY BY OUTDOOR

ESSENTIALS

Outdoor Essentials have returned the following inventory items: The Braai Shop 17 March 2009: 2 x Standard Grids Reason: Broken

Pure Steel 25 March 2009: 1 x Maxi Grids Reason: Bent handles

Steel Craft

Date: 27/03/09 To: Outdoor Living


R C R C

9 Barbeque Tongs 17 25 155 25

8 Long Fork 16 10 128 80

12 Grid Brush 11 40 136 80

Subtotal 420 85


0% cash discount 420 85

7% within 30 days 14% VAT 58 92

TOTAL 479 77

Tax Invoice: X004

(3011004) -16- NC200(E)(M3)V


1.2.3 CREDIT SALES

Date Customer Item purchased Term

04/03/09 Garden Etc. 20 x Standard Grid 14 x Maxi Grid 19 x Snoek Grid

7% discount within 30 days

11/03/09 Cash Sale: K Dobson 2 x Barbeque Tongs 1 x Grid Brush

3% cash discount

17/03/09 Builders Paradise 4 x Toaster Grid 2 x Snoek Grid

12% discount within 30 days

22/03/09 Cash Sale: Stones Sports Club

11 x Long Fork 5% cash discount

30/03/09 Jeff's Braai 12 x Maxi Grid 10 x Barbeque Tongs

7 % discount within 30 days

31/03/09 Cash Sale: P Pooven 1 x Standard Grid 1 x Long Fork 1 x Grid Brush

4% cash discount

• Jeff's Braai is a new customer (C03). Create Jeff's as a customer with the following information: 25 Hill Street Vincent Gardens EAST LONDON 5247 Tel: 043 726 9038 Fax: (043) 726 8090 Cellphone number: 082 382 8773 Contact person: Jill E-mail: [email protected] Credit limit: R5 000,00

1.2.4 CREDIT RETUNS OF INVENTORY TO OUTDOOR ESSENTIALS

The following inventory items were returned to Outdoor Essentials: Garden Etc. 6 March 2009: 4 x Standard Grids Reason: Broken Clips 2 x Snoek Grid Reason: Dented Builders Paradise 18 March 2009: 1 x Toaster Grid Reason: Tarnished

(3011004) -17- NC200(E)(M3)V


1.2.5 CASH REGISTER ROLLS 1.2.6 CASH RECEIPTS

OUTDOOR ESSENTIALS RECEIPT 140

Received from: Garden Etc. 02/03/09

Amount: Nine thousand three hundred rand only

9 300

00

In payment for: Settlement of account as at 01/03/09

With thanks: B LyonsB LyonsB LyonsB Lyons


Received from: Builders Paradise 09/03/09

Amount: One thousand eight hundred rand only

1 800

00

In payment for: Payment of account


11/03/09 CRR 17

R73,76

22/03/09 CRR 18

R273,41

31/03/09 CRR 19

R97,50

(3011004) -18- NC200(E)(M3)V


*Create account for Commission Received


Received from: ABSA Bank 15/03/09

Amount: Five hundred rand only

500

00

In payment for: Interest received



Received from: Builders Paradise 20/03/09

Amount: Two hundred and ninety rand twenty two cents only

290

22

In payment for: Settlement of inventory sold on 17/03/09



Received from: Living Large 27/03/09

Amount: Two thousand five hand rand only

2 500

00

In payment for: Commission Received


(3011004) -19- NC200(E)(M3)V


1.2.7 CASH DEPOSIT SLIPS

ABSA

Deposit Slip DEP15

Date: 2 March 2009 Coins Credit: Outdoor Living Notes Account number: 4092748957 TOTAL CASH Cheques Drawer Bank Branch Garden Etc. Nedbank 0043945 9 300,00

Total Deposit 9 300,00

Paid in by: B LyonsB LyonsB LyonsB Lyons

ABSA

Deposit Slip DEP16

Date: 15 March 2009 Coins 3,76 Credit: Outdoor Living Notes 1 870,00 Account number: 4092748957 TOTAL CASH 1 873,76 Cheques

Drawer Bank Branch ABSA ABSA Pretoria 500,00 Total Deposit 2 373,76


(3011004) -20- NC200(E)(M3)V


1.2.8 CASH PAYMENTS

Date: Payee: For: Amount:

241 2 March 2009 Steel Craft Settlement of account as at 01/03/09 R2 200,00


242 5 March 2009 BC Municipality Rates and taxes R11 500,00

ABSA

Deposit Slip DEP17

Date: 22 March 2009 Coins 3,63 Credit: Outdoor Living Notes 560,00 Account number: 4092748957 TOTAL CASH 563,63

Cheques Drawer Bank Branch Total Deposit 563,63


ABSA

Deposit Slip DEP18

Date: 31 March 2009 Coins 7,50 Credit: Outdoor Living Notes 90,00 Account number: 4092748957 TOTAL CASH 97,50 Cheques Drawer Bank Branch

Living Large FNB Oxford 2 500,00 Total Deposit 2 597,50


(3011004) -21- NC200(E)(M3)V


*Create account for repairs


247 26 March 2009 Pure Steel Payment on account R2 000,00


245 20 March 2009 Outsurance Insurance R5 980,00


246 25 March 2009 T Naidoo Salary R17 500,00


248 30 March 2009 Outsurance Owners' Insurance Premium R1 459,00


243 15 March 2009 ITec Photo-copying Machine R9 320,00


244 17 March 2009 PG Glass Replaced broken window R320,00

(3011004) -22- NC200(E)(M3)V


1.2.9 PETTY CASH *Create account for Refreshments

OUTDOOR ESSENTIALSOUTDOOR ESSENTIALSOUTDOOR ESSENTIALSOUTDOOR ESSENTIALS PETTY CASH VOUCHER

08 08/03/09

For: John – moved a cupboard (Casual labour) Amount: R20,00

Approved by: B LyonsB LyonsB LyonsB Lyons


09 15/03/09

For: Speedbag from the Post Office Amount: R43,20



10 25/03/09

For: Highlighters Amount: R16,50



11 30/03/09

For: Tea and coffee Amount: R51,00


(3011004) -23- NC200(E)(M3)V


1.2.10 BANK STATEMENT • Create an account for Bank Charges and record all bank charges.

• The debit order on the 31/03/09 is for Pam Golding for rental of premises. Create an account for Rent Expense.

Page 1 of 1

ABSA Date: 31 March 2009

BANK STATEMENTBANK STATEMENTBANK STATEMENTBANK STATEMENT

Cheque account: 4092748957 Statement no: 18

Date Detail of transaction Debit (-) Credit (+) Balance 01/03/09 Balance brought forward 89 000,00 02/03/09 Deposit DEP15 9 300,00 98 300,00 06/03/09 Cheque 241 2 200,00 96 100,00 15/03/09 Cheque 243 9 320,00 86 780,00 15/03/09 Deposit DEP16 2 373,76 89 153,76 20/03/09 Service fees 350,00 88 803,76

22/03/09 Deposit DEP17 563,63 89 367,39 27/03/09 Cheque 245 5 980,00 83 387,39 30/03/09 Tax levy 17,50 83 369,89 31/03/09 D/O X45 12 850,00 70 519,89 31/03/09 Cheque 244 320,00 70 199,89

To: Outdoor Essentials 15 Oakleigh Road Beacon Bay EAST LONDON 5205

431 Oxford Street EAST LONDON 5201

Tel: 043 748 1365 Fax: 043 748 9618

(3011004) -24- NC200(E)(M3)V


1.2.11 JOURNAL VOUCHER

OUTDOOR ESSENTIALSOUTDOOR ESSENTIALSOUTDOOR ESSENTIALSOUTDOOR ESSENTIALS

Journal Voucher: 5

Date: 31 March 2009

An amount of R250,00 for Postage was incorrectly posted to Stationery. Correct the error. Use Note 5 as the reference.

NOTE: The printouts to be handed in the following order:

• Suppliers' invoice

• Return and debit notes

• Tax invoices

• Credit notes

• Cash Receipts Journal (After the bank reconciliation)

• Cash Payments Journal (After the bank reconciliation)

• Bank Reconciliation

• Petty Cash Journal

• Detailed ledger for insurance

• Customers age analysis for the month of March 2009 showing full details

• Suppliers listing ONLY for The Braai Shop (show details)

• Inventory valuation report

TOTAL SECTION B:

GRAND TOTAL: 140

200

(3011004) -25- NC200(E)(M3)V


ANNEXURE 1 Admissible deductions with regard to input tax

Is VAT charged? Input VAT deductible

YES NO YES NO

Bank Charges Tax levy Service fee

X

X

X

Discount Allowed X X

Discount Received X X

Discount Received X X

Equipment X X

Furniture X X

Insurance X X

Interest Expense X

Interest on Current Account X

Interest Received X

Postage X X

Rates and Taxes X X

Refreshments X X

Rent Expense X X

Repairs X X

Salaries and Wages X

Stationery X X

Vehicles X X

(3011004) -26- NC200(E)(M3)V


ANSWER SHEET EXAMINATION NUMBER: SECTION A QUESTION 1.1 1.1.1 ______________________ 1.1.2 ______________________ 1.1.3 ______________________ 1.1.4 ______________________ 1.1.5 ______________________ 1.1.6 ______________________ 1.1.7 ______________________ 1.1.8 ______________________ 1.1.9 ______________________ 1.1.10 ______________________

1.1.11 ______________________

1.1.12 ______________________

1.1.13 ______________________

1.1.14 ______________________

1.1.15 ______________________

(15) QUESTION 1.2 1.2.1 _______________________ 1.2.2 _______________________

1.2.3 _______________________

1.2.4 _______________________

1.2.5 _______________________ (5)

(3011004) -27- NC200(E)(M3)V


ANSWER SHEET EXAMINATION NUMBER: QUESTION 1.3 1.3.1 _______________________ 1.3.2 _______________________ 1.3.3 _______________________ 1.3.4 _______________________ 1.3.5 ______________________

1.3.6 ______________________

1.3.7 ______________________

1.3.8 ______________________

1.3.9 ______________________

1.3.10 ______________________

(10) [30]

QUESTION 2 2.1.1 ______________________ 2.1.2 ______________________ 2.1.3 ______________________ 2.1.4 ______________________ 2.1.5 ______________________ 2.1.6 ______________________ 2.1.7 ______________________ 2.1.8 ______________________

(8)

(3011004) -28- NC200(E)(M3)V


ANSWER SHEET EXAMINATION NUMBER: 2.2

(22) [30]

TOTAL SECTION A: 60

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