Accounting All Papers and Memorandums - zp124322

Junior Tukkies 2017 ACCOUNTING - COMPANIES
CASH FLOW STATEMENT

ANALYSIS AND
INTERPRETATION
QUESTION PAPER
ANSWER BOOK
Page 1 of 25
Page 2 of 25
Page 3 of 25
Page 4 of 25
Page 5 of 25
Page 6 of 25
Page 7 of 25
Page 8 of 25
Page 9 of 25
Page 10 of 25
Page 11 of 25
Page 12 of 25
QUESTION 4 CASH FLOW STATEMENT (60 marks;36 minutes)
Ema Traders Limited trades with stationery. Their mark-up is 75% on cost price. Ema
Traders Limited year-end is on 30 APRIL 2015. The company is authorised to issue an
unlimited number ordinary shares.
REQUIRED :
4.1 Record the correct GAAP principle next to the given scenario (5)
4.1.1 Financial statements are prepared as if the business will be trading in (1)
the foreseeable future.
4.1.2 Consumable stores, stationery and postage can be posted to the (1)
Sundry expenses account.
4.1.3 If a business purchased Land and Buildings 5 years ago at R1 950 000
and it was currently re-valued at R2 380 000, the Land and Buildings will (1)
still be recorded as R1 950 000 in the books of the business.
4.1.4 The owner inherited R50 000 from his grandfather and he did not record
the inheritance in the books of the business. (1)
4.1.5 At the end of the financial year the telephone account was still
outstanding. This transaction will be recorded in the telephone account
in the General Ledger before the account is closed off to the Profit and
Loss account. (1)
4.2 Use the given information to complete the following:
4.2.1 Record the missing figures/ amounts in NOTE TO THE FIXED ASSETS. (6)
4.2.2 Cash flow statement for the year ended 30 April 2015 (18)
4.2.3 Cash generated from operations (18)
4.2.4 Cash and cash equivalents (4)
4.2.5 Dividends paid (5)
4.2.6 Taxation paid (4)
Page 13 of 25
INFORMATION
1. Extracts from the Income Statement for the year ended 30 April 2015
30 April 2015
Depreciation: Vehicles 15 520
Depreciation: Equipment ?
Interest expense (13% p.a.) 58 500
Net profit before taxation 410 000
Income tax (30%) ?
Net Profit after tax 287 000
2. Extracts from the Balance Sheet and notes to the Financial Statements.
30 April 2015 30 April 2014

Ordinary share Capital (see note ) 1 825 000 1 500 000
Retained income 19 500 126 500
Land and Buildings 1 950 000 1 800 000
Vehicles at cost price 110 000 140 000
Equipment at cost price 20 500 18 500
Accumulated depreciation on vehicles 57 520 50 400
Accumulated depreciation on equipment 7 500 5 550
Trading stock 146 200 129 280
Debtors Control 65 500 56 800
Deposit: Water and electricity 1 550 1 750
Fixed deposit LKL Bank 200 000 60 000
SARS (Income tax) 69 500(Dr) 31 480(Dr)
Bank 4 510(Dr) 17 100(Cr)
Petty cash 600 600
Cash float 1 000 800
Shareholders for dividends 212 500 150 000
Loan: PASS Bank (9% p.a.) 425 000 350 000
Creditors control 34 840 39 660
Page 14 of 25
Note 7: Ordinary Share Capital l (30 April 2015) R
750 000 Issued at issue price of R2 per share 1 500 000
150 000 Issued during the year at an issue price of R3 per share 450 000
50 000 Repurchased at an average price of R2,50 per share. (125 000)
850 000 In issue at the end of the year 30 April 2015 1 825 000
ADDITIONAL INFORMATION:
1. No(zero) equipment was sold during the year.
2. Vehicles was sold at carrying value, R21 600 cash.
3. Authorised share capital is 1 200 000 ordinary shares
4. 750 000 ordinary shares were issued by 30 April 2014 at R2 per share.
5. Issued an additional 150 000 ordinary shares during the year at R3 per share.
6. 50 000 ordinary shares were repurchased at market value of R3,50. The average price
of shares was R2,50 per share at the time of the buy back.
7. On 28 February 2015 an interim dividend of R144 000 was declared and paid.
8. A final dividend of 25 cents per share was declared on 30 April 2015.
60
Page 15 of 25
QUESTION 4 CASH FLOW STATEMENT (60 marks;36 minutes)
4.1 Record the correct GAAP principle next to the given scenario.
4.1.1
4.1.2
4.1.3
4.1.4
4.1.5 5
4.2.1 Fixed assets Note to the Balance Sheet on 30 April 2015:
Land and Vehicles Equipment

Buildings
Cost price 1 800 000 140 000 18 500
Accumulated Depreciation - (50 400) (5 550)
Carrying value at the beginning 1 800 000 89 600 12 950
Movements:
Additional at cost price ? - ?
Disposal at carrying value - ? -
Depreciation - ? ?
Carrying value at the end 1 950 000 52 480 13 000
Cost price 1 950 000 110 000 20 500
Accumulated depreciation - (57 520) (7 500)
Page 16 of 25
4.2.2 CASH FLOW STATEMENT FOR THE YEAR ENDED 30 APRIL 2015
Note R
CASH FLOW FROM OPERATING ACTIVITIES
Cash generated from operations 1
Interest paid (58 500)
Dividends paid 3
Taxation paid 4
CASH FROM INVESTING ACTIVITIES
Purchases of fixed assets
Proceeds from sale of fixed assets
Investments Increase
CASH FROME FINANCING ACTIVITIES
Proceeds from shares issued
Repurchases of shares
Increase of loan
Net change in cash and cash equivalents 2
Cash and cash equivalents Cash at the beginning of

year 2
Cash and cash equivalents at end of year 2
18
Page 17 of 25
Notes to the Cash flow Statement
1 Cash generated from operations
Net profit before tax
Depreciation
Interest expense
Cash generated from operations before changes in net working capital
Changes in net working capital
18
2 Cash and cash equivalents
Net change 2014 2015
Page 18 of 25
3 Dividends Paid
4 Taxation paid
Page 19 of 25
QUESTION 2 ANALYSIS AND INTERPRETATION (45 marks; 27 minutes)

The following information appeared in the books of Nature Limited. They buy and sell
chocolate bars at a mark–up of 50% at cost price. The company was registered with an
authorised share capital of 500 000 ordinary shares. During the financial year additional
25 000 ordinary shares were issued at a constant issue price of R2 per share.
INFORMATION
1 An extract from the Balance Sheets
31 MAY 2015 31 MAY 2014

Land and Buildings 1 600 000 1 550 000
Equipment at cost price 165 000 145 000
Accumulated depreciation on equipment 89 000 58 000
Trading stock 102 500 92 000
Trade and other receivables ( Debtors) 19 500 17 550
Fixed Deposit: JJ Bank (12%p.a.) 100 000 150 000
Bank 1 650(cr) 450 (cr)
Cash float 1 000 1 000
Ordinary Share Capital 800 000 750 000
Retained Income 16 500 23 450
Current Liabilities 25 000 16 800
Loan: KL Bank (7%p.a) 230 000 125 000
2. An extract from the Income Statement for the year ended 31 May 2015
Sales (15% op credit) 668 000
Cost of Sales 460 000
Operating expenses 200 400
Net profit before taxation 265 400
Income tax 79 620
Net profit for the year/ Net profit after taxation 185 780
Page 20 of 25
3 An extract of Financial indicators

31 MAY 2015 31 MAY 2014
Percentage on operating expenses on sales ? 21%
Mark-up achieved ? 49%
Acid test ratio 0,82:1 1,12:1
Stock turnover rate 5 times 7 times
Debtors average collection period ? 54 days
Creditors average payment period 33 days 65 days
31 MAY 2015 31 MAY 2014

Debt equity ratio 0,28:1 0,16:1
Percentage return on shareholders’ equity ? 20%
Net Asset Value per share ? R4
Percentage return on capital employed 46% 24%
Earnings per share 46 cents 35 cents
Dividends per share 26 cents 12 cents
REQUIRED:
2.1 Calculate the following indicators for 2015.
2.1.1 Percentage operating expenses on sales. (4)
2.1.2 Debtors average collection period. (5)
2.1.3 Percentage return on average shareholders’ equity. (7)
Page 21 of 25
2.2 Use the above information to comment and to answer the questions.
2.2.1 Comment on the liquidity of the business by indicating THREE

indicators. Quote the names of the THREE financial indicators, (9)
discuss the trends and the implications thereof.
2.2.2 The business is considering to negotiate an additional loan of

R300 000. Do you think it is a good idea? Give TWO reasons for your (7)
answer by quoting TWO relevant indicators and their trends.
2.2.3 The business tries to maintain a mark-up of 50% on cost price.

 Calculate the relevant indicator.
 Did the business achieve the mark –up of 50% on cost price?
 Give TWO possible reasons if the mark–up was not achieved (6)
If you were a shareholder of the company, would you be satisfied with
2.2.4
the return on shareholders’ equity, earnings per share and dividends
per share over the past two years? Discuss the trend and the (7)
implications thereof.
QUESTION 2 ANALYSIS AND INTERPRETATION (45 marks; 27 minutes)
2.1 Calculate the following indicators for 2015

2.1.1 Percentage operating expenses on sales
Page 22 of 25
2.1.2 Debtors average collection period
2.1.3 Percentage return on shareholders’ equity
2.2 Use the above information to comment and to answer the questions.
2.2.1 Comment on the liquidity of the business by indicating THREE
indicators. Quote the names of the THREE financial indicators, discuss
the trends and the implications thereof. .
1
2.
Page 23 of 25
3.
2.2.2 The business is considering to negotiate an additional loan of R300 000.

Do you think it is a good idea? Give TWO reasons for your answer by
quoting TWO relevant indicators and their trends..
Page 24 of 25
2.2.3
The business tries to maintain a mark-up of 50% on cost price.
 Calculate the relevant indicator.
 Did the business achieve the mark –up of 50% on cost price?
 Give TWO possible reasons if the mark–up was not achieved
Calculation:
Yes / No
Reasons:
2.2.4 If you were a shareholder of the company, would you be satisfied

with the return shareholders equity, earnings per share and
dividends per share over the past two years? Discuss the trend
and the implications thereof.
Page 25 of 25
BUYING BACK OF SHARES
QUESTION PAPER
ANSWER BOOK
Page 1
QUESTION 1: BUY BACK OF SHARES (60 marks; 36 minutes)
1.2. COMPANY ACCOUNTS AND BUY BACK OF SHARES (55)
. Kalel Company Limited has been authorised to issue an unlimited number of ordinary
shares to prospective shareholders. On 1 March 2013 the company issued 2 000 000
ordinary shares at an issue price of 300 cents per share (R3). During the same financial
year March 2013 to February 2014, another 2 000 000 ordinary shares were issued at an
issue price of 600 cents per share.
REQUIRED
1.2.1 Complete Note 7 of the Financial Statements: Ordinary Share Capital. (11)
1.2.2 Complete Note 8 of the Financial Statements: Retained Income (14)
1.2.3 Complete SARS (INCOME TAX) LEDGER ACCOUNT and balance the account at the
end of the financial year.
(10)
1.2.4 Complete DIVIDENDS ON ORDINARY SHARES LEDGER ACCOUNT and close off
the account at the end of the financial year.
(6)
1.2.5 Show the calculation of the average price of the total issued shares on 1 October 2014. (3)
1.2.6 What was the total amount paid to the estate of the deceased shareholder? Show (5)
calculations.
1.2.7 Show the calculation of the final dividend per share on 28 February 2015. (4)
1.2.8 Give TWO possible reasons for the company’s decision to buy back the shares from
the deceased estate on 1 October 2014.
(2)
Page 2
INFORMATION
At the beginning of the new financial year, 1 March 2014, the following balances appeared in
the General Ledger of Kalel Company Limited:
Ordinary share Capital R18 000 000
Retained Income R1 800 000
SARS(income tax) (credit) R 500 000
Shareholders for dividends R640 000
EXTRACTS OF TRANSACTIONS DURING THE FINANCIAL YEAR:
1 March 2014 Kalel Company Limited offered more shares to prospective shareholders
at an issue price of 700 cents per share. All the shares were sold and
R7 000 000 were recorded in the Cash Receipts Journal.
31 March 2014 The amount owing on 1 March 2014 to SARS and to the Shareholders
were settled and recorded.
31 August 2014 The directors paid provisional tax of R420 000 and interim dividends of
8 cents per share. This was NOT APPLICABLE to the shares issued
on 1 March 2014 to shareholders.
1 October 2014 The directors decided to buy back 200 000 ordinary shares from an estate
of a deceased shareholder at a price of R2 more than the average price
and an internet payment was made to the estate of the deceased.
25 February 2015 Close to the end of the financial year the company paid the second
provisional tax payment of R460 000.
28 February 2015 After the completion of the audit, the following was determined:
1. The net profit for the year was R 2 800 000
2. Income tax was calculated at 30 % of net profit
3. A final dividend was declared at 22 cents per share. This is

applicable to all existing shareholders.
60
Page 3
1.2 COMPANY ACCOUNTS AND BUY BACK OF SHARES (55)
1.2.1 NOTES TO THE BALANCE SHEET
Note 7: Ordinary Share Capital
Issued:
11
1.2.2 NOTES TO THE BALANCE SHEET
Note 8: Retained income
14
Page 4
1.2.3 GENERAL LEDGER OF KALEL COMPANY LIMITED
Dr. SARS(INCOME TAX) Cr.
10
1.2.4 GENERAL LEDGER OF KALEL COMPANY LIMITED
Dr. DIVIDENDS ON ORDINARY SHARES Cr.
Page 5
ANSWER ALL THE FOLLOWING QUESTIONS
1.2.5 Show the calculation of the average price of the total issued shares on 1
October 2014
1.2.6 What was the total amount paid to the estate of the deceased shareholder?
Show calculations
1.2.7 Show the calculation of the final dividend per share on 28 February 2015.
1.2.8 Give TWO possible reasons for the company’s decision to buy back the shares
from the deceased estate on 1 October 2014.
60
Page 6
INCOME STATEMENT AND

BALANCE SHEET
QUESTION PAPER
ANSWER BOOK
Page 1 of 24
ADJUSTMENTS
1. Prepaid expense Always subtracted from the expense account.

Balance sheet – Note 5 Income statement
2. Accrued expense Always added to expense account

3. Income received in Always subtracted from the income account.

advance/deferred income
Income statement
Balance sheet – Note 9
4. Accrued income Always added to the income account.

5. Received bank statement:
Bank charges (Service fee, cash Always added to bank charges

deposit fee, credit card levy fee etc.)
Income Statement
Interest on credit balance Interest on a favourable bank balance

Note 1 – Balance sheet
Income statement – Interest income
Interest on debit balance Interest on bank overdraft

Note 2
Income statement – Interest expense
R/D cheque from a debtor Note 6 – Bank decrease (Assets decrease)/

Bank overdraft – Added to bank (Liabilities will increase)
Note 5 – Debtors increase with the amount paid by debtor.
If discount was allowed, discount will need to be cancelled.
Income statement – Discount allowed cancelled – will need
to decrease discount allowed.
R/D cheques to a creditor Nota 6 – Bank will increase (assets increase)

Bank overdraft – Bank will decrease (liabilities decrease)
Note 9 – Creditors increase
If discount was received, will need to cancel. Subtract
discount received in Income statement.
Page 2 of 24
6. Interest capitalised Income

Added to Fixed deposit – Balance sheet
Add to interest income – Note 1 and Income statement.
Expenses
Added to the loan account – Noncurrent liabilities
Add to interest expense – Note 2 and Income statement.
7. Interest not capitalised Income

Add to interest income – Note 1 and Income statement.
Add to Accrued income if still outstanding.
Expenses
Add to interest expense – Note 2 and Income statement.
Add to Accrued expense of still outstanding.
8. Depreciation It does not show at all on the pre-adjustment trial balance –

need to calculate.
Depreciation could have been done, but could be a
correction.
9 Bad debts Income statement
10 Provision for bad debts Balance sheet
Increase: Provision for bad debts adjustment - Expense
Decrease: Provision for bad debts adjustment - Income
11 Insurance claim Calculate the loss. The cost of the good damaged/stolen
must be shown in the cost account.
12. Physical stock take Calculate trading stock deficit – Expense

Calculate trading stock surplus – Income
Consumable store on hand – What is left over is always
subtracted from the expense account.
13. Salaries and wages omitted or If omitted – always add.

included.
If added incorrectly – always subtract.
14. Post-dated cheque issued Bank will be debited – add to bank if bank has a favourable
balance and subtract from liabilities if bank has an
unfavourable balance.
Creditors control will be credited.
Page 3 of 24
15. Post-dated cheque received Do nothing.

If incorrectly recorded, will need to do a reversal entry.
16. Debtor’s ledger account with a credit Need to transfer the balance to creditor’s control.
balance.
Debit – Debtors control
Credit – Creditors control
17. Creditor’s ledger account with a Need to transfer to the balance to the debtor’s control
debit balance. account.
Debit – Debtors control
Credit – Creditors control
18. Share issued during the year.
19. Shares repurchased during the year.
20. Income tax – calculate the income tax for the year.
Calculate if we owe SARS or does SARS owe us.
We owe SARS – Note 9, Current liability.
SARS owes us – Note 6. Current asset.
21. Dividends declared and paid.

NOTA:
THE TRANSACTIONS REMAIN THE SAME; IT IS THE LEVEL OF DIFFICULTY THAT CHANGES!!!
ADJUSTMENTS: CALCULATIONS
RENT INCOME
INCOME RECEIVED IN ADVANCE / DEFFERED INCOME
1. The total rent received is R26 000. One month was received in advance.
2. The tenant paid his rent in in advance. The rent increased with R2 000 per month from 1 October 2015.
The total rent received was R27 200.
3. The total rent per month is R2 000. The rent increased with 10% on 30 September 2016. The rent was
received in February for March and April.
4. The total rent received was R27 400. The rent increased with 10% from 1 September 2016. The tenant
paid the rent in February for March.
Page 4 of 24
ACCRUED INCOME
5. The rent for February is still outstanding. The total rent received was R23 000. The rent increased with
10% on 30 August 2016.
6. The rent for February was still outstanding. The total rent received was R52 000. Take note, the rent
decreased with 20% on 30 October 2016.
SALARIES AND WAGES
1. Gross Salaries Posted to the salaries and wages account – an expense to the
business.
minus Deductions Indicated in the fund account – liability to the business.
Examples: SARS (PAYE), Medical Aid, Pension fund, UIF etc.
= Nett salary Indicated in creditors for salaries and wages – Liability to the
business.
plus Contributions Dit Always added to the fund account – any contributions is an
expense to the business. The business can contribute to all
except for SARS(PAYE).
2. Types of adjustments:
 The employee’s salary is omitted.

 The employee’s salary is omitted. The salary increased with a %.
 The employee received an increase – The salary was recorded without the increase.
 An employee retired – the bookkeeper added the salary.
Page 5 of 24
3. Examples:
 Gross salary – R10 000

SARS(PAYE) – 10%
UIF – 1%
Medical aid – R150 per month.
The business contributes on a rand for rand basis toward UIF. The business contributes
double the amount deducted toward the medical aid fund.
 Nett salary – R8 750

SARS(PAYE) – 10%
UIF – 1%
Medical aid – R150 per maand.
The total deductions amounts to 12,5% of the gross salary.
The business contributes on a rand for rand basis toward UIF. The business contributes
double the amount deducted toward the medical aid fund..
 An employee, V. Bardenhorst was given a 15% salary increase from 1 February 2017. The
Human Resources Manager forgot to pass this information onto the Salaries Clerk, so she
processed and recorded V. Bardenhorst salary without the increase. It is business policy to
contribute on a rand for rand basis to the Pension and Medical Aid Funds.
The details of V. Bardenhorst old monthly salary were as follows:
Gross salary R14 000

PAYE 35% of the gross salary
Pension deduction 15% of the gross salary
Medical Aid deduction R650
Note: With the increase in salary, V. Bardenhorst moves into the next tax bracket and her
PAYE deduction now amounts to 38% of her entire gross salary for the month.
Page 6 of 24
Page 7 of 24
Page 8 of 24
Page 9 of 24
Page 10 of 24
Page 11 of 24
Page 12 of 24
Page 13 of 24
Page 14 of 24
Page 15 of 24
Page 16 of 24
Page 17 of 24
Page 18 of 24
Page 19 of 24
Page 20 of 24
Page 21 of 24
Page 22 of 24
Page 23 of 24
Page 24 of 24
Junior Tukkies 2017 ACCOUNTING - INVENTORIES
INVENTORY
QUESTION PAPER
ANSWER BOOK
Page 1 of 15
Page 2 of 15
Page 3 of 15
JUNE EXAM 2016 – EASTERN CAPE
Page 4 of 15
Page 5 of 15
Page 6 of 15
JUNE 2015 – GAUTENG
QUESTION 5: STOCK VALIDATION ( 50 marks; 30 minutes)
5.1 STOCK VALIDATION METHODS (5)
REQUIRED
5.1 Complete the following statements by writing down the correct answer on the
answer book provided.
5.1.1 When stock is valued at the end of year, all the stock on hand has been (1)
recorded at the original cost price to determine the value of the closing
stock. This stock validation method is called ….
5.1.2 First in First out means that …………………. (2)
5.1.3 When calculating the weighted average method you need to calculate the (1)
average price per …….. to determine the value of the closing stock.
5.1.4 Which of the following costs DO NOT form part of the calculation of stock
validation? Carriage on purchases; carriage on sales; import duties; (1)
custom duties; freight cost.
Page 7 of 15
5.2 FIFO AND WEIGHTED AVERAGE METHODS (45)
You are provided with information from CAELI AND MPHO Wholesalers who sells
gym weights and gym equipment to all sport clubs in Gauteng. They make use of
the periodic stock system and value their stock as follows:
 Gym weights at weighted average method.
 Gym Equipment at FIFO.
REQUIRED:
GYM WEIGHTS AT WEIGHTED AVERAGE METHOD
5.2.1 Calculate the weighted average per unit. (5)
5.2.2 Calculate the value of the closing stock of the gym weights according to (3)
the weighted average method on 28 February 2015.
5.2.3 Caeli and Mpho suspect that gym weights stock disappeared from their (6)
storeroom during the last two months. Calculate the number of weights
missing.
5.2.4 Calculate the Cost of sales at year end 28 February 2015. (6)
5.2.5 What internal control measures can Caeli and Mpho put in place to avoid
the disappearance of stock in future? Name TWO. (2)
5.2.6 The business considers changing their stock validation method. They .
want to do it legally and follow the correct method of changing from
weighted average to FIFO.
5.2.6.1 Why do you think do they want to change from Weighted to (2)
FIFO? Give ONE explanation.
5.2.6.2 Give ONE advice how to go about doing the changeover legally. (2)
GYM EQUIPMENT AT FIFO
5.2.7 Calculate the value of the closing stock of gym equipment on 28 February (7)
2015.
5.2.8 Complete the Trading Account using the periodic system. (7)
5.2.9 Use the figures calculated in 5.2.8 to calculate the COST OF SALES of (5)
the Gym equipment.
Page 8 of 15
INFORMATION
1. Inventories of gym weights
Stock Date No of Per unit Total value

units
Opening stock 1 March 2014 40 R250 R10 000
Closing stock 28 February 2015 50 ?
2. Purchases of gym weights
During the financial year ended 28 February 2015, the following stock units were
purchased.
Date No. of Cost price Total

units per unit
April 2014 100 R250 R25 000
August 2014 200 R260 R52 000
November 2014 120 R270 R32 400
January 2015 80 R280 R22 400
Total unit purchased 500 131 800
3 Returns on gym weights
During January 2015 the owners returned 40 weights that were ordered but not
according to the correct sizes. The suppliers accepted the returned units and
credited them according to the unit price in January 2015.
4. Sales of gym weights
430 units sold at R800 each: R344 000 for the year.
Page 9 of 15
5 STOCK, PURCHASES AND SALES OF GYM EQUIPMENT

Details Date No. Cost Total
price per
of
unit
units
Opening stock 1 March 2014 20 R15 000 R300 000
Total purchases 140 R2 230 000
Purchases during April 2014 10 R16 000 R160 000

the year
August 2014 30 R17 000 R510 000
November 2014 40 R18 000 R720 000
January 2015 60 R14 000 R840 000
Carriage on April 2014 to Jan 2015 R 2 000 R 280 000

purchases
Closing stock 28 February 2015 65 ? ?
Sales for the 1 Mar 2014–28 Feb 95 R40 000 R3 800 000
financial year 2015
QUESTION5: STOCK VALIDATIONS / INTERNAL CONTROL (50 marks; 30 minutes)
5.1 CONCEPTS (5)
Match the correct description in the first column with the concept in the second column
5.1.1 1
5.1.2 2
5.1.3 1
5.1.4 1 5
Page 10 of 15
5.2 FIFO AND WEIGHTED AVERAGE METHODS (55)
GYM WEIGHTS AT WEIGHTED AVERAGE METHOD GIMNASIUM
5.2.1 Calculate the weighted average per unit.
5.2.2 . Calculate the value of the closing stock of the gym weights according to the
weighted average method on 28 February 2015.
Page 11 of 15
5.2.3 Caeli and Mpho suspect that gym weights disappeared from their
storeroom during the last two months. Show the calculation of the number
of weights missing.
5.2.4 Calculate the Cost of sales at year end 28 February 2015
Page 12 of 15
5.2.5 What internal control measures can Caeli and Mpho put in place to avoid
the disappearance of stock in future? Name TWO.
5.2.6 The business considers changing their stock validation method. They
want to do it legally and follow the correct root of changing from weighted
average to FIFO.
5.2.6.1 Why do you think do they want to change from Weighted to
FIFO? Give ONE explanation
5.2.6.2 Give ONE advice how to go about doing the changeover legally
Page 13 of 15
GYM EQUIPMENT AT FIFO

5.2.7 Calculate the value of the closing stock of gym equipment on 28 February
2015.
5.2.8 GENERAL LEDGER OF CAELI AND MPHO
Dr TRADING ACCOUNT: GYM EQUIPMWENT (F1) Cr
2014 Opening stock GJ 2015 28 Closing stock GJ
Mar 1 Feb
2015 28 Purchases(net) GJ Sales(net) GJ
Feb
GJ
...........................
Profit and GJ
loss(gross profit)
Page 14 of 15
5.2.9 Use the figures calculated in 5.2.8 to calculate the COST OF SALES of the
Gym equipment.
Page 15 of 15
Junior Tukkies 2017 ACCOUNTING - RECONCILIATION
RECONCILIATION
QUESTION PAPER
ANSWER BOOK
Page 1 of 16
November 2014
Page 2 of 16
Page 3 of 16
Page 4 of 16
February/March 2016
Page 5 of 16
Page 6 of 16
Page 7 of 16
Page 8 of 16
Prelim 2016 Freestate
1.3 DEBTORS' CONTROL ACCOUNT AND DEBTORS LIST

The bookkeeper of Groenewald Stores made some mistakes and omitted certain transactions
in preparing the Debtors' Control Account and the Debtors' List on 30 June 2016. You are the
internal auditor of the store and you are called upon to correct the mistakes.
REQUIRED:
Use the format provided to reconcile the balances of the Debtors' Control and the Debtors'
List. Write in the correct amount with a + sign to show an increase and – sign to show a
decrease and 0 for no entry. Details are not required. (10)
INFORMATION:
A. Balances on 30 June 2016
Debtors' Control Account R47 200 (Dr)
Debtors' List R53 090 (Dr)
B. ERRORS AND OMISSIONS:
1. The total of the Debtors' Allowance Journal was undercast by R4 210.
2. Issued receipt no.105 for R3 800 to N Pieterse who had made a partial
payment towards her account. Her account was mistakenly debited with this
amount.
3. Received R2 500 from a tenant for the June rent. This amount was
erroneously entered in the Debtors Control column of the Cash Receipts
Journal.
4. An invoice for R700 issued to a debtor, P Pollie was completely omitted when
books were drawn up.
5. A credit note for R850 issued to a debtor, K Kwatsman, for goods returned by
him, was entered in the Debtors' Journal in error and posted accordingly.
Page 9 of 16
Debtors Reconciliation
No Details Debtors' Control Debtors' List
A Pre-adjustment balances/total 47 200 53 090
5
10
Balances
Eastern Cape 2015 Prelim
Page 10 of 16
MPUMALANGA 2016 PRELIM
DEBTORS’ AGE ANALYSIS AND INTERNAL CONTROL

Okuhle Fashion Boutique sells 80% of their ladies' fashion wear on credit. The business pays cash for its stock.
REQUIRED:
1.2.1 The business is not controlling its debtors effectively. Give TWO reasons why you would agree with
this statement. Quote figures.
(4)
1.2.2 Okuhle is of the opinion that her debtors' clerk does not screen (check) potential customers properly (4)
before offering credit facilities.
Give TWO strategies that the debtors' clerk should follow before allowing customers to open
accounts.
Page 11 of 16
INFORMATION
The age analysis of debtors extracted at the end of August 2016 showed the following:
Credit Policy: Debtors are allowed 30 days to settle their accounts.
NAME OF CREDIT TOTAL CURRENT

30 DAYS 60 DAYS 60 DAYS+
DEBTOR LIMIT OWING MONTH
L.Ndlovu 8 000 7 700 2 800 3 100 1 800
N.Nel 5 000 6 120 3 820 2 300
S.Shy 4 000 1 380 1 380
B.Ben 10 000 10 600 3 420 4 280 2 900
25 800 8 620 9 380 6 000 1 800
33% 36% 24% 7%
DEBTOR’S AGE ANALYSIS AND INTERNAL CONTROL
1.2.1 The business is not controlling its debtors effectively. Give TWO
reasons why you would agree with this statement. Quote figures in
your answer.
1.2.2 Okuhle is of the opinion that her debtors' clerk does not screen
(check) potential customers properly before offering credit facilities.
Give TWO strategies that the debtors' clerk should follow before
allowing customers to open accounts.
Page 12 of 16
QUESTION 1: RECONCILIATION, AGE ANALYSIS AND INTERNAL CONTROL (40 marks; 20 minutes)
1.1 BANK RECONCILIATION
You are provided with information relating to Golden Jewellers. The financial year ended on 31 May 2016.
REQUIRED:
Explain why it is important for a business to prepare a Bank Reconciliation Statement each month.
1.1.1 (2)
1.1.2 Calculate the correct totals for the Cash Receipts Journal and the Cash Payments Journal for May (12)
2016.
1.1.3 Calculate the Bank balance on 31 May 2016. State whether this is a favourable or unfavourable (6)
balance.
1.1.4 Prepare the Bank Reconciliation Statement on 31 May 2016. (8)
1.1.5 The fixed deposit of R84 000 matures next month. Suggest TWO ways in which the business should (4)
use this money. Quote figures to support your answer.
INFORMATION:
A The following items appeared on the Bank Reconciliation Statement on 30 April 2016:
Favourable bank balance in the ledger of Golden Jewellers R 6 325
Favourable balance on the Bank Statement 12 545
Outstanding deposit (dated 30 April 2016) 12 000
Outstanding cheques:
No. 261 (dated 3 November 2015) 5 000
No. 519 (dated 14 April 2016) 8 920
No. 543 (dated 12 May 2016) 4 300
B On 31 May 2016, the provisional totals in the Cash Journals were as follows:
Cash Receipts Journal : R70 600 Cash Payments Journal : R105 320
C The following items appeared on the Bank Statement but not in the Cash Journals for May 2016:
 Direct deposit by debtor Kwela, R2 400

 Bank charges, R520
 Interest on fixed deposit for May, R700
 Interest on overdraft for May, R810
 Stop-order in favour of Rama Insurance Co, R660
 Dishonoured cheque originally received from a debtor, M Maduna, R6 200.
Page 13 of 16
D The following differences were noticed:
 Cheque No. 565 for repairs was recorded in the CPJ as R1 570, but the correct
amount of R1 750 appeared in the May Bank Statement.
 A deposit of R12 000 appeared on the Bank Statement on 1 May 2016 but did
not appear in the May CRJ.
 A deposit of R20 295, dated 20 May 2016, appeared in the May CRJ, but not on
the May Bank Statement.
 Cheques in the May CPJ not on the Bank Statement were:
No. 654 (dated 23 May 2016), R2 800
No. 674 (dated 29 August 2016), 2 520
NOTE: Cheque No. 261 and No. 519 from the April Reconciliation statement
did not appear on the May Bank Statement.
QUESTION 1
1.1 BANK RECONCILIATION
1.1.1 Explain why it is important for a business to prepare a Bank

Reconciliation Statement each month.
. 2
Page 14 of 16
1.1.2 Calculate the correct totals for the Cash Receipts Journal and the Cash
Payments Journal for May 2016. (Details are not required)
CRJ Bank CPJ Bank
Provisional total 70 600 Provisional total 105 320
12
1.1.3 Calculate the Bank Balance on 31 May 2016.
State whether this is a favourable or unfavourable balance.
Page 15 of 16
1.1.4 BANK RECONCILIATION STATEMENT ON 31 MAY 2016

Debit Credit
1.1.5 The fixed deposit of R84 000 matures next month. Suggest TWO ways
in which the business can use this money. Quote figures to support
your answer.
Page 16 of 16
Junior Tukkies 2017 ACCOUNTING - VAT
VAT
QUESTION PAPER
ANSWER BOOK
Page 1 of 5
NOVEMBER 2014
Page 2 of 5
EASTERN CAPE 2015 PRELIM
Page 3 of 5
Page 4 of 5
Page 5 of 5

Accounting All Papers and Memorandums - zp124322

Uploaded by

Copyright:

Available Formats

Accounting All Papers and Memorandums - zp124322

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Accounting All Papers and Memorandums - zp124322

Uploaded by

Copyright:

Available Formats

Junior Tukkies 2017 ACCOUNTING - COMPANIES

CASH FLOW STATEMENT

QUESTION 4 CASH FLOW STATEMENT (60 marks;36 minutes)

4.2 Use the given information to complete the following:

4.2.3 Cash generated from operations (18)

4.2.4 Cash and cash equivalents (4)

4.2.5 Dividends paid (5)

4.2.6 Taxation paid (4)

30 April 2015 30 April 2014

Note 7: Ordinary Share Capital l (30 April 2015) R

750 000 Issued at issue price of R2 per share 1 500 000

50 000 Repurchased at an average price of R2,50 per share. (125 000)

1. No(zero) equipment was sold during the year.

2. Vehicles was sold at carrying value, R21 600 cash.

3. Authorised share capital is 1 200 000 ordinary shares

8. A final dividend of 25 cents per share was declared on 30 April 2015.

QUESTION 4 CASH FLOW STATEMENT (60 marks;36 minutes)

4.2.1 Fixed assets Note to the Balance Sheet on 30 April 2015:

Land and Vehicles Equipment

Accumulated Depreciation - (50 400) (5 550)

Carrying value at the beginning 1 800 000 89 600 12 950

Additional at cost price ? - ?

Disposal at carrying value - ? -

Carrying value at the end 1 950 000 52 480 13 000

Cost price 1 950 000 110 000 20 500

Accumulated depreciation - (57 520) (7 500)

CASH FLOW FROM OPERATING ACTIVITIES

Cash generated from operations 1

Interest paid (58 500)

CASH FROM INVESTING ACTIVITIES

Purchases of fixed assets

Proceeds from sale of fixed assets

CASH FROME FINANCING ACTIVITIES

Proceeds from shares issued

Net change in cash and cash equivalents 2

Cash and cash equivalents Cash at the beginning of

Cash and cash equivalents at end of year 2

Notes to the Cash flow Statement

1 Cash generated from operations

Net profit before tax

Cash generated from operations before changes in net working capital

Changes in net working capital

2 Cash and cash equivalents

Net change 2014 2015

QUESTION 2 ANALYSIS AND INTERPRETATION (45 marks; 27 minutes)

1 An extract from the Balance Sheets

31 MAY 2015 31 MAY 2014

3 An extract of Financial indicators

31 MAY 2015 31 MAY 2014

2.1 Calculate the following indicators for 2015.

2.1.1 Percentage operating expenses on sales. (4)

2.1.2 Debtors average collection period. (5)

2.1.3 Percentage return on average shareholders’ equity. (7)

2.2.1 Comment on the liquidity of the business by indicating THREE

2.2.2 The business is considering to negotiate an additional loan of

2.2.3 The business tries to maintain a mark-up of 50% on cost price.

QUESTION 2 ANALYSIS AND INTERPRETATION (45 marks; 27 minutes)

2.1 Calculate the following indicators for 2015