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Commerce and Acccounting 2

1. The document provides information for a mock examination on commerce and accounting paper 2. It includes instructions, sections on preparing a cash budget, discussing the importance of insurance, benefits of advertising, and preparing an order form. 2. Section 2 asks students to prepare an order form, explain why an advice note should be sent, and discuss ways a business could avoid cash flow problems. 3. Section 3 provides information on a trading account, recording transactions in a three column cash book, and recording business transactions in ledger accounts to balance the cash account. The summary outlines the key tasks and sections in the mock exam paper.

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Thabiso Maikano
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229 views8 pages

Commerce and Acccounting 2

1. The document provides information for a mock examination on commerce and accounting paper 2. It includes instructions, sections on preparing a cash budget, discussing the importance of insurance, benefits of advertising, and preparing an order form. 2. Section 2 asks students to prepare an order form, explain why an advice note should be sent, and discuss ways a business could avoid cash flow problems. 3. Section 3 provides information on a trading account, recording transactions in a three column cash book, and recording business transactions in ledger accounts to balance the cash account. The summary outlines the key tasks and sections in the mock exam paper.

Uploaded by

Thabiso Maikano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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MOCK EXAMINATION 2017

COMMERCE AND ACCOUNTING PAPER 2

TIME: 1 HR 15MIN Marks: 50

INSTRUCTIONS
1. Answer ALL questions.
2. All answers must be written in the spaces provided.

Name: _________________________________ Centre: ___________________

For Tutor’s use


Sections Marks Scored

A
B

Total Marks

1
SECTION A ( 30 Marks )
1. Modiri owns and run an Independent Shop. He rented out one
of the rooms to another businessman. The following information
was provided for the month of August:

P
Cash balance at the beginning of August 100
Stock 1 400
Sales 1 850
Wages 750
Advertising 40
Insurance 75
Debtors 300
Income from rent 350

(a) Prepare Modiri’s cash budget for the month of August.

(6)

( b ) Explain why it is important for Modiri to pay for the insurance.


_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
(2)

(c) (i) Give two reasons why advertising can be beneficial to Modiri.

2
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
______________________________________________________ (4)
(ii) Give four important information that Modiri should consider
when designing an advertisement.
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_________________________________________________________________( 4 )

2. Use the following information to answer question 2 (a) and


(b).

Bame (pty ) Ltd of Box 29, Kopong, requested a quotation from


WillyWilly Wholesaler of Bag 2010, Gaborone and she immediately
received a quotation as requested of Number 825 on the 12 February
2016 for the following items:

Flour 2 * 12.5kg at P89-00 each


Cookig Oil 4 * 2 litres at P25-00 each
Yeast 4 boxes at P15-50 each
Salt 2 * 750g at P10-00 each
Sugar 1 * 12.5kg at P65-00 each

(a) (i) You are required to prepare an Order Form for the above
items.

3
(8)

(ii) An Advice Note was sent to Bame by WillyWilly Wholesaler. Give


two reasons why the advice note should be sent to Bame.
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________ ( 2 )

(b) Bame (Pty) Ltd experienced cash flow problems. Explain two ways
in which she could have avoided the cash flow problem in her
business.
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
________________________________________________________________ ( 4)

4
SECTION B PAPER 2 (20 Marks)

3. Mr Johnny’s books of accounts on 28 February 2016 reflected


the following balances.

P
Sales 23 000
Opening stock 600
Closing Stock 500
Purchases 8 500
Returns inwards 450
Returns outwards 150

(a)Prepare a Trading Account for the month ending 28 February 2016


P P

(6)

5
( b ) Record the following two transactions in a Three Column Cash
Book:

• Johnny (Pty) Ltd paid Patrick P 10 000 cash and received a


2% discount.
• Johnny (Pty) Ltd received a cheque of P2 500 from Bino, who
was given a 5% discount.

DR CR
Receipts Discount Cash Bank Payments Discount Cash Bank
P P P P P P P P

(4)

The following are transactions of Paida ( Pty ) Ltd for the month of
March 2016.

March 1 Started a business with P10 000 cash


4 Bought office furniture for P2 000 cash
6 Bought stock for re-sale at P5 000 cash
11 Sold goods for P200 cash
19 Received a cheque for goods sold for P3 500
20 Took goods worth P750 for personal use
24 Paid P50 cash for water bill.

Record the transactions in the appropriate ledger accounts and


balance the cash account.

6
Date Details Amount Date Details Amount

7
( 10 )

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