Accounting Grade 10 NW/June 2017

PROVINCIAL ASSESSMENT

GRADE 10

ACCOUNTING

JUNE 2017 – QUESTION PAPER

MARKS: 200

TIME: 2 hours

This question paper consists of 11 pages.

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Accounting Grade 10 NW/June 2017

INSTRUCTIONS AND INFORMATION.

Read the instuctions carefully and follow them precisely.

1. Answer ALL questions.

2. A special ANSWER BOOK is provided in which to answer ALL the questions.

3. Show workings in order to achieve part-marks.

4. You may use a non-programmable calculator.

5. You may use a dark pencil or blue ink to answer the questions.

6. Use the information in the table below as a guide when answering the question
paper. Try NOT to deviate from it.

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Accounting Grade 10 NW/June 2017

QUESTION 1: 20 marks; 12minutes

Main topic of the question This question integrates:
Financial accounting; Concepts
Managing resources GAAP

QUESTION 2: 56marks; 34minutes

Main topic of the question This question integrates:
Financial accounting; Cash Journals
Managing resources General Journal
Ledger Accounts
Internal Control

Question 3: 41 marks; 24 minutes

Main topic of the question This question integrates:
Financial accounting Accounting Equation

QUESTION 4: 34 marks; 20minutes

Main topic of the question This question integrates:
Financial accounting; Debtors Control and Debtors List
Managing resources

QUESTION 5: 34 marks; 20minutes

Main topic of the question This question integrates:
Financial accounting; VAT
Managing resources

QUESTION 6: 15 marks; 10minutes

Main topic of the question This question integrates:
Financial accounting Salaries and Wages Journal

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Accounting Grade 10 NW/June 2017

QUESTION 1 CONCEPTS (20 marks; 12 minutes)

REQUIRED

Choose the concept in column B which matches the explanation in column A. Write
ONLY the letter, e.g. 1.1. A.

COLUMN A COLUMN B

1.1 The document attached to the document used to pay A. Tangible/ Fixed
a supplier for an amount owed to him, using money in assets
the business bank account.
1.2 Bank overdraft. B. Capital
1.3 Money the owner gives to start the business. C. Creditors
1.4 Assets with a long life span. D. Income
1.5 Money received by the business for selling stock. E. Cheque counterfoil
1.6 Other businesses to which the business owes money F. Profit motive
for purchasing stock.
1.7 The reason why a person would start a business. G. Current liability
1.8 The GAAP principle that says that assets purchased H. Going concern
by the business are entered at cost price in the concept
accounting records.
1.9 The employer must deduct income tax from his I. Historical cost
employees.
1.10 The business will continue to operate in the future. J. PAYE
K. Debit note

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Accounting Grade 10 NW/June 2017

QUESTION 2 (56 marks; 35 minutes)

CASH JOURNALS AND GENERAL LEDGER

The following information was taken from the accounting records of Sthe Traders.
The business uses a mark-up of 100% on cost.

REQUIRED

2.1 Enter the transactions listed below in the Cash Journals of Sthe Traders
for March 2017. (43)
Total only the columns of Bank and Creditors' control.

2.2 Prepare the following accounts in the General Ledger:

Bank (4)
Creditors' control (2)
Do not close off the accounts.

Transactions during March 2017

01 Information as per cash register roll no. 21:

Cash sales, R5 100
01 Issued receipt no. 58 to L Lion for R760 in settlement of his debt of R800.
05 Purchased goods for R2 400 less 10% trade discount from Zoo Wholesalers
and paid by cheque no 711.
07 Paid R1 500 to creditor Bingo Traders by cheque and received a discount of R90.
09 Issued a cheque to First Bank for R600 as monthly repayment towards the loan.
10 The fixed deposit of R50 000 had matured. Received a cheque for R68 000 from
Star Bank.
14 Issued a cheque to Child Welfare for R300 as a donation.
21 Drew a cheque to pay the weekly wages, R3 500.
31 Cashed a cheque for R380 to restore the Petty Cash imprest amount of R400.
31 The bank statement from Star Bank revealed the following in respect of the
current account:
· Interest on debit balance, R90
· Unpaid cheque for R1 380.
This cheque was received from A. Tlou for R1 400 in
settlement of his account of R1 450 and the discount was
cancelled.

2.3 Answer the following questions:

2.3.1 Provide the double entry for the cancellation of the discount
allowed in the transaction of A Tlou dated 31 March.(4)
2.3.2 Do you think that the bank account had a favourable balance
throughout the month? Provide a suitable answer by explaining. (3)

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Accounting Grade 10 NW/June 2017

QUESTION 3 (41 marks; 25 minutes)

ACCOUNTING EQUATION

REQUIRED

Use the following information of Zet Traders to show the effect of each transaction
on the accounting equation.
Example
Donate stationery to the amount of R550 to a local crèche.
Account Account Amount Asset Owner`s Liabilities
debited credited Equity
Ex Donation Stationery 550 0 - 0
+

1. Merchandise with a selling price of R600 was donated to the local primary
school (profit margin of 25% on the cost price).
2. Charged the overdue account of R600 of A Sthe with interest at 10% p.a. for
one month,
3. Received R150' from G Nare. His account was written off as a bad debt during
the previous year.
4. Sent a cheque to W Tsheno for R620 to settle your account of R645.
5. Drew a cash cheque for the following:
 the owners' daughter's school fees, R600
 the petty cashier, R700
 repairs to equipment, R400
6. The bank charged the overdrawn bank account of the business with R66 interest.

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Accounting Grade 10 NW/June 2017

QUESTION 4 (34 marks; 20 minutes)

DEBTORS AND THE LIST

The following information was taken from the books of Jozi Traders.
REQUIRED

4.1 Draw up the adjusted Debtors' Control account as on 30 April 2017, after the
errors have been taken into account. (13)
4.2 Calculate the correct total of the Debtors' List. Show all amounts. (13)

4.3 Answer the following questions:

4.3.1 Name two ways to encourage debtors to pay their accounts on time. (4)
4.3.2 Explain the difference between Credit Terms and Credit Limit. (4)

INFORMATION
GENERAL LEDGER OF ZIZI TRADERS
Dr DEBTOR`S CONTROL Cr
April April Bank and
2017 1 Balance b/d 94 560 2017 30 discount CRJ 257 508
31 Sales DJ 271 050 Debtor`s
allowance DAJ 1 122
Bank CPJ 270 Journal
credits GJ 936
Journal
debits GJ 624 Balance c/d 106 938
366 504 366 504

May 1 Balance b/d 106 938

Debtor`s List on 30 April 2017

Debtor`s Debit Credit
C. Lebo 17 960
S. Thabo 19 910
W. Jos 18 202
V. Vuyani 12 460
B. Ben 17 382
H. Hope 14 404
T. Tlou 180
100 318 180

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Accounting Grade 10 NW/June 2017

Additional information

The total of the Debtors’ List did not agree with the balance in the Debtors’
Control account. The following errors were found:

1 The Debtors' Journal was overcast by R6 000.

2 C Lebo’s cheque for R270 was returned by the bank marked “insufficient funds”.
This cheque was previously received to settle his debt of R300. No entry has been
made to record the cancellation of the discount.
3 An entry of R230 in the Debtors' Allowance Journal was posted to W Jos’s
account as R830 by mistake.
4 A receipt for R1 088 was issued to H Hope in payment of his account. It was
incorrectly recorded in the CRJ as R1 008 and posted to the ledger as such.
5 A debtor, T Tlou’s credit balance must be carried over to the Creditors’ Ledger.
6 The account of S Thabo was undercasted by R200.

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Accounting Grade 10 NW/June 2017

QUESTION 5 (34 marks; 20 minutes)

VAT

INFORMATION:

ZICO TRADERS INVOICE No. 173

VAT Reg No.00765/2110

34 Blue Street
Rustenburg
0300

31 March 2017
To: Sthe Stores
92 Lentswe Street
Thlabane
0299

Quantity Description Unit Price VAT Amount

5 Liters Cooking Oil R40,40 NIL R40.40

50 Kg White Sugar 250,00 R35,00 R250,00
2 X 5Kg Rice R56/KG NIL R112,00
10 Boxes Corn Flakes R36.20 R50.68 R362.00
Cereal
5 Kg Sugar Beans R67,00 NIL R67,00
Sub Total R831.40
VAT RATE? R 85.68
TOTAL R917.08

Signed:

REQUIRED:

5.1 Define the following concepts:

5.1.1 Value Added Tax (2)
5.1.2 VAT exempted items (2)
5.1.3 Zero- rated items (2)
5.2 List THREE zero-rated items from the above information (3)
5.3 What is the current rate of VAT in South Africa? (2)
5.4 Is it ethical for Zico Traders to charge VAT on zero-rated items? Explain (3)

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Accounting Grade 10 NW/June 2017

5.5 The information below refers to Sis B`s Outfitters. They sell for cash and
on credit. The business uses a mark-up of 50%.

REQUIRED:

Record the following transactions directly in the account of S. White in the Debtors
Ledger.

Transactions for February 2017

01 Balance owing by S. White R2 000.

03 Sold merchandise for R300 to S. White on credit as per inv. no. C05.
08 Delivered stock on credit to S. White as per inv. no. C31, R600.
09 Issued credit note no. B29 to S. White for spoilt goods returned R150.
14 Issued a cash sales slip to S. White for goods sold R410.
15 S. White paid R1 000 towards his account. A discount of R25 was allowed. (Rec.
no. R25)
19 Sold stock valued at R900 to S. WhiteA cash sales slip for R350 was issued. Inv.
no. C53 was issued for the rest of the purchase.
21 Issued a receipt (no. R31) to S. White for R700 as part payment of his account.
25 Sold merchandise for R525 to S. White on credit as per inv. no. C65.
26 The bank informed Sis B`s Outfitters that the cheque received from S. White on
the 21sthad been dishonoured due to insufficient funds.

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Accounting Grade 10 NW/June 2017

QUESTION 6 (15 marks; 10 minutes)

SALARIES AND WAGES

6.1 Jane Menoe has been appointed as a casual worker at Ditebogo Traders. The
details below were extracted from her wage slip for the week ending 30 March
2017

Normal hours worked: 40

Overtime hours worked: 6
Normal Rate per hour: R160
Overtime Rate per hour: R230
Deductions:
PAYE: 12% of gross salary
Pension Fund: R207
Medical aid: R210
UIF: R31,50
Skills Development Levy: R9
Employer Contribution
Pension Fund: R3 for every rand contributed by the employee
Medical Aid Fund: R6 for every R1 contributed by the employees

QUESTIONS:

6.1.1 Calculate the gross wage for the week ending 30 March 2017 (5)
6.1.2 How much has it cost Ditebogo Clothing in total to employ Jane Menoe for the
week ended 30 March 2017?(4)
6.2 Eva Visser has recently started working as a bookkeeper and has been
placed on the following salary scale: R360 000 x 54 000 – 522 000 x 90 000 –
702 000 x 109 800 – 811 800.
6.2.1 What will Eva’s monthly gross salary be when she starts working? (2)
6.2.2 What will Eva earn per month in her fourth year of working? (5)

TOTAL: 200

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