EXAMINATIONS COUNCIL OF ESWATINI

Junior Certificate Examination

CANDIDATE
NAME

CENTRE CANDIDATE
NUMBER NUMBER

BOOKKEEPING AND ACCOUNTS 520/01

Paper 1 October/November 2020
1 hour 30 minutes

READ THESE INSTRUCTIONS FIRST

1. Write your name, Centre number and candidate number For Examiner’s use
in the spaces provided.
2. Answer all questions. 1.

3. Write your answers using blue or black pen. 2.

4. Marks are given in [ ] at the end of each question or
3.
part
question. 4.
5. Special attention must be paid to legibility and
5.
neatness.
6. Name(s) of businesses/persons used in this paper are TOTAL
fictitious.
7. You may use a calculator.

This document consists of 14 pages and 2 blank page.

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QUESTION 1

For each of the questions (a) – (j) below, choose the response which you consider
to be correct and write the letter in the box to indicate the correct answer.
(a) How is rent received accrued classified in the balance sheet?
A. asset
B. expense
C. income
D. liability [1]

(b) Which discount encourages bulk buying?

A. cash discount
B. discount allowed
C. discount received
D. trade discount [1]

(c) Which of the following is a long term liability?

A. Owed expenses
B. prepayment
C. loan on buildings
D. overdraft [1]

(d) When would a cheque be marked R/D by a bank?

A. generally crossed
B. specially crossed
C. when it is dishonoured
D. when it is honoured [1]

(e) Office furniture is bought for E50 000 by cheque.

It is estimated to be used for 5 years and it has a scrap value
of E5 000.
How much is the annual depreciation?

A. E9 000
B. E10 000
C. E25 000
D. E45 000 [1]

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(f) On 30 September 2020, rent paid totalled E3 200 and rent prepaid
was E800.
How much rent should be charged in the profit and loss account on
30 September 2020?

A. E800
B. E2 400
C. E3 200
D. E4 000 [1]
(g) Bahle and Mehlo are partners sharing profits and losses in the
ratio 3:2. The profit was E25 000 after annual interest on
drawings and interest on capital was considered.

How much is Bahle’s share of profit?

A. E5 000
B. E8 333
C. E10 000
D. E15 000 [1]

(h) What is interest charged on debtors account?

A. interest accrued
B. interest payable
C. interest prepaid
D. interest received [1]

(i) Dladla’s account had a debit balance of E600, in Kunene’s sales

ledger.
What does this balance mean to Kunene?
A. Dladla has paid E600, to Kunene
B. Dladla is Kunene’s debtor, owing E600
C. Kunene has paid E600 to Dladla
D. Kunene is Dladla’s debtor, owing E600 [1]

(j) How is an amount withdrawn from the bank for office use recorded in
books of accounts?
A. Debit the bank account and credit the cash account
B. Debit the cash account and credit the bank account
C. Debit the drawings account and credit the purchases
account [1]
D. Debit the purchases account and credit the drawings
account
[Total:10 marks]

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QUESTION 2
Muhle received a bank statement for the month ended 30 August 2020. It showed
a bank balance of E5070 while his cash book balance was E2630.
Items that appeared only on the bank statement were:
1 A stop order to WAX for rent E1800 was paid by the bank
2 Bank charges for the month E200
3 A cheque, number 10397 paid to Muhle of E3800 was dishonoured by the bank
4 Dividend received directly deposited E2300
Items that appeared only on the cash book on 30 August 2020 were:
Cheques paid but not presented to the bank for payments:
Zulu E3350
Mafu E2500
Uncredited deposits made on 29 August 2020:
Cash E 2110
Cheque received from Mathonsi E3200
REQUIRED

(a) (i) State three possible reasons why the bank dishonoured cheque
number 10397
1. ……………………………………………………………………………………….

2. …………………………………………………………………………………..…..

3. …………………………………………………………………………….......... [3]

(ii) Explain the following terms that appeared on Muhle’s bank statement.
Stop order
…………………………………………………………………………………..………

……………………………………………………………………………………..……

Bank charges
…………………………………………………………………………………..………

……………………………………………………………………………………..……

Dividend
…………………………………………………………………………………..………

……………………………………………………………………………………..……

Dishonoured cheque

…………………………………………………………………………………..………

…………………………………………………………………………..………..… [8]

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 (b) Prepare Muhle’s supplementary cash book at 30 August 2020.
Muhle
Supplementary Cash Book as at 30 August 2020 (bank columns only)

5
[6]

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(c) Prepare Muhle’s bank reconciliation statement as at 30 August 2020.

Muhle
Bank Reconciliation Statement as at 30 August 2020

[6]

[Total marks: 23]

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QUESTION 3
Mnotfo’s bookkeeper records all business transactions applying relevant accounting
concepts and polices. His financial year ends 28 February.
REQUIRED
(a) State the account to be debited and account to be credited for each of
Mnotfo’s transactions given below.

The first one has been completed as an example.

Account to be
Transaction Account to be debited
credited

e.g. Cash sales Cash Sales

Wages paid by cheque

Sold goods on credit to

D. Dlamini

Motor van bought by cheque

Petty cashier bought

postage stamps
Goods returned by D.
Dlamini
[10]

(b) Explain the accounting concept that is applied by Mnotfo’s bookkeeper

when debiting one account and crediting the corresponding account for
every transaction.

Accounting concepts …..……………………………………………………..………

Explanation…………………………………………………………………………..…

…………………………………………………………………………………….… [3]

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Mnotfo’s bookkeeper, prepared the following purchases account.

Purchases account

2020 E 2020 E
Feb 1 Balance b/d 21 000 Feb 28 Income statement 36 500
15 Bank 3 500
22 Cash 7 000
28 Creditors 5 000
36 500 36 500
REQUIRED
(c) Explain the entries on Mnotfo’s purchases account on the following dates.

Feb 1 Balance

………………………………………………………………………………..…………

…………………………………………………………………………………..………

Feb 15 Bank

……………………………………………………………………………………..……

…………………………………………………………………………………..………

Feb 22 Cash

……………………………………………………………………………………..……

………………………………………………………………………………..…………

Feb 28 Creditors

…………………………………………………………………………………..………

…………………………………………………………………………………..………

Feb 28 Income statement

………………………………………………………………………………………..…

………………………………………………………………………………..…… [10]
[Total marks: 23]

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QUESTION 4
Mphumelelo, a sole trader, operates a grocery business. His financial year ends at
31 March.

REQUIRED
(a) State four advantages of a sole trader.

1……………………………………………………………………………………..…..

…………………………………………………………………………………………..

2……………………………………………………………………………………....…

……………………………………………………………………………………..……

3………………………………………………………………………………………....

……………………………………………………………………………………..……

4……………………………………………………………………………..…………..

……………………………………………………………………………………… [4]

(b) Explain two reasons why a business may calculate profit.

1………………………………………………………………………………………....

……………………………………………………………………………………..……

2……………………………………………………………………………..…………..

……………………………………………………………………………………… [4]

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Mphumelelo’s Motor vehicle bought in 2017 is still shown at the same value the in
books of accounts in 2020.

REQUIRED

(c) Explain the accounting concept applied by Mphumelelo when recording the
motor vehicle account over the years.

Accounting concept ………………………………………………..…………………

Explanation…………………………………………………………………………….

..………………………………………………………………………..…………… [3]

Mphumelelo’s income statement prepared for the year ended 31 March 2020
showed a net profit of E1150.

The following information was available in his books at 31 March 2020 after the
preparation of the income statement.
E
Capital 52 000
Trade payables/ Creditors 2 500
Premises 29 000
Motor vehicles 30 000
Furniture 4 000
Provision for depreciation: motor vehicle 12 000
Furniture 800
Inventory/Stock (1 April 2019) 6 250
Cash 2 000
Provision for bad debts 600
Loan from ASB Bank 10 700
Insurance prepaid 150
Trade receivables/ Debtors 16 000
Drawings 2 000
Rent owing 400
Inventory/stock (31 March 2020) 5 000
Bank overdraft 8 000

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REQUIRED
(b) Prepare Mphumelelo’s statement of financial position as at 31 March 2020.
Mpumelelo’s Balance Sheet as at 31 March 2020

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[12]

[Total: 23 marks]

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QUESTION 5
Sihle, a trader, keeps trade receivables and trade payables records in the books of
accounts.
Her sales journal for the month of April 2020 had the following entries.
Sales Journal

Date Details Folio E C E C

2020
Apr 1 Blue Ltd 3 000

4 Brown Traders 1 500

8 Green Tea 2 600

12 Blue Ltd 900

27 Yellow Traders 4 200

30 Cr sales account 12 200

REQUIRED

(a) Distinguish between trade payables and trade receivables.

………………………………………………………………………………………..…
………………………………………………………………………………………..…
……………………………………………………………………………………..……
…………………………………………………………………………………....… [4]

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(b) Post Sihle’s sales journal entries to the ledger. Balance the ledger accounts
where necessary.

[8]

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Sihle allows 30% trade discount and 5% cash discount if payment is made within
15 days from the day of purchase.

Yellow Trader settled his debt to Sihle paying a cheque on 11 May 2020.

REQUIRED

(c) (i) Calculate the amount paid by Yellow Trader on 11 May 2020. Show
your workings.
………………………………………………………………………………….…

………………………………………………………………………………….…

………………………………………………………………………………….…

………………………………………………………………………………... [2]

(ii) State the subsidiary book Sihle used to record Yellow trader’s
payment
………………………………………………………………………………… [1]

(iii) State how Sihle recorded the payment from Yellow trader on 11
May 2020.

Date Account debited E Account credited E

2020
May 11 ……………………………. ………………………….

………………………........ ………………………….

[3]

Sihle does not record in her books information about skills her employees possess or
information about how good her managers are.

REQUIRED
(d) Explain the accounting concept observed by Sihle that supports his
decision not to record the above information.

Accounting concept…………………………………………………………………...

Explanation..…………………………………………………………………...……....

….……..………………………………………………………………………….… [3]

[Total marks: 21]

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