NOVEMBER EXAMINATION

Reading time: 10h50 to 11h00

Writing time: 11h00 to 13h00
ACCOUNTING GRADE 11
Paper
Time: ho!r" 100 mar#"
ASSESSMENT GUIDELINES
ACCOUNTING GRADE 11 Paper Page o$ %
QUESTION 1 Budgets (19 marks !" m#$utes%
1&1& De'em(er i" ho)ida* month and man* peop)e +i)) go on ho)ida* to "ea"ide to+n", "o the
'a$- i" )i#e)* to ha.e higher "a)e"& /10
1&&
1&&1& De'em(er 'o"t o$ "a)e" 1 De'em(er 'a"h p!r'ha"e" 2 3an!ar* pa*ment" to 'reditor"
/pa*ment" are made a$ter 30 da*"0&
4o De'em(er 'o"t o$ "a)e" 1 150 000 2 0 000 1 00 000
4o per'entage (o!ght on 'redit 1 0 000 6 00 000 1 107 /80
1&&& Gro"" pro$it 1 "a)e" 9 'o"t o$ "a)e" 1 50 000 9 00 000 1 50 000 /0
1&&3& :ar#;!p 1 /Gro"" pro$it 6 Co"t o$ "a)e"0 < 100 1 50 000 6 00 000 < 100 1 807 /0
1&3& An* t&' o$ the $o))o+ing:
Contri(!te e=tra 'apita) o$ R50 000 in 3an!ar*
Ta#e o!t a )oan o$ R50 000 in 3an!ar*
Red!'e "a)arie" and +age" (* po""i()* retren'hing a +or#er in 3an!ar*
Red!'e pro>e'ted ad.erti"ing e=pendit!re in ?e(r!ar* / < 1 80
1&8& An* t&' +e));rea"oned e=p)anation", 'orre"ponding to the t+o area" identi$ied in the
pre.io!" @!e"tion, "!'h a":
Capita) 9 good, i$ "he 'an a$$ord it /+i)) not need to (e repaid +ith intere"t0
Aoan 9 ha" the di"ad.antage that it i" 'o"ting her R1 %00 more in intere"t
Red!'ing "a)arie" and +age" 9 might 'a!"e di$$i'!)tie" +ith )a(o!r )a+" and po""i()e !n$air
di"mi""a) o$ emp)o*ee" 6 "hort o$ "ta$$ "o (!"ine"" +i)) "!$$er&
Red!'ing ad.erti"ing 9 'o!)d )ead to de'rea"ed $!t!re "a)e", +hi'h ha" a negati.e impa't
on 'a"h $)o+ / < 1 80
1&5& An* t+o rea"ona()e "!gge"tion", "!'h a":
Underta#e on)* part o$ the e=ten"ion" to the re"ta!rant in ?e(r!ar*
De)a* the p!r'ha"e o$ the .ehi')e
Negotiate )onger "ett)ement period" +ith 'reditor" /0
1B mar#"
ACCOUNTING GRADE 11 Paper Page 3 o$ %
QUESTION ( Ba$k re)'$)#*#at#'$ ((" marks !" m#$utes%
&1 Identi$* the TWO item" to (e entered in the O'to(er CR3& /80
Item 3& Rent in'ome R3%00
Item %& Can'e))ed 'he@!e6Donation nr& 10CC $or R100
& Identi$* the TWO item" to (e entered in the O'to(er CP3& /80
Item 8 Dan# 'harge" R850
Item 5 Di"hono!red 'he@!e6De(tor" 'ontro) R50
&3 Prepare the Dan# Re'on'i)iation 4tatement on 31 O'to(er 011& /50
D#+s, D'ts Traders
Ba$k re)'$)#*#at#'$ stateme$t '$ !" N'-em.er ("11
De.#t /red#t
Da)an'e a" per (an# "tatement 1 100
O!t"tanding depo"it 11 300
O!t"tanding 'he@!e" no 558 5 000
No 315 % 00
No 31C 5 800
Da)an'e a" per (an# a''o!nt 10 00
%00 %00
&8 E=p)ain ho+ *o! +o!)d treat 'he@!e no& 31C +hen preparing the $inan'ia)
"tatement /4ee item 50& /0
Add to Dan# /De(it0
Add to Creditor"6 A''r!ed e=pen"e" /'redit0
Or 'he@!e +i)) ha.e (een 'a"hed (* the *ear;end o$ 31 De' or 5 ?e(, there$ore
no entr*&
&5 Drie$)* e=p)ain +h* it i" .ita))* ne'e""ar* to prepare a Dan# Re'on'i)iation 4tatement
ea'h month& 4tate TWO main point"& /0
To a""i"t in interna) 'ontro)6 to a.oid $ra!d6to !pdate re'ord"
to re'on'i)e the (an# a''o!nt in the )edger to the (an# "tatement
to 'he'# the o!t"tanding 'he@!e" and depo"it"
0 mar#"
QUESTION ! Ma$u0a)tur#$g ((! marks (1 m#$utes%
&1& Dire't materia) in.entor* /80
011
3an
1 Da)an'e (6d 130 000
01
1
De'
31
Wor# in
progre""
G3 33B 000
De'
3
1
Dan# CP3
15% 000

Da)an'e '6d 00 000

Creditor" C3
38 000

Pett* 'a"h PC3 1B 000

53B 000 53B 000
010 1
Da)an'e '6d 00 000
ACCOUNTING GRADE 11 Paper Page 8 o$ %
3an
:an!$a't!ring o.erhead" /100
01
1
De'
3
1
Water and
e)e'tri'it*
G3 53 000
01
1
De'
3
1
Wor# in
progre""
G3 118 B00
?a'tor* rent G3
31 00

In"!ran'e G3
C 00

Depre'iation G3 13 500
Con"!ma()e" G3
10 000

118 B00 118 B00

Wor# 9in;progre"" /80
011
3an
1 Da)an'e (6d 5 000
011
De'
31
?ini"hed good"
in.entor*
G3 5C0 B00
011
De'
31
Dire't materia) G3 33B 000 Da)an'e '6d 31 000
Dire't )a(o!r G3 10 000
:an!$a't!ring
o.erhead 'o"t
G3
118 B00

%01 B00

%01 B00
010
3an
1 Da)an'e (6d 31 000
?ini"hed good" /30
01
1
3an
1 Da)an'e (6d
%B 000

01
1
De'
3
1
Co"t o$ "a)e" G3 5%5 B00
De'
3
1
Wor# in
progre""
G3
5C0 B00

Da)an'e '6d C1 000

%3B B00 %3B B00
Da)an'e (6d C1 000
Trading A''o!nt /80
01
1
De'
3
1
Co"t o$ "a)e" G3
5%5 B00

01
1
De'
3
1
4a)e" G3
BB5 5C5

Pro$it E )o"" G3 8% %C5

BB5 5C5 BB5 5C5
Ca)'!)ation"
1 ?a'tor* rent 1 %00 =1 1 !1 (""
?a'tor* in"!ran'e 13 %00 = 1 2 (""
3 Con"!ma()e "tore" !"ed Opening 000 2 P!r'ha"e" B 000
)e"" C)o"ing 1 0001 1" """
8 4a)e" 1 Co"t o$ "a)e" 2 C57 1 5%5 B00 2 8% %C5 1 993 323
QUESTION 1 Et4#)s a$d aud#t#$g ((! marks !" m#$utes%
Re5u#red6
8&1 D!*ing mi)# $rom a $arm "eiFed (* Gra'e :!ga(e&
Dair* ind!"tr* ha" 'o))ap"ed d!e to gro"" neg)igen'e o$ the 'o!ntr* and the agri'!)t!re
(a"ed e'onom* ha" di"integrated&
Gra'e :!ga(e i" gaining a)) the pro$it" and not the peop)e o$ Gim(a(+e& ANH IAAID
POINT GIIEN /3 = 1 %0 /%0
8& The "hare pri'e +i)) drop a" "hareho)der" +i)) "e)) their "hare" and $)ood the mar#et& /0
ACCOUNTING GRADE 11 Paper Page 5 o$ %
The* +i)) )o"e 'redi(i)it* e.en tho!gh the* ha.e moti.ated their a'tion"& The
genera) p!()i' i" .er* anti e.ent" that ha.e ta#en p)a'e in Gim(a(+e& /0
Prod!'t "a)e" +i)) de$inite)* de'rea"e& 4ome peop)e ma* not (e a$$e'ted (* the arti')e, (!t
a" "een, there +a" a )arge o!t'r* and there +i)) (e peop)e +ho +i)) no )onger "!pport
Ne"t)e& /0
8&3 He", the* ha.e >!"ti$ied their rea"on"& The* ha.e (een $or'ed to (!* mi)# on the open mar#et
on a 'ontra't!a) (a"i" $or their $a'tor* in Jarare a" there are a "hortage o$ "!pp)ier"& Thi"
in')!de" mi)# $rom G!"h!ngo Dair* E"tate +hi'h a''o!nt" $or (et+een 10 and 15 7 o$ the
Ne"t)eK" )o'a) mi)# "!pp)*& I$ Ne"t)e had ')o"ed do+n d!e to the ina(i)it* o$ p!r'ha"ing mi)#, it
+o!)d ha.e triggered $!rther $ood "hortage" and parti'!)ar)* >o( )o""e" among their
emp)o*ee"& The*, there$ore, $ee) that the* ha.e done the 'orre't thing& /80
8&8 No, it +o!)d not (e ethi'a) a" Gra'e :!ga(e i" pro$iting per"ona))* and the peop)e in
Gim(a(+e are "ti)) "!$$ering& /0
8&5 Do a hi"tor* 'he'# on "!pp)ier" to determine +ho o+n" the $arm"&
Per"ona))* .i"it the "!pp)ier"&
In"i"t on $inan'ia) "tatement" to determine +here the pro$it" are going&
ANH IAAID POINT /80
8&% An e=terna) a!ditorK" re"pon"i(i)it* i" to e=pre"" an opinion on the $inan'ia) "tatement" (a"ed
on their a!dit in a''ordan'e +ith Internationa) 4tandard" on a!diting& The"e "tandard"
re@!ire that the* 'omp)* +ith ethi'a) re@!irement" and p)an and per$orm the a!dit to o(tain
rea"ona()e a""!ran'e +hether the $inan'ia) "tatement" are $ree $rom materia) mi""tatement&
It i", there$ore, not their re"pon"i(i)it* to mention that Ne"t)e i" (!*ing mi)# $rom $arm" o+ned
(* Gra'e :!ga(e& The a!ditor 'on"ider" interna) 'ontro) to dea) +ith i""!e" "!'h a" the"e
and e=pe't them to e=pre"" an opinion& /30
3 mar#"
QUESTION 3
7ART A
5&1
100 000 : /10 000 9 30 000 2 C0 000 0
0,8 : 1

/0
5&&
The (!"ine"" +o!)d (e'ome higher geared
1C0 000 : /50 000 9 11 00 additiona) intere"t to (e paid0
0,C1 : 1
The )i#e)ihood that the (an# +o!)d )oan the mone* to the (!"ine"" i" great
A" thede(t to e@!it* ratio i" "ti)) +e)) +ith the norm o$ 0,5 : 1 and 1 : 1
/50
ACCOUNTING GRADE 11 Paper Page % o$ %
7ART B
5&3&
Ai@!idit* po"ition ha" +or"ened $rom 010 to 011 $rom ,B:1 to 1,C5:1
Doth '!rrent and a'id te"t ratio are (e)o+ the norm o$ :1 and 1:1
De(tor" are ta#ing t+i'e a" )ong to "ett)e their de(t", 'reditor" are (eing
Repaid in 35 da*" in"tead o$ B0 da*"
En'o!rage de(tor" to pa* +ithin 30 da*" o$$er di"'o!nt" and 'harge intere"t
Di"'o!rage 'redit "a)e" (* p!tting a higher mar#;!p on the"e "a)e"
E=tent 'reditor" pa*ment" to B0 da*"
/50