Accounting Control test: March 2020

2020
ACCOUNTING
GRADE 10
CONTROL TEST ONE
DURATION: 1.5 HOURS
INSTRUCTIONS AND INFORMATION
1. You are provided with a question paper and answer sheet
2 This question paper comprises of THREE (3) Compulsory questions.
3 Make use of the time allocation given.
4 Non- programmable calculators may be used.
5 A BLUE/BLACK PEN may be used
6 No tippex allowed

QUESTION MARKS TIME

1 05 05 Minutes
2 61 55 Minutes
3 34 30 Minutes
TOTAL 100 90 Minutes

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 Accounting Control test: March 2020

QUESTION ONE: CONCEPTS (5 marks : 5 minutes )

Match the transaction in column A which best suits the concept in column B. Write down only the
letter of your choice. E.g.1.1 C

COLUMN A COLUMN B
1.1 Debts of the business are ….. A. Capital
1.2 Assets that have a long lifespan, a period exceeding one
year. B. Liabilities
1.3 Objectivity, trust and integrity are good examples of … C. Source document
1.4 Money the owner puts in to start a business D. Fixed Assets
1.5 Where we get information to record transactions. E. Ethics

QUESTION TWO: SUBSIDIARY JOURNALS (61 marks: 55 minutes )

The following information was taken from the books of Forest traders for January 2020. Forest
traders uses a mark-up of 20% on all merchandise sold.

REQUIRED

2.1 Record the following information in the Cash Receipts Journal, Cash Payments (45)
Journal. Ensure that all the journals are closed off at the end of the month.
2.2 Post to the following general ledger accounts:
2.2.1 Cost of sales (2)
2.2.2 Trading stock (6)

2.3 Internal Control and Ethics

Mrs Vilakazi works as an administration clerk who is in charge of collecting cash and
issuing receipts to customers. She also records the transactions and does the banking
in the business.
As an internal auditor you are not happy with the control of cash in this business.

Suggest FOUR internal control measures that the business can put in place to avoid (8)
problems in the future.

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 Accounting Control test: March 2020
INFORMATION:

Transactions for January

01 Owner, Mr D Diamond, deposited R150 000 as capital, receipt no. 309 was issued.
02 Cash sales, R60 000 as per CRR 1.
Received a loan of R12 000 from Tyson Bank the amount will be repaid over a period
of 24 months. The interest rate on the loan is 12% per annum. The first instalment is
due on the 31 of January .It was agreed that the first month’s interest would be paid
on 31 January 2020.
04 Paid Telkom, R750 with cheque no.100. R500 was for the business telephone
account and the balance was for the owner’s telephone account at home.

07 Issued receipt no.310 to Lillian, a tenant, the amount received was R1 400.

08 Cheque no 101 was issued to Blue Wholesalers for stock purchased for R10 000 less
5% trade discount.

11 Transferred R3 000 via EFT into a 6-month Fixed Deposit with Ruby Bank.

18 Received R1 600 from debtor A. Ali in full settlement of R1 800, Rec 311.

30 The bank statement from Ruby Bank showed the following:

Service fees R 100
Cash deposit fee R 80
Interest on current account R 90(Cr)
Card commission R 50
Government levy R 40

31 Paid the first instalment on loan and one-month interest due on the loan, issued
cheque no.103. (check 02 January)

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 Accounting Control test: March 2020

QUESTION THREE :ANALYSIS OF TRANSACTIONS (34 marks :30 minutes)

Analyse the following transactions of Avengers Traders. Avengers Traders uses a mark-up of
3313% for all merchandise sold.
Assume that the bank balance is unfavourable for all transactions.
Example: Purchased stationery for R200 from petty cash.
3.1 Goods costing R3 000 were sold for cash to S Spring.
3.2 The owner took withdrew cash for personal use, R1 500.
3.3 Received R45 000 from Discovery Bank for a fixed deposit that matured. This
amount included interest of R3 000. No entries have been made.
3.4 Bought equipment for cash, R5 000.
3.5 Mayibuye Bank charged Avengers Traders an interest on bank overdraft of R650.

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