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ACCOUNTING GRADE 10
TERM 3
CASE STUDY
2023

MARKING GUIDELINES

QUESTION TOPIC MARKS

Statement of Comprehensive Income 50
1

2 Notes to the financial statements 15

TOTAL 65

65/1.3 = 50

This marking guideline consists of 3 pages.

QUESTION 1

STATEMENT OF COMPREHENSIVE INCOME OF ELLIS FURNITURE SHOP FOR THE

YEAR ENDED 28 FEBRUARY 2023

Sales (1 280 000 – 12 400 – 4 500)  1 263 100

Cost of Sales (640 000 – 3 000)  (637 000)
Gross Profit 8  626 100
Other Operating Income  169 000
Discount received  3 100
Rent income (179 550 – 14 850)  164 700
Bad debts recovered  1 200
Gross Operating Income 8  795 100
Operating Expenses  (418 300)
Water and electricity 35 400
Advertising  30 000
Bad debts (11 300 + 950)  12 250
Salaries (184 000+ 19 000 + 3 000)  206 000
Telephone (17 500 + 2 450)  19 950
Stationery (23 200 - 1 050)  22 150
Insurance (44 000 - 6 300)  37 700
Discount allowed (3 800 – 300)  3 500
Bank charges (2 300 + 400)  2 700
Trading stock deficit (123 400 + 3 000 – 118 250)  8 150
Depreciation  40 500
Operating Profit 27  376 800
Interest income (4 200 + 1 400 + 125)  5 725
Profit Before Interest Expense  382 525
Interest expense (23 100)
Net Profit for the year 7  359 425

50

50
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QUESTION 2

NOTES TO THE FINANANCIAL STATEMENTS

2.1 Inventories
4
Trading stock (310 000 – 8 750) 301 250
Consumable stores on hand  3 725
 304 975

2.2 Owners’ equity

Balance at the beginning of the year  838 750 6

Additional capital contributed 75 000

Drawings (125 000 + 8 750)  (133 750)
Net Profit 195 000
Balance at the end of the year  975 000

2.3 Trade and Payables

Creditors Control 74 800 5

Creditors for salaries 16 000

SARS – PAYE 3 200
Short-term loan 100 000
194 000

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Grade 10 Case Study: 2023 Marking guidelines

August/September