I Page 1 ofS Fist Control Test 2087 education Department: Education REPUBLIC OF SOUTH AFRICA GREENBURY SECONDARY SCHOOL ACCOUNTING: GRADE 11 FIRST CONTROL TEST: 2017 EXAMINER : C, MAHARAJ MODERATOR : A.RAJOO. INSTRUCTIONS TO LEARNERS: This paper consists of 5 pages. Answer ALL questions on the special answer booklet provided. Show all workings so that part marks can be allocated You must attempt to comply with the suggested time allocations ‘Question 4: 45 Marks ; 27 Minutes The topic of this question Is: | Content Bank Reconciliation © CRiand CPi * Bank account in general ledger * Bank reconciliation ‘Question 2: 10 Marks ; 6 Minutes Fs Reconciliation ‘* Creditors ledger with statement of account Question 3: 45 Marks ; 27 Minutes ‘* Calculation of depreciation © General ledger © Internal control Grade: 10Accounting Page 2 of5 First Control Test: 2017 QUESTION ONE : BANK RECONCILIATION AND INTERNAL CONTROL 1d. 1.2. 1.2.4, 1.2.2. 1.2.3, 1.2.4, 1.2.5. 13, 1.3.1. 13.2. 13.3. What is the purpose of bank reconciliation? Indicate whether the following statements are True or False (45 marks; 27 minutes) (2) (5) An internal auditor would want to inspect the Bank Reconciliation Statement at the end of each month. Acredit balance on the bank statement is favourable. Service fees and interest on overdraft are debited to bank charges. ‘Accheque older than six months will be cancelled in the CPJ. A post-dated cheque received from a debtor will be recorded in the CRI. BANK RECONCILIATION ‘You are provided with information taken from the records of Moscow Traders for March 2017. The business is owned by R. Russia Requires Prepare the correct totals for the Cash Receipts Journal and Cash Payments Journal. Prepare the Bank Account in the general ledger for March 2017. Prepare a Bank Reconciliation Statement on 31 March 2017. Information Bank Reconciliation Statement on 28 February 2017 Debit balance as per bank statement 19 200 Outstanding deposit 15 400 Outstanding cheques: “No6O S™~«&YS«S OD le Noi | 4450 | Noa2tt~ Deposit of R 9 200 > Cheque no. 145 for R 7 600 (dated 5 May 2017) © Cheque no. 140 issued to Sanlam for insurance appears in the Cash Payments Journal as 2 840, The amount on bank statement is R 2 140. The bank statement is correct, + Astop order for monthly vehicle instalment for R 3 800 appears on the bank statement only. * An unpaid cheque for R 680 received in settlement of account of R 700 appears only on the bank statement. The cheque was received from a debtor N.Ntull, + Adeposit of R 12 500 was made directly into the current account of the business by a tenant, P-Pillay. * Cheque no. 139 for R 2 650 was issued to Waltons for stationery was lost in the mail, This cheque must be cancelled and replaced with cheque no. 163. ‘* World Bank debited the current of the business with the following: > Interest on debit balances R 140 > Bank charges R 260 * The bank statement shows a favourable balance of R 15 150 on 31 March 2017. Greenbury Secondary Grade: 10 Please TurnoverAccounting Page 4 of 5 First Control Test: 2017 QUESTION TWO: CREDITORS RECONCILIATION (10 marks; 6 minutes) 24. 2.2. E. SRK Traders received a statement of account from a creditor Bollywood Suppliers. The balance on the statement did not agree with the account of Bollywood Suppliers in the Creditors Ledger of SRK Traders. Required : Complete the table in the Answer Book to show how the differences must be treated to reconcile the Creditor’s Ledger Account with the Statement of Account, (3) Write the amounts in the appropriate columns to indicate the increase or decrease with a (+) or (-) with each amount. Total the columns to show the correct balances as at the end of April 2017. List two points for good internal control over creditors. (2) Information : Balance of Bollywood Suppliers in the Creditors Ledger of SRK Traders 9320 Balance on the statement received from Bollywood Suppliers 14670 | ‘A comparison between the Creditors Ledger Account and the statement of account received showed the following differences: SRK Traders entered a discount of R 400 relating to a payment of R 5 000 on 10 April 2017 Bollywood Suppliers did not approve of the discount as the payment was received late. The statement of account reflected returns valued at R912. The creditor's ledger account showed R712. It was established that SRK Traders miscalculated the value of the goods returned, An invoice for R 6 580 received from Bollywood Suppliers was correctly recorded in the Creditor’s Ledger Account. The amount was incorrectly recorded as R 5 780 on the statement, An invoice for R 1 750 was received from Bollywood Suppliers was incorrectly recorded as a debit note in the Creditor’s Ledger. A direct transfer of R 2 450 by SRK Traders was recorded n the Cash Payments Journal on 28 April 2017. The statement of account from Bollywood Suppliers was dated 25 April 2017, Greenbury Secondary Grade: 10 Please TurnoverAccounting Page 5 of 5 First Control Test: 2017 QUESTION THREE: ASSET DISPOSAL AND INTERNAL CONTROL (45 marks; 27 minutes) You are provided with information of Fast Transporters. The financial year ends on 28 February 2017. Required : 3.1, Refer to information A to D. 3.1.1, Calculate the depreciation of the equipment sold on 31 October 2016. (2) 3.1.2, Calculate the TOTAL DEPRECIATION on equipment for the year ended 28 February 2017. (6) 3.2, Prepare the following accounts in the General Ledger. Balance / close off accounts. * Equipment 7) Asset Disposal (10) 3.3. Complete the Tangible Asset note to the Balance Sheet. (14) 3.4. The owner discovered the actual distances travelled far exceed their scheduled points of delivery by 40%. Name three contro! measures that they can introduce to solve the (6) problem, Information : A Part of the land and buildings were sold during the year. B. An additional vehicle was bought on 31 August 2016. €. On 31 October 2016 old equipment with an original cost price of R 90 000 was traded in against new equipment worth R 130 000. The accumulated depreciation on the old equipment was R 60 000 on 1 March 2016. After the trade in, Fast Transporters still owed the creditors R 104 000. D. Note : Tangible Asset TANGIBLE ASSET Land and buildings | Vehicles Equipment Cost 3100000 1200000 510000 Accumulated depreciation - - (420 000) “| Carrying value(beg. of year) 3 100 000 ¥ 240 000 Movements: : - ~ ~ ~ | | Additions at cost - | Casa * - * Disposals at carrying value * 0 _* | Bepredation | Carrying value(end of year) 2.200 000 ¥ * | Cost a 2 200 00 1500 000 * ‘Accumulated depreciation —_ i (606000) | * E. Depreciation: * Vehicles are depreciated at 20% p.a. on carrying value method. + Equipment is depreciated at 15 % p.a. on cost. GREENBURY SECONDARY SCHOOL OEPARTUENT OF COMMERCE H.O,D, MRSC MAHARAJ Greenbury Secondary Grade: 10 & a |Accounting Page 10f6 First Control Test: 2017 education Department: Education REPUBLIC OF SOUTH AFRICA GREENBURY SECONDARY SCHOOL FIRST CONTROL TEST: 2017 ACCOUNTING ANSWER BOOK GRADE 11 NAME OF LEARNER: GRADE: 11 FOR EDUCATORS USE FINAL MARKS, Greenbury Secondary Grade: 11, Please TurnoverAccounting Page 2 of 6 QUESTION ONE: 1.1. Whats the purpose of bank reconciliation? First Control Test: 2017 = 2 12, 5 13.4, CASH RECEIPTS JOURNAL CASH PAYMENTS JOURNAL ‘AMOUNT DETAILS AMOUNT — DETAILS 43 100 PROVISIONAL TOTALS “43 170 PROVISIONAL TOTALS in 24 132. Bank Greenbury Secondary Grade: 11 Please TurnoverAccounting Page 3 of 6 13.3, First Control Test: 2017 BANK RECONCILIATION STATEMENT ON 31 MARCH 2017 Debit Credit 10 Greenbury Secondary Grade: 11 Please TurnoverAccounting QUESTION TWO: 24. Page 4 of 6 First Control Test: 2017 CREDITORS LEDGER STATEMENT OF ACCOUNT BALANCE, 9320 14670 TOTAL, 2.2, List two points for good internal control over creditors. Greenbury Secondary Total Marks, Grade: 11 Please TurnoverAccounting Page 5 of 6 First Control Test; 2017 QUESTION THREE: 3.4.1, Calculate the depreciation of the equipment sold on 310ctober 2017. CALCULATIONS: 7 | ANSWER [ | 2 { 3.1.2, Calculate the TOTAL DEPRECIATION on equipment for the year ended 28 February 2017. CALCULATIONS: ANSWER 3.2. EQUIPMENT | ] ASSET DISPOSAL Greenbury Secondary Grade: 12‘Accounting Page 6 of 6 First Control Test: 2017 3.3. TANGIBLE ASSET Land and buildings Vehicles Equipment Cost 3 100 000 1200 000 510 000 ‘Accumulated depreciation - “(420 000) Carrying value(beg. of year) -—«(| 8100000 Movements: a Additions at cost isposals at carrying value : 0 ¥ Depreciation Carrying value(end of year) 2.200 000 * * Cost 2200 000 1.500 000 7 | Accumulated deprecia =o i (606 000) |e] | 4 Le 3.4, Name three control measures that they can introduce to solve the problem. GREENBURY SECONDARY SCHOOL }EPARTMENT OF COMMERCE H.0.. MRS C MAHARA Greenbury Secondary Grade: At eyAccounting. Page 1 of 6 First Control Test: 2017 education Department: Education REPUBLIC OF SOUTH AFRICA GREENBURY SECONDARY SCHOOL FIRST CONTROL TEST: 2017 ACCOUNTING ANSWER BOOK GRADE 11 NAME OF LEARNER: GRADE: 11 FOR EDUCATORS USE MODERATOR | \ | Greenbury Secondary Grade: 11 Please Tumover‘Accounting Page 2of 6 First Control Test: 2017 QUESTION ONE: aL What is the purpose of bank reconciliation? a » To Wiech POR ERROAS Auld ettesionte a © To Weary Tho hme Bae 2 To detec, PRAuoutewy — AcIUITIES 0 To UPOATE THE = cASH Gouentnis « 1.2. 12.1. | Thuo e 12.2. | Tug Y) 12.3. | Page v zt 42d |e - i _ _ 3 125. Pace 13.1, CASH RECEIPTS JOURNAL CASH PAYMENTS JOURNAL AMOUNT DETAILS AMOUNT DETAILS 43 100 PROVISIONAL Ti 43170 3soo /| Bourton Joo YY | Tusuenyeo ta sao | Rast “Tuame v7 | a 6sov | Strtlowry a 21 Ro / [Bowie curannras 0 eo 60 Fro FEY [ Bank RAE [ar [terme Becerets Tees fbn aso DIMM] | Bacaner ha a1 490 + Bacau ¢h| 10 co al | Torey Panaeott 7” [era] S0 400 - Ta_450 1h RSD ARAL] | Banos MAT © co 7 7 Greenbury Secondary Grade: 11 Please TurnoverAccounting 13.4, Page 3 of 6 First Control Test: 2017 BANK RECONCILIATION STATEMENT ON 31 MARCH 2017 Debit | Credit GR Brus fe Pee Buu Sntemeot _IS (so ¥ CR. OUTST HUD Id dePOSIT eee aoo me FOR, OUFSTANDIIG — Creques: = Mo. ep _ Ho vl) _ Jso_ . 8 boo | tsi _ _l Joy —| (45 ho Y | (b3 2 bso J| eee ao“ } ___t CR, BouMro Bone how) Jo ©00 fe Pe. foe Inet | Ae 34 aso 3t 3s0 Total Marks Grade: 11 Greenbury Secondary Please Turnover‘Accounting Page 4 of 6 First Control Test: 2017 QUESTION TWO: 21. CREDITORS LEDGER ‘STATEMENT OF ACCOUNT BALANCE 9320. | mola) a > TOTAL 18.020 2.2, List two points for good internal control aver creditors. = Ddiuisow 06 Suter 4) | 2 [9 TWo Staiatuter To APEC. oF BmRY Cleats U0 | ") a Total Marks Greenbury Secondary Grade: 11 Please TumoverAccounting Page 5 of 6 First Control Test: 2017 QUESTION THREE: 31. Calculate the depreciation of the equipment sold on 310ctober 2017. CALCULATIONS: Ese ANSWER J L 2 | Joo * IS),, * 4, Go00 A/ I | 3.1.2, Calculate the TOTAL DEPRECIATION on equipment for the year ended 28 February 2017. [ CALCULATIONS: a ANSWER —— | | coup good) | fee | Hew « 180 000 x IS/, x o bg00/ Raw ' S10 O00 20 184 psao V1 | rr bY Ae) | 6 _ prseo} Le 3.2. EQUIPMENT [ite [1 [ees | Ma] Sto crow Ja Jar | Heser Depron lar! 90.0% | og | 2) | CReorro Conran 4os 130.00” fda lao | Bum | aoa a _ 64.00 : bf coo Banoo | Hi] sso E | || LI | 4 | | ‘ASSET DISPOSAL 20| Cea fEawment Jes | 40 ecov’ eet Lay [pau tere ov Veen! 69 «oo __|+ Horr ow $0 Y| | Sco0/ |e eel + 480) a | : | «| Qeorors Gute’ | "ae eo “| _ 48 eo | LI ! (©) 4000 oreaatou “180 coo ~ loon 0 = aeeo Greenbury Secondary Grade: 11 Please TurnoverAccounting Page 6 of 6 First Control Test: 2017 3.3. TANGIBLE ASSET Tandand buildings | Vehicles Equipment Cost 3100 000 1200000 510000 ‘Accumulated depreciation —_ (420 000) a0 C00 7 Carrying value(beg. of year) - 3 100 000 G0 ap” *| (240000) Movements: ~ : ‘Additions atcost : 0 ko ow”* te «00 * Papen tary ae nee joo wo ot (a coy * eT Coy" 18 50D * rying value(end of year) 2200000 SAU to Y*| “a7 SeOY * Cost 2.200000 1500000 = |%SSq mov” + 3.4, Name three control measures that they can introduce to solve the problem. 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