GAUTENG DEPARTMENT OF EDUCATION

2023 BASELINE ASSESSMENT

ACCOUNTING

QUESTION PAPER
GRADE : 12

Marks: 75

Time: 60 minutes

This question paper consists of 11 pages and formula sheet is attached.

ACCOUNTING BASELINE ASSESSMENT
INSTRUCTION 2

Choose the correct answer from the given information, circle the appropriate alphabet using the
answer sheet provided.

Use the information provided below to respond to Questions 1- 2.

Extract of the Fixed Asset Note:

Vehicles
Cost (1 March 2021) 460 000
Accumulated depreciation (1 March 2021) (396 750)
Carrying value ( 1 March 2021) (i)
Additions (at cost) 510 000
Disposals (at carrying value) 0
Depreciation (ii)
Carrying value (28 February 2022)
Cost (28 February 2022) 970 000
Accumulated depreciation (28 February 2022)

Adjustments
 The business owned two vehicles on 28 February 2022
 The second vehicle was purchased on 1 November 2021
 Vehicles are depreciated at 15% p.a. on cost

1. Calculate (i), the carrying value on 1 March 2021.

A R60 450
B R62 450
C R63 250
D R113 250

2. Calculate (ii), depreciation on 28 February 2022.

A R94 500
B R51 000
C R114 249
D R88 749

Use the information provided below to respond to Questions 3 - 6.

Extract of the Fixed Asset Note:

Equipment
Cost (1 March
Accounting 2021)
Paper One Exemplar 360
Grade 000
10 Exemplar
Accumulated depreciation (1 March 2021) (187 500)
Carrying value ( 1 March 2021) 172 500
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6. An old printer costing R10 000 was sold at a profit of R1 500, the accumulated
depreciation at the date of sale was R7 500.Calculate the selling price of a printer.
A R4 000
B R2 500
C R8 500
D R4 500

7. MJ Transporters suspects that employees are misusing the business vehicles,

maintenance and fuel cost incurred by the business increased in the last two
months. What measures should be put in place to minimise the costs?
A Physical inspection of vehicles after every business trip.
B Install a tracking device on each vehicle
C Record the kilometres of each vehicle before and at the end of a trip.
D All of the above

8. Received R800 from a debtor who was declared insolvent. Calculate a dividend of
60 cents in a rand that must be written off as irrecoverable.
A R480
B R320
C R1 200
D R1 280

9. A debtor, with a credit balance of R1 600 must be transferred to the creditors’

ledger. Choose the correct entry (ies).
Debtors Control Creditors Control
Debit Credit Debit Credit
A - 1 600 -1 600
B +1 600 +1 600
C - 1 600
D + 1 600 + 1 600

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10. An amount of R 1 720 received from a debtor whose account was written off as
irrecoverable last year, was credited to the debtors control account. Correct the
error.
Income statement Balance sheet
Operating expenses Operating income Current assets
A + 1 720 + 1 720
B - 1 720 + 1 720
C + 1 720 + 1 720
D + 1 720 - 1 720

11. Which of the following statements is not regarded as a control measure that
improves collection from debtors.
A. Employ services of an attorney or debt collector
B. Sending of monthly statements to debtors on time
C. Offer discounts for early payment
D. Continue to sell to debtors with overdue account or who have exceeded their
credit limit

Use the information provided below to respond to question 12 and 13.

Extract from Pre- Adjustment Trial Balance on 28 February 2022

Debtors control R94 500
Provision for bad debts (1 March 2021) 3 920

Adjustments
 Write off the amount of R1 500 as irrecoverable
 Credit sales for R900 were not recorded
 Provision for bad debts must be adjusted to 4% of debtors

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12. Calculate the correct balance for Debtors Control on 28 February 2022.
A. R93 000
B. R93 900
C. R92 100
D. R90 580

13. Calculate the provision for bad debts and indicate how it will be recorded in the
Income Statement on 28 February 2022.
A. R3 756 ,operating expense
B. R3 756 ,operating income
C. R164,operating income
D. R3 920 ,operating expense

Use the information provided below to respond to question 14.

Extract from Pre-Adjustment Trial Balance on 28 February 2022

Advertising R50 400

Adjustment

 Advertising consists of a monthly contract with the local newspaper for the entire financial
year. Advertising was increased by R450 per month from 1 December 2021. Advertising was
paid for 11 months only.

14. Calculate the amount owing for advertising.

A. R5 040
B. R4 950
C. R5 400
D. R4 000

Use the information provided to respond to question 15 and 16.

Extract from Pre-Adjustment Trial Balance Trial Balance on 28 February 2022

Debit Credit
Bank Account (unfavourable) R8 900
Bank charges R675

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Adjustment

The February 2022 bank statement was received after the Pre – Adjustment Trial balance was
drawn up. The following must be adjusted:
 Cash deposit fees, R190.
 Interest on unfavourable balance, R 470.
 A direct deposit made by H Nkomo in settlement of his account of R2 400.

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15. Calculate the amount of bank charges that will be recorded in the Income
Statement for the year ended 28 February 2022.
A. R675
B. R180
C. R495
D. R855

16. Calculate the correct bank balance and indicate how it will be recorded in the
Balance Sheet.
A R7 160,current liabilities
B R11 960,current liabilities
C R9 560,current assets
D R11 020, current assets

Use the information provided below to respond to question 17 and 18.

INFORMATION
The loan statement on 28 February 2022 reflected the following:

Loan statement – Gauteng Bank

Balance on 1 March 2021 R 499 800
Repayments during the year (Including interest) R 59 250
Interest capitalised ?
Balance on 28 February 2022 R472 500

Adjustment
15% of the loan balance will be paid in the next financial year.

17. Calculate the interest expense for the year ended 28 February 2022.
A R27 300
B R59 250
C R31 950
D R26 250

18. Calculate an amount that should be recorded as a short-term loan.

A R74 970
B R59 250
C R31 500
D R70 875

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Refer to the information provided below to answer question 19.

Extract from the Pre-adjustment Trial Balance on 30 June 2022
Insurance 15 500

Adjustment
Insurance amount includes an annual premium of R 2 280 paid on 1 October 2021.

19. Calculate the insurance expense for the year ended 30 June 2022.
A R13 220
B R14 930
C R16 070
D R17 780

Refer to the information provided below to answer question 20.

Extract from the Pre-adjustment trial balance on 30 June 2022

Rent Income 174 000

Adjustment

The rent income for July and August 2022 has been received already. The monthly rent was
increased by 10% p.a. effective from 1 April 2022.

20. Calculate the amount for Rent Income that will be recorded in Statement of
Comprehensive Income (Income Statement) for the year ended 30 June 2022.
A R175 000
B R153 200
C R147 600
D R168 000

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Use the following information extracted from the financial records of Jozi Traders to
respond to question 21 and 22.Show calculations to one decimal point where applicable.

The financial year ended on 28 February 2022.

ASSETS LIABILITIES
Non-Current assets 400 000 Non – current liabilities 200 000
Current assets 250 000 Mortgage Loan (10% p.a.) 200 000
Inventories 100 000
Trade and other receivables 95 000 Current Liabilities 140 000
Cash and Cash equivalents 55 000 Trade and other payables 140 000

21. Calculate the solvency ratio.

A 1,9:1
B 4,6:1
C 1,7:1
D 0,6:1

22. Calculate the acid test ratio.

A 1,8:1
B 1,3:1
C 1,1:1
D 0,9:1

Use the information provided to respond to question 23 and 24.

ADDITIONAL INFORMATION
Extract from Income Statement on Trading stock (28 February 2021) 120 000
28 February 2022 Debtors balance (28 February 2021) 105 000
Sales 1 800 000 Total Sales (28 February 2022) 1 600 000
Cost of sales (1 200 000)
Credit Sales % (28 February 2022) 60%
Gross profit 600 000
Operating expenses (400 000)
Operating profit 200 000
Interest expense -
Net Profit 150 000

Adjustment
 The closing sock on 28 February 2022 amounted to R114 000.

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23. Calculate the gross profit on cost sales percentage.

A 33.3%
B 50%
C 40%
D 16.5%

24. Calculate the stock holding period in days on 28 February 2022, use the average
stock.
A 36,5 days
B 34,7 days
C 71,2 days
D 35,6 days

Use the information provided to respond to question 25.

Financial indicators for year ended February

2022 2021
Rate of stock turnover 7,5 times 5,5 times
Stock holding period 39 days 66 days
Operating expenses on sales 34% 39,3%
Average debtors collection period 36 days 30 days
Average creditors payment period 58 days 90 days
Debt equity ratio 0,4:1 0,2:1

25. Refer to the indicators provided above and identify the indicator that is correctly
interpreted.
A Debtors’ collection period has improved by 6 days
B Operating expenses improved from 39,3% to 34%
C The debt-equity ratio has improved from 0,2:1 to 0,4:1
D None of the above

TOTAL MARKS: 75

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GRADE 11 ACCOUNTING FINANCIAL INDICATOR FORMULA SHEET

Gross profit x 100 Gross profit x 100 Net profit x 100
Sales 1 Cost of sales 1 Sales 1

Operating expenses x 100 Operating profit x 100

Sales 1 Sales 1

Total earnings by partner x 100 Net profit x 100

Partner’s average equity 1 Average owners ‘equity 1

Current assets : Current liabilities

(Current assets – Inventories) : Current liabilities

(Trade and other receivables + Cash and cash equivalents) : Current liabilities

Average debtors x 365 Average creditors x 365

Credit sales 1 Credit purchases 1
Average inventories x 365 Cost of sales
Cost of sales 1 Average inventories

Non-current liabilities: Owners’ equity Total assets: Total liabilities

Accounting Paper One Exemplar Grade 10 Exemplar