2 GR 11 June Exam 2018 AB

SURNAME:
NAME:
GRADE 11
ACCOUNTING
JUNE 2018
SPECIAL ANSWER BOOK
QUESTION MARKS INITIAL MOD.
TOTAL
This answer book consists of 15 pages.
QUESTION 1
Copyright reserved Please turn over
Accounting 2 FS/June 2018
Grade 11 Answer Book
1.1 Indicate whether the following statements are TRUE or FALSE.

1.1.1
1.1.2
1.1.3
1.1.4
4
1.2.1 CASH RECEIPTS JOURNAL OF MAKENENG STORES – MAY 2018

Sundry Accounts
Doc Day Details Bank Amount Details
30 Totals 77 521 77 521
1.2.1 CASH PAYMENTS JOURNAL OF MAKENENG STORES—MAY 2018

Sundry Accounts
Doc Day Details Bank Amount Details
30 Totals 67 580 67 580
14
1.2.2 Calculate the Bank Account on 31 May 2018.

5

1.2.3 Bank Reconciliation Statement on 31 May 2018.

DEBIT CREDIT
13
1.3 Creditors Reconciliation Statement and internal control
1.3.1 The bookkeeper, Billy, says it is not necessary for him to prepare
a Creditors' Reconciliation Statement because the creditors send
monthly statements to the business anyway. What would you say
to him? State TWO points
1.3.2
Creditors’ Ledger Statement of account
of Uptown Traders received from

Littletop Suppliers
Balance 31 831 29 210
A
B
C
D
E
F
G
H
17
TOTAL MARKS
65
QUESTION 2
2.1
2.1.1
2.1.2
2.1.3
2.1.4
2.1.5
5

BRICK & BLOCK TRADERS
2.2.1 INCOME STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2018

Sales (1 190 000
Cost of sales (700 000
Gross profit
Other operating income
Commission income 18 400
Rent income (103 850
Bad debts recovered (10 540
Gross operating income

Operating expenses
Water and electricity 34 200
Salaries and wages 102 520
Advertising (20 780
Insurance (14 500
Discount allowed(940
Packing material (13 600
Bank charges (3 210
Bad debts (22 750
Sundry expenses (28 760
Operating profit
Profit before interest expense
Net profit for the year 55
TOTAL MARKS
60

QUESTION 3
3.1 Give the correct concept in each of the cases:

3.1.1
3.1.2
3.1.3
3.1.4
3.1.5 5
3.2.1.1 CURRENT ACCOUNTS

SMITH WESTERN
Salaries
Interest on capital
Primary distribution
Final distribution
Net profit for the year

Drawings
Balance at beginning
Balance at end of year

20
OR

3.2.1.1 CURRENT ACCOUNTS

SMITH WESTERN
Net profit for the year
Salaries
Interest on capital
Primary distribution
Final distribution
Drawings
Balance at beginning
Balance at end of year

20
3.2.1.2 TRADE AND OTHER RECEIVABLES
3.2.1.3 TRADE AND OTHER PAYABLES

Trade creditors
3.2.2 SMITH & WESTERN GUN SHOP

BALANCE SHEET ON 28 FEBRUARY 2018

ASSETS
NON-CURRENT ASSETS
Fixed assets
Fixed deposit
CURRENT ASSETS
TOTAL ASSETS
EQUITY AND LIABILITIES

EQUITY
Capital
Current account
NON-CURRENT ASSETS
CURRENT ASSETS
TOTAL EQUITY AND LIABILITIES
29
TOTAL MARKS
65
QUESTION 4
4.1.1 (a) Acid test ratio
4
(b) Debt : Equity ratio
4
(c) Return on investment in partnership / Return on owner’s
equity
4.1.2 The Current ratio at the end of June 2018 was 3,1 : 1 and in
June 2017 was 4,2 : 1. The owner is of the opinion that the
liquidity of the business is sound. Do you agree? Refer to
two other financial indicators to motivate your answer.
4.1.3 The partnership wants to expand and need to borrow a further

R250 000. Refer to one financial indicator to determine if this
is possible.
4.3.4 Give your opinion whether Donald Duck must be satisfied

with his return on his investment in the partnership. Provide

figures to support your answer.
TOTAL MARKS
25

QUESTION 5: (40 marks; 24 minutes)
5.1.1
5.1.2
5.1.3
5.1.4
5.1.5 5
5.2. FIXED ASSET NOTE TO THE FINANCIAL STATEMENT ON

1 28 FEBRUARY 2018
Land & Vehicles Equipment
Buildings
Carrying value at the
beginning
Cost
Accumulated (0) (315 000)
depreciation
Movements
Additions at cost 0 422 550
Disposals at carrying 0
Value (0)
Depreciation
(0) (13 766)
Carrying value at the

End
Cost
Accumulated depreciation
(0)
26

5.2.
2 ASSET DISPOSAL
2018 2018
Feb Feb
28 28
5.3 Mention two procedures that the business can apply to improve
their internal control over the vehicles.
TOTAL MARKS
40
QUESTION 6
6.1.1
6.1.2
6.1.3
6.1.4
4
6.2.1 GENERAL LEDGER OF GALAXY MANUFACTURERS

WORK-IN-PROGRESS
10
6.2.2 FINISHED GOODS STOCK ACCOUNT
6.2.3 FACTORY OVERHEADS ACCOUNT

15
6.3.1 Calculate the direct material cost per unit.
6.3.2 Calculate the break-even point on 31 May 2018.
6.3.3 Should the owner be happy with the business’ current production

level? Explain shortly.
TOTAL MARKS
45

2 GR 11 June Exam 2018 AB

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SURNAME:

SPECIAL ANSWER BOOK

QUESTION MARKS INITIAL MOD.

This answer book consists of 15 pages.

1.1 Indicate whether the following statements are TRUE or FALSE.

1.2.1 CASH RECEIPTS JOURNAL OF MAKENENG STORES – MAY 2018

1.2.1 CASH PAYMENTS JOURNAL OF MAKENENG STORES—MAY 2018

1.2.2 Calculate the Bank Account on 31 May 2018.

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1.2.3 Bank Reconciliation Statement on 31 May 2018.

1.3 Creditors Reconciliation Statement and internal control

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Copyright reserved Please turn over

BRICK & BLOCK TRADERS

2.2.1 INCOME STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2018

Gross operating income

Profit before interest expense

Net profit for the year 55

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3.1 Give the correct concept in each of the cases:

3.2.1.1 CURRENT ACCOUNTS

Net profit for the year

Balance at end of year

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3.2.1.1 CURRENT ACCOUNTS

Balance at end of year

3.2.1.2 TRADE AND OTHER RECEIVABLES

3.2.1.3 TRADE AND OTHER PAYABLES

3.2.2 SMITH & WESTERN GUN SHOP

BALANCE SHEET ON 28 FEBRUARY 2018

EQUITY AND LIABILITIES

TOTAL EQUITY AND LIABILITIES

4.1.1 (a) Acid test ratio

4.1.3 The partnership wants to expand and need to borrow a further

4.3.4 Give your opinion whether Donald Duck must be satisfied

with his return on his investment in the partnership. Provide

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QUESTION 5: (40 marks; 24 minutes)

5.1 Give the correct concept in each of the cases:

5.2. FIXED ASSET NOTE TO THE FINANCIAL STATEMENT ON

Additions at cost 0 422 550

Carrying value at the

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6.1 Give the correct concept in each of the cases:

6.2.1 GENERAL LEDGER OF GALAXY MANUFACTURERS

6.2.2 FINISHED GOODS STOCK ACCOUNT

6.2.3 FACTORY OVERHEADS ACCOUNT

6.3.1 Calculate the direct material cost per unit.

6.3.2 Calculate the break-even point on 31 May 2018.

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level? Explain shortly.

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