2021

ACCOUNTING
GRADE 11
CONTROL TEST TWO
DURATION: 1.5 HOURS
24 JUNE 2021

INSTRUCTIONS AND INFORMATION

1. You are provided with a question paper and answer sheet
2 This question paper comprises of TWO 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 Show workings to earn part-marks

TIME
QUESTION TOPIC MARKS
ALLOCATED
Concepts and Statement of Comprehensive
1
Income 58 52
2 Statement of Financial Position and Notes 42 38
TOTAL 100 90 minutes

This question paper consists of 6 pages

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QUESTION 1: CONCEPTS AND STATEMENT OF COMPREHENSIVE INCOME

(58 Marks;52 Minutes)
1.1 CONCEPTS

Choose the correct word in Column B to match the description in column A. Write only (5)
the correct letter. e.g. 1.1.1 C

Column A Column B
1.1.1 Expenses and income must be recorded in A Partner’s Earnings
the correct time period.
1.1.2 Interest on overdraft is recorded separately B Historical Cost
from other bank charges.
1.1.3 In a partnership, the net profit is appropriated C Partnership agreement
for salaries, interest on capital, bonuses and
the remaining profit is shared.
1.1.4 The business property is recorded at R250 000 D Finance Cost
in the financial statements although its market
value is currently R 1 250 000
1.1.5 A contract between two to twenty persons, E Matching
who combine assets and skills with the aim is
to share profits between the partners.
F Owners’ equity

1.2 STATEMENT OF COMPREHENSIVE INCOME (INCOME STATEMENT)

The information given below was taken from the books of Bambi Traders on 28 February
2021
REQUIRED

Use the information provided to prepare the Statement of Comprehensive Income for the (53)
year ended 28 February 2021.

Grade 11 Controlled Test Two – Question Paper 24 June 2021

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INFORMATION
Extract from Trial Balance of Bambi Traders 28 February 2021
Trading stock 167 900
Fixed deposit: Mulah Bank (5,5%) 240 000
Debtors control 96 500
Provision for bad debts 3 730
Sales 1 190 000
Debtors allowances 42 600
Cost of sales 700 000
Rent income 103 850
Bad debts recovered 10 540
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
Interest on fixed deposit 12 100

ADJUSTMENTS

(i) A credit note for R 35 700 issued to a debtor, dated 28 February 2021, was not
recorded. The goods were placed back into stock. The business maintains a mark-up
of 70% on cost.
(ii) The business made a donation of stock to the value of R 1 200 to a local pre-school
before stock taking, No entry has been made for this transaction.
(iii) A physical stock count on 28 February 2021 revealed the following on hand:
 Trading Stock, R 185 000
 Packing material, R 3 700.
Note that packing material to the value of R 230 was stolen during a burglary
before stock taking. It was not insured, and no entry has been made yet.
(iv) Delivery expenses for February 2021 were not yet recorded, R1 450.The delivery
expenses are included in the sundry expenses.
(v) Insurance amount includes an annual premium of R 2 160 paid on 1 June 2020

Grade 11 Controlled Test Two – Question Paper 24 June 2021

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(vi) Received R480 from a debtor who was declared insolvent. A dividend of 60 cents to
the rand must be written off as irrecoverable.
(vii) An amount of R 1 820 received from a debtor whose account was written off as
irrecoverable last year, was credited to the debtors control account. Correct the
error.
(viii) The February 2021 bank statement was received after the Pre – Adjustment Trial
balance was drawn up. The following must be adjusted.
 Bank charges, R180
 Interest on favourable balance, R 480
 Reversed EFT, R 2 470. This was in settlement of a debtor D. Dube’s
account of R 2 600.
(ix) Provision for bad debts must be adjusted to R 2 580.

(x) Interest on fixed deposit is still owed to the business at the end of the year. There
were no changes in the fixed deposit during the year.
(xi) Rent was increased by R 1005 from 1 July 2020. The rent for March and April 2021
was received.
(xii) Advertising consists of a monthly contract with the local newspaper for the entire
financial year. The contract rate was increased by R160 per month from 1
December 2020. Advertising was paid for 11 moths only.
(xiii) Depreciation for the year amounts to R 14 790.

(xiv) The loan statement on 28 February 2021 reflected the following:

Balance on 1 March 2020 R 333 200
Repayments during the year (Including interest) R 39 000
Interest capitalised ?
Balance on 28 February 2021 R 314 100

58

Grade 11 Controlled Test Two – Question Paper 24 June 2021

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QUESTION 2 : STATEMENT OF FINANCIAL POSITION AND NOTES (42 Marks;38 Minutes)

BILLY BEAN TRADERS.

Use the information from the books of Billy Bean Traders, the business is owned by
R Billy and K Bean. Their financial year ended on 28 February 2021.
REQUIRED:
2.1 Prepare the following notes to the financial statements:
2.1.1 Trade and other receivables (8)
2.1.2 Capital Accounts (7)
2.1.3 Trade and other payables (7)

2.2 Complete only the Asset Section of the Statement of Financial Position (20)
(Balance Sheet).
[Where notes are not required, show calculations in brackets]
INFORMATION
LIST OF BALANCES ON 28 FEBRUARY 2021
Capital account : R Billy (28 February 2021) 750 000
Capital account : K Bean (28 February 2021 600 000
Current accounts (1 March 2020) : R Billy 12 300(Cr)
Current accounts (1 March 2020) : K Bean 18 200(Dr)
Drawings: R Billy 175 000
Drawings: K Bean 110 000
Vehicles (Carrying value at the end of the year) ?
Equipment (Carrying value at the end of the year) 524 100
Loan: Bestie Bank (11% p.a.) 150 000
Fixed deposit: Softie Bank 120 000
Trading stock 270 460
Consumable stores on hand 12 795
Debtors control 84 200
Provision for bad debts 2 105
Creditors control 34 740
Savings account: Softie Bank 60 000
Bank overdraft 4 665
Petty cash 1 250
Accrued Income 10 200
Income received in advance 3 995
Accrued expenses 8 690
Prepaid expenses 8 300
Creditors for salaries 12 500
SARS (PAYE) 2 850

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ADDITIONAL INFORMATION

1. One third of the fixed deposit with Softie bank matures on 31 May 2021.

2. A debtor, with a credit balance of R 1 200 must be transferred to the creditors’

ledger.
3. On 31 August 2020 the partners agreed that R Billy would decrease his capital
by R50 000, and K Bean would increase hers by R50 000.
4. The three delivery vehicles owned by Billy Bean Traders were bought on 1
September 2019, depreciation on vehicles is calculated at 20% p.a. using the
cost price method. The current depreciation on these assets is amounted to
R120 000.

42

TOTAL:100

Grade 11 Controlled Test Two – Question Paper 24 June 2021