GR 10 TERM 2 WORKBOOK QP

TERM 2
ACTIVITIES BOOK
NAME___________________________________________________CLASS_____
Gr 10 Accounting 2023 T1 Revision 2 Activities
INDEX / CHECKLIST
Revision
Page no.
Term 1 complete ( )
Internal control; Ethics; GAAP 3
Accounting: Cash Transactions 4
Credit transactions 11
BASIC ACCOUNTING PRINCIPLES (RULES)

Dr ASSETS (A) Ct Dr LIABILITIES (L) Ct
Increase by debit Decrease with a Decrease with a debit Increase with a credit
entry credit entry entry entry
+ - - +
Dr OWNERS EQUITY (OE) Ct

Decrease with a debit entry Increase with a credit entry
- +
INCOME ACCOUNTS
Credited
(Income increases OE)
EXPENDITURE ACCOUNTS
Debited
(Expenditure decreases OE)
Internal control; Ethics; GAAP

Activity 1 (Internal Control & Ethics)
Your business has two office workers. They have the following duties:
Rixaka Indy
• Receive cash from customers • Handle customer service and answer the
• Control the cash register phone
• Deposit daily cash receipts • Manage the advertising and marketing
• Issue invoices and credit notes to debtors • Check Trading Stock delivered
• Issue receipts to debtors for their payments • Count stock at the end of each month
• In charge of the petty cash & holds the keys to • Control Fixed assets
the cash box • Count Fixed assets every month
• Record EFTs - she has authorisation to make • Write down the inventory records and
electronic payments complete the fixed asset register
• Process and pay out weekly wages • Control the office keys – she locks up at the
• Prepare all the journals and the ledger end of business every day
accounts
• Prepare the monthly trial balance
REQUIRED:
1. Explain TWO ways in which Rixaka can defraud the business and cover up her crime. (4)
2. Explain TWO ways in which Indy can defraud the business and disguise her crime. (4)
3. Explain how duties could be effectively divided between Rixaka and Indy to improve
(4)
internal control. Supply TWO examples based on the duties listed above.
12
Activity 2 (GAAP)
Show the applicable GAAP principle for each example below:
A A damage claim received from a customer will be paid to her next year. An estimated amount of
R9 000 will be recorded this year.
B Interest on the overdrawn bank account is shown separately from interest on loan.
C The owner owes his sister R5 000 for expenses he incurred during his holiday. This is not shown
in the financial statements of the business.
D When a debtor settles his account, the discount granted must be recorded at the same time.
E Land and buildings are shown in the financial statements as R400 000, although the real estate
agent says that the property is worth twice that amount.
F Trading stock is still shown at a cost price of R20 000, although it can be sold immediately for
R15 000 at a flea market or auction.
6
CASH TRANSACTIONS
Important cash transactions (also in Gr 11 and 12 ):

Receipts Payments
Cash received for sales, services rendered, etc. EFT payments for purchases, expenses, etc.
Debit order and / or Stop order
Sales per: Cash withdrawals (by bank debit cards) for:
Credit card; Debit card; EFT wages, petty cash, change and/or owner's cash
withdrawals
EFTs received for other income (e.g., rent), Cash payments from the petty cash
capital contributions from the owner, etc. Bank charges (excluding interest on overdrafts)
EFTs received from debtors Freight on purchases
Discount granted to debtors EFT payments to creditors
Interest on current bank account Discount received
Fixed deposit expires Interest on overdrafts
Interest on fixed deposit Fixed deposit made
(Mortgage) Loan made (Mortgage) loan repaid
Interest on loan (simple and / or capitalized interest)
Activity 1 (Source documents)

Match the correct source document in COLUMN B with the appropriate transaction in COLUMN A. Write the
correct letter in the Answer book, e.g., 9. L NOTE: Some letters may be used more than once.
COLUMN A COLUMN B
Transaction Source document
1. Credit Sales A Debit note
2. Cash deposited with the bank B Cash register roll
3. Payment for goods purchased C Invoice
4. Debtors pay their debts D EFT
5. Equipment purchased on credit E Credit note
6. Payments to creditors F Receipt
7. Cash sales G Deposit slip
7
Activity 2 (Concepts)
Choose ONE term from the list given that matches the description / statement. Write only the correct term
next to the question number in the Answer book.
GAAP Bad debt Stationery Current Assets

Fixed assets Non-current liabilities
2.1 An example of a non-cash expense

2.2 Borrowed capital
2.3 Possessions of a business that can be used for more than 12 months
2.4 Generally Accepted Accounting Principles (Practices)
2.5 Consumables not yet used at the end of the financial year
5
Activity 3 (Bookkeeping / AOL) (38 marks; 35 minutes)

The information pertains to Jozi Stores. Transactions were taken from their June 2021 records.
REQUIRED:
Analyze each transaction according to the table given in the Answer book. Show an increase with a + and
a decrease with a - Show no effect with a 0.
NB: Accept a favourable bank balance throughout.
Owners’
No. Account debited Account credited Amount Assets Liabilities
equity
3.1. The owner transferred his personal vehicle (value R200 000) to the business as part of his capital.
3.2 The owner used printing paper from the office for his son's school assignment and for home use,
R320.
3.3 Bought trading stock for R50 000 minus 5% trade discount. Made an EFT payment to the provider.
3.4 Sold goods for cash, R21 000. Applied the mark-up policy of 50%.
3.5 Withdraw R1 000 from the current bank account to set up the petty cash account.
3.6 Paid R560 from the petty cash for fuel of the business vehicle.
3.7 A donation of consumable stores, R2 000, to a local playschool was incorrectly credited to Trading
stock. Correct this error.
3.8 Borrowed R70 000 from VBS Bank at an interest rate of 12% p.a.
3.9 VBS Bank capitalised ONE month's interest on the loan (see 3.8).
3.10 Paid the interest on the loan (see 3.9) plus R1 000 capital repayment on the loan per EFT.
38
Activity 4 (AOL) (30 marks; 25 minutes)

The information given relates to MB Stationery Store.
REQUIRED:
Use the table in the answer book to show the double entry in the General Ledger and the effect on the
Accounting Equation for each transaction. The first one was completed as an example.
Assume that the Bank Balance is always favourable.
NOTE: Some details and amounts are already included in the table.
NB: Assets (A) + Expenses (E) + Withdrawals (W) = Capital (C) + Liabilities (L) + Income (I)
Transactions:
Example: The owner transferred R100 000 electronically to the business's Bank Account as his
capital contribution.
1. Buy equipment from Stevens Offices. Pay per EFT, R16 000.
2. Buy stock on credit from a supplier, Bic Ltd, R12 000.
3. Pay R10 000 to Bic Ltd because they have not yet delivered all the stock purchased.
4. Pay R800 for paint that will be used for repairs at the owner's house.
5. Sell goods on credit to R. Ely, a credit customer, R700. (Profit margin, 75%)
6. Transfer R5 000 to LM Bank per EFT as a 2-year investment at 6% interest per annum.
7. Cash sales for the week, ?? The cost of these goods was R24 000. (Profit margin on these goods
was 75%)
8. TL Bank transfers R40 000 per EFT as a loan that will be repaid over 40 months at 14% interest
per annum.
9. The bank statement shows bank charges of R370.
JOURNALS, LEDGER & TRIAL BALANCE

Activity 1 (Missing words)
Complete the statements by writing the missing word (s) in the Answer Book.
1. EFTs received for sale will be in the ... (journal).

2. Creditors will charge… (4 words) if the business does not pay their bills on time.
3. A debtor will be … discount if he pays less than his outstanding debt.
4. A debtor's account that cannot be recovered is written off as a loss, namely ... (2 words).
5. … is used for the small cash payments.
A business can obtain financing for the purchase of property by applying for ... at a bank or
6.
financial institution.
6
Activity 2 (Journals and Ledger) (80 marks; 75 minutes)

The information relates to KJs General Traders for March 2022. KJ sells a variety of goods at a profit margin
of 120%. All sales are cash, by credit / debit card or EFT.
Jay is the owner and Gugu the bookkeeper.
REQUIRED
2.1 Gugu entered the transactions for March 2022 only up to 18 March. She requested your
help with the rest of the entries:
• Some amounts were omitted because Gugu was not sure how to make the entries.
Enter these amounts in the Answer Book indicated by an * (asterisk).
• Use the information provided to complete the Cash Journals for the remainder of
March 2022. (40)
2.2 Post to the General Ledger Accounts as provided in the Answer Book.
Balance the Trading Stock Account only.
NOTE: Enter the opening balances in the ledger accounts. (28)
2.3 Answer the questions as given in the Answer Book. (12)
INFORMATION
Extract from the list of balances / totals on 1 March 2022
Capital R210 000
Withdrawals 36 000
Loan: FBN Bank (9%) 54 000
Fixed deposit (5%) 12 000
Trading stock 80 000
Bank 190 300
Sales 330 000
Cost of sales 150 000
Fee income 50 000
Salaries and wages 110 000
Bank costs 2 500
Insurance 32 000
TRANSACTIONS FROM 20 MARCH 2022:
20 CNA Wholesalers transferred R800 per EFT as a refund for stationery returned.
22 Bought trading stock per EFT from ACB Suppliers for R15 000 less 12,5% trading discount.
24 Cash sales (CRR 17-20) R132 000
25 Received the bank statement from ABA Bank. The following items have not been entered:
• Debit order for insurance to Suredirect, R4 200
• Interest on a favourable bank balance, R50
• Bank charges, R160
• Refund of R2 000 from Suredirect for an overpayment on February 2022's insurance
28 Made an EFT payment on the loan to FBN Bank for R2 800 plus one month's interest.
29 Paid weekly wages, R10 000 (ordinary wages) per cash withdrawal and the monthly salaries,
R20 000 (ordinary salaries) for March 2022 per EFT. Employees received a 22% bonus on their
regular wages and salaries.
80
Activity 3 (Journals & Ledger) (38 marks; 35 minutes)

EQ Stores' bookkeeper omitted some transactions from the journals on June 30, 2021. Journal columns
were totalled, but no posting had been completed.
REQUIRED
3.1 Record the transactions below in the CRJ and CPJ on the answer sheet. Provide your
own document numbers where necessary.
NOTE: Preliminary totals have already been recorded in the journals. (24)
3.2 Post to the selected ledger accounts provided in the Answer Book.
NOTE: First enter the initial balances / totals in the ledger accounts before posting from
the journals. (14)
DO NOT balance or close off the accounts at the end of the month.
INFORMATION:
A. Balances / Total on 1 June 2021:
Debtor’s control R7 200
Creditor’s control 10 400
Fixed deposit: CC Bank 6 000
Loan: GP Bank 80 000
Discount received 750
Interest on overdrafts 650
B. Total: Cash Receipts Journal of EQ Stores - 30 June 2021

Debtors Discount Sundry
Bank Sales Cost of sales
(Receipts) Allowed accounts
23 200 16 000 12 000 5 000 150 2 200
C. Total: Cash Payment Journal of EQ Stores - 30 June 2021

Trading Consumable Creditors Discount Sundry
Bank
Stock stores (Payments) Received accounts
? 19 000 4 500 8 500 600 3 200
D. Transactions still to be entered
1. Received an EFT for R1 500 from debtor, R. Jobela, as part payment on his account. Allowed
a cash discount of 5%.
2. Paid R9 500 per EFT to PN Suppliers for stock purchased. R1 500 covered the delivery cost
of the stock
3. Received the bank statement from SeQure Bank. The following items have yet to be
recorded:
• charges and credit card fees, R350
• interest on bank overdrafts, R120
• An EFT from CC Bank for the fixed deposit that has expired, R6 300. This amount
includes the year's interest.
• a debit order for the monthly instalment for the loan from GP Bank, R2 000. R200 interest
is included in this amount. Interest on loan is capitalised.
38
Activity 4 (Trading Stock Account) (20 marks; 15 minutes)

The incomplete Trading Inventory Account for April 2021 appeared in the General Ledger of Xtra Stores.
REQUIRED
4.1 Provide the correct details or folio references marked (a) to (f). (6)
4.2 The business applies a 50% profit margin on cost price for all sales transactions. Calculate
the total cash sales for the month. (4)
4.3 Identify the incorrect transfer. Explain your choice. (2)
4.4 Calculate the correct balance of the Trading Inventory Account, after correcting the error
(5)
(see 3.3).
4.5 How can the closing balance's accuracy be confirmed? (2)
4.6 In which financial statement will the closing balance appear at the end of a financial year? (1)
GENERAL LEDGER OF XTRA STORES

Dr Trading stock (B7) Cr
2021 2021
Apr 1 Balance b/d 42 200 Apr 30 Cost of sales CRJ 18 700
30 (a) CPJ 23 500 Cost of sales (d) 9 800
Creditor’s control (b) 16 800 (e) CAJ 4 120
(c) DAJ 4 200
Drawings * (f) 1 200
* The owner took goods for personal use

20
CREDIT TRANSACTIONS
Accounting Cycle for credit transactions
Transactions Documents Journal Ledger Accounts
Credit Sales Credit invoice DJ Sales Cost of sales
(issued to Dr Debtors control Dr Cost of Sales
debtors) Cr Sales Cr Trading Stock
Dr Individual debtors
DEBTORS
(in the DL)

Items returned by Credit note DAJ Returns at selling Cost of sales (cost price)
dissatisfied price Dr Trading Stock
customers Cr Cost of Sales
Dr Debtors allowance (ONLY IF items were
Cr Debtors Control returned)
Cr Individual debtors
(in the DL)
Credit purchases Credit invoice CJ Dr All other contra accounts
CREDITORS
of asset items, (received from Cr Creditors Control

suppliers/creditors)
inventory,
Cr Individual creditors (in the CL)
consumables, etc.
Returns to Debit note CAJ Dr Creditors Control
creditors Cr All other contra accounts
Dr Individual creditors (in the CL)
Activity 1 (5 marks)
All the statements below are FALSE. Rewrite the underlined part to make the statement true.
1. Stock sold on credit is recorded in the CJ.

2. The Creditors Control Account has a debit balance at the beginning of a month.
3. The Debtors List total should be more than the final balance of the Debtors Control account.
4. Damaged stationery was returned to a creditor. The business issued a credit note as a source
document as proof of return.
5. Pat, a debtor, complained that the shoes he bought did not fit, but decided to keep them. The
business will lower the selling price. This price reduction will be entered in the DAJ in both
columns.
5
Activity 2 (Journals - Debtors) (25 marks; 20 minutes)

Lucky Star owns a business, Lucky Traders, which buys and sells household accessories.
Goods are sold on credit at a profit margin of 25% on cost.
Debtors list on 1 March 2021:

S. Sardien R3 450
H. Harder R2 890
REQUIRED
2.1 Record the following transactions in the DJ and DAJ.
Close off the journals at the end of the month (13)
2.2 Post to the Debtors’ Ledger accounts as provided in the Answer Book. (8)
2.3 Prepare the Debtors’ list on 31 March 2021. (4)
TRANSACTIONS for March 2021

7 Sold goods on credit to S. Sardien, R1 525. Issued Invoice 201.
10 S. Sardien claimed discount for damaged items, R125. He agreed to keep the items.
Issued credit note 54 to him.
13 Issued an invoice to H. Harder for goods sold to her, R840.
30 H. Harder bought goods on credit, R1 800.
31 H. Harder returned damaged items, R400. Issued a credit note.
25
Activity 3 (Ledger) (25 marks; 20 minutes)
REQUIRED:
Post from the journals below to the General and Debtors’ ledger accounts as provided in the Answer Book.
Close off the Balance Sheet Accounts ONLY.
INFORMATION
A. Extract: CASH RECEIPTS JOURNAL OF ABBA TRADERS - MAY 2021

D Details Bank Sales Cost of Debtor’s Discount Sundry accounts
sales control granted Amount Details
(Total)
10 R. Rex 1 300 1 450 150
15 T. Tenko 825 855 30
20 Cash 3 000 3 000 2 000
26 T. Tenko 600 600
5 725 3 000 2 000 2 905 180
B. Extract: DEBTORS JOURNAL C. DEBTORS ALLOWANCE JOURNAL

- MAY 2021 - MAY 2021
Cost of Debtor’s Cost of
D Details Sales D Details
sales allowance sales
22 R. Rex 350 280 23 R. Rex 150 80
22 T. Tenko 900 720 24 T. Tenko 180 0
28 B. Bach 320 250
1 570 1 250 330 80
25
Activity 4 (Journals and posting Creditors) (35 marks; 30 minutes)
REQUIRED
Record the transactions in the Creditors Journal of LIBERTY Traders for March 2021.
Post to the General AND Creditors Ledger accounts provided in the Answer Book.
INFORMATION
Transactions March 2021

5 Bought trading stock from Eksteen Traders R 15 000. Renumbered their invoice to 19.
13 Bought goods R3 500 and stationery R1 300 on credit from Fishy Traders.
27 Bought merchandise R 7 500 less 10% trade discount, and packaging material R600 from Eksteen
Traders. Received their invoice for R8 100.
31 Buy a computer on credit for R11 500 from Lesedi Traders.
35
Activity 5 (Journals - Creditors) (35 marks; 30 minutes)
REQUIRED
Record the transactions in the Creditors Allowances Journal of Reichs Traders for March 2021 on. Only
post to the Creditors Ledger accounts provided in the Answer book.
INFORMATION
Credit balances on 1 March 1, 2021
Creditor’s control (Cr) 24 650
Y. Sinoko 6 600
J. Gerber 7 250
E. Kruger 4 750
S. Badela 6 050
TRANSACTIONS for March 2021

1 Returned damaged goods back to J. Gerber, R890. (Debit note 43 issued ).
4 Claimed discount for a query on stationery purchased from E. Kruger, R625.
8 Packaging material R800, not according to order, returned to S. Badela.
10 Returned faulty equipment, purchased earlier from Y. Sinoko, with a debit note, R4 700.
15 Returned damaged packaging material, , to J. Gerber, R820.
20 Issued a debit note to S. Badela for R360 trade discount not claimed on purchases.
35
GENERAL JOURNAL
GENERAL JOURNAL - BASICS
• The General Journal (GJ) caters for transactions which do not occur frequently enough
to justify a special journal for it. These entries cannot be made in any other journal.
• A GJ entry shows the account debited, the account credited and a narration, which is
a brief description of the reason for the entry. It supports the internal and audit processes.
• The GJ caters for entries that include debtors and/or creditors – separate Debtors and
Creditors columns
• Only the Debtors Control and Creditors Control columns are totaled. Totals are posted at
month-end.
GENERAL JOURNAL TRANSACTIONS

• Bad debts written off
• Withdrawals of merchandise/other items by the owner
• Interest charged on overdue debtors
• Correction of errors
• Adjustment journal entries at year-end to prepare financial statements (COVERED in Term2 and 3)
BASIC STEPS TO COMPLETE A GENERAL JOURNAL ENTRY

1. Identify the two accounts affected
2. Decide which account to debit and which to credit (Use 'AOL' to help you in this process)
3. The account debited is entered FIRST, with the amount in the debit column
4. The account credited is entered SECOND, with the amount in the credit column.
5. Where a debtor or creditor is involved in the entry, the Debtors or Creditors 'control' column(s) on the
right-hand side ALSO need to show the amount.
Activity 6 (General Journal) (30 marks; 25 minutes)

REQUIRED
Record the following transactions in the General Journal of Larah Traders for February 2022.
Larah Traders apply 100% mark-up on trading stock.
TRANSACTIONS: FEBRUARY 2022

3 Write off the account of I. Owe (a debtor) as irrecoverable, R500
9 B. Good (a debtor) was declared insolvent. His insolvent estate paid a first and final dividend of
20 cents in the rand per EFT (electronic funds transfer), R292. Write off the balance as
irrecoverable.
14 The owner withdrew stock, marked at R1 500, for personal use.
16 Charged debtor A. Andy 10% p.a. interest on her overdue account of 3 months. She owed R600.
19 The owner donated stock, R990 (cost price) to the Children’s Home. It was incorrectly debited to
Drawings.
21 Transferred M. Salah’s credit balance, R400 from the Debtors Ledger to the Creditors Ledger.
24 Received an EFT payment from AB Bank for R11 000, for a fixed deposit of R10 000 that matured
on 30 January 2021. The full amount was entered in the Fixed Deposit account. Correct the error.
30
Activity 7 (General Journal) (70 marks; 60 minutes)

The following information relates to Kolisi Traders for October 2021. Kolisi Traders maintain a gross
profit mark-up of 50% on cost.
REQUIRED:
7.1 Refer to INFORMATION C:
Enter the transactions in the General Journal. Narrations are not required
(25)
7.2 Post from the general journal to accounts in the General Ledger:
• Trading stock
• Creditor’s control
• Stationery
Only balance the Balance sheet accounts. (41)
7.3 Suggest TWO internal control measures that the owner could introduce to ensure that
the trading stock is well controlled. (4)
INFORMATION
A. Balances/Totals in the General Ledger on 1 October 2021:
Trading stock R28 000
Creditor’s control 15 430
Stationery 670
B. Totals of the journals on 31 October 2021:

Cash Receipts Journal
Debtor’s control
Sundry
Bank Discount Sales Cost of sales
Received accounts
allowed
? 8 540 300 19 200 ? 4 500
Cash Payments Journal

Creditor’s control
Sundry
Bank Wages Trading stock Discount
Payments accounts
received
21 040 3 800 ? 7 040 340 4 200
NOTE: Stationery, R330, was paid for on 23 October 2021 and entered correctly
Debtors Journal Debtors Allowances Journal

Sales Cost of sales Debtor’s allowances Cost of sales
15 300 ? 390 200
Creditors Journal
Creditor’s Sundry
Trading stock Equipment Stationery Packaging
control accounts
12 200 7 800 1 600 700 1 300 800
Creditors Allowances Journal

Creditor’s Sundry
Trading stock Equipment Stationery Packaging
control accounts
2 400 900 600 300 200 400
General Journal
Debtor’s control Creditor’s control
Debit Credit
Dr Cr Dr Cr
490 236 630 300
C. Transactions to be recorded on 31 October:

• Siya Kolisi, the owner, took stationery (R130) and trading stock (selling price R960) for personal
use.
• C. Candice, a debtor owing R430, has to be written off as irrecoverable.
• Kolisi Traders failed to pay their account of R 8 820 with NO.1 Dealers on time. Interest for two
months at 10% p.a. must be brought into account.
• Repairs of R20 000 was done to the roof of the store’s building. This was entered in the Land and
buildings account in error.
• B. Patient, whose account was previously written off as bad debts, returned from overseas and
settled his outstanding account of R1 250. It was entered in the Debtors’ control column of the
Cash Receipts Journal in error and posted as such.
70
DEBTORS & CREDITORS RECONCILIATION

Basic debtor | debtors’ control account | debtors list | creditor | creditors control account
concepts creditors list | internal control | credit sales | debtor’s allowances | discount allowed
debtors reconciliation | bad debts | discount received | interest on overdue accounts
Activity 1 (Debtor’s reconciliation) (25 marks; 20 minutes)

The information relates to Baron Traders. They allow debtors 30 days credit. Some errors and omissions
were not recorded in the Debtors control account and Debtors List below during August 2021.
REQUIRED
1.1 Prepare the CORRECTED Debtors control account in the Workbook. (16)
1.2 Correct the information in the Debtors List and calculate the correct total. (9)
NOTE: The balance on 31 August on the corrected Debtors control a/c must be the
same as the correct total of Debtors List on 31 August 2021.
INFORMATION
A INCORRECT DEBTORS CONTROL ACCOUNT FOR AUGUST 2021
DEBTORS CONTROL ACCOUNT
2021 2021 Bank and
Aug 1 Balance b/d 16 088 Aug 31 Discount Allowed CRJ 7 880
31 Bank (R/D) CPJ 600 Balance c/d 16 968
Sales DJ 8 888
24 848 24 848
2021
Sep 1 Balance b/d 16 968
B INCORRECT DEBTORS LIST ON 31 AUGUST 2021
G. Smith 4 146
A. Brown 3 065
C. Black 4 380
L. White 4 145
15 736
C Additional information
• G. Smith’s balance was undercast by R1 000
• An invoice sent to C. Black, R400 has not yet been entered in any journal, nor posted to
a ledger account
• The Sales column in the Debtors Journal was undercast by R500.
• An invoice, R700 issued to A. Brown for goods sold, was entered in the Debtors
Journal, but not posted to A. Brown’s account in the Debtors Ledger.
• The bookkeeper did not post the Debtors allowances total of R760 in the DAJ to the
general ledger.
25
Activity 2 (Debtor’s reconciliation - calculation) (20 marks; 15 minutes)

The information relates to Vredenburg Traders for October 2021. The bookkeeper discovered some
errors included in the control accounts; therefore, the Debtors control and Debtor’s list total do not
correspond.
REQUIRED
2.1 Calculate the correct balance of the Debtors Control account and the correct total of the
Debtors List on 31 October 2021. Use the table in the Workbook. (15)
2.2 The bookkeeper wants to improve the payment received from debtors. Name TWO
measures she can introduce to encourage the debtors to settle their accounts on time. (2)
2.3 Suggest THREE control measures that the bookkeeper can introduce to prevent debtors
outstanding debt being written off. (3)
INFORMATION
Balance and total on 31 October 2021
Debtors control account R9 933
Total of the Debtors list R9 442
ERRORS AND OMISSIONS

A. The total of the Sales column in the DJ was overcast by R100
B. An amount of R95 in the Debtors’ column in the CRJ was not posted the debtor's account in the
Debtors ledger.
C. A credit note issued for R28 was not entered at all.
D. The total of the Debtors allowances column in the DAJ, R243, was posted to the debit side of the
Debtors Control Account
20
Activity 3 (Creditors reconciliation - calculation) (10 marks; 10 minutes)

The closing balances of the Creditors Control account and the Creditors List of BOB Stores did not
correspond on 31 May 2021.
REQUIRED
Calculate the correct Creditors Control account balance and the total of the Creditors List. Use the
table in the Workbook to take the errors and omissions into account and show your calculations.
Indicate an increase with (+) and a decrease with (-) (10)
HINT: A credit entry will in increase the balance/total and a debit entry will decrease the
balance/total
INFORMATION
Incorrect balance / total on 31 May 2021:
Creditors Control R16 740
Creditors List R19 260
Errors and omissions to be considered

3.1 The Creditor’s list was undercast by R1 000
3.2 The balance of the Creditor’s Control account was overcast by R100
3.3 The Creditor’s column in the CJ was undercast by R300.
3.4 An invoice, R1 760 has not yet been entered in the Creditor’s Journal.
3.5 Discount, R120 was not entered in the account of creditor, JJ Suppliers.
3.6 A debit note for R1 600 was correctly entered in the correct journal but posted as credit
purchases in the individual creditor's account.
10
Activity 4 (Creditors reconciliation) (22 marks; 15 minutes)

The information below relates to Augsburg Traders for September 2021. Some information has been
entered in the tables in the Workbook and has to be included in the final totals.
REQUIRED
4.1. Explain why the Creditors Control account balance and the Creditors list total should be
equal. (2)
4.2. Refer to Information A and C:

• Show corrections to the Creditors Control account in the table provided in the
Workbook.
• Add both columns and calculate the correct Creditors Control balance on (8)
30 September 2021
NOTE: Use only positive figures in the debit or credit columns.
4.3. Refer to Information B and C:

Complete the Creditors List and calculate the correct total on 30 September 2021.
NOTE: Show workings in brackets next to each creditor's name. (12)
INFORMATION
A. Incorrect Creditors Control account on 30 September 2021
Dr Creditors’ control B5 Cr
2021 Bank and discount 2021
Sep 30 CPJ 45 300 Sep
1 Balance b/d 20 817
received
Tot. returns &
CAJ 10 662 30 Credit purchases CJ 64 050
allowances
Journal debits GJ 5 280 Journal credits GJ 1 950
B. Incorrect Creditors List on 30 September 2021

CREDITOR DEBIT CREDIT
Welsh Stores 8 665
Loubser Stores 3 343
Lawrence Traders 8 997
CJ Motors 5 360
Mbekwa Traders 350
350 26 365
C. ADDITIONAL INFORMATION
1. The total of the Creditors Control column in the CPJ was undercast by R2 520.
2. The Creditors Control total in the CAJ was overcast by R60.
3. An invoice, R2 500 received from Loubser Stores was posted to the account of Lawrence
Traders in the Creditors Ledger.
4. Augsburg Traders decided to transfer the account of Mbekwa Traders to the Debtors Ledger.
No entry has been made in the General Journal.
5. An invoice for R3 600 for goods bought on account from Welsh Stores was incorrectly entered
in the Creditors Journal as R6 300
6. Vehicle parts, R1 450, were returned to CJ Motors. This was correctly recorded in the CAJ, but
posted to the account of CJ Motors as credit purchases.
7. Augsburg Traders buy goods from and sell goods to Welsh Stores. The debit balance of R300
on Welsh Stores’ account in the Debtors' Ledger must be transferred to their account in the
Creditors' Ledger. No entry has been made yet
22
TERM 2
WEEK 6 & 7:
SALARIES & WAGES
WEEK 8 & 9:
YEAR-END
ACCOUNTING
PROCEDURES
Gr 10 Accounting 2022 T2 Revision Activities
INDEX / CHECKLIST
Revision
Page no.
Term 2 complete ( )
Salaries and wages 3

Year-end adjustments 8
Final accounts 10
2
SALARIES AND WAGES
ACTIVITY 1 (Concepts) (10 marks; 6 minutes)
Match the term in Column A with the explanation in Column B.

Write only the correct letter next to the number (e.g. 1.1 - B)
COLUMN A COLUMN B
1.1 Net Wage A Earn wages at higher rate per hour
1.2 Gross Wage B Tax deducted from wages
1.3 Deductions C To improve the skills of the workers
1.4 Contributions D Amounts subtracted from the wages that the
employer pays
1.5 PAYE E Total wage before any subtractions
1.6 Medical aid fund F Unemployed workers can earn an income for
a period of time
1.7 Pension fund G Amounts paid by the employee over and
contributions above the wage costs
1.8 Staff Fund H Wage after deductions
1.9 UIF I Paid to ensure an employee and his family
have access to quality health care.
1.10 Overtime J This will become a monthly income for a
person upon their retirement
3
ACTIVITY 2 (Wage calculations) ( 25 marks; 15 minutes)
Deon Martin is a spray painter in a panel beater shop. Details of his earnings for the
week ending 8 April 2022.
REQUIRED:
2.1 Calculate Deon’s net wages for the week. Show all workings. (11)
2.2 Calculate the employer’s contribution for the week. (6)
2.3 Calculate the total amount that the business will submit to the Medical Aid Fund on (4)
behalf of Deon Martin for the month of April 2022. (4 weeks)
2.4 Why would it not be possible to accurately estimate the total tax amount due to (4)
SARS on behalf of Deon Martin?
INFORMATION:
Hours worked 52
Normal time hours per week (basic wage) 40
Normal time rate (per hour) R130
Overtime rate (per hour) 1 ½ times normal
rate
Deductions from employee’s wages:
SARS - PAYE 20% of gross
JB Pension Fund 7.5% of basic
Bonita Medical Aid Fund R280
Unemployment Insurance Fund 1% of basic
Union Fees R16 per week
Employers’ contributions on behalf of employees:
JB Pension Fund 10% of basic
Medical Aid R1,50 for every R1
UIF 1% of basic
Skills Development Levy 1% of basic
4
ACTIVITY 3 (SALARIES) (30 marks; 18 minutes)
3.1 SALARY SCALE [10]
Gwen Koen received her appointment letter from Mario Jewellers.

She was given the following salary scale.
156 000 x 16 500 – 205 500 x 18 900 – 243 300
3.1.1 Calculate Gwen’s monthly salary in her first year of employment. (2)
3.1.2 What will her annual salary be in her third year of employment? (4)
3.1.3 What will her monthly increase be in her sixth year of employment? (2)
3.1.4 How many years would she work before she reaches R243 300? (2)
3.2 SALARY ADVICE: CALCULATIONS [20]
Mr Beyers is the Human Resources manager at High End Traders. Neil Brydon
has been appointed as the Junior Clerk in the Purchasing Department.
He commenced work on 1 April 2021.
REQUIRED:
3.2.1 Complete the Salary Advice of Neil Brydon on 30 November 2021. (13)
3.2.2 Calculate the total salary expense of the business with regards to Neil Brydon,
inclusive of all benefits for November 2021. (7)
INFORMATION:
• Neil earned R198 600 p.a. for the current year.
• All employees received a production bonus of 40% of their basic salary

during November each year.
• Deductions / contributions:
Deductions From employee’s salary Employer’s contribution
Pension fund 8% of basic salary R2 for every R1 contributed by
the employee
SARS: PAYE 16% of taxable income
UIF 1% of basic salary 1% of basic salary
Medical Aid R1 200 per month Rand-for-Rand
• The employer also contributes 1% of the employees’ basic salary to the
Skills Development Levy.
5
ACTIVITY 4: Analysis of Salaries and Wages transactions (24 marks; 14 minutes)
The transactions below were extracted from the records of Cleo Traders.
REQUIRED:
Analyse the transactions according to the headings as indicated on the table provided.
Assume that the bank balance is favourable unless indicated otherwise by the
transactions.
TRANSACTIONS:
(a) Employees’ deductions for SARS: PAYE extracted from the Salaries Journal
totaled R13 670.
(b) The Wages Journal showed a total of R9 870 for Pension Fund contributions of
the employer.
(c) Total Skills Development Levy from the Wages Journal was R345.
(d) The total Medical Aid deductions from the Wages Journal on behalf of
employees was R2 520.
(e) An EFT payment was made to pay the UIF total amount due R324.
(f) Paid the net amounts due to employees in respect of the week’s wages,
R43 600.
The bank account balance was overdrawn at this stage.
6
ACTIVITY 5: SALARIES JOURNAL AND LEDGER ACCOUNTS (23 marks; 14 minutes)
The information given below relates to CC Traders

You are required to:
Refer to the ledger accounts shown below from CC Traders and answer the questions that follow.
C Carelse is the manager and the only employee
DR CREDITORS’ FOR SALARIES CR

2022 2022
Jan
31 ? CPJ 7 120 Jan
31 ? SJ 7 120
DR MEDICAL AID FUND CR

2022 2022
Jan
31 Bank ? ? Jan
31 Salaries SJ 420
? SJ 560
DR PENSION FUND CR
2022 2022
Jan
31 Bank ? 1 200 Jan
31 ? SJ 600
Pension Fund Contributions SJ 600
DR SARS: PAYE CR
2022 2022
Jan
31 Bank CPJ ? Jan
31 ? SJ ?
DR SALARIES CR
2022
Jan
31 ? SJ 10 000
QUESTIONS
5.1 Provide the folio for the entry of R1 200 on the debit side of the Pension Fund account. (1)
5.2 How much was deducted from the employee’s salary in respect of Medical Aid? (1)
5.3 How much was contributed on a Rand to Rand basis, by the business on behalf of the (3)
employee to the Medical Aid Fund?
5.4 How much was deducted from the employee’s gross salary in respect of PAYE if there are no (5)
other deductions?
5.5 Calculate the rate of PAYE deduction. Use amount calculated above. (5)
5.6 Calculate the total operational expense in respect of salaries for the month of January 2020. (4)
5.7 Provide the contra-account details for the following entries: (4)
5.7.1 R7 120 on the debit side of the Creditors for Salaries account.
5.7.2 R560 on the credit side of the Medical Aid account.
5.7.3 R7 120 on the credit side of the Creditors for Salaries account.
5.7.4 R10 000 on the debit side of the Salaries account.
7
YEAR-END ADJUSTMENTS & FINAL ACOCUNTS
Basic GAAP principles | financial year | gross profit | net profit | income (revenue) expenses | adjustments
concepts depreciation | accrued income (receivable) | income received in advance (deferred) | accrued expenses
(payable) | prepaid expenses | trading stock deficit | consumable stores on hand | pre-adjustment trial balance
| post-closing trial balance | final accounts | financial statements
FIXED ASSETS
ACTIVITY 1: CONCEPTS (5 marks; 3 minutes)
Match the information in Column A with Column B. Write only the letter next to the
numbers in the Answer Book.
COLUMN A COLUMN B
1.1 Prudence concept A This is an example of a
‘negative asset’
1.2 Depreciation B Depreciation is calculated on
cost price
1.3 Fixed instalment method C An example of a ‘non-essential’
expense
1.4 Accumulated depreciation on D GAAP principle applicable
equipment when fixed assets are
depreciated
1.5 Diminishing balance method E An example of a ‘non-cash’
expense
F Depreciation is calculated on
carrying value.
8
ACTIVITY 2: Tangible/Fixed asset note (38 marks; 23 minutes)
The following information was extracted from the books of Mickey Stores for the
financial year ended 30 June 2021.
REQUIRED:
2.1 Briefly explain why fixed assets like vehicles and equipment are depreciated but (2)
not appreciated.
2.2 Calculate the depreciation on vehicles on 30 June 2021. (7)
2.3 Calculate the depreciation on equipment on 30 June 2021. (8)
2.4 Prepare the note “Tangible/fixed assets” as part of the notes to the financial (19)
statements.
2.5 After the extensions and repairs were done to the building, the building was
valued at R500 000.
2.5.1 What amount will the business put in the financial statements? (1)
2.5.2 Which GAAP principle will you apply? (1)
Information:
1. Some balances on 1 July 2020 in the General Ledger:
R
Land and buildings 240 000
Vehicles 190 000
Equipment 56 000
Accumulated depreciation on vehicles 28 500
Accumulated depreciation on equipment 5 600
2. Additional information:
• An additional storeroom was built, R50 000 and repairs done to the
building, R15 000. Cassiem Builders were paid via EFT.
• The business bought a computer and printer for the office for
R28 000 on 1 March 2021. Installation fees amounted to R2 000.
• A vehicle was bought on credit on 1 October 2020 for R160 000.
• Depreciation must be written off as follows:
• On vehicles at 15% p.a. on diminishing balance method
• On equipment at 10% p.a. on the cost price method.
9
ACTIVITY 3: Depreciation, Ledger, GAAP (25 marks; 15 minutes)
The information below was extracted from the books of Miley Traders. Their
financial year ends on 28 February each year.
REQUIRED:
3.1 Using the information provided, you are required to draw up the following
accounts. Balance/close off the accounts on 28 February 2022.
• Vehicles (7)
• Accumulated depreciation on vehicles (9)
• Depreciation (6)
3.2 Which GAAP principle is being applied when we depreciate assets at the end of
the financial year? Explain your answer. (3)
INFORMATION:
(a) The following balances appeared in the books on 1 March 2021:
Vehicles 640 000

(b) The transactions below took place during the course of the year and have not
been recorded.
• A new delivery vehicle costing R360 000 was bought on account from
Freda Motors on 31 July 2021.
• The business decided that it was working out too expensive to use the
delivery vehicle to make smaller deliveries. A scooter, costing R60 000,
was bought for cash on 28 February 2022.
• You are required to depreciate vehicles at the end of the financial year.
Vehicles are depreciated at 20% p.a. on diminishing balance.
• Depreciation on equipment amount to R36 000 for the financial year.
10
FINAL ACCOUNTS & ADJUSTMENTS
ACTIVITY 1 (GAAP Principles) (6 marks; 4 minutes)

Match the GAAP principles in Column A with the examples provided in Column B. Write
only the letter (A-G) next to the numbers (1.1-1.6) in the Workbook, e.g. 1.1. H.
COLUMN A COLUMN B
1.1 Matching A Interest on overdraft is shown separately from other bank
charges.
1.2 Prudence B Business letterheads (stationery) are printed for two years
in advance; it is recorded as stationery on hand
1.3 Going concern C The tenant has paid R52 000, which includes rent for one
month of the following year. Only R48 000 is recorded in the
statement of comprehensive income.
1.4 Historical cost D The owner's cellphone costs are paid by the business but is
entered in the records as drawings.
1.5 Business entity E Vehicles are always depreciated at a % on cost
1.6 Materiality F Property is recorded at R5 million in the financial

statements, but the market value is R8 million
G Consumable stores, R6 000, must be written off as it cannot

be found in the storeroom.
11
ACTIVITY 2: YEAR-END PROCEDURE AND ADJUSTMENTS (25 marks; 15 minutes)
The adjustments below was taken from the books of Kalp Traders. The financial year
ended on 28 February 2022.
REQUIRED:
2.1 Calculate the amount of the adjustment. (9)
2.2 Show the double entry and the effect on the Accounting Equation. (16)
ADJUSTMENTS:
(i) The Commission income figure on the Pe-adjustments Trial Balance on

28 February 2022 was R32 650. This figure is only 90% of the total
commission income earned by the business for the year.
Show the adjustment for the amount still to be received at year-end.
(ii) The Rent income figure on the Pre-adjustment Trial Balance on 28 February
2022 was R33 400. The tenant has rented premises from us as from
1 July 2021. The monthly rental was increased by R500 as from
1 January 2022. The tenant is 1 month in arrears with his rent.
(iii) The water and electricity account of R2 100 for February 2022 had not yet
been paid at the end of the financial year.
(iv) The pre-adjustment Trial Balance showed the balance of the Trading stock
account to be R65 700. A stock take at year-end revealed that R1 500 trading
stock was missing.
12
ACTIVITY 3: FINAL ACCOUNTS (44 marks; 26 minutes)
The inexperienced bookkeeper of Ramplin Stores prepared the Profit and Loss
account for year ended 30 June 2021. As the internal auditor you discovered that
certain year-end adjustments were not taken into account.
You also noticed some errors.
REQUIRED:
3.1 Prepare the Trading account on 30 June 2021 to reflect the correct Sales and (8)
Cost of sales figures.
3.2 Prepare the correct Profit and Loss account on 30 June 2021. (36)
INFORMATION:
The Profit and Loss account below was prepared by the inexperienced
bookkeeper of Ramplin Stores.
GENERAL LEDGER OF RAMPLIN STORES

FINAL ACCOUNTS SECTION
2021 Salaries and 2021
Jun 30 wages 96 700 Jun 30 Trading 386 900
account
Telephone 12 360 Rent income 78 000
Depreciation 16 000 Discount
received 1 450
Employer’s
contributions 7 700 Vehicles 160 000
Discount Interest on
allowed 980 fixed deposit 4 050
Insurance 15 120
Sundry 28 760
expenses
Net profit 452 780
630 400 630 400
13
The following have not been considered:

(a) The gross profit was correctly calculated using the profit mark-up of 50% on cost.
However, the bookkeeper did not take the following into account:
Merchandise valued at R7 800, had been returned by a debtor on 30 June 2021.
(b) Transactions involving debtors, not recorded, included:

• Bad debts to be written off R800
• A discount allowed of R120 on a late payment must be cancelled.
(c) The telephone account for June 2021 was received but not yet paid, R560.
(d) Rent income includes the rent for July 2021. The rent amount was constant during
the financial year.
(e) The insurance includes the total amount paid up to 31 August 2021.
(f) The salary of a clerk on leave was not recorded. Details of her salary:
Net salary Deductions Employer’s
contributions
R13 800 R2 340 R1 780
(g) The loan statement was received but not recorded.

Details of the statement is as follows:
Balance on 1 July 2020 R220 000

Repayments for the year (including 46 200
interest)
Interest capitalised ?
Balance on 30 June 2021 193 300
(h) Interest on the fixed deposit of R90 000 at 6% p.a. was outstanding for the year
ended 30 June 2021.
(i) The new vehicle was purchased on 1 July 2020. The depreciation relates to this
vehicle only. Depreciation on the original vehicle (cost R320 000) was not
recorded. Depreciation on vehicles is provided at a fixed percentage on cost.
14
ACTIVITY 4 (35 marks; 21 minutes)
The information was taken from the records of Glyn Traders. The financial year ended
on 28 February 2022.
REQUIRED:
4.1 Prepare the Trading Account (8)
4.2 Prepare the Profit and Loss account (27)
INFORMATION:
EXTRACT FROM THE TRIAL BALANCE ON 28 FEBRUARY 2022
Debit Credit
Balance Sheet Section
Capital 665 400
Fixed Deposit: ABC Bank (7% p.a.) 60 000
Bank 97 600
Loan: FNB Bank (14% p.a.) 180 000
NOMINAL ACCOUNTS SECTION
Sales 1 560 000
Cost of sales ?
Debtors allowances 16 400
Rent income 164 800
Interest on fixed deposit 5 100
Discount received 1 900
Water and electricity 43 200
Advertising 28 000
Bad debts 12 300
Salaries 196 000
Telephone 16 700
Stationery 19 800
Insurance 56 000
Interest on loan ?
Discount allowed 2 300
Bank charges 4 200
15
Adjustments and additional information:
A No entry was made for a credit note issued to a debtor, A. Brittow, for stock
returned, R5 000. These goods were marked up at 60% on cost price. The
goods were placed back into stock.
B According to a physical stocktaking the following stock was on hand:
• Trading stock R135 000

• Stationery R 2 300
C A debtor, IM Sorry, who owes R900 must be written off as irrecoverable.
D The telephone account for February 2022 has been received but not yet paid,
R 3 100.
E An annual insurance premium of R8 400 was paid on 1 October 2021.
F The rent was received up until April 2022. The rent was increased by 10% on
1 January 2022.
G The fixed deposit was invested on 1 March 2021 at ABC Bank. The interest was
received for 9 months only. Provide for the outstanding interest.
The loan statement received form FNB Bank reflected the following on
28 February 2022:
Balance on 1 March 2021 R210 000

Interest (capitalised) ?
Instalments including interest R65 000
Balance on 28 February 2022 R180 000
H Provide for depreciation of R37 400.
I An employee has been omitted from the Salaries Journal of February 2022.
His details are as follows:
Gross salary Deductions Employers’ Net Salary

contributions
? 7 000 3 600 15 600
N.B.: Employer’s contributions are added (recorded under salaries
and wages)
16
MOPANI EAST DISTRICT
ACCOUNTING
GRADE 10
ACCOUNTING
ADDITIONAL QUESTION BOOK
TERM 1 & 2 CONTENT
NAME_________________________
THIS BOOKLET SHOULD BE USED IN

CONJUNCTION WITH THE DISTRICT
WORKBOOK FOR TERM 2
Accounting – Grade 10 2 Questions
QUESTION 1: GAAP AND ACCOUNTING EQUATION
REQUIRED:
1.1 Match the GAAP Principles in COLUMN A with the correct explanations in COLUMN B.
Write only the letter (A – F) next to the question number (1.1.1 – 1.1.5) in the
ANSWER BOOK.
COLUMN A COLUMN B
1.1.1 Business Entity A Income and expenses incurred to
generate that income are recorded in the
same accounting period.
1.1.2 Historical Cost B Financial statements are prepared
conservatively.
1.1.3 Matching Principle C Assets are recorded at their original cost.
1.1.4 Going Concern D Financial statements are prepared with
the assumption that the business will
continue in the future.
1.1.5 Prudence E Transactions that do not have significant
effect on the outcome of the business’
financial results are not recorded if it
requires money to do so.
F The personal affairs of the owner must
be kept separate from that of the business
(5)
1.2 RAMAHODI TRADERS
The given information relates to Ramahodi Traders for 31 May 2018.

REQUIRED:
1.2.1 Show effects of the following adjustments on the Accounting
Equation.
ADJUSTMENTS:
A. The owner, R Ramahodi, donated stationery to the charity welfare,
selling price R1 650.
B. Sold goods for cash, R660 (Cost of Sales R440)
C. Purchased goods on credit from Gallileo Suppliers, R3 740.
D. S Mateka, a debtor, paid his full account of R1 100 by EFT 111 of
R960, R140 discount allowed.
E. Zumba Traders owes R500 and was declared insolvent, his estate
paid 60 cents in the rand, the rest must be written off as irrecoverable. (27)
32
Please turn over

QUESTION 2: LEDGER ACCOUNTS AND INTERPRETATIONS

(50 marks; 30 minutes)
The following information appeared in the books of Tello Traders for May 2018.
All goods are sold at a profit mark-up of 50% on cost.
REQUIRED:
2.1 Post to the following accounts in the General Ledger:
• Bank (7)
• Debtors Control (12)
• Cost of Sales (9)
INFORMATION:
A. Balances and totals on 1 May 2018:
R
Bank (Dr) 13 550
Debtors Control 21 678
B. Totals from the journals on 31 May 2018:

DEBTORS CONTROL
COST OF SUNDRY
BANK SALES DISCOUNT
SALES RECEIPTS ACCOUNTS
ALLOWED
99 999 62 222 41 482 22 222 3 333 15 555

CREDITORS CONTROL
TRADING SUNDRY
BANK WAGES DISCOUNT
STOCK PAYMENT ACCOUNTS
RECEIVED
102 300 65 400 2 450 23 950 2 785 15 000
Debtors Journal Debtors Allowances Journal

COST OF DEBTORS COST OF
SALES
SALES ALLOWANCES SALES
24 600 ? 6 600 4 400
General Journal
GENERAL LEDGER DEBTORS LEDGER CREDITORS LEDGER
DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
1 234 246 1 212 4 321
Please turn over

2.2 ABC FURNISHERS

You are provided with the Creditors Control Account which appeared in the
Ledger of ABC Furnishers for May 2018. It is their policy to try to settle
creditors' accounts as quickly as possible even though the creditors grant 30
days’ credit.
REQUIRED:
Study the following account and answer the questions that follow.
CREDITORS CONTROL
2018 Bank and 47 000 2018 Balance b/d 28 000
30 CPJ 1
May discount May
Sundry 6 900 Sundry CJ 34 500
accounts / accounts /
CAJ
Total returns Total
purchases
Sundry 200 Sundry GJ 500
GJ
accounts accounts
Balance c/d 8 900
63 000 63 000
2018 1 Balance b/d 8 900
June
QUESTIONS:
2.2.1 Name the document which supports the entry of R34 500 on the credit
side. (2)
2.2.2 Give ONE possible explanation for the entry of R500 on the credit side. (2)
2.2.3 Creditors charged ABC Furnishers interest on overdue accounts. How
can this be avoided in future? Give TWO suggestions. (4)
2.2.4 The balance on the creditors list is not the same as the one in the
Creditors Control account. What should the bookkeeper do to align
them? Give TWO suggestions. (4)
2.2.5 ABC Furnishers is not happy with the quality of furniture it is getting
from its suppliers. Provide a figure with an explanation to support your
answer. (4)
2.3 INTERNAL CONTROL OF KANI TRADERS
The owner, Kananelo Tsotetsi, is concerned about cash deposits. The
R23 000 of the cash sales received on 12 January 2018, was only deposited
in the bank on 27 January 2018.
REQUIRED:
2.3.1 Explain the problem relating to cash deposits. Quote evidence to

support her concern. Give TWO strategies to prevent this in future. (6)
50
Please turn over

QUESTION 3: DEBTORS LEDGER (15 marks; 10 minutes)
The following information appeared in the books of Fralize Traders.

REQUIRED:
3.1 Complete the Debtors Ledger of D. Dawie for April 2018.

TRANSACTIONS
April
1 The amount owed by D. Dawie to the business amounted to R2
134.
5 Sold goods for R1 375 on credit to D. Dawie as per invoice 23.
9 Received cash from D. Dawie for R1 995 as settlement of his
account as on 1 April 2018. Issued receipt 555.
12 Sold goods with a value of R790 on credit to D. Dawie as per
invoice 88.
16 Issued credit note number 154 to D. Dawie for R415.
20 D. Dawie paid the business R950 per EFT. Receipt no 598 was
issued to him.
23 D. Dawie bought R960 goods.
24 Charge the debtor D. Dawie with R25 interest.
30 Wrote the account of D. Dawie off as irrecoverable.
15
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QUESTION 4: CONCEPTS, SALARIES JOURNAL AND INTERNAL CONTROL

4.1 Indicate whether the following statements are TRUE or FALSE. Write
only 'true' or 'false' next to the question number (4.1.1–4.1.4) in the
ANSWER BOOK.
4.1.1 Salaries are paid weekly per EFT.
4.1.2 Wages are paid weekly and in cash.
4.1.3 UIF is a compulsory deduction of 1% and only paid by the employees

and employers.
4.1.4 Only the employers pay a 1% skills development levy. (4)
4.2 INTERNAL CONTROL: BYBY WHOLESALERS
Ronnie, the bookkeeper, issues invoices, credit notes, and collects cash from
debtors and deposit the money in the bank.
4.2.1 Identify what is wrong with the job description of Ronnie? (2)
4.2.2 Name THREE internal control measures that needs to be adhered to

regarding Ronnie’s job description. (6)
4.3 The following information appeared in the books of Servaas Traders for May
2018.
REQUIRED:
4.3.1 Complete the Salaries journal for May 2018. (33)
INFORMATION
Servaas Traders employed two people to control the business. The details
are as follows:
Employee Position Basic salary PAYE Medical Aid Pension

per month fund
B. Bushien Office R14 800 per 23 % of gross R530 7%
manager month
P. Piet Bookkeeper R116 400 per R1 940 per R225 R680 per
annum month month
Copyright reserved Please turn over

Other deduction:
1. All members contribute 1% of their basic salary to the

Unemployment Insurance fund (UIF).
The employer’s contribution is as follows:

1. Contributes 10% of the basic wage to the pension fund.
2. Contributes R2 for every R1 that the employee pays to
medical aid.
3. Contribute 1% of gross salary to the UIF.
4. Contribute 1% of gross salary to the Skills development Levy.
45
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QUESTION 5: YEAR-END ADJUSTMENTS (50 marks; 35 minutes)

5.1 The Pre-adjustment Trial Balance of Woolmer Sport Traders on
28 February 2018, the end of the accounting period is given.
REQUIRED:
5.1.1Show the effects of the adjustments in the General Journal.
(Journal narrations are not needed) (50)
INFORMATION:
WOOLMER SPORT SHOP

PRE-ADJUSTMENT TRIAL BALANCE ON 28 FEBRUARY 2018
BALANCE SHEET SECTION DEBIT CREDIT
Capital 935 500
Drawings 30 360
Land and buildings 342 320
Vehicles 336 400
Equipment 88 000
Accumulated depreciation on vehicles (1/3/2017) 113 640
(1/3/2017)
Debtors' Control 36 960
Bank ?
Petty cash 1 650
Mortgage Loan 179 300
Creditors' Control 101 530
Sales 828 240
Debtors’ allowances 13 740
Wages and Salaries 120 875
Sundry Expenses 5 357
Depreciation 31 240
Bad debts 1 770
Insurance 13 000
Rent income 48 725
Advertising 6 600
Interest on current account 5 500
Bank Charges 2 398
Telephone 3 410
Stationery 4 785
Discount Allowed 3 322
Please turn over

ADJUSTMENTS
1. The owner took Trading Stock to the value of R1 670 for personal
use. This was not recorded.
2. According to the physical count, the following were on hand at
year end:
• Trading stock, R41 700
• Stationery, R1 150
3. Telephone account for February 2018 has not yet been paid, R735.
4. Commission of R1 800 is owed to the company.
5. Insurance was paid for 13 months.
6. Advertising includes an amount of R3 600 paid for six advertisements
in the Daily News newspaper. By 28 February 2018 only four of these
advertisements had appeared in the newspaper.
7. A broken window was replaced at R1 590. This was accidentally
debited against land and buildings. Correct the error.
8. The rent includes the rent for March 2018. Take into account that the
rent was increased by R1 075 per month on 1 January 2018.
9. Depreciation is calculated as follows:
• On vehicles at 10% on cost price. A new vehicle was bought for

R120 000 on 1 September 2017 and recorded properly.
• On equipment at 15% on diminished balance method.
50
TOTAL: 200
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QUESTION 1: ANALYSIS OF TRANSACTIONS (25 marks; 15 minutes)
INFORMATION:
Davo Langley is the owner of Langley Suppliers. The business uses a mark-up of 25%
on cost of goods sold.
REQUIRED:
Analyse the transactions for April 2019 according to the answer book provided. The first
transaction has been done for you as an example.
Transactions:
Assume the bank always has a favourable balance.
Eg. Paid the water and electricity account by EFT, R450.

1. M. Gloria returned damaged stock with a cost price of R2 400. Issued a
credit note.
2. M. Gloria settled her account of R2 200 full less 10% cash discount.
3. The business sends R2 750 goods back to the supplier. Received a debit
note.
4. Paid postage from petty cash, R45.
5. Credit sales to the debtor. Cost of sales amounted R1 000.
25
QUESTION 2: GAAP PRINCIPLES
GAAP PRINCIPLES
2.1.1 What does the abbreviation GAAP stand for? (2)
2.1.2 Indicate which of the following GAAP principles would be applied in each
case:
A. Items of significance must be reported.
B. Financial information is always reported conservatively.
C. Income and expenses must be recorded in the correct financial
period.
D. The financial statements are completed under the assumption that
the business will continue operating in the foreseeable future.
E. All assets must be reported at its original cost price. (5)
Please turn over

QUESTION 3: SALARY SCALES, CALCULATIONS, INTERNAL CONTROL

AND WAGES JOURNAL (55 marks; 30 minutes)
The following salary scale was prepared for Thuto Begue, an admin clerk who works
at Josie suppliers. He was employed on 1 January 2010.
48 000 x 4 800 → 57 600 x 5 200 → 68 000 x 5 500 → 84 500
3.1 Complete the table in your answer book and answer the following questions:
3.1.1 Fill in the missing amounts in the table denoted by (i) – (iii) (6)
3.1.2 What is Thuto’s monthly starting salary? (2)
3.1.3 In which year will Thuto earn R57 600? (1)
3.1.4 By what percentage will Thuto’s salary increase at the end of the first
year? (3)
3.1.5 How many years will Thuto work before he earns an annual salary of
R84 500? (2)
3.2Use the information given below to calculate the Net Salary of the employee,
Hlompho Saint for March 2019. (11)
INFORMATION:
Gross salary R6 700 per month

PAYE 15% of the gross salary
Medical Aid Fund R4 200 per annum
Pension Fund 8% of gross salary
UIF 1% of gross salary
3.3 The owner of Josie suppliers is dissatisfied with the production levels
of his employees, he threatens to cut the salaries of employees.
3.3.1 Is the action being considered by Josie Suppliers appropriate?
Motivate your answer by providing ONE reason. (2)
3.3.2 What measures/actions should be applied by the employer to
increase the productivity levels. Provide TWO points. (4)
Please turn over

3.4 WAGES JOURNAL

The following information was taken from the records of Benjy Suppliers.
REQUIRED:
Prepare the Wages journal of Benjy Traders for the week ending 17 May
2019. Do NOT total the journal. (24)
INFORMATION
A. Normal time:
The normal working week is 40 hours.
• T. Kgang earns R50 per hour.
• M. Mothibe earns R40 per hour
The clock-cards of the workers show the following details:
• T. Kgang worked 45 hours in total.
• M. Mothibe worked 42 hours in total.
B. Overtime is calculated at 1 ½ times the normal rate.
C. Pension Fund:
• The employees contribute 8% of normal time to the pension fund
• Benjy contributes R1.50 for every R1 contributed by the
employee.
D. UIF:
• Calculated at a rate of 1% of normal time and both employer and

employee contribute the same amount.
E. Trade union:
• It is compulsory for each worker to belong to the JV Trade union.
The contribution is R9 per week
F. PAYE
Use the following tax scale to calculate PAYE
Remuneration per week Tax percentage

1 600 – 1 899 10%
1 900 – 2 199 11%
2 200 – 2 499 12%
G. Benjy must pay 1% of gross wages to the skills development levy.
55
Please turn over

QUESTION 4: GENERAL JOURNAL, CONCEPTS AND LEDGER

The following information was taken from the books of Nosi Stationers.
REQUIRED:
4.1 Journalise the following adjustments on 28 February 2019. Journal

narrations are not needed in the General Journal. (40)
INFORMATION
A. Provisional totals on 28 February 2019
General Journal
Debtors control Creditors control
DR CR DR CR
350 270 120 0
B Adjustments for 28 February 2019

(i) Insurance is prepaid, R200.
(ii) Water and electricity have not yet been paid, R1 500.
(iii) C. Khobe owed R160. The account must be written off as bad debts.
(iv) The dishonoured EFT of R140 was received from S. Peters. This
amount has been recorded. Discount of R30 must still be cancelled.
(v) Rent income amounts to R39 000. One month’s rent was received in
advance.
(vi) The roof has been repaired at a cost of R5 300. The amount was
posted to land and buildings account in error.
(vii) Received R4 400 for Interest on fixed deposit. One month interest is
still due.
(viii) The following extract appeared in the pre-adjustment trial balance:
Balance sheet accounts section Debit Credit

Vehicles 100 000
Equipment 75 000
Accumulated depreciation on vehicle 30 000
Calculate depreciation as follows:

• Vehicles at 15% p.a. at cost price
• Equipment at 10% p.a. on diminishing balance method.
(ix) Trading stock according to physical stock taking amounts to R67
000 on 28 February 2019.
Please turn over

4.2 Match the definition in column B to the concept in column A. Write only the
correct answer next to the question number in the answer book.
NO. COLUMN A COLUMN B

4.2.1 Fixed assets A Decreases profit and therefore decreases
owner’s equity.
4.2.2 Owners’ equity B Increase profit and therefore increase
owners’ equity.
4.2.3 Current assets C Amounts owing that will be paid back
within 12 months.
4.2.4 Income D The value of the business at any point in
time (total assets – total liabilities).
4.2.5 Expenses E Assets which are expected to be
converted into cash in a short period of
time, less than a year.
F Assets which are expected to be kept for
a long period of time, usually longer than
a year. (5)
4.3 GENERAL LEDGER

The information provided below is taken from the books of Tello Traders
for the month ending 30 April 2019. The business uses a mark-up of 100%
on cost price.
REQUIRED:
4.3.1 Use the information provided to prepare the following ledger accounts:
• Trading stock (13)
• Sales (5)
4.3.2 Tello Traders relies on the Accounting records for the calculation of the
stock on hand. Explain how the stock on hand can be verified. (2)
INFORMATION:
Balances on 1 April 2019 R

Trading stock on hand 20 600
Sales 44 400

Bank Sales Cost of sales Debtors control
? ? 7 000 3 380
Please turn over


Bank Trading Creditors Wages Stationery
stock Control
26 170 17 900 6 510 140 1 760
Debtors Journal
Sales Cost of Sales
8 800 4 400
Debtors Allowances Journal

Debtors allowances Cost of Sales
440 220
Creditors Journal
Creditors Trading Stationery Packing Sundry
Control stock Material Accounts
18 400 5 990 1 500 2 300 8 610
Creditors Allowances Journal

Creditors Trading Stationery Packing Sundry
Control stock Material Accounts
1 900 ? 175 155 1 000
65
QUESTION 5: DEBTORS RECONCILIATION AND INTERNAL CONTROL
The following information was extracted from the accounting records of Pinky
Dealers for May 2019.
At the end of the month, the Debtors Control account and the Debtors List could
not be reconciled. As the internal auditor of Pinky Dealers you were asked to
help with the reconciliation process.
REQUIRED:
5.1 Calculate the correct balance for the Debtors Control Account by using
” +” signs for an increase, a ” -” for a decrease and ”0” for no effect. (11)
5.2 Prepare the correct Debtors List for May 2019. (16)
5.3 Mention TWO measures that should be implemented by the business
before they can grant credit to customers. (4)
5.4 Name TWO ways in which you can encourage debtors to pay their
accounts on time. (4)
Please turn over

INFORMATION:
A Balances of Pinky Traders on 1 May 2019:
Debtors Control Account R21 020
B Debtors list on 31 May 2019 R

M. Mary 3 810
P. Paper 4 790
G. Gordon 8 340
D. Daniels 2 690
19 630
C The following errors and omissions were discovered:

(i) P. Papers’ account must be written off as he cannot be traced.
(ii) A EFT received from M. Mary for R1 500 was recorded
correctly in the Journal and General ledger but was not
posted to his personal account.
(iii) The total of the sales column in the Debtors Journal was
overstated by R2 210.
(iv) The total of the Debtors allowances journal was understated
by R280.
(v) D. Daniels returned goods to the value of R1 110 but the
bookkeeper incorrectly treated this as a credit sale and
posted it accordingly.
(vi) Goods were sold on credit to G. Gordon for R2 440. This
was entered correctly in the journal and General ledger but
was posted to his account as R2 040.
(vii) D. Daniels purchased R630 goods by the business. No
entries were done.
35
TOTAL: 200 MARKS
Please turn over

QUESTION 1: ACCOUNTING EQUATION (35 marks; 25 minutes)
1.1 Complete the given table for the transactions of Nkomo Traders. The
business maintain a mark-up of 50% on cost price.
TRANSACTIONS
1.1.1 Received a EFT of R4 600 from a debtor, L. Noge to settle her

account of R5 000.
1.1.2 Sold goods for R1 800 on credit to J. de Lange.
1.1.3 The owner took trading stock, R250 (cost price) for his own use.
1.1.4 Send equipment, which was bought on credit for R1 800, back to the
supplier.
1.1.5 J. de Lange send R300 goods back to the business (See 1.3.2)
1.1.6 Settle the account of R5 000 to ACD Traders and receive R400
discount.
1.1.7 Rent income amounted to R26 000 is the pre adjusted trial balance.
This includes the March rent of the next financial year.
35
QUESTION 2: WAGES JOURNAL (30 marks; 20 minutes)
The following information appeared in the books of Malinde Traders for May 2020.
REQUIRED:
2.1 Prepare the Wages Journal for the week ended 15 May 2020. It is not
necessary to add the columns in the journal. (30)
INFORMATION
Malinde Traders employed three workers. A month consists of four working

weeks. The employees are allowed to work for 45 hours a week normal time.
Name Normal time Overtime
Hours Rate per Hours Rate per
worked hour worked hour
T. Ntaka 45 R60 12
1½ time the
L. Janeke 45 R40 8
normal rate
S. Sebico 40 R30 2
Please turn over

Deductions were as follows:
(i) All workers contribute 8% of their basic wage to the pension fund.
(ii) Every member pays R32 per month to the Staff fund.
(iii) Employees pay the standard rate of 1% of basic wage towards the
unemployment insurance fund. Ignore cents in your calculations.
(iv) Tax must be calculated at 20% of employees’ gross wage.
(v) The medical aid works as follows:

• Single members pay R150 per week.
• Married members pay R225 per week.
• Married members with one child pay R1 000 per month.
T. Ntaka S. Sebico L. Janeke

Married with 1 child Married Single
(i) Contributes 12% of the basic wage to the pension fund.

(ii) Contributes R2 for every R1 that the employee pays to medical aid.
(iii) Contributes R1 for every R1 to the unemployment insurance fund.
Ignore cents in your calculations.
30
QUESTION 3: RECONCILIATIONS AND DEPRECIATION (50 marks; 35 minutes)
3.1 Name the source documents that are used to record the following transactions.
No. TRANSACTION SOURCE

DOCUMENT
3.1.1 Goods returned to the business from a debtor
3.1.2 Payment received from a debtor
3.1.3 Charge a debtor interest on his overdue account
3.1.4 Send stock back to the creditor. (4)
3.2. The following information appear in the books of Lebona Suppliers for April
2020.
REQUIRED:
3.2.1 Using the information given below calculate the correct balance on the
Debtors Control account and the Debtors List. (30)
Please turn over

INFORMATION:
A The Debtors control balance on 30 April 2020 was R36 360.
B The Debtors List extracted on 30 April 2020 showed the following balances:
R
A. Apple 7 500
M. Mango 13 600
L. Lemon 11 800
P. Peach 2 450
TOTAL 35 350

(i) The total in the Debtors Journal was overcast with R2 550.
(ii) An invoice to M. Mango was recorded in the journal as R7 900
instead of R9 700.
(iii) Purchasing of goods by A. Apple for R5 300 was correctly recorded
in the journal but posted to the account of P. Peach.
(iv) A return of goods by L. Lemon for R770 was correctly recorded in
the journal but posted to the wrong side of his account.
(v) P. Peach send R1 700 goods back to business. No entry has been
made.
(vi) An EFT issued by L. Lemon for R3 800 as partially payment, was
not entered in the records of Lebona Suppliers.
(vii) Charge A. Apple account with R45 interest. No entry was made.
(viii) Write the account of M. Mango off as bad debt.
3.3 KABI TRADERS
The following information was taken from the books of Kabi Traders. The
financial year ends annually on 29 February 2020.
REQUIRED:
Compile the following ledger accounts on 29 February 2020:
3.3.1 Vehicles (6)
3.3.2 Accumulated depreciation on Vehicles (5)
3.3.3 Depreciation (5)
Please turn over

INFORMATION:
The following balances were extracted from their books on 1 March 2019:
R
Vehicles 240 000
Accumulated depreciation on Vehicles 80 000
TRANSACTIONS
• Bought on 1 May 2019 an additional vehicle on credit for R180 000.
• Bought on 31 December 2019 a motor bike to assist with deliveries

for R48 000 cash.
• Provide for depreciation at 10% according to the diminishing balance

method.
50
QUESTION 4: LEDGER ACCOUNTS, INTERNAL CONTROL AND ETHICS

REQUIRED:
4.1 Prepare the following General Ledger accounts in the books of Masike
Suppliers and balance the accounts at the end of May 2020:
4.1.1 Bank (5)
4.1.1 Trading stock (9)
4.1.2 Debtors control (10)
4.1.3 Creditors control (8)
4.2 Answer the following questions:
4.2.1 Provide TWO strategies that the business can implement to solve
the cash flow problem. (2)
4.2.2 List TWO ways to motivate debtors to settle their accounts on time. (2)
4.2.3 List ONE transaction that will be recorded on the debit side and ONE
transaction on the credit side in the Debtors Control account which
was posted from the General Journal. It must be TWO different
reasons. (4)
Please turn over

4.2.4 Explain the concept of ‘division of duties’ as an important internal

control method. (2)
4.2.5 The debtors settle their debt in 30 days. Calculate the percentage
discount which the debtors received at the end of May 2020. (3)
4.2.6 The business is unhappy with the supplier of stationery and needs
to change. Quote figures to support their decision. (2)
4.3 The business maintains the same the mark-up percentage throughout the
year. Calculate the mark up percentage. (3)
INFORMATION
The following information appeared in the books of Masike Suppliers for
May 2020.
Balances on 1 May 2020:
R
Bank 25 000 (cr)
Debtors control 50 000
Creditors control 65 000
CASH RECEIPTS JOURNAL CASH PAYMENTS JOURNAL

Bank R135 000 Bank R168 000
Sales 84 000 Trading stock 66 000
Cost of sales 60 000 Stationery 12 000
Debtors control – Creditors control –
Receipts 45 000 Payments 40 000
Discount allowed 5 000 Discount received 6 500
Sundry accounts 5 000 Sundry accounts 50 000
CREDITORS JOURNAL CREDITORS ALLOWANCES JOURNAL

Creditors control 96 000 Creditors control ?
Trading stock ? Trading stock 5 000
Stationery 10 000 Stationery 9 000
Sundry accounts 28 000 Sundry accounts 1 000
DEBTORS JOURNAL DEBTORS ALLOWANCES JOURNAL

Sales 50 400 Debtors allowances 3 220
Cost of sales 36 000 Cost of sales 2 300
PETTY CASH JOURNAL GENERAL JOURNAL

Petty cash 800 Debtors control (dr) 1 500
Trading stock 600 Debtors control (cr) 800
Stationery 75
Debtors control 125
50
Please turn over

QUESTION 5: ADJUSTMENTS IN THE GENERAL JOURNAL

The following information appeared in the books of Leo Traders.

REQUIRED:
5.1 Use only the adjustments that are relevant to the General Journal. Show
which account must be debited and which account must be credited in the
General Journal of Leo Traders on 29 February 2020. (35)
LEO TRADERS
DEBIT CREDIT
Balance Sheet section
Mortgage loan from AA Bank 100 000
Equipment 95 000
Fixed Deposit: Absa Bank 150 000
Nominal accounts section
Sales 417 400
Insurance 3 400
Bad debts 310
Bank charges 405
Consumable stores 2 780
Interest on overdraft 1 350
Salaries 135 000
Wages 65 000
Interest on loan 5 000
Rent income 28 000
Stationery 1 350
ADJUSTMENTS
A. Wages of R30 000 was wrongly debited to salaries. Rectify the error.
B. Insurance amounting to R450 has not been paid.
C The owner withdrew R500 goods for his own use.
D Wrote a debtor, A. Ansie’s account of R800 off as bad debts.
E Rent was already received for March and April 2020.
Please turn over

F Depreciation must be calculated as follows:

• Equipment: 10% p.a. on the diminishing balance method
• Vehicles amount to R35 000
G Provide for the outstanding interest on fixed deposit. The fixed deposit
was deposited on 1 October 2019 at 9% p.a.
35
TOTAL : 200 MARKS
Please turn over

Free State
QUESTION 1: WAGES JOURNAL (30 marks; 30 minutes)
The following information appeared in the books of Malinde Traders for May 2020.
REQUIRED:
1.1 Prepare the Wages Journal for the week ended 15 May 2020. It is not
necessary to add the columns in the journal. (30)
INFORMATION
Malinde Traders employed three workers. A month consists of four working

weeks. The employees are allowed to work for 45 hours a week normal time.
Name Normal time Overtime
Hours Rate per Hours Rate per
worked hour worked hour
T. Ntaka 45 R60 12
1½ time the
L. Janeke 45 R40 8
normal rate
S. Sebico 40 R30 2
Deductions were as follows:
(i) All workers contribute 8% of their basic wage to the pension fund.
(ii) Every member pay R32 per month to the Staff fund.
(iii) Employees pay the standard rate of 1% of basic wage towards the
unemployment insurance fund. Ignore cents in your calculations.
(iv) Tax must be calculated at 20% of employees’ gross wage.
(v) The medical aid works as follows:

• Single members pay R150 per week.
• Married members pay R225 per week.
• Married members with one child pay R1 000 per month.
T. Ntaka S. Sebico L. Janeke

Married with 1 child Married Single
(i) Contributes 12% of the basic wage to the pension fund.

(ii) Contributes R2 for every R1 that the employee pays to medical aid.
(iii) Contributes R1 for every R1 to the unemployment insurance fund.
Ignore cents in your calculations.
30
Please turn over

Free State
QUESTION 2: RECONCILIATIONS (35 marks; 30 minutes)
2.1 Name the source documents that are used to record the following transactions.
No. TRANSACTION SOURCE

DOCUMENT
2.1.1 Goods returned to the business from a debtor
2.1.2 Payment received from a debtor
2.1.3 Charge a debtor interest on his overdue account
2.1.4 Send stock back to the creditor. (4)
2.2. The following information appear in the books of Lebona Suppliers for April 2020.
REQUIRED:
2.2.1 Using the information given below calculate the correct balance on the
Debtors Control account and the Debtors List. (31)
INFORMATION:
A The Debtors control balance on 30 April 2020 was R36 360.
B The Debtors List extracted on 30 April 2020 showed the following balances:
R
A. Adams 8 530
M. Marais 3 320
L. Lukele 14 150
P. Porogo 12 900
TOTAL 38 900

(i) The total in the Debtors Journal was undercast with R3 400.
(ii) An invoice to M. Marais was recorded in the journal as R9
400 instead of R4 900.
(iii) Purchasing of goods by P. Porogo for R7 890 was correctly
recorded in the journal but posted to the account of A. Adams.
(iv) A return of goods by L. Lukele for R1 450 was correctly recorded in
the journal but posted to the wrong side of his account.
(v) Credit sales to P. Porogo for R3 960 is not yet recorded.
(vi) An EFT issued by L. Lukele for R4 450 as partially payment, was
not entered in the records of Lebona Suppliers.
(vii) Charge A. Adams account with R76 interest. No entry was made.
(viii) M. Marais purchased R9 200 goods. No entry was made.
35
Please turn over

QUESTION 3: ADJUSTMENTS IN THE GENERAL JOURNAL

The following information appeared in the books of Leo Traders.

REQUIRED:
3.1 Use only the adjustments that are relevant to the General Journal. Show
which account must be debited and which account must be credited in the
General Journal of Leo Traders on 29 February 2020. (35)
LEO TRADERS
DEBIT CREDIT
Balance Sheet section
Mortgage loan from AA Bank 100 000
Equipment 195 000
Vehicles 350 000
Fixed Deposit: Absa Bank 150 000
Nominal accounts section
Sales 417 400
Insurance 3 400
Bad debts 310
Bank charges 405
Interest on overdraft 1 350
Salaries 135 000
Wages 65 000
Interest on loan 5 000
Rent income 39 000
Stationery 1 350
ADJUSTMENTS
A. Salaries of R25 000 was wrongly debited to wages. Rectify the error.
B. The owner withdrew R2 400 goods for his own use.
C Wrote a debtor, B. Belinda’s account of R650 off as bad debts.
D Rent was already received for March 2020.
Please turn over

E Insurance amounting to R275 has not been paid.

F Depreciation must be calculated as follows:
• Equipment: 5% p.a. on the diminishing balance method
• Vehicles: 20% on the cost price method
G Provide for the outstanding interest on fixed deposit. The fixed deposit
was deposited on 1 August 2019 at 10% p.a.
35
TOTAL : 100 MARKS
Please turn over

QUESTION 1: CASH JOURNALS (35 marks, 30 minutes)
1.1 CONCEPTS
REQUIRED:
Match the correct document from column B with the appropriate transaction
in Column A. Only write down the correct letter.in your Answer Book.
TRANSACTION SOURCE DOCUMENT
1.1.1 Payment method for goods A Invoice
purchased
1.1.2 Goods returned by a customer B Debit note
1.1.3 Sales on credit C Credit note
1.1.4 Goods returned to a supplier D EFT (Electronic funds
transfer)
(4)
1.2 CASH JOURNALS
The following information was extracted from the books of Ace Suppliers for
May 2022. The business maintains a mark-up percentage of 80% on cost.
Provide your own source document numbers. Do not total the journals.
REQUIRED:
1.2.1 Prepare the following journals. Total only the bank column.
• Cash Receipts Journal (14)
• Cash Payments Journal (17)
TRANSACTIONS FOR MAY 2022:

1 The owner, M. Riande increased her capital contribution by
depositing an additional R125 000 into the business bank account.
2 Obtained a loan from Bata Bank for R185 000 at an interest rate of
12% p.a. paid monthly.
6 Issue EFT to Snowy Traders for:
• Trading stock – R22 450
• Stationery – R3 180
• Consumable stores – R1 670.
11 Made an EFT payment to JJ Garage for R165 000 for purchasing of

a new vehicle.
17 Cash sales for the week amounts to R22 320.
Please turn over

19 Issued an EFT no. 46 for R3 900 to Danny Traders and received

a discount of R360.
26 Received an EFT payment from a debtor, L. Lindiwe for R3 940
in settlement of his account of R4 160.
30 Bank statement received from Vivo Bank, showed the following:
• Service fees R312,
• Interest on current account R133
• EFT fees R114
• Loan repayment R3 850 including interest.
35
QUESTION 2: DEBTORS RECONCILIATION (25 marks; 20 minutes)

LUCKY LOO TRADERS
The following information was extracted from the accounting records of Lucky Loo
Traders for April 2022. At the end of the month, the Debtors Control account and
the Debtors List could not be reconciled.
REQUIRED:
2.1 Calculate the correct balance for the Debtors Control Account for April 2022
by using ” +” signs for an increase, a ” –” for a decrease and ”0” for no entry
(effect). (10)
2.2 Prepare the correct Debtors List for April 2022. (13)
2.3 Name TWO advantages of EFT payments. (2)
INFORMATION:
A Balance on 30 April 2022:
Debtors Control Account R38 495
B Debtors list on 30 April 2022 R

B. Mkize 5 950
R. Radebe 16 600
L. Lemoen 11 580
B. Brown 5 280
Please turn over


(i) The total of the sales column in the Debtors Journal was
understated by R3 900.
(ii) An EFT payment received from B. Mkize for R5 600 to settle
his account was not recorded.
(iii) The total of the Debtors allowances journal was understated
by R2 175.
(iv) Goods were sold on credit to L. Lemoen for R3 900. This
was posted to his account as R3 090.
(v) Charged R. Radebe’s account with 8% interest for
3 months. No entry was made.
(vi) Credit sales to B. Brown for R1 630. The bookkeeper
incorrectly treated this as returns and posted it accordingly.
(vii) Goods were sold on credit to L. Lemoen for R3 700. This
was posted wrongly to B. Brown. Correct the error.
25
QUESTION 3: LEDGER ACCOUNTS (30 marks; 25 minutes)
PATENSIE STORES
The following information was extracted from the accounting records of Patensie
Stores.
REQUIRED:
Prepare the following accounts in the General Ledger and balance the accounts
at the end of the month.
3.1 Bank (5)
3.2 Trading stock (11)
3.3 Sales (4)
3.4 Cost of sales (7)
3.5 Calculate the mark-up percentage on cost (3)
Please turn over

INFORMATION
AOpening balances on 1 May 2022:
Bank R44 950
Sales 204 000
B Extract from the journals for May 2022:
Cash Receipt Journal – May 2022 CRJ
Doc D Details Fol Bank Sales Cost Debtors control
of Receipts Discount
sales
101 060 67 660 39 800 33 400 3 740
Cash Payment Journal – May 2022 CPJ

Doc D Details Fol Bank Trading Stationery Creditors Control
stock Payment Discount
155 500 103 400 54 000 22 800 2 590
Creditors Journal – May 2022 CJ

Doc D Details Fol Creditors’ Trading Stationery Sundry
Control stock Amount
96 550 79 300 7 725 9 525
Creditors Allowances Journal – May 2022 CAJ

Doc D Details Fol Creditors’ Trading Stationery Sundry
stoc
Control k Amount
11 460 6 900 2 540 2 020
Debtors Journal – May 2022 DJ

Doc D Details Fol Sales Cost of
sales
40 290 23 700
Debtors Allowances Journal – May 2022 DAJ

Doc D Details Fol Debtors Cost of
Allowances sales
4 400 2 300
General Journal – May 2022 GJ 7

Debtors Control
Doc D Details Debit Credit Debit Credit
28 Drawings 1 790
Trading stock 1 790
Owner took stock
30
Please turn over

QUESTION 4: SALARIES JOURNAL (35 marks; 20 minutes)
PARYS MUSICA
Parys Musica employs three full time workers.
REQUIRED
4.1Use the information provided below to complete the salaries journal for the
month ended 31 May 2022. (35)
INFORMATION
A. The employees are as follows:
• P. Piano (Married)
• G. Guitar (Not Married)
• F. Flute (Married, with one child)
B.Information regarding salaries:

• P. Piano earns 8 000 per month
• G. Guitar earns R144 000 per year
• Salary scale of F. Flute (employed for 2 years at the business) is
as follows:
84 000 x 8 400 – 109 200 x 15 400 – 155 400 .
C. Deductions:
(i) Pension fund:

• All employees are members of BB Pension fund and
contributes 8% of their gross salaries per member.
(ii) Medical Aid stipulations:
• Adults pay R450 per month per person
• Children pay R200 each, per month per child
(iii) South African Revenue Services:
• All employees pay 20% of their gross salaries.
(iv) Unemployment Insurance Fund contribution:
• 1% of gross salary
D Employers’ contribution:
• 12% of gross salary for the medical aid
• Employer contributes R2 for every R1 to the pension fund
• UIF contributions 1%.
35
Please turn over

QUESTION 5: GAAP PRINCIPLES AND ACCOUNTING EQUATION

REQUIRED:
5.1 Match the GAAP Principles in COLUMN A with the correct explanations in
COLUMN B. Write only the letter (A – E) next to the question number
(5.1.1 – 5.1.5) in the ANSWER BOOK.
COLUMN A COLUMN B
5.1.1 Business Entity A Financials are prepared on the
assumption that the business will
continue in the foreseeable future.
5.1.2 Historical Cost B Financial statements are prepared
conservatively.
5.1.3 Matching Principle C Assets are recorded at the price that
was paid.
5.1.4 Going Concern D Expenses and income must be
recorded in the correct time period.
5.1.5 Prudence E The owner and the business affairs
must be kept separate.
(5)
5.2 SILBANYA TRADERS

The given information relates to Sibanya Traders for April 2022. The
business maintain a mark-up percentage of 50% on cost.
REQUIRED:
Show the effects of the following transactions on the Accounting Equation.
Assume that the bank balance is favourable at all times. Show the
account and the amount affected.
(25)
TRANSACTIONS:
5.2.1 Credit purchases of trading stock from Rebecca Traders, R3 950.
5.2.2 The owner donated R1 500 stationery to the local high school.
5.2.3 Retuned trading stock worth R645 (see 5.2.1) to Rebecca Traders.
5.2.4 The debtor M. Modupi returned goods to the value of R600 to the
business. Cost of sales R450.
5.2.5 M. Vanneer, a debtor, settled her account of R1 300 with a EFT
payment of R1 180.
30
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QUESTION 6: YEAR-END ADJUSTMENTS (45 marks; 35 minutes)
The Pre-adjustment Trial Balance of Parys Traders on 28 February 2022, the end
of the accounting period was given.
REQUIRED:
6.1 Prepare the General Journal for the adjustments on 28 February 2022. (45)
INFORMATION:
PARYS TRADERS
EXTRACT OF THE PRE-ADJUSTMENT TRIAL BALANCE ON 28 FEBRUARY 2022
BALANCE SHEET SECTION
DEBIT CREDIT
Vehicles 750 000
Equipment 360 000
Accumulated depreciation on vehicles (1/3/2021) 350 000
Accumulated depreciation on equipment (1/3/2021) 160 000
Debtors' Control 65 300
Fixed deposit 225 000
Creditors' Control 139 550
Sales 2 700 000
Cost of sales 1 600 000
Discount Allowed 4 400
Wages and Salaries 144 000
Advertising 35 400
Bad debts 24 500
Insurance 48 100
Rent income 123 000
Telephone 33 000
Repairs 36 600
Bank Charges 11 450
Sundry Expenses 18 200
ADJUSTMENTS
(i) The telephone account for February 2022 has not yet been
paid, R2 425.
(ii) M. Montso, a debtors account of R1 350 must be written off as
bad debts.
(iii) R1 200 for Interest on fixed deposit is still receivable.
Please turn over

(iv) According to the physical stocktaking, the following were on

hand at year end:
• Trading stock, R244 890
• Consumable stores, R2 436
(v) Advertising includes an amount of R7 800 paid for six
advertisements in the Parys News newspaper. By 28 February
2022 only four of these advertisements had appeared in the
newspaper.
(vi) Repairs for R4 700 was incorrectly posted to Bank charges.
Rectify the error.
(vii) Insurance was paid 1 month in advance.
(viii) The rent includes the rent for March 2022. Take into account that the
rent was increased by R1 500 per month on 1 December 2021.
(ix) Depreciation is calculated as follows:
• On vehicles at 20% pa on cost price.
• On equipment at 10% on diminished balance method.
45
TOTAL: 200
ACKNOWLEDGEMENT:
This booklet is a compilation of assessment material from the Free State
province.
A special thanks to the Free State Education Department; Directorate
curriculum FET (BCM) for the use of the assessment materials set by their
team.

GR 10 TERM 2 WORKBOOK QP

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TERM 2

BASIC ACCOUNTING PRINCIPLES (RULES)

Dr OWNERS EQUITY (OE) Ct

Internal control; Ethics; GAAP

Important cash transactions (also in Gr 11 and 12 ):

Activity 1 (Source documents)

2. Cash deposited with the bank B Cash register roll

3. Payment for goods purchased C Invoice

4. Debtors pay their debts D EFT

5. Equipment purchased on credit E Credit note

6. Payments to creditors F Receipt

7. Cash sales G Deposit slip

GAAP Bad debt Stationery Current Assets

2.1 An example of a non-cash expense

Activity 3 (Bookkeeping / AOL) (38 marks; 35 minutes)

Activity 4 (AOL) (30 marks; 25 minutes)

JOURNALS, LEDGER & TRIAL BALANCE

1. EFTs received for sale will be in the ... (journal).

Activity 2 (Journals and Ledger) (80 marks; 75 minutes)

Activity 3 (Journals & Ledger) (38 marks; 35 minutes)

B. Total: Cash Receipts Journal of EQ Stores - 30 June 2021

C. Total: Cash Payment Journal of EQ Stores - 30 June 2021

D. Transactions still to be entered

Activity 4 (Trading Stock Account) (20 marks; 15 minutes)

GENERAL LEDGER OF XTRA STORES

* The owner took goods for personal use

(in the DL)

of asset items, (received from Cr Creditors Control

1. Stock sold on credit is recorded in the CJ.

Activity 2 (Journals - Debtors) (25 marks; 20 minutes)

Debtors list on 1 March 2021:

TRANSACTIONS for March 2021

Activity 3 (Ledger) (25 marks; 20 minutes)

A. Extract: CASH RECEIPTS JOURNAL OF ABBA TRADERS - MAY 2021

B. Extract: DEBTORS JOURNAL C. DEBTORS ALLOWANCE JOURNAL

Activity 4 (Journals and posting Creditors) (35 marks; 30 minutes)

Transactions March 2021

Activity 5 (Journals - Creditors) (35 marks; 30 minutes)

TRANSACTIONS for March 2021

GENERAL JOURNAL TRANSACTIONS

BASIC STEPS TO COMPLETE A GENERAL JOURNAL ENTRY

Activity 6 (General Journal) (30 marks; 25 minutes)

TRANSACTIONS: FEBRUARY 2022

Activity 7 (General Journal) (70 marks; 60 minutes)

B. Totals of the journals on 31 October 2021:

Cash Payments Journal

Debtors Journal Debtors Allowances Journal

Creditors Allowances Journal

C. Transactions to be recorded on 31 October:

DEBTORS & CREDITORS RECONCILIATION

Activity 1 (Debtor’s reconciliation) (25 marks; 20 minutes)

B INCORRECT DEBTORS LIST ON 31 AUGUST 2021

Activity 2 (Debtor’s reconciliation - calculation) (20 marks; 15 minutes)

ERRORS AND OMISSIONS

Activity 3 (Creditors reconciliation - calculation) (10 marks; 10 minutes)

Errors and omissions to be considered

Activity 4 (Creditors reconciliation) (22 marks; 15 minutes)

4.2. Refer to Information A and C:

4.3. Refer to Information B and C:

B. Incorrect Creditors List on 30 September 2021

Salaries and wages 3

SALARIES AND WAGES

ACTIVITY 1 (Concepts) (10 marks; 6 minutes)

Match the term in Column A with the explanation in Column B.