Credit sales comprise total sales

Accounting	2	DBE/2016

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5. You may use a dark pencil or blue/black ink to answer the questions. 6. Where applicable, show ALL calculations to ONE decimal point.

7. Write neatly and legibly.

QUESTION 1: 35 marks; 20 minutes
Topic of the question:	This question integrates:

QUESTION 3: 40 marks; 25 minutes

Inventory Valuation, Internal Control and Problem-solving

QUESTION 5: 70 marks; 40 minutes

	Financial accounting Cash Flow Statement Analyse and interpret financial information Managing resources Fixed asset management

Internal control

Accounting	4	DBE/2016

REQUIRED:

1.2.1	Taking into account the errors and omissions, calculate the VAT amount	(12)
1.2.2	that is either payable to or receivable from SARS.
1.2.2	The internal auditor discovered that the owner, Nelson, used the VAT

	INCLUDING VAT	VAT AMOUNT
	564 300	69 300
	191 520	23 520
	52 440	6 440
	39 900	4 900

• Stock taken by the owner, cost price R6 000 (excluding VAT), has not been recorded.

Accounting	5	DBE/2016

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1.3.2		(14)
1.3.2	An investigation into the transaction on 2 February 2016 for Invoice 560	(14)

revealed that Pearl Fakude (purchasing manager) ordered goods for herself. These goods were not taken into stock.

State TWO internal control measures that the business can use to prevent similar incidents from happening in future. (4) INFORMATION:
A. Creditors' Ledger of Thanda Stores
Minty Suppliers


B.	Statement of account received from Minty Suppliers

Accounting	7	DBE/2016

C. An investigation revealed the following errors and omissions:

(a) Invoice 996 was for goods that Thanda Stores bought from

(d) The discount allowed on 7February 2016 is correct as per the

statement of account.

(g) In terms of the contract Minty Suppliers charges a delivery fee to

all its customers.

Accounting	8	DBE/2016

QUESTION 2: MANUFACTURING 2.1 ABE ACCESSORIES

(50 marks; 30 minutes)

INFORMATION:

Consumable stores used in the factory	R129 300

	?
	R97 500
	R250 000
Sales department	R130 000
Sundry expenses:
	R31 500
	R28 000
	R50 000
	R24 000

• The factory cleaner was omitted from the salaries and wages list for February 2016. Her details are as follows:

Gross salary	Deductions	Net salary
R3 800	R420	R3 380	R380

D. The business manufactured 10 500 cellphone covers at a cost of R82,40 per unit.

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REQUIRED:

2.2.1	• Gloria is concerned about the wastage of direct materials. Calculate	(5)


2.2.2		(3)
2.2.2		(3)
2.2.3	advice to prevent this from happening in future.	(4)
2.2.3	Break-even point and production:	(4)
2.2.4		(4)
		(4)
		(4)

cost of R150 per metre. Gloria is considering importing the fabric, as it

will cost R120 per metre (all costs included). If she decides to import the

INFORMATION:

A. Direct materials:

B.	Production levels:

	10	DBE/2016

Give ONE word/term for each of the following descriptions by choosing a word/term from the list below. Write only the word/term next to the question number (3.1.1–3.1.4) in the ANSWER BOOK.

	3.1.4			(4)
	in bulk.		(4 x 1)
	LYNN STORES

Accounting	11	DBE/2016

Date	Pairs of shoes	Total value (including carriage)
	520	R320 770
	325	?

Date	Pairs of shoes		Total purchases	Carriage per pair	Total cost (including carriage)
31/05/2015	460	R650		R18
01/08/2015	700	R680		R18
15/10/2015	500	R710	R355 000	R30	R370 000
01/02/2016	300	R725		R30
	1 960				R1 392 380

REQUIRED:

3.3.1	Identify ONE problem in Shop 1 and ONE problem in Shop 2. Quote	(6)
3.3.1	figures. In EACH case, give ONE point of advice.	(6)
3.3.2	Explain TWO good decisions that Chad has made in respect of Shop 3.	(4)
3.3.2		(4)

40

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Accounting	13	DBE/2016

QUESTION 4: CONCEPTS, BALANCE SHEET AND AUDIT REPORT
(65 marks; 40 minutes)

4.1 CONCEPTS

4.2

PARADISE LIMITED

(4 x 1)

(4)

The information below relates to Paradise Ltd. The financial year ended on 29 February 2016.

4.2.2 Prepare the Balance Sheet (Statement of Financial Position) on 29 February 2016. Show ALL workings. (35)

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	R
	?
Retained income (1 March 2015)	1 634 000
Loan from director: J Jonas (See Information E.)	1 155 000
	12 278 400
	?
	?
	478 000
Debtors' control	356 000
Provision for bad debts (1 March 2015)	16 000
	?
	12 000
	6 800
	1 012 000

• Paradise Ltd is authorised to sell 5 000 000 ordinary shares.

C.			paid	an	interim	dividend	of	R840 000	on
C.	• The	directors	paid	an	interim	dividend	of	R840 000	on

28 August 2015.

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• Interest is not capitalised and has been paid in full.

F. Provision for bad debts:

• Depreciation for the financial year ended 29 February 2016 was

R890 000.

	1,3 : 1
	0,8 : 1

You are provided with an extract of the independent auditor's report of

4.3.2	choice.	(3)
4.3.2	To whom is an audit report addressed? Give a reason for your answer.	(3)
4.3.3		(2)
		(2)
		(2)

Extract from the audit report:

65

Choose the correct word(s) from those given in brackets. Write only the word(s) next to the question number (5.1.1–5.1.4) in the ANSWER BOOK.

5.1.1 The mortgage bond to finance the purchase of a fixed asset is a (financial asset/non-current liability).

5.2	5.1.4			(4)
			(4 x 1)
	MAFUSA LTD

The information presented relates to the financial year ended 30 April 2016.

ALL workings.

• Return on average shareholders' equity (5)

• Net asset value (3)

Accounting	17	DBE/2016

• Explain the effect of this change of policy on the company.

5.2.7		(4)
5.2.7		(4)

A.

B.

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Accounting	18	DBE/2016

• On 1 December 2015 new equipment valued at R900 000 was purchased.

• There were no other movements.


1 February 2016	200 000 ordinary shares were issued at R8,00 per share.
25 April 2016

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E.

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QUESTION 6: BUDGETING (40 marks; 25 minutes)

6.1	Calculate the missing amounts denoted by (a) to (d) in the Projected Income		(12)
6.1			(12)
6.2			(4)
6.2	6.2.1	The monthly salary due to the sales manager in June 2016	(4)
6.3	6.2.2	The total credit sales expected in July 2016	(4)
	6.2.3		(4)
	Comment on the control of the telephone and water and electricity. What advice		(4)
6.4			(4)
6.4	Susan wants to reduce the maintenance budget to R500 per month and then		(4)

the actual figures for May 2016 and:

• Explain how Susan responded to this threat. State THREE points. Provide figures/calculations to support your answer.

The sales manager earns R400 more than the administration manager (per month). The managers are entitled to an increase of 7% p.a. from 1 June 2016.