ACCOUNTING GRADE 10 NOVEMBER EXAM 2020 LEARNER: _ - MARKS: 75 - Voortrekker ...
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ACCOUNTING
GRADE 10
NOVEMBER EXAM 2020
MARKS: 75 TIME: 1 hour
LEARNER: _________________________
Please turn overINSTRUCTIONS AND INFORMATION
Read the following instructions carefully and follow them precisely.
1. Answer ALL the questions.
2. A special ANSWER BOOK is provided in which to answer ALL the questions.
3. A formula sheet is provided to you at the end of the question paper.
4. Show ALL workings to earn part-marks.
5. You may use a non-programmable calculator.
6. You may use a dark pencil OR blue/black ink to answer the questions.
7. Where applicable, show all calculations to ONE decimal point.
8. Write neatly and legibly.
9. Use the information in the table below as a guide when answering the question
paper. Try NOT to deviate from it.
QUESTION 1: 50 marks; 40 minutes
Topic of the question: This question integrates:
GAAP Principles
Financial Statements Income Statement
Fixed asset note
QUESTION 2: 25 marks; 20 minutes
Topic This question integrates:
Reconciliations and Creditors reconciliation
accounting equation Accounting equation
Please turn overQUESTION 1: STATEMENT OF COMPREHENSIVE INCOME (50 marks; 40 minutes)
1.1 CONCEPTS
Choose one concept from the list provided for each explanation below. Write
only the concept next to the question number (1.1.1 - 1.1.3) in the ANSWER
BOOK.
Matching, Materiality, Historical cost, Going concern, Business entity
1.1.1 Assets are recorded at the amount that was originally cost price.
1.1.2 The accountant assume that the business will continue for the
foreseeable future.
1.1.3 The financial affairs of the owner must be recorded separately from
that of the business. (3)
1.2 FARAWAY STORES
The following information relates to Faraway Stores.
REQUIRED:
1.2.1 Prepare the Statement of Comprehensive Income for the year ended
30 June 2020. Show your workings in brackets to earn part marks. (37)
INFORMATION:
PRE-ADJUSTMENT TRIAL BALANCE ON 30 JUNE 2020
Balance sheet account section DEBIT CREDIT
Trading inventory 87 500
Debtors control 70 000
Fixed deposit – ABC Bank (9%) 120 000
Loan XYZ Bank 560 000
Sales 1 200 000
Cost of sales 800 00
Debtors allowances 18 800
Rates and taxes 24 000
Commission income 117 500
Rent income 171 200
Insurance 65 000
Bad debts 9 600
Interest on fixed deposit 8 250
Stationery 11 400
Telephone 28 400
Bank charges 6 590
Discount allowed 4 600
Water and electricity 38 740
? ?
Please turn overADJUSTMENTS AND ADDITIONAL INFORMATION:
A. Depreciation for the year amounts to R33 700.
B. Credit sales for R6 000 was not recorded. Cost of sales R4 000
C. The telephone account for June 2020 was not recorded, R3 460.
D. A debtor who owed R1 535 was declared insolvent. Write the account
off as irrecoverable.
E. A physical stock count on 30 June 2020 revealed the following on
hand:
Trading Stock R79 450
Stationery R 1 460
F. An amount of R3 250 received from B. Billy, a debtor whose debt was
written off as irrecoverable the previous year, was credited to the
account of B. Billy. Correct the error.
G. The June 2020 Bank Statement was received after the pre-adjustment
trial balance was drawn up. The following must be adjusted:
Dishonoured cheque, R1 920. This was in settlement of
K. Kallie’s account of R1 980.
Bank charges, R450.
H. The insurance amount includes an annual premium of R2 340 paid on
1 February 2020.
I. The interest on fixed deposit is still owed to the business at the end of
the year. There were no changes on the fixed deposit during the
financial year.
J. The rent increased by R1 200 per month from 1 April 2020. The rent
for July 2020 was received and deposited.
Please turn over1.3 CAMILLA TRADERS
The information below relates to Camilla Traders for the financial year ended
29 February 2020
REQUIRED:
1.3.1 Prepare the note for fixed assets (10)
INFORMATION
Extracted from the accounting records on 29 February 2020:
Fixed Assets at carrying value ?
ADDITIONAL INFORMATION
A EXTRACT FROM THE FIXED ASSETS NOTE:
Land &
Vehicles Equipment
buildings
Carrying value at beginning of
480 000 340 000 (C)
year
Cost 480 000 600 000 130 000
Accumulated depreciation 0 (260 000) (55 500)
MOVEMENTS
Additions at cost 120 000 180 000 0
Depreciation (0) (B) (D)
Carrying value at end of year
Cost (A)
Accumulated depreciation (0) (68 500)
B ADDITIONAL INFORMATION:
(i) Fixed Assets
The buildings were extended during the year for R120 000.
A new vehicle was purchased for cash on 1 December 2019.
Depreciation on vehicles must be calculated at 20% on the
diminishing method.
Depreciation on equipment must be calculated at 10% on the cost
price method
50
Please turn overQUESTION 2: RECONCILIATION AND ACCOUNTING EQUATION
(25 marks; 20 minutes)
2.1 TIMOTHY STORES
CREDITORS' RECONCILIATION
The Creditors' Control account and the Creditors' List for September 2020 was
prepared by the bookkeeper. There were some errors and omissions.
REQUIRED:
2.1.1 Show the corrections that the bookkeeper must make to the Creditors'
Control Account in the General Ledger. (5)
2.1.2 Prepare a correct Creditors' List on 30 September 2020. Show
workings in brackets to earn part-marks. (10)
INFORMATION:
A. The Creditors' Control Account reflected a balance of R61 190 on
30 September 2020 (before errors and omissions)
B. CREDITORS' LIST ON 30 SEPTEMBER 2020 (before Information C)
R
AA Traders 9 500
BB Stores 21 200
CC Supplier 13 600
DD Wholesalers 11 400
C. The following differences were identified on 30 September 2020 and not
recorded.
(i) The Creditors Journal was overcast by R5 400.
(ii) Credit purchases from BB Stores, R4 250, was incorrectly posted to
the account of CC Suppliers.
(iii) An EFT payment was made to AA Traders, R9 000 to settle their
account on 28 September 2020 was not recorded at all.
(iv) An invoice for R5 600 received from DD Wholesalers was not
recorded.
(v) Discount of R670 received from CC Suppliers was incorrectly posted
to the Creditors' Ledger as R760. The General Ledger is correct.
Please turn over2.2 ACCOUNTING EQUATION
These transactions appeared in the books of Lea Traders. The business
maintains a gross profit mark-up of 50% on cost. The financial year ended
31 June 2020.
REQUIRED:
Analyse the following transactions according to the accounting equation.
Assume that Bank balance is favourable for all the transactions.
Example: The business pays the telephone account per cheque, R500.
TRANSACTIONS:
2.2.1 Purchased trading stock on credit for R3 450.
2.2.2 Write a debtor, D Danie account of R575 off as bad debts.
2.2.3 Receive R1 800 from a debtor, M. Malini as partly payment of her
account. (10)
25
TOTAL MARKS: 75
GRADE 10 ACCOUNTING FINANCIAL INDICATORS
FORMULA SHEET
Gross profit x 100 Net profit before tax x 100
Gross profit x 100
Cost of sales 1 Sales 1
Sales 1
Operating profit x 100
Operating expenses x 100
Sales 1
Sales 1
(Current assets – Inventories) : Current liabilities
Current assets : Current liabilities
(Trade and other receivables + Cash and cash equivalents) : Current liabilities
Net profit x 100 Total assets : Total liabilities
Average owner’s equity 1
Please turn overACCOUNTING
GRADE 10
NOVEMBER EXAM 2020
NAME AND SURNAME: ____________________________________
TOTAL
QUESTION LEARNER
MARKS
1 50
2 25
TOTAL 75
Please turn overAccounting: Grade 10 9 November 2020
QUESTION 1
1.1 Choose one concept from the list provided for each explanation below.
Write only the concept next to the question number (1.1.1 - 1.1.3) in the
ANSWER BOOK.
1.1.1
1.1.2
1.1.3 3
1.2.1 FARAWAY STORES
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR
ENDED 30 JUNE 2020
Sales (1 200 000
Cost of sales (800 000
Gross Profit
Other Operating Income
Commission income 117 500
Gross Operating income
Operating Expenses
Rates and taxes 24 000
37
Operating Profit
Interest income
Profit Before Interest Expense
Interest expense (20 715)
Net Profit for the year
Please turn overAccounting: Paper 1 10 November 2020
Grade 10
1.3 Fixed Asset note on 29 February 2020:
Calculation Answer
A
B
C
D
10
TOTAL MARKS
50
Please turn overAccounting: Paper 1 11 November 2020
Grade 10
QUESTION 2
2.1.1 List the corrections that the bookkeeper must make to the Creditors'
Control Account in the General Ledger.
61 190
5
2.1.2 PREPARE A CORRECT CREDITORS' LIST ON 30 SEPTEMBER 2020.
R
AA Traders (9 500
BB Stores (21 200
CC Suppliers (13 600
DD Wholesalers (11 400
10
2.3 ANALYSIS OF TRANSACTIONS
No. A OE L
Eg. – 500 – 500 0
2.2.1
2.2.2
2.2.3
10
TOTAL MARKS
25
Please turn overAccounting: Grade 10 12 November 2020
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