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WESTERFORD HIGH SCHOOL

MAY EXAMINATION 2009

ACCOUNTING

GRADE 11

MAXIMUM MARKS: 300 TIME: 3 HOURS

NAME: __________________________ GRADE 11: ________

QUESTION MAXIMUM

MARKS

LEARNERS

MARK

1 127

2 55

3 38

4 44

5 36

TOTAL 300

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QUESTION 1.1

MAGNUM TRADERSINCOME STATEMENT FOR THE YEAR ENDED 29 FEBRUARY 2008

NOTES RSales

Cost of Sales

GROSS PROFIT

Other Operating Income

Operating Expenses

64

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1.2. NOTES TO THE BALANCE SHEET

1.2.1

CAPITAL ACCOUNTS OF PARTNERS THIRSK MARTIN TOTAL

1.2.2

CURRENT ACCOUNTS OF PARTNERS THIRSK MARTIN TOTAL

Appropriation of net profit

Drawings for the year

Balance on last day of previous year

Balance on last day of current year

37

9

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1.2.3

TRADE AND OTHER PAYABLES

17

127

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QUESTION 2

2.1.1 What kind of balance does Frosty Traders have according to the BankStatement ?

(2)

2.1.2 Why might the bank not have reflected the deposit of R15 400 on theBank Statement for February?

(2)

2.1.3 If cheque 4110 does not appear on the Bank Statement in March, whataction will have to be taken and why?

(4)

2.1.4 Explain the entry for R1 440 on the Bank Reconciliation Statement

(2)

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2.1.5 Frosty Traders received a cheque for R2 600 on 26 February 2007.The cheque was dated 26 March 2007. Why does the cheque not appearon the Bank reconciliation Statement?

(4)

2.1.6 What will have to be done with cheque 4318 in the financialstatements as it is the financial year-end?

(6)

2.1.7 Explain why it is important for a business to reconcile its bankaccount every month

(4)

24

2.2

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Analyse the given instructions of Harrington Stores for July 2007 as illustrated inthe example. If no entry is required, write no entry in the columns.

Example:

The bank statement for July showed an unpaid cheque. This cheque drawn by a debtor,

S Rock for R300 was dishonoured by the bank due to insufficient funds.

NO. CASH JOURNALS BANK RECONCILIATIONSTATEMENT

Cash ReceiptsJournal

Cash PaymentsJournal

Debit Credit

e.g. - R300 - -

(21)

21

2.3

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Describe THREE control measures which the business could use to ensuretransparency and proper control of cash in the business.

(10)

10

55

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QUESTION 3.1General Ledger of Slytherin Sports Club

DR MEMBERSHIP FEES CR

19

3.2 CLUBS

3.2.1 How many new members joined the club during the year?

(3)

3.2.2 What percentage of the entrance fees was capitalized?

(3)

3.2.3 Name the correct contra-accounts for the following amounts

3.2.3.1 R2 860 ----

3.2.3.2 R1 540 ----

(4)3.2.4 What is the value of the club badges donated to visitors?

(3)

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3.2.5 Calculate the profit made on the sale of Club badges.

(3)3.2.6 Calculate the value of stock of badges on 31 October 2006

(3)

19

38

QUESTION 4

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4.1 TANGIBLE/FIXED ASSETS

VEHICLES EQUIPMENT TOTAL

Carrying value at end of previous year

MOVEMENTS

(42)

42

4.2 Depreciation is an unusual expense in that it does not involve the outflowof cash from a business. Give another example of a similar type of expense.

(2)

44

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QUESTION 5

5.1.1 Percentage net profit on sales

(3)

5.1.2 Current Ratio

(3)

5.1.3 Debt/Equity Ratio

(3)

5.1.4 Percentage return earned by Nkosi on his average equity

(4)5.2 Use the acid-test ratio to calculate the amount of trading stock on

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hand on 28 February 2007.

(4)

5.3 Should the partners be satisfied with the control of operating expenses?Briefly explain your answer. Quote ratios, percentages or figures toSupport your answer.

(3)

5.4 Comment on the liquidity position of the business on 28 February 2007.Quote ratios, percentages or figures to support your comment. StateTHREE points in your answer.

(9)5.5 Zuma feels that Nkosis drawings are unreasonable. Quote figures to

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support his opinion. How does this affect the business?

(4)

5.6 The business urgently needs a delivery vehicle, which is expected tocost R300 000. In your opinion, how should the business finance thecost of the vehicle? Give a reason for your answer.

(3)

36

TOTAL: 300 MARKS