GAUTENG DEPARTMENT OF EDUCATION

PROVINCIAL EXAMINATION
NOVEMBER 2020
GRADE 10

ACCOUNTING
PAPER 2

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Question Topic MARKS Cognitive levels

1-2 3-4 5-
6
1.1 Concepts 5 5
1.2 General Ledger accounts 40 36 4
2.1.1 Debtors Reconciliation: theory 2 2
2.1.2.1 Debtors Reconciliation: Debtors Control
19 9 10
account
2.1.2.2 Debtors Reconciliation: Debtors List 21 10 11
2.1.3 Internal control regarding to Debtors 4 4

3.1 Fixed assets: concepts 4 4

3.2 Fixed Asset Register 8 8

3.3 Fixed Asset calculations 13 13

3.4 Fixed Asset note 14 14

4.1.1 – 4.1.3 Internal control and Ethics: Fixed Assets 14 14

4.1.4 Internal control: Inventories 6 6

150 45 58 47

QUESTION 1: CONCEPTS AND GENERAL LEDGER ACCOUNTS

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(45 marks : 36 minutes)

1.1 CONCEPTS

Choose an answer from the list that completes each statement below. Write
only the answer next to the question number (1.1.1 to 1.1.5) in the ANSWER
BOOK.

selling price cost price income expense

original invoice duplicate invoice credit note

1.1.1 Sales figure is regarded as ... .

1.1.2 Goods sold are always recorded at … price in the Trading Stock
account.

1.1.3 Trading stock donated by the business is regarded as an ... .

1.1.4 The source document used to record credit purchases is ... .

1.1.5 The source document used to record credit sales is ... .

(5 x 1) (5)

1.2 GENERAL LEDGER ACCOUNTS

You are provided with information relating to Molefi Traders for June 2020.
The business buys and sells household appliances for cash and on credit.
The business is located in Gauteng and their financial year ends on 30 June.
The business uses a mark-up of 60% on cost price.

REQUIRED:

Complete the following General Ledger accounts for June 2020 and balance
them properly:

1.2.1 Trading Stock (23)

1.2.2 Creditors’ control (17)

INFORMATION A:

Balances on 1 June 2020 in the General Ledger

 Trading Stock R87 600

 Creditors’ control R38 900

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INFORMATION B:

Totals in the subsidiary journals on 30 June 2020

Cash Receipts Journal

Bank Sales Cost of Debtors’ control Sundry
Sales Receipts Discount accounts
R68 200 R42 000 R26 250 R18 400 R600 R?

Cash Payments Journal

Bank Trading Debtors’ Creditors’ control Sundry
Stock control Payments Discount accounts
R44 300 R4 600 R1 800 R22 620 R980 R?

Debtors’ Allowances Journal

Debtors’ allowances Cost of sales
R1 800 R1 125

Creditors’ Journal
Creditors’ Trading Stationery Equipment Sundry
control Stock accounts
R? R12 800 R4 400 R8 900 R3 100

Creditors’ Allowances Journal

Creditors’ Trading Stationery Equipment Sundry
control Stock accounts
R2 800 R800 R300 R1 200 R?

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Petty Cash Journal

Petty Trading Stationery Wages Sundry
cash Stock
General Journal accounts
R1 260 control
Debtors’ R260 R400 control R380
Creditors’ R220
Debit Credit Debit Credit
R1 490 R890 R780 R1 420

INFORMATION C:

The accountant did not record the following transactions in the General Journal:

 The owner took goods for R1 650 at cost price per personal use.

 It was discovered that goods bought on credit for R3 200 was wrongly recorded
as stationery.

Note: record the transactions directly into the General Ledger accounts. 45

ANSWER SHEET

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1.1 CONCEPTS

1.1.1
1.1.2
1.1.3
1.1.4
1.1.5
5

1.2 GENERAL LEDGER OF MOLEFI TRADERS

BALANCE SHEET ACCOUNTS SECTION

1.2.1
DR TRADING STOCK B6 CR

Jun 1 Jun 30

23

1.2.2

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DR CREDITORS’ CONTROL B7 CR

Jun 30 Jun 1

MARKING GUIDELINES

1.1 CONCEPTS

1.1.1 income 
1.1.2 cost price 
1.1.3 expense 
1.1.4 original invoice 
1.1.5 duplicate invoice  5

1.2 GENERAL LEDGER OF MOLEFI TRADERS

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BALANCE SHEET ACCOUNTS SECTION

1.2.1
DR TRADING STOCK B6 CR
Jun 1 Balance b/d 87 600 Jun 30 Cost of sales CRJ 26 250

30 Bank CPJ 4 600 Cost of sales DJ 11 500

Creditors’ Creditors’
control CJ 12 800 CAJ 800
control
Cost of sales
DAJ 1 125 Drawings GJ 1 650

Petty cash PCJ 260 Balance c/d 69 385

Stationery GJ 3 200

109 585 109 585

Jul 1 Balance b/d  69 385
Allocate 2 marks for folio references – minimum of three on each side
 Debit side 
23
 Credit side 

1.2.2
DR CREDITORS’ CONTROL B7 CR

Jun 30 Bank CPJ 22 620 Jun 1 Balance b/d 38 900
Discount 30 Total
received CPJ 980 CJ 29 200
purchases
Total Journal
allowances CAJ 2 800 GJ 1 420
credits
Journal
debits GJ 780

Balance c/d 42 340

69 520 69 520
Jul 1 Balance b/d  42 340

Allocate 2 marks for folio references – minimum of three on each side

 Debit side 
 Credit side  17

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QUESTION 2: DEBTORS’ RECONCILIATION (46 marks : 37 minutes)

The information below has been taken from the books of Stephan Stores.

REQUIRED:

2.1 Respond to the following questions below:

2.1.1 Why should the Debtors’ Control and the Debtors’ List always
agree? Explain in ONE point.

2.1.2 Reconcile the Debtors’ Control to the Debtors’ List for the month of
July 2020.

2.1.3 Stephan feels that his debtors are not paying timeously. List TWO
measures he can implement to collect his money earlier from
debtors.

INFORMATION:

GENERAL LEDGER OF STEPHAN STORES

BALANCE SHEET ACCOUNTS SECTION

DR DEBTORS’ CONTROL B6 CR
01 Balance b/d 212 080 31 Bank and CRJ 224 550
2020 2020
discount
Jul Jul
allowed
Debtors’
30 Sales DJ 277 300 DAJ 8 000
Allowances
Journal Journal
GJ 4 700 GJ 2 400
Debits Credits
Balance c/d 259130
494 080 494 080
2020
01 Balance b/d 259130
Aug

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DEBTORS’ LIST AT 31 JULY 2020

NAME OF DEBTOR DEBIT CREDIT

C. Botha 20 600
H. Dipho 12 000
N. Dladla 64 000
D. Mkhize 3 200
E. Mthimkulu 6 500
L. Nkozi 73 000
G. Stuurman 13 400
B. Zunaid 90 000
TOTAL 279 500 3 200

ERRORS AND OMISSIONS

A The balance of the Debtors’ Control account was overstated on 01 July by

R1 080.

B The credit balance of D. Mkhize in the Debtors’ List must be transferred to the
Creditors’ ledger.

C The total column of sales in the Debtors’ Journal was undercast by R25 000.

D A credit invoice of R7 700 for goods purchased by B. Zunaid has not been
recorded.

E A receipt of R15 000 for L. Nkozi was correctly recorded in the debtors’
account, but was omitted from the Subsidiary Journal.

F An entry of R1 000 in respect of merchandise returned by N. Dladla was not

entered in the Subsidiary Journal and was entered on the wrong side of his
account.

G No entry has been made for a refund of R5 000 that was overcharged to
C. Botha.

H E. Mthimkulu returned stock of R4 800. This was correctly recorded in the

Subsidiary Journal but was recorded as R3 9 00 in the debtors’ account.

I No entry has been made for interest charged on G. Stuurman’s arrears of

R8 000. This amount was 3 months in arrears, interest is charged at 5% per
annum.

J H. Dipho issued a cheque of R8 550 towards his account after deducting 5%

discount. The discount was recorded in the Ledger but not in the Subsidiary
Journal.
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ANSWER SHEET

2.1.1 Why should the Debtors Control and the Debtors’ List always agree? Explain in ONE
point.

2.1.2 GENERAL LEDGER OF STEPHAN STORES

BALANCE SHEET ACCOUNTS SECTION

DR DEBTORS’ CONTROL B6 CR
Jul Jul 31
01

19

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DEBTORS’ LIST AT 31 JULY 2020

NAME OF DEBTOR AMOUNT

C. Botha
H. Dipho
N. Dladla
D. Mkhize
E. Mthimkulu
L. Nkozi
G. Stuurman
B. Zunaid
TOTAL
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2.1.3 List TWO measures Stephan can implement to collect his money earlier from
debtors.

4
MARKING GUIDELINES

2.1.1 Why should the Debtors’ Control and the Debtors’ List always agree? Explain in
ONE point.
Allocate two marks for any valid answer 

 They are both prepared from the same source documents.

 The Debtors’ Control is a summary of the Debtors’ List.

Allocate one mark for partially correct answer

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2.1.2 GENERAL LEDGER OF STEPHAN STORES

BALANCE SHEET ACCOUNTS SECTION

DR DEBTORS’ CONTROL B6 CR
Bank and
Jul 01 Jul 31
discount
Balance 211 000 allowed  240 000
[212 080- b/d CRJ
1 080]
 [224 550  +
15 000+
450]
Sales Debtors’
[277 300 + 310 000 Allowances
30 DJ DAJ 9 000
25 000+  [8 000 +
7 700] 1 000 ]
Bank Journal
CPJ  5 000 GJ  2 400
(refund)  Credits
Journal
Debits
[4 700 +
GJ  4 800 Balance c/d 279 400
100 *]
*See
Stuurman 530 800 530 800
below

279 400
01 Balance b/d
Aug 

19

DEBTORS’ LIST AT 31 JULY 2020

NAME OF DEBTOR AMOUNT

C. Botha (20 600 – 5 000)  15 600
H. Dipho  12 000
N. Dladla ( 64 000 – 1 000 – 1 000 )  62 000
D. Mkhize ( - 3 200 + 3 200 ) *0
E. Mthimkulu ( 6 500 – 900)  5 600
L. Nkozi  73 000
G. Stuurman (13 400 + 100)  13 500
B. Zunaid (90 000 + 7 700)   97 700
TOTAL  279 400
*if workings are not shown allocate 2 marks to a zero
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2.1.3 List TWO measures Stephan can implement to collect his money earlier from
debtors.
Allocate two marks for any valid answer  

 Charge interest on overdue accounts.

 Offer debtors early settlement discounts.
 Send debtors letters of demand/reminders/sms’s.

QUESTION 3: CONCEPTS AND FIXED ASSETS (39 marks; 31 minutes)

3.1 CONCEPTS

Indicate whether the following statements are TRUE or FALSE. Write only 'true' or 'false'
next to the question numbers (3.1.1 to 3.1.4) in the ANSWER BOOK.

3.1.1 Fixed assets are tangible assets that are purchased by the business for the
purpose of resale.

3.1.2 The accumulated depreciation is recorded in the Income Statement.

3.1.3 An Asset Register is a record of all the assets owned by the business.

3.1.4 The diminishing balance method is used to calculate depreciation for Land
and Buildings. (4 x 1)

3.2 FIXED ASSET REGISTER

Colin’s Car Dealership

The information provided is extracted from the financial records of Colin’s Car Dealership

REQUIRED:

Use the information below to complete the Fixed Asset Register provided in your
ANSWER BOOK. Their financial year ended on 29 February 2020.

INFORMATION:

Colin’s Car Dealership purchased a delivery van on 31 August 2018 on credit from
Falcon Motors for R150 000. Depreciation is calculated at 20% p.a. on the diminishing
balance method.

3.3 FIXED ASSET NOTE

Martin Logistics
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The information relates to Martin Logistics for the financial year ended 29 February 2020.

REQUIRED:

3.31 Calculate the total depreciation for equipment for the year ending 29
February 2020.

3.3.2 Calculate the price of ONE vehicle.

3.3.3 Calculate the total depreciation for vehicles for the year ending
29 February 2020. (5)

3.3.4 Complete the Fixed Asset Note. (14)

INFORMATION:

A
EXTRACTED FROM TRIAL BALANCE ON 29 FEBRUARY 2020:
Balance Sheet Accounts Section Debit Credit
Land and buildings 5 500 000
Vehicles (cost) 1000 000
Equipment (cost) 2000 000
Accumulated depreciation on vehicles (1/3/2019) 375 000
Accumulated depreciation on equipment (1/3/2019) 1 200 000

B ADJUSTMENTS AND ADDITIONAL INFORMATION:

Land and buildings

During the year a payment for R500 000 was made to Gifts Renovators,
R300 000 was for a new storeroom and the balance of R200 000 was for
repairs to the roof of the old warehouse.

Equipment

On 01 December 2019 a new 3D printer was purchased for R90 000. A

technician was hired to install and setup the printer before it could be used.
The business was invoiced R25 000 for the installation and setup. The
installation and setup were completed on the day the printer was bought.

Vehicles

The business owns THREE identical delivery vans. All three were purchased
on the same day and at the same price. A new delivery van was purchased
on 1 September 2019 at the same price of each of the other vans. This
purchase has already been recorded.

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Depreciation for the year is as follows:

 Equipment at 10% per annum on the diminishing balance method.

 Vehicles at 25% per annum on cost.
39

ANSWER SHEET

3.1 CONCEPTS

3.1.1
3.1.2
3.1.3
3.1.4 4

3.2 FIXED ASSET REGISTER

Asset: Delivery Van Date Purchased: 31 August 2018

Ledger
Vehicles From whom purchased Falcon Motors
Account:
20% p.a. on
Cost price: 150 000 Depreciation method
diminishing balance

RECORD OF DEPRECIATION
Date Depreciation Accumulated Carrying value
Depreciation
28 Feb
2019

29 Feb
2020

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3.3 FIXED ASSET NOTE

3.3.1 Calculate the total depreciation on equipment on 29 February 2020.

3.3.2 Calculate the price of ONE vehicle.

3.3.3 Calculate the total depreciation on vehicles on 29 February 2020.

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3.3.4 FIXED ASSET NOTE

Land &
Equipment Vehicles
Buildings
Carrying value at the
beginning of the year 375 000

Cost 5 500 000 2 000 000

Accumulated
0 (1 200 000) (375 000)
Depreciation

Movements

Additions at cost

Depreciation for the

year
Carrying value at the
end of the year

Cost 1 000 000

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MARKING GUIDELINES

3.1 CONCEPTS
3.1.1 False 
3.1.2 False 
3.1.3 True 
3.1.4 False  4

3.2 FIXED ASSET REGISTER

Asset: Delivery Van Date Purchased: 31 August 2018

Ledger
Vehicles From whom purchased Falcon Motors
Account:
20% p.a. on diminishing
Cost price: 150 000 Depreciation method
balance

RECORD OF DEPRECIATION
Date Depreciation Accumulated Carrying value
Depreciation

28 Feb
2019  15 000  15 000  135 000
check depreciation
29 Feb
 27 000  42 000  108 000
2020

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3.3 FIXED ASSET NOTE

3.3.1 Calculate the total depreciation on equipment on 29 February 2020.

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Old:
800 000
R2 000 000 – R1 200 000 x 10% = R80 000  one part correct

New:
115 000 2 marks
R90 000  + R25 000 x 10% x 3/12 

= R 2 875  one part correct

Total Depreciation:
R80 000 + R2 875 = R82 875  carried over to the fixed asset note

3.3.2 Calculate the price of ONE vehicle.

R1 000 000 = R250 000 

4

3.3.3 Calculate the total depreciation on vehicles on 29 February 2020.

Old:
750 000 1 mark 3.3.2
(R1 000 000 – R250 000)  x 25% = R187 500  one part correct

New:
3.3.2
R250 000  x 25% x 6/12  = R31 250  one part correct

Total Depreciation:
R187 500 + R 31 250 = R218 750 carried over to the fixed asset note
5

3.3.4 FIXED ASSET NOTE

Land &
Equipment Vehicles
Buildings
Carrying value at the
beginning of the year  5 500 000  800 000 375 000

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Cost 5 500 000 2 000 000  750 000

Accumulated
0 (1 200 000) (375 000)
depreciation

Movements
 115 000
Additions at cost  300 000 Check 3.3.1 new 3.3.2  250 000
asset
Depreciation for the
0 3.3.1 (82 875) 3.3.3 (218 750)
year
Carrying value at the
end of the year  5 800 000  832 125  406 250

Cost 5 800 000  2 115 000 1 000 000

Accumulated
0  (1 282 875)  (593 750)
depreciation

14

QUESTION 4: INTERNAL CONTROL AND ETHICS ON FIXED ASSETS AND INVENTORY

(20 marks; 16 minutes)

4.1 Read the scenario and answer the questions below:

Rogers Mokoena is the owner of Rogers Traders. The business has two
delivery vehicles. According to the vehicles’ policy of the business, drivers are

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allowed to drive the delivery vehicles home especially when the last delivery
to customers finishes late. The policy clearly states that the delivery vehicles
must not be used for private trips.

The owner discovered that one of the delivery vehicles (driven by John) has
travelled 2 000 kilometres more for June 2020 compared to the average
kilometres travelled each month. After an investigation, John confessed that
he used the delivery vehicle to visit his family in Eastern Cape.

Rogers Traders has two employees who are responsible for the storeroom.
They receive stock and issue stock to the sales department. The large orders
that need to be delivered to customers are collected by the drivers from the
storeroom. After the physical stocktaking at the end of June 2020, it was
discovered that 15 gas heaters were missing. The employees responsible for
the storeroom could not account for the missing gas heaters.

REQUIRED:

4.1.1 Explain how John’s unethical conduct will affect the business
financially. Provide TWO points. (4)

4.1.2 Provide THREE internal control measures that can be implemented

by the owner of the business to avoid any abuse of delivery vehicles
by employees. (6)

4.1.3 Provide TWO steps that can be taken against John for his unethical
conduct. (4)

4.1.4 Discuss THREE internal control measures that can be implemented

by the owner to prevent theft of trading stock. (6)

20

ANSWER SHEET

4.1.1 Explain how John’s unethical conduct will affect the business financially. Provide
TWO points.

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4.1.2 Provide THREE internal control measures that can be implemented by the owner
of the business to avoid any abuse of delivery vehicles by employees.

4.1.3 Provide TWO steps that can be taken against John for his unethical conduct.

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4.1.4 Discuss THREE internal control measures that can be implemented by the owner
to prevent theft of trading stock.

MARKING GUIDELINES

4.1.1 Explain how John’s unethical conduct will affect the business financially.
Provide TWO points.

Two marks for each valid point  

 The abuse of vehicles will increase the maintenance costs.

 The petrol cost will also increase.
 The value of the asset will depreciate/drop quickly and the business might be expected
to replace the vehicles earlier than estimated.

4.1.2 Provide THREE internal control measures that can be implemented by the owner
of the business to avoid any abuse of delivery vehicles by employees.

Two marks for each valid point   

 Install tracking device.

 Drivers need to have a log book to record all kilometres travelled
 The owner needs to approve all trips taken by drivers
 Deliveries should be done early
(Any acceptable answer)

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4.1.3 Provide TWO steps that can be taken against John for his unethical conduct.

Any three valid steps   

 Written warning
 Disciplinary hearing
 Open a case against John
(Any acceptable answer)
Note: do not give marks if learner said to fire John

4.1.4 Discuss THREE internal control measures that can be implemented by the owner
to prevent theft of trading stock.

Any three valid answers   

 Division of duties – each storeman has specific duty to fulfil
 Install cameras in the store room
 Appoint security guard at the gate to check stock against delivery notes

20

TOTAL: 150