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Exemplar 2018 Accounting Grade 10 P2 and Memo
Exemplar 2018 Accounting Grade 10 P2 and Memo
com
NOVEMBER 2018
GRADE 10
ACCOUNTING EXEMPLAR
PAPER 2 (A)
MARKS: 150
TIME: 2 hours
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6. You may use a dark pencil or blue/black ink to answer the questions.
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7. Where applicable, show all calculations to ONE decimal point.
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8. Write neatly and legibly.
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9. Use the information in the table below as a guide when answering the question paper.
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Try NOT to deviate from it.
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QUESTION 1: 20 marks; 15 minutes
Topic This question integrates:
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VAT concepts and calculations
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Ethical considerations
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Reconciliations
Creditors' List
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1.2 Calculate the missing amounts denoted by (a) to (d).
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Note that the standard VAT rate is 15%.
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VAT (INCLUSIVE) VAT (EXCLUSIVE) VAT AMOUNT
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(a) R1 300 R195
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R2 760 (c) (b)
(d) ep R525 (8)
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1.3 MDUNGE TRADERS
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Mdunge Traders is registered for VAT. The VAT rate of 15% applies.
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REQUIRED:
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1.3.2 You discovered that the VAT amount was not being submitted on due
dates. On enquiry, it was discovered that the manager was using the
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VAT money to pay for business expenses. Give ONE point of advice to
the manager and explain why you offer this advice. (4)
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1.3.3 Mpumi, the owner, suggested to the bookkeeper that they charge VAT
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on all goods sold (including the zero rated goods) but keep a separate
journal for the VAT payable to SARS.
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20
REQUIRED:
2.1 Explain why the Creditors Control account balance and the Creditors list total
should be equal. (2)
2.4 Charl wants to improve the management of his creditors. Provide TWO internal
control measures that he can use to achieve his goal. (4)
INFORMATION:
C. ADDITIONAL INFORMATION
(ii) Due to a calculation error, the balance of Becker Ltd’s creditor’s ledger
account was reflected as R13 505 instead of R23 505.
(iii) An invoice for goods bought from Suns Warehouse, R895, was recorded
in the Creditors' Journal as R985, and posted as such.
(iv) A debit note of R960 was issued to Suns Warehouse for goods returned to
them. They did accept the returns but no entry was made in the books of
Charl Traders for this transaction.
(v) An invoice for R1 460 received from Brown Stores and correctly recorded
in the journals, was incorrectly posted to the creditors ledger account of
Lamb Suppliers.
(vi) The Creditors’ Control column in the Cash Payments Journal included an
amount of R2 120 paid to ZZ Distributors for cash purchases.
(vii) Merchandise of R1 285 was returned to Best Bakery and correctly entered
in the Creditors’ Allowances Journal. However, it was posted to Best
Bakery's account in the Creditors’ Ledger as a purchase.
35
INFORMATION:
A. EXTRACT FROM THE TRIAL BALANCE ON 28 FEBRUARY 2018
Balance sheet accounts section Debit Credit
R R
Vehicles (cost) 360 000
Equipment (cost) 128 000
Accumulated depreciation on vehicles (1/3/2017) 108 000
Accumulated depreciation on equipment (1/3/2017) 24 320
Note:
A new delivery motorbike, cost price R60 000, was purchased on
1 September 2017 and correctly recorded on this date.
B. DEPRECIATION
Depreciation is provided as follows:
• Vehicles: 20% p.a. on cost
• Equipment: 10% p.a. on the diminishing balance method.
MALAN TRADERS
Item Display fridge Purchased from Snowfreez Ltd
ACCUMULATED
DATE DEPRECIATION CARRYING VALUE
DEPRECIATION
3.2 INVENTORY
The information below relates to Manfred Traders for May 2018. They use the
perpetual (continuous) inventory system to record and manage trading stock.
REQUIRED:
3.2.1 Provide any ONE feature of the perpetual inventory recording system. (2)
3.2.2 Take all the relevant information into consideration to answer the questions in
your ANSWER BOOK.
(i) Provide the correct detail (contra account) for (i) on the debit side. (1)
(ii) The total cash sales for May 2018 was R79 200.
Calculate the amount for (ii) in the Trading Stock account. (2)
(iii) Stock with a cost price of R1 600 was donated to the SPCA. These
goods were marked at a special price for R2 400. The bookkeeper did
not enter this transaction. Indicate the correct double entry for this
transaction. (3)
(v) After a physical stock count on 31 May 2018, the actual value of the
trading stock on hand was found to be R1 230 less than the balance
reflected on the Trading Stock account.
Provide TWO possible reasons for the difference between these two
amounts. (4)
INFORMATION:
A. Manfred Traders use a profit mark-up of 60% on cost.
99 250
40
REQUIRED:
4.2.2 Mandy is of the opinion that she can increase her profit by reducing certain
costs. She has targeted direct material cost and factory overheads.
Suggest TWO cost reduction measures for direct material cost and ONE
measure for factory overheads, that she can introduce. (6)
INFORMATION
Mandy sells all the hamburgers that are prepared daily. Note the profit
A.
mark-up is 80% on cost.
C. OTHER EXPENSES
• Mandy's cousin, Jody is paid R2,50 per hamburger per day for making
the hamburgers.
• Cleaning materials, R120 per day.
• An extra fee to the tuck-shop cleaner; 40% of her daily allowance of
R400.
• Daily rent for using the school's tuck shop, R250.
30
5.3 The tour organising committee expects certain key players to have difficulty in
affording the minimum amount payable by each player. Suggest TWO possible
methods to acquire additional funds to support these players. (2)
INFORMATION:
A. The trip will cater for 16 players and 2 coaches. The cost of the two coaches will
be covered by the contributions made players and any other funds received.
E. ACCOMMODATION
Three rooms will accommodate the group for four nights at R1 120 per room per
night.
G. SPORTS KIT
A total of R7 390 will be spent on team outfits, netball shoes and training gear.
25
TOTAL: 150
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NOVEMBER 2018
GRADE 10
MARKS: 150
2 35
3 40
4 30
5 25
TOTAL 150
1.1.1
1.1.2
1.1.3
1.1.4 4
1.3.1 Calculate the VAT that the business must either pay or receive.
1.3.2 You discovered that the VAT amount was not being submitted on due
dates. On enquiry, it was discovered that the manager was using the
VAT money to pay for business expenses. Give ONE point of advice to
the manager and explain why you offer this advice.
ADVICE REASON
1.3.3 Mpumi, the owner, suggested to the bookkeeper that they charge VAT on
all goods sold (including the zero rated goods) but keep a separate journal
for the VAT payable to SARS.
TOTAL MARKS
20
2.1 Explain why the Creditors Control account balance and the Creditors list
total should be equal.
18
2.4 Charl wants to improve the management of his creditors. Provide TWO
internal control strategies that he can use to achieve his goal.
TOTAL MARKS
35
State ONE reason why the asset register is a useful control tool for fixed
3.1.1
assets.
6
Calculate the carrying value (book value) of vehicles on 28 February 2018.
3.1.4 The owner of Malan Traders is concerned about the management and safety
of the vehicles, despite installing security cameras.
(ii) Provide ONE control measure that Malan Traders could introduce to
improve the internal control of the vehicles.
3.2 INVENTORY
3.2.1 Provide any ONE feature of the perpetual inventory recording system.
3.2.2 (i) Provide the detail (contra account) for R1 020 for (i) on the debit side.
1
(ii) The total cash sales for May 2018 was R79 200.
Calculate the amount for (ii) in the Trading Stock account.
2
(iii) Stock with a cost price of R1 600 was donated to the SPCA. These
goods were marked at a special price for R2 400. The bookkeeper did
not enter this transaction. Indicate the correct double entry for this
transaction.
ACCOUNT DEBITED ACCOUNT CREDITED AMOUNT
3
(iv) Calculate the balance of Trading Stock on 31 May 2018.
NOTE: Include (ii) and (iii) from above.
4
(v) After a physical stock count on 31 May 2018, the actual value of the
trading stock on hand was found to be R1 230 less than the amount
reflected on the Trading Stock account. Provide TWO possible
reasons for the difference between these two amounts.
TOTAL MARKS
40
4.1.1
4.1.2
4.1.3
4.1.4 4
CALCULATIONS ANSWER
(i) Direct labour
3
(ii) Direct material
5
(iii) Factory overheads
5
(iv) Total production cost
2
(v) Cost per hamburger
2
(vi) Selling price per hamburger
4.2.2 Mandy is of the opinion that she can increase her profit by reducing
certain costs. She has targeted direct material cost and factory
overheads.
Suggest TWO cost reduction measures for direct material cost and ONE
measure for direct labour cost, that she can introduce.
Direct Suggestion 1:
material:
Suggestion 2:
Factory Suggestion 1:
overheads:
TOTAL MARKS
30
A budget is…
4
5.2.2 Total expected payments
TOTAL
12
5.2.3 The total cost to be covered by players.
3
5.2.4 The amount that EACH PLAYER has to contribute to the tour.
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Answer Book
5.3 The tour organising committee expects certain key players to have
difficulty in meeting the minimum amount payable by each player.
Suggest TWO possible methods to acquire additional funds to support
these players.
TOTAL MARKS
25
TOTAL: 150
NOVEMBER 2018
GRADE 10
MARKS: 150
MARKING PRINCIPLES:
1. Unless otherwise stated in the marking guideline, penalties for foreign items are applied only if the
candidate is not losing marks elsewhere in the question for that item (no penalty for misplaced item).
No double penalty applied.
2. Penalties for placement or poor presentation (e.g. details) are applied only if the candidate is earning
marks on the figures for that item.
3. Full marks for correct answer. If answer incorrect, mark the workings provided.
4. If a pre-adjustment figure is shown as a final figure, allocate the part-mark for the working for that figure
(not the method mark for the answer). Note: if figures are stipulated in memo for components of
workings, these do not carry the method mark for final answer as well.
5. Unless otherwise indicated, the positive or negative effect of any figure must be considered to award
the mark. If no + or – sign or bracket is provided, assume that the figure is positive.
6. Where indicated, part-marks may be awarded to differentiate between differing qualities of answers
from candidates.
7. Where penalties are applied, the marks for that section of the question cannot be a final negative.
8. Operation means 'check operation'. 'One part correct' means operation and one part correct. Note:
check operation must be +, -, x, ÷, or per memo.
9. 'One part correct' means ‘operation and one part correct’. Where method marks are awarded for one
part correct, the marker must inspect the reasonableness of the answer and at least one part must be
correct before awarding the mark. If a figure has earned a method-mark, this will be regarded as ‘one
part correct’.
10. In calculations, do not award marks for workings if numerator and denominator are swapped – this also
applies to ratios.
11. In awarding method marks, ensure that candidates do not get full marks for any item that is incorrect at
least in part. Indicate with a .
12. Be aware of candidates who provide valid alternatives beyond the marking guideline.
13. Codes: f = foreign item; p = placement/presentation.
These marking guidelines consist of 12 pages.
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Marking guidelines
1.1.1 False ✓
1.1.2 False ✓
1.1.3 True ✓
1.1.4 True ✓ 4
1.3.1 Calculate the VAT that the business must either pay or receive.
1.3.2 You discovered that the VAT amount was not being submitted on due
dates. On enquiry, it was discovered that the manager was using the
VAT money to pay for business expenses. Give ONE point of advice to
the manager and explain why you offer this advice.
ADVICE ✓✓ REASON ✓✓
He must submit the VAT collected Failure to do so will result in SARS
directly to SARS on due dates. investigating and imposing penalties.
He must not use the money for any He is an agent of SARS – money
other purposes. collected does not belong to
him/business.
Using SARS money means he has a
cash flow problem which he is not
solving. 4
1.3.3 Mpumi, the owner, suggested to the bookkeeper that they charge VAT on
all goods sold (including the zero rated goods) but keep a separate
journal for the VAT payable to SARS.
Possible responses:
• A supermarket will sell zero rated products and they are not allowed to
charge VAT on these goods. (illegal/unethical).
• Fraud. Want to disadvantage customers by using SARS as a front.
• If they are caught, they will be fined; may have to close down; lose
customers.
• Keeping a separate journal implies they want to deliberately defraud the
customers and give SARS the false impression of their income.
2
TOTAL MARKS
20
2.1 Explain why the Creditors Control account balance and the Creditors list
total should be equal.
Valid explanation ✓✓
The control account and the individual creditors accounts are updated from the
same set of documents and the same journals.
Information from the journals relevant to creditors are posted to the control
accounts. The same information is posted to the individual creditors ledger
accounts.
2
ZZ Warehouse: The zero can be indicated in either the debit or credit column.
TOTAL MARKS
35
State ONE reason why the asset register is a useful control tool for fixed
3.1.1
assets.
6
Calculate the carrying value (book value) of vehicles on 28 February 2018.
R174 000 two marks
Carrying value: R360 000 - (R108 000 + R66 000 see calculation above
= R186 000 Operation; One part correct
4
3.1.4 The owner of Malan Traders is concerned about the management and safety
of the vehicles, despite installing security cameras.
(ii) Provide ONE control measure that Malan Traders could introduce to
improve the internal control of the vehicles.
3.2 INVENTORY
3.2.1 Provide any ONE feature of the perpetual inventory recording system.
3.2.2 (i) The detail (contra account) for R1 020 on the debit side.
Cost of Sales
1
(ii) The total cash sales for May 2018 was R79 200. Calculate the amount
to be entered in the Trading Stock account.
2
(iii) Stock with a cost price of R1 600, was donated to the SPCA. These
goods were marked at a special price for R2 400. The bookkeeper did
not enter this transaction. Indicate the correct entry in the Trading
Stock account.
TOTAL MARKS
40
CALCULATIONS ANSWER
(i) Direct labour
(30 x 10)
300 ✓ hamburgers x R2,50
R750
3
(ii) Direct material
375 two marks Operation
2 680 + (25 x 15 ) + 165 R3 220
5
(iii) Factory overheads
(400 x 40%) Operation
120 + 250 + 160 ✓ R530
5
(iv) Total production cost
Inspection
R750 + R3 220 + R530 (see answers above)
R4 500 ✓
2
(v) Cost per hamburger
(see iv)
4 500 ÷ 300 R15
2
(vi) Selling price per hamburger
See (v) (or 1.8) one mark
R27
R15 x (180 / 100)
3
4.2.2 Mandy is of the opinion that she can increase her profit by reducing
certain costs. She has targeted direct material cost and factory
overheads.
Suggest TWO cost reduction measures for direct material cost and ONE
measure for direct labour cost, that she can introduce.
Direct Suggestion 1:
material: Look for cheaper suppliers
Prepare hamburgers to order / provide a choice of lettuce,
✓✓ ✓✓ tomatoes or sauces.
Suggestion 2:
Negotiate discounts with suppliers
Look at more cost-effective production methods / Reduce
wastage
Factory Suggestion 1:
overheads: Negotiate a reduced rate to pay the cleaner or use your staff
to clean (keep the place tidy).
✓✓ Look for a cheaper premises /Negotiate a lower rent
Prepare burgers to order to reduce cost of electricity.
6
TOTAL MARKS
30
A budget is…
• a financial plan of expected receipts and payments
• planning the receipts and payments for a period in the future
• assessing expected receipts and payments and managing cash.
2
TOTAL 33 000
one part correct
12
5.2.3 The total cost to be covered by players.
see 5.2.1 see 5.2.2 R12 000
33 000 - 21 000 (one part correct)
(3) 3
5.2.4 The amount that EACH PLAYER has to contribute to the tour.
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Marking guidelines
5.3 The tour organising committee expects certain key players to have
difficulty in affording the minimum amount payable by each player.
Suggest TWO possible methods to acquire additional funds to support
these players.
Any TWO valid suggestions
Possible responses:
TOTAL MARKS
25
TOTAL: 150