2018 GR 10 Case Study Ab
2018 GR 10 Case Study Ab
ANSWER BOOK
Name: Grade
1.1 Explain why the business would use different depreciation policies for the
different categories of fixed assets.
3
Taking into account that equipment comprises of furniture and other electronic
equipment such as fax machines and computers, do you agree with the
depreciation policy for equipment? Explain. Provide TWO reasons.
16
1
1.3 GENERAL LEDGER OF ZUKS HARDWARE
EQUIPMENT (B6)
2017
1 Balance b/d
Mar
DEPRECIATION (N11)
15
1.4
ACCUMULATED CARRYING
DATE DEPRECIATION
DEPRECIATION VALUE
2
1.5 Zuks wants to offer a free delivery service to clients within a certain km radius of the
business.
Provide THREE points that he should consider before taking this decision.
6
What advice would you offer him? Provide ONE point.
2.1 Sandy was concerned that the business may have to close down due to the high loan
balance. Was she justified? Explain.
2
Identify TWO steps she has taken to address her concern and provide a reason for each.
4
Comment on the solvency of the business.
2.2 Sandy is convinced that all goods were marked up by 50% on cost. She is confused as to why
the profit is so low. Provide TWO reasons/explanations. Make reference to the percentage
achieved.
3
2.3 Will Sandy be able to pay the creditors in the next financial year? Explain. Make reference
to TWO financial indicators.
11
2.4 Sandy feels that her return on investment in the business is not what she expected and
regrets not investing in a fixed deposit.
Explain why you think she feels this way.
7
Provide TWO suggestions that she can use to improve her returns.
CONVERTED TO: 50