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2018 GR 10 Case Study Ab

This document contains an answer book for a grade 10 accounting case study. It addresses various topics related to fixed assets, interpretation of financial information, and improving returns. Key points covered include depreciation policies for different asset categories, calculating depreciation, maintaining asset registers, considering delivery services, analyzing loan balances and profitability, assessing solvency, and suggestions to improve returns. The total marks for the case study answer is 100, converting to a score of 50.

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0% found this document useful (0 votes)
28 views4 pages

2018 GR 10 Case Study Ab

This document contains an answer book for a grade 10 accounting case study. It addresses various topics related to fixed assets, interpretation of financial information, and improving returns. Key points covered include depreciation policies for different asset categories, calculating depreciation, maintaining asset registers, considering delivery services, analyzing loan balances and profitability, assessing solvency, and suggestions to improve returns. The total marks for the case study answer is 100, converting to a score of 50.

Uploaded by

bonolomoloi931
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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GRADE 10 ACCOUNTING: TERM 3 CASE STUDY

ANSWER BOOK

Name: Grade

PART A: FIXED ASSETS

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.

1.2 WORKINGS ANSWER


Calculate: Depreciation on vehicles:

Calculate: Depreciation on equipment:

16

1
1.3 GENERAL LEDGER OF ZUKS HARDWARE

EQUIPMENT (B6)
2017
1 Balance b/d
Mar

ACCUMULATED DEPRECIATION ON VEHICLES (B7)


2017
1 Balance b/d
Mar

DEPRECIATION (N11)

15
1.4

FIXED ASSET REGISTER

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.

PART B: INTERPRETATION OF FINANCIAL INFORMATION

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.

TOTAL MARKS : 100

CONVERTED TO: 50

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