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Grade 10 Acc Test

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0% found this document useful (0 votes)
44 views5 pages

Grade 10 Acc Test

Uploaded by

Shakexz Ngququ
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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QUESTION 2: CONCEPTS AND STATEMENT OF COMPREHENSIVE INCOME

(60 marks; 50
minutes)

2.1 CONCEPTS

Choose one concept from the list provided for each explanation below.
Write only the concept next to the question number (2.1.1 - 2.1.5) in the
ANSWER BOOK.

Going concern, materiality, historical cost, matching, prudence, GAAP

2.1.1 A debt has been written off as bad even though the debtor is not
insolvent yet.
2.1.2 An office is rented to a tenant at R2 000 per month. The
business has received R26 000 for the year, but only shows
R24 000 as income for the year.
2.1.3 Although the cost price of stock fluctuates constantly, it is
recorded at the actual price paid for it because it is assumed that
it will be sold some time in the future.
2.1.4 These principles make it possible to compare the financial results
of different businesses.
2.1.5 Interest on overdraft must not be shown as a bank charges. (5)

2.2 KAYB STORES

The information provided is from KAYB Stores for the financial year
ended 28 February 2023. The business uses a mark-up of
100% on cost

REQUIRED:

2.2.1 Prepare the Statement of Comprehensive Income (Income


Statement for the year ended 28 February 2023. (48)

2.2.2 Prepare the Interest Income note. (7)

PRE-ADJUSTMENT TRIAL BALANCE ON 28 FEBRUARY 2023

Balance sheet account section DEBIT CREDIT


Vehicles 725 000
Equipment 139 400
Accumulated depreciation on vehicles 275 000
Accumulated depreciation on equipment 23 750
Fixed deposit: ABC Bank (9%) 50 000
Loan: XYZ Bank 100 000
Trading inventory 95 670
Nominal account section
Sales 993 500
Cost of sales 488 925
Debtors’ allowances 15 650
Water and electricity 13 511
Salaries and Wages 218 100
Advertising 24 000
Bad debts 2 447
Bank charges 14 250
Commission income 37 500
Communication expenses 21 222
Discount received 7 250
Insurance 13 200
Interest on loan 12 000
Interest on fixed deposit 4 125
Interest on current account 625
Interest on overdue debtors 980
Packing material 16 196
Rent income 101 100
ADJUSTMENTS AND ADDITIONAL INFORMATION:

A. A debtor, R. Hoven, has owed the business R1 800 for more than
60 days. The business decided to charge his account with R24
interest.
B. No entry has been made for a credit note issued to the debtor,
Sally Bam, for unsatisfactory goods returned by her to the amount
of R2 500.
C. Commission of R2 500 is still receivable on 28 February 2023.
D. The amount of R4 000 was paid advertising in the local newspaper.
It is for February and March 2023.
E. The February 2023 Bank Statement, showed the following which
was not entered in the books yet:
• Debit order for R850 for insurance
• Bank charges, R350
• Interest received for R65.
F. Interest is still owing on the fixed deposit. R20 000 of the fixed
deposit will mature on 31 March 2024.
G. On 1 December 2022 the rent increased with 12%. The rent for
March 2023 has been received. The rent amounted to R8 400.
H A debtor, K van Heerden, owes the business R1 050. She has
been declared insolvent. She paid the business R420 on 28
February 2023. Write the rest of as irrecoverable.
I. Depreciation must be provided as follows:
Vehicles:
• Take into account that a new vehicle costing R300 000 was
bought
on 1 June 2022.
• 20% p.a. on the diminishing balance method.

Equipment:
• Wrote R9 480 depreciation off for the year.
J A physical stock count on 28 February 2023 revealed the following
on hand:
• Trading Stock R92 700
• Packing material R 1 800
60

QUESTION 2

2.1 Choose one concept from the list provided for each explanation below. Write
only the concept next to the question number (2.1.1 - 2.1.5) in the answer book.

2.1.1
2.1.2
2.1.3
2.1.4
2.1.5 5

2.2.1 KAYB STORES


STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED
28 FEBRUARY 2023

Sales (993 500


Cost of sales
Gross Profit
Other income

Gross operating income


Operating expenses
Water and electricity 13 511
Salaries and wages 218 100

Operating profit

Profit before interest expense

Net profit for the year

48

2.2.2 INTEREST INCOME

TOTAL MARKS

60

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