24 2024

111111111"' THE
INDEPENDENT
... rNSTITUTE °F
1111EDUCATION
MODULE NAME: MODULE CODE:

ACCOUNTING 18 ACBPS122/p/w

ASSESSMENT TYPE: EXAMINATION (PAPER & MEMORANDUM)

TOTAL MARK ALLOCATION: 180MARKS

TOTAL HOURS: 3 HOUR (+10 minutes reading time)

INSTRUCTIONS:
1. Please adhere to all instrvctions in the assessment booklet.
z. Independent work is required.
3. Ten minutes is dedlcoted to reading time before the start of the assessment. You may
make notes on your question paper, but not in your answer sheet. Calculators may not
be used during reading time.
4. You may not leave the assessment venue during reading time, or during the first hour or
during the lost 15 minutes of the ossessment.
5. Ensure that your name is on all pieces of paper or books that yov will be svbmitring. Submit
all the pages of this assessment's qvesrion paper as well as yovr answer script.
6. Answer all the questions on the answer sheets or in answer booklets provided. The phrase
'END OF PAPER' will appear after the final set question of this assessment.
7. Remember to work at a steady pace so rha t yov are able to comp/ere the assessment within
the allocated time. Use the mark allocation as a guideline as to how mvch time to spend on
each section.

Additional instructions:
1. This is o CLOSED BOOK assessment.
2. Calcvlators are allowed.
3. Ensure that you have received a special answer booklet (with forms drawn vp) for entering
your answers. If you have not received an answer book/er, request one from the invigilator
before starting rhe assessment. Answer gJJ_ qvestions in rhe answer book/er provided.
4. DO NOT WORK IN PENCIL- USE BLACK OR BLUE PEN ONLY.
5. SHOW ALL CALCULATIONS.
6. ROUND ALL CALCULATIONS TO THE NEAREST RAND, WHERE APPLICABLE.

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Question 1 {Marks: 15)

The following information was extracted from the records of Rosewood Close Corporation for bank
reconc.iliation purposes:

1 Bank statement balance on 30 June 2024: R56 800 (credit)

2 The balance in the bank general ledger account before any adjustments was R81 041 {debit)

at 30 June 2024.

3 The following item in the May 2024 bank reconciliation statement did not appear in the

June 2024 bank statement:

Deposit: R Clarendon Rl 500

This is related to a deposit made by R Clarendon into the incorrect bank account. The bank

has still not reversed this deposit.

4 EFT Payment (EFTCS#259) for R12 500 appeared in the cash book payments in June but did

not reflect on the June bank statement.

5 The following deposits on 28 June appeared in the cash book receipts but not in the

bank statement:

• DS241: R14 500

DS242: R21500

6 Deposit slip DS231for Rll 000, dated 8 June 2024 appeared on the bank statement as

Rll 199. The bank statement was incorrect.

7 Items reflected on the June bank statement which did not appear in the June cash books:

Bank charges, R300.

A direct deposit of R2 000, made by debtor R. Singh.

A debit order of Rl 400 in favour of Telkom for the telephone account.

Stop order: insurance: R2 750

Interest on credit balances R250.

Bank overdraft fee: R240

The accountant of Rosewood Close Corporation queried the overdraft fee as they do not

have an overdraft facility. The bank has agreed to reverse this in July.

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Required:

Q.1.1 Prepare the bank reconciliation statement for Rosewood Close Corporation as at (13)

30 June 2024.

Q.1.2 Give one example each from the above reconciling items of a(n) (2)

Q.1.2.1 Adjusting difference

Q.1.2.2 Timing difference

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Question 2 (Marks: 25I

Padel Action has received the June 2024 statement from a creditor, BT Rackets. The creditors clerk

of Padel Action has compared the statement received to BT Rackets' individual account in the

creditors ledger and found some differences.

Padel Action uses the perpetual inventory system and both businesses are registered VAT vendors.

BT RACKETS
STATEMENT
Bill to: Date: 26/06/2024
Padel Action
Action Sports Club
Cape Town
7045
Date Details Debit (R) Credit (R) Balance (R)

20 24Junc 1 Opening Balance 35 800

2 PaymentThank you 34 010 1 790

Discount allowed 1 790 0

4 Invoice No 562 2 1 050 21 050

11 Credit note CN63 1 863 19 187

13 Invoice No 571 7544 26731

18 PaymentThank you 10 00 5 16 726

23 Invoice No 582 14 375 31 101

25 Credit note 6 9 221 30880

26 Invoice No 588 16 800 47680

Current Bala nee 47 680

Terms: 30 days
5% Settlement discount if payment is received within 25 days of Invoice

date.

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Creditors ledger of Padel Action

Account: BT Rackets

Date Document No Fol. Debit (R) Credit (R} Balance (R)

June

2024

01 Balance brought forward 35 800

01 EFTCS#591 CBP 34 010 1 790

05 Invoice INVS62 CJ 21 sos 23 295

11 Credit note CN63 CAJ 1 863 25158

13 Invoice INVS71 CJ 7 544 32 702

17 EFTCS#631 CBP 10 005 22 697

23 Invoice INV582 CJ 12 500 35 197

25 Credit note CN69 CAJ 212 34 985

28 EFTCS#644 CBI> 10 925

I 24 060

28 Journal Voucher JV16 GJ 575

I 23 48S

Additional information:

1. i>adel Action forgot to record in the Creditors Ledger the 5% discount allowed by BT Rackets

when making their payment on 01 June 2024.

2. BT Rackets captured invoice No. 562 at the incorrect amount.

3. The creditors clerk made an error in posting Credit note CN63 from the Creditors Allowance

Journal.

4. Padel Action entered invoice No. S82 at the VAT exclusive amount in the Creditors Journal and

posted it as such. The entry to the Trading inventory account had been posted correctly.

5. Padel Action captured credit note CN69 at the correct amount.

6. The payment on the 17 June of R10 005 is in part payment of invoice IN562.

7. Invoice No. 588 is not for the account of Padel Action. BT Rackets should have recorded this in

the account of Action SA Padel, another customer of theirs.

8. On 28 June 2024 Padel Action decided to settle the balance outstanding on invoice INS62

early and claimed the 5% settlement discount offered by BT Rackets (refer to No. 6 above}.

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Required:

Complete the following in the books of Padel Action on 1 July 2024:

Q.2.1 Prepare the general journal entries required for the adjustments reflected in the (10)

additional information points l and 4.

Narrations are not required.

Q.2.2 Prepare BT Rackets' individual account in the Creditors ledger of Padel Action as at (7)
01 July 2024, showing all adjustments.

Q.2.3 Prepare the Creditors reconciliation statement (r emittance advice} for BT Rackets as (8)
at 1 July 2024.

Note: Show all your workings and round all answers t o the nearest rand.

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Question 3 {Marks: 25)

Eagle Couriers started business on 1 March 2021. Five identical delivery vans to make deliveries

were purchased on 1 March 2021 at a total cost of R660 000. Land and buildings to the value of

R1 200 000 was also purchased at the time. The following balances were extracted from the general

ledger for the year ended 28 February 2023.

Land and Buildings Rl 200 000

Vehicles R660 000

Accumulated depreciation: Vehicles R288 750

All vehicles are depreciated at 25% p.a on the diminishing balance method. Land and Buildings are

not depreciated.

Eagle Couriers is not VAT registered.

During the financial year ended 29 February 2024, Eagle Couriers undertook the following

transactions:

31/07/2023 Purchased three delivery scooters at a cost of R18 000 each on credit from Big Bikes.

31/10/2023 Sold one of the delivery vans purchased on 1/03/2021 for R60 000 on credit.

Required:

Q.3.1 Record!![ the entries relating to the disposal of the delivery van in the general (19)
journal. Narrations are not required. Show all your workings as marks will be
allocated.

Q.3.2 Calculate the total depreciation expense for the year ended 29 February 2024. (6)

Show all your workings.

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Question 4 (Marks: 45)

The following information was taken from the books of Stonewall Traders, a sole trader owned and

run by David Stone, at the end of the financial year:

Pre-adjustment trial balance of Stonewall Traders as at 30 June 2024

R R

Statement of financial position section

Capital 486 760

Drawings 36 100

Land and Buildings 900 000

Equipment 450 000

Accumulated depreciation: equipment 175 000

Inventory 154 000

Deposit received from tenant 12 300

Debtors Control 53 500

Creditors Control 86 500

Loan: SA Finance 366 000

Bank so 000

Nominal accounts section

Sales 5 680 200

Sales returns 25 800

Cost of Sales 4 545 160

Advertising 65 000

Credit losses 5 400

Electricity and water 43 200

Insurance 40 500

Printing and stationer y 23 630

Rent Income 64 000

Salaries and Wages 547 470

Telephone 31 000

6 920 760 6 920 760

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Additional information and adjustments still to be processed:

1. The bank reconc.iliation process at year-end revealed that:

A deposit slip relating to cash sales had been totalled incorrectly by the accountant as

R14 500 instead of R24 500 and captured as such in the cash book receipts. The

incorrect amount was also captured in the sales column of the cash book receipts. You

may ignore any VAT implications.

JOT Builders, a debtor previously written off as a bad debt, paid R600 by direct deposit

on 30 June 2024. This deposit does not appear in the cash book receipts but reflects on

the bank statement.

2. According to a physical stock-take, the following was on hand on 30 June 2024:

Trading Inventory R149 000.

Stationery R3 400.

3. Depreciation of 25% p.a on cost for Equipment must still be taken into account. There have

been no additions or disposals of equipment during the year.

4. The July 2024 insurance premium of R3 300 was paid and accounted for on 29 June 2024.

5. Stonewall Traders has rented out a section of their warehouse to a tenant from the

01 March 2024. The monthly rental is R12 800 and is payable monthly in advance.

The tenant had paid a deposit of R12 300 which is reflected as a current liability in the trial

balance above.

6. Interest on the loan is calculated at 11% per annum. The loan was negotiated and received on

1 June 2024. No capital and interest payments have been made to date. Monthly repayments

of R7 500 are due from 1 July 2024 {the following financial year). (Use 366 days for interest

calculations.)

7. An allowance for credit losses for R3 100 must be created.

8. An amount of R2 500 for an advertisement that was published on 20 June 2024 has not been

accounted for yet.

Required:

Q.4.1 Prepa re the Statement of profit or loss and other comprehensive income of (28)

Stonewall Traders for the year ended 30 June 2024.

Q.4.2 Prepare ONLY the Equity and Liabilities section of the Statement of Financial (12)

Position as at 30 June 2024.

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Q.4.3 Prepare the note for Trade and other payables as it would appear in the Financial (S)
Statements for the year ended 30 June 2024.

Question 5 (Marks: 20)

T. Reusch and B. Meyers are in partnership in a cleaning supplies business. The following information

is available from the partnership's accounting records as at 30 June 2024, the financial year·end.

--
OR Current account: T Reusch CR

Date Details Fol Amount Date Details Fol Amount

2024 Interest on drawings GJ 565 2023 Balance b/d so 600

June July 1
30
Drawings: T Reusch GJ 15 400 2024 Interest on capital GJ 42 000
June
30
Appropriation GJ 11360 Interest on current GJ 4 048
account
Balance c/d 387 323 Salary: T Reusch GJ 318 000

414 648 414 648

2024 Balance b/d 387 323

July 1

I
OR Current account: 8 Meyers CR

Date Details Fol Amount Date Details Fol Amount

2023 Balance b/d 12 000 2024 Interest on capital GJ 32 500

I�
July 1 June
30
2024 Interest on GJ 469 Salary: B Meyers 300 000
June drawings
30
Interest on current GJ A
account
Drawings: B Meyers GJ 12 800

Appropriation GJ 17 040

Balance c/d B I
332 500 332 500

2024
July
1
Balance
I b/d B

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Additional information:

1. Interest on capital is calculated as 10% p.a. on a pro-rata basis. There have been no changes to

the capital balances during the year. The capi'tal balances for the partners at 1 July 2023 were:
T Reusch: R420 000 and B Meyers: R325 000.

2. Interest on current accounts is cakulated at 8% p.a. on credit opening balances and 9% p.a. on

debit opening balances.

3. Interest on drawings is calculated at 11% p.a._, as if the drawings were made four months

before the year end.

The balance on the General reserve account was R250 000 as at 1 July 2023. At year end the

partners dec,ided to transfer an additional RSO 000 to the reserve.

Required:

Answer the following questions based on the information provided above.

Q.5.1 Did the partnership make a profit or loss after appropriations during the current (1)
year?

Q.5.2 Briefly give a reason for your answer in Q.5.1 above. (2)

Q.5.3 Calculate the ratio the partners used to determine the allocation of the profit/loss (5)
after appropriations at the end of the financial year. Your answer must make it dear

as to which partner the ratio applies.

Q.5.4 In terms of the partnership agreement, the partners are being charged a higher (3)
interest rate on debit current account balances than on credit current account

balances. Briefly explain why the partners would have decided to charge a higher

interest rate on debit balances.

Q.5.5 Calculate the interest on the current account for B. Meyers (A). Show all your (2)
workings.

Q.5.6 Calculate the balance of the current account for B. Meyers (BJ if the balance before (2)
taking into account the interest calculated in Q.S.S was R290 191.

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Q.5.7 Using the information in the question above, calculate the total partnership equity (4)

balance in the Statement of Financial position for the year ended 30 June 2024.

Q.5.8 What happens to the partnership upon the death of one of the partners? (1)

Question 6 (Marks: 25}

Greytown CC is a close corporation with two members, F. Zomu {40% mem bers' interest) and

R. Radebe (60% members' interest). The following information has been extracted from the books of

Greytown CC for the financial year ended 30 September 2024:

Loan from F. Zomu 52 000

Loan to R. Radebe 46 800

Members' contributions 80500

Retained income (1/10/2023) 456 900

Net profit after taxation (after all adjustments) 478 880

Distribution to members 65 800

Additional information:

1. Interest on loans from members is 10% per annum on a pro-rata basis.

2 Interest on loans to members is 9 % per annum on a pro-rata basis.

3 R. Radebe received an additional loan of RlO 000 on 1 July 2024.

4 For the current financial year, the members rec.eived monthly salaries of:

F. Zomu: R26 000

• R. Radebe: R24 000

5 The close corporation rented additional storage from R. Radebe for RS 000 per month from

1 March 2024.

Required:

Q.6.1 Prepare the Loan to Members note to the annual financial statements for the year (4)
ended 30 September 2024 (the total column is not required).

Q.6.2 Prepare the Transactions with Member's note to the Annual Financial Statements for (12)
the year ended 30 September 2024 {the total column is not required).

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Q.6.3 Calculate the retained income balance at 30 September 2024. (3)

Q.6.4 If a new member, S. Naidoo, purchases a 20% interest in the close corporation on (6)
01November 2024, what would the new members' percentage interests be for each

of the three members?

Question 7 IMarks:25)

Rawlins Traders buys and sells a variety of products. At the end of the year, the business burnt down

and most of the accounting records were lost in the fire. The book keeper was able to determine the

information below from reports stored offsite and now needs assi stance in preparing the year-end

financial accounts for Rawlins Traders for the year ended 30 September 2024.

Rawlins Traders is not a registered VAT vendor.

Balances as at 1 October 2023 Balances as at 30 September 2024

{R) {R)
Inventory 28 700 31400

Debtors 80 400 9S 460

Creditors 74900 68 680

Sank 125 000 95 600

The following transactions relating to debtors and creditors took place during the year:

{R)
Purchase of merchandise on credit 845 000

Purchase of a vehicle on credit 250 600

Cash refunds given to cash sale customers 6400

Returns by credit sale customers 14 500

Returns of merchandise to c.reditors 8 620

..
Cash receipts from customers:

Cash sales of merchandise 129 600

768 900
Payment of accounts by debtors

Settlement discount granted to Debtors 7 600

Debtors declared insolvent and written off 4 300

Settlement discount received from creditors 5460

© The Independent Institute of Ed1.tc.c1tlon (Pt'() ltd 202�

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Required:

Q.7.1 Prepa re the Creditors control account in the general ledger and calculate the (8½)

amount paid to creditors during the year ending 30 September 2024.

Q.7.2 Prepare the Debtors control account in the general ledger and calculate the credit (8½)

sales for the year ending 30 September 2024.

Q.7.3 Calculate the gross profit for Rawlins Traders for the year ended 30 September 2024. (8)

Note: Show all your workings.

ENO OF PAPER
MEMORANDUM

General instructions to markers:

For theory questions: Verbatim answers are not required, nor desired. Allow students to use their

own words. Award marks if students have demonstrated an understanding of the required.

Calculations: For questions where calculation of amounts is required, if the student does not show

workings but gets the amount correct, award all marks for that amount, including calculation

marks. If the answer is incorrect, award marks as indicated. If the student does not show

workings, then no marks can be awarded.

General Journal entries: To get the Details mark, the account name and action must be correct. To

get the amount mark, the account name need not be correct, bur the amount must be correct.

Memorandum: Question 1 (Marks:15)

Ref: Wl

M.1.1 Award marks as indicated. If the student has added or subtracted the amounts (13)

correctly without saying "Add" or "less", but has brackets around the amounts to

be subtracted, award the marks allocated for that. If it is not possible to determine

the operation used by the student, the marks may not be awarded. For the final

answer, one method mark is allocated as well as one mark for having the correct

amount.

Rosewood CC

Bank reconciliation statement at 30 June 2024

I (R)

I Favourable balance as per bank statement(½)

I 56 800 (1)

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..
Add Outstanding deposits

DS241 (½) 14 500 (1)

21 500 (1)
DS242 (½)

less outstanding payment: EFTCS#259 (½) (12 500) (1)

Add: Bank overdraft fee- incorrectly charged (½) 240 (1)

less Incorrect deposit- R Clarendon (½) (1 500) (1)

less: Deposit slip (DS231) overstated by bank (½) (199) (1)

Favourable bank balance as at 30 June 2024 (½) 78 841 (1) (lM)

M.1.2.1 Accept any one of the reconciling items in No.7 of the question except for the (1)

bank overdraft fee.

Bank charges, R300.

A direct deposit of R2 000, made by debtor R. Singh.

A debit order of Rl 400 in favour of Telkom for the telephone account.

Stop order: insurance: R2 750

Interest on credit balances R2S0.

Note: Marker's discretion to be used for the description of the adjusting

difference but it must be dear to which difference the student is referring to.

M.1.2.2 Outstanding deposits - DS241 OR DS242 or outstanding payment: EFTCS#259 (1)

Memorandum: Question 2 (Marks: 25)

Ref:W2

Note for Question M2.l • refer to the general instructions to markers. For Question M2.2, the

amount must be correct and in the correct column to be awarded the amount mark. Amount does

not need to be in the correct column for the details marks to be awarded. Marker's discretion to be

used for the details. No marks for folio references. Allow for rounding differences.

M.2.1 (10)

Doc Day I
General Journal of Padel Action for July 2024
Details Fol. Debit(R) Credit(R)
No.
JV 1 I Creditors Control (½) (BT Rackets) (½) 1 790 (1)

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Trading Inventory (1) 1 557 (½M)

Output VAT (1) 233(½M)

JV l Input VAT (1) 1875 ( lM)

Creditors Control (½) (BTRackets) (½)

(Rl4375 (½)·Rl2 500 (½)) .Q£

(Rl2 500(½) xl5/100(½)) 1875 (1)

M.2 .2 ( 7)
Creditors Ledger of Padel Action
BTRackets
Date Document No Fol. Debit (R) Credit (R) Balance (R)

July 2 02 4 Balance brought forward 23 485(½)

01
01 Correction- discount allowed GJ 1 790 (½M) 21 6 95

(1)

01 Correction of posting error• n/ a 3 726 17969

CN6 3 (1)

(Rl 863 (½) +Rl 863(½))

01 Correction- invoice 582 (1) GJ 1875 (½M) 19844 (1) (½M)

M.2.3 Marker's nate: Students do not need to say" ADD" or "Less" to be awarded the (8)

marks for details. If the action is incorrect, the s tudent may only be awarded the

details and calculation marks and not the marks for the amount. Marker's discretion

to be used for the details but it must be clear from the details what the reconciling

item relates to.

Reconciliation Statement ( remittance advice) for BTRackets

Details Amount (R )

Balance as per statement dated 30 June 2024 47 680(½)

Add: Undercharge on invoice INV 56 2 (½) (R21 505(½)-R2 1 050 (½)) 455(½M)

Add: Credit note CN69 at incorrect amount(½) (R221(½)-R212(½)) 9 (½M)

Less: Invoice No. 588 debited to incorrect account (½) (16 800)(½)

Less Payment and discount not recorded (½) (RlO 925(½) +R575(½)) (11 500)* (½M)

EFT Payment 19844 (½)**

• Accept if recorded as two separate amounts. Do not exceed the maximum marks for this entry.

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•• Accuracy mark.

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M emorandum: Question 3 (M arks: 25)

Ref:W3

Award marks as indicated.

Refer ta the general instructions to markers with regard to the General journal and calculations. If

the student only says "Accumulated depreciationll for JVSl&JVSB, award½ marks for the details,

provided the action is correct.

M.3.1 (19)

General Journal of Eagle Couriers

Fol Debit (R) Credit (R)

Asset Disposal (½)•WK l 132 000 (½M)

Vehicles (1) 132 000(½)

Depreciation (1) W
• K2 123 75(½M)

Accumulated depreciation on 123 75(½M)

vehicles (1)

Accumulated depreciation on 70125 (½)

vehicles (1) -WK3

Asset disposal(½) 70125(½M)

Debtors Control (1) 60 000(½)

Asset Disposal(½) 60 000(½)

Loss on disposal of vehicle (1) • WK4 1 875(½M)

1 875(½)

Workings: (Total marks= 6):

WK1 : R660 000(½) / 5 (½) =R132 000

WK2: R288 750 (½)/ 5 (½)=R57 750

(R132 000 (½M) -R57 750) X 25/1 00 (½) X 8/12 (½) =Rl2 3 75

WK3 : R57 750 (½M) + R123 75(½M) =R70125

WK4: R60 000 (½) • (Rl32 000 (½M)· R70 125 (½Ml) =Rl 875

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M.3.2 (6)

New vehicle RlS 000 (½) x 3 (½) .x 25/100 (½) x7/12(½) = R7 875

"Remaining vehicles" [(R660 000{½) -R132 OOO(½M)) - (R288 750(½) - R74 250

R57 750 (½M))] x 25/100(½) =

Vehicle sold R12 375 (½M •]

Depreciation expense
I R94 500 (lM]

Note to morkers: Student may set out their answer in any format.

• Far the method mark ta be awarded here, the amount must agree to the student's workings in

M.3.l

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Memorandum: Question 4 {Marks:45)

Ref:W4
To receive the marks far the amounts, the amount must be in the correct section of the Statement
of Profit and La$$ {M.4.l} or Statement of Financial Position (M.4.2). If the account is in the
incorrect section of the Statement, award only calculation marks. If the student does not show
workings but the calculated amount is correct, then full marks for that amount must be awarded.
If the amount is incorrect, and calculations are shown, then award marks as indicated.

M.4.1 Statement of Profit or loss and other comprehensive income of Stonewall Traders (28)

for the year ended 30 June 2024

R R
Revenue (RS 680 200 (½) -R25 800 (½)+ R10 000 (1)) 5 664 400 (½M)
r
Less: Cost of sales

(R4 545 160 {½)+ {Rl54 000(½)-Rl.49 000(½)) (4 550 160) {½M)

Gross profit
1 114 240

Add: Other income 51 800 (1)

Rent Income

(R12 800 (½) x 4 {½) ) QI'. (R64 OOO(½)-R12 800(½)) 51 200 (½M)

Credit losses recovered (½) 600 (1)

Gross Income l 166 040 (lM) + (1)

Less: Distribution, administrative and other expenses (867 600) (1M)

Advertising (R65 000 (½)+R2 500(½)) 67 500 (½M)

Credit losses 5 400(½)

Electricity and water 43 200(½)

Insurance (R40 SOO(½)-R3 300(½)) 37 200 (½M)

Printing and stationery (R23 630 (½)-R3 400(½)) 20 230 (lM)

Salaries and wages 547470(½)

Telephone 31 000(½)

Depreciation {R450 000 (½) x25/100 (½) ) 112 500 (lM)

Allowance for credit losses adjustment (1) 3 100(1)

Profit before finance costs 298 440 (½M) + (½)

Less: interest expense

(R366 000 (½) x30/366{½) xl1/100 (½)) (3 300) (lM)

Total comprehensive income for the year 295 140 (1M) + (1)

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M.4.2 Statement of Financial Position of Stonewall Traders as at 30 June 2024 (12)

R R

Equity and liabilities

Owner's Equity (½)

(R486 760(½) • R36 100(½) + R295 140 (½M)) 745 800 (lM)

Non-Current liabilities
276 000

Long term borrowings (R366 000(½) • R90 0O0(½M))

276 000 (1)

Current liabilities
246 800(1M)

Short-term portion of long-term borrowings (½)

(R7 500(½) x12(½)) 90 000 (½M)

Trade and other payables

117 400 (½M*)
Bank overdraft (R50 000(½)-RlO 000(½)-RG00(½))
39 400(1)

1 268 600 (½M) + (½)

Note • Amount here must ogree to totol of M.4.3

M.4.3 Trade and other payables (5)

R

Trade creditors(½) 86 500(½)

Accrued expenses (½)

(Interest on loan: R3 300(½M) + Advertising: R2 500(½)) 5 800

Income received in advance (Rent Income)(½) 12 800(½M)

Deposit received from tenant

12 300(½)

117 400 (1)

Note: the total mark is an accuracy mark to take into account instances where

students hove included non-trade and other payable elements in the Note.

© The tndepe,xlent IOSHtvte of Ect\l(tlUOO (Ptv) tld 202ll

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Memorandum: Question 5 {Marks: 20)

Ref:LUS

Marker's discretion to be used for theory questions. Accept valid points.

M.5.1 A loss (1)

M.5.2 The current accounts of the partners have been debited (1) with the partners' (2)

share of the profit/loss. When a loss has been made, the Appropriation account is

credited and the partners current accounts are debited (1) Q!: If the partnership

had made a profit, the accounting entry would have been to debit the

appropriation account and credit the partners current accounts (1).

{Maximum marks=2}

M.5.3 R11 360 (½) + R17 040 (½) =R28 400 (5)
T Reusch: R11 360 (½) / R28 400 (½M) = 0..4 =4/10= 2/5 (½M)

B. Meyer: R17 040 (½) / R28 400 (½M) = 0.6= 6/10 = 3/5 (½M)

Ratio: Reusch: Meyer = 2: 3 (1)

Note: A"ept o/ternotive ,01,u/otions. To be oworded the one mork for the rotio, it
must be correct and clear from the student's workings to which partner the ratio
applies to. if a ratio is nor shown, the final accuracy mark may not be awarded.

M.5.4 A debit balance indicates that the relevant partner has withdrawn more funds (3)
from the partnership and has negative equity (1). They are therefore charged a

higher interest rate than the partnership would pay on credit balances to

discourage excess drawings (1) and to keep the money working in the business (1).

M.5.5 R12 000 (½) x 9/100 (½) =R 1 080 (1M) (2)

M.5.6 R290 191 (½) -R 1 080 (½M) =R289 111 (1M) (2)

M.5.7 420 000 (½)+325 000(½)+ 387 323 (½)+289 111 (½M) + (R250 000(½)+ RSO 000(½)) (4)

=Rl 721 434 (½)(½M)

M.5.8 The partnership will cease to exist (1). (1)

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Memorandum Question 6 (Marks: 25)

Ref: LU6

M.6.1 Loans to Members (4)

R. Radebe (R)

Balance on 1 October 2023 (½) 36 800 (lM)'

Repayments during the year .

New loans during the year(½) 10 000 (1)

Balance on 30 September 2024 (½) 46 800 (½)

*Balancing amount

M.6.2 Transactions with members (12)

(5)

F. Zomu (R ) R. Radebe (R )

Profit before tax is arrived at after allowing for

the following transactions with members: (1)

Interest income 3 537 (WK2) (½M)

Interest expense (5 200) (WK1) (½M)

Rent expense (35 000) (WK3) (½M)

Members' remuneration (½) i312 000) (WK4) (½M) (288 000) (WKS) (½M)

(317 200) (½)* (319 463) (½)*

*Accuracy mark

Note to markers: The expenses must be correctly shown with brackets to be awarded the marks for

the amounts in the table. If the student has the correct answer for the amount but has not shown

workings, the full marks for the amount and workings must be awarded. If the student has the

incorrect amount and has not shown workings, then no marks for the amount can be awarded.

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Workings :(Total marks= 7):

WKl: R52 000(½) xl0/100(½)= RS 200 (1)

WK2: (R36 800 (½M) x9/100(½) x9/12 (½) )+( R46 800(½) x

9/100 (½) x3/12 (½) )

=R3 537 (3)

WK3: RS 000(½) x7(½) =R35 000 (1)

WK4: R26 000 (½)x12(½) = R312 000 (1)

WKS: R24 000(½) xl2 (½)=R288 000 (1)

M.6.3 Retained income: (3)

R456 900(½) + R478 880 (1) • R65 800 (½) =R869 980 (½Mj + (½)

M.6.4 Change in Membership interest (6)

F. Zomu R. Radebe s. Naidoo

Membership interest 40% 60% 0%

% before change

% change (8%)(½ M) (12%)(½M) +20%

(20% (½) X 40/100 (½)) (20% (½) X 60/100 (½))

New Membership % 32%(1M) 48%(1M) 20%(1)

interest
I

© The lndepe/\c:ltnt 1ns:titvte of Ectuc..1tfon (Ptv) ltd 202.t:i

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Memorandum Question 7 (Marks: 25)

Ref: Wl

To be awarded the mark$ for the details, the details must be correct and on the correct side of the account. The marks for amounts can be awarded if on
the incorrect side of the account with the exception of the opening balance which must be on the correct side.. No marks are given for folio references.

M.7.1 (8½)

DR CREDITORS CONTROL CR

Day Details Fol. Amount Day Details Fol. Amount

2024 Purchase returns (½) CAJ 8 620(½) 2023 Oct1 Balance(½) b/d 74 900 (½)

Sept 30

April30 Pur chases (½) CAJ 5 460(½) Sundry purchases (½) CJ 845 000 (½)

Bank (1) ( Balancing figure) CBP 108 7 740 (½) + Vehicles (½) • CJ 250 600 (½)

(½M)

j
Balance c/d 68 680 (1)

1170 500 1170 500

I-
2024 Oct1 Balance b/d 68 680 (½)

Note: "accept if the student has induded this with Sundry purchases - Amount will then be R1 095 600{1) and allocate 1 marl< to the details if correct.

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M.7.2 (8½)

DR DEBTORS CONTROL CR

Day Details Fol. Amount Day Details Fol. Amount

2023 Balance(½) b/d 80 400 (½) 2024 Bank(½) CBR *768 900 (½)

Oct 1 Sept 30

2024 Sales (1) (Balancing figure) OJ 810 360 (½) + Sales Returns (½) OAJ 14 S00(½)

Sept 30 (½M)

Sales(½) GJ 7 600(½)

Credit losses(½) GJ 4 300(½)

Balance c/d 95 460 (1)

890 760 890 760

2024 Balance b/d 95460 l½J

Oct 1

Note: • in the textbook, cash sales are included in the Bank amount for the Debtors Control, but the question requires the student to calculate the credit sales,

cash sales are therefore excluded here. If the student does include the cash sales here as per the textbook that is acceptable sa long as the credit sales are

correctly calculated.

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M.7.3 (8)
Details R

Sales (WKl) 911460(½M)

Less Cost of sales (WK2) (828 220) (½M)

Gross profit R83 240 (lM) (½) I

Students may set out their answers in anyformat.

Workings (S marks);

WKl: (R810 360(1M) + R129 600(½) - R6400(½)- R14 500(½) - R7 600(½)= R911460

WK2: RZS 700(½) + (R845 000(½) - RS 620(½)- RS 460(½))- R31400 (½)•R828 220

END OF MEMORANDUM

© The lndepeodent Instltvte of Ectuc.)bon (Ptv) Ltd 202l:

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