Directorate: Curriculum FET

ACCOUNTING

Grade 11

REVISION 2024

TERM 1

Solutions
Gr 11 Accounting 2024 2 Revision Solutions

RECONCILIATIONS
ACTIVITY 1 (Bank reconciliation)
1.1 False
1.2 False
1.3 False
1.4 True
5
1.5 True

ACTIVITY 2: BANK RECONCILIATION AND INTERNAL CONTROL

2.1 Cash Receipts Journal Cash Payments Journal
65 570 64 790
(14 550 - 11 850)
31 350 2 700 
150  9 750
2 975
800
(44 000 - 33 500)
Both totals 10 500
97 070  91 515 10

2.2 Calculate the Bank balance in the Ledger

Workings Answer

-350  + 97 070 (CRJ)  see 2.1 - 91 515 (CPJ)  see 2.1 R5 205 (Dr) 
Check operations 4

2.3. Bank Reconciliation Statement on 30 April 2020

Debit Credit
Balance as per Bank Statement 7 445 
Deposit not on the BS 27 750
EFTs not on the BS: 880 8 600
889 7 300
Error on the BS (internet banking fees) 800
Dr Balance as per Bank account (see 2.2) 5 205 
 (both totals added) 28 550 28 550 7

2.4 As the internal auditor you are not happy with the control of cash in this business.
• Explain TWO problems to confirm your concerns. Quote figures.
• Give advice on how EACH problem can be avoided in future.
Problems   Advice  
EFTs incorrectly generated and • Every EFT should be authorised by a senior
employee.
entered in the CPJ (EFT 690,
R11 850, not R14 550) • Supporting documentation (e.g.statement or
invoice) verifying the reason for the payment,
should be submitted for authorisation.
• Cash deposits should be prepared and taken to
the bank by two employees - one should be a
Shortfall in cash deposits senior employee
(R33 500 deposited, R44 000
documented) • Arrange for notification from the bank for every
deposit made in order to follow up on cash not
deposited on time (next day)
6
 Gr 11 Accounting 2024 3 Revision Solutions

ACTIVITY 3: BANK RECONCILIATION

3.1 CASH RECEIPTS JOURNAL - MARCH 2021 CRJ 3
Doc Day Details Bank Amount Details
30 Total 49 000 49 000
B/S W. Western 8 300 8 300 Rent income
B/S B. Bennie 2 750 2 750 Debtors Control
B/S WW Bank 232 232 Interest income
60 282 10

3.1 CASH PAYMENT JOURNAL - MARCH 2021 CPJ 3

Doc Day Details Bank Amount Details
30 Total 48 000 48 000
Sales 5 000 5 000 Sales 
B/S BB Traders 5 900 5 900 Creditors Control
B/S Town Council 3 200 3 200 Water and electricity
B/S WW Bank 1 112 1 112 Bank charges
B/S Boabab Insurers 5 100 Insurance
6 600 1 500 Drawings
69 812 19

3.2
GENERAL LEDGER OF MARION TRADERS
BANK
2021 2021
Mar 1 11 400 Mar 31 Sundry Accounts 69 812
Balance
Mar
31
Sundry Accounts 60 282 Balance 1 870
71 682 71 682
2021
Balance 1 870 6
Apr 1

3.3 Bank Reconciliation Statement for March 2021

Debit Credit
Balance according to bank statement 10 070 
balancing figure
Cr. Outstanding deposit 17 400 
Dr. Outstanding EFT 6 600 
Dr amount wrongly credited 19 000 
Dr. Balance according to the bank account 1 870 
See 3.2
27 470  27 470 7
both figures equal; check operations
 Gr 11 Accounting 2024 4 Revision Solutions

ACTIVITY 4 (Bank Reconciliation; Internal control)

4.1
BANK RECONCILIATION NO ENTRY
BANK ACCOUNT STATEMENT
No (show with
Contra account details Dr Cr Dr Cr X)

A  53 000
B Loan: Rand Bank  5 500
C  1 500
D Stationery (265 -256)  9
E J. Brady / Debtors control  680
J. Brady / Debtors control 
 20
(Discount allowed)
(entries appear in journals and bank
F statement) X

G Loss due to theft   20 000

14

4.2 Explain TWO problems you have identified from the transactions which show a lack
of control of cash. Quote figures to support your answer. Provide a different
solution for each problem identified.
PROBLEMS (with figures)   SOLUTIONS  
Possible rolling of cash / Bank error • Ensure that deposits are done on a
(deposit credited to another bank customer) regular basis to avoid mismanagement
• Arrange with the bank to send a
Large outstanding deposit (R53 000) notification (via SMS or email)to the owner
was received on 20 April 2020 and not to confirm deposits are made
yet shown on the bank statement as • Encourage customers to make direct
deposited (11 days) /internet/online deposits (EFTs)

• Rotate duties and times of banking to

avoid creating a pattern
Poor internal control measures /
• Provide security to the person going to the
Deposits being done by only one
bank - at least two people should go / Use
person /no protection for person going
a cash transit business to transport cash
to the bank
to the bank (this is very expensive)
• Karen could be guilty of theft - especially
R20 000 were stolen on the way to the
because she did not inform the owner(s)
bank to make the deposit
at the time of the theft.
• Encourage the tenant to make EFTs/
internet payments 6

TOTAL 20
 Gr 11 Accounting 2024 5 Revision Solutions

ACTIVITY 5 (Creditors Reconciliation)

5.1 CREDITORS LEDGER OF SOLOMONS TRADERS
VDM SUPPLIERS (C4)
Date Details Debit Credit Balance
Check operation
2021
28 Account rendered ✓ 23 410
Feb
Correction ✓✓ 3 200 26 610
Invoice 621 ✓✓ 4 366 30 976
Correction ✓✓ 680 30 296
Correction ✓✓ 3 640 26 656
Interest ✓✓ 114  26 770 12

5.2 CREDITORS RECONCILIATION STATEMENT of VDM SUPPLIERS on 28 Feb 2021

(Show brackets or minus sign for subtraction)
Balance according to statement of account ✓ 25 364
Correction (8 558 – 5885) ✓✓ (2 673)
Invoice 2130 ✓✓ 5 127
Goods returned ✓✓ (1 048)
Check operation  26 770 8

5.3 Name TWO tasks of the creditors clerk to ensure good internal control of creditors
Any TWO possible answers:  

• Goods received should be compared with the orders placed to ensure the goods
received are according to order
• Invoices should be compared with the goods delivered to ensure all items were
received in good condition
• Returns of purchases should be properly authorised and negotiated with the
creditors/suppliers
• Payment should be supported by the CORRECT/reconciled monthly statements
4
• Make sure creditors are paid on time to prevent interest on overdue accounts

TOTAL 24

ACTIVITY 6 (Creditors Reconciliation)

6.1 Provide TWO reasons why it is important for the business to prepare the Creditors'
Reconciliation Statement.
Any two relevant reasons  
• It helps to detect fraud, errors and omissions.
• It helps to identify differences between the balance in the statement and the balance in
the business' records.
• It is an internal control measure for creditors. 4

6.2 Calculate the correct Creditors' Control account balance after taking into account
the relevant errors and omissions.

87 690 + 5 020 + 12 800 – 1 280 – 1 280 + 1 720 = 104 670

✓ ✓ ✓ ✓ ✓  one part correct
6
 Gr 11 Accounting 2024 6 Revision Solutions

6.3 Calculate the correct balances for creditors Zebo Suppliers and Leo Wholesalers,
by taking into account the errors and omissions.

Creditor Workings Balance

Operation;
Zebo Suppliers 16 580 + 12 800✓ +1 720✓ + 200✓✓ one part correct
31 300 
Operation;
Leo Wholesalers 29 520 – 6 300✓✓ – 4 900✓ one part correct
18 320 

Operation; one part correc 49 620 

10

TOTAL 20

ACTIVITY 7 (Creditors Reconciliation & Internal control)

7.1 Creditors Ledger of We-R-Healthy (updated)
Details Debit Credit Balance
Balance ✓54 571

Discount cancelled ✓✓ 1 139 55 710

Correction Debit note 9 ✓✓ 54 55 764
Correction Invoice 41 ✓✓ 1 350 54 414
(675 x 2)
Discount 22 March ✓✓1 155  53 259 10

7.2 Creditors Reconciliation Statement of Vegan Wholesalers for March 2020

Details R
Balance according to statement of account ✓ ✓ 18 714
Incorrect Credit note 42 ✓✓ 4 155
Correction Invoice 810 (26159 - 25 745) ✓✓ (414)
Transfer of balance ✓✓ (2 055)
Entry on 29 March ✓✓ 32 859
Balance according to creditors ledger✓ ✓ 53 259 12

7.3 Explain TWO internal control measures that We-R-Healthy can implement to
improve efficient control over creditors and to prevent this from happening again.
Any acceptable answer ✓✓ + ✓✓

• Segregation of duties: The same person should not be responsible for

ordering, entering the transaction in the books and control
• Accurate documentation: 3 way check when goods are delivered. The
purchase order should be compared with the invoice and with the delivery
slip and the goods delivered must be counted and checked.
• A creditors reconciliation must be done at least once a month by another person,
not entering the transaction in the books 4

TOTAL 26
 Gr 11 Accounting 2024 7 Revision Solutions

FIXED ASSETS
ACTIVITY 1 (Asset Disposal; Ledger accounts)
Dr EQUIPMENT Cr
2020 2020
Jan
1 Balance ✓ 320 000 Jul
1 Asset disposal✓  60 000
Creditors ✓✓  338 000
Oct 31 Dec 31 Balance c/o
Control ✓ 78 000 Check operation

398 000 398 000

2021
Jan
1 Balance b/d  338 000
Check b/d 9
Cost of new equipment: (11 700 x 6 ) x 100 / 90 = 78 000

Accumulated Depreciation on Equipment

2020 Asset disposal✓ ✓✓✓ 2020 ✓
Jul
1
Jan
1 Balance
(4000+11 200+4480) 19 680 172 200
Dec 31 Balance c/o  180 200 Jul 1 Depreciation ✓* ✓✓ 4 480
Check operation
Depreciation ✓* ✓✓ ✓✓
Dec 31
(20 600 + 2 600) 23 200
199 880 199 880
2021
Jan
1 Balance b/d  180 220
Check b/d 17
*= check dates

Calculations: (Mark allocations repeated from the account)

SOLD:
1/9/2018 - 31/12/2018: 60 000 x 20% x 4/12 = 4 000 
1/1/2019 - 31/12/2019: (60 000 – 4 000) x 20% = 11 200 
44 800
1/1/2020 - 30/6/2020: (60 000 - 15 200)x 20% x 6/12 = 4 480  TOT: 19 680

OLD: (260 000 – 157 000) x 20% = 20 600 

NEW: (11 700 x 6 x 100/90) x 20% x 2/12 = 2 600  TOT: 23 200

ASSET DISPOSAL
2020 2020 Acc Depr on See above
1 Equipment ✓ ✓ 60 000 1
 19 680
Jul Jul Equipment ✓
Bank ✓ ✓ 38 000
Loss on sale of  2 320
asset ✓ Check operation

60 000 -1 (closing of a/c) 60 000

8
 Gr 11 Accounting 2024 8 Revision Solutions

2. Name two risks with regards to fixed assets and two internal control measures to
prevent these risks.
RISKS   INTERNAL CONTROL MEASURES  
Assets can be stolen Must be safeguarded / insured
Employees can misuse assets Keep logbook for vehicles – discuss code of ethics
for the use of equipment / sign in & out
Can be damaged / stop working / out of Good maintenance plan
order 6

ACTIVITY 2 (Fixed assets note and Asset disposal)

2.1 Provide a reason as to why Land & Buildings is usually not depreciated.
Land and buildings usually appreciate in value over time  and are therefore not
depreciated in the books.
2

2.2 Briefly explain why depreciation is described as a 'non-cash item'.

It is simply a book entry as no cash is exchanged when depreciation is recorded.

2.3
GENERAL LEDGER OF PPE TRADERS
Dr Asset disposal (N12) Cr
2020 2020 Accumulated depreciation
Feb 28 Vehicles   30 000 Feb 28 on vehicles  20 382
Profit on sale of asset  200 Creditors control  9 818

30 200  (totals both sides) 30 200

10

2.4 Workings Answer

A 250 000 - 160 000  90 000

B 30 000 - 20 382  9 618

C 80 000 +60 000 - 30 000  110 000

D 22 200 + 8 670 - 20 382  10 488

operation
E 110 000 - 10 488  99 512
One part correct
F 52 000 - 32 500 (see G)  19 500
G 37 300 - 4 800  32 500

H 52 000 + 5 000  57 000

One part correct /
I 57 000 - 37 300 OR 19 500 +5 000 - 4 800 operation
 19 700 16

TOTAL: 30
 Gr 11 Accounting 2024 9 Revision Solutions

ACTIVITY 3 (Fixed assets note)

LAND &
FIXED ASSETS BUILDINGS
EQUIPMENT TOTAL
Carrying value - beginning of  
1 147 800 330 000 1 477 800
year
Cost 1 147 800 540 000  1 687 800

Accumulated depreciation (210 000)  (210 000)

Movements
Additions at cost 160 000  0 160 000
Disposals at carrying value 
(26 600)  (26 600)
(72 000 - (40 000 + 5 400)
Depreciation for the year (52 200)  (52 200)
(5 400 + 46 800)

Carrying value - end of year 1 307 800  251 200  1 559 000 

Cost 1 307 800  468 000  1 775 800

Accumulated Depreciation (216 800)  (216 800)

TOTAL: 17

ACTIVITY 4 (Fixed assets note & fully depreciated assets)

FIXED ASSETS VEHICLES EQUIPMENT

Carrying value - beginning of year (i)  24 500 196 000

Cost 350 000 280 000

Accumulated depreciation (325 500) (84 000)
Movements
Additions at cost 400 000 (v)  78 000
70 000 – 36 250 – 4 500
Disposals at carrying value 0 (vi)  (29 250)
24 499 + 20 000 4 500 + 32 450 + 2 600
Depreciation for the year (ii) (3) (44 499) (vii) (3) (39 550)
Carrying value - end of year (iv)  380 001 (x)  205 200
Cost 750 000 (viii)  288 000
Accumulated Depreciation (iii)  (369 999) (ix)  (82 800)

Calculations: (Mark allocations indicated above)

Depreciation on Vehicles: Depr on Equipment:
Old: 24 500 – 1 = 24 499  Sold: (70 000 – 36 250) x 20% x 8/12
New: 400 000 x 15% x 4/12 = 4 500
= 20 000  Old: (210 000 – 47 750) x 20%
= 32 450
New: 78 000 x 20% x 2/12
= 2 600

17
 Gr 11 Accounting 2024 10 Revision Solutions

4.2 Calculate the profit or loss (indicate your choice) with the asset disposal on
31 October 2020.

Selling Price - Carrying value

42 000  - 29 250  = R12 750 (profit) 
(70 000 - 40 750)
3

TOTAL: 20

PARTNERSHIPS: ACCOUNTS
ACTIVITY 1 (GAAP; AOL/Ledger)
1.1.1 C 
1.1.2 D 
1.1.3 A 
1.1.4 B  (4)

1.2 (AOL)
Owner's Liabi-
No Account debited Account credited Amount Assets
Equity lities
E.g. Wages Bank 8 000 - - 0
1.2.1 1. Bank  Debtors control  455  ± 0 0
2. Discount allowed  Debtors control  45  - - 0
1.2.2 Drawings: Davids  Trading stock  2 000  - - 0
1.2.3 Bank  Capital: Marks  20 000 + + 0
1.2.4 Vehicles  Capital: Marks  180 000 + + 0
1.2.5 Trading stock  Creditors control  5 000 + 0 +
Stationery  Creditors control  200 0 - +
(7) (7) (3) (14) (31)

TOTAL: 35

ACTIVITY 2 (Partnership ledger)

2.1 Correct net profit:
Net profit before adjustments 735 425
Provision for bad debts  2 600
Insurance ((8 100 ÷ 12) x 9)  6 075
Commission income  (4 100)
 740 000 7
 Gr 11 Accounting 2024 11 Revision Solutions

2.2
GENERAL LEDGER OF PRINCE TRADERS
Dr Capital: William (B2) Cr
2019 2018
Feb 28 Balance c/o  740 000 Mar 1 Balance b/d  520 000
2019
Jan 31 Vehicles   220 000

740 000 740 000

2019
Mar 1 Balance b/d  740 000

Current account: William (B4)

2018 2019 Interest on
Mar 1 Balance b/d  8 800 Feb 28 Capital   48 450
2019  (214 500/13 x 12) 
Drawings: William 
Feb 28 214 500 Salary: William  198 000
(4 820 000 -
Balance c/o  150 225 20 000)x1%
Bonus: William   48 000
Appropriation  79 075
373 525 373 525
2019
Mar 1 Balance b/d  150 225
 59 400 / 660 000 x 100 = 9%; (520 000 x 9% x 11/12)  + (740 000 x 9% x 1/12) = 48 450
17

Appropriation account (F3)

2019 (59 400 + 48 450 ) 2019
See 2.1
Feb Interest on Feb 28 Profit and loss   740 000
28 Capital  107 850
198 000 + (2500 x12)
Salary: Harry 228 000
Salary: William   198 000

Bonus William   48 000

Current a/c: Harry ½  79 075

Current a/c: William ½  79 075

740 000 740 000

16

TOTAL: 45
 Gr 11 Accounting 2024 12 Revision Solutions

ACTIVITY 3 (AOL & Partnership ledger)

3.1
Owner's Per
No Amount Assets Equity Liabilities line

3.1.1 R50 000 + 0 + 

3.1.2 R350 0 + - 

3.1.3 R11 000 - - 0 

3.1.4 R20 000 0 ± 0 

R12 000 + + 0 
3.1.5 12 000 x 100 /150
- - 0  6
R8 000

3.2 GENERAL LEDGER OF J&B STORES

Final accounts section
Appropriation account (F3)
2021 (15000 x 12) 2020
31 Profit and loss  800 492
Mar 31 Salary: Becca  180 000 Mar
Salary: Janet  144 000
(25 000 + 32 500)
Interest on Capital  57 500

Bonus Janet  24 000

Current a/c: Becca
 243 072
(30 384 x 8)
Current a/c: Janet 
(30 384 x 5)
 151 920
800 492 800 492

% interest on Capital = 25 000 / 500 000 x 100 = 5%;

Becca: (600 000 x 5% ) + (200 000 x 5% x 3/12)
30 000 + 2 500 =32 500
Profit sharing: ( 8 : 5 )

15

Current account: Becca (B3)

2020 2021
Apr
1 Balance b/d  5 600 Mar
31 Interest on Capital  32 500
2021 Drawings: Becca
Mar
31
(75% x 180 000)
 135 000 Salary: Becca  180 000
Balance c/o  314 972 Appropriation  243 072

455 572 455 572

2021
Mar
1 Balance b/d  314 972

TOTAL: 30
 Gr 11 Accounting 2024 13 Revision Solutions

ACTIVITY 4 (Partnership Final accounts)

4.1 General Ledger of Zuzter Traders
Final accounts section
Dr Trading account (F1) Cr
2021 2021
Feb
28 Cost of Sales 497 700 Feb
28 Sales (730 685 - 18 800) 711 885
Profit & Loss a/c 214 185

711 885 711 885

Profit & Loss account (F2)

2021 2021
Feb
28 Advertising 31 605 Feb
28 Trading a/c (Gross profit)  214 185

Bank charges 10 500 Commision income  2 200

(2 000 - 1 000 + 1 200)
Bad debts  11 540 Discount received  13 880
(8 900 + 120 + 2520)
Pension contribution  4 195 Rent income (see below)  19 350
(3 395 + 800) (21 300 - 1 950)
Insurance (18 000 - 9 500)  8 500 Bad debts recovered  120
Packing material Provision for bad debts
 29 610 adjustment (2 500 - 2 198)
 302
(29 800 - 190)
Salaries & Wages
 47 580 Interest on fixed deposit  1 723
(38 580 + 9 000)
Trading stock deficit  4 800
Depreciation  35 940
(13 000 + 800 + 22140)
Interest on overdraft  3 400
Interest on loan 
(194 000 - 66 000 - 150 000) 22 000
Appropriation a/c
(net profit)
42 090
251 760 251 760

33

Rent Income: 1 Dec 2020 - 28 Feb 2021 + March 2021: 4 months

Increase = 4 x 450 = 1 800
Before increase: 13 months = 21 300 - 1 800 = 19 500 (per month = 19500/13 = 1 500)
After increase: 1500 +450 = 1 950 per month
OR: 9? + 4( ? + 450) = 21 300
Solve ? = 1 500 [(21 300 -1800) / 13]
Rent for March = 1 500 + 450 = 1 950
Prov for Bad debts adjustment:
2 500  - [(46 480 - 2 520) x 5%] 2 198 = 302 (income - provision decreased)
Insurance prepaid: 10 mnths prepaid
11 400 x 10/12 = 9 500
Depreciation:
Vehicles: 130 000 x 10% = 13 000
Equipment: New: 16 000 x 15% x 4/12 = 800
Old: (210 000 - 16 000 - 46 400) x 15% = 22 140
 Gr 11 Accounting 2024 14 Revision Solutions

4.2 Calculate the final distribution amount that EACH partner will be allocated from the
Appropriation account. Indicate whether it is positive (profit) or negative (loss).
Tip: You may construct a rough Appropriation account.
Appropriation a/c
Net profit (given): 42 090 36 000 42 090
Salaries (72 000) [36 000 x 2]  36 000 (loss) 81 828
Int on cap (Z) (26 000) 26 000
Int on cap (T) (17 500)*  17 500
8 418
Bonus (8 418) 
Remaining loss: = (81 828) 
81828 / 2 = R40
914
(loss to be shared)
Loss per partner: (40 914) 

* Interest on capital (Terry): (150 000 x10%) + (50 000 x 10% x 6/12)

TOTAL: 50