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CENTRE NUMBER

EXAMINATION NUMBER

SENIOR CERTIFICATE EXAMINATIONS

ACCOUNTING

GRADE 12

2017

SPECIAL ANSWER BOOK

QUESTION MARKS INITIAL MOD.

1
2
3
4
5
6
TOTAL

This answer book consists of 18 pages.

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Accounting 2 DBE/2017
SCE – Answer Book

QUESTION 1

1.1 TRUE OR FALSE

1.1.1
1.1.2
1.1.3 3

1.2 MIZZY BOUTIQUE

Use the table provided to indicate corrections that must be made to the
Debtors' Control Account and the debtors' list.

Provide figures and a plus (+) or minus (–) sign for each correction.

Debtors' Control Debtors' List

Account
Balance/Total on R37 710 R39 490
28 February 2017
(a)
(b)
(c)
(d)
(e)
(f)
Balance/Total on
28 February 2017 13

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Accounting 3 DBE/2017
SCE – Answer Book

1.3 GLENDALE TRADERS

1.3.1 Explain how a debtors' age analysis can assist with internal control over
debtors.

1.3.2 Calculate the percentage of total debts exceeding the credit terms.

1.3.3 Explain ONE problem (with figures) relating to EACH of the following
debtors:
DEBTOR PROBLEM WITH FIGURES
D Pillay

W Patel
4

1.3.4 Explain TWO problems (with figures) relating to debtor D Gouws.

TOTAL MARKS

30

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Accounting 4 DBE/2017
SCE – Answer Book

QUESTION 2

2.1 VAT

2.1.1
(a)
(b)
(c)
(d)
4

2.1.2 VAT INCREASES THE DECREASES THE

No.
AMOUNT AMOUNT DUE TO SARS AMOUNT DUE TO SARS
(a)
(b)
(c) 10

2.2 INVENTORY VALUATION

2.2.1 Give a reason why the business uses the weighted average method to
value the stock of tyres.

2.2.2 Calculate: Value of closing stock on 28 February 2017

10

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Accounting 5 DBE/2017
SCE – Answer Book

2.2.3 Calculate: Cost of sales

3
Calculate: Gross profit

3
Calculate: Average stock-holding period (in days)

2.2.4 Should the owner be satisfied with the stock-holding period calculated
above? Explain. Quote figures. NOTE: The stock-holding period for 2016
was 70 days.

TOTAL MARKS

40

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Accounting 6 DBE/2017
SCE – Answer Book

QUESTION 3

3.1
3.1.1
3.1.2
3.1.3
3.1.4
4

3.2
3.2.1 Factory Overhead Cost Note

14

3.2.2 Production Cost Statement for the year ended 28 February 2017

Prime cost

Total manufacturing cost 4 824 000

Cost of production of finished goods 10

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Accounting 7 DBE/2017
SCE – Answer Book

3.2.3 Infinity Hats are considering importing raw materials at a lower price than
they are currently paying.

Provide TWO points they should consider before deciding.

3.3 SANYATI BAKERY

3.3.1 PROBLEM WITH FIGURES SOLUTION

Doughnut
factory

Cake
factory
6

3.3.2 Provide workings to show that the break-even point of 158 298 units for
the doughnuts in 2016 was correctly calculated.

3.3.3 Explain why Damon should be concerned over the break-even point of
doughnuts. Quote figures.

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Accounting 8 DBE/2017
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3.3.4 COMMENT ON PRICE AND DEMAND

PRODUCT
(WITH FIGURES)

Doughnuts

Cakes

TOTAL MARKS

50

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Accounting 9 DBE/2017
SCE – Answer Book

KEEP THIS PAGE BLANK.

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Accounting 10 DBE/2017
SCE – Answer Book

QUESTION 4

4.1
4.1.1
4.1.2
4.1.3
4.1.4
4

4.2 MTOMBENI LTD

4.2.1 Calculate: Carrying value of the vehicle sold on 30 November 2016

5
Calculate: Total depreciation on equipment on 28 February 2017

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Accounting 11 DBE/2017
SCE – Answer Book

4.2.2 MTOMBENI LTD

Income Statement (Statement of Comprehensive Income) for the year
ended 28 February 2017:
Sales (5 500 000
Cost of sales (3 150 000

Operating expenses
Directors' fees 380 000
Audit fees 54 000

Operating profit
Interest income
Net profit after interest income

Net profit before tax

Income tax
Net profit after tax 864 000

54

TOTAL MARKS

70

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Accounting 12 DBE/2017
SCE – Answer Book

QUESTION 5

5.1
5.1.1
5.1.2
5.1.3
5.1.4
4

5.2 MIHKA LTD

5.2.1 ORDINARY SHARE CAPITAL

Authorised Share Capital

800 000 ordinary shares

Issued Share Capital

600 000 Ordinary shares on 1 January 2016 4 200 000
100 000

RETAINED INCOME

Balance on 1 January 2016 276 000

5.2.2 CASH EFFECTS OF OPERATING ACTIVITIES

Cash generated from operations 1 237 400

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Accounting 13 DBE/2017
SCE – Answer Book

5.2.3 Amounts in the Cash Flow Statement:

Calculate: Change in fixed deposit

3
Calculate: Proceeds on disposal of equipment

5.2.4 Calculate: Mark-up percentage on cost

4
Calculate: Debt-equity ratio

4
Calculate: Net asset value (in cents)

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Accounting 14 DBE/2017
SCE – Answer Book

5.2.5 The financial director was questioned about the decision to increase the
loan. Explain what he should say to justify this decision. Quote TWO
financial indicators (with figures).

5.2.6 Ashraf, a new shareholder, bought 70 000 shares on 31 August 2016. He

expected the company to distribute at least 80% of its earnings as it did
in 2015.

Ashraf is unhappy with the dividend pay-out policy for 2016. Provide a
calculation to support his opinion.

3
Explain TWO points to support the company's decision regarding
dividends for 2016.

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Accounting 15 DBE/2017
SCE – Answer Book

5.2.7 Comment on the re-purchase price paid for the 40 000 shares on
30 December 2016. Provide TWO financial indicators (with figures) in your
comment.

TOTAL MARKS

65

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Accounting 16 DBE/2017
SCE – Answer Book

QUESTION 6

6.1 Comment on the control of EACH item and give ONE point of advice in
each case.

COMMENT ADVICE

Telephone

Staff training

6.2 Identify TWO items incorrectly entered in the Cash Budget.

6.3 CREDITORS' PAYMENT SCHEDULE

CREDIT
MONTH MAY JUNE
PURCHASES
March R64 000 6 400
April R72 000 10 800
May 57 000
June R96 000
74 200
9

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Accounting 17 DBE/2017
SCE – Answer Book

6.4
CALCULATION AMOUNT
Cash sales

(i)

Cash purchases of stock

(ii)

Delivery expenses

(iii)

Salaries and wages

(iv)

Repayment of loan

(v)

Cash at end of month

(vi)

Cash deficit for the month

(vii)

21

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Accounting 18 DBE/2017
SCE – Answer Book

6.5 Piet wants to save on costs by not offering a free delivery service. Is this
a good idea? Explain.

6.6 Explain ONE advantage and ONE disadvantage of each option.

OPTION ADVANTAGE DISADVANTAGE

Raise a new
loan

Hire (lease) the

assets from
Computer
Solutions

Ask a friend to
become equal
partner

TOTAL MARKS

45

TOTAL: 300

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