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Metro East Education District
SCHOOL
LEARNERSURNAME NAME
CLASS 12 ....
QUESTION TOTALper Question MARKS MOD.
1 402 403 754 655 506 30
TOTAL 300
This ANSWER BOOK consists of 18 pages.
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ACCOUNTING Gr 12JUNE 2016
SPECIAL ANSWER BOOK
Accounting ANSWER BOOK 2 MEED June 2016
QUESTION 1
1.1.1 Calculate the correct bank balance on 31 May 2016. Show all workings.
6
1.1.2 Bank Reconciliation Statement on 31 May 2016
10
1.1.3 State the double entries, with amounts, in the general ledger for the transaction with T. Masha
DR CR
6
Make TWO proposals to the business to eliminate receiving dishonoured cheques from debtors in future.
4
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Accounting ANSWER BOOK 3 MEED June 2016
1.1.4 The bank has no record of the deposit of R12 400 being made and the money cannot be found. Provide TWO measures to be introduced to prevent a loss of this nature in the future.
4
1.2 CREDITORS’ RECONCILIATION
NO
CREDITORS CONTROL CREDITORS LIST
Debit Credit Debit Credit
1.2.1
1.2.2
1.2.3
1.2.4
1.2.5
1.2.6
1.2.7
TOTAL MARKS
40
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10
Accounting ANSWER BOOK 4 MEED June 2016
QUESTION 2
GENERAL LEDGER OF ASTRO LTD2.1.1 ASSET DISPOSAL
2015Dec 31
2015Dec 31
9
2.1.2 ACCUMULATED DEPRECIATION ON VEHICLES2015Apr 1 Balance b/
d
11
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Accounting ANSWER BOOK 5 MEED June 2016
2.2 FIXED ASSET NOTE ON 31 MARCH 2016
VEHICLES EQUIPMENT
Carrying value – 1 April 2015
Cost
Accumulated depreciation (100 000) (70 000)
Movements
Additions at cost
Disposals at carrying value
Depreciation
16
Carrying value – 31 March 2016
Cost
Accumulated depreciation
2.3 Astro Ltd has no insurance on the vehicles. The CEO believes that the money he saves on insurance premiums can be used to buy more stock and make more profit. Explain why you think that having no insurance on vehicles is not good business practice. Mention TWO points.
4
TOTAL MARKS
40
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Accounting ANSWER BOOK 6 MEED June 2016
QUESTION 33.1 Overbay Ltd
Income Statement for the year ended 28 February 2016
Sales (3 800 640Cost of Sales (2 375 400Gross ProfitOther IncomeCommission income (26 000
Gross IncomeOperating ExpensesAudit fees 21 000Bank charges 6 210Packing material
Operating profit
47
Interest IncomeProfit before interest expense
Net profit after Tax
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Accounting ANSWER BOOK 7 MEED June 2016
3.2.1 TRADE AND OTHER RECEIVABLES
11
3.2.2 TRADE AND OTHER PAYABLES
11
3.3.1 Calculate the profit margin of the business, BEFORE any adjustments.
4
3.3.2 Give ONE possible reason why the 25% profit margin made on the goods returned by M. Mgoki, differs from your answer in 3.3.1 above.
2
TOTAL MARKS
75
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Accounting ANSWER BOOK 8 MEED June 2016
QUESTION 4
4.1.1 Calculate the Net profit before tax for the year ended 30 June 2015
3
4.1.2 Calculate the Income tax for the year ended 30 June 2015
3
4.2.1 APPROPRIATION2015Jun 30
2015Jun 30
11
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Accounting ANSWER BOOK 9 MEED June 2016
4.2.2 RETAINED INCOME
2014Jul 1 Balance b/
d 670 000
8
4.3 ORDINARY SHARE CAPITAL
AUTHORISED
ISSUED
300 000 ordinary shares in issue on 1 July 2014
8
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Accounting ANSWER BOOK 10 MEED June 2016
4.4 MOYA LTDBALANCE SHEET AS AT 30 JUNIE 2015EQUITY AND LIABILITIESORDINARY SHAREHOLDERS’ EQUITY
Ordinary Share Capital
NON-CURRENT LIABILITIES
CURRENT LIABILITIES
20TOTAL EQUITY AND LIABILITIES
4.5 Calculate the Net Asset Value (NAV) per share on 30 June 2015.
3
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Accounting ANSWER BOOK 11 MEED June 2016
4.6On 30 June 2015 the price of Moya Ltd shares on the JSE was R5,20. Should the existing shareholders be satisfied with the aspects below? Explain and quote figures from the question to support your answers.
Market price:
Price at which new shares were issued on 1 January 2015:
9
Price paid for the repurchase of shares on 31 May 2015:
TOTAL MARKS
65
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Accounting ANSWER BOOK 12 MEED June 2016
QUESTION 5
5.1 CASH GENERATED FROM OPERATIONS
10
Depreciation 92 840Interest Expense 52 000Operating profit before changes in working capitalCash effects of changes in working capital
Change in inventoriesChange in receivables
Change in payables
5.2 PRINS LTDCASH FLOW STATEMENT FOR YEAR ENDED 28 FEBRUARY 2016
CASH FLOWS FROM FINANCING ACTIVITIES
8
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Accounting ANSWER BOOK 13 MEED June 2016
5.3.1 Calculate the current ratio.
3
5.3.2 Calculate the debt-equity ratio.
3
5.3.3 Calculate the return on average shareholders’ equity.
5
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Accounting ANSWER BOOK 14 MEED June 2016
5.4 The directors are not satisfied with the liquidity position. Comment on the liquidity position. Quote and explain THREE relevant financial indicators (with figures) to support their view.
6
5.5 The directors decided to pay back a large portion of the long term loans. Explain why this was not a wise business decision. Quote and explain TWO financial indicators (with figures) in your answer.
8
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Accounting ANSWER BOOK 15 MEED June 2016
5.6.1 Choose the correct word from those listed in brackets. Write down the word and briefly explain your choice.
Prins Ltd received a/an (unqualified/qualified/adverse/disclaimer) auditor's report.
Briefly explain your choice
3
5.6.2 Explain the consequences of this auditor's report for the chief executive officer (CEO) and/or the company. State TWO points.
4
TOTAL MARKS
50
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Accounting ANSWER BOOK 16 MEED June 2016
QUESTION 6
6.1 VAT CONCEPTS
6.1.1
36.1.26.1.3
6.2 VAT CALCULATIONSCalculate the correct amount of VAT the business has to pay. Show all workings.
6
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Accounting ANSWER BOOK 17 MEED June 2016
6.3 INVENTORY VALUATION
6.3.1 (a) Calculate the closing stock (rand value) of the guitars on 30 April 2016.
5
(b) Calculate the cost of sales (rand value) of the guitars on 30 April 2016.
4
(c) Calculate the average stock holding period (in days) of the guitars on 30 April 2016.
4
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Accounting ANSWER BOOK 18 MEED June 2016
6.3.2 Calculate the closing stock (rand value) of the CDs on 30 April 2016.
7
6.3.3 Explain why the business uses the specific identification method for guitars, but not for the CDs.
1
TOTAL MARKS
30
TOTAL: 300
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