# Acounting

Topics: 2009, Balance sheet, Asset Pages: 14 (1577 words) Published: September 1, 2012
CENTRE NUMBER

EXAMINATION NUMBER

NATIONAL SENIOR CERTIFICATE ACCOUNTING GRADE 12 NOVEMBER 2009

QUESTION 1 2 3 4 5 6 TOTAL MARKS INITIAL MOD.

This answer book consists of 20 pages.

Accounting

DoE/November 2009

QUESTION 1 1.1 Explain why it is important for a business to prepare a Bank Reconciliation Statement each month.

2 1.2 CRJ Provisional total Bank 70 600 CPJ Provisional total Bank 105 320

12 1.3 Calculate the Bank Balance on 31 May 2009.

State whether this is a favourable or an unfavourable balance. 6

Accounting

DoE/November 2009

1.4 BANK RECONCILIATION STATEMENT ON 31 MAY 2009

10 1.5 The fixed deposit of R84 000 matures next month. What advice would you offer the owner in this regard? Explain TWO points, quoting appropriate figures to support your answer.

4 1.6 Explain why the internal auditor should be concerned about the outstanding deposit of R20 295.

Explain how cheque No. 674 should be dealt with when the financial statements are prepared on 31 May 2009. Give a reason for your answer.

6

40

Accounting

DoE/November 2009

QUESTION 2 2.1.1 PRODUCTION COST STATEMENT OF PD PENCILS MANUFACTURERS FOR THE YEAR ENDED 31 OCTOBER 2009 TOTAL ? ?

Prime cost
?

Work-in-process stock on 1 November 2008

37 600

?

Cost of production of finished goods

3 525 000 10

2.1.2

Calculate the cost of production per unit.

3 2.1.3 Calculate the net profit.

5

Accounting

DoE/November 2009

2.2.1

Calculate the break-even 31 October 2009.

point

for

the

year

ended

5 2.2.2 Should the business be satisfied with the number of units that are currently produced? Explain.

3 2.2.3 Despite the fact that there was an increase in the price of raw materials, the direct/raw materials cost per unit decreased from R32 to R27. Give a valid reason for the decrease in direct/raw materials cost per unit.

. 2 2.2.4 Despite the fact that there was no increase in wages during the year, the direct labour cost per unit increased from R20 to R28. Give a valid reason for the increase in direct labour cost per unit.

2

30

Accounting

DoE/November 2009

QUESTION 3 3.1 QWANDO LIMITED NOTES TO THE BALANCE SHEET ORDINARY SHARE CAPITAL Authorised 1 000 000 ordinary shares of R3 each 3 000 000 R

Issued

RETAINED INCOME

R

14

Accounting

DoE/November 2009

3.2

QWANDO LIMITED BALANCE SHEET ON 30 JUNE 2009 ASSETS NON-CURRENT ASSETS

CURRENT ASSETS

TOTAL ASSETS EQUITY AND LIABILITIES CAPITAL AND RESERVES

NON-CURRENT LIABILITIES

CURRENT LIABILITIES

TOTAL EQUITY AND LIABILITIES

38

Accounting

DoE/November 2009

3.3.1

State whether the shareholders would be satisfied or dissatisfied with this audit report. Give a reason for your answer.

3 3.3.2 Explain why the auditors found it necessary to stipulate the page numbers (that is 8 to 20) in this report.

2 3.3.3 Explain why the Companies Act makes it a requirement for public companies to be audited by an independent auditor.

2 3.3.4 Explain TWO major consequences for Barlow and Bokwe should they be negligent in performing their duties.

4

Accounting

DoE/November 2009

3.3.5

What actions would Barlow and Bokwe have to perform to verify the Fixed/Tangible Assets figure in the Balance Sheet? Provide THREE points.

3 3.3.6 Quinton Qwando, the major shareholder and managing director, has informed the...