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PROVINCIAL EXAMINATION
JUNE 2024
GRADE 11

ACCOUNTING
PAPER 2

TIME: 2 hours

MARKS: 150

10 pages + 1 formula sheet and an answer book of 10 pages

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INSTRUCTIONS AND INFORMATION

1. Answer ALL the questions.

2. A special ANSWER BOOK is provided in which ALL questions are to be answered.

3. A FORMULA SHEET for financial indicators is provided at the back of this question
paper. You may use it if necessary.

4. Show ALL workings to earn part-marks.

5. You may use a non-programmable calculator.

6. You may use black/blue ink to answer the questions.

7. Where applicable, show all calculations to ONE decimal point.

8. Write neatly and legibly.

9. Use the information in the table below as a guide when answering the question paper.
Try NOT to deviate from it.

QUESTION TOPIC MARKS TIME IN MINUTES

Bank Reconciliation and Internal
1 55 44 minutes
Control
2 Creditors' Reconciliation and Ethics 25 20 minutes
3 Fixed Assets 50 40 minutes
4 Internal control 20 16 minutes
TOTAL 150 120 minutes
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QUESTION 1: BANK RECONCILIATION AND INTERNAL CONTROL

(55 marks; 44 minutes)

1.1 State whether the following statements are TRUE or FALSE. (03)

1.1.1 Favourable balance as per bank statement is a debit balance.

1.1.2 Interest on overdraft is recorded in the Cash Payment Journal.

1.1.3 Cash deposits increase your bank balance.

SK TRADERS

1.2 The following information relates to SK Stores for February 2024. The business
banks with Honey Bank. The bookkeeper prints out statements at the end of the
month from the banking app.

REQUIRED:

1.2.1 Complete the Cash Receipts Journal and the Cash Payments Journal
for February 2024. Use the correct details (contra account). (26)

1.2.2 Calculate the correct bank account balance on 29 February 2024. (04)

1.2.3 Prepare the Bank Reconciliation statement on 29 February 2024. (10)

1.2.4 Provide TWO internal control measures to control cash. (04)

1.2.5 Indicate TWO internal control measures that can be implemented

regarding EFT payments. (04)

1.2.6 A payment made to one of our creditors on the 19th was not received by
the creditor. It was discovered that the money was sent to the creditor's
old account which is now closed. Give TWO points explaining why it is
important to verify account details before making any payments. (04)
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INFORMATION:

A. Extract from the Bank Reconciliation Statement on 31 January 2024:

Outstanding deposit: 15 January 2024 15 000

Outstanding deposit: 20 January 2024 21 500
Outstanding deposit: 30 January 2024 12 000
Outstanding EFT 410 7 200
Favourable balance as per bank account on 31
17 500
January 2024

NOTE:

• The outstanding deposit on the 15th and 30th of January 2024 both appeared
on the bank statement with the correct amounts.

• The outstanding deposit on the 20th of January 2024 appeared in the February
bank statement with the correct amount of R19 500. This amount was received
from a debtor.

• The outstanding EFT 410 of R7 200 was a scheduled payment for the purchase
of stationery. The order was cancelled, and the payment must be reversed.

B. The provisional totals in the Cash Journals

• Cash Receipt Journal R 205 500

• Cash Payment Journal R 178 400

C. The following appeared in the bank statement for February but not in the
cash journals:

• A deposit made for monthly rent by a tenant for R11 500.

• R 50 000 received from Honey Bank for a fixed deposit that has matured.

• Payment made to Mogale Municipality for water and electricity R1 500.

• The bank statement shows a debit order of R780 from MTT Stores, the
business does not haS MTT Stores as a service provider.
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• Cash handling fees R1 000.

• Service fees amount to R940

• Interest earned on a current account R 570

• A credit card payment of R645 for food purchased for the owner’s private
residence.

• The statement reflected an EFT for R3 000 for trading stock, this was
incorrectly recorded in the journals as R1 345.

• Monthly repayment for a loan from EN Bank, R 10 500.

• An EFT payment of R750 to Shine Stores. This amount was for goods
purchased by the cashier for her own use.

• A deposit of R18 000, this amount was deposited into our account by mistake
by the bank. The bank agreed to correct the error next month.

D. The following appeared in the Cash Journals for February but not in the
bank statement:

• Outstanding deposit 20 February 2024 R 10 600

• Outstanding deposit 27 February 2024 R15 000

• Outstanding EFT 510 of R8 500 made to a creditor.

E. Balance at the end of the month as per bank statement?

[55]
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QUESTION 2: CREDITORS' RECONCILIATION AND INTERNAL CONTROL

(25 marks; 20 minutes)

BaseM TRADERS

BaseM Traders buys goods on credit from various suppliers, including Mokoena
Suppliers.

REQUIRED:

2.1 The new bookkeeper employed at BaseM has not been preparing the Creditors'
Reconciliation Statement every month. Provide TWO reasons why is it important
to have control over creditors? (02)

2.2 Refer to INFORMATION A:

Prepare a correct creditors' list in the books of BaseM Traders after considering
all the adjustments referred to in INFORMATION A. (09)

2.3 Refer to INFORMATION B:

Reconcile the creditors' ledger of Mokoena Suppliers in the books of BaseM

Traders to the statement of account received from Mokoena Suppliers. (11)

2.4 The bookkeeper found out that the owner was ordering merchandise for his
personal use and was putting through the cost as purchases of the business. What
should the bookkeeper say to the owner? (02)
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INFORMATION:

A. Creditors' List on 29 February 2024.

Masuku Suppliers R 18 000
Maleka Suppliers R 5 900
Hadebe Suppliers R 10 300
Matshaba Suppliers R 7 000
Ngubeni Suppliers R 6 800
Mokoena Suppliers R 21 700
R 69 700

The creditors' list above was prepared before considering the following
adjustments.

• A payment of R10 000 made to Masuku Suppliers has not been recorded.

• An invoice of R2 200 for goods purchased from Ngubeni Suppliers was incorrectly
recorded in the account of Hadebe Suppliers.

• A trade discount of 2.5% granted by Matshaba Suppliers on merchandise

purchased has not been recorded. The amount after the trade discount was
R6 630.

• Goods to the value or R 1 500 were returned to Masuku Suppliers.

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B. The following balances were extracted from the books of BaseM Traders and the
Statement of Account received from Mokoena Suppliers.

Note: Mokoena Suppliers closes their books on the 25TH of each month.

Balance of the account of Mokoena Suppliers in the

R21 700
creditor’s ledger of BaseM Traders on 29 February 2024:

Balance on the Statement received from Mokoena Suppliers

R23 900
on 25 February 2024.

Errors and omissions

(i) Mokoena Suppliers omitted to record the invoice for goods purchased for
R 3 000.

(ii) The statement incorrectly recorded merchandise returned for R580 as an

invoice.

(iii) Goods ordered by BaseM Traders for R250 was not recorded in both the creditors
ledger and the creditors statement.

(iv) A payment reflected on the creditors’ ledger of Mokoena Suppliers for R2 250, as
actually a payment made to Makoena Ltd.

(v) A discount of R180 received for an early payment as correctly recorded in the
statement only.

(vi) The statement reflects a transfer of a credit balance of R420 for BaseM Traders
in the debtor’s ledger to their balance in the creditor’s ledger.

(vii) The creditors ledger reflected a payment of R1 550 made on the 26 February
2024.
[25]
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QUESTION 3: FIXED ASSETS (50 marks;40 minutes)

MZIZI TRADERS

The following information was extracted from the books of Mzizi Traders. Their financial
year ends on 30 April 2024.

REQUIRED:

3.1.1 Calculate the depreciation of Vehicles and Equipment. Use the table provided as
a guide. (12)

3.1.2 Complete the Asset disposal account in the General Ledger. (11)

3.1.3 Prepare the Tangible Asset note. Show calculations where necessary. (27)

INFORMATION:

A. Balances on 30 April 2024

Land and buildings 1 050 000
Vehicles 900 000
Accumulated depreciation on vehicles (1 May 2023) 555 000
Equipment 480 000
Accumulated depreciation on equipment (1 May 2023) 438 000

B. ADDITIONAL INFORMATION:

Land and buildings

• During the year a mortgage loan of R300 000 was taken from KIN Bank to
purchase a new property.

• Further repairs worth R15 000 was done on the old building.

• No entries have been made.

Vehicles

• A new vehicle costing R160 000 was bought on 29 February 2024.

• A delivery vehicle was sold for R81 250 cash on 01 December 2023. The
accumulated depreciation on 01 May 2023 was R360 000 and the carrying
value on the same day amounted to R70 000.

• Vehicles are depreciated at 15% p.a. on the carrying value method.

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Equipment

• New equipment was purchased half-way through the financial year for
R90 000. This transaction was not yet recorded.

• Equipment is depreciated at 10% p.a. on the cost price.

[50]

QUESTION 4: CONCEPTS (20 marks; 16 minutes)

REQUIRED:

Read the case studies below and answer the questions that follow:

INFORMATION:

4.1 James Nxumalo is the manager of Tic Comp Traders. He is considering replacing
the current computers the business has. Some of the employees feel that this is not
a necessary expenditure since the computers were purchased three years ago.

4.1.1 Depreciation is an unusual expense in that it does not involve the outflow of
cash from a business. Identify ONE other example of a similar type of
expense. (02)

4.1.2 Provide TWO points in favour of the manager’s proposal. (04)

4.1.3 Provide TWO points in support of the employees. (04)

4.1.4 If the computer was sold and the business made a loss, in which financial
statement would the loss be recorded. (02)

4.1.5 “When on asset is sold at book value/carrying value the net profit decreases.”
Is this statement True or False? Provide a reason for your answer. (02)

4.2 The supervisor in the copying and duplicating room is concerned about the large
expense on repairs and maintenance of copying machines. She also noticed that
large amounts of money is spent on copying paper, toners, and stencils.
Suggest THREE measures that can be put in place to control these expenses. (06)
[20]

TOTAL: 150
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ANNEXURE
FORMULA SHEET

𝐆𝐫𝐨𝐬𝐬 𝐩𝐫𝐨𝐟𝐢𝐭 𝟏𝟎𝟎 𝐆𝐫𝐨𝐬𝐬 𝐩𝐫𝐨𝐟𝐢𝐭 𝟏𝟎𝟎 𝐍𝐞𝐭 𝐩𝐫𝐨𝐟𝐢𝐭 𝟏𝟎𝟎

𝐱 𝐱 𝐱
𝐒𝐚𝐥𝐞𝐬 𝟏 𝐂𝐨𝐬𝐭 𝐨𝐟 𝐒𝐚𝐥𝐞𝐬 𝟏 𝐒𝐚𝐥𝐞𝐬 𝟏

𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐧𝐠 𝐄𝐱𝐩𝐞𝐧𝐬𝐞𝐬 𝟏𝟎𝟎 𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐧𝐠 𝐏𝐫𝐨𝐟𝐢𝐭 𝟏𝟎𝟎

𝐱 𝐱
𝐒𝐚𝐥𝐞𝐬 𝟏 𝐒𝐚𝐥𝐞𝐬 𝟏

𝐓𝐨𝐭𝐚𝐥 𝐄𝐚𝐫𝐧𝐢𝐧𝐠𝐬 𝐛𝐲 𝐏𝐚𝐫𝐭𝐧𝐞𝐫 𝟏𝟎𝟎 𝐍𝐞𝐭 𝐏𝐫𝐨𝐟𝐢𝐭 𝟏𝟎𝟎

𝐱 𝐱
𝐀𝐯𝐞𝐫𝐚𝐠𝐞 𝐏𝐚𝐫𝐭𝐧𝐞𝐫 ′ 𝐬 𝐄𝐪𝐮𝐢𝐭𝐲 𝟏 𝐀𝐯𝐞𝐫𝐚𝐠𝐞 𝐏𝐚𝐫𝐭𝐧𝐞𝐫′𝐬 𝐄𝐪𝐮𝐢𝐭𝐲 𝟏

𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐀𝐬𝐬𝐞𝐭𝐬 − 𝐈𝐧𝐯𝐞𝐧𝐭𝐨𝐫𝐢𝐞𝐬

𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐀𝐬𝐬𝐞𝐭𝐬 ∶ 𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬
∶ 𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬

𝐓𝐫𝐚𝐝𝐞 𝐚𝐧𝐝 𝐎𝐭𝐡𝐞𝐫 𝐑𝐞𝐜𝐞𝐢𝐯𝐚𝐛𝐥𝐞𝐬 + 𝐂𝐚𝐬𝐡 𝐚𝐧𝐝 𝐂𝐚𝐬𝐡 𝐄𝐪𝐮𝐢𝐯𝐚𝐥𝐞𝐧𝐭𝐬 ∶ 𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬

𝐀𝐯𝐞𝐫𝐚𝐠𝐞 𝐃𝐞𝐛𝐭𝐨𝐫𝐬 𝟑𝟔𝟓 𝟏𝟐

𝐱 𝐨𝐫 𝐀𝐯𝐞𝐫𝐚𝐠𝐞 𝐂𝐫𝐞𝐝𝐢𝐭𝐨𝐫𝐬 𝟑𝟔𝟓 𝟏𝟐
𝐂𝐫𝐞𝐝𝐢𝐭 𝐒𝐚𝐥𝐞𝐬 𝟏 𝟏 𝐱 𝐨𝐫
𝐂𝐫𝐞𝐝𝐢𝐭 𝐏𝐮𝐫𝐜𝐡𝐚𝐬𝐞𝐬 𝐨𝐫 𝐂𝐨𝐬𝐭 𝐨𝐟 𝐒𝐚𝐥𝐞𝐬 𝟏 𝟏

𝐀𝐯𝐞𝐫𝐚𝐠𝐞 𝐈𝐧𝐯𝐞𝐧𝐭𝐨𝐫𝐢𝐞𝐬 𝟑𝟔𝟓 𝟏𝟐 𝐂𝐨𝐬𝐭 𝐨𝐟 𝐒𝐚𝐥𝐞𝐬

𝐱 𝐨𝐫
𝐂𝐨𝐬𝐭 𝐨𝐟 𝐒𝐚𝐥𝐞𝐬 𝟏 𝟏 𝐀𝐯𝐞𝐫𝐚𝐠𝐞 𝐈𝐧𝐯𝐞𝐧𝐭𝐨𝐫𝐢𝐞𝐬

𝐍𝐨𝐧 𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬 ∶ 𝐏𝐚𝐫𝐭𝐧𝐞𝐫𝐬 𝐄𝐪𝐮𝐢𝐭𝐲 𝐓𝐨𝐭𝐚𝐥 𝐀𝐬𝐬𝐞𝐭𝐬 ∶ 𝐓𝐨𝐭𝐚𝐥 𝐋𝐢𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬

𝐅𝐢𝐱𝐞𝐝 𝐂𝐨𝐬𝐭𝐬
𝐒𝐞𝐥𝐥𝐢𝐧𝐠 𝐩𝐫𝐢𝐜𝐞 𝐩𝐞𝐫 𝐮𝐧𝐢𝐭 − 𝐯𝐚𝐫𝐢𝐚𝐛𝐥𝐞 𝐜𝐨𝐬𝐭𝐬 𝐩𝐞𝐫 𝐮𝐧𝐢𝐭
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1

PROVINCIAL EXAMINATION
JUNE 2024
GRADE 11

ACCOUNTING
PAPER 2

ANSWER BOOK

TIME: 2 hours
MARKS: 150

10 pages

Name of school
Name of learner
Date

Question Topic Possible Obtained Moderated

Marks Marks Marks
Bank Reconciliation and Internal
1 55
Control
Creditors' Reconciliation and
2 25
Ethics
3 Fixed Assets 50
4 Internal control 20
TOTAL 150

.
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QUESTION 1: BANK RECONCILIATION AND INTERNAL CONTROL

(55 marks;44 minutes)

1.1 State whether the following statements are TRUE or FALSE.

1.1.1

1.1.2

1.1.3 03

1.2.1 Complete the Cash Receipts Journal and the Cash Payments Journal
for February 2024. Use the correct details (contra account).

Cash Receipt Journal Cash Payment Journal

Details Amount Details Amount

Provisional totals 205 500 Provisional totals 178 400

26
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1.2.2 Calculate the correct Bank Account balance on 29 February 2024.

04

1.2.3 Prepare the Bank Reconciliation Statement on 29 February 2024.

Bank Reconciliation statement of SK Stores on 29 February 2024.

DEBIT CREDIT

10

1.2.4 Provide TWO internal control measures to control cash.

04
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1.2.5 Indicate TWO internal control measures that can be implemented

regarding EFT payments.

04

1.2.6 A payment made to one of our creditors on the 19th was not received
by the creditor. It was discovered that the money was sent to the
creditor's old account which is now closed. Give TWO points
explaining why it is important to verify account details before making
any payments.

04

55
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QUESTION 2: CREDITORS RECONCILIATION AND ETHICS

(25 marks; 20 minutes)

2.1 Provide TWO reasons why it is important to have control over

creditors.

02

2.2 Prepare a correct creditors' list in the books of BaseM Traders after
considering all the adjustments referred to in INFORMATION A.

Creditors' list on 29 February 2024

Masuku Suppliers (18 000

Maleka Suppliers (5 900

Hadebe Suppliers(10 300

Matshaba Suppliers (7 000

Ngubeni Suppliers (6 800

Mokoena Suppliers (21 700

09
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2.3 Statement of Account

Creditors' Ledger Account
received from Mokoena
of Mokoena Suppliers.
Suppliers.
Balances 21 700 23 900
(i)

(ii)

(iii)

(iv)

(v)

(vi)

(vii)

12

2.4 The bookkeeper found out that the owner was ordering
merchandise for his personal use and was putting through the
cost as purchases of the business. What should the bookkeeper
say to the owner?

02

25
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QUESTION 3: FIXED ASSET (50 marks;40 minutes)

3.2.1. CALCULATE DEPRECIATION FOR VEHICLES Amount

SOLD:

OLD:

NEW:

Total depreciation for the year 08

CALCULATE DEPRECIATION FOR EQUIPMENT Amount

OLD:

NEW:

Total depreciation for the year 04

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3.2.2 Dt Asset Disposal Account N6 Cr

11

3.2.3 Fixed Assets Land and Vehicles Equipment

buildings
Carrying value: beginning of the
year
Cost

Accumulated depreciation (555 000) (438 000)

Movements

Additions at cost
Disposal at carrying value

Depreciation for the year

Carrying value: end of the year

Cost

Accumulated depreciation

27

50
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QUESTION 4: INTERNAL CONTROL (20 marks; 16 minutes)

4.1.1 Depreciation is an unusual expense in that it does not involve the outflow
of cash from a business. Identify ONE other example of a similar type of
expense.

02

4.1.2 Provide TWO points in favour of the manager’s proposal.

04

4.1.3 Provide TWO points in support of the employees.

04

4.1.4 If the computer was sold and the business made a loss, in which financial
statement would the loss be recorded.

02

4.1.5 “When a asset is sold at book value/ carrying value net profit decreases.” Is
this statement True or False? Provide a reason for your answer.

02
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4.2 The supervisor in the copying and duplicating room is concerned about
the large expense on repairs and maintenance of copying machines. She
also noticed that large amount of money is spent on copying paper,
toners, and stencils.

Suggest THREE measures that can be put in place to control these

expenses.

06

20

TOTAL MARKS

150
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1

PROVINCIAL EXAMINATION
JUNE 2024
GRADE 11
MARKING GUIDELINES

ACCOUNTING PAPER 2
10 pages
Marking principles:
1. Penalties for foreign items are applied only if the candidate is not losing marks
elsewhere in the question for that item (no penalty for misplaced items). No double-
penalty is applied.
2. Penalties for placement or poor presentation (e.g. details) are applied only if the
candidate is earning marks on the figures for that item.
3. Full marks for correct answer. If the answer is incorrect, mark the workings provided.
4. If a pre-adjustment figure is shown as a final figure, allocate the part-mark for the
working for that figure (not the method mark for the answer).
5. Unless otherwise indicated, the positive or negative effect of any figure must be
considered to award the mark. If no + or – sign or bracket is provided, assume that
the figure is positive.
6. Where indicated, part-marks may be awarded to differentiate between differing
qualities of answers from candidates.
7. Where penalties are applied, the marks for that section of the question cannot be a
final negative.
8. Where method marks are awarded for operation, the marker must inspect the
reasonableness of the answer and at least one part must be correct before awarding
the mark.
9. In awarding method marks, ensure that candidates do not get full marks for any item
that is incorrect at least in part.
10. Be aware of candidates who provide valid alternatives beyond the marking
guidelines.
11. Codes: F=foreign item; P=placement/presentation.
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QUESTION 1: BANK RECONCILIATION AND INTERNAL CONTROL

(55 marks; 44 minutes)

State whether the following statements are TRUE or

1.1
FALSE.
1.1.1 False ✓

1.1.2 True ✓

1.1.3 True ✓ 03

1.2 1 Complete the Cash Receipts' Journal and the Cash Payments' Journal
for February 2024. Use the correct details (contra account).

Cash Receipt Journal Cash Payment Journal

Details Amount Details Amount

Provisional totals 205 500 Provisional totals 178 400

Stationery  7 200 Debtors' control  2 000

Rent income  11 500 Water and electricity  1 500

Fixed deposit:Honey Bank 50 000 Bank charges  1 940

Interest on current 570 Drawings  645
account/Interest Income 
Trading stock 1 655
Loan: EN Bank 10 500
Trading stock  750 

274 770  197 390

26
Award method marks only if the totals are greater than R205 500 and R178 400 respectively
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1.2.2 Calculate the correct Bank Account balance on 29 February 2024.

R17 500  + 274 770 – 197 390 = R94 880 

04

1.2.3 Prepare the Bank Reconciliation Statement on 29 February 2024.

Bank Reconciliation statement of SK Stores on 29 February 2024.

DEBIT CREDIT

CR Balance as per Bank Statement 95 000

CR Outstanding Deposit 10 600
CR Outstanding Deposit 15 000
DR Outstanding EFT 8 500
DR Correction of error 18 000
CR the incorrectly Dr amount 780 
DR Balance as per Bank Account 94 880

 Award mark if both totals are the same 121 380 121 380 10

1.2.4 Provide TWO internal control measures to control cash.

• Encourage EFT payments by customers.
• Cash must be deposited daily (check deposit slip against receipts).
• Request the bank to send notifications of all transactions.
• Split duties amongst employees, the person who issues receipts must
not be the same person making the deposits.
04
 For any relevant answers. For partial answers.
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1.2.5 Indicate TWO internal control measures that can be implemented

regarding EFT payments.
• All payments made need to be authorised by a supervisor/senior
official.
• Only specific personnel need to have access to the banking app.
• Check EFT payments against CPJ.

For any relevant answers. For partial answers 04

1.2.6 A payment made to one of our creditors on the 19th was not received
by the creditor. It was discovered that the money was sent to the
creditors old account which is now closed. Give TWO points
explaining why it is important to verify account details before
making any payments.
• It’s the responsibility of the bookkeeper to verify the account number
because the bank will not be responsible for any loss incurred.
• Before confirming the payment, the bank might indicate that the name
of the person does not match the account details, if so, do not confirm
payment.
• Save regular payees as beneficiaries so that it is easier to send the
money to the correct person with the correct details.
• Ensure that you update your creditors' details on a regular basis.

For any relevant answers.  For partial answers 04

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QUESTION 2: CREDITORS' RECONCILIATION AND ETHICS

(25 marks; 20 minutes)

2.1 Provide TWO reasons why it is important to have control over

creditors
• To ensure that the correct amount is paid over to the creditor.
• To ensure that creditors are paid on time to qualify for essential
discounts.
• To make use of the full 60-90 days credit terms to maintain good cash
flow.

1 mark each for any relevant answers. 02

2.2 Prepare a correct creditors' list in the books of BaseM Traders after
considering all the adjustments referred to in INFORMATION A.
Creditors' list on 29 February 2024
Masuku Suppliers (18 000 – 10 000- 1 500)  6 500

Maleka Suppliers (5 900) ✓ 5 900

Hadebe Suppliers(10 300 – 2 200) ✓ 8 100

2.5
Matshaba Suppliers (7 000 – (6630 𝑥 97.5 ✓✓)  6 800

Ngubeni Suppliers (6 800 +2 200) ✓ 9 000

Mokoena Suppliers (21 700) ✓ 21 700

 51 200
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2.3 Statement of Account

Creditors' Ledger Account
received from Mokoena
of Mokoena Suppliers.
Suppliers.
Balances 21 700 23 900
(i) + 3 000
–580 –580
(ii)
award 2 marks for -1160
(iii) +250 +250
(iv) +2 250
(v) –180
(vi) +420
(vii) –1 550

 24 440 24 440 12
Award method mark only if both totals are the same and takes into account the opening
balances

2.4 The bookkeeper found out that the owner was ordering
merchandise for his personal use and was putting through the
purchases as part of the business. What should the bookkeeper
say to the owner?
• What he is doing is unethical.
• He is committing fraud.

2 marks for any relevant answer. 

02

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QUESTION 3: FIXED ASSET (50 marks; 40 minutes)

3.2.1. CALCULATE DEPRECIATION FOR VEHICLES Amount

SOLD:
6 125
70 000 x 15% x 7/12 =
430 000 – 360 000 = 70 000 cv
OLD:

900 000 – 430 000 = 470 000

555 000 – 360 000 = 195 000 41 250

Therefore: 470 000 – 195 000 = 275 000x 15% =

NEW:
4 000
160 000 x 15% x 2/12 =
Total depreciation for the year 51 375 08

CALCULATE DEPRECIATION FOR EQUIPMENT Amount

OLD:
41 999
42 000 – R1 =

NEW: 4 500

90 000 x 10% x 6/12 =

Total depreciation for the year 46 499
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3.2.2 Dr Asset Disposal Account N6 Cr

2024 30 Vehicles GJ 2024 30 Accumulated GJ
Apr  Apr depreciation
430 000 on vehicles  366 125*
(360 000 +
70 000) (360 000 +
6 125 see
3.2.1)
Profit on GJ Bank  CRJ
sale of 17 375 81 250
asset 
*Award 3 marks on 366 125 if no calculations are shown

447 375 447 375

11

3.2.3 Fixed Assets Land and Vehicles Equipment

buildings
Carrying value: Beginning of the
1 050 000 345 000 42 000
year
Cost 1 050 000 900 000 480 000
Accumulated depreciation (555 000) (438 000)
Movements
Additions at cost 300 000 160 000 90 000
Disposal at carrying value
(63 875) 

Depreciation for the year (51 375)  (46 499) 

Carrying value: End of the year 1 350 000 389 750 85 501
Cost 1 350 000 630 000 570 000
Accumulated depreciation (240 250)  (484 499) 

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QUESTION 4: INTERNAL CONTROL (20 marks; 16 minutes)

4.1.1 Depreciation is an unusual expense in that it does not involve the

outflow of cash from a business. Identify ONE other example of similar
type of expense.
Any relevant non-cash expense 

Bad debts; Discount allowed; Trading stock deficit; Discount Received

02

4.1.2 Provide TWO points in favour of manager’s proposal.

Any TWO valid points  

• Need to update present systems – keep up with technology.

• Purchase latest model to improve productivity.
• Global business environment – compatible with competitors.
• Maintain the image of the business – reputation. 04

4.1.3 Provide TWO points in support of the employees.

Any TWO valid points  

• Cash could be used for other purposes (incentives).

• With new computers, training will be needed.
• Time wastage in installing and training. 04

4.1.4 If the computer was sold and the business made a loss, in which
financial statement will the loss be recorded.

Income statement/Statement of comprehensive income  02

4.1.5 “When asset is sold at book value/carrying value net profit decreases.”
Is this statement True or False? Provide a reason for your answer.

False
Since it is being sold at carrying value no profit or loss is being made 
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4.2 The supervisor in the copying and duplicating room is concerned

about the large expense on repairs and maintenance of copying
machines. She also noticed that large amount of money is spent on
copying paper, toners, and stencils.
Suggest THREE measures that can be put in place to control these
expenses.
2 marks for each complete answer 
Incomplete/unclear answers 1 mark. 

Replace the copier with an newer one.

Lease a new copier

Put measures in place to restrict copying,

E.g. Passwords to restrict excess
Have one person dedicated to making copies.

Accept any reasonable answers. 06

20

TOTAL MARKS

150