NATIONAL CERTIFICATE

FINANCIAL ACCOUNTING N4
(4010164)

13 June 2023 (X-paper)

09:00–12:00

Non-programmable calculators may be used.

This question paper consists of 11 pages and an answer book of 10 pages.

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(4010164) -2-

DEPARTMENT OF HIGHER EDUCATION AND TRAINING

REPUBLIC OF SOUTH AFRICA
NATIONAL CERTIFICATE
FINANCIAL ACCOUNTING N4
TIME: 3 HOURS
MARKS: 200

INSTRUCTIONS AND INFORMATION

1. Answer all the questions in the ANSWER BOOK (attached).

2. Read all the questions carefully.

3. Write your EXAMINATION NUMBER and the CENTRE NUMBER on each ANSWER
SHEET.

4. Where applicable, round off to the nearest RAND.

5. The time to be spent on each question is indicated below. Use the given time as a
guideline for completing the question paper.

6. Use only a blue or black pen.

7. NOTE THAT NO ANSWERS IN PENCIL WILL BE MARKED.

8. Write neatly and legibly.

QUESTIONS MARKS TIME

ALLOCATION
1 35 32 min
2 25 22 min
3 70 63 min
4 30 27 min
5 40 36 min
TOTAL 200 180 min

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QUESTION 1

The following information was taken from the accounting records of The Big Book Shop.

REQUIRED

1.1 Complete the Cash Receipts Journal and the Cash Payments Journal on
30 April 2021, after making a comparison with the bank statement for
April 2021.

NOTE: Close off the bank columns ONLY. (18)

1.2 Transfer the balances in the cash journals to the Bank Account in the General


Ledger and balance the account. (5)

1.3 Draft the Bank Reconciliation Statement on 30 April 2021. (12)

INFORMATION

BANK RECONCILIATION STATEMENT AS AT 31 MARCH 2021

DEBIT CREDIT
Dr balance as per the bank statement
Cr deposit not yet credited  126 330
100 000
Dr outstanding cheques:
# 350 600
# 454 700
# 457 2 250
# 459 800
Cr balance as per the bank account 30 680
130 680 130 680

CASH RECEIPTS JOURNAL OF THE BIG BOOK SHOP – APRIL 2021 CRJ2
Analysis Trade Sundry accounts
Doc
Day Details of Bank Sales receivables
no Amount Details
receipts control
BBS3 2 Sales 7 190 7 190
A80 4 Travel
shop 1 450 8 640 1 450 Commission
A81 13 J. Smit 1 330 1 330
BBS4 15 Sales 3 090 4 420 3 090
BBS5 24 Sales 15 960 15 960 15 960
BBS6 25 Sales 14 600 14 600
A82 26 CNA 5 200 19 800 5 200 Rent received
BSS7 30 Sales 18 600 18 600 18 600
67 420 59 440 1 330 6 650


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 CASH PAYMENTS JOURNAL OF THE BIG BOOK SHOP – APRIL 2021 CPJ2
Payee Trade Sundry accounts
Doc
no
460
Day

11 FS Traders
 Bank

3 260
payables
control
Purchases

3 260
Amount Details

461 15 Cash 5 500 5 500 Wages

462 18 Municipality 600 600 Electricity
463 20 Ink Stores 6 100 6 100
464 23 Sharp Centre 1 200 1 200 Drawings
465 25 Cartridge Club 2 350 2 350 Equipment
466 28 Telkom 900 900 Telephone
19 910 6 100 3 260 10 550


BANK STATEMENT
The Big Book Store 30 April 2021
P.O. Box 1001
Johannesburg Bank statement: # 04047
1001
DATE DESCRIPTION DEBIT CREDIT BALANCE
01/04 Balance (126 330)
01/04 Deposit 100 000 (26 330)
01/04 Cheque # 457 2 250 (28 580)
01/04 Cheque book 110 (28 690)
04/04 Credit
07/04 Cheque # 459  800
8 640 (20 050)
(20 850)
10/04 Tax levy 40 (20 890)
12/04 Cheque # 460 3 260 (24 150)
15/04 Credit 4 420 (19 730)
16/04 Cheque dishonoured 1 330 (21 060)
19/04 Cheque # 462 650 (21 710)
21/04 Interest on debit balance 220 (21 930)
22/04 Cheque # 463 6 100 (28 030)
24/04 Credit 15 960 (12 070)
25/04 Cheque # 6 063 5 740 (17 810)
26/04 Credit 19 800 1 990
28/04 Interest on debit balance 860 1 330
28/04 Credit 8 910 10 040
29/04 Insurtech 2 900 7 140
30/04 Credit 3 300 10 440
30/04 Interest on credit balance 30 10 470
30/04 Service fee 420 10 050
30/04 Cheque # 465 2 350 7 700
30/04 Cheque # 465 2 350
 5 350

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ADDITIONAL INFORMATION

1. Cheque # 350, which was issued in January 2021 to PNA Stationers for
payment of our account was lost and subsequently stopped. A new cheque will

2.
be issued in May 2021.

The credit entry on 28 April 2021 was in respect of a deposit that Coffee Café,
a tenant, made directly into the business' bank account.

3. The credit entry on 30 April 2021 was in respect of a deposit that The Big Shoe
Store made directly into their account, but it appeared on the business’ bank
statement.

4. The bank statement showed an unpaid cheque of R1 330 that was received on
16 April 2021 from J. Smit. This cheque was dishonoured due to insufficient

5.
funds.

Cheque # 462 was incorrectly entered in the cash payments journal as R600,

instead of R650 (which is correct on the bank statement).

6. Cheque # 6 063 for R5 740, withdrawn by the head office from their account,
appeared on the business’ bank statement.

7. The debit entry on 29 April 2021 was in respect of a debit order to Insurtech for
the owner's personal insurance premium.

8. Cheque # 465 was erroneously debited twice on the bank statement.


[35]

QUESTION 2

The information given below was taken from the books of your local tennis club on
28 February 2022.

REQUIRED

Prepare the following General Ledger accounts:

2.1

2.2
Membership Fees account

Income and Expenditure account

 (11)

(14)

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INFORMATION

(a) Balances/Totals on 1 March 2021

Accumulated funds
 RAND
1 058 500
Club house property (cost) 5 500 000
Equipment (cost) 885 000
Accumulated depreciation on equipment 115 400
Fixed deposit: Capitec Bank (12% p.a.) 1 350 000
Income receivable: Membership fees 6 000
Income received in advance: Membership fees 21 600

(b)
Bank (credit) 79 900

Receipts and payments for the year ending 28 February 2022 (extract)

RAND
RECEIPTS
Entrance fees 256 000
Gate takings 234 500
Membership fees: 2021 4 800


Membership fees: 2022 112 800
Membership fees: 2023 12 000

PAYMENTS
Insurance 128 700
Membership fees refunded 10 000
Stationery 4 200
Water and electricity 7 500

ADDITIONAL INFORMATION

1. Membership fees still outstanding for 2021 must be written off.

2. Sixty members must still pay their subscriptions for 2022. Fees are R400 per
member per annum.

3. Entrance fees of R56 000 must be capitalised.

4. Provide for outstanding interest on the fixed deposit at Capitec Bank. The
investment was made on 1 January 2022.

5. Stationery on hand as per the Physical Inventory count at year end, R1 800.

6. Equipment is to be depreciated at 15% per annum according to the diminishing


balance method.
[25]

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QUESTION 3
As a junior bookkeeper, you are supplied with the relevant information of Delloite Traders
for the year ending 30 June 2021.
REQUIRED 
3.1 Prepare the Statement of Profit or Loss and Other Comprehensive Income for
the year ending 30 June 2021. (36)
3.2 Complete only the assets section of the Statement of Financial Position. (8)
3.3 Draft the notes to the assets section of the Statement of Financial Position. (26)
NOTE: ▪ The statement of financial position is not required.
▪ Delloite Traders uses the periodic inventory system.
INFORMATION
DELLOITE TRADERS
PREADJUSTMENT TRIAL BALANCE ON 30 JUNE 2021
DEBIT CREDIT
BALANCE SHEET ACCOUNTS SECTION
Capital B1 368 960
Drawings B2 18 800
Equipment B3 152 000
Accumulated depreciation on equipment B4 23 200
Vehicles B5 258 840
Accumulated depreciation on vehicles B6 31 800
Inventory (1 July 2020) B7 45 860
Trade receivables control B8 42 700
Bank B9 136 700
Cash float B10 2 000
Trade payables control B11 7 800
Loan: Capital Bank (18% p.a.) B12 95 000
NOMINAL ACCOUNTS SECTION
Revenue N1 413 700
Purchases N2 143 500
Sales returns N3 7 250
Carriage on purchases
Carriage on revenue
N4
N5
990
1 065 
Credit losses N6 8 155
Credit losses recovered N7 1 880
Custom duties N8 10 400
Interest on loan N9 12 000
Packing material N10 950
Salaries N11 69 000
Settlement discount granted N12 6 540
Settlement discount received N13 570
Stationery N14 4 500
Sundry expenses N15 33 660
N16


Rent income 12 000
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 954 910 954 910

ADJUSTMENTS AND ADDITIONAL INFORMATION

1.

Trading goods of R825 were returned during this financial period. These goods
were included in the inventory on hand as mentioned above, but no other
entries were made.
2. Custom duty of R550 was still outstanding for May and June 2021.
3. Inventory on hand at 30 June 2021:
▪ Inventory, R41 999
▪ Packing material, R390
4. Rent has been received up to 31 December 2020.
5. An additional amount of R120 must be written off as irrecoverable.
6. Salaries were paid for 10 months only.

7.
NOTE: On 1 May 2021 salaries were increased by 10%.
The sundry expense account includes an amount of R11 544 for an annual

bonus which was paid up to 30 September 2021.
8. Noncurrent assets must be depreciated as follows:
• Equipment at 20% p.a. according to the diminishing balance method
• Vehicles at 15% p.a. according to the cost price method
NOTE: A new vehicle, R200 000 was purchased on 31 December 2020.
9. Create an allowance for credit losses at 5% of trade and other receivables.
10. Provide for the outstanding interest on the loan.
NOTE: The interest rate on the loan from Capital Bank was increased by 2%


on 1 January 2021.
[70]

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QUESTION 4

Young Designers has two departments, evening wear and swimwear. They use the
periodic inventory system to prepare their financial statements.

Use the information below to do the following: 

4.1 Prepare and close off the departmental purchases account. (8)

4.2 Prepare a Departmental Statement of Profit or Loss.

NOTE: Where applicable, show all the calculations in brackets.
INFORMATION
EVENING SWIM-
DETAILS TOTAL
WEAR WEAR

 Revenue
Purchases
575 000
236 000
265 000
168 000
Sales returns 25 000 15 000
Inventory: 1 March 2020 40 000 60 000
Inventory: 28 February 2021 50 000 70 000
Carriage on sales 1 500 2 000
Advertising 40 000
Finance income 6 000
Rent income 30 000
Salaries and wages 330 000

Number of employees 2 4
Floor space 40 m2 60 m2

ADJUSTMENTS AND ADDITIONAL INFORMATION


1. Ms Young took an evening dress home for her personal use. The marked
selling price was R21 000. Young Designers prices evening gowns at cost
plus 200%.

2. Evening gown fabric purchased for R5 000 was incorrectly debited to swim-
wear. This must be corrected.

3. Finance income must be shared in the ratio of 2:1 between evening wear
and swimwear.

4. The rent income must be allocated in proportion to the floor space used by
each department.

5. Advertising expenses must be allocated in proportion to the gross revenue

of each department.

6. Salaries must be allocated in proportion to the number of employees in each
department. (22)
[30]
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QUESTION 5

As a junior bookkeeper, you are requested by your manager to draft the following:

5.1 Statement of Cash Flow for Nanda Traders as at 30 June 2021.  (21)

5.2 Note for cash received from customers. (4)

5.3 Note for cash paid to suppliers and employees. (15)

INFORMATION

NANDA TRADERS
SUMMARISED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021
Note 2021 2020
ASSETS
Noncurrent assets
Property, plant and equipment 1 2 296 500 1 517 500
Other financial assets 2 25 000
Current assets
Inventory
Trade and other receivables
 244 000
200 000
181 000
227 500
Cash and cash equivalents 3 1 000 15 000
TOTAL ASSETS 2 766 500 1 941 000

EQUITY AND LIABILITIES

Total equity
Capital 4 1 320 500 1 029 000
Noncurrent liabilities
Mortgage bond: Allied Bank 1 300 000 800 000
Current liabilities
Trade and other payables 140 000 112 000
Bank overdraft 6 000
TOTAL EQUITY AND LIABILITIES 2 766 500 1 941 000

ADDITIONAL INFORMATION

1.

The owner made an additional capital contribution during the financial year.

2. The following information was extracted from the Statement of Profit or Loss
and Other Comprehensive Income for the year ended 30 June 2021:
NANDA TRADERS
EXTRACTS FROM THE STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME FOR THE YEAR ENDING 30 JUNE 2021
Note 2021
Revenue 4 200 000
Interest on bank overdraft 1 200
Interest on mortgaged bond
Interest on fixed deposit 
(The investment was made on 31/12/2020)
166 500
?

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 3. The following information was extracted from the notes to the statement of the
financial position as at 30 June 2021:

NOTE 1: PROPERTY, PLANT AND EQUIPMENT


Gross
Accumulated
2021 Cost price carrying
depreciation
amount
Land and buildings 1 600 000 1 600 000
Equipment 410 000 (267 500) 142 500
Vehicles 1 052 000 (498 000) 554 000
3 062 000 (765 500) 2 296 500

Gross
Accumulated
2020 Cost price carrying
depreciation
amount
Land and buildings 1 000 000 1 000 000
Equipment 325 000 (172 500) 152 500
Vehicles 731 000
2 056 000
(366 000)
(538 500)
365 000
1 517 500 
NOTE: A vehicle has been sold on 30 June 2021 for R132 000. The cost price of this
vehicle was R227 500 and the net carrying value amounted to R120 000.

NOTE 2: OTHER FINANCIAL ASSETS

2021 2020
Fixed deposit: Allied Bank (18%) 25 000

NOTE 3: CASH AND CASH EQUIVALENTS

Bank
 2021 2020
14 500
Petty cash 1 000 500

4. The following information was extracted from the statement of changes in

owner’s equity as at 30 June 2021:

STATEMENT OF CHANGES IN OWNER’S EQUITY

2021 2020
Opening balance 1 087 000 998 500
Add: Total comprehensive income for the year 383 500 120 500
Less: Drawings (150 000) (90 000)
Closing balance 1 320 500 1 029 000


(15)
[40]

TOTAL: 200

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