Exam Paper 2 - Term 4

ACCOUNTING

GRADE 10

TOTAL MARKS: 150

WHAT IS PLAGIARISM

Plagiarism is when you use someone else’s work without giving them
credit. Please ensure that you do not copy the answers from the online
campus or any other sources. Complete the assessment in your own
words.

DECLARATION EXAM

I declare that all work in this EXAM is my own. I have not committed
plagiarism as defined by the plagiarism policy and I have not accessed any
resources of the online campus to help me complete this EXAM. I will not
use text-to-speech software (such as Natural Readers) or any other type of
concession unless I have been approved for a concession in writing by
Academic Support within the Student Well-Being Department or SACAI in
the form of a concession letter. I will ensure that this EXAM is completed in
my own handwriting and that I have not used any stylus to assist in writing
this paper.

Type your name here

_________________________
Student signature

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LEARNING OUTCOMES Version 1

● Define and recognize basic accounting principles and concepts.

● Complete and analyze debtors reconciliation.
● Complete a budget.

INSTRUCTIONS

1. Answer the questions in the Answer book provided.

2. This activity comprises FOUR main questions.
3. Complete all questions in the order that they are presented to you.
4. The maximum mark for this Exam is 150.

5. You have 120 minutes to complete this exam.

Question Topic Time Marks

allocated

1 VAT 22 minutes 28 marks

2 Cost Accounting 28 minutes 35 marks

3 Debtors Reconciliation 46 minutes 57 marks

and internal control

4 Budget 24 minutes 30 marks

TOTAL 120 minutes 150 marks

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QUESTION 1: (28 MARKS; 22 MINUTES)

VALUE ADDED TAX

Question 1.1 (4)

Concepts

Choose the correct word/s from COLUMN A to match the description in

COLUMN B. Write only the letter (A-F) next to the question number
(1.1.1 -1.1.4) in the answer book.

COLUMN A COLUMN B

1.1.1 Input VAT A VAT is included in the selling price.

1.1.2 Lentils B An example of a VAT-exempt item.

1.1.3 School Fees C An example of a zero-rated item.

1.1.4 Output VAT D VAT paid by a trader at the purchase of

goods or services.

E VAT is paid by a trader at the purchase of

goods or services.

F VAT received by the trader for the sale of

goods and services.

Question 1.2 (24)

You are provided with information relating to All-Star Shoe Store, a

registered VAT vendor. All goods are subject to 15% VAT. The business is
owned by S Jobs.

REQUIRED:

1.2.1 What is meant by a VAT-registered vendor? (2)

1.2.2 Is it compulsory to register for VAT? Explain. (2)

1.2.3 S Jobs has not yet submitted the VAT return. Dean February
the internal auditor has noticed that an invoice for purchases

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 from Nike Wholesalers amounting to R540 000 has been
signed by S Jobs and recorded by the bookkeeper. On further
investigation, he discovered that Nike Wholesalers does not
exist.

What should Dean do about this? Explain shortly and give a (4)
reason for your answer.

1.2.4 S Jobs is having trouble completing various amounts in the (8)

tax table. She has approached you to complete the missing
values (A-F) in the table. (See Information A).

1.2.5 Calculate the total input, output VAT, and amount (8)
receivable/payable using the above.

Additional Information:

A. Tax Table:

TRANSACTIONS VAT VAT VAT

EXCLUSIVE AMOUNT INCLUSIVE

Invoices received from 520 000 A 598 000

suppliers

Invoices issued to 615 000 92 250 B

customers

Credit notes issued to D 8 250 C

customers

Debit notes issued to 60 000 E F

suppliers

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QUESTION 2: (35 MARKS; 28 MINUTES)

COST ACCOUNTING

Question 2.1 (5)

Concepts

Choose the correct COLUMN A to match the concept in COLUMN B. Write

only the letter (A-F) next to the question number (2.1.1 -2.1.5) in the answer
book.

COLUMN A COLUMN B

1.1.1 Advertising A Direct material cost

1.1.2 Office rent B Direct labour cost

1.1.3 Wood to manufacture tables and C Factory overhead cost

chairs

1.1.4 Manager in the factory D Sales and distribution cost

1.1.5 Machine operators E Administration cost

F Prime costs

Question 2.2 (30)

Chelino manufactures designer travel bags and sells them at a mark-up of

45% on cost. For December 2024, they manufactured and sold 10,500 bags.

REQUIRED:

Calculated the following costs and show all calculations:

2.2.1 Calculate the direct material cost. (9)

2.2.2 Calculate the direct labour cost. (3)

2.2.3 Calculate the total direct cost. (2)

2.2.4 Calculate the factory overhead cost. (8)

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2.2.5 Calculate the total cost of production. (3)

2.2.6 Calculate the production cost per handbag. (2)

2.2.7 Calculate the selling price per handbag. (3)

Additional Information:

The following costs were taken from the records of Chelino Manufactures
for December 2024:

Per bag Quantity Price per item

Zips 2 R6 per zip

Fabrics 2 meters R30 per metre

Sewing cotton 8 metres R3 per metre

Beads 6 packets R9 per packet

Labour

Machinists 3 hours per R150 per hour

(employees working on the bags) bag

Factory manager R12 500

Cleaning staff (factory) R6 000

Rent ( 60% allocated to factory) R8 540

Electricity is split between the factory and office 2:1 R1 500

respectively)

Factory expenses R1 500

Bookkeeper R20 000

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QUESTION 3: (57 MARKS; 46 MINUTES)

DEBTOR`S RECONCILIATION AND INTERNAL CONTROL

Question 3.1 (5)

Concepts

Indicate whether the following statements are TRUE or FALSE. If false give
the correct answer to make the statement TRUE.

3.1.1 Trade creditors are classified as current assets in the records of a

business.

3.1.2 Payments made to creditors are recorded on the debit side of their
account.

3.1.3 A receipt is issued by a debtor when goods are purchased on

credit.

Question 3.2 (52)

The information provided below was extracted from the records of BnB
Stores for August 2024. The business maintained a mark-u of 25% on cost.

REQUIRED:

3.2.1 Reconcile the Debtors’ Control to the Debtors’ List for (40)
August 2024.

3.2.3 Name TWO strategies that can be implemented to (4)

encourage debtors to pay their accounts on time.

3.2.4 Sammy Smith works for BnB Stores. He is responsible for

the following: ordering goods, receiving goods delivered by
suppliers, and payment to the suppliers for goods delivered.

The owner of BnB Stores is concerned that sales figures are

not improving but goods (trading stock) are replaced
frequently.

Provide THREE internal control measures that should be

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 implemented by BnB Stores to prevent stock from going (6)
missing.

3.2.5 Why should the Debtors’ Control and the Debtors’ List (2)
always agree? Explain in ONE point.

Additional Information:

Debtors Control

Aug 1 Balance b/d 41 550 Aug 30 Debtors DAJ 8400

allowances

30 Sales DJ 307 300 Bank and CRJ 230 550

discount
allowed

Journal GJ 5 700 Journal GJ 2 400

Debits credits

Balance c/d ?

Sep 1 Balance b/d ?

Debtors List on 31 August 2024

C Smith 5 000

D Green 40 690

M Truter 5 500

M Sons 4 560

C. Botha 6 500

L. Nkozi 46 000

G. Stuurman 7 680

B. Zunaid 15 600

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A. Errors and omissions:
● The balance of the Debtors’ Control account was overstated on 1
August by R1 080.

● The credit balance of M Sons in the Debtors’ List must be transferred to

the creditors’ ledger.

● The total column of sales in the Debtors’ Journal was undercast by R25
000.

● A credit invoice of R9 700 for goods purchased by B. Zunaid has not

been recorded at all.

● A receipt of R18 000 for L. Nkozi was correctly recorded in the debtors’
account but was omitted from the Subsidiary Journal.

● An entry of R2 000 in respect of merchandise returned by M Truter was

not entered in the Subsidiary Journal and was entered on the wrong
side of his account.

● No entry has been made for goods returned of R3 600 from C. Smith.

● C Botha returned stock of R5 800. This was correctly recorded in the

Subsidiary Journal but was recorded as R8 5 00 in the debtors’ account.

● No entry has been made for interest charged on G. Stuurman’s arrears

of R8 000. This amount was 3 months in arrears, interest is charged at
5% per annum.

● D Green EFT of R8 550 towards his account after deducting a 5%

discount. The discount was recorded in the Ledger but not in the
Subsidiary Journal.

QUESTION 4: (30 MARKS; 24 MINUTES)

BUDGETS

The netball team of UCT High School is planning a tour (trip) to Durban.
The tour is scheduled for the December 2024 school holidays.

REQUIRED:

4.1.1 Calculate the total expected tour cost for all the players (for (27)
a three-day tour).

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4.1.2 Calculate the cost of the tour per player. (3)

Additional Information:

● There are 7 players, 5 reserves in a team, and 2 coaches. It is stated in

the school policy that the cost of the 2 coaches must be covered by the
players.

● The school was able to secure a sponsorship of R25 000 from Planet
Netball.

● A donation of R10 700 was received from a netball player who plays for
the national team.

● The following are the costs/expenses for the tour:

➢ Uniform/Kit: A quotation was received from Cassim Outfitters for

new uniforms and a sweater which amounts to R800 per player. The
coaches will also receive sweaters that will cost R250 each.

➢ Accommodation: The team will sleep in two of Durban`s

dormitories for the duration of the tour, at a cost of R1 000 per
dormitory, per day.

➢ Transport: Bus hire is R15 000 plus R2,50 per km. The return distance
to and from Durban is 2,164 km.

➢ Meals: The team will be supplied with supper at a cost of R50 per
person and breakfast at R23 per person. Lunch costs will be covered
by the players.

➢ Entrance fee: On the third day the team and coaches will visit the
Ushaka Marine World. The entrance fee is R350 per person. A 20%
discount is granted for group bookings exceeding 10 people.

GRAND TOTAL: 150 MARKS

EXAM END

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