Cycle Test – Term 3

ACCOUNTING QUESTION PAPER

GRADE 10

TOTAL MARKS: 100

WHAT IS PLAGIARISM

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

DECLARATION CYCLE TEST

I declare that all work in this CYCLE TEST is my own. I have not
committed plagiarism as defined by the plagiarism policy. I have not
accessed any resources of the online campus to help me complete
this CYCLE TEST. 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 CYCLE TEST 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

● Recall, deffine and recognise basic concepts and principles

of accounting.
● Interpret and apply the principles and concepts to the work.
● Complete basic calculations for and in the financial statements.

INSTRUCTIONS

1. This activity comprises three main questions.

2. Answer all questions in the ANSWER BOOK provided.
3. The maximum mark for this Cycle Test is 100.
4. You have 1 hour 30 minutes (90 minutes) to complete this paper.
5. Use the time allocations per question as a guideline for completing
the paper.
6. Non-programmable calculators may be used.
7. Show all calculations to earn part marks.

Question Topic Time Marks

allocate
d
1 Concepts 6 minutes 10

2 Financial statements 66 minutes 72

3 Fixed Asset note 18 minutes 18

TOTAL 90 minutes 100 marks

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 QUESTION
1:
Concepts 10 marks, 6 minutes

Question 1.1 [10 marks, 6 minutes]

Choose the correct word(s) from COLUMN B to match the description in

COLUMN A. Write only the letter (A–G) in COLUMN B next to the number
(1.1.1–1.1.5) in the answer book. Example: 1.1.1 A

COLUMN A COLUMN B

1.1.1 Determines the financial position of A. Residual Amount

a business within a specified period.

1.1.2 Financial information is always B. Income Statement

reported more conservatively.

1.1.3 Full amount of an asset cannot be C. Balance Sheet

written off as long as it is in the
business possession.

1.1.4 Determines the financial D. Prudence

performance of a business within a
specific period.

1.1.5 Shows the profitability, solvency, and E. Fixed Asset Note

liquidity of the business.

F. Financial Statements

G. Net Profit

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QUESTION
2:
Financial Statements 72 marks, 66 minutes

You are provided with information relating to Clean and Tide Traders for
the year ending 30 June 2024. They sell cleaning materials and work on a
proffit mark-up of 50%.

REQUIRED:

2.1 Prepare the

Income Statement for the year ended 30 June 2024 (49)
2.2Complete the notes for the year ended 30 June 2024.
2.2.1 Trade and
other receivables. (8)
2.2.2 Trade and
other payables. (15)
Pre-adjustment trial balance of Clean and Tide Traders on 30 June
2024

BALANCE SHEET ACCOUNTS SECTION

Capital (Balance on 1 July 2023) 852 000
Drawings 84 520
Land and buildings 1 222 000
Equipment 63 000
Accumulated Depreciation on Equipment 19 600
Fixed deposit: Nedbank (8% p.a.) 33 000
Trading inventory 68 700
Debtors control 24 000
Bank 3 940
Mortgage Loan: Nedbank (15% p.a.) 40 000
Creditors control 33 700
SARS – PAYE 3 405
SARS – UIF 2 700
Pension fund 21500
Creditors for Salaries 48 000
NOMINAL ACCOUNTS SECTION
Sales 1 362 400
Cost of Sales 530 000
Debtors Allowances 15 000
Rent Income 33 250
Salaries 348 405
Stationery 1 300

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Repairs and Maintenance 5 000
Advertising 7 000
Insurance 11 330
Bank charges 2 400
Interest on the loan 3 270
Interest on current account 290
Interest on Fixed deposit 2 420
Commission income 15 600
UIF Contribution 2 500
Pension Contribution 11 000

Additional information and adjustments:

1. The bank statement received on 30 June 2024, showed the following

entries which have not yet been recorded:
● A payment received from a debtor was returned by the bank:
R2 700
● Service fees: R240
● Interest on overdraft: R150
● Cash levy: R 360
2. Commission income for June 2024 of R2 400, has still not been
received.
3. On 30 June 2024, a debtor returned items to the value of R6 000. The
goods were placed back on the shelves for resale. No entries have
been made.
4. On 30 June 2024 after a physical stock take, the following items were
on hand:
● Trading inventory: R68 000
● Stationery: R400
5. Provide for outstanding interest on the fixed deposit.
6. J Jackson, a debtor, was declared insolvent. Of the R5 230 owed by M
Muller, only 30c in the Rand was received and recorded. The
remainder needs to be written off as Bad Debt.
7. Repairs to the value of R5 400 were recorded to Advertising in error,
this needs to be corrected
8. On 30 June 2024, the owner withdrew R2 000 from the business. He
also decreased his capital contribution by R10 000. No entries were
made.

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9. Insurance includes an annual levy of R1 800 paid on 1 January 2024.
10. An employee resigned in May, but the bookkeeper had accidentally
kept him in the Salary Journal. No payments have been made. The
employee’s Gross Salary is R20 000. The following deductions and
contributions were taken into account:

● Deductions:
o PAYE 15% on Gross Salary.
o UIF 1% on Gross Salary.

● Contributions:
o 8% to the pension based on their Net Salary (gross minus PAYE
and UIF)
o UIF one-to-one rand.
11. Rent was received in advance for July 2024. On 1 May 2024, the rent
increased by R250 per month.
12. Make provision for depreciation on equipment (at a rate of 15% p.a.
on cost price). A new computer of R8 000 was purchased on 30 April
2024. The cost price was recorded in the equipment account.

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QUESTION 3:

FIXED ASSET NOTE 18 marks, 18 minutes

The following information was extracted from the accounting records of

GEARS-R-US a business owned by Kai Cenat, which sells sports
equipment. The financial year end is February 2024.

Required:
3.1 Calculate the missing figures in the Tangible/Fixed Asset Note
(18)
denoted by letter A–D by using the below information
INFORMATION

Fixed/Tangible Asset Note for the year ended February 2024:

EQUIPMENT VEHICLES
Carrying Value at beginning of the (A)
year
Cost 180 000 550 000
Accumulated depreciation (72 000) (137 500)
MOVEMENTS
Additional at cost 0 (B)
Disposals at Carrying Value (C)
Depreciation (36 000) (D)
Carrying Value at the end of the
year
Cost 135 000 (E)
Accumulated depreciation (94 500)

Additional Information:

Equipment:

● On equipment at 20% p.a on cost

● Equipment with a cost price of R45 000 and
accumulated deprecation of R13 500 was sold at the
end of the year

Vehicles:

● On vehicles at 25% p.a on diminishing balance method

● Additional vehicles were purchased at R60 000 on 1 September 2023

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GRAND TOTAL: 100 MARKS
CYCLE TEST END