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Answer Book

This document contains an exam paper for accounting with four questions. Question 1 involves analyzing transactions, completing partnership and general ledgers. Question 2 involves completing a statement of comprehensive income and notes. Question 3 involves completing a statement of financial position and notes. Question 4 involves explaining changes in a business's markup policy and loan, and calculating ratios to assess the loan decision.

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Muneebah Hajat
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66 views6 pages

Answer Book

This document contains an exam paper for accounting with four questions. Question 1 involves analyzing transactions, completing partnership and general ledgers. Question 2 involves completing a statement of comprehensive income and notes. Question 3 involves completing a statement of financial position and notes. Question 4 involves explaining changes in a business's markup policy and loan, and calculating ratios to assess the loan decision.

Uploaded by

Muneebah Hajat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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JUNE PAPER 1

ANSWER BOOK
QUESTION 1 ANALYSIS AND PARTNERSHIP LEDGER (30 marks; 24 minutes)

1.1 Analyse the transactions under the following headings by filling in a +; - or 0. (6)
NO AMOUNT A OE L
1.1.1 R50 000
1.1.2 R350
1.1.3 R15 000
1.1.4 R20 000
1.1.5 R10 000
R6 000

1.2 GENERAL LEDGER OF RAYMAND AND SONS


FINAL ACCOUNTS SECTION
APPROPRIATION ACCOUNT (16)
800 750

BALANCE SHEET SECTION


CURRENT ACCOUNT: RAY (8)

1.3 Calculate the % return earned by Ray on his average investment in the business.
(8)
QUESTION 2 STATEMENT OF COMPREHENSIVE INCOME AND NOTES TO THE
FINANCIAL STATEMENTS
(50 marks: 40 minutes)

STATEMENT OF COMPREHENSIVE INCOME OF MPGI TRADERS FOR THE YEAR ENDED


28 FEBRUARY 20.9 (37)
Sales 4 499 912 – 50 000
Cost of sales 2 600 000
GROSS PROFIT
Other operating income
Fee Income 880 000

GROSS INCOME
OPERATING EXPENSES
Lease of equipment 78 000
Insurance 112 000
Bank charges 42 000
Discount allowed 550
Salaries and wages 960 000
Employer’s contributions 38 400
Electricity 120 000
Bad debts 5 800
Depreciation 42 000
Printing and stationery 6 400
Consumables stores 24 000
Rent 242 100
Sundry expenses *

OPERATING PROFIT
Interest Income *
Profit before interest expense
Interest expense (132 000)
NET PROFIT 859 840
TRADE AND OTHER RECEIVABLES (13)
NET DEBTORS

Debtors control 156 000


Provision for bad debts 7 000

DO NOT TOTAL
QUESTION 3 STATEMENT OF FINANCIAL POSITION AND NOTES (40 marks; 32
minutes)

3.1STATEMENT OF FINANCIAL POSITION OF BHEKI & SONS AS AT 28 FEBRUARY 20.9


(26)
NON-CURRENT ASSETS
Fixed assets
Financial assets

CURRENT ASSETS 412 500


Inventory
Trade and other receivables
Cash and cash equivalent
TOTAL ASSETS

EQUITY AND LIABILITIES


PARTNERS’ EQUITY
Capital 2 000 000
Current account

NON-CURRENT LIABILITIES
Loan 1 100 000

CURRENT LIABILITIES
Trade and other payables

TOTAL EQUITY AND LIABIILITIES


3.2TRADE AND OTHER PAYABLES (9)
Creditors control ?

3.3 The owner is very pleased with the improvement in the liquidity ratios (5)
from 20.8 to 20.9. You do not agree. Explain why quoting figures to
support your answer. Discuss two possible reasons.
QUESTION 4 RATIO AND ANALYSIS (22 marks: 20 minutes)

4.1 The owner changed the mark-up policy of the business during the
year.
Explain the decision and the effect on the sales of the business (3)

The effect on the final net profit of the business (3)

4.2 The owners increased the loan during the year. Was this a viable
business decision? Calculate and quote TWO financial indicators to
support your answer.

RATIO 1 (4)

(6)

RATIO 2

(6)

Comment:

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