1
2021
ACCOUNTING
GRADE 11
CONTROL TEST THREE
DURATION: 1.5 HOURS
23 SEPTEMBER 2021
INSTRUCTIONS AND INFORMATION
1 You are provided with a question paper and answer sheet
2 This question paper comprises of THREE Compulsory questions.
3 Make use of the time allocation given.
4 Non- programmable calculators may be used.
5 A BLUE/BLACK PEN may be used
6 Show workings to earn part-marks
TIME
QUESTION TOPIC MARKS
ALLOCATED
1 Cash Budget and Projected Income Statement
25 23
2 Cash Budget
62 55
3 Inventory
13 12
TOTAL 100 90 minutes
This question paper consists of 6 pages
Accounting Grade 11 Control Test Question Paper
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QUESTION 1: CASH BUDGET AND PROJECTED INCOME STATEMENT
(25 marks;23 minutes )
1.1 CONCEPTS ON BUDGETS
1.1.1 Explain the difference between the cash budget and a projected income. (2)
1.1.2 Mention two expenses that will not be included under payments in the Cash (2)
Budget.
1.2 CASH BUDGET AND PROJECTED INCOME STATEMENT
The information provided was taken from the records of Majozi Stores their financial
period ended on 30 June 2021.
REQUIRED
Indicate amounts in the appropriate blocks for the Cash Budget and Projected (21)
Income Statement for the month ending 31 July 2021.
Example: An amount of R2 200 for rates and taxes for July 2021, will be transferred
to the account of Johannesburg Municipality at the end of the month.
JULY 2021
Cash Budget Projected Income Statement
No.
Receipt Payment Income Expense
Example R2 200 R2 200
TRANSACTIONS:
1.2.1 The expected cash sales for July 2021 were estimated to be R90 000. The
profit mark-up is 60% on cost.
1.2.2 Rent income for the year amounted to R72 000, rent will increase by 10% on
the 1st of July 2021.
1.2.3 Goods were sold on credit for R60 000 in June, debtors are expected to pay
in July and they will be allowed a discount of R3 000.
1.2.4 On 1 July 2021, R9 000 will be paid for a 6-month advertising contract.
1.2.5 An old laptop will be sold at a loss for to an employee in July for R1 800.The
cost price of the laptop was R8 000, the accumulated depreciation amounted
to R5 500.
1.2.6 An instalment of R8 450 on the loan will be paid on 25 July 2021.R450 of this
amount is the interest on loan.
1.2.7 An insurance premium of R2 500 per month is expected to reduce by 10%, on
1 July 2021.
25
Accounting Grade 11 Control Test Question Paper
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QUESTION 2 : CASH BUDGET (62 marks; 55 minutes )
PHAKISO TRADERS
You are provided with an incomplete Cash Budget of Phakiso Traders for the period
1 July 2021 to 31 August 2021. The business is owned by M Phakiso.
REQUIRED:
2.1 Calculate the credit sales for June 2021 and then complete the Debtors' Collection Schedule (8)
for August 2021.
2.2 Calculate the missing amounts indicated by a question mark in the Cash Budget and
also take into account the amounts from the information provided. (40)
2.3 Refer to Information E and M. The workers are dissatisfied with the increases they
will be receiving in August 2021. They have threatened the management with the
strike action if their concerns are not addressed.
2.3.1 Give TWO reasons why the workers are dissatisfied, use figures or indicators
to support your answer (4)
2.3.2 By making reference to the cash budget, explain why you would agree with the
wage increase offered by Phakiso, provide ONE point. (2)
2.4 Respond to the following questions by referring to INFORMATION A:
2.4.1 Phakiso decided to offer trade discounts to special customers in July 2021.
In your opinion, has this benefitted the business? Provide figures to support
your answer. (2)
2.4.2 Comment on the control of the following expenses, quote figures to support
your answer and provide ONE point of advice in EACH case.
Delivery costs
Advertising costs (6)
INFORMATION
A. On 31 July 2021 you compared the budgeted amounts with the actual amounts and
found the following:
JULY 2021
BUDGETED ACTUAL
Sales R216 000 R168 000
Cost of sales 144 000 120 000
Gross profit 72 000 48 000
Advertising costs 36 000 46 000
Delivery costs 21 600 25 200
Accounting Grade 11 Control Test Question Paper
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B. Sales, cost of sales and debtors' collection
(i) Actual and budgeted sales and cost of sales:
SALES COST OF SALES
R R
BUDGETED ACTUAL BUDGETED ACTUAL
May 210 000 156 000 140 000 104 000
June 246 000 178 200 164 000 118 800
July 216 000 144 000
August 168 000
(ii) 60% of the total sales are for cash.
(iii) Credit sales are collected as follows:
20% collected in the month of sale
70% collected in the first month following the sale
5% collected in the second month following the sale
The balance is written off in the third month following the month of sale
C. Delivery costs
All goods sold are delivered to customers free of charge.
The delivery costs are budgeted at 10% of sales.
D. Stock levels and payments to creditors
The business uses a mark-up of 50% on cost.
The business maintains a fixed-base stock by replacing stock on a monthly basis.
75% of the total purchases are on credit.
Creditors are paid in the month following the month of purchase to take advantage
of a 5% discount.
E Salaries
The workers will receive an increase of 3, 5% in August 2021.
The manager will receive an increase of 10% in August 2021.
The rate of inflation is 6%
F Insurance
The insurance premium is paid at the end of each month.
The monthly premium will increase by 10% on 1 August 2021.
G. Phakiso is expecting to receive R500 000 from the estate of his deceased
uncle during August, at the end of August he will invest 75% into the Fixed
Deposit and the balance will be paid towards the Loan Account
H. Interest on the loan at 11% p.a. is payable monthly. The loan balance on
1 July 2021 was R300 000.
I. The owner of the business will increase the withdrawals in August by R800
cash and will withdraw the trading stock at a cost of R750.
Accounting Grade 11 Control Test Question Paper
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J. Telephone expense is expected to increase by R700.
K. Sundry expenses are expected to remain the same over the budget period.
L. Details relating to the delivery expenses and new vehicle
Phakiso thinks that in order to improve his cash flow, he should rather purchase a
delivery vehicle in July 2021 and discontinue using Jozi Deliveries for this service. The
delivery contract ends on 31 August 2021.
Phakiso would have to pay R50 000 deposit through the business bank account in
July. His father has agreed to provide interest-free finance for the balance of the
cost. Phakiso would have to repay his father R12 500 per month over 48 months,
the first instalment will be paid at end of August.
M. Extract from the Cash Budget for the two months ending 31 August 2021
Receipts JULY AUGUST
Cash sales of merchandise 129 600 ?
Collection from debtors ? ?
Rent income 15 000 16 500
Commission income ? ?
Total receipts ? ?
Payments
Cash purchase of trading stock 36 000 ?
Payment to creditors ? 102 600
Salary: Manager 36 000 39 600
Salary: Six workers 66 000 ?
Telephone ? 7 500
Advertising 36 000 24 000
Insurance ? 5 500
Delivery costs (payable to Jozi Deliveries) 21 600 ?
Sundry expenses 6 000 ?
Drawings 50 000 ?
Loan ? ?
Interest on loan 2 750 2 695
Total payments ? ?
Cash surplus/deficit ? ?
Bank balance at beginning of month (20 400) ?
Bank balance at end of month ? ?
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Accounting Grade 11 Control Test Question Paper
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QUESTION 3 : INVENTORY (13 marks; 12 minutes)
MKHWANAZI TRADERS
The information provided below was extracted from the books of Mkhwanazi Traders. The
owner maintained an average mark-up of 40% on cost over the last few years. Their
financial year ended on 28 February 2021.The business uses the periodic inventory
system.
REQUIRED
3.1 Calculate the cost of sales (8)
3.2 Calculate the gross profit (4)
3.3 Provide ONE reason for the drop in the mark-up percentage. (1)
INFORMATION
A Balances/Totals at the end of February:
2021 2020
Trading stock 313 200 394 200
Purchases 2 127 800
Carriage on purchases 87 700
Sales 3 038 500
B. The trading stock amounted to R313 200 after physical stock count.
C. The following transactions were not entered in the books and must be
taken into account:
Trading stock bought on credit from Mongezi Traders for, R 62 000.
Goods costing R 19 400 were sold for R 20 500.
Trading stock with the cost of R 4 200 and selling price of R 6 720 was
taken by the owner for personal use
D.
Financial Indicators 2021 2020
Mark-up percentage 28% 40%
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TOTAL MARKS : 100
Accounting Grade 11 Control Test Question Paper
