ACCOUNTING
GRADE 12
AUTUMN CLASSES 2025
TOPIC: COMPANIES FINANCIAL STATEMENTS
PRE-TEST
Total Marks: 50 Marks
Duration: 40 Minutes
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Instructions and Information:
1. This question paper consists of 1 question.
2. Answer ALL questions.
3. Clearly show ALL calculations, diagrams, graphs, etc. that you have used in
determining your answers.
4. Answers only will NOT necessarily be awarded full marks.
5. You may use an approved scientific calculator (non-programmable and non-
graphical), unless stated otherwise.
6. If necessary, round off answers correct to TWO decimal places, unless stated
otherwise.
7. Write neatly and legibly.
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QUESTION 1: COMPANY FINANCIAL STATEMENTS (50 Marks; 40 Minutes)
The information relates to MAREMATLOU LTD for the financial year ended 28 February
2024.
REQUIRED: Complete the following for the year ended 29 February 2024:
1.1 Statement of Comprehensive Income. (33)
1.2 Equity and Liabilities section of the Statement of Financial Position. (16)
Note: Some information and figures are provided in the ANSWER BOOK.
INFORMATION:
A. EXTRACT FROM THE PRE-ADJUSTMENT TRIAL BALANCES ON:
29 FEB. 2024 28 FEB. 2023
Balance sheet accounts
(R) (R)
Ordinary share capital ? 1 021 000
Retained Income 785 000 555 000
Loan: Triumph Bank 2 356 000 2 821 000
Land and buildings at cost 1 900 000 1 100 000
Vehicles at cost ? 937 500
Equipment at cost 300 000 ?
Accumulated depreciation on vehicles ? 537 500
Accumulated depreciation on equipment ? 81 000
Fixed deposit: Matatiele Bank 160 000 100 000
Creditors control 70 000
Debtors control 80 000
Provision for bad debt ? 6 136
SARS: Income tax (provisional tax payments) 480 000
Bank overdraft (missing figure) ?
Nominal accounts
Sales ?
Cost of sales 6 000 000
Rent income 116 000
Bad debts 81 000
Directors fees 950 000
Audit fees 61 000
Salaries and wages 1 120 000
Insurance 29 000
Stationery 35 000
Sundry expenses (missing figure) ?
Interest on loan 64 000
Interest on fixed deposit 11 150
Dividends (interim) 250 000
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B. • The company always maintains a mark-up of 70% on cost.
• A credit invoice for R36 720 (after deducting a 10% trade discount) issued on
29 February 2024 to L Nguni, our debtor, was not recorded.
C. Debtor P Shane was declared insolvent. His estate paid R2 000, which was 20% of his
amount owed. This was received and recorded. The remaining amount must be written
off.
D. The provision for bad debts must be adjusted by 5% of trade debtors.
E. Rent income for March and April 2024 has already been received. The monthly rent
was increased by 10% on 1 December 2023.
F. Stationery to the value of R28 000 was used during the financial period.
G. The fixed deposit at Matatiele Bank was increased by R60 000 on 1 June 2023 at a
new interest rate of 9% p.a. The interest on old fixed deposit was calculated at 8%
p.a. Interest is not capitalized. Make provision for the outstanding interest on fixed
deposit.
H. Loan: Triumph Bank
• All transactions with respect to the loan were correctly recorded.
• Interest of R64 000 on the loan is capitalized.
• A fixed monthly instalment (including interest) was paid in full.
• The capital portion of the repayment will decrease by 20% during the next
financial year.
I. Dividends:
• Total dividends for the financial year (interim and final) amounted to R560 000.
J. After considering all adjustments the following were calculated:
• Additional of R60 000 is still owed to SARS in respect of income tax for the year.
• Current assets amounted to R1 890 000
• Total assets amounted to R 5 100 000
• Current ratio was 2.1: 1
50
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Learners Surname and Initials:…………………………………………
School ……………………………………………………………………
1.2.1 Statement of Comprehensive Income for the year ended
29 February 2024:
Sales
Cost of sales
Gross profit
Other income
Profit on sale of an asset 13 750
Gross operating income
Operating expenses
Audit fees 61 000
Salaries and wages 1 120 000
Insurance 29 000
Directors’ fees 950 000
Depreciation 130 599
Operating profit
Interest income
Operating profit before interest expense
Interest expense
Net profit before tax
Income tax
Net profit after tax 34
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1.2.2 EQUITY AND LIABILITIES
Ordinary shareholders’ equity
Retained income 785 000
Non-current liabilities
Current liabilities
Total equity and liabilities 16
TOTAL MARKS
50
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