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NATIONAL
SENIOR CERTIFICATE

GRADE 10

ACCOUNTING
CONTROLLED TEST 2
SEPTEMBER 2024

MARKS: 100
DURATION: 1, 5 HOURS

This question paper consists of 10 pages

a formula sheet and a 5 page answer book
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Accounting test 2 Limpopo DOE September 2024

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INSTRUCTIONS AND INFORMATION

1. Answer ALL the questions

2. A special Answer BOOK is provided in which to answer All the questions

3. A FORMULA SHEET for financial indicators is provided at the back of this

question paper. You may use it if necessary
4. Show ALL workings to earn possible part marks

5. You may use a non- programmable calculator

6. You may use a dark pencil or blue /black ink to answer the questions

7. Where applicable show ALL calculations to one decimal point

8. Write neatly and legibly

9. Use the information in the table below as a guide when answering the
questions Try NOT to deviate from it.

QUESTION TOPIC MARKS MINUTES

1 Concepts and statement of 40 35
comprehensive

2 Statement of financial position and notes 35 30

3 Interpretation of financial information and 25 25

internal control

TOTAL 100 90

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Accounting test 3 Limpopo DOE September 2024

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QUESTION 1 CONCEPTS AND STATEMENT OF COMPREHENSIVE INCOME

(40 Marks 36 Minutes)
1.1 Match the concept in COLUMN A with an example provided in COLUMN B.
Write only the letters (A–D) next to the numbers (1.1.1- 1.1.4 ) in the ANSWER
BOOK, for example 1.1.1 D
COLUMN A COLUMN B
1.1.1 Income Statement A An individual or group of people who invest
money in a business for the purpose of
making profit
1.1.2 Balance Sheet B The ability of the business to pay long term
debts
1.1.3 Motgage loan C Statement showing the financial position of
a business at a particular point in time
1.1.4 Investor D This shows the financial performance of a
Business for a financial year
1.1.5 Solvency E Money borrowed in order to purchase a
property
(1X5) (5)
1.2 SEBENZA TRADERS
The following information was taken from the records of Sebenza Traders on
28 February 2023, the last day of the financial year. The business uses a mark-up
of 40% on cost

REQUIRED

Prepare the Statement of Comprehensive Income (Income Statement) for the year
ended 28 February 2023 (35)

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Accounting test 4 Limpopo DOE September 2024

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INFORMATION:
A An Extract from the Trial Balance for the year ended 28 February 2023
Balance Sheet Accounts Debit Credit
Capital (1 March 2022) 600 000
Drawings 34 000
Vehicles 280 000
Accumulated depreciation on vehicles (1 March 2022) 56 000
Equipment 130 000
Accumulated depreciation on equipment (1 March 2022) 44 600
Fixed Deposit: Al Raji Bank @ 9% p.a. 24 000
Trading stock 44 000
Debtors' control 42 300
Bank (favourable) 4 600
Mortgage Loan: SAAB Bank 103 800
Nominal Accounts
Sales 588 000
Cost of sales 420 000
Debtors' allowances 6 800
Rent income 32 240
Commission income 10 150
Salaries 43 500
Insurance 12 500
Bad debts 4 800
Stationery 3 320
Water and electricity 19 100
Bank charges 4 200
Packing material 7 100
Advertising 2 300
Interest on fixed deposit 1 620

ADJUSTMENTS AND ADDITIONAL INFORMATION

(i) The water and electricity account for February 2023 has not yet been paid,R1 830.
(ii) Stock with a selling price of R2 520 was donated to a local orphanage.No entry was
made.
(iii)
According to a physical stock count on 28 February 2023, the following items were
on hand
• Trading stock R 41 000
• Packing material R 1 950
(iv) Insurance includes an annual premium of R3 960 paid for the period 1 September
2022 to 31 August 2023.
(v) The rent for two month has not yet been received. The monthly rent increased by
10 % from the 1 September 2022.

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Accounting test 5 Limpopo DOE September 2024

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(vi) R. Adam, a debtor, who owed R1 200 to Sebenza Traders was declared insolvent.
His estate was able to settle half of the amount owing. Write off the outstanding
amount
(vii) The loan statement received from SAAB Bank on 28 February 2023 reflected the
following :
Balance on 1 March 2022 R 150 000
Repayments during the year (including interest) R 46 200
Interest on loan (capitalized ) ?
Balance on 28 February 2023 R117 300

(viii) Provide for the outstanding interest on fixed deposit. Interest is not capitalised
(ix) The bank statement for February 2023 reflected the following
• EFT fees R 170
• Credit card levies R 90

• Interest on the current account R220

(x) Depreciation for the current year amounts to R41 275

40

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Accounting test 6 Limpopo DOE September 2024

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QUESTION 2 STATEMENT OF FINANCIAL POSITION AND NOTES

(35 marks 30 minutes
The following information relates to Bobby Traders their financial year ended on
30 April 2023
2.1 Refer to information 2 ,Calculate the missing amounts in the fixed asset note (13)
denoted by (A) to (D) Show all workings
2.2 Prepare the statement of financial position ( Balance sheet) on 30 April 2023 (22)

INFORMATION:
List of balances on 30 April 2023
Capital 800 000
Drawings 80 000
Land and Building 1 200 000
Vehicles 700 000
Equipment 430 000
Accumulated depreciation on vehicles (01/05/2022) 280 000
Accumulated depreciation on equipment (01/05/2022) 193 500
Fixed deposit: Bobby Bank ?
Trading stock 270 200
Debtors’ control 162 000
Creditors’ control 86 000
Bank (Favorable balance) 112 000
Petty cash 2 200
Loan: CAT Bank (9, 5% p.a.) ?
Accrued income 3 200
Prepaid expense 1 200
Income received in advance 5 800
Accrued expense 1 800

ADJUSTMENTS AND ADDITIONAL INFORMATION

1 Loan BTT Bank
Interest on loan is capitalised. The loan statement from BTT Bank reflected the
following

Balance on 1 May 2022 R423 200

Monthly installments including interest R103 200
Balance on 30 April 2023 R350 400

The business plans to pay R40 000 during the next financial year.

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Accounting test 7 Limpopo DOE September 2024

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2. Fixed asset note

Land and Vehicles Equipment
buildings
Carrying value (1 May 2022) (b) 336 500
Cost (a) 700 000 430 000
Accumulated depreciation 280 000 93 500
Movements
Additions 600 000 145 000
Depreciation (c) (64 500)
Carrying value (30 April 2023) 1 200 000 (d) 272 000
Cost 1 200 000 430 000
Accumulated depreciation

Provide for depreciation as follows:

• On vehicles at 20% p.a. on the diminished balance method
• On equipment at 15% p.a. on cost price.

NOTE: A new vehicle, costing R145 000, was purchased on 1 August 2022. This
has not been recorded

35

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Accounting test 8 Limpopo DOE September 2024

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QUESTION 3 ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS

( 25 Marks:20 minutes)
POOBIE suppliers is a business that provide cleaning supplies to various customers in
Limpopo province .The business is owned by Smooky Poobie and their financial year
ended 29 February 2024
REQUIRED
3.1 Calculate the following financial indicators for the year ended 29 February 2024
3.1.1 % Operating expenses on sales (3)
3.1.2 Return on average owners’ equity (4)
3.1.3 Current ratio (3)
3.1.4 Acid test ratio (3)
3.2 Comment on the liquidity of the business ,Quote TWO financial indicators and
provide figures to support your answer. (5)
3.3 Should the owner be satisfied with return on equity? Give a reasons for your answer (3)
3.4 Poobie Suppliers operates in Limpopo province only, the owner is concerned about
the increasing price of fuel and he believes that if it continues to rise he will close
down the business. Provide TWO alternatives that the owner can consider instead (4)
of closing down the business
INFORMATION
A EXTRACT FROM STATEMENT OF COMPREHENSIVE INCOME
Sales 1 334 000
Cost of sales 804 000
Operating expenses 295 000
Net profit 230 000

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Accounting test 9 Limpopo DOE September 2024

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B EXTRACT FROM STATEMENT OF FINANCIAL POSITION

Fixed assets 600 000

Fixed Deposit 180 000
Inventory 120 000
Trade and other receivables 215 000
Cash and cash equivalents 53 000
Current liabilities 150 000
Long term loan 160 000
Owner’s equity (28/02/2023) 538 000
Owner’s equity (29/02/2024) 622 000

C FINANCIAL INDICATORS
2024 2023
% Operating expenses 14,2 % 9%
Current ratio ? 2.8 :1
Acid test ratio ? 1.5 :1
% return on average equity ? 25,.8 %
Interest on loan 9% 9%
Interest on fixed deposit 8% 8%

25

TOTAL :100

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Accounting test 10 Limpopo DOE September 2024

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GRADE 10 ACCOUNTING FINANCIAL INDICATORS FORMULA SHEET

Gross profit X 100 Gross profit X 100 Net profit before tax X 100
Sales 1 Cost of sales 1 Sales 1

Operating expenses X 100 Operating profit X 100

Sales 1 Sales 1

Current assets : Current liabilities (Current assets – Inventories) : Current liabilities

(Trade and other receivables + Cash and cash equivalents) : Current liabilities

___Net profit__ X 100

Total assets : Total liabilities
Owner’s equity 1

Non-current liabilities : Owner’s equity

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