4 PROTEA HEIGHTS ACADEMY

ACCOUNTING
MARCH CONTROL TEST
TERM 1
GRADE 11
2023

EXAMINER: BA MODERATOR: TC
1,5 HOURS TOTAL: 100 MARKS

PLEASE READ THE FOLLOWING INSTRUCTIONS CAREFULLY

1. This question paper consists of 6 pages and a 6-page answer book.
2. Answer ALL the questions.
3. A special ANSWER BOOK is provided in which to answer ALL the questions.
4. Show ALL workings to earn 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 question
paper. Try NOT to deviate from it.

QUESTION 1: 41 marks; 37 minutes

Topic of the question: This question integrates:

Financial statements Reconciliation

QUESTION 2: 59 marks; 53 minutes

Topic of the question: This question integrates:

Financial statements Fixed Asset Note

DO NOT TURN THIS PAGE OVER UNTIL THE INVIGILATOR TELLS YOU TO.

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QUESTION 1: BANK RECONCILIATION AND CREDITORS RECONCILIATION
(41 marks; 37 minutes)
1.1 BANK RECONCILIATION [24 Marks]
You are provided with information from the accounting records of Tate Traders.
REQUIRED:
1.1.1 List TWO reasons for preparing the Bank Reconciliation Statement as
an internal control process. (2)
1.1.2 Calculate the correct totals for the:
• Cash Receipts Journal
• Cash Payments Journal (7)
1.1.3 Calculate the correct balance of the bank account on 30 April 2023. (5)
1.1.4 Prepare the Bank Reconciliation Statement on 30 April 2023. (7)
1.1.5 In August 2022 the internal auditor discovered that the outstanding
deposit of R20 000 on the Bank Reconciliation Statement on 30 April 2023
appeared as R17 000 on the Bank Statement. The amount on the Bank
Statement is correct. List ONE concern that you have as an internal auditor.
Provide ONE suitable control measure to prevent this from happening in
future. Explain fully. (3)

A. INFORMATION:
Bank Reconciliation Statement of Tate Traders on 31 March 2023.
R
Balance as per Bank statement 102 660
Outstanding deposit (19 March 2023) 20 000
Outstanding deposit (30 March 2023) 18 200
Outstanding EFTs:
No 987 (dated 16 March 2023) 16 420
No 999 (dated 31 March 2023) 7 400
Balance as per Bank account ?

B. Provisional totals / balances on 30 April 2023

Bank column in Cash Receipt Journal R 87 540
Bank column in Cash Payments Journal R 78 420

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C The following items appeared on the Bank statement for April 2023 but not in
the Cash Journals:
• The bank statement is a balancing figure.
• A deposit of R18 200.
• EFT 999 of R7 400.
• EFT 987 of R16 420.
• The outstanding deposit of R20 000 on the Bank Reconciliation Statement
was in respect of sales. It was reflected as R17 000 in the April Bank
statement. After an investigation, it was decided to write-off the missing
amount.
• Service fees, R880; Cash handling fees, R320 & EFT Fees, R450.
• Interest on Credit balance, R1 900.
• Debit order to City of Cape Town, R11 600 for the monthly water account.
• A direct deposit from Stella Jones in settlement of her account of
R8 000. A 15% discount was applied when she made the payment.
• An EFT for R760 was reflected on the businesses Bank Statement. This
payment does not relate to the business and must be corrected by the
bank.
D The following items appeared in the Cash Receipts Journal and Cash
Payments Journal only, but not on the Bank statement:
• A deposit of R35 500, dated 29 March 2023
• EFT 1176, R3 340 to a creditor in settlement of an account of R3 800.
• EFT 1211, R9 100 for repairs to be completed on the property.

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1.2 CREDITORS RECONCILIATION [17 Marks]
Berner Traders buys goods on credit from Labra Suppliers. The information relates
to March 2023.
REQUIRED:
1.2.1 Use the table in the ANSWER BOOK to indicate how the balances will
change when preparing the creditors reconciliation. Indicate the figure as
well as a + for increase and a – for decrease. (11)
1.2.2 Refer to Information (vi): An investigation revealed that only R40 500 of
these goods were entered in the stock records. The remaining goods were
ordered by N. Maltese, the credit manager.

• Provide ONE possible action that can be taken against N. Maltese. (2)
• Explain TWO internal control measures that the business can use
to prevent such incidents in future. (4)
INFORMATION:
A. Balances:
Account of Labra Suppliers in the Creditors Ledger of R 206 620
Berner Traders on 31 March 2023
Statement from Labra Suppliers on 25 March 2023 R 179 750

B. Errors and omissions discovered during an investigation:

(i) A payment for R6 500 issued to Labra Suppliers was recorded correctly by
Berner Traders. The statement reflects it as R5 600.
(ii) Berner Traders had correctly recorded a discount of R1 120 for an early
payment. This did not appear on the statement from Labra Suppliers.
(iii) The statement reflected interest of R840 on an overdue balance. Labra
Suppliers acknowledged that an error had been made.
(iv) A debit note for R2 790 issued to Lables Ltd was incorrectly recorded in the
account of Labra Suppliers by Berner Traders.
(v) A invoice for R3 990 received from Labra Suppliers for goods returned was
incorrectly recorded as an credit note by Berner Traders.
(vi) An invoice for R47 500 was reflected on the statement from Labra Suppliers
but was incorrectly recorded by Berner Traders as R74 500.
(vii) A invoice of R13 500 by Berner Traders on 27 March 2023 was recorded in
the Creditors Ledger account of Labra Suppliers.

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QUESTION 2: CONCEPTS, FIXED ASSETS, INTERNAL CONTROL AND GAAP
(59 marks; 53 minutes)
2.1 CONCEPTS
Indicate whether the following statements are TRUE or FALSE. Write only 'true'
or 'false' next to the question number 2.1.1 – 2.1.5 (5)
2.1.1 Accumulated depreciation is regarded as a negative asset.
2.1.2 One asset register should be prepared for all the tangible assets owned
by the business.
2.1.3 The value of equipment does not depreciate.
2.1.4 Depreciation is an imputed expense.
2.1.5 The assets are recorded at their carrying value in the records of the
business.
2.2 The following information was extracted from the records of Squid Traders for
the financial year ended 28 February 2023. The business is owned by
Malell Kinnear.
REQUIRED:
2.2.1 Complete the Equipment General Ledger Account (4)
2.2.2 Calculate the depreciation for the 28 February 2023 financial year for:
• Vehicles (9)
• Equipment (6)
2.2.3 Complete the Asset Disposal Account (10)
2.2.4 The fixed/tangible asset note on 28 February 2023. (21)
2.3 Answer the following questions:
2.3.1 What is the purpose of keeping an asset register for each asset?
Provide ONE point. (2)
2.3.2 The present market value of the land and buildings is R2,5 million,
this property was bought 4 years ago for R1 million.
• Which value will be recorded in the books of Squid Traders? (1)
• Identify the GAAP principle applicable. (1)

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INFORMATION:
A EXTRACT FROM THE POST-CLOSING TRIAL BALANCE ON
28 FEBRUARY 2023:
Land and Buildings R 13 000 000
Vehicle (01/03/2022) 840 000
Accumulated depreciation on vehicles 505 000
Equipment 455 000
Accumulated depreciation on equipment 411 000

B Equipment
• Equipment was bought on credit for R15 000 on 01 January 2023. This
was recorded correctly.
• Equipment is depreciated at 15% p.a. on cost price.
• Depreciation for the current year has not been calculated.
C Vehicles
• A vehicle was sold on 1 September 2022 for cash R140 000 and the
transaction was not recorded. The vehicle was originally bought for,
R260 000. The accumulated depreciation on 1 March 2022 was
R133 200.
• A new vehicle was bought for R309 000 on the 1 December 2022 to
replace the sold vehicle. The accountant omitted to record the
purchase.
• Vehicles are depreciated at 20% p.a. on carrying value.
• Depreciation for the current year has not been calculated.
D Land and Buildings
• During the year an invoice was received from Build A Way
Construction for the following:
• A new office building R500 000
• Repairs to the leaking roof R100 000

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