GRADE 10 TERM 3 CONTROLED TEST FOR ACCOUNTING REVISION

1. ACCOUNTING GRADE 10 COMMON CONTROLLED TEST SEPTEMBER 2017
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TERM 3
CONTROLLED TEST
GRADE 10
SUBJECT : ACCOUNTING
CODE : ACCN
TASK : COMMON CONTROLLED TEST
TIME : 1 HOUR
MARKS : 100
This question paper consists of 6 pages

2. ACCOUNTING GRADE 10 COMMON CONTROLLED TEST SEPTEMBER 2017
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INSTRUCTIONS AND INFORMATION
1. This test consists of THREE Questions.
2. All questions are COMPULSORY
3. Read through the questions carefully and make sure that you allocate enough
time for each question.
QUESTION CONTENT TIME MARKS
1 Concepts 3 minutes 5
2 Financial statements 40 minutes 56
3 Notes to Financial Statements 17 minutes 39
TOTAL 60 minutes 100
____________________________________________________________________________________
QUESTION 1 CONCEPTS (5 marks; 3 minutes)
Match the concepts listed in column A with the descriptions in column B. Write only
the letter next to the numbers provided in the answer book. [5]
COLUMN A COLUMN B
1.1 Residual Amount A To determine the net profit that a business made in a
specific period.
1.2 Balance Sheet B Full amount of an asset cannot be written off as long as it
is in the business possession.
1.3 Financial
statements
C Financial information is always reported more
conservatively than optimistically.
1.4 Prudence principle D Show the profitability, solvency, and liquidity of the
business.
1.5 Income statement E The financial records of the business are kept entirely
separate from those of the owner
F To determine the financial position of a business on a
specific period

3. ACCOUNTING GRADE 10 COMMON CONTROLLED TEST SEPTEMBER 2017
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QUESTION 2 FINANCIAL STATEMENTS (56 marks; 40 minutes)
You are provided with information relating to Zozo Traders. The owner wants you
to determine the profit / loss for the financial year ended 28 February 2017.
Use the Pre-adjustment Trial Balance and additional information to prepare the following:
2.1 Income Statement for the year ended 28 February 2017.
Note: Show all your calculations in brackets to earn part marks (56))
ZOZO TRADERS
PRE-ADJUSTMENT TRIAL BALANCE ON 28 FEBRUARY 2017
Balance Sheet accounts section Fol Debit Credit
Capital B1 820 100 00
Drawings B2 32 100 00
Land and Buildings B3 700 000 00
Vehicles B4 175 000 00
Equipment B5 90 000 00
Accumulated depreciation on vehicles B6 67 000 00
Accumulated depreciation on equipment B7 42 000 00
Trading stock B8 106 450 00
Debtors control B9 20 000 00
Bank B10 45 200 00
Cash float B12 1 200 00
Creditors control B13 127 530 00
Fixed deposit: KS Investors (9% p.a.) B14 650 000 00
Loan: SA Bank B15 550 000 00
Nominal accounts section
Sales N1 265 420 00
Cost of sales N2 56 500 00
Debtors allowances N3 1 750 00
Rent income N4 168 000 00
Discount received N5 750 00
Stationery N7 8 000 00
Telephone N8 11 500 00
Water and Electricity N9 8 950 00
Insurance N10 78 000 00
Salaries N11 25 500 00
Rates and Taxes N12 48 000 00
Bad debts N13 1 150 00
Interest on fixed deposit N14 20 000 00
Interest on overdraft N15 1 500
2 060 800 00 2 060 800 00

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Adjustments and additional information:
1. A debtor, S.Mabaso, returned good to the value of R1 200 on 31 December 2016, Cost
of sale of the goods was R850. No entries were recorded in the books.
2. The owner Zozo took stock at cost R1050 for personal use.
3. According to the physical stocktaking the following stock was on hand:
Trading stock, R88 500
Stationery, R1 350
4. The water and electricity account for February 2017 was received but not paid, R2 100.
5. Included in the amount for insurance is an annual insurance of R30 000 paid on the
1 September 2016.
6. The fixed deposit was invested on the 1 September 2016. Provide for the outstanding
amount.
7. Zozo traders received the loan Statement from ABSA Bank. The monthly repayment
was R12 500 per month. The Balance on 1 March 2016 was R620 000. Interest has
been capitalized. Provide for interest for the year.
8. The rent income amount was received up to the 30 April 2017.
9. A debtor Bhablos who owes the business R3 700 was declared insolvent. His estate
paid a final dividend of 25 cent in a rand and was recorded. Write off the balance as
irrecoverable.
10. G. Thape a debtor whose account has already been written off paid R800. This has
been recorded in the Cash receipts journal in the Debtors column. Correct the error.
11. Depreciation is calculated as follows:
 Vehicles are calculated at 15% p.a on cost price.
 Equipment is calculated at 20% p.a on the diminishing balance method.
12. The bank statement was received and showed the following had not yet been
recorded.
 Interest on favourable bank account R720, Bank charges R670

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QUESTION 3 Notes to the financial statements (39marks, minutes 17 )
3.1
Use the information below to prepare the following notes
 Capital (7)
 Trade and other receivable (Debtors) (6)
 Trade and other payable (Creditors) (6)
Extract Post Closing Trial Balance 30 June 2017 in the books of Nicol Traders
Capital 950 000
Debtors control 65 200
Trading stock 92 500
Creditors control 125 000
Accrued income 6 000
Income received in advance 13 000
Prepaid expenses 7 000
Accrued expenses 36 000
Consumable stores on hand 4 000
Additional information:
 The following amounts have already been included in the Capital amount:
Net Profit : 120 000
Drawings : 35 000
The owner contributed R85 000 as additional capital on 1 January 2017.
 The following items were not taken into consideration when preparing the Post
Adjustment Trial Balance on the 30 June 2017.
 Insurance of R250 for the month of July 2017
 Rent income of R1500 for the month of July and August 2017.

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3.2 Calculate the amounts with numbers 1 to 8 (16)
3 FIXED/TANGIBLE ASSETS Land and Equipment Vehicles
buildings
Carrying value at beginning of year 860 000 132 500 (5)
Cost Price 860 000 (2) 175 000
Accumulated depreciation 87 500 (22 000)
Movements
Additions (1) (3) 85 000
Disposals at carrying value
Depreciation (57 000 (6)
Carrying value at end of year 1 000 000 170 500 205 375
Cost Price 1 000 000 315 000 (8)
Accumulated Depreciation (4) (7)
Notes:
 The financial year ends on 28 February 2017.
 The new vehicle was bought on 30 August 2016.
 Write off depreciation on vehicles at 15% per annum on the cost price
method.
3.3.
What measures could be put in place to ensure that vehicles are not being
used for private purposes. Suggest TWO measures. (4)