CCLL GRADE 10 ACCOUNTING | JUNE 2019
Accounting
GRADE 10
INFORMATION BOOK
JUNE 2019
CRAWFORD COLLEGE LA LUCIA
Time: 2.5 hours
Marks: 200
Examiners and Moderators:
Ms T Williamson and Mrs A Duttoo
NAME
PLEASE READ THE INSTRUCTIONS CAREFULLY
1. This information book consists of 9 pages. There is an answer book consisting of
13 pages. Please check that your information book and answer book are
complete.
2. All questions must be answered in the answer book.
3. Read the questions carefully before answering.
4. You may not use green or red ink. You may use a soft dark pencil.
5. It is in your own interest to write legibly and to present your work neatly.
6. Round all calculations off to the nearest Rand, before doing any additional
calculations.
7. The allocation of marks and appropriate time to be taken for each question is as
follows:
Topic
Time
Total
marks
1
Financial Statements
42 minutes
70
2
General Journal & Control Accounts
35 minutes
58
3
Analysis of transactions
13 minutes
22
4
Bank Reconciliation
36 minutes
30
5
Control Accounts & Ethics
24 minutes
20
150 minutes
200
Page 1 of 9
CCLL GRADE 10 ACCOUNTING | JUNE 2019
SECTION A (150 marks: 90 minutes)
QUESTION 1
FINANCIAL STATEMENTS
(70 marks: 42 minutes)
“SURFSUP” is a business specialising in the sale of surfboards. The financial year
end of the business is 28 February each year.
You are provided with the partially completed Financial Statements of SURFSUP on
28 February 2019.
NOTE:
1. Certain details have been left out of the Statement of Comprehensive Income,
which you are required to fill in. These details have been indicated with an *
2. All pre-adjustment figures extracted from the pre-adjustment trial balance have
already been captured into brackets.
The following adjustments and additional information still need to be taken into
account:
1.
The pre-adjustment Trial balance did not balance. On investigation it was
discovered that the bookkeeper left out the Fixed Deposit of R50 000.
2.
The bank statement was received after the pre-adjustment trial balance had
been drawn up and revealed the following which had not been recorded:
 Bank charges R180.
 A dishonoured cheque for R970. This cheque was originally received
from K Slater in part payment of his account.
 Debit order in favour of the municipality for water & electricity, R3 500.
This was for the business, R2 500 and the balance was for the owner’s
personal household water & electricity.
 Direct deposit from FNB R26 800. This was in respect of half the fixed
deposit which had matured plus interest. Half of the remainder of the
fixed deposit will be maturing in July 2019.
 Direct deposit of R1 200 from a debtor J Wave, in settlement of her
debt of R1 350.
 EFT to FNB on 28 February 2019 for payment of R5 000 on the loan of
R50 000 and interest for one month at 15% pa. The bookkeeper
inadvertently left this out of the CPJ. The loan will be repaid at the
same rate of R5 000 per month during the next financial year.
3.
S Swell, a debtor complained to the business that she was not given her
usual 5% Trade Discount on an invoice totalling R500. A credit note was
issued but the bookkeeper did not make the necessary journal entry.
4.
Equipment with a cost price of R134 000 was purchased from Leash Traders
in February 2019. This has been recorded.
Page 2 of 9
CCLL GRADE 10 ACCOUNTING | JUNE 2019
5.
The bookkeeper forgot to record a cheque for R635 in the relevant journal.
This cheque was issued to a creditor, E Sunny to settle a debt of R700.
6.
Invoice from Grants Transporters for R280, was received after the preadjustment trial balance had been drawn up. This invoice was for the delivery
of wetsuits to our to our premises.
7.
The owner provided additional capital of R100 000 during the financial year.
This has been recorded.
8.
Vehicles were serviced at a cost of R12 100 during January 2019. This
amount was incorrectly debited to Vehicles.
9.
Stock to the value of R10 000 was destroyed in the flood. This stock was not
insured.
10. The owner forgot to inform the bookkeeper about the following:
 He had taken a surfboard for his son to give him as a birthday present.
The board retailed at R6 000 in the shop. All boards are marked up at
50% on cost price.
 He donated 10 units of wax for prizes in a surfing competition. The
wax costs the business R 20 per unit to purchase.
Page 3 of 9
CCLL GRADE 10 ACCOUNTING | JUNE 2019
QUESTION 2
GENERAL JOURNAL & CONTROL
ACCOUNTS
(58 marks: 35 minutes)
The following information was extracted from the financial records of Hallan Traders.
Th business uses a mark-up of 120% on cost.
THE FOLLOWING TRANSACTIONS FOR MAY 2019 STILL NEED TO BE
ENTERED INTO THE GENERAL JOURNAL.
3
Management have been informed that a debtor S Moodley has been
declared insolvent. R270 has been received, banked and entered into the
CRJ from the collection of 30c in the rand. Management have authorised the
remainder of the account to be written off.
7
The purchase of trading stock of R3 000 was inadvertently entered into the
consumable stores account.
12
A cash customer returned goods with a marked price of R1 320 and the entry
for the cash refund has been made. The entry for the return of stock at cost
price has not been made into the GJ yet.
21
The bookkeeper in error posted the drawings, made by the owner, of Trading
Stock that cost R700, as drawings of stationery. Correct the error.
28
Hallan Traders has been charged 3% pa interest on our overdue account of
R22 000 with Super Stores for three months.
TOTALS FROM JOURNALS OF HALLAN TRADERS FOR MAY 2019
CREDITORS JOURNAL – CJ 5
CREDITORS
CONTROL
?
TRADING
STOCK
16 400
CONSUMABLE STATIONERY
STORES
700
1 900
SUNDRY
ACCOUNTS
9 300
CREDITORS ALLOWANCES JOURNAL – CAJ 5
CREDITORS
CONTROL
2 830
TRADING
STOCK
?
CONSUMABLE STATIONERY
STORES
180
30
SUNDRY
ACCOUNTS
0
DEBTORS JOURNAL – DJ 5
SALES
27 500
COST OF
SALES
12 500
Page 4 of 9
CCLL GRADE 10 ACCOUNTING | JUNE 2019
DEBTORS ALLOWANCES JOURNAL – DJ 5
DEBTORS
COST OF
ALLOWANCES
SALES
3 500
?
NB: Allowances granted amounted to R1 300
CASH RECEIPTS JOURNAL - CRJ5
BANK
SALES
COST OF
FEE INCOME
SALES
248 000
?
?
13 000
Included in the sundry accounts of R23 500:
DEBTORS
CONTROL
13 800
DISCOUNT
ALLOWED
300
SUNDRY
ACCOUNTS
23 500
6th Received R450 back from a supplier as a refund for an overpayment on account.
CASH PAYMENTS JOURNAL - CPJ 5
BANK
79 800
TRADING SALARIES DEBTORS CREDITORS DISCOUNT
STOCK
& WAGES CONTROL CONTROL RECEIVED
25 800
15 900
2 600
?
1 300
SUNDRY
ACCOUNTS
14 400
PETTY CASH JOURNAL – PCJ 5
PETTY CASH
3 900
TRADING
STOCK
800
WAGES
1 500
CREDITORS
CONTROL
?
DEBTORS
CONTROL
200
SUNDRY
ACCOUNTS
350
Page 5 of 9
CCLL GRADE 10 ACCOUNTING | JUNE 2019
QUESTION 3
ANALYSIS OF TRANSACTIONS
(22 marks: 13 minutes)
The following transactions relate to GRADETEN TRADERS and took place during
April 2019. Assume a favourable balance in the bank account.
3.1
Paid R400 cash on behalf of a debtor for transportation of goods.
3.2
According to the source document received from the bank, cheque 65 for
R2 975 received from a debtor H. Mikz was returned marked R/D. This was
after discount of 15% had been allowed. The cheque and the discount need
to be cancelled. (SHOW TWO TRANSACTIONS)
3.3
Refunded a debtor R300 from petty cash for overpayment on their account.
3.4
Cashed a cheque to restore the Petty Cash Imprest of R3 500 for April.
 Total payments from Petty Cash for April totalled R3 600
 Total supplements to petty cash during April totalled R2 000
Page 6 of 9
CCLL GRADE 10 ACCOUNTING | JUNE 2019
SECTION B (50 marks: 60 minutes)
QUESTION 4
BANK RECONCILIATION
(30 marks: 36 minutes)
THE LINEN FACTORY SHOP sells a wide range of linen, curtains and towels to the
public.
A. Details of the Bank Reconciliation statement on 31 July 2018:
Unfavourable balance as per
Outstanding cheques:
341 (3
364
366 (8
Outstanding deposit
Debit error made by bank
Unfavourable balance as per
bank statement
R4537
January 2018)
2 500
4 860
8 620
7 070
5 577
19 024
August 2018)
Bank account
B. Provisional Totals of Cash journals for August 2018:
Cash Receipts Journal: R41 360
Cash Payments Journal: R49 920
C. The bank Statement for August was compared with the Cash
Journals for August and the following differences were found:
1. Cheque no’s 364 and 366 appeared on the August Bank Statement.
2. Debtor, A. Allen’s cheque for R1 200, which had been recorded and deposited
on 10 August 2018, was returned to THE LINEN FACTORY SHOP marked R/D.
No entry had been made for this.
3. A deposit of R13 040 on 31 August 2018 does not appear on the Bank
Statement for August.
4. A deposit for R2 190 was incorrectly entered in the Cash Receipts Journal as
R2 910. It had been received for sales. The amount is correct on the Bank
Statement for August.
5. Debtor C. Eales made a direct EFT deposit of R2 000 into the bank account
of THE LINEN FACTORY SHOP in settlement of his debt of R2 200.
6. A deposit of R7 070 appeared on the July bank statement only.
Page 7 of 9
CCLL GRADE 10 ACCOUNTING | JUNE 2019
7. The monthly insurance premium of R2 880 was paid by the bank by means of
a debit order. R880 of the amount was for the insurance of the owner’s
home.
8. By the 31 August 2018, the following cheques had not been presented for
payment to the bank by the payee:



No 439 issued as a donation of R12 800 (dated 10 March 2018)
No 437 for R3 160 (dated 10 August 2018)
No 449 for R2 840 (post-dated for 15 September 2018)
9. The following debit entries appeared on the August Bank Statement.
Service fees, R96, Cash handling fee, R64 and interest R120.
10. Cheque No. 540 for cash float appeared on the August Bank Statement as
R210. The bookkeeper had made a mistake in recording this cheque in the
Cash Payments Journal as R120. Correct the error.
11. Cheque 341 was issued in favour of a donation to an Old Age Home. The
cheque was sent with the driver of the delivery van. The cheque never
reached the organisation and is under investigation.
12. The Bank statement revealed an unfavourable balance of R22 494 on 31
August 2018.
Page 8 of 9
CCLL GRADE 10 ACCOUNTING | JUNE 2019
QUESTION 5
CONTROL ACCOUNTS & ETHICS
(20 marks: 25 minutes)
Anne Park sells wine that she purchases from a number of wine farms. She sells to
her customers for cash as well as on credit. Her mark-up is the same for both credit
and cash sales. She allows her debtors a discount if they settle their account in the
month of purchase.
The bookkeeper was inexperienced and produced a partially completed Debtors
Control account for the month of March 2019. He has asked for your assistance in
this regard. The information provided in the Debtors Control Account, below, is
correct.
2019 Balance
Mar
1
31
Sales
Bank (r/d
cheques)
Sundry
Accounts
2019 Balance
April
1
DEBTORS CONTROL B9
b/d
92 500 2019 Bank and
Mar Discount Allowed
31
DJ
695 500
Debtors
Allowance
CPJ
8 500
Sundry Accounts
GJ
A
b/d
C
Balance
CRJ
685 000
DAJ
17 500
GJ
B
c/d
C
The following transactions have not been entered as yet:



Goods sold on credit to I. Naidoo was incorrectly recorded in M. Naidoo’s
account, R320. Correct this error
A debtor, B. Solomon had a credit balance in the Creditor’s ledger. It was
decided to transfer his debit balance of R460 in the debtor’s ledger to his
account in the Creditor’s ledger.
Interest must still be charged on C. Collin’s overdue account, R55.
Page 9 of 9