GAUTENG DEPARTMENT OF EDUCATION SENIOR SECONDARY INTERVENTION PROGRAMME
ACCOUNTING
GRADE 11
SESSION 19
(LEARNER NOTES)
SOLE TRADER BALANCE SHEET
Learner Note: Ensure that you know the formats of the notes as well as the balance sheet
SECTION A: TYPICAL EXAM QUESTIONS
QUESTION 1
60 Marks
36 Minutes
You are provided with the Pre – adjustment trial balance of Mono Bakery at their year-end,
together with a list of adjustments. The business uses the periodic inventory system .
HINTS
 This business uses periodic inventory
 Remember the calculation for cost of sales
REQUIRED:

NOTES TO THE FINANCIAL STATEMENTS
Interest income
Interest expense
Fixed assets
Inventories
Trade and other receivables
Cash and equivalents
Owners Equity
Trade and other payables
INFORMATION
MONO BAKERY
PRE-ADJUSTMENT TRIAL BALANCE ON 30 JUNE 2010
Balance Sheet Accounts Section
Capital
Drawings
Mortgage Loan: Union Bank (18% p.a.)
Equipment
Accumulated Depreciation on Equipment
Land and Buildings
Fixed Deposit: Manuel Bank
Savings account: Hilton Bank
Debtors Control
Provision for bad debts
Bank
Cash float
Creditors Control
SARS – PAYE
Fol
Debit
Credit
76 840
19 200
80 000
71 400
15 400
200 000
43 000
4 000
22 670
2 160
12 220
200
39 300
6 320
Page 1 of 7
GAUTENG DEPARTMENT OF EDUCATION SENIOR SECONDARY INTERVENTION PROGRAMME
ACCOUNTING
GRADE 11
SESSION 19
Nominal Account Section
Purchases
Carriage on Purchases
Customs Duty
Opening stock
Sales
Debtors Allowances
Rent income
Interest on Investments
Salaries and Wages
Packing materials
Discount Allowed
Discount Received
Bank Charges
Interest on Loan
Sundry expenses (including insurance)
(LEARNER NOTES)
96 000
1 890
5 210
25 300
362 000
4 500
7 500
4 480
50 000
6430
510
835
1 445
10 000
20 860
594 835
594 835
Adjustments
1. The SARS – PAYE balance represents PAYE deductions from salaries and wages for
June 2010 which have not yet been paid over to the South African Revenue Services
(SARS). This amount must be treated as an item under Trade and other payables.
2. Provide for any interest outstanding on the mortgage loan.
3. The Union Bank owes R500 interest on fixed deposit.
4. An annual insurance premium of R1 360 was paid on 1 January 2010
5. An unused storeroom has been rented out. Rent has been received up to 30 April 2010.
Provide for outstanding rent.
6. An amount of R450 is owed to Nelspruit Transport Services for delivery of flour to the
shop.
7. The accountant has omitted to record an amount of R1440 in respect of customs duty on
imported confectionery. The amount has not yet been paid.
8. Equipment is to be depreciated by 10% p.a. on the diminishing balance method.
9. The provision for bad debts is to be decreased by R290.
10. The stock count at the year-end reflects the following :
Stock of flour, R16 800
Stock of packing material, R1 000
11. Transfer the debit balance from Cabala Suppliers account in the Creditors Ledger to his
account in the Debtors ledger, R1 130.
12. Discount allowed, R190 was in error debited to discount received. Correct the error
SECTION B: SOLUTIONS AND HINTS
HINT: MAKE SURE YOU KNOW YOUR FORMATS
Page 2 of 7
GAUTENG DEPARTMENT OF EDUCATION SENIOR SECONDARY INTERVENTION PROGRAMME
ACCOUNTING
GRADE 11
SESSION 19
(LEARNER NOTES)
Trading as: MONO BAKERY
Notes to the financial statements for the year / period ended
1.
Interest income
From investments ( e.g. fixed
deposit) (4 480 + 500)
From overdue debtors
From current account
4 980
4 980
2.
Interest expense/Finance cost
14 400
Interest on mortgage loans
(10 000 + 4 400)
Interest on overdraft
14 400
3.
Tangible assets ( Fixed assets )
1. Land
and
Buildings
200 000
Cost
Accumulated depreciation
Carrying value (Last date of previous
year)
200 000
2. Equipm
ent
3. Total
71 400
271 400
(15 400)
15 400
56 000
256 000
 (5 600)
(5 600)
50 400
250 400
9. Movements
Additions at cost
Disposals at carrying value
Depreciation for the year
#
Cost
Accumulated depreciation
200 000
71 400
(21 000)
271 400
21 000
#
Carrying value (Last date of current year)
200 000
50 400
250 400
4
Inventories
Trading inventory
Consumable stores on hand
16 800
1 000
17 800
Page 3 of 7
GAUTENG DEPARTMENT OF EDUCATION SENIOR SECONDARY INTERVENTION PROGRAMME
ACCOUNTING
5.
GRADE 11
SESSION 19
(LEARNER NOTES)
Trade and other receivables
Trade debtors (22 670 + 1 130)
Provision for bad debts (2 160 – 290)
23 800
(1 870)
Net trade debtors
Deposit on electricity, etc.
Accrued income (500 + 1 500)
Prepaid expenses (680)
 21 930
 2 000
 680
 24 610
6
Cash and cash equivalents
Fixed deposits ( maturing <12months )
Savings accounts
Bank
Cash float
Petty cash
7
Owner’s equity
Balance ( last day of previous year )
Net profit ( loss ) for the year
Additional capital contributed
Drawings
Balance ( last day of current year )
8
4. Trade and other Payables
Trade creditors (39 300 + 450+ 1 130)
Accrued expenses (4 400 + 1 440
Income received in advance /Deferred
income
Creditor for wages/salaries
Pension fund
Medical aid fund
Short term loan
SARS –PAYE
4 000
12 220
200
16 420
76 840
161 550
(19 200)
219 190
40 880
5 840
6 320
53 040
Page 4 of 7
GAUTENG DEPARTMENT OF EDUCATION SENIOR SECONDARY INTERVENTION PROGRAMME
ACCOUNTING
GRADE 11
SESSION 19
(LEARNER NOTES)
Learner Note: You have to see the importance of showing all calculations to earn part
marks.
SECTION D :HOMEWORK
QUESTION 1
60 Marks
36 Minutes
REQUIRED:
Now that you have completed the notes to the balance sheet , complete the face of the
balance sheet
INFORMATION
MONO BAKERY
PRE-ADJUSTMENT TRIAL BALANCE ON 30 JUNE 2010
Balance Sheet Accounts Section
Capital
Drawings
Mortgage Loan: Union Bank (18% p.a.)
Equipment
Accumulated Depreciation on Equipment
Land and Buildings
Fixed Deposit: Manuel Bank
Savings account: Hilton Bank
Debtors Control
Provision for bad debts
Bank
Cash float
Creditors Control
SARS – PAYE
Nominal Account Section
Purchases
Carriage on Purchases
Customs Duty
Opening stock
Sales
Debtors Allowances
Rent income
Interest on Investments
Salaries and Wages
Packing materials
Discount Allowed
Discount Received
Bank Charges
Interest on Loan
Sundry expenses (including insurance)
Fol
Debit
Credit
76 840
19 200
80 000
71 400
15 400
200 000
43 000
4 000
22 670
2 160
12 220
200
39 300
6 320
96 000
1 890
5 210
25 300
362 000
4 500
7 500
4 480
50 000
6430
510
835
1 445
10 000
20 860
594 835
594 835
Page 5 of 7
GAUTENG DEPARTMENT OF EDUCATION SENIOR SECONDARY INTERVENTION PROGRAMME
ACCOUNTING
GRADE 11
SESSION 19
(LEARNER NOTES)
Adjustments
13. The SARS – PAYE balance represents PAYE deductions from salaries and wages for
June 2010 which have not yet been paid over to the South African Revenue Services
(SARS). This amount must be treated as an item under Trade and other payables.
14. Provide for any interest outstanding on the mortgage loan.
15. The Union Bank owes R500 interest on fixed deposit.
16. An annual insurance premium of R1 360 was paid on 1 January 2010
17. An unused storeroom has been rented out. Rent has been received up to 30 April 2010.
Provide for outstanding rent.
18. An amount of R450 is owed to Nelspruit Transport Services for delivery of flour to the
shop.
19. The accountant has omitted to record an amount of R1440 in respect of customs duty on
imported confectionery. The amount has not yet been paid.
20. Equipment is to be depreciated by 10% p.a. on the diminishing balance method.
21. The provision for bad debts is to be decreased by R290.
22. The stock count at the year-end reflects the following :
Stock of flour, R16 800
Stock of packing material, R1 000
23. Transfer the debit balance from Cabala Suppliers account in the Creditors Ledger to his
account in the Debtors ledger, R1 130.
24. Discount allowed, R190 was in error debited to discount received. Correct the error.
Learner Note: As you attempt the homework, you need to ensure that you are able to
answer the questions in the allocated time frames. If you get stuck, you should refer to either
the additional notes or your class teacher.
SECTION E: SOLUTIONS TO SESSION 18 HOMEWORK
Tangible assets / Fixed assets
Cost
Accumulated depreciation
Carrying value at beginning of year
Movements
Additions at cost
Land &
Buildings
81 000
81 000
-
Disposals at carrying value
Depreciation for the year
Carrying value at end of year
81 000 
Cost
Accumulated depreciation
81 000
0
Equipme
nt
100 000
(35 000)
65 000 
4 000 

(2 040) 
(13 080) 
53 880 
94 000 
(40 120) 
(10)
Page 6 of 7
GAUTENG DEPARTMENT OF EDUCATION SENIOR SECONDARY INTERVENTION PROGRAMME
ACCOUNTING
GRADE 11
SESSION 19
(LEARNER NOTES)
1.1..2 Trade and other receivables
Trade and other receivables
Net trade debtors:
Trade debtors [73 500 – 600]
Provision for bad debts [3 300 – 300]
Accrued income
Expenses prepaid
69 900
72 900
  (3
000)
345
1 350
71 595
(10)
1.1.3 Trade and other payables
Creditors control
Income received in advance
Current portion of loan
SARS (PAYE)  [460 + 4 360]
Pension Fund [620 + 1 720 + 1 720]
Creditors for salaries[6 100 + 9 420]
45 000
250
6 000
4 820
4 060
15 520
75 650
(15)
The SSIP is supported by
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