STATEMENT RECEIVED FROM GALAXY WHOLESALERS  GALAXY WHOLESALERS                                                                                                                         Account B123 STATEMENT OF ACCOUNT To: Fredrick Traders       549 Achilles Street       Cape Town Date Details Debit Credit Balance May 1 Balance     57 200 7 Invoice 514 8 200   65 400 10 Debit note 204   480 64 920 14 Cheque   28 800 36 120 20 Invoice 520 5 600   41 720 23 Invoice 529 20 800   62 520 Additional information On comparing the statement and the creditor’s ledger account, the following differences have been discovered: 1 The amount of allowances on 10 May was correct on the statement.  Correct this error. 2 Discount on 14 May was omitted on the statement. 3 Fredrick Traders did not buy any stock on 23 May from Galaxy Wholesalers.  This invoice was incorrectly debited to the account of Fredrick Traders. 4 The statement closed on the 25th of the month.

    ASSET DISPOSAL 2020 Sept. 1 Vehicles GJ (5) 2020 Sept. 1 Debtors control GJ 83 000               Accumulated depreciation on vehicles GJ   (6)                         3.4 PROBLEM SOLVING      Brightstar TV’s sells one brand of television. The owner, Arrie has three branches operating in Pretoria, Prieska and Pofadder. Arrie provided the following figures from the three branches for the financial period ending 28 February 2021.     REQUIRED:     3.4.1 Identify ONE problem in relation to each branch, quoting figures to support you answers. In each case, offer Arrie advice on how to solve the problem. (9)   INFORMATION       Pretoria Prieska Pofadder Number of televisions 500 800 700 Number of televisions sold 380 730 80 Closing stock 120 60 620 Selling price per television R4 200 R4 200 R4 200 Total amount deposit R1 566 000 R3 066 000 R336 000 Advertising per year R30 000 R30 000 R50 000 Salary of manager per month R8 000 R8 000 R16 000     TOTAL 150  

INSTRUCTIONS   1. Read the following instructions carefully and make sure you follow them.       2. An ANSWER BOOK is provided in which you must answer all the relevant questions.   3. Show ALL calculations to earn part marks.      4. MAKE SURE YOU UPLOAD THE CORRECT ANSWER SHEET!!! INCORRECT UPLOADS =0   MAKE SURE YOU SAVE YOUR FILES CORRECTLY: ACCN GR11E T02 SBA004b YOUR SURNAME YOUR NAME YOUR DOCUMENT MUST BE IN PDF FORMAT.      5. You may use a non-programmable calculator.   6. If you choose to complete your exam by hand, make sure it is neat and legible.  Illegible handwriting = 0.   7. Make use of the time allocation provided for each question.  Try NOT to deviate from it.   ACCN GR11E T2 SBA004b AB (Paper 2).pdf  ACCN GR11E T2 SBA004b AB (Paper 2).docx 

QUESTION 1.2  BANK RECONCILIATION AND INTERNAL CONTROL REQUIRED Use the information below to complete the following: 1.2.1.   Cash Receipt Journal and the Cash Payment Journal of BrightLight Traders for February 2021.  Total only the bank columns in the cash journals. (22) 1.2.2 Prepare the Bank account on 28 February 2021. (6) 1.2.3 Prepare the Bank Reconciliation Statement on 28 February 2021. (12) 1.2.4 Answer the following questions:     1.2.4.1 Why is it important to draw up a monthly bank reconciliation statement? (2)   1.2.4.2 Refer to 3.4.  How will cheque no 104 be treated at the end of the financial year? (4)   1.2.4.3 Briefly explain TWO internal control procedures that the business could put in place in order to avoid cash being stolen.  (4)   1.2.4.4 Give TWO advantages of internet banking. (4)   1.2.4.5 Sally opened a savings account at FNB.  David got a loan from ABSA.  The South African Reserve Bank decided to increase the interest rate. Indicate whether this decision will have positive or a negative impact on Sally and David.  Explain your answer. (4) INFORMATION 1. An extract from the Bank reconciliation statement on 31 January 2021 showed the following:     Debit Credit Credit balance according to bank statement   3 571 Credit outstanding deposit   3 218 Debit outstanding cheques               101 1 489             102 350             104 950   Debit balance according to bank account ??     6 789 6 789   2. Totals of the cash journals on 28 February 2021:     2.1 Cash Receipt Journal           Bank                                        R44 190         Sundry accounts R44 190       2.2 Cash Payment Journal         Bank R42 500         Sundry accounts R42 500    

GENERAL LEDGER OF BRIGHTSTAR TRADERS   VEHICLES 2020 Mar. 1 Balance b/d 310 000 2020 Sept. 1 Asset disposal 150 000 Dec. 1 CJ 144 000 2021 Feb. 28 Balance c/d                         2021 Mar. 1 Balance b/d                   ACCUMULATED DEPRECIATION ON VEHICLES 2020 Sept. 1 Asset disposal GJ 67 500 2020 Mar. 1 Balance b/d 100 000 2021 Feb. 28 Balance c/d       Sept. 1 Depreciation GJ 7 500           2021 Feb. 28 Depreciation GJ   ?                               2021 Mar. 1 Balance b/d      

      GENERAL LEDGER OF TK BASJAN TRADERS VEHICLES 2020 Mar. 1 Balance b/d 310 000 2020 Sept. 1 Asset disposal GJ 150 000 Dec. 1 Creditors control CJ 144 000 2021 Feb. 28 Balance c/d      304000         454000         454000 2021 Mar. 1 Balance b/d                                     ACCUMULATED DEPRECIATION ON VEHICLES 2020 Sept. 1 Asset disposal GJ 67 500 2020 Mar. 1 Balance b/d 100 000 2021 Feb. 28 Balance c/d       Sept. 1 Depreciation GJ 7 500           2021 Feb. 28 Depreciation GJ   ?                               2021 Mar. 1 Balance b/d                           ASSET DISPOSAL 2020 Sept. 1 Vehicles GJ (5) 2020 Sept. 1 Debtors control GJ 83 000               Accumulated depreciation on vehicles GJ (6)                         TOTAL: 100 MARKS  

QUESTION 3 ASSET DISPOSAL AND INTERNAL CONTROL                ou are provided with the partially completed ledger accounts of Lunabugz   REQUIRED:     3.1 Answer the following questions:     3.1.1 Depreciation on vehicles is calculated on the cost.  Calculate the percentage at which depreciation is written off each year. 4   3.1.2 On which date was the vehicle that was sold, originally bought? 4   3.1.3 Refer to the Asset disposal account.  How was the asset sold? 2   3.1.4 Calculate depreciation on the unsold vehicles on 28 February 2021, the end of the financial year.  (Use the percentage as calculated in 3.1.1) 5   3.1.5 Calculate the amount for depreciation as it would appear in the Income statement on 28 February 2021. 4   3.1.6 Calculate the profit made on the sale of the vehicle. 3           3.2 On the evening of 28 February 2021, the new vehicle is stolen.  The business is properly insured.     3.2.1 Calculate the book value on the new vehicle that was stolen, as on 28 February 2021. Assume that the accumulated depreciation on the new vehicle is R3 600. 3   3.2.2 Which two measures can the business apply to improve their internal control?   4   3.3 Record the following transactions, by completing the table in the answer book:       Sold old equipment, which originally cost R15 000, on 28 February 2021.  The accumulated depreciation on the equipment on the date of sale, amounted to R9 000.  The business sold the equipment for R5 900 cash.  The business made a loss of R100 with the sale of the asset. 12

  Adjustments for January 2021 that were not entered into the Creditors Control account and/or individual accounts of the creditors in the Creditors Ledger:     The Creditors Control column in the CJ was posted to the Creditors Control ledger account as R40 360. (It was understated.)     The CAJ’s totals were never posted to the General Ledger.     The Creditors Control column in the CPJ was incorrectly posted to the credit side of the Creditors Control account.     Cheque no. 24 given to Pete’s Baking Supplies, valued at R5 000, was never entered into the journals or Creditors Ledger for Pete’s Baking Supplies. A 5% discount was granted.     All transaction that follow will not affect the Creditors Control ledger account.     •        Stock was returned to Micra Wholesalers valued at R1 350. This was not entered into their account in the Creditors Ledger, but all other entries were correctly recorded.     •        Credit purchases of stock from The Plastic Warehouse were never recorded. The stock had a selling price of R18 460 and a 10% trade discount was received.     •        A C/N received from The Plastic Warehouse for R600 was entered into the Creditors Control but incorrectly recorded in their account in the Ledger as R800.     •        Fitz Bakery reduced their debt with The Plastic Warehouse by R20 000. Sally had negotiated a 2% discount before paying the balance. This transaction was never recorded in the Creditors Ledger of The Plastic Warehouse.     REQUIRED:   2.1 Show how the Creditors Control balance is adjusted and that its balance is the same as the total of the Creditors List (descriptions of the adjustments are not required). 7 2.2 Complete the Creditors List for the month ending January 2021. 9 2.3 Name two internal controls that Sally could put in place to ensure that source documents are not lost or misplaced, resulting in inaccurate financial records. 2 2.4 Comment on how well Fitz Bakery is managing their debt, both from debtors and to creditors. Quote specific figures to substantiate your comments. 4 2.5 Fitz Bakery sends their debtors’ statements each month and makes telephonic calls to the tuck shops when a payment is not received every month. She applies the credit terms, as noted in the Information Booklet, accurately. Suggest one other thing that Fitz Bakery could do in order to get their debtors to pay more regularly. 1 2.6 Sally Fitzhenry is of the opinion that she does not need to reconcile her bank account with the statement received from CBM Bank on a monthly basis.   2.6.1 Explain to her why it is essential for her to do a bank reconciliation. 1 2.6.2 Provide one example of information that would only be found on the bank statement, which the business would not know of unless they did a bank reconciliation. 1          

    Alle transaksies wat volg, sal nie die Krediteurekontrole grootboekrekening beïnvloed nie.       •Die voorraad ter waarde van R1 350 is aan Micra Groothandelaars  teruggestuur. Dit is nie in die Krediteuregrootboek in hul rekening aangeteken nie, maar alle ander inskrywings is korrek aangeteken.       •Kredietaankope van voorraad by The Plastic Warehouse is nooit aangeteken nie. Die aandeel het ‘n verkoopprys van R18 460 gehad en ‘n handelskorting van 10% is ontvang.       •’n Kredietnota ontvang van The Plastic Warehouse vir R600 is in die Krediteurekontrole rekening aangeteken, maar verkeerdelik in hul rekening as R800.       •Fitz Bakery het hul skuld by The Plastic Warehouse met R20 000 verminder. Sally het ‘n korting van 2% beding voordat sy die balans betaal het. Hierdie transaksie is nooit in die krediteuregrootboek van The Plastic Warehouse opgeteken nie.       • Voorraad is teruggestuur aan Micra Groothandelaars ter waarde van R1 350. Dit is nie in hulle rekening in die krediteuregrootboek aangeteken nie, maar alle ander inskrywings is korrek aangeteken.       Kredietaankope van voorraad by The Plastic Warehouse is nooit aangeteken nie. Die voorraad het ‘n verkoopprys van R18 460 gehad en ‘n handelskorting van 10% is ontvang.       • ‘n Kredietnota ontvang van The Plastic Warehouse vir R600 is in die Krediteurekontrole opgeteken, maar verkeerdelik in hul rekening aangeteken as R800.       Fitz Bakery het hul skuld by The Plastic Warehouse met R20 000 verminder. Sally het ‘n korting van 2% beding voordat sy die balans betaal het. Hierdie transaksie is nooit in die krediteuregrootboek van The Plastic Warehouse opgeteken nie.               GEVRA:     2.1 Toon aan hoe die krediteurekontrole rekening aangepas moet sodat die saldo dieselfde is as die totaal van die krediteurelys (beskrywings van die aanpassings is nie nodig nie). 7   2.2 Voltooi die krediteurelys vir die maand geeïndig Januarie 2021. 9   2.3 Noem twee interne kontroles wat Sally kan instel om te verseker dat brondokumente nie verlore raak of misplaas word nie, wat onakkurate finansiële rekords tot gevolg het. 2   2.4 Lewer kommentaar oor hoe goed Fitz Bakery hul skuld bestuur, beide  debiteure en krediteure. Haal spesifieke syfers aan om jou kommentaar te staaf. 4   2.5 Fitz Bakery stuur elke maand hul debiteure se state en bel telefonies na die snoepies as daar nie elke maand ‘n betaling ontvang word nie. Sy pas die kredietvoorwaardes, soos aangedui in die inligtingsboekie, akkuraat toe. Stel nog een ding voor wat Fitz Bakery kan doen om te verseker dat debiteure meer gereeld betaal. 1   2.6 Sally Fitzhenry is van mening dat sy nie haar bankrekening hoef te rekonsilieer met die maandelikse bankstaat van CBM Bank ontvang word nie.     2.6.1 Verduidelik aan haar waarom dit vir haar noodsaaklik is om bankversoening te doen. 1   2.6.2 Gee een voorbeeld van inligting wat slegs op die bankstaat gevind kan word, waarvan die besigheid nie sou weet nie, tensy hulle ‘n bankversoening doen. 1              

VRAAG 2: KREDITEUREREKONSILIASIE       Sally Fitzhenry het ‘n klein bakkery genaamd Fitz Bakery in Edenvale, Johannesburg, wat ook ‘n koffiewinkel is. Sy verskaf gebak aan verskillende snoepwinkels in die omgewing wat `n kredietooreenkoms met haar aangegaan het. Al haar grondstowwe word op krediet by Micra Groothandelaars, Pete’s Baking Supplies en The Plastic Warehouse gekoop. Sally bank by CBM Bank.       Die volgende inligting is op 31 Januarie 2021 uit die finansiële rekords van Fitz Bakery geneem:         31 Jan 2021      KREDIETTERME Debiteure kontrole 86 521      30 dae, minus 5% afslag Krediteure kontrole 178 624     60 dae, minus 3% afslag             DEBITEURE OUDERDOMS ANALISE  (31 Jan) Krediteure lys:     Huidig                   R11 648    Micra Wholesalers 31 895   30 dae                 R26 452    Pete’s Baking Supplies 33 150   60 dae                  R31 430    The Plastic Warehouse 74 481   90+ dae               R16 991               Sally se boekhouer het bedank en haar kennisgewingstydperk in Desember gewerk. Sally het dit dus op haar geneem om die boekhouding en verslagdoening van die finansiële inligting vir Januarie 2021 te bestuur, ondanks haar beperkte kennis van Rekeningkunde. As gevolg hiervan het Sally sommige brondokumente misplaas en verloor, ander inskrywings is weggelaat of verkeerd in haar joernale en grootboeke ingevoer, wat veroorsaak het dat die krediteurekontrolerekening en die krediteurelys nie gebalanseer is nie.       Die volgende totale verskyn in die joernale op 31 Januarie 2021: Totale van die krediteure kontrole kolom in die KJ R 42 360 Totale van die krediteure kontrole kolom in die KAJ R   8 110 Totale van die krediteure kontrole kolom in die KBJ R 18 762 Totale van die debiteure kontrole kolom in die DJ R 21 640