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2023 Grade 12 Controlled Test 1 QP

The document is a controlled test paper for grade 12 accounting that consists of two compulsory questions worth 100 marks total. Question 1 (30 marks) covers concepts and notes related to the statement of financial position, including indicating items in the financial statements and preparing share capital and retained income notes. Question 2 (70 marks) requires calculating the correct net profit after tax using provided information with adjustments, and preparing the statement of financial position. The test is 1 hour and 5 minutes long.

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2K views5 pages

2023 Grade 12 Controlled Test 1 QP

The document is a controlled test paper for grade 12 accounting that consists of two compulsory questions worth 100 marks total. Question 1 (30 marks) covers concepts and notes related to the statement of financial position, including indicating items in the financial statements and preparing share capital and retained income notes. Question 2 (70 marks) requires calculating the correct net profit after tax using provided information with adjustments, and preparing the statement of financial position. The test is 1 hour and 5 minutes long.

Uploaded by

annabellabloom282007
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Sedibeng West District

Accounting
Grade 12
Controlled Test 1
Duration: 1, 5 hours
Marks: 100
9 March 2023
Instruction and information:

1. You are provided with a question paper and answer sheet.


2. This question paper comprises of TWO compulsory questions.
3. Show ALL workings to earn part-marks.
4. Non-programmable calculator may be used.
5. A blue/black pen may be used.
6. Write neatly and legibly.
7. Use the information in the table as guide when answering the
question paper. Try not to deviate from it.

Question Topic Marks Time


allocated

1 Concepts and notes to the Statement 30 27


of Financial Position (Balance Sheet)

2 Incorrect net profit and Statement of 70 63


Financial Position (Balance Sheet)

Total 100 90

This question paper consists of 5 pages (including the cover page).

1
QUESTION 1: CONCEPTS AND NOTES TO THE STATEMENT OF FINANCIAL POSITION
(30 marks; 27 minutes)
1.1 Indicate where EACH of the following items would be placed in the financial statements
by choosing a term from the list below. Write only the answer next to the question
numbers (1.1.1 to 1.1.5) in the ANSWER BOOK.

Statement of Financial Position; operating expenses; operating income; non-


current assets; current assets; Statement of Comprehensive Income;

1.1.1 Adjustment for a decrease in provision for bad debts


1.1.2 The owner's equity (net worth) of a company, its assets, and liabilities at
the end of the financial year
1.1.3 Fixed deposit that matures in three years' time
1.1.4 Consumable stores on hand
1.1.5 Income minus expenses to reflect net profit or loss of a company for a (5)
financial year
1.2 MIAMI TRADING LTD
The information relates to MIAMI Trading Limited, and the financial year ended
on 28 February 2023.
REQUIRED:
1.2.1 Prepare the Ordinary Share Capital Note on 28 February 2023. (10)
1.2.2 Prepare the Retained Income Note on 28 February 2023. (15)
INFORMATION:
A. Authorised share capital: 2 000 000 ordinary shares

1 March 2022 37,5% of the shares were in issue.


1 June 2022 The directors issued an additional 300 000
shares at R9.
31 October 2022 250 000 shares were repurchased at
R7,50.

B. Interim dividends of 40 cents were paid on 30 September 2022.


C. On 28 February 2023 directors declared a final dividend of 28 cents per
share to all shareholders on the share register.
D. The Income tax for the year amounted to R525 000, being 28% of net
profit.

30

2
QUESTION 2 INCORRECT NET PROFIT AND STATEMENT OF
FINANCIAL POSITION (BALANCE SHEET)
(70 marks, 63 minutes)
DOLLS LIMITED

The information related to the financial year ended 28 February 2023. The business
sells baby toys.

REQUIRED:

2.1 Use the table provided to calculate the correct net profit after tax for the year
ended. Indicate “+” for increase and “–“for decrease. (25)

2.2 Prepare the Statement of Financial Position (Balance Sheet) on 28 February


2023. (45)

Note:
• Adjustments from information B will also affect the Statement of Financial
Position (Balance Sheet).
• Show workings and certain figures are provided in the answer book.

INFORMATION:

A. The following balances/totals, amongst, appeared in the books on 28


February 2023:

Ordinary share capital (800 000 shares) 28 February R2 929 518


2023
Retained income ?
Loan: Zaza Bank 2 880 000
Fixed assets at carrying value on 28 February 2023 5 208 617
SARS: income tax (provincial payments) 489 000
Creditors Control 810 329
Net trade debtors 946 450
Trading stock 973 000
Fixed deposit: Shibambu Bank (6%) 450 000
Consumable stores on hand (28 February 2023) 15 200
Bank overdraft 12 890
Petty cash 6 100
Cash float 7 755
Advertising 25 680
Rent income 108 450
Ordinary share dividend (interim) 120 000

B. The net profit before tax, R3 912 850, was calculated before taking into
account/correcting the following:

(i) Audit fee includes R54 560 which was paid in advance for the next
financial year.

3
(ii) Debtor S. Mthimunye was declared insolvent, his estate paid R3 000,
which was 20% of his debts. The difference must be written off as bad
debts. This transaction was not recoded.

(iii) The provision for bad debts must be decreased by R2 850.

(iv) Advertising consists of a contract with a newspaper for the entire


financial year. Payments are made monthly, however premiums are
paid until 31 December 2022. Note: monthly rate decreased by R260
from 1 November 2022.

(v) The rent income for February 2023 is still outstanding. The rent
income increased by 15% on 1 July 2022.

(vi) Debtor with credit balance totaling R5 700 must transferred to the
creditor’s ledger.

(vii) The loan statement from Zaza Bank reflected the following:

Balance at beginning of the financial year 3 000 000


Repayment during the year (including interest) 325 000
Interest capitalized ?
Balance at the end of the financial year 2 880 000
The capital portion of the repayment of the loan for the next financial
year remains the same as the current financial year.

(viii) The auditor discovered that a loss on asset disposal on equipment


R12 800, was incorrectly shown as a profit.

(ix) One of an employee L. Hlubi who commenced on 1 February 2023


was omitted from the Salaries Journal and her salary was not
processed as yet. Details for her salary for February 2023 is as
follows:
Net Salary 18 375
PAYE deduction 4 500
Medical aid deduction 1 875
UIF deduction 250
The business contributes the following:
• Medical aid: 10,5% of gross salary
• UIF: Rand-for-rand basis
Note: All contributions are recorded as part of Salaries and Wages.

(x) R280 000 of the fixed deposit will mature on 1 May 2023.

(xi) After taking account the correction above, it was determined that an
additional R87 550 is still owed to SARS in respect of income tax for
the year.

4
(xii) Total dividends for the year amounted to R640 000.

70

GRAND TOTAL: 100

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