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Q1— Section header —
1.1DEBTORS AGE ANALYSIS
1.1.1Explain why the debtors age analysis is considered to be an effective internal control measure. State ONE point.
1.1.2Explain TWO different problems highlighted by the debtors age analysis. In EACH case, provide the name of a debtor and figure(s\ PROBLEM
1.2DEBTORS RECONCILIATION
1.2.1CORRECTIONS TO THE DEBTORS CONTROL ACCOUNT ON 30 NOVEMBER 2017 Balance before errors and omissions 25 700
1.2.2DEBTORS LIST ON 30 NOVEMBER 2017 L Nkosi (5 700 Muller (11
1.3.1Calculate the VAT amount that is either receivable from or payable to SARS on 31 July 2017. 11
1.3.2Nomvula has ordered goods with a marked price of R35 000 from Beta Suppliers. The sales director of Beta Suppliers, Jim Frow, has offered to sell these goods to Nomvula for R15 000, provided that they do not have to issue
Q2— Section header —
Q3— Section header —
3.1GLAMOUR DRESS CREATIONS
3.1.1PRODUCTION COST STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2017 21 Prime cost Total manufacturing cost Work
3.1.2Calculate the net profit for the year ended 28 February 2017.
3.2LIGHTING SOLUTIONS
3.2.1Calculate the factory overhead cost per unit for the year ended 31 December 2017.
3.2.2Explain why George would not be concerned about the 28,1% increase in total variable cost from R936 000 to R1 200 000. Accounting DBE/Feb.
3.2.3Give TWO reasons for the increase in the selling and distribution cost per unit.
3.2Calculate the break even point for the year ended 31 December 2017. Comment on the production level for 2017. State TWO points. Quote figures.
3.2Lighting Solutions are consider ing importing raw materials because it is cheaper and of a higher quality. Name TWO aspects that they must consider before finalising their decision.
Q4— Section header —
4.2ORBIT LTD
4.2.1(a\ ORDINARY SHARE CAPITAL Authorised 000 000 shares Issued (b\
4.2.2ORBIT LTD BALANCE SHEET ON 30 JUNE 2017 ASSETS NON CURRENT ASSETS Fixed/Tangible Assets Fixed deposit
4.2As a shareholder, explain your concern regarding the proposed buy back of shares. Provide calculations to support your concern. 4.
Q5— Section header —
5.1NO WORKINGS AMOUNT Additions to buildings 15
5.2.1WORKINGS ANSWER Calculate the income tax paid
5.2.2Calculate the d ividends paid
5.2.3Calculate the n et change in cash and cash equivalents
5.3CASH EFFECTS OF FINANCING ACTIVITIES 10 Accounting 12 DBE/Feb. Mar. 2018 NSC Answer Book
5.4.1Calculate the d ebt equity ratio
5.4.2Calculate the arnings per share (in cents\
5.4.3Calculate the r eturn on average shareholders equity (ROSHE\
5.5Explain why the directors felt that the 630 cents offered on the shares repurchased was a fair price. Quote TWO financial indicators with figures.
5.6.1The directors revised the dividend pay out policy for the current financial year. Calculate the percentage of earnings distributed as dividends for each year to show this change. Accounting
5.6.2Give ONE reason why the directors took this decision.
5.6.3Explain why the shareholders may not be satisfied with the return they earn . Quote a financial indicator or figure
5.7Apart from the dividends, i dentify THREE good decisions. Explain the effect of each decision on the company. Quote figures. GOOD DECISION
Q6— Section header —
6.1.1Calculate the m ark up percentage on spare parts used in the Projected Income Statement for March 2018
6.1.2Calculate the % decrease in service fee income expected in April 2018
6.1.3Calculate t he additional space (in square metres\the business will rent from April 2018
6.1.4Calculate the interest rate on the fixed deposit
6.2Comment on the control of stock and explain how Vusi intends to correct this. Quote figures. Accounting 15 DBE/Feb. Mar. 2018 NSC
6.3.1Vusi is thinking of purchasing the business premises rather than renting it. State ONE advantage and ONE disadvantage of this option. Advantage Disadvantage
6.3.2Vusi offers a free delivery service of spare parts to customers, but plans to discontinue this service on 31 March 2018. State TWO points to support this decision.
6.3Calculate the cost of the new vehicle that he plans to purchase on April 2018. Accounting 16 DBE/Feb.
6.4.1Explain whether Water and electricity has been well controlled, or not.
6.4.2Explain whether you agree with Vusi's decision not to use the full budget for Advertising.
6.4.3Explain whether Consumable stores have been well controlled, or not.
6.4.4Explain how Vusi's decision about the mark up percentage on spare parts has affected the business. TOTAL MARKS 45 TOTAL: 300