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Q1— Section header —
1.1CASH RECEIPT JOURNAL CASH PAYMENT JOURNAL R510 607 R488 260
1.1.2Calculate the Bank Account balance in the Ledger of Hartfield Suppliers on 30 April 2018. R30 975
1.3Bank Reconciliation Statement on 30 April 2018
1.2The internal auditor is concerned about the management of cash.
1.2Explain TWO different problems to justify her concern. Quote figures. Problem 1 Problem Give advice (TWO points\ on how such problems can be avoided in future. Point 1: Point 2:
1.3Explain TWO benefits of using the electronic funds transfer (EFT\ system rather than cheques for direct payments to suppliers. Benefit 1: Benefit 2: TOTAL MARKS
Q2— Section header —
2.2TIGHT FIT MANUFACTURERS
2.2.1Calculate: alue of the closing stock of raw materials Workings Answer Calculate: Value of direct/raw materials issued for production Workings
2.2.2Production Cost Statement for the year ended 31 March 2018. Direct labour cost Prime cost Total manufacturing costs Work process at beginning of year Cost of production of finished goods
2.2.3Give TWO reasons why the business should support local suppliers. Reason 1: Reason 2:
2.3BREAK TIME MANUFACTURERS
2.3.1Calculate the d irect labour cost for the year ended 30 April 2018. Workings Answer Calculate the b reak even point for the year ended 30 April 2018.
2.3.2Explain why the owner should be concerned about the break even point. Quote figures.
2.3.3Explain why the owner would NOT be satisfied with the direct labour cost per unit. Quote figures. Give ONE solution to this problem TOTAL MARKS
Q3— Section header —
3.1Calculate the value of the closing stock of bicycles on 31 May 2018. Workings Answer Tempo Cruze Ryder
3.1.2Calculate the selling price of a Ryder bicycle. Workings Answer Calculate the average number of Ryder bicycles sold per month. Workings Answer Indicate how long it will take Fred to sell the closing stock of the Ryder
3.2.1Explain why it was NOT a good idea to change to a cheaper supplier of shirts. State TWO points. Point 1: Point 2:
3.2.2Celia decided to change the supplier in 2018 and to change the mark up %. How has this decision affected the business? State TWO points. Point 1: Point 2:
3.2.3Make TWO separate suggestions to Celia to improve the profit on pants in 2019. Point 1: Point 2: TOTAL MARKS
Q4— Section header —
4.2MODISE LTD
4.2.1RETAINED INCOME NOTE Balance at beginning of year R567 000 Ordinary share dividends Balance at end of year
4.2.2MODISE BALANCE SHEET ON 28 FEBRUARY 2018 ASSETS Non current assets Fixed assets Current assets Inventories TOTAL ASSETS
4.2.3The directors want to give R500 000 to a local school. Give TWO reasons why companies take such decisions.
4.3AUDIT REPORT
4.3.1Briefly explain the role of an independent auditor.
4.3.2Did Denga Limited receive a qualified/unqualified/disclaimer of opinion audit report? Briefly explain your choice. 11
4.3.3State THREE possible consequences for the independent auditor if he had NOT mentioned the advertising expense in his report. Point 1: Point 2: Point 3: TOTAL MARKS 12
Q5— Section header —
5.2MALOTRA LTD
5.2.1Workings Answer
5.2.2Calculate the net profit after income tax on 28 February 2018. Workings Answer
5.2.3Calculate the ividends paid Workings Answer Calculate the f unds used to repurchase shares Workings Answer
5.2.4Net change in cash and cash equivalents Cash and cash equivalents (opening balance\ Cash and cas h equivalents (closing balance\
5.2.5Calculate the a cid test ratio Workings Answer Calculate the d ebt equity ratio
5.2.6The directors decided to increase the loan during the current financial year. Explain whether this was a good decision or not. Quote TWO financial indicators (with figures\. 14
5.2.7Comment on the price paid for the shares repurchased on 1 January 2018. Quote TWO financial indicators (with figures\.
5.2.8Thandi Nene owns 416 000 shares in the company. When the directors decided to issue a further 200 000 shares during October 2017, she decided not to buy more shares and rather spend her funds on an overseas holiday.
Q6— Section header —
6.1.1The main purpose of a Cash Budget is to
6.1.2The main purpose of a Projected Income Statement is
6.2.1Debtors Collection Schedule: CREDIT SALES MAY 2018 JUNE 2018 March 2018 22 680 April 2018 May 2018
6.2.2Determine the d iscount allowed for May 2018 Workings Answer Determine the b ad debts written off in June 2018 Workings
6.3
6.4.1Tony is not concerned about the overspending in advertising. Explain why this is so. Quote figures to support your answer.
6.4.2State ONE consequence of not paying the amount due to creditors in April 2018.
6.4.3