NATIONAL SENIOR CERTIFICATE

GRADE 12

ACCOUNTING NOVEMBER 2009(1)

MARKS: 300 TIME: 3 hours

This question paper consists of 19 pages and an answer book of 21 pages.

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Accounting

2 NSC

DoE/November 2009(1)

INSTRUCTIONS AND INFORMATION 1. 2. 3. 4. 5. Answer ALL the questions. A special ANSWER BOOK is provided in which to answer ALL the questions. Workings must be shown in order to achieve part-marks. Non-programmable calculators may be used. You may use a dark pencil or blue/black ink to answer the questions.

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Accounting

3 NSC

DoE/November 2009(1)

6.

Use the information given in the table below as a guide when answering the question paper. Try NOT to deviate from it. QUESTION 1: 35 marks; 20 minutes Topic of the question: Learning outcomes covered: LO1 Financial accounting - AS4 Creditors' reconciliation Creditors' reconciliation LO3 Managing resources - AS6 Internal control QUESTION 2: 40 marks; 24 minutes Topic of the question: Learning outcomes covered: LO1 Financial accounting - AS5 Interpretation of financial information Inventory valuation and LO3 Managing resources control - AS4 Inventory valuation - AS6 Apply internal control and audit processes QUESTION 3: 55 marks; 33 minutes Topic of the question: Learning outcomes covered: LO2 Managerial accounting Manufacturing - AS2 Prepare, analyse and report cost information QUESTION 4: 70 marks; 42 minutes Topic of the question: Learning outcomes covered: LO1 Financial accounting - AS5 Financial statements Financial statements and - AS6 Independent auditor's report audit of a company LO3 Managing resources - AS3 Asset disposal - AS5 Professional bodies QUESTION 5: 70 marks; 43 minutes Topic of the question: Learning outcomes covered: LO1 Financial accounting Cash-flow statement and - AS5 Final accounts, financial statements ratio analysis and interpretation QUESTION 6: 30 marks; 18 minutes Topic of the question: Learning outcomes covered: LO2 Managerial accounting - AS3 Analyse and interpret a cash Debtors' collection and budget interpretation of budget LO3 Managing resources - AS6 Apply internal control and audit processes

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4 NSC

DoE/November 2009(1)

QUESTION 1 CREDITORS' RECONCILIATION (35 marks; 20 minutes)

You are the internal auditor of Valentine Stores, a gift shop owned by Mark Masuku. The Creditors' Control Account and Creditors' List were prepared by the bookkeeper, Ditzy Donald. The postings from the journals have been done, but you have noted a number of errors and omissions. REQUIRED: 1.1 The Creditors' Control Account reflected a balance of R61 417 while the total of the Creditors' List from the Creditors' Ledger reflected a total of R59 387. Briefly explain why it is important that these two figures agree. Refer to Information 2: Errors and Omissions below. 1.2.1 List the corrections that the bookkeeper must make to the Creditors' Control Account in the General Ledger. The first one has been done for you as an example. If no entry is applicable, you must write 'NO ENTRY'. Prepare a correct Creditors' List on 31 July 2009. Show workings in brackets to earn part-marks.

(2)

1.2

(11)

1.2.2

(16) (6)

1.3

Provide THREE points for good internal control over creditors.

INFORMATION 1. CREDITORS' LIST ON 31 JULY 2009 Debit Khan Traders Thankful Stores Connel Ltd Yolisa Wholesalers TOTALS R563 = R59 387 R563 R30 560 R10 890 R18 500 R59 950 Credit

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Accounting

5 NSC

DoE/November 2009(1)

2.

ERRORS AND OMMISSIONS A. A credit invoice for trading stock purchased from Connel Ltd for R3 400 on 28 July 2009 was not recorded at all. (See solution in ANSWER BOOK.) Stock purchased on credit from Connel Ltd, R7 200, was incorrectly posted to the account of Yolisa Wholesalers. Interest of R258 must be brought into account on the overdue account of Connel Ltd. The debit balance of Khan Traders must be