Accounting Grade 10 Control Test - QP

JOHANNESBURG CENTRAL DISTRICT
13 SEPTEMBER 2024
ACCOUNTING
GRADE 10
CONTROL TEST 2
DURATION:1,5 HOURS
Instructions and information:
1. Answer ALL the questions.
2. A special ANSWER BOOK is provided in which to answer ALL the questions.
3. Show ALL workings to earn part-marks.
4. You may use non-programmable calculator.
5. You may use a blue or black pen to answer the questions.
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 MINUTES
1 Concepts and Statement of 53 48

Financial Position
2 Analysis and Interpretation of 47 42
Financial Statements
TOTAL 100 90
This question paper consists of 7 pages and formula sheet.
1
QUESTION 1: CONCEPTS AND STATEMENT OF FINANCIAL POSITION
(53 marks; 48 minutes)
1.1 CONCEPTS
Match a concept in COLUMN A with a description in COLUMN B. Write only the correct
letter next to the question number in your answer book.
COLUMN A COLUMN B
1.1.1 Solvency A It’s recorded under current

liabilities.
1.1.2 Prepaid expense B It reports on how the capital
invested is managed by the
owner.
1.1.3 Current ratio C Ability to pay off all the debts of a
business.
1.1.4 Return on owner’s equity d It measures liquidity of the
business.
1.1.5 Bank overdraft E Expenses paid for the next
financial period.
(5)
1.2 STATEMENT OF FINANCIAL POSITION

The following information was extracted from the records of Peri Stores. Their financial
period ends on 30 June 2024.
REQUIRED:
1.2.1 Prepare the Owner’s Equity Note (6)
1.2.2 Prepare the Statement of Financial Position (Balance Sheet) for the year ended 30 (42)
June 2024
2
INFORMATION:
Extract from the Post-adjustment Trial Balance on 30 June 2024.
Capital (01 July 2023) R280 000

Drawings 50 000
Fixed assets at carrying value 712 150
Fixed deposit: Tulip Bank (10% p.a.) 90 000
Mortgage loan: Busa Bank 332 000
Trading stock 100 000
Debtors control 55 000
Creditors control 60 000
Bank DR 85 000
Petty cash 5 000
Cash float 7 000
Consumables on hand 4 500
Accrued income 16 000
Accrued expenses 3 500
Prepaid expense 6 000
Creditors for salaries 4 000
SARS(PAYE) 350
Medical aid 400
Pension fund 1 750
NOMINAL ACCOUNTS SECTION
Profit and loss (Net profit for the year) 370 000
Additional information:
B. A quarter of the fixed deposit will mature on 01 July 2024.

C. The owner made the following transactions on the last day of the financial
period. Both have not been recorded.
• Additional capital contribution of R40 000.

• Peri took trading stock, the cost price is R3 500.
D. The loan statement received from Busa Bank was as follows:
Balance on 01 July 2023 360 000

Repayments for the year (including interest) 28 000
Interest capitalised 22 000
Balance on 30 June 2024 ?
• An amount of R30 000 in respect of the loan will be paid in the next
financial year.
3
D. A credit balance of R1 500 in the Debtors Ledger must be transferred to their
account in the Creditors Ledger.
E. Rent has been received for 2 months in advance, the total amount received
during the year is R277 200.
F. Depreciation amount of R17 050 has not been recorded.
53
QUESTION 2: ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENT

4
(47 marks; 42 minutes)
SWEET AND SOUR TRADERS

The information provided is from the books of Sweet and Sour Traders for the financial
year ended on 29 February 2024.
REQUIRED:
2.1 Calculate the following 2024 financial indicators by referring to

INFORMATION A and B. Calculate your answers to ONE decimal place.
2.1.1 Calculate a mark-up % achieved. (4)
2.1.2 Calculate the % operating expenses on sales. (3)
2.1.3 Calculate the current ratio (5)
2.1.4 Calculate the solvency ratio (4)
2.1.5 Calculate the return on average owner’s equity (5)
2.2. Mark-up % should remain constant at 80% every year but it has decreased in
the current year. Explain to Mickey why the business did not achieve the
intended mark-up. Provide TWO reasons. (4)
2.3 Should the owner be happy with the liquidity of the business? Quote and
explain TWO financial indicators to support your answer. (7)
2.4 Should the owner be happy with his return? Quote and explain ONE financial
indicator to support your answer. (5)
2.5 Explain why the trading stock is excluded in the calculation of acid test ratio? (4)
Provide TWO points.
2.6 The owner allocated more funds towards stock the in the current year, he (6)
suspects that stock is stolen by either the customers or employees. Give THREE
suggestions the owner can implement to safeguard stock from the risk of theft.
5
INFORMATION
A. Income statement for the year ended 29 February 2024

Sales R1 200 000
Cost of sales ?
Gross profit 450 000
Other operating income 210 000
Operating expenses 260 000
Operating profit 400 000

Net profit for the year 423 600
B. Statement of financial position (Balance Sheet) February

2024 2023
Total assets 2 580 000 2 494 120
Fixed assets 1 875 500 1 850 000
Fixed deposit 515 500 500 000
Inventory 54 000 42 120
Trade and other receivables 77 000 62 000
Cash and cash equivalents 58 000 40 000
Owner’s equity 1 657 000 1 660 120
Mortgage bond: Prestik Bank 860 000 780 000
Current liabilities 63 000 54 000
C. Financial Indicators
2024 2023
Gross profit on sales 37,5% 32,6%
Gross profit on cost of sales(mark-up) ? 65%
Operating expenses on sales ? 20,2%
Current ratio ? 2,7 :1
Acid test ratio 2,1:1 1,9:1
Solvency ? 3:1
Interest on fixed deposit 9% 9%
Return on average owner’s equity ? 24%
47
TOTAL MARKS: 100
6
GRADE 10 ACCOUNTING FINANCIAL INDICATOR FORMULA SHEET
Gross profit x 100 Gross profit x 100 Net profit before tax x 100
Sales 1 Cost of sales 1 Sales 1
Operating expenses x 100 Operating profit x 100

Sales 1 Sales 1
Current assets: Current liabilities (Current assets – Inventories): Current liabilities
(Trade and other receivables + Cash and cash equivalents): Current liabilities
Total assets: Total liabilities

___Net profit__ x 100
Owner’s equity 1

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JOHANNESBURG CENTRAL DISTRICT

QUESTION TOPIC MARKS MINUTES

1 Concepts and Statement of 53 48

This question paper consists of 7 pages and formula sheet.

1.1.1 Solvency A It’s recorded under current

1.2 STATEMENT OF FINANCIAL POSITION

1.2.1 Prepare the Owner’s Equity Note (6)

Capital (01 July 2023) R280 000

B. A quarter of the fixed deposit will mature on 01 July 2024.

• Additional capital contribution of R40 000.

Balance on 01 July 2023 360 000

F. Depreciation amount of R17 050 has not been recorded.

QUESTION 2: ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENT

SWEET AND SOUR TRADERS

2.1 Calculate the following 2024 financial indicators by referring to

2.1.1 Calculate a mark-up % achieved. (4)

2.1.2 Calculate the % operating expenses on sales. (3)

2.1.3 Calculate the current ratio (5)

2.1.4 Calculate the solvency ratio (4)

2.1.5 Calculate the return on average owner’s equity (5)

A. Income statement for the year ended 29 February 2024

Operating expenses 260 000

Operating profit 400 000

B. Statement of financial position (Balance Sheet) February

TOTAL MARKS: 100

Operating expenses x 100 Operating profit x 100

Current assets: Current liabilities (Current assets – Inventories): Current liabilities

Total assets: Total liabilities

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