WESTERFORD HIGH SCHOOL

GRADE 10

ACCOUNTING EXAMINATION

26 May 2009

MARKS: 200 TIME: 2 HOURS

Name: ................................................................. Grade 10 ..........

Mark allocation for

Question Topic Learner’s Mark
question
Documents, recording, accounting
1 equation & concepts
50

2 Debtors & stock 50

3 General Journal 45

4 Different accounting systems 15

5 Debtors and creditors ledgers 30

6 Code of ethics 10

TOTAL 200
QUESTION 1

1.1

Date Document Journal Account Account Amount Effect on

debited credited equation
A O L
1 Receipt CRJ Bank Capital R80 000

1 JV GJ Vehicles Capital R90 000

5 R700

11 R750

11 R500

12 R8 000

15 R1 350

15 R900

16 R240

16 R160

18 R40

20

22 R450

25

25

35

2
1.2 Do you agree with Patricia’s opinion about documents? Provide a
convincing but concise explanation for your opinion.

(5)
1.3 Explain what is meant by the ‘Business Entity Rule’ and why it is
important for Michael to open a separate bank account in the
name of the business.

(4)
1.4 Explain what is meant by the following:

• Assets

• Liabilities

• Owner’s equity

(6)

MARKS

50

3
QUESTION 2:

DEBTORS:
2.1 According to the general ledger, how much is owed by the debtors at
the end of April?

(2)
2.2 What is the best way of checking that the amount owed by debtors
according to the general ledger is correct?

(2)
2.3 What is the value of credit sales for April?

(2)
2.4 If the discount allowed to debtors for early payment is R620, how
much did the debtors pay during April?

(2)
2.5 A bad debt was written off during April. In which figure in the ledger
account, is this bad debt included (provide only the figure)?

(2)
2.6 Give one possible explanation for the entry of R340 on the debit
side.

(2)
2.7 Give one possible explanation for the entry of R588 on the credit
side.

(2)
2.8 Have the debtors generally been settling their accounts on time?
Provide figure/s from the ledger account to support your opinion.

(4)
2.9 If a debtor proves to be slow in settling his debt, what two points of
advice would you provide to Phatedi Traders to solve this problem?

(4)
2.10 All new customers opening accounts should be ‘screened’ by
Phatedi Traders. What is meant by ‘screening’ and why is it
important for the business to do this?

(4)

4
TRADING STOCK:
2.11 According to the general ledger, how much trading stock is on hand
at the end of April?

(2)
2.12 What is the best way of checking that the amount of stock on hand
according to the general ledger is correct?

(2)
2.13 What is the value of cash sales for April?

(3)
2.14 In your opinion, should this business try to encourage more cash
sales than credit sales? Briefly explain your reason.

(2)
2.15 How much stock was bought on credit during April?

(2)
2.16 What is the main advantage of buying stock on credit?

(2)
2.17 Provide the folio reference for the entry of R4 426 on the credit side.

(2)
2.18 Should Phatedi Traders be satisfied with the quality of goods they
have been receiving from their suppliers? Provide figure/s from the
ledger account to support your opinion.

(4)
2.19 Provide the contra detail for the entry of R3 360 on the debit side.

(2)
2.20 Is Phatedi Traders carrying enough stock to satisfy the needs of its
customers for May? Provide figure/s to support your opinion.

(3)

MARKS

50

5
 QUESTION 3:
General Journal of Winter Traders for August 2009 GJ Debtors control Creditors control
Day Details Debit Credit Debit Credit Debit Credit

MARKS

45

6
QUESTION 4.1:

4.1.1 Briefly explain what is meant by an ‘entrepreneur’.

(2)
4.1.2 Briefly explain the difference between ‘indigenous’ and ‘formal’
bookkeeping systems.

(3)
4.1.3 Consider the following statements. Decide which statements
would apply to Mary and which would apply to Brenda. Place a
tick in the appropriate column/s. Note that some statements could
apply to both. (10)
MARY BRENDA
Indigenous Formal
system system
She relies on self-management
She plans extensively and ensures that budgets are drawn up
regularly
She uses documents extensively
She relies mainly on cash transactions
She safeguards her cash and her assets herself
She has separate bank accounts for herself and her business
She notes her important transactions in a notebook only
She may consider using a computerized accounting software
package
Making a profit is an important objective for her business
She keeps journals and ledgers and prepares a trial balance
each month
She adheres to GAAP
There is only one person involved in her business
She employs an accountant to prepare her financial
statements
There are divisions of duties within her business so that one
employee serves as a check on another
She is concerned about a good relationship with customers

MARKS

15

7
 QUESTION 5

Debtors Ledger of Charming Stores

Sleek
Date Code Details / Document no. fol Debit Credit Balance

Creditors Ledger of Charming Stores

Smooth
Date Code Details / Document no. fol Debit Credit Balance

MARKS

30

8
QUESTION 6

COLUMN A COLUMN B

No PRINCIPLE / ETHICS PRINCIPLE AS PER CONTRACT

6.1 Objectivity
6.2 Technical standards
6.3 Confidentiality
6.4 Integrity
Professional conduct and due
6.5
care

MARKS

10