NATIONAL SENIOR CERTIFICATE

GRADE 11

QUESTION PAPER

ACCOUNTING
TERM 1 TASK 2: CONTROLLED TEST 1
15 MARCH 2024

MARKS: 100

TIME: 1½ Hours

This question paper consists of 11 pages,

a formula sheet and a 7-page answer book.
 Accounting Grade 11 2 Limpopo DoE/March 2024
Controlled Test 1 QP

INSTRUCTIONS

Read the following instructions carefully and follow them precisely.

1. Answer ALL questions.

2. A special ANSWER BOOK is provided in which to answer ALL questions.

3. A Financial Indicator Formula Sheet is attached at the end of this question paper.

Show ALL workings to earn part-marks.

4.
You may use a non-programmable calculator.
5.
You may use a dark pencil or blue/black ink to answer questions.
6.
Where applicable, show ALL calculations to ONE decimal point.
7.
Write neatly and legibly.
8.
Use the information in the table below as a guide when answering the question
9. paper. Try NOT to deviate from it.

QUESTION TOPIC MARKS TIME

1 Creditors Reconciliation 20 18 minutes

2 Fixed Assets 31 28 minutes

3 Partnerships: Ledger accounts 29 26 minutes

4 Partnerships: Profit and Loss 20 18 minutes

TOTAL 100 90 minutes

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 Accounting Grade 11 3 Limpopo DoE/March 2024
Controlled Test 1 QP

QUESTION 1: CREDITORS RECONCILIATIONS (20 Marks; 18 Minutes)

1.1 CONCEPTS
Indicate whether the following statements are True or False. Write only “True”
or “False” next to the question numbers (1.1.1 – 1.1.4) in the Answer Book (4)

1.1.1 A credit balance on the bank statement means that the business has
a positive balance in the bank.

1.1.2 A debit card may be used to withdraw cash from ATM.

1.1.3 A bank overdraft is a long-term loan that is transferred into the

business's current bank account.

1.1.4 Bank charges are the cost of making use of the services that a bank
offers.

1.2 CREDITORS RECONCILIATION

The creditors control account and the list of creditors of Thobakgale Traders
were prepared by an inexperienced bookkeeper. He identified the following
figures at the end of the month.

• Creditors control account, R74 710

• Creditors list, R32 590

REQUIRED:
1.2.1 Explain how the preparation of a creditors’ reconciliation as an internal
control measure can assist the business in managing its creditors
effectively. Provide TWO points. (4)

1.2.2 Use the table provided to indicate the changes that must be made in
the Creditors’ Control account and Creditors’ List to take into account
the errors and omissions noted. Indicate the increase or decrease
with a (+) or (-) with each amount. (8)

1.2.3 REFER TO INFORMATION B.

An investigation into the transaction relating to the credit purchase
from Star LTD revealed that Thabo Morema (Purchasing Manager)
ordered goods for himself. These goods were not taken into stock.

State TWO internal control measures that the business can use to
prevent similar incidents from happening in the future. (4)

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Accounting Grade 11 4 Limpopo DoE/March 2024
Controlled Test 1 QP
INFORMATION:

Errors and omissions noted:

A. The total of the Creditor’s List was undercast by R900.

B. A credit purchase from Star LTD for R3 720 was not recorded in the
books of the business.

C. Trading stock returned to Maredi LTD, R720, was entered correctly in

the Creditors Allowances Journal, but was posted as R270 in the
Creditors account of Maredi LTD.

D. The creditors' control total in the Cash Payments Journal is R16 400.
The bookkeeper credited this to the Creditors Control account by
mistake.

E. An invoice for R8 870 for stock purchased from Zolani Market on

account has been correctly recorded in the Creditor's Journal but has
not been posted to their account in the Creditors Ledger.

20

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 Accounting Grade 11 5 Limpopo DoE/March 2024
Controlled Test 1 QP

QUESTION 2: FIXED ASSETS (31 Marks; 28 Minutes)

2.1 Define The following concepts:

2.1.1 Accumulated depreciation (2)
2.1.2 Fixed Assets register (2)

2.2 You are provided with information from the records of Mmanare Traders Ltd.
The financial year ended on 30 June 2023.

REQUIRED:
Complete the following accounts in the General Ledger. All accounts must be
balanced or closed off on 30 June 2023.
NOTE: Some amounts are provided in the Answer book.

• Equipment (7)
• Accumulated depreciation on Equipment (8)
• Asset Disposal (8)

INFORMATION:
A On 31 March 2023 old office furniture was sold for cash at a profit of
R2 000. This furniture was bought at a cost of R35 000 on 1 July 2021.

B On 1 April 2023 new furniture to the value of R192 000 was bought on
credit and an EFT was made to pay for an installation of R3 000.

C Depreciation is calculated at 20% p.a on carrying value.

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 Accounting Grade 11 6 Limpopo DoE/March 2024
Controlled Test 1 QP

2.3 PROBLEM-SOLVING

You are provided with information related to Bogopa Traders.

Management wants to replace Truck A or Truck B at the end of the financial year
29 Feb 2024. Which truck should the business trade in at the end of the year?
Provide TWO reasons quoting relevant figures. (4)

INFORMATION:

Balance on 1 March 2023 R

Vehicles R1 860 000

Details of the vehicles are as follows:

Truck A Truck B Truck C
Date purchased 1 March 2019 1 Sept 2021 1 Dec 2023
Cost price R420 000 R560 000 R880 000
Accumulated depreciation R 336 000 R280 000 R0
(1/03/2023)
Distance travelled 115 000 km 105 000 km 70 000 km
Income generated R390 000 R420 000 R500 000
Repairs and maintenance R112 000 R92 000 R18 000
Fuel and oil R185 000 R165 000 R65 000

Depreciation on vehicles is calculated at 20% p.a. on the cost price method.

31

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 Accounting Grade 11 7 Limpopo DoE/March 2024
Controlled Test 1 QP
QUESTION 3: PARTNERSHIPS: LEDGER ACCOUNTS (29 Marks; 26 Minutes)

3.1 GAAP PRINCIPLES

Choose an explanation from Column B that matches the GAAP principle in

Column A. Write only the letter (A-E) next to the question number in the
Answer Book. (4)

COLUMN A COLUMN B
3.1.1 Historical Cost A Income and Expenses must be recorded in
the correct financial period
3.1.2 Business Entity B The assumption that the business is
financially strong enough to continue for the
foreseeable future
3.1.3 Matching C An Asset is recorded at its original cost Price
3.1.4 Going Concern D Financial results are reported in a
conservative manner
E The business transactions are to be treated
separately from the owners personal
transaction

3.2 PARTNERSHIP LEDGER ACCOUNTS

Nape and Mahlako are in partnership trading as NM Traders that sell

sporting goods to the public.

REQUIRED:

3.2.1 Calculate the amount of interest due to each partner on their

capital invested on 29 February 2024. (7)

3.2.2 Complete the following General Ledger accounts, properly

closed off at the end of February 2024:

• Current Account: Mahlako (10)

• Appropriation account (8)

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 Accounting Grade 11 8 Limpopo DoE/March 2024
Controlled Test 1 QP
INFORMATION:

A. Balances on 1 March 2023:

29 Feb 2024 28 Feb 2023
Capital: Nape 500 000
Capital: Mahlako 750 000
Current account: Nape 5 600(DR)
Current account: Mahlako 2 300(CR)
Drawings:Nape 194 000
Drawings: Mahlako 193 500

B Partners’ Capital:
• On 1 September 2023, Nape increased his capital by R150 000.
• On the Same day Mahlako decreased her capital so that it was equal to that
of Nape.
• Interest on Capital is provided for at 10% per annum.

C Partners Salary:

• The partners draw their salary allowance monthly. This is reflected in the
Drawings in information A.
No other drawings were made during the year.
• Nape has drawn his entire salary for the year, but Mahlako has not drawn
her salary for February 2024.
• Both salaries were increased by R1 000 per month on 1 January 2024.

Additional Information:
D Partner Mahlako is entitled to a bonus of 5% of her capital contribution at the end
of the year.

E At the end of the financial year, NM Traders calculated a Net profit of R594 600.

F The remaining profit(loss) is to be shared equally.

29

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Accounting Grade 11 9 Limpopo DoE/March 2024
Controlled Test 1 QP

QUESTION 4: PARTNERSHIPS: PROFIT AND LOSS (20 Marks; 18 Minutes)

4.1 MARABA TRADERS

Use the information given below to complete the Profit and loss account
for the year ended 30 June 2023.

INFORMATION:

A. Extract from Pre-adjustment TRIAL balance on 30 June 2023:

BALANCE ACCOUNT SECTION

Vehicles 680 000

Accumulated depreciation on vehicles 150 000
Fixed deposit (at 9% p.a. at Nedbank) 160 000
Trading stock 302 500
Debtors control 68 880
Provision for bad debts 2 010
Loan: Mtolo Bank 375 000
NOMINAL ACCOUNT SECTION

Sales (including 75% mark-up) 1 737 750

Cost of sales ?
Rent income 81 792
Commission income 20 076
Discount received 7 000
Interest on fixed deposit 8 500
Salaries and wages 138 500
Consumable stores 11 900
Insurance 19 300
Sundry expense 172 225
Bad debts 4 120

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Accounting Grade 11 10 Limpopo DoE/March
2024
Controlled Test 1 QP

B Additional information and adjustments:

(i) Goods returned by a debtor B. Jonson, R3 500 (cost price of R2 000),

were placed back on the shelves. The transaction was not recorded.

(ii) Stocktaking revealed that stock with a cost price of R3 600, was missing
and consumable stores on hand amounted to R2 900.

(iii) Outstanding debts of R2 880 must be written off.

(iv) Provision for bad debts must be adjusted to 5% of debtors.

(v) Insurance of R9 300 was fully recorded. The amount was paid for
the period of 1 May 2023 up to 31 October 2023.

(vi) Rent income was increased by 6% on 1 December 2022. The rent

for June 2023 is still outstanding.

(vii) The bookkeeper recorded R60 000 as an additional fixed deposit

on 1 February 2023.

(viii) The loan statement is as follows:

Balance on 01 July 2022 375 000
Repayment of loan (including interest) 161 250
Balance on 30 June 2023 257 250

(ix) Depreciation for the year amounted to R71 680.

20

TOTAL 100 MARKS

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 Accounting Grade 11 11 Limpopo DoE/March
2024
Controlled Test 1 QP
GRADE 11 ACCOUNTING:
FINANCIAL INDICATOR FORMULA SHEET
Gross profit x 100 Gross profit x 100 Net profit x 100
Sales 1 Cost of sales 1 Sales 1

Operating expenses x 100 Operating profit x 100

Sales 1 Sales 1

Total earnings by partner x 100 Net profit x 100

Partner’s average equity 1 Average owner’ equity 1

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

(Trade and other receivables + Cash and cash equivalents) : Current liabilities

Average debtors x 365 Average creditors x 365

Credit sales 1 Credit purchases 1

Average inventories x 365 or 12 Cost of sales x 365

Cost of sales 1 Average inventories 1

Non-current liabilities : Owners’ equity Total assets: Total liabilities

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