ACCOUNTI

NG
GRADE11

ANSWERBOOK
2 Account
ing 2020Gr
11

QUESTI
ON3 (
85mar
ks;
50mi
nut
es)

PARTNERSHI
PFI
NANCI
ALSTATEMENTS

3.
1 Chooseanexpl
anat
ionf
rom COLUMNBt
hatmat
chesaconcepti
nCOLUMNA

COLUMNA COLUMNB
3.
1.1
3.
1.2
3.
1.3
3.
1.4
3.
1.5 10

3.
2.1 CURRENTACCOUNTS MOROWA RANI Tot
al
Netpr
ofi
tperI
ncomeSt
atement 1 
601060
Par
tner
s’sal
ari
es
I
nter
estoncapi
tal
Par
tner
s’bonuses
Pr
imar
ydi
str
ibut
ionofpr
ofi
t 1 
280000
Fi
nal
dist
ri
but
ionofpr
ofi
t 321060
Dr
awi
ngsf
ort
hey
ear
Undr
awnpr
ofi
tsf
ort
hey
ear
Bal
anceatbegi
nni
ngofy
ear
Bal
anceatendofy
ear 719060 20

3.
2.2 TRADE&OTHERPAYABLES

22
302010
3 Account
ing 2020Gr
11

3.
3
QUEENTRADERS
BALANCESHEETON28FEBRUARY2015
R
ASSETS
Non-
cur
rentasset
s
Tangi
bleasset
s
Fi
nanci
alasset
s
Cur
rentasset
s
I
nvent
ori
es
Tr
adeandot
herr
ecei
vabl
es

Cashandcashequi
val
ent
s
TOTALASSETS

EQUI
TYANDLI
ABI
LITI
ES
Owner
s’equi
ty
Capi
tal
Cur
rentaccount
s
Non-
cur
rentl
i
abi
l
iti
es
Loan:
MoneyBank
Cur
rentl
i
abi
l
iti
es
Tr
adeandot
herpay
abl
es 9
Bankov
erdr
aft
Shor
tter
mloans/I
nst
almentonl
oan
TOTALEQUI
TYANDLI
ABI
LITI
ES 33

85
4 Account
ing 2020Gr
11

QUESTI
ON4 (
50mar
ks;
30mi
nut
es)

PARTNERSHI
P:RATI
OANALYSI
SANDI
NTERPRETATI
ON

4.
1 FIXEDASSETS
4.
1. NOTESTOFINANCI
ALSTATEMENTSOFRAZZLEDAZZLETRADERS
1 FI
XEDASSETS
Landand Vehi
cles Equi
pment
bui
ldings
Carr
yingval
uebegi
nni
ngoft
he 402931 160000
year
Costpri
ce 402931 1080000 450000
Accumul
ateddepr
eci
ati
on (
180000)

Mov
ement
s
Addi
ti
ons
Di
sposal
s
Depr
eci
ati
on

Carr
yingval
ueatt
heendoft
he 265048
year
Costpri
ce 470000
Accumul
ateddepr
eci
ati
on (
204952)
22

4.
1. GENERALLEDGEROFORLANDOTRADERS
2

Dr
. ASSETDI
SPOSAL Cr
.

8
5 Account
ing 2020Gr
11

4.
1 Cal
cul
atethefol
l
owi
ngf
inanci
ali
ndi
cat
ors:
4.
1.1 Debt
/Equi
tyRati
o (
3)

4.
1.2 Per
cent
ager
etur
near
nedbyRazzl
e (
5)

4.
2 DoyouagreewithRazzleopini
onthatthebusinesshasasoundli
qui
dit
y
posi
ti
on?Ment
ionTWOfinanci
ali
ndi
cator
stosupportyouranswer
.

4.
3 OntheotherhandDazzl
eisnotsati
sfi
edwi
thherr
etur
nonequi
ty.Quot
e
fi
gur
est
osupportwhyshefeel
sthi
sway.

4.
4 Twodi
ff
erentway
stof
inancet
heext
ensi
onofbui
l
dings

4
6 Account
ing 2020Gr
11

50

QUESTI
ON5 (
30mar
ks;
18mi
nut
es)
7 Account
ing 2020Gr
11

MANUFACTURI
NG LEDGERACCOUNTS

5.
1 THREEFI
XEDCOSTS

5.
2
GENERALLEDGEROFSTUDI
OMANUFACTURERS
BALANCESHEETACCOUNTSECTI
ON
Dr
. RawMat
eri
alsSt
ock Cr
.
2014 2015
Mar 01 Bal
ance b/
d 321000 Feb 28
2015
Feb 28

Bal
ance c/
d 256500
1 
591200 1 
591200

2015
Mar 01 Bal
ance b/
d 256500

10

Dr
. Wor
k–i
n-Pr
ocessSt
ock Cr
.
2014 2015
Mar 01 Bal
ance b/
d 77400 Feb 28
2015
Feb 28 Bal
ance c/
d 259242

Fact
oryOv
erhead
Cost
2 
659242 2 
659242

2015
Mar 01 Bal
ance b/
d 259242

8
8 Account
ing 2020Gr
11

5.
3 Br
eak-
evenpoi
nt

30
9 Account
ing 2020Gr
11

QUESTI
ON3. 1
3.
1.1 Youarerequi
redt omatchtheexampleint
helef
t-
handcol
umnwitht
heappr opr
iat
e
concepti
nther i
ght-
handcolumn
.
[
BusinessEnti
ty,Hist
ori
calCost
,Pr
udence,
Matchi
ng,
Materi
ali
ty,
Goingconcer
n]

Exampl
esofy
ear
-endadj
ust
ment
s Appr
opri
atepri
nci
ple
appl
ied
A Tradingst ocki sr eflect edatR23500i nt hefinancial
statement soft hepar tner shi
p.Thet r
adi ngst ockwi l
l sel
l
atR35250i nt henextf inancialyear
B Post agest ampspur chasedf orR250i sr ecordedas
Sundr yExpenses.
C Oneoft hepar tnersr ecei vesR1,5mi ll
ionaspar tofhis
i
nher itance.Theamounti snotr ecordedi nthebookso
thepar t
nership
D Thepar tnershiphaspur chaseddent alequi pmentf orR1,7
mi l
l
ion.Technol ogyi schangi ngv ir
tuallyever yday.The
equipmentwi l
l beusel esst oany oneint hef uture.
Ther eforethepar tner shipdeci destodepr eciateitoveri t
s
useful li
fet i
meof8y ear s.
E TheI ncomeSt atementoft hepar t
nershipwi llrefl
ectt he
tel
ephoneaccountwi tht heamountpai df orthe11
mont hsandt heaccr ual amount .
F LandandBui ldingi sr ecor dedint heBal anceSheetf or
R300000f ort hepast5y ears.Itwasr ecentlyappr aised
atR2, 3mi ll
ion.

10

3.1.
2 Gener
alLedgerofWest
ri
dgeTrader
s
Dr Appr
opri
ati
onAccount F3 Cr
2015 Sal
ary
:West
28
Feb
Sal
ary
:Ri
dge

I
nter
estoncapi
tal

Par
tner
sbonus

Cur
renta/
c:West

20
10 Account
ing 2020Gr
11

3.
1.3 Westsuggeststhattheint
erestoncapit
alof12%p.a.inthepart
nershi
pagreementbereducedto
8%p. a.i
nli
newi t
hcur r
enti
nterestr
atesoff
eredbycommer ci
albanks.Howwouldthi
sdecision
af
fectthepart
nersiftheyhadtoshareinaremaini
ngloss?

3.
2 RM Tr
ader
s:Ext
ractofBal
anceSheeton28Febr
uar
y2015

Not
e
EQUI
TYANDLI
ABI
LITI
ES
Par
tner
s’Equi
ty
Capi
tal
7

Cur
rentAccount
s
8

Non-
cur
rentl
i
abi
l
iti
es

Loan:
Chi
ngBank

Cur
rentl
i
abi
l
iti
es
BankOv
erdr
aft

Tr
adeandot
herpay
abl
es
[
45 350 9

Cur
rentpor
ti
onofl
oan

TOTALEQUI
TYANDLI
ABI
LITI
ES

20

52

QUESTI
ON4
4.
1 Let
ter

4.
1.1

4.
1.2
11 Account
ing 2020Gr
11

4.
1.3

4.
1.4

4.
1.5

10

4.
2.1 Commentonwhetherthebusi
nesswasmoreprofi
tablei
n2012thani
n2011.Suppor
tyouranswer
wit
hasui
tabl
efi
nanciali
ndi
cator
.Showyourcal
cul
ation.[Ref
ertoi
nfor
mati
onA]

4.
2.2 Commentonwhethertheownershoul
dbepleasedwit
hhisr
etur
n.Useasui
tabl
efi
nanci
al
i
ndi
catort
osupporty
ouranswer.Showyourcal
cul
ati
on.
[
Refert
oinfor
mati
onA]

10

4.
2.3 Doyouthi
nkt hatthebusi
nesswil
lruni
ntol
i
qui
dit
ypr
obl
ems?Suppor
tyouranswerbyquot
ingt
wo
fi
nanci
ali
ndicator
s.Showcalcul
ati
ons.
[
Refert
oinformationB]
12 Account
ing 2020Gr
11

35

QUESTI
ON5

5.
1.1 Cal
cul
ateDi
rectLabourCost

10

5.
1.2
GENERALLEDGEROFSNUG-FI
TCALCULATORS
BALANCESHEETACCOUNTSECTI
ON
13 Account
ing 2020Gr
11

Dr
. RawMat
eri
alsSt
ock Cr
.

16

Dr
. Wor
k–i
n-Pr
ocessSt
ock Cr
.

14

Dr
. Fi
nishedGoodsSt
ock Cr
.
14 Account
ing 2020Gr
11

9
1.
2
1.
2.1 THREEFI
XEDCOSTS

1.
2.2 Cal
cul
atet
hebr
eakev
env
alueofMEEDManuf
act
urer
s.

1.
2.3 I
nyouropi
nionshoul
dMEEDManuf
act
urer
schanget
othecheapersuppl
i
er?Gi
vet
wo
r
easonsf
oryouranswer
.

70