NATIONAL CERTIFICATE (VOCATIONAL) APPLIED ACCOUNTING

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APPLIED ACCOUNTING (Second Paper)

NQF LEVEL 4

NOVEMBER EXAMINATION

(3011004)

12 November 2014 (X-Paper) 09:00–12:00

A nonprogrammable calculator may be used.

This question paper consists of 19 pages, 1 addendum and 3 answer sheets.

NATIONAL CERTIFICATE (VOCATIONAL)

(3011004) -2- NC200(E)(N12)V


TIME: 3 HOURS

MARKS: 200

INSTRUCTIONS AND INFORMATION 1. 2. 3. 4. 5. 6. 7. 8.

Answer ALL the questions. Answer SECTION A and QUESTION 3.4 (SECTION C) on the ANSWER SHEET provided. Use appropriate accounting software for SECTION B and SECTION C. A separate set of books is used for SECTION B and SECTION C. Read ALL the questions carefully. Use the table below to guide you on how much time to spend answering each question. After printing, arrange all your printouts in the order stipulated in this question paper. Marks will be deducted if this instruction is not followed. Write neatly and legibly.

QUESTIONS TOPICS MARKS RECOMMENDED

TIME GUIDE

SECTION A

1 Short theoretical questions 20 20 minutes

SECTION B

2 Practical on accounting software

110 1 hour 40 min

SECTION C

3 Practical on accounting software

70 1 hour

TOTAL 200 3 hours

(3011004) -3- NC200(E)(N12)V


SECTION A QUESTION 1 1.1 Complete the following sentences by choosing the correct word(s) within

brackets. Write only the word(s) next to the question number (1.1.1–1.1.10) on the ANSWER SHEET.

1.1.1 (Trade discount/Cash discount) is a reduction in the purchase price

when goods are purchased. This type of discount is indicated on the invoice but is not included in the double-entry records.

1.1.2 Service fees on the bank statement will be recorded in the cash

(receipts/payments) journal.

1.1.3 Interest charged on overdue accounts is done once all the journals

and documents have been (processed/updated) for the month.

1.1.4 Using a computerised accounting system, information can be

accessed in a matter of minutes. This is considered to be (an advantage/a disadvantage) to the business.

1.1.5 The (duplicate receipt/deposit slip) number is used as the

reference in the cash receipts journal.

1.1.6 When payment for packing material is recorded in the petty cash

payments journal, VAT is (charged/not charged).

1.1.7 To complete a VAT201 form, the (tax type report/VAT account in

the general ledger) needs to be printed.

1.1.8 Adjustments are done (monthly/yearly) in a computerised

accounting system.

1.1.9 Recording of the take on (rand values/quantities) of inventory is

done in the inventory journal.

1.1.10 The suppliers opening balances are broken down into different

(periods/invoices) in an age analysis. (10 × 1)

(10)

(3011004) -4- NC200(E)(N12)V


1.2 Determine whether the following transactions will be classified as input VAT,

output VAT or if no VAT is applied. Write only INPUT, OUTPUT or NO VAT next to the question number (1.2.1–1.2.7) on the ANSWER SHEET.

1.2.1 Payment of insurance 1.2.2 Making a cash sale 1.2.3 Writing off depreciation 1.2.4 Writing off a customer's debt as irrecoverable 1.2.5 Expenses for end of year staff function 1.2.6 Receiving commission 1.2.7 Interest received from outstanding debt (7 × 1) (7) 1.3 Calculate the selling price for a flat screen TV if the cost price is R5 890 and

the mark-up is 175% on the cost price.

(3) [20]

TOTAL SECTION A: 20

(3011004) -5- NC200(E)(N12)V


SECTION B QUESTION 2 INSTRUCTIONS 1. 2. 3. 4. 5.

Open the account system of Blue Mango (BLUE), which has already been loaded on your computer. Select SETUP. Select COMPANY PARAMETERS. Select COMPANY DETAILS, select the Company name section and click on 'Educational Number'. Press CTRL+SHIFT+T and insert your EXAMINATION NUMBER in the block that appears.

Blue Mango has been using accounting software to record all their transactions. The accountant, however, is on maternity leave and the owner, Mr L. Packery, has approached you to do the processing for October 2014.

The following setup has ALREADY BEEN CREATED in the books of Blue Mango: (a) ENTRY TYPES

NUMBER ENTRY TYPE

01 Cash receipts journal

02 Cash payments journal

03 General journal

04 Customers' journal

05 Suppliers' journal

06 Customers' allowances journal

07 Suppliers' allowances journal

08 Petty cash receipts journal

09 Petty cash payments journal

10 Bad debts journal

11 Interest charged journal

12 Stock journal

(3011004) -6- NC200(E)(N12)V


(b) PERIODS Blue Mango's financial year runs from 1 June 2014 to 31 May 2015. October

2014 is the 5th period.

(c) VALUE ADDED TAX (VAT) VAT will be captured according to the invoice basis. Refer to the attached

ADDENDUM 1 concerning the admissible deductions with regard to INPUT TAX.

(d) CUSTOMERS Mr Packery has only sold for cash in the past, but has decided that as from

October he will also sell on credit.

(e) SUPPLIERS

SUPPLIER CODE SUPPLIER BALANCE ON 1 OCTOBER 2014

S001 Hair Zone R24 000,00

S002 Head Rocks R12 000,00

S003 Be Gorgeous R8 900,00

(f) INVENTORY Inventory is marked up at 120% on the cost price.

INVENTORY CODE INVENTORY ITEM

CCI01 Cordless curling iron

CFI02 Ceramic flat iron

CI03 133 mm curling iron

CIS04 4 in 1 curling iron set

FSD05 Freestanding dryer

HD06 Hood dryer

HS07 Hair steamer

PC08 Professional clippers

PHD09 Professional 1 800 W hairdryer

PHD10 Professional 2 200 W hairdryer

UD11 Universal diffuser

(3011004) -7- NC200(E)(N12)V


(g) TERM CODES • 6% discount within 30 days

• 4% discount within 30 days

(h) TAKE ON BALANCES Take on balances have already been processed. REQUIRED:

• Use the source documents and information provided below to record the transactions in the appropriate journals and generate documents in period 5 (October 2014) in the books of Blue Mango.

• Continue to use the account structure for the general ledger that has been set up. If there is NO account to enter a transaction into, such an account must be created.

• Print all the documents and journals after processing. When printing journals, select 'print with contras'.

• Update the documents and journals.

• See page 14 for a full list of the printouts to be handed in for marking. Hand in the printouts in the same order as on page 14. FIVE marks will be deducted if printouts are not handed in in the correct order as required by the question paper.

(3011004) -8- NC200(E)(N12)V


CREDIT PURCHASES OF INVENTORY

Tax Invoice BE643

VAT NO: 4840199501

1137 Burnett Street Hatfiled

0083

QTY DESCRIPTION UNIT PRCE TOTAL

20 Professional clippers R805,00 R16 100,00

5 Hair steamer R172,73 R863,65

10 Universal diffuser R239,09 R2 390,90

7 4 in 1 curling iron set R555,00 R3 885,00

Subtotal R23 239,55

Discount R1 161,97

14% VAT R3 090,87

Total due R25 168,45

TO: Blue Mango 110 Lancaster Ave Randburg

TERMS:

5% trade discount 4% discount within 30 days

Be Gorgeous

11/10/14

(3011004) -9- NC200(E)(N12)V


• Using code MPF12, create the new inventory item 'Mini portable flat iron'.

DATE DESCRIPTION QUANTITY AMOUNT

18/10/14 Ceramic flat iron @ R681,82 5 R3 409,10

Hood dryer @ R603,00 6 R3 618,00

Mini portable flat iron @ R340,91 30 R10 227,30

133 mm curling iron @ R818,18 5 R4 040,90

SUBTOTAL R21 345,30

4% Discount R853,81

AMOUNT EXCL VAT R20 491,49

14% VAT R2 868,81

TOTAL INCLUSIVE VAT R23 360,30

TERMS • 6% discount within 30 days • 4% trade discount

TAX INVOICE

Invoice Number: IN7968

To: Blue Mango 110 Lancaster Ave Randburg

VAT REG NO: 4420116552 : 031 271 8228

HAIR ZONE

(3011004) -10- NC200(E)(N12)V



22/10/14

ITEM UNIT

PRICE QUANTITY TOTAL

Professional 1 800 W hairdryer 204,55 5 1 022,75

Professional 2 200 W hairdryer 250,00 8 2 000,00

Terms: 4% discount within 30 days

SUBTOTAL 3 022,75

14% VAT 423,19

TOTAL 3 445,94

TAX INVOICE

HR641

VAT NO: 4420106777 TEL: 0861 777 000 FAX: 0861 777 000

Head Rocks

(3011004) -11- NC200(E)(N12)V


CREDIT RETURNS OF INVENTORY BY BLUE MANGO

DATE SUPPLIER DETAILS

15/10/14 Be Gorgeous 2 x Professional clippers – Motor faulty

1 x Universal diffuser – Damaged plug

Tax Invoice BE723

VAT NO: 4840199501

1137 Burnett Street Hatfiled

0083

QTY DESCRIPTION UNIT PRCE TOTAL

5 Freestanding dryer R505,45 R2 527,25

Subtotal R2 527,25

Discount R252,72

14% VAT R318,43

Total due R2 592,96


TERMS:

10% trade discount

Be Gorgeous

30/10/14

(3011004) -12- NC200(E)(N12)V


CREDIT AND CASH SALES

• This is the first month that credit sales are taking place.

• Mr Packery approved the credit applications of 'By the Blade' and 'Mane Attraction'. The coding will start with 'C01'. Create the two customers with the information provided below.

• All tax invoices must have the following message: 'Great Christmas specials in November'.

• CZ99 is the cash sales account which is used for cash transactions.

• Insert the names of all cash customers on the document generated to record the cash sale.

• All cash customers receive a 6% cash discount.

DATE CUSTOMER ITEM PURCHASED EARLY PAYMENT TERM

03/10/14

By the Blade 3 Newton Road Witbank 1035

Contact: Jose Tel: 0846163461 Credit limit: R30 000,00

5

2

2

5

x

x

x

x

Cordless curling iron

Hood dryer

Professional 2 200 W hairdryer

133 mm curling iron

2% trade discount

6% discount within 30 days

13/10/14 Cash Sales

(Crisp Edge)

10

13

6

5

x

x

x

x

Mini portable flat iron

4 in 1 curling iron set

Universal diffuser

Hair steamer

17/10/14

Mane Attraction 8 Stuart Street Balfour 2410

Contact: Lily Tel: 017-773-1728 Credit limit: R25 000,00

2

5

x

x

Professional clippers

Professional 2 200 W hairdryer

6% trade discount

4% discount within 30 days

CREDIT RETURNS OF INVENTORY TO BLUE MANGO

DATE CUSTOMER DETAILS

08/10/14 By the Blade 1 x Professional 2 200 W hairdryer – Broken nozzle

(3011004) -13- NC200(E)(N12)V


CASH REGISTER ROLLS

13/10/14

Cash Register Roll

CRR23

R30 171,97

CASH RECEIPTS

BLUE MANGO CASH RECEIPT

Cash receipt number: 43 Date: 20/10/14

Cash received from: Mr Packery

In payment of: Capital received

Amount: Fifty thousand rand only R50 000,00

Received by: Bongo Malgas


Cash receipt number: 44 Date: 25/10/14

Cash received from: Hair Affair

In payment of: Commission received*

Amount: Twenty five thousand rand only R25 000,00


*Create an account for commission received.

(3011004) -14- NC200(E)(N12)V


CASH DEPOSITS DETAILS

Blue Mango made the following deposits during the month of October 2014:

DATE OF DEPOSIT DEPOSIT REFERENCE NUMBER

13/10/14 DEP25

25/10/14 DEP26

30/10/14 DEP27

CASH PAYMENTS

213 214

Date: 01/10/14 Date: 03/10/14

To: Head Rocks To: Back up Insurance

For:

Settlement of opening

balance

For:

Octobers’ insurance

premium

Amount: R11 800,00 Amount: R 1 120,00

215 216

Date: 15/10/14 Date: 22/10/14

To: SARS To: Hair Zone

For:

Payment of VAT For:

Payment on account

Amount: R11 200,00 Amount: R3 000,00

217

Date: 28/10/14

To: P Preston

For:

Salary

Amount: R16 324,00


Cash Receipt Number: 45 Date: 30/10/14

Cash received from: By the Blade

In payment of: Settlement of account

Amount: ? ?


(3011004) -15- NC200(E)(N12)V


PETTY CASH

BLUE MANGO

PETTY CASH VOUCHER

No.: 06

Date: 12/10/14

For: Pick ‘n Pay – Coffee for staff use

Amount: R89,00

Approved by: Bongo Malgas

BLUE MANGO

PETTY CASH VOUCHER

No.: 07

Date: 26/10/14

For: Pen Inc. – paper clips

Amount: R38,50

Approved by: Bongo Malgas

ADDITIONAL PRINTOUTS REQUIRED:

• Print a customer listing of all the new customers.

• Print a general ledger master listing ONLY for the ‘other income’ financial category.

The following printouts must be generated and handed in for marking in the correct order:

2.1 Suppliers' invoice (36)

2.2 Return and debit note/s (9)

2.3 Tax invoices (31)

2.4 Credit note/s (6)

2.5 Cash receipts journal (8)

2.6 Cash payments journal (8)

2.7 Petty cash payments journal (2)

2.8 Customer listing (7)

2.9 General ledger master listing for 'other income' financial category (3) [110]

TOTAL SECTION B: 110

(3011004) -16- NC200(E)(N12)V


SECTION C QUESTION 3 INSTRUCTIONS 1. Open the set of accounts for Office24 (OFFICE), which has already been

loaded on your computer.

2. Select SETUP. 3. Select COMPANY PARAMETERS. 4. Select COMPANY DETAILS, select the company name section and click on

'Educational Number'.

5. Press CTRL+SHIFT+T and insert your EXAMINATION NUMBER in the block

that appears.

REQUIRED:

• Use the information provided below to complete the bank reconciliation process and the month end adjustments for July 2014, period 12, in the books of Office24.

• If there is NO account to enter a transaction into, such an account must be created. Continue to use the account structure for the general ledger that has been set up.

• Print all the journals after processing. When printing journals, select 'print with contras'.

• Update the journals.

• See page 18 for a full list of the printouts to be handed in for marking. Hand in the printouts in the same order as on page 18. FIVE marks will be deducted if printouts are not handed in in the correct order as required by the question paper.

3.1 Complete and print the following:

3.1.1 Cash receipts journal with the additional entries (after the bank reconciliation).

(8)

3.1.2 Cash payments journal with the additional entries (after the bank reconciliation).

(16)

3.1.3 Bank reconciliation statement (after following the reconciliation process).

(3011004) -17- NC200(E)(N12)V


• Create an account for bank charges and record all bank charges.

• DD0807 on 08/07/2014 is a direct deposit by the owner for capital contribution.

• DO2107 is a debit order for the municipal water and electricity account. However, an amount of R1 200,00 is for rates.

• Create an account for interest on current account which was received on 30 July 2014.

(8)

East Bank

Bank Statement Cheque Account 1092488132

DATE DETAILS DEBIT(-) CREDIT(+) BALANCE

01/07/2014 Balance brought forward 42 300,00

05/07/2014 Deposit DS30 23 894.64 66 194,64

08/07/2014 DD0807 50 000.00 116 194,64

08/07/2014 Cash charge 255,08 115 939,56

14/07/2014 Cheque 202 1 300,00 114 639,56

15/07/2014 Cheque 204 7 500,00 107 139,56

17/07/2014 New card issued 105,00 107 034,56

19/07/2014 Deposit DS31 18 400.00 125 434,56

20/07/2014 Cheque 205 1 500.00 123 934,56

21/07/2014 Deposit DS32 11 961.86 135 896,42

21/07/2014 Cash charge 161,49 135 734,93

21/07/2014 Cheque 206 7 000,00 128 734,93

22/07/2014 Deposit DS33 4 628.71 133 363,64

25/07/2014 DO2107 7 298,00 126 065,64

27/07/2014 Cheque 201 26 000,00 100 065,64

30/07/2014 ICA 386.00 100 451,64

30/07/2014 Monthly fee 179,00 100 272,64

31/07/2014 Cheque 208 3 000,00 97 272,64

31/07/2014 Cheque 210 5 000,00 92 272,64

1. TO: Office24 402 Bellair Road Randburg

Date: 31 July 2014

Statement no: 25

(3011004) -18- NC200(E)(N12)V


3.2 The following month end adjustments need to be captured for July 2014. The

last note number was NOTE 7.

Make the following printouts and hand them in for marking: 3.2.1 Bad debts journal (7) 3.2.2 General journal (6) 3.3 ADDITIONAL PRINTOUTS REQUIRED: 3.3.1 Detailed customer ledger for all the customers for July 2014. (10) 3.3.2 Income statement for July 2014. (5)

Office24

Write JET Suppliers off as irrecoverable.

JOURNAL VOUCHER 12

DATE: 31/07/14

Office24 An amount of R1 230,00 was posted to the petrol account during July 2014. However this amount was actually for the owner’s personal use.

JOURNAL VOUCHER 13

DATE: 31/07/14

Office24

Charge interest on overdue accounts.

JOURNAL VOUCHER 14

DATE: 31/07/14

(3011004) -19- NC200(E)(N12)V


NOTE: The printouts to be handed in, in the following order:

• Cash receipts journal (after the bank reconciliation)

• Cash payments journal (after the bank reconciliation)

• Bank reconciliation

• Bad debts journal

• General journal

• Customer detailed ledger

• Income statement

3.4 VALUE-ADDED TAX (VAT) Use the following information to complete ONLY the calculation of input and output tax of the VAT201 form for Office24. TAX TYPE REPORT FOR JUNE 2014

OUTPUT TAX INPUT TAX NET TAX

TAX INCLUSIVE TAX INCLUSIVE TAX INCLUSIVE

Standard -24561,40 -200000,00 9087,72 74000,00 -15473,68 -126000,00

Capital 0,00 0,00 4298,25 35000,00 4298,25 35000,00

Zero rated 0,00 -2 200,00 0,00 0,00 0,00 -2 200,00

VAT exempt 0,00 -10 000,00 0,00 0,00 0,00 -10 000,00

Bad debts 0,00 0,00 675,44 5 500,00 675,44 -4 500,00

-24 561,40 -212 200,00 14 061,41 114 500,00 -10 500,00 -107 700,00

(10)

[70] TOTAL SECTION C: 70 GRAND TOTAL: 200

(3011004) NC200(E)(N12)V


ADDENDUM 1 Admissible deductions with regard to input tax

Is VAT charged? Input VAT deductible

YES NO YES NO

Accounting fees X X

Advertisements X X

Bank charges

Cash charge X X

Monthly fee X X

New card X X

Commission received X X

Consumables X X

Discount allowed X X

Discount received X X

Insurance X X

Interest on cheque account X

Interest on mortgage bond X

Interest received X

Motor vehicle expense X X

Petrol X

Rates X

Refreshments X X

Rent received X X

Salaries and wages X

Staff expenses X

Stationery X X

Telephone X X

Water and electricity X X

(3011004) -1- NC200(E)(N12)V


ANSWER SHEET EXAMINATION NUMBER:

SECTION A

QUESTION 1

1.1 1.1.1

1.1.2

1.1.3

1.1.4

1.1.5

1.1.6

1.1.7

1.1.8

1.1.9

1.1.10

(10 × 1) (10) 1.2 1.2.1

1.2.2

1.2.3

1.2.4

1.2.5

1.2.6

1.2.7

(7 × 1) (7) 1.3

(3)

[20]

TOTAL SECTION A: 20

(03011004) -2- N000(E)(A00)Q



QUESTION 3.4

(3011004) -2- NC200(E)(N12)V


Copyright reserved

(10)

[70] TOTAL SECTION C: 70


(3011004) -3- NC200(E)(N12)V

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NATIONAL CERTIFICATE (VOCATIONAL) APPLIED ACCOUNTING