LEJWELEPUTSWA DISTRICT

GRADE 12

MARCH MOCK TEST

ACCOUNTING

2024

MARKS: 100

TIME: 1 hour 40 minutes

This question paper consists of 8 pages,

a formula sheet and a 6-page answer book.

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INSTRUCTIONS AND INFORMATION

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. 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. If you choose to do so, you may use the Financial Indicator Formula Sheet
attached at the end of this question paper. The use of this formula sheet is
NOT compulsory.

8. Write neatly and legibly.

9. Use the information in the table below as a guide when answering the
question paper. Try NOT to deviate from it.

QUESTION TOPIC MARKS MINUTES

1 Financial Statements 60 60
2 CFS & Notes and Ratios 40 40
TOTAL 100 100

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 Accounting February Test 3 LEJWE 2024
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QUESTION 1: FINANCIAL STATEMENTS 60 marks; 48 minutes)

1. STATEMENT OF COMPREHENSIVE INCOME AND STATEMENT OF

FINANCIAL POSITION

FEINT PPE LTD

Refer to the information from the records of FEINT PPE Limited for the financial
year ended 28 February 2022.

REQUIRED:
Complete the following for the year ended 28 February 2022.

1.1 Statement of Comprehensive Income (Income Statement). Note that

some information is included in the ANSWER BOOK. (31)

1.2.1 Trade and other receivables. Show ALL workings in brackets. (6)

1.2.2 Equity and Liabilities section of the Statement of Financial Position

(Balance Sheet). Show ALL workings in brackets. (23)

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INFORMATION:

The following balances/totals appeared in the books on 28 February 2022:

Ordinary shares capital ?
Retained income (28 February 2022) 468 000
Mortgage Loan: Best Bank ?
Trading Stock 370 870
Debtors’ control 442 500
Creditors’ control 203 100
Provision for bad debts (1 March 2021) 2 370
SARS Income Tax (provisional payments) 323 888
Deposit from tenant 12 000
Sales ?
Cost of sales ?
Rent income 130 200
Audit fees 25 000
Insurance 103 500
Sundry expenses ?
Dividends on ordinary shares 340 000

Adjustments and additional information:

A Feint PPE Ltd operates on a 60% mark-up policy on all sales. Last year’s
sales amounted to R6 500 000. Feint PPE Ltd is pleased to announce a 20%
increase in sales for the year ending February 2022. There were no sales
returns for the year.

B According to a physical stocktaking, trading stock on hand amounted to

R358 240.

C A debtor’s account with a credit balance of R3 400 must be transferred to his

account in the creditors’ ledger.

D Decrease the provision for bad debts by R230.

E A vacant storeroom was rented to a tenant on 1 March 2021. On 1 December

2021, the rent was decreased by 7.5%. Provide for the outstanding rent for
February 2022.

F Feint PPE Ltd paid a 40% deposit on their audit fees for the year. The
balance will be settled on 5 March 2022.

G An insurance policy was taken out on 1 August 2021 at R11 500 per month

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H The loan statement from Best Bank reflects the following:

BEST BANK LOAN STATEMENT ON 28 FEBRUARY 2022
Balance at the beginning of the financial year R1 250 000
Fixed monthly repayments including interest 45 200
Interest expense (capitalised) 220 500

 Interest for the next financial year is expected to be R 150 000.

 Part of the loan will be repaid in the next financial year

I Sundry expenses is the missing figure in the income statement.

J The income tax which amounted to R340 088 was calculated at a rate of 28%
of the net profit.

K Shares and Dividends :

 The authorised ordinary share capital consists of 800 000 shares, of which
60% was in issue.
 Total dividends for the year amounted to R445 600.

L The following financial indicators were calculated on 28 February 2022.

Operating profit on sales is 15%.

Net asset value per share is 720 cents.

60

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QUESTION 2: FINANCIAL INDICATORS, SHARE CAPITAL, RETAINED NOTE, AND CASH

FLOW CALCULATIONS (40 marks; 30 minutes)

REQUIRED:

2.1 Calculate the following financial indicators on 28 February 2022.

2.1.1 Acid-test ratio (4)

2.1.2 Current ratio (3)

2.1.3 Debt equity ratio (3)

2.2 2.2.1 Complete the Ordinary Share Capital Note on 28 February 2022. (3)

2.2.2 Complete the Retained Income Note on 28 February 2022. (5)

2.3 Calculate the following:

2.3.1 Change in receivables (indicate if it is an inflow or outflow of cash) (5)

2.3.2 Income tax paid (5)

2.3.3 Fixed assets purchased (4)

2.4 Complete the following sections of the Cash Flow Statement.

2.4.1 Cash effects of financing activities (7)

2.4.2 Net change in cash and cash equivalents (3)

INFORMATION:

A. Extract from the Statement of Comprehensive Income for the year ended
28 February 2022:
Sales R3 500 000
Depreciation 810 700
Profit before interest expense 1 726 000
Net profit before tax 1 600 000

B. Income tax was calculated at 30% for the current financial year

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C. Extract from the Statement of Financial Position on 28 February:

2022 2021
Fixed assets (carrying value) 7 296 200 6 117 800
Fixed deposit ? ?
Current assets 1 536 500 1 461 200
Inventories 671 000 590 000
Trade debtors 829 000 796 200
Prepaid expenses 33 000 0
SARS: Income tax 0 13 800
Bank 0 61 200
Petty cash 3 500 0

Ordinary shareholders equity 7 134 500 5 520 000

Ordinary share capital 6 240 000 5 100 000
Retained income 894 500 420 000
Non-current liabilities 1 050 000 1 400 000
Current liabilities 1 048 200 959 000
Trade creditors 700 700 777 000
SARS: Income tax 28 600 0
Shareholders for dividends 292 500 182 000
Bank overdraft 26 400 0

D. No fixed assets were sold but there were additions to fixed assets during the
financial year.

E. Share capital and dividends:

1 March 2021 1 700 000 shares were in issue.

30 August 2021 Interim dividend paid.
31 December 2021 R1 620 000 received for additional shares issued.
27 February 2022 150 000 shares repurchased at 20c above the average
share price. These shares do not qualify for final
dividends.
28 February 2022 A final dividend of 15 cents per share declared.

40

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 Accounting February Test 8 LEJWE 2024
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GRADE 12 ACCOUNTING FINANCIAL INDICATOR FORMULA SHEET

Gross profit x 100 Gross profit x 100

Sales 1 Cost of sales 1

Net profit before tax x 100 Net profit after tax x 100
Sales 1 Sales 1

Operating expenses x 100 Operating profit x 100

Sales 1 Sales 1

Total assets : Total liabilities Current assets : Current liabilities

(Current assets – Inventories) : Current liabilities Non-current liabilities : Shareholders' equity

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

Average trading stock x 365 Cost of sales

Cost of sales 1 trading stock

Average debtors x 365 Average creditors x 365

Credit sales 1 Cost of sales 1

Net income after tax x 100

Net income after tax x 100 Number of issued shares 1
Average shareholders' equity 1
(*See note below)

Net income before tax + Interest on loans x 100

Average shareholders' equity + Average non-current liabilities 1

Shareholders' equity x 100 Dividends for the year x 100

Number of issued shares 1 Number of issued shares 1

Interim dividends x 100 Final dividends x 100

Number of issued shares 1 Number of issued shares 1

Dividends per share x 100 Dividends for the year x 100

Earnings per share 1 Net income after tax 1

Total fixed costs .

Selling price per unit – Variable costs per unit

NOTE:
* In this case, if there is a change in the number of issued shares during a financial year, the
weighted-average number of shares is used in practice.

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