ACCOUNTING
SCHOOL BASED ASSESSMENT EXEMPLARS - CAPS
GRADE 12
TEACHER'S GUIDE\
TABLE OF CONTENT | |||
CONTENT | PAGE | ||
1 | Introduction | 3 | |
2 | Objectives/Aims of the project | 3 | |
3 | Assessment tasks as outlined by NCS and CAPS | 5 | |
4 | Scope of the project | 6 | |
5 | Quality assurance process followed | 6 | |
6 | Inclusions in this publication | 6 | |
Task A : First Term – Report: Companies This task is suitable for Grade 12 learners from 2014 (CAPS). | |||
Question paper | 7-9 | ||
Answer book | 10-14 | ||
Task B : | |||
Question paper | 15-18 | ||
Answer book | 19-22 | ||
Task C: | |||
Combined question paper and answer book | 23-29 | ||
Resource material | 30-36 | ||
Task D Third Term – Case Study: Cash Budget and Debtors | |||
Question paper | 37-41 | ||
Answer book | 42-46 | ||
Marking Guidelines | 47 | ||
Task A | 48-52 | ||
Task B | 53-55 | ||
Task C | 56-61 | ||
Task D | 62-65 |
1. INTRODUCTION
Assessment is a continuous planned process of identifying, gathering and interpreting information about the performance of learners, using various forms of assessment. It involves four steps: generating and collecting evidence of achievement; evaluating this evidence; recording the findings and using this information to understand and assist in the learner’s development to improve the process of learning and teaching. Assessment should be both informal (assessment for learning) and formal (assessment of learning). In both cases regular feedback should be provided to learners to enhance the learning experience.
School-based assessment (SBA) is a purposeful collection of learners’ work that tells the story of the learners’ efforts, progress or achievement in given area(s). The quality of SBA tasks is integral to learners’ preparation for the final examinations. This book serves as a resource of four exemplar SBA tasks for schools and subject teachers of Accounting. SBA marks are formally recorded by you, the teacher, for progression and certification purposes. The SBA component is compulsory for all learners. Learners who cannot comply with the requirements specified according to the policy may not be eligible to enter for the subject in the final examination.
The formal assessment tasks provide you with a systematic way of evaluation on how well learners are progressing. The book includes tests, a project and a case study. Formal assessment tasks form part of a year-long formal programme of assessment. These tasks should not be taken lightly and learners should be encouraged to submit their best possible efforts for final assessment.
Educators are expected ensure that assessment tasks are relevant to and suitable for the learners being taught. Teachers should adapt the tasks to suit the learners’ level of understanding and they should be context bound; however, they should also take cognisance of the requirements as set out in the Curriculum and Assessment Policy Statement (CAPS) document.
This publication comprises four tasks that address the demands of the Grade 12 Accounting curriculum. It is expected that these tasks will serve as a valuable resource to:
2. THE AIMS AND OBJECTIVES OF THE PROJECT
The tasks focus on the content of the National Curriculum Statement (NCS) effective in 2013, and contain exposure to certain aspects of new content of the Curriculum and Assessment Policy Statement (CAPS) effective from 2014.
The distinctive characteristics of SBA (and its strengths as one relatively small component of a coherent assessment system) have implications for its design and implementation, in particular the nature of the assessment tasks and the role of the teacher standardisation procedures. These implications are summarised as follows:
The project provides exemplar tasks that are aimed at:
3. ASSESSMENT TASKS AS OUTLINED BY THE NCS AND CAPS
The final Grade 12 mark is calculated from the National Senior Certificate (NSC) examination that learners will write (out of 300 marks) plus school-based assessment (out of 100 marks). The curriculum stipulates the following seven formal tasks that comprise school–based assessment in Accounting:
SCHOOL–BASED ASSESSMENT TASKS: NCS AND CAPS
Term | Details | Marks | Converted to |
1st term | Report | 50 marks | 10 marks |
Test | 100 marks | 20 marks | |
2nd term | Project | 50 marks | 20 marks |
Mid-year examination | 300 marks | 20 marks | |
3rd term | Case study | 50 marks | 10 marks |
Trial examination | 300 marks | 20 marks | |
100 marks |
4. SCOPE OF THE PROJECT
Task A | Task B Version (i) | Task B Version (ii) | Task C | Task D | |
Types of task | Written report | Test | Test | Project | Case study |
Compliance with NCS or CAPS | NCS and CAPS | CAPS only | NCS only | NCS and CAPS | NCS and CAPS |
Content covered | Part (a): Report on a listed JSE company | Asset disposal, Income Statement, Balance Sheet and Notes | Asset disposal, Income Statement, Balance Sheet and Notes | Interpretation of published financial statements and audit report | Cash Budget and Debtors Age Analysis |
Tested in examinations | Part (a): NO | YES | YES | YES | YES |
Skills assessed that are similar to skills assessed by examinations | Understanding theory of companies and internal control; Problem–solving | Preparing ledger accounts and financial statements | Preparing ledger accounts and financial statements | Analysis and interpretation of financial information | Analysis and interpretation of financial information; |
Skills assessed that are different to skills assessed by examinations | Research of a listed company | – | – | Dealing with quantity of information in published annual reports | – |
5. QUALITY ASSURANCE PROCESS FOLLOWED (SUBJECT SPECIFIC)
The purpose of this document is to provide both teachers and the learners with a set of benchmarked school based assessment (SBA) tasks. It contains useful information and guidelines in the form of exemplars.
A team of experts comprising teachers and subject advisors from the provinces was appointed by the DBE to develop and compile assessment tasks. This panel of experts spent a period of four days at the DBE developing tasks based on guidelines and policies. Moderation and quality assurance of the tasks were undertaken by national and provincial examiners and moderators. The assessment tasks were further refined by the national internal moderators to ensure that they are in line with the CAPS document.
6. INCLUSIONS IN THIS PUBLICATION
For each assessment task, this publication includes:
QP Task A
NOTE TO TEACHERS: This task is relevant to Grade 12 learners from 2014 (i.e. relevant to CAPS). This task comprises two parts. You may adapt the material to take the needs of your class group into account. For example, you may require them to do Part A on their own and Part B in class. Or you may require the class to do only Part B as a formal report and undertake Part A as an extension task in class on a weekly basis. If you choose to adapt the material in any way, you should ensure that the task comprises 50 marks as per CAPS.
ACCOUNTING GRADE 12: TASK A FIRST TERM ASSESSMENT TASK REPORT ON COMPANIES QUESTION PAPER 50 marks |
THIS TASK CONSISTS OF TWO PARTS:
PART A Report on a public company listed on the JSE. (26)
PART B Internal auditor’s report on procedures and internal controls in a public company (24)
50
PART A Report on a public company listed on the JSE [26 marks]
For this task you will need to use the page in the Business Report in a morning newspaper which lists the public companies that are traded on the Johannesburg Securities Exchange (JSE). You will need access to this re source on a weekly basis for a period of 5 weeks.
A rich aunt has earmarked R200 000 of her funds for investment purposes. She wants to buy shares of a public company listed on the JSE. She requires your advice. Choose a company that is well-known to you from the share page to complete the following report.
NOTE TO TEACHER: Each learner must choose a different company.
REQUIRED
Prepare a one-page report on the company you have chosen.
PREPARATION AND RESEARCH FOR YOUR REPORT
THE REPORT MUST INCLUDE THE FOLLOWING:
PART B Internal auditor’s report on a public company [24 marks]
You have been appointed as the internal auditor of Exotic Clothing Ltd, a new public company which is about to be established. All stock will be bought on credit. They will sell for cash and they will allow customers to buy on credit. It is expected that there will be approximately 1 000 shareholders. The CEO has asked you to prepare a report on certain procedures that should be put in place in the company.
The company currently has four employees in the Accounting department. The CEO is thinking of appointing Tom to manage fixed assets, Maisy to control trading stock, Bheki to control debtors (accounts receivable) and Shamila to control cash resources.
Your report should include:
TOTAL : 50 marks
ACCOUNTING GRADE 12: TASK A FIRST TERM ASSESSMENT TASK: REPORT ON COMPANIES ANSWER BOOK |
THIS TASK CONSISTS OF TWO PARTS:
PART A Report on a public company listed on the JSE.
PART B Internal auditor’s report on procedures and internal controls in a public company.
Name of learner | |
School | |
Class |
MAXIMUM | MARKS ACHIEVED | |
Part A | 26 | |
Part B | 24 | |
TOTAL | 50 |
PART A: REPORT ON INVESTMENT PORTFOLIO OF ________________ (name of aunt)
1.
Name of company: | |
Category on the share page | |
Starting date of the investment in shares | |
Share price on this date | |
Number of shares purchased (in lots of 100) | |
Total value of shares purchased | |
Cash on hand | |
Total value of investment portfolio | R200 000 |
4 |
2.
Share | Number of | Total value of shares | Cash on hand | Total value of investment | |
Week 1 | |||||
Week 2 | |||||
Week 3 | |||||
Week 4 | |||||
Week 5 |
5 |
3.
Graph of share price each week:
|
4 |
4.
Graph of value of investment portfolio each week:
|
4 |
5.
Further information on the company:
|
5 |
6.
Recommendation on further investment in this company, with reasons:
|
4 |
26 |
PART B
Internal auditor’s report on procedures to be implemented for Exotic Clothing Ltd
1.
Procedures to establish the company:
|
4 |
2.
Records that should be kept on each shareholder, together with reasons:
|
4 |
3.
Internal control procedures for fixed assets:
|
4 |
4.
Internal control procedures for trading stock:
|
4 |
5.
Internal control procedures for accounts receivable (debtors):
|
4 |
6.
Internal control procedures for cash collected: :
|
4 |
24 |
Signed: _____________________ (Internal Auditor) Date: ______________
IMPORTANT NOTE TO TEACHERS: The test includes entries relating to the new CAPS curriculum to be implemented in 2014, with regard to shares of no par value and the repurchase of shares. The test was adapted from a previous Grade 12 paper (QUESTION 4 of the 2009 NSC backup paper).
ACCOUNTING GRADE 12: TASK B FIRST TERM TEST QUESTION PAPER |
QP Task B
FINANCIAL STATEMENTS OF A COMPANY (100 marks; 60 minutes)
You are provided with figures from the Pre-Adjustment Trial Balance of Simphiwe Limited. They buy and sell uniforms and also repair uniforms for their customers, for which they charge a fee. These fees are credited to the Fee Income Account in the General Ledger.
By the end of the previous financial year, 30 September 2011, the company had issued 400 000 ordinary shares. These shares were all issued at different times and at different issue prices. Many of the existing shareholders had also bought shares on the JSE at prices negotiated with the sellers of those shares. The company also issued 100 000 new shares on 1 March 2013.
REQUIRED
3.1 Ordinary share capital (13)
3.2 Retained income (15)
INFORMATION
SIMPHIWE LTD
PRE-ADJUSTMENT TRIAL BALANCE ON 30 SEPTEMBER 2012
DEBIT | CREDIT | |
Balance Sheet Accounts Section | R | R |
Ordinary share capital (500 000 shares) | 4 410 000 | |
Retained income (1 October 2011) | 812 650 | |
Loan from Stay Bank | 270 000 | |
Land and buildings at cost | 4 884 000 | |
Vehicles at cost | 660 000 | |
Equipment at cost | 570 000 | |
Accumulated depreciation on vehicles (1 Oct 2011) | 123 000 | |
Accumulated depreciation on equipment (1 Oct 2011) | 111 000 | |
Debtors’ control | 109 800 | |
Creditors’ control | 53 880 | |
Trading stock | 1 398 600 | |
Bank | 940 500 | |
Petty cash | 6 600 | |
SARS – Income tax | 390 500 | |
Provision for bad debts | 4 320 |
Nominal Accounts Section | R | R |
Sales | 8 160 000 | |
Cost of sales | 3 930 000 | |
Debtors’ allowances | 18 600 | |
Salaries and wages | 486 000 | |
Discount allowed | 2 710 | |
Fee income | 314 250 | |
Rent income | 168 000 | |
Insurance | 33 000 | |
Sundry expenses | 117 750 | |
Directors’ fees | 870 000 | |
Audit fees | 161 100 | |
Consumable stores | 75 600 | |
Interest income | 7 500 | |
Dividends on ordinary shares (interim) | 264 000 |
ADJUSTMENTS AND ADDITIONAL INFORMATION
SIMPHIWE LTD CREDIT NOTE 4533 Credit: Supaclean Ltd | |||
Unit price | Total | ||
48 | Uniforms returned | R600 | R28 800 |
Reduction on fee charged for repair of uniforms | R2 250 | ||
R31 050 |
Balance at beginning of financial year | R450 000 |
Repayments during the year | R234 000 |
Interest capitalised | R ? |
Balance at end of financial year | R270 000 |
FIXED ASSETS REGISTER | Page 12 | ||
Item: VYE Computer | Ledger Account: Equipment | ||
Data Purchased: 1 April 2006 | Cost Price: R66 000 | ||
Depreciation Policy: 10% p.a. on cost price | |||
Date | Depreciation Calculations | Current Depreciation | Accumulated Depreciation |
30 Sep 2009 | R66 000 × 10% × 6/12 | R3 300 | R3 300 |
30 Sep 2010 | R66 000 × 10% × 12/12 | R6 600 | R9 900 |
30 Sep 2011 | R66 000 × 10% × 12/12 | R6 600 | R16 500 |
30 June 2012 | ? | R? | R? |
Total: 100 marks
ACCOUNTING GRADE 12: TASK B FIRST TERM TEST ANSWER BOOK |
Name of learner | |
School | |
Class |
MAXIMUM | MARKS ACHIEVED | |
Part 1 | 8 | |
Part 2 | 64 | |
Part 3.1 | 13 | |
Part 3.2 | 15 | |
TOTAL | 100 |
Answer Book Task B
1.
Calculate the profit or loss on the disposal of the computer. WORKINS:
ANSWER: |
8 |
2. SIMPHIWE LTD
INCOME STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2012
Other operating income | |
Operating expenses | |
Profit before interest expense | |
Profit before tax | |
64 |
3. NOTES TO THE FINANCIAL STATEMENTS
3.1
ORDINARY SHARE CAPITAL | |
Authorised: | |
Issued: | |
13 |
3.2
RETAINED INCOME | |
Balance at beginning of year | |
Add: | |
Less: | |
Less: | |
Balance at the end of the year |
15 |
100 |
NOTE TO TEACHERS: This task is relevant to Grade 12 learners from 2014 (i.e. relevant to CAPS). You may adapt the material to cater for more than 50 marks, but you should ensure that the final mark is converted to 50 marks as per CAPS. Teachers may allow learners to refer to textbooks in completing this task.
ALSO REFER TO THE SOURCE MATERIAL FOR THIS TASK
(PAGES 30-36)
ACCOUNTING GRADE 12: TASK C PUBLISHED FINANCIAL STATEMENTS OF A COMPANY QUESTION PAPER AND ANSWER BOOK 50 marks; 90 minutes |
Name of learner | |
School | |
Class |
MARKS ACHIEVED |
50 |
FAMOUS BRANDS LIMITED
REQUIRED
Study the information provided. Answer the questions which follow. As this task is intended as a project, you may use your textbook as a resource.
You are also provided with the following financial indicators for the 2011 financial year:
Current ratio = 1,4 : 1 Acid-test ratio = 1,1 : 1 Dividend pay-out rate = 64%
Debt-equity ratio = 0,2 : 1 Net asset value per share = R7,44 % return on shareholders’ equity = 33,9%
EPS = 242 cents DPS = 155 cents
1. General information
1.1 Refer to page 1 of the source material for the icons of the well-known brands that comprise Famous Brands Ltd. Name FOUR of these brands and describe the product or service in which each brand specialises.
|
2 |
1.2
Give the names of the persons who fill the following positions: Chairman of the Board of Directors, Chief Executive Officer, Group Financial Director and Company Secretary. Briefly explain the work done by each of them.
|
3 |
1.3
Who are the independent auditors of Famous Brands Limited, and how much were they paid for their services? Their report is not provided in this summary, but there is a reference to it in Note 3. Briefly explain what this audit report would contain.
|
3 |
1.4
How many directors does the company have, how many of them are executive directors and how many of them are non-executive directors? Briefly explain the difference in the roles of these two types of director.
|
3 |
2.
Why did the directors decide to show the graphs of the Earnings per Share and Total Revenue at the top of the page? Briefly explain what these graphs reflect about the company for the past five years.
|
2 |
3.
Refer to the commentary by the directors, particularly the Overview and the Financial results. What did the directors say about the changing habits of their customers, and how did the directors respond to these changes?
Briefly explain the major challenges that the company has faced in the current financial year.
The Operational Review states that the company was involved in three main areas: Franchising, Manufacturing and Logistics. Explain what is meant by each of these activities, with specific reference to the work that the company does.
The company does not operate only in South Africa. Provide evidence from the information to prove this point.
|
6 |
4.
Identify the following figures from the financial statements. Also state where you found each figure, i.e. in the Income Statement (IS), Balance Sheet (BS) or Cash Flow State ment (CFS).
|
4 |
5.
Refer to Page 1 of the source material for the highlighted indicators. Provide workings for the following calculations: % increase in revenue
% increase in operating profit
% increase in headline earnings per share (use basic HEPS)
% increase in dividends per share
|
4 |
6.
Calculate the following financial indicators for 2012. Refer to the end of the Income Statement for the number of shares.
|
4 |
7.
Comment on the liquidity position of the company. Quote TWO financial indicators to support your opinion.
|
3 |
8.
Comment on whether the company tends to retain or distribute its profits. Provide evi dence to support your opinion. Briefly explain how this could affect the share price on the JSE.
|
3 |
9.
Comment on the gearing of the company. Should the company repay loans or take out more loans? Provide evidence to support your opinion.
|
3 |
10.
In February 2012 the share price of the company on the JSE was R53,00. The price in creased to R79,00 in February 2013. Comment on whether or not you feel the company’s shares are fairly valued. Provide evidence to support your opinion.
|
3 |
11.
Should the shareholders be satisfied with the percentage return, earnings and dividends for the 2012 financial year? Explain. Provide evidence to support your opinion.
|
4 |
12.
What do the directors say about the prospects for the future? Would this influence you in buying shares in Famous Brands Limited?
|
3 |
TOTAL: 50 marks
SOURCE MATERIAL FOR TASK C SECOND TERM PROJECT Refer to the attached extract from the published annual report of 6 pages to follow (p 31-36) |
NOTE TO TEACHERS: This task is relevant to Grade 12 from 2014 (i.e. relevant to CAPS). Teachers may choose to increase the marks on specific items and mark the case study out of 75 or 100 marks, as long as the final weighting is as per CAPS.
ACCOUNTING GRADE 12: TASK D THIRD TERM ASSESSMENT TASK CASE STUDY: CASH BUDGET AND DEBTORS QUESTION PAPER 50 marks; 60 minutes |
Preamble |
REQUIRED
INFORMATION ON NEXT TWO PAGES …
INFORMATION
1.
Cash Budget for two months ending 31 January 2013 (actual figures in shaded columns):
December 2012 January 2013
Receipts | December 2012 | January 2013 | ||
BUDGET | ACTUAL | BUDGET | ACTUAL | |
Cash sales | 480 000 | 452 000 | 330 000 | 208 000 |
Receipts from debtors | ? | 189 980 | ? | 222 685 |
Commission income | 24 000 | ? | 20 400 | 12 000 |
Loan from Minty Bank | 0 | 0 | 0 | 120 000 |
Rent income | ? | ? | 15 950 | 31 900 |
Capital from M Mtini | 0 | 250 000 | 0 | 0 |
Total Receipts | 778 798 | 926 480 | ? | 594 585 |
Payments | ||||
Cash purchases | 222 500 | 245 750 | 155 000 | 110 380 |
Payments to creditors | 181 800 | 162 000 | ? | 184 000 |
Telephone | 2 800 | 4 500 | 2 800 | 4 200 |
Repayment on existing vehicle | 9 000 | 9 000 | 9 000 | 9 000 |
Vehicle expenses | 8 000 | 6 400 | 8 000 | 37 500 |
Salaries and wages | 68 000 | 82 800 | 72 080 | 72 080 |
Advertising | 5 000 | 5 000 | 5 000 | 5 000 |
Sundry operating expenses | 23 380 | 19 400 | 17 300 | 17 320 |
Insurance | 22 000 | 16 000 | 22 000 | 16 000 |
Drawings by Bennie Bekker | 25 000 | 25 000 | 25 000 | 35 000 |
Interest on overdraft | 4 020 | ? | ? | 0 |
Interest on loan | 500 | 500 | 500 | 0 |
Repayment of loans | 0 | ? | 0 | 4 000 |
Total payments | 572 000 | 620 370 | 516 930 | 494 480 |
Cash surplus/shortfall | 206 498 | 306 110 | ? | 100 105 |
Bank(Opening balance) | (325 400) | (325 400) | A | C |
Bank (Closing balance) | ? | (19 290) | B | D |
2. Purchases and sales of trading stock
Stock is replaced on a monthly basis.
50% of stock is usually purchased on credit.
Creditors are paid in the month after the purchases, to take advantage of a 10% discount. Goods are sold at a constant mark-up of 80% on cost.
The budget is worked out on the following total sales figures:
October 2012 | November 2012 | December 2012 | January 2013 |
R603 00 | R727 200 | R801 000 | R558 000 |
Credit sales constitute 40% of the total sales.
3. Expected collections from debtors:
Debtors are told that they are expected to pay in the current month or in the month following the sales transaction month. However, the budget is compiled as follows:
10% is collected in the transaction month. A discount of 5% is allowed for any payment received in the transaction month.
50% is collected in the month after the transaction month.
35% is collected in the second month after the month of sale.
4. Debtors Age Analysis on 31 December 2012
DEBTORS | CREDIT LIMIT | SEPTEMBER | OCTOBER | NOVEMBER | DECEMBER | TOTAL |
M Minaj | 45 000 | 49 100 | 49 100 | |||
U Usher | 85 000 | 7 800 | 40 680 | 48 480 | ||
B Beiber | 30 000 | 24 000 | 24 000 | |||
B Britney | 100 000 | 49 125 | 45 240 | 9 050 | 25 865 | 129 280 |
J Jemson | 12 000 | 6 500 | 6 500 | |||
W West | 50 000 | 22 000 | 22 000 | |||
D Drake | 120 000 | 29 800 | 39 000 | 24 000 | 26 680 | 119 480 |
H Hannah | 25 000 | 31 100 | 9 300 | 40 400 | ||
W Wayne | 45 000 | 4 350 | 23 270 | 8 740 | 36 360 | |
Other debtors | ? | ? | ? | ? | ? | |
R156 725 | R234 250 | R172 500 | R201 300 | R764 775 | ||
90 days | 60 days | 30 days | Current | |||
Percentage | % | % | % | % | 100% |
5. Actual figures from financial statements for year ended 31 December 2012:
For the year | ||
Total sales | R4 600 000 | |
Cash sales | R2 200 000 | |
Credit sales | R2 400 000 | |
1 January 2012 | 31 December 2012 | |
Trade debtors | R295 225 | R764 775 |
TOTAL: 50
ACCOUNTING GRADE 12: TASK D THIRD TERM ASSESSMENT TASK CASE STUDY: CASH BUDGET AND DEBTORS ANSWER BOOK |
Name of learner | |
School | |
Class |
MARKS ACHIEVED |
50 |
1.
What would you say to Bennie about the mistakes that he says his wife made in compiling the budget with regard to the depreciation and the contribution of a new delivery vehicle?
|
2 |
2.Debtors’ Collection Schedule for December 2012 and January 2013
MONTH | CREDIT SALES | DECEMBER 2012 | JANUARY 2013 |
October | |||
November | |||
December | |||
January | |||
Cash from debtors |
4 |
3.
Calculate % increase in budgeted salaries and wages in January 2013.
Calculate % decrease in amount budgeted for commission income in January 2013.
|
4 |
4.
Calculate total finance charges incurred in the purchase of the vehicle.
|
2 |
5.
Effect on the budget:
TWO points that Mtini would mention to Bekker:
|
4 |
6.
Calculation of rent income for December 2012:
Suitable explanation:
|
3 |
7.
Calculate the budgeted payments to creditors in January 2013.
Mtini feels that the business need not buy any goods for cash, and that all goods should be bought on credit. In your opinion, will this improve the business Cash Budget? Explain.
|
4 |
8.
Explain the difference between interest capitalised and interest not capitalised.
Calculate the amount of the loan repaid on 31 December 2012.
|
3 |
9.
Use the Cash Budget to identify the missing figures, totals and balances designated A–D. You are NOT required to identify other missing figures.
|
4 |
10.
Calculation of average debtors’ collection period (in days): (2)
Calculation of % of debtors who are complying with the credit terms (as indicated in the Debtors Age Analysis): (2)
Brief comment on the above two calculations: (1)
Details of the main mistakes that the business is making with regard to debtors. Also provide the names of specific debtors to illustrate these main problems and suggest a solution for each mistake. (6)
|
11. Consider the actual and budgeted figures for Advertising, Telephone and Advertising. (Note that Mtini has not drawn any funds as yet.) Comment on each item, and offer ONE point of advice in each case.
COMMENT | ADVICE | |
ADVERTISING | ||
TELEPHONE | ||
INSURANCE |
6 |
12.
Bennie has made two significant decisions by taking out a new loan and admitting a partner to the business. What would you say to Bennie about these decisions and the effect on the cash flow of the business?
|
3 |
50 |
NOTE TO TEACHERS: This task is relevant to Grade 12 learners from 2014 (i.e. relevant to CAPS). This task comprises two parts. You may adapt the material to take the needs of your class group into account. For example, you may require them to do Part A on their own and Part B in class. Or you may require the class to do only Part B as a formal report, and undertake Part A as an extension task in class on a weekly basis. If you choose to adapt the material in any way, you should ensure that the task comprises 50 marks as per CAPS.
ACCOUNTING GRADE 12: TASK A FIRST TERM ASSESSMENT TASK REPORT ON COMPANIES MARKING GUIDELINE |
THIS TASK CONSISTS OF TWO PARTS
PART A Report on a public company listed on the JSE
PART B Internal auditor’s report on procedures and internal controls in a public company
MARKING GUIDELINE FOR PART A
PART A
Report on a public company listed on the JSE
Marking Rubric
Criteria | Poor/Incorrect | Mark | Satisfactory | Mark | Good | Mark | Excellent | Mark |
Maximum number of shares that your aunt can buy | Weak calculations on share purchase | 0–1 | Some aspects are adequately covered | 2 | Good calculations presented | 3 | Excellent calculations showing great understanding | 4 |
Share price and other calculations | Weak calculations | 0–1 | Some aspects are adequately covered | 2 | Good calculations presented | 3 | Excellent calculations presented | 4–5 |
Graph of the company’s share price | Weak presentation of information in graph | 0–1 | Some aspects are adequately covered | 2 | Good preparation of graph | 3 | Excellent graph presented | 4 |
Graph of the value of your aunt’s investment portfolio | Weak presentation of information in graph | 0–1 | Some aspects are adequately covered | 2 | Good preparation of graph | 3 | Excellent graph presented | 4 |
Further information on the company | Poor information collected on the company | 0–1 | Some aspects are adequately covered | 2 | Good information collected on the company | 3 | Excellent information collected | 4–5 |
Recommendation on further investment in this company, with reasons | Poor recommendations on further investment | 0–1 | Some aspects are adequately covered | 2 | Good recommendations made | 3 | Excellent recommendations made | 4 |
26 |
MARKING GUIDELINE FOR PART B
Expected reponses are provided below. Marking guidelines are as follows:
Excellent answer = 4 marks; Good = 3 marks; Satisfactory = 2 marks; Poor = 1 mark; Incorrect = 0
Internal auditor’s report on procedures to be implemented for Exotic Clothing Ltd:
1. (4)
Procedures to establish the company:
|
2. (4)
Records that should be kept on each shareholder, together with reasons:
|
3 (4)
Internal control procedures for fixed assets:
|
4 (4)
Internal control procedures for trading stock:
|
5. (4)
Internal control procedures for accounts receivable (debtors):
|
6. (4)
Internal control procedures for cash collected
|
Signed: _________________________ (Internal Auditor) Date: ______________
24 |
IMPORTANT NOTE TO TEACHERS: This test is NOT relevant to 2013 Grade 12 learners. The test includes entries relating to the new CAPS curriculum to be implemented in 2014, with regard to shares of no par value and the repurchase of shares. The test was adapted from a previous Grade 12 paper (QUESTION 4 of the 2009 NSC backup paper).
ACCOUNTING GRADE 12: TASK B(i) 2014 CAPS VERSION |
1. (8)
Calculate the profit or loss on the disposal of the computer:
|
2. (64 makrks)
SIMPHIWE LTD INCOME STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2012 | ||
Sales (8 160 000✔ – 18 600✔ – 28 800✔) | ✔ 8 112 600 | |
Cost of sales (3 930 000✔ – 19 200✔) | ✔ (3 910 800) | |
9 | Gross profit ✔ Operation, COS must be deducted | ? 4 201 800 |
Other operating income Check operation | ? 479 900 | |
Fee income (314 250✔ – 2 250✔) | ✔ 312 000 | |
Rent income (168 000✔– 24 000✔✔) | ✔ 144 000 | |
Bad debts recovered | ✔✔ 1 700 | |
13 | Trading stock surplus [1 440 000 – (1 398 600 + 19 200)] One part correct | ?✔✔ 22 200 |
4 681 700 | ||
Operating expenses Operation | ? (3 224 700) | |
Salaries and wages | ✔ 486 000 | |
Discount allowed | ✔ 2 710 | |
Insurance | ✔ 33 000 | |
Sundry expenses (117 750✔ – 9 600✔) | ✔ 108 150 | |
Directors’ fees (870 000✔ + 870 000✔+ 435 000✔) | ✔ 2 175 000 | |
Audit fees | ✔ 161 100 | |
Consumable stores (75 600✔ – 3 600✔) | ✔ 72 000 | |
Provision for bad debts adjustment (5 410✔ – 4 320✔) | ✔ 1 090 | |
Depreciation (4 950? + 13 750✔✔+ 74 400✔✔+ 50 400✔✔) See 4.1.1 Operation, one part correct | ? 143 500 | |
28 | Loss on sale of asset See 4.1.1 | ?? 42 150 |
Operating profit ✔ Operation, expenses must be deducted | ? 1 547 000 | |
Interest income ✔ | ✔ 7 500 | |
Profit before interest expense Operation | ? 1 464 500 | |
Interest expense ✔ | ✔✔ (54 000) | |
Profit before tax Operation, interest must be deducted | ? 1 401 500 | |
Income Tax ✔ If = 30% of figure above | ?? (423 150) | |
14 | Net profit after tax ✔ Operation, tax and interest expense must be deducted | ? 978 350 14 |
3. NOTES TO THE FINANCIAL STATEMENTS
3.1 (13 )
ORDINARY SHARE CAPITAL | |
Authorised: | |
600 000 ordinary shares ✔ | |
Issued: | |
✔400 000 shares in issue on 1 October 2011 (4 410 000–950 000) | ✔3 460 000 |
✔100 000 shares issued on 1 April 2009 at R9,50 each | ✔✔950 000 |
✔ 70 000 shares repurchased on 30 September 2012 (70 000✔ x R8,82✔) | ✔✔(617 400) |
✔430 000 shares in issue on 30 September 2012 | ?3 792 600 |
3.2 (15)
RETAINED INCOME | |
Balance at beginning of year | ✔812 650 |
Add: Net profit after tax ✔ See Inc Stmt | ?978 350 |
Less: Shares repurchased ✔ (70 000✔ x R2,38✔) | ✔✔(166 600) |
Less: Dividends ✔ Operation | ?(674 000) |
Interim | ✔264 000 |
Final (500 000✔ x 82c✔) | ✔410 000 |
Balance at end of year Operation | ?1 117 000 |
TOTAL FOR SECTION: 100 MARKS
NOTE TO TEACHERS: This task is relevant to Grade 12 learners in 2013 and from 2014 (i.e. relevant to CAPS as well). You may adapt the material to cater for more than 50 marks, but you should ensure that the final mark is reduced to 50 marks as per CAPS. Teachers may allow learners to refer to textbooks in completing this task. ALSO PROVIDE LEARNERS WITH THE RESOURCE MATERIAL FOR THIS TASK (SEPARATE DOCUMENT).
ACCOUNTING GRADE 12: TASK C |
You are provided with a summary of the published financial statements of FAMOUS BRANDS LIMITED for the year ended 29 February 2012.
REQUIRED
Study the information provided. Answer the questions which follow. As this task is intended as a project, you may use your textbook as a resource.
You are also provided with the following financial indicators for the 2011 financial year:
Current ratio = 1,4 : 1 Acid–test ratio = 1,1 : 1 Dividend pay-out rate = 64%
Debt-equity ratio = 0,2 :1 Net asset value per share = R7,44 % Return on shareholders’ equity = 33,9%
EPS = 242 cents DPS = 155 cents
Part–marks may be awarded for partial or incomplete answers.
1. General information:
1.1 (2)
Refer to Page 1 of the source material for the icons of the well-known brands that comprise Famous Brands Ltd. Name FOUR of these brands and describe the product or service in which each brand specialises. All items correct = 2 marks; partly correct = 1; incorrect = 0
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1.2 (3)
Give the names of the persons who fill the following positions: Chairman of the Board of Directors, Chief Executive Officer, Group Financial Director and Company Secretary. Briefly explain the work done by each of them.
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1.3 (3)
Who are the independent auditors of Famous Brands Limited, and how much were they paid for their services? Their report is not provided in this summary, but there is a reference to it in Note 3. Briefly explain what this audit report would contain.
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1.4 (3 )
How many directors does the company have, how many of them are executive directors, and how many of them are non-executive directors? Briefly explain the difference in the roles of these two types of director.
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2.
(2)
Why did the directors decide to show the graphs of the Earnings per Share and Total Revenue at the top of the page? Briefly explain what these graphs reflect about the company for the past five years. |
3. (6)
Refer to the Commentary by the directors, particularly the Overview and the Financial results. What did the directors say about the changing habits of their customers, and how did the directors respond to these changes? Briefly explain the major challenges that the company has faced in the current financial year. The Operational Review states that the company was involved in three main areas: Franchising, Manufacturing and Logistics. Explain what is meant by each of these activities, with specific reference to the work that the company does.
Expected response: Correct answer = 1 mark; incorrect = 0 |
4. (4)
Identify the following figures from the financial statements. Also state where you found each figure i.e. in the Income Statement (IS), Balance Sheet (BS) or Cash Flow Statement (CFS).
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5. (4)
Refer to Page 1 of the source material for the six highlighted indicators. Provide workings for the following calculations: % increase in operating profit % increase in headline earnings per share (use basic HEPS) % increase in dividends per share |
6. (4)
Calculate the following financial indicators for 2012. Refer to the bottom of the Income Statement for the number of shares.
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7. (3)
Comment on the liquidity position of the company. Quote TWO financial indicators to support your opinion. |
8. (3)
Comment on whether the company tends to retain or distribute its profits. Provide evidence to support your opinion. Briefly explain how this could affect the share price on the JSE. |
9. (3)
Comment on the gearing of the company. Should the company repay loans or take out more loans? Provide evidence to support your opinion. |
10. (3)
The share price of the company on the JSE in February 2012 was R53,00. The price increased to R79,00 in February 2013. Comment on whether or not you feel the company’s shares are fairly valued. Provide evidence to support your opinion. |
11. (4)
Should the shareholders be satisfied with the percentage return, earnings and dividends for the 2012 financial year? Explain. Provide evidence to support your opinion. |
12. (3)
What do the directors say about the prospects for the future? Would this influence you in buying shares in Famous Brands Limited? |
TOTAL: 50 marks
NOTE TO TEACHERS: This task is relevant to Grade 12 learners in 2013 and from 2014 (i.e. relevant to CAPS as well). Teachers may choose to increase the marks on specific items and mark the case study out of 75 or 100 marks, as long as the final weighting is as per CAPS (reduced to 10 marks).
ACCOUNTING GRADE 12: TASK D THIRD TERM ASSESSMENT TASK MARKING GUIDELINE |
1. (2)
What would you say to Bennie regarding the mistakes he thinks his wife made in compiling the budget with regard to the depreciation and the contribution of a new delivery vehicle? |
2. Debtors’ Collection Schedule for December 2012 and January 2013 ✔✔✔✔ (4)
All figures correct = 4 marks; Most correct = 3; Some correct = 2; Few correct = 1; None correct = 0
MONTH | CREDIT SALES | DECEMBER 2012 | JANUARY 2013 |
October | 241 200 | 84 420 | |
November | 290 880 | 145 440 | 101 808 |
December | 320 400 | 30 438 | 160 200 |
January | 223 200 | 21 204 | |
Cash from debtors | 260 298 | 283 212 |
3. (4)
Calculate % increase in budgeted salaries and wages in January 2013. Calculate % decrease in amount budgeted for commission income in Janu ary 2013 3 600 × 100 = 15% ✔? any one part correct i.e. either 3 600 or 24 000 |
4. (2)
Calculate the total finance charges incurred in the purchase of the vehicle. |
5. (4)
Effect on the budget:
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6. (3)
Calculation of rent income for December 2012 Suitable explanation:
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7. (4)
Calculate the budgeted payments to creditors in January 2013. Mtini feels that the business need not buy any goods for cash, and that all goods should be bought on credit. In your opinion, will this improve the business Cash Budget? Explain. |
8. (3)
Explain the difference between interest capitalised and interest not capitalised. Calculate the amount of the loan repaid on 31 December 2012. 500 ÷ 0,15 x 12 = R40 000 ✔✔ |
9. (4)
Use the Cash Budget to identify the missing figures, totals and balances designated A–D. You are NOT required to identify other missing figures.
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10. (12)
Calculation of the average debtors’ collection period (in days):
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11. Consider the actual and budgeted figures for Advertising, Telephone and Advertising. (Note that Mtini has not drawn any funds as yet.) Comment on each item, and offer ONE point of advice in each case. (6)
Comment ✔✔✔ | Advice ✔✔✔ | |
Advertising | The expense is the same as budgeted. This appears to be well planned. However, when one looks at the monthly sales, it shows that advertising is not effective. | They should consider increasing the advertising budget. Can be strategically linked to sales. The business must look at trends/ codes played at different seasons and budget accordingly. |
Telephone | Always overspending/under budgeted | Need extra control, investigate whether there is a need to increase (calling debtors etc.) or if it is being abused. |
Insurance | This is R6 000 under-budget each month. | They should consider whether they are still adequately covered or whether they have genuinely negotiated a better rate. This might be false economy if the insurance company fails to pay out for legitimate claims. |
12. (3)
Bennie has made two significant decisions by taking out a new loan and admitting a partner to the business. What would you say to Bennie about these decisions and the effect on the cash flow of the business? |
TOTAL MARKS FOR THE TASKS: 50