JUNE EXAMINATION PAPER - newera.netelligent.co.zanewera.netelligent.co.za/wp-content/uploads/2017/07/Gr-10-June... · JUNE EXAMINATION PAPER ... 4 Invested R15 000 in a Fixed deposit

JUNE EXAMINATION PAPER 200 marks 2 hours GRADE 10 ACCOUNTING

INSTRUCTIONS AND INFORMATION:

1. Answer ALL the questions in the Answer Book provided. 2. Show all workings/calculations in order to achieve part-marks. 3. Read the instructions carefully and answer them precisely. 4. Non-programmable calculators may be used. Refrain from borrowing stationery whilst in the examina-

tion room. 5. You may use a dark pencil or black/blue ink to answer the questions. 6. Write neatly and legibly. Note that marks may be lost for important dates omitted, the use of non-

standardised abbreviations, and over-writing of figures. 7. Use the table below as a guide to manage your time. Try not to deviate from it.

QUESTION TOPIC / DESCRIPTION MARKS TIME GUIDE

1 Concepts, Indigenous and Analysis 50 30

2 Cash journals 25 15

3 General Ledger and General Journal 70 40

4 Debtors ledger and Creditors ledger 25 15

5 Salaries calculations 30 20

TOTAL 200 120 minutes

QUESTION 1 1.1 CONCEPTS:

REQUIRED:

Match the concepts in Column A with the explanations given in Column. Write the letters only, next to each number in your Answer Book. (5)

COLUMN A COLUMN B

1.1.1 Liabilities A This is a financial statement that shows the net worth of a business.

1.1.2 Fixed assets B This consists of the capital contribution and the profit made by the

business.

1.1.3 Income Statement C This is the total of all long term and short term debts of a business.

1.1.4 Balance Sheet D This financial statement shows the profit or loss for a specific account-

ing period.

1.1.5 Owner’s equity E Land and buildings and equipment are examples of this.

1.2 INDIGENOUS ACCOUNTING:

Benson operates a fruit and vegetable stall as a street vendor.

REQUIRED:

1.2.1 To which sector of the economy does this type of business belong? (1) 1.2.2 Provide TWO factors that makes this different from businesses in the other sectors of the

economy. (4) 1.2.3 Explain how this sector is beneficial to an economy. Provide TWO points. (4)

1.2.4 Identify TWO shortcomings of such business ventures. (4)

1.3 ANALYSIS OF TRANSACTIONS:

REQUIRED:

Analyse the following transactions according to the headings on the table provided. Follow the example

provided. The bank balance is positive.

TRANSACTIONS:

1.3.1 The owner, P. Masanga, increased his capital contribution by contributing a motor vehicle valued

at R145 000.

1.3.2 Issued a cheque to Hilda Traders for the following:

• Trading goods R14 380

• Cleaning detergents for the shop R2 820

1.3.3 Cash sales for the week amounted to R14 320 (profit mark-up on cost is 60%).

1.3.4 Returned damaged stationery to Motre Suppliers (a creditor), R2 520.

1.3.5 It was decided to write off the account of Will Notpay (a debtor), R2 260.

QUESTION 2

The following information was extracted from the records of Cheryl Traders for April 20.6.

REQUIRED:

Complete the Cash Receipts Journal and Cash Payments Journal for April 20.6. Do not total the journals.

Insert your own document numbers.

INFORMATION:

Transactions for April 20.6:

3 Received an EFT payment from BOB Bank for R60 000. This was for a loan negotiated in January

20.6.

4 Invested R15 000 in a Fixed deposit at 10% p.a. interest at BOB Bank. Paid electronically.

6 Took delivery of trading goods purchased from Yello Stores. Issued cheque for R6 480.

7 Issued cheque for R320 to U-Haul Transport for the delivery of the goods purchased above.

9 Made an EFT payment in favour of Brown Cash ‘n Carry for the following: Trading goods R7 330 and a computer for office use R8 400.

12 Received a cheque from K. Raman (a debtor) for R970 in settlement of his account of R1 020.

25 Issued a cheque for R7 600 to BEEG Wholesalers being the monthly instalment for goods purchased on credit, after a discount of a 5% discount was deducted, when this payment was made.

29 Bank statement received from ST Bank, showed the following:

• Service fees R95; cash deposit fees R135; credit card levies R170; Interest on credit balance

R120.

• Debit order payment to SW Insurers for the insurance on the owner’s car, R365.

QUESTION 3 3.1 GENERAL LEDGER: DEBTORS & CREDITORS CONTROL ACCOUNTS [28]

The following journal totals were taken from the records of Naidoo Stores.

REQUIRED:

Post to the Debtors control account and the Creditors control account in the General Ledger. Balance the accounts at the end of the month.

INFORMATION:

BALANCES AND TOTALS ON 1 APRIL 201720.9:

Debtors control R21 800

Creditors control R35 200

TOTALS FROM THE JOURNALS ON 30 APRIL 201720.9:

CASH RECEIPTS JOURNAL

Bank Sales Cost of sales

Debtors control Sundry

amounts Receipts Discount allowed

66 410 34 210 22 600 11 700 1 360 20 500

CASH PAYMENTS JOURNAL

Bank Trading

stock Debtors control

Creditors control Sundry

amounts Payments Discount received

57 720 18 440 3 280 19 700 2 720 16 300

CREDITORS JOURNAL Creditors control

Trading stock Equipment Packing material

Sundry amounts

35 000 15 300 5 500 6 200 8 000

CREDITORS ALLOWANCES JOURNAL

Creditors control

Trading stock Equipment Packing material

Sundry amounts

5 300 3 100 200 800 1 200

PETTY CASH JOURNAL

Petty Cash Trading stock Postage and stationery

Debtors control

Sundry amounts

2 160 820 510 600 230

DEBTORS JOURNAL Sales Cost of sales

27 400 17 125

DEBTORS ALLOWANCES JOURNAL Debtors

allowances Cost of sales

8 300 5 000

3.2 TRADING STOCK ACCOUNT [19]

INFORMATION:

The following incomplete Trading stock account appeared in the General Ledger:

GENERAL LEDGER OF NAIDOO STORES BALANCE SHEETS ACCOUNTS SECTION

Dr Trading stock B7 Cr

201720.9

Apr 1 Balance b/d 42 200

201720.9

Apr 30 Cost of sales CRJ 18 700

30 (a) CPJ 23 500 Cost of sales (d) 9 800

Creditors control (b) 16 800 (e) CAJ 4 120

(c) DAJ 4 200

Drawings (f) 1 200

REQUIRED:

3.2.1 Provide relevant details or folio references for (a) – (f). (6)

3.2.2 The business applies a mark-up of 50% on cost for all sales transactions. Calculate the total cash sales for the month. (4)

3.2.3 Identify the error in posting. Explain your choice. (4)

3.2.4 Calculate the correct Trading stock balance on 30 April 201720.9, after correcting the error. (5)

3.3 GENERAL JOURNAL [23]

The following entries were extracted from the records of Glynis Stores during June 201720.9.

REQUIRED:

3.3.1 Prepare General Journal entries to take into account the transactions below. Narrations

are not necessary. Complete the Debtors and Creditors control columns. Do not total. (19)

3.3.2 Besides charging interest, list TWO other ways that the business can use to encourage

debtors to pay their accounts on time. (2)

3.3.3 What can the business do to minimise the incidence of debtors’ accounts being written off as bad debts? Give TWO points. (2)

INFORMATION:

(a) Interest on the overdue account of M. Jara must be charged at 12% p.a. His balance of R2 800 is three months overdue.

(b) The owner used stationery valued at R320 from the office to complete his son’s school assignment. (c) A payment of R2 300 received from debtor P. de Kok was posted in error to the account of M. de Kok

in the Debtors Ledger.

(d) Consumable stores purchased for R4 200 was posted in error to the Trading stock account in the General Ledger.

(e) Goods purchased on credit from Milton Suppliers, R8 800 was posted in error to the Creditors’ Ledger account of Malwande Suppliers.

QUESTION 4

DEBTORS & CREDITORS LEDGER [25]

4.1 CREDITORS LEDGER

You are presented with the Creditors Ledger account of Awethu Suppliers (CL8) in the books of Amandla

Traders.

REQUIRED:

Taking into account the information provided below, complete the Creditors Ledger account by filling in all the

missing details and amounts. Folio references must be inserted. (10)

INFORMATION:

CREDITORS LEDGER OF AMANDLA TRADERS

Awethu Suppliers CL8

Date Details Fol Debit Credit Balance

20.7

May 1 Balance (account rendered) b/d 22 500

5 Invoice No 621 35 100

17 CPJ 8 000

Discount received

20

25

Additional information:

• An extra 5% discount, calculated on the amount paid, was received when the payment was made on the 17th.

• Stationery not according to order, R1 180, received with the purchases on the 5th was returned on the 20th.

• Trading goods purchased on the 25th were subject to a 10% trade discount. The invoice total before the

discount was R9 200.

4.2 DEBTORS LEDGER

REQUIRED:

Enter the following transactions directly to the Debtors Ledger account of S. Jacobs in the books of Phetela Traders. Folio references are required. (15)

INFORMATION OF S. JACOBS FOR MAY 20.7

DATE DETAILS AMOUNT

1 Amount owing by S. Jacobs (balance) R8 500

4 Issued invoice No. 228 R3 620

7 S. Jacobs returned damaged goods. R940

12 Received a cheque from S. Jacobs for the amount due on the 1 May 20.7 after granting a 5% discount.

?

16 S. Jacobs purchased goods for R2 750. She paid R500 cash. An invoice

was issued for the difference. ?

22 Received a notice from the bank informing us that the cheque received on

12th was dishonoured due to insufficient funds. ?

QUESTION 5

5.1 SALARY SCALE [10]

Sheila Greyson was excited to receive a letter stating that she was successful in receiving a job at Wasp Traders. She was given the following salary scale:

134 400 x 13 320 – 174 360 x 15 000 – 219 360

5.1.1 Calculate Sheila’s monthly salary in her first year of employment. (2)

5.1.2 What will her annual salary be in her third year of employment? (2)

5.1.3 What will her monthly increase be in her fifth year of employment? (3)

5.1.4 In which year of employment would she receive R219 360 p.a.? (3)

5.2 ANALYSING A SALARY ADVICE [20]

You are presented with the salary advice of Phumza Stone.

REQUIRED:

5.2.1 Calculate the net salary of Phumza Stone. (2)

5.2.2 Phumza receives a percentage of her gross salary when income targets are met. Calculate the percentage of the bonus she received this month.

(3)

5.2.3 The business pays R1.50 for every R1 paid by the employee in respect of Medical Aid. Cal-

culate the total amount paid to Disck Medical Aid based on this salary slip.

(3)

5.2.4 Determine the Pension Fund policy with regards to employee deductions and employers con-

tribution. Show calculations.

(6)

5.2.5 Calculate the total cost to the business with regards to Phumza’s salary for this month. (6)

INFORMATION:

OXFORD SALON

SALARY ADVICE Date: 31 May 20.7

Employee: Phumsa Stone Job Title: Manicurist

BASIC SALARY R17 500

Bonuses and allowances 525

GROSS SALARY 18 025

TOTAL DEDUCTIONS : 5 125

Libre Pension fund 1 400

PAYE 3 150

UIF 175

Disck Medical Aid 400

NET SALARY DUE TO EMPLOYEE ?

Employer’s Contribution:

Libre Pension Fund 1 925

UIF 175

Disck Medical Aid ?

Skills Development Levy 175

TOTAL COST TO BUSINESS ?

ANSWER BOOK

QUESTION 1

1.1 CONCEPTS: [5]

1.1.1 1.1.2 1.1.3 1.1.4 1.1.5

1.2 INDIGENOUS ACCOUNTING: [13]

1.2.1 To which sector of the economy does this type of business belong? (1)

1.2.2 Provide TWO factors that makes this different from businesses in the other sec-tors of the economy. (4)

•

•

1.2.3 Explain how this sector is beneficial to an economy. Provide TWO points. (4)

•

•


•

•

1.3 ANALYSIS OF TRANSACTIONS: [32]

Example: Bought stamps and paid from petty cash, R50.

No. Jour-

nal

General Ledger Asset Equity

Liabil-

ity Account debited Account credited

E.g. PCJ Postage Petty cash - 50 -50

1.3.1

1.3.2

1.3.3

1.3.4

1.3.5

QUESTION 2 CASH RECEIPTS JOURNAL OF CHERYL TRADERS – APRIL 20.6 CRJ8

Doc. No.

D Details Fol

Analysis

of receipts


Debtors control Sundry accounts

Receipts Discount allowed

Amount Fol Details

(10)

CASH PAYMENTS JOURNAL OF CHERYL TRADERS – APRIL 20.6 CPJ8

Doc. No.

D Details Fol Bank

Creditors control Wages & salaries

Trading stock

Sundry accounts

Payments Discount

received Amount Fol Details


GENERAL LEDGER OF NAIDOO STORES BALANCE SHEET ACCOUNTS SECTION

Dr DEBTORS CONTROL B Cr 20.6 Apr

20.6 Apr

(16)

CREDITORS CONTROL B

20.6 Apr

20.6 Apr

(12)



(a)

(b)

(c)

(d)

(e)

(f)

3.2.2 Calculate the total cash sales for the month. (4)


3.2.4 Calculate the correct Trading stock balance on 30 April 20.9, after correcting the error. (5)


3.3.1 GENERAL JOURNAL OF GLYNIS STORES – JUNE 20.9 GJ

J/V D Details F Debit Credit Debtors control Creditors control

Debit Credit Debit Credit

(a)

(b)

(c)

(d)

(e)

(19)

3.3.2 Besides charging interest, list TWO other ways that the business can use to en-

courage debtors to pay their accounts on time. (2)

•

•

3.3.3 What can the business do to minimise the incidence of debtors’ accounts being

written off as bad debts? Give TWO points. (2)

•

•

QUESTION 4 4.2 DEBTORS & CREDITORS LEDGER [25]

4.2.1 CREDITORS LEDGER OF AMANDLA TRADERS Awethu Suppliers CL8


20.7 May 1 Balance (account rendered) b/d 22 500

5 Invoice No. 621 35 100

17 CPJ 8 000

Discount received

20

25

(10) 4.2.2 DEBTORS LEDGER OF PHETELA TRADERS

S. Jacobs DL9


20.7

May

(15)

QUESTION 5 5.1 SALARY SCALE [10]



5.1.3 What will her monthly increase be in her fifth year of employment? (3)





(3)

5.2.3 The business pays R1.50 for every R1 paid by the employee in respect of Med-

ical Aid. Calculate the total amount paid to Disck Medical Aid based on this salary slip.

(3)

5.2.4 Determine the Pension Fund policy with regards to employee deductions and employers contribution. Show calculations.

(6)

5.2.5 Calculate the total cost to the business with regards to Phumza’s salary for this month. (6)

SOLUTION

QUESTION 1

1.1 CONCEPTS: (5)

1.1.1 C ✓

1.1.2 E ✓

1.1.3 D ✓

1.1.4 A ✓

1.1.5 B ✓

1.2 INDIGENOUS ACCOUNTING:

1.2.1 To which sector of the economy does this type of business belong? (1)

Informal / Unregistered sector✓

1.2.2 Provide TWO factors that makes this different from businesses in the other sec-

tors of the economy. (4)

Any TWO relevant factors ✓✓ ✓✓

They can be easily set up. No set business address.

May be a home, street. Do not pay taxes.

No proper records. Depends on the interest or need of the owner.

1.2.3 Explain how this sector is beneficial to an economy. Provide TWO points. (4)


The unemployed decide to be self-employed.

Contribute to the economy – provide a service where needed.

Addresses socio-economic problems. Reduces crime.



Usually lack the skills and knowledge of running a business.

May not have sufficient capital to be more productive. May not be able to manage their finances and cash flows (business and personal).

No continuity.

1.3 ANALYSIS OF TRANSACTIONS: (32)

Example: Bought stamps and paid from petty cash, R50.

No. Journal General Ledger

Asset Equity① Liability Account debited Account credited

E.g. PCJ Postage Petty cash - 50 -50

1.3.1 GJ✓ Motor vehicle✓ Capital✓ ✓+145 000 ✓+145 000

1.3.2 CPJ✓

Trading stock✓ Bank✓ ✓✓±14 380

Consumable stores / cleaning materials✓

Bank ✓-2 820 ✓②-2 820

1.3.3 CRJ✓ Bank✓ Sales✓ ✓+14 320 ✓③+14 280

Cost of sales✓ Trading stock✓ ✓-8 950 ③-8 950

1.3.4 CAJ✓ Creditors control✓ Stationery✓ ✓④+2 520 ✓-2 520

1.3.5 GJ✓ Bad debts✓ Debtors control✓ ✓-2 260 ✓-2 260

① The Owner’s equity column is the same as the Owner’s equity note in the Balance Sheet. All entries that

affect the Owner’s equity (the owner’s investment in the business) will be entered in this column. Besides

capital and drawings the net profit also is added to capital. All income therefore increases the profit the owner gets and expenses decrease the profit the owner receives.

② Cleaning materials is an expense; decreases the profit the owner receives.

③ For every sale there must be a cost of sales entry.

④ When the stationery was purchased it would have been treated as an expense (OE-). Now the expense

must be cancelled. It will no longer have an effect on the profit (OE+).

QUESTION 2 CASH RECEIPTS JOURNAL OF CHERYL TRADERS – APRIL 20.6 CRJ8

Doc. No.

Day Details Fol

Analysis

of receipts


Debtors control Sundry accounts

Receipts Discount allowed

Amount Fol Details

B/S 3 BOB Bank ✓60 000 ✓60 000 60 000 Loan: BOB Bank✓

03 12 K. Raman ✓970 ✓970 ✓970 ✓②50

B/S 29 Bank ✓✓①120 120 Interest income①✓

(10) ① The bank is paying interest to the business. This is an income. The bank will deposit the money directly in the bank account, therefore it does not appear in the

Analysis column. ② 1 020 – 970 = R50

CASH PAYMENTS JOURNAL OF CHERYL TRADERS – APRIL 20.6 CPJ8

Doc.

No. Day Details Fol Bank

Creditors control Wages &

salaries

Trading

stock

Sundry accounts

Payments Discount

received Amount Fol Details

B/S 4 BOB Bank ✓15 000 15 000 Fixed deposit✓

334 6 Yello Stores ✓6 480 ✓6 480

335 7 U-Haul Transport ✓320 ✓320

B/S 9 Brown Cash ‘n Carry ✓15 730 ✓7 330 8 400 Equipment✓

337 25 BEEG Wholesalers ✓7 600 ✓7 600 ✓①400

B/S 29 ST Bank ✓400 400 Bank charges②✓

✓

(15) ① R7 600 = 95% (the discount has already been deducted)

7600 x 5/95 = R400 ② It is not necessary to split the charges made by the bank (concept of materiality). One entry is made for the total.


GENERAL LEDGER OF NAIDOO STORES BALANCE SHEET ACCOUNTS SECTION

Dr DEBTORS CONTROL B Cr

2017

20.9

Apr 1 Balance b/d ✓21 800

2017

20.9

Apr 30 Bank✓ CRJ ✓11 700

30 Bank✓ CPJ ✓3 280 Discount allowed✓ CRJ ✓1 360

Petty cash①✓ PCJ ✓600 Debtors allowance ✓ DAJ ✓8 300

Sales✓ DJ ✓27 400 Balance c/d 31 720

53 080 53 080

May 1 Balance b/d 31 720

(16)

CREDITORS CONTROL B

201720.9

Apr 30 Bank✓ CPJ ✓19 700

201720.9

Apr 1 Balance b/d ✓35 200

Discount received✓ CPJ ✓2 720 30 Total purchases②✓ CJ ✓35 000

Total allowances②✓ CAJ ✓5 300

Balance c/d 42 480

70 200 70 200

May 1 Balance b/d 42 480

(12) ① The business may have refunded the debtor. E.g. Hhe/she may have overpaid or he/she may have

returned goods. Petty cash decreases and the debtor’s account increases. This cancels the credit entry

that was made in the debtor’s account. Another possibility is that the business paid for transport (de-creased petty cash) but they are charging this to the debtor (increasing the amount owed).

② OR Sundry accounts.



(a) Bank ✓

(b) CJ ✓

(c) Cost of sales ✓

(d) DJ ✓

(e) Creditors control ✓

(f) GJ ✓

3.2.2 Calculate the total cash sales for the month. (4)

18 700✓ x 150%✓✓= R28 050

[You can use either cost of sales entry (CRJ or DJ or the total of the two) and add the mark-up to the cost price.]


Drawings posted on the wrong side. ✓✓

Drawings would decrease the Trading Stock. It should be credited. ✓✓

Dr Drawings; Cr Trading stock

3.2.4 Calculate the correct Trading stock balance on 30 April 201720.9, after correct-

ing the error. (5)

(42 200 + 23 500 + 16 800 + 4 200) – (18 700 + 9 800 + 4 120 + 1 200] 86 700✓ – 33 820✓ = R52 880

[Totals from the debit side - Totals from the credit side]


3.3.1 GENERAL JOURNAL OF GLYNIS STORES – JUNE 201720.9 GJ

J/V D Details F Debit Credit Debtors control Creditors control

Debit Credit Debit Credit

(a) M. Jara ✓ 84 ✓84 ✓

Interest income ✓ 84

(b) Drawings ✓ 320

Stationery ✓ 320

(c) M. de Kok ✓ ✓2 300

✓

✓2 300 ✓

P. de Kok ✓ ✓2 300

✓

✓2 300 ✓

(d) Consumable stores ✓ 4 200

Trading stock ✓ 4 200

(e) Malwande Suppliers ✓ ✓8 800

✓ ✓8 800 ✓

Milton Suppliers ✓ ✓8 800

✓

✓8 800 ✓

*Details and amounts for 1 tick.

(19)

Note:

• The correct contra account names must be used in a General Journal.

• The debit entry must be recorded first.

• If the entry concerns a debtor or creditor then the amount is also recorded in the Debtors or Creditors control column.

3.3.2 Besides charging interest, list TWO other ways that the business can use to en-

courage debtors to pay their accounts on time. (2)

Any TWO points ✓ ✓

Discounts, sms’s, regular statements, reminders, gift vouchers, etc.

3.3.3 What can the business do to minimise the incidence of debtors’ accounts being

written off as bad debts? Give TWO points. (2)

Any TWO points ✓ ✓

Screen new debtors, set credit limits, regular follow-up on outstanding debts, payment plans, etc.

QUESTION 4

4.2 DEBTORS & CREDITORS LEDGER [25]

4.2.1 CREDITORS LEDGER OF AMANDLA TRADERS Awethu Suppliers CL8


20.7 1 Balance (account rendered) b/d 22 500

May

5 Invoice No. 621 ✓CJ ✓12 600 35 100

17 Cheque XX CPJ 8 000 ✓27 100

Discount received CPJ ✓✓400 26 700

20 Debit note XX ✓CAJ ✓1 180 25 520

25 Invoice No. XX CJ ✓✓8 280 33 800

(10)

4.2.2 DEBTORS LEDGER OF PHETELA TRADERS

S. Jacobs DL9


20.7

May 1 Balance (account rendered) 8 500

4 Invoice 228 DJ✓ ✓3 620 ✓12 120

7 Credit Note XX DAJ✓ ✓940 11 180

12 Receipt No. XX CRJ ✓✓8 075 3 105

Discount allowed CRJ ✓425 2 680

16 Invoice No. XX DJ ✓✓2 250 4 930

22 Cheque R/D CPJ✓ 8 075 13 005

Discount cancelled GJ✓ 425 13 430

- 2 for incorrect/no details

(15)

Note:

In the debtors and creditors individual accounts, there is no double entry. It is common practice to just state the document only or if there is no document to give details, e.g. discount cancelled.

QUESTION 5

5.1 SALARY SCALE [10]


134 400 ÷ 12 = R11 200 ✓✓


134 400 + 13 320 + 13 320 = R161 040 ✓

5.1.3 What will his monthly increase be in her 5th year of employment? (3)

15 000✓ ÷ 12✓ = R1 250✓


R134 400 (1st); R147 720 (2nd); R161 040 (3rd); R174 360 (4th); R189 360 (5th); R204 360 (6th); R219 360(7th); ✓

*[Refer to the table below] Seventh year

* Details of the salary scale:

Year Increase Annual

salary

Monthly

salary

1 134 400 11 200

2 13 320 147 720 12 310

3 13 320 161 040 13 420

4 13 320 174 360 14 530

5 15 000 189 360 15 780

6 15 000 204 360 17 030

7 15 000 219 360 18 280



18 025 – 5 125 = R12 900 ✓✓


(3)

525 ✓ x 100 = 3%

17 500✓

5.2.3 The business pays R1.50 for every R1 paid by the employee in respect of Medical Aid. Calculate the total amount paid to Disck Medical Aid based on this salary

slip.

(3)

400 x 1.5 = R600 ✓✓

600 + 400 = R1 000

5.2.4 Determine the Pension Fund policy with regards to employee deductions and

employers contribution. Show calculations.

(6) 1 400/17 500 x 100 = 8% ✓✓ 1 925/17 500 x 100 = 11% ✓✓

Employee pays 8% and the business contributes 11%. 19% goes to the pension fund on behalf of each employee. ✓✓

5.2.5 Calculate the total cost to the business with regards to Phumza’s salary for this

month. (6)

18 025✓ + 1 925✓ + 175✓ + 600 + 175✓ = R20 900

[Cost to company = Gross salary + Contributions]

1. .

Documents

JUNE EXAMINATION PAPER - newera.netelligent.co.zanewera.netelligent.co.za/wp-content/uploads/2017/07/Gr-10-June... · JUNE EXAMINATION PAPER ... 4 Invested R15 000 in a Fixed deposit