Photo AI
1.1 Choose the correct answer from the words provided within brackets - NSC Accounting - Question 1 - 2017 - Paper 1
Question 1
1.1 Choose the correct answer from the words provided within brackets. Write only the answer, next to each number (1.1.1-1.1.4) in the ANSWER BOOK. 1.1.1 A stale ch... show full transcript
Worked Solution & Example Answer:1.1 Choose the correct answer from the words provided within brackets - NSC Accounting - Question 1 - 2017 - Paper 1
Step 1
Calculate the correct Debtors Control balance on 30 June 2017.
Answer
To determine the correct Debtors Control balance, we need to correct the errors and omissions provided. The initial balance is R74,600.
-
Correct the overcast of R3,500:
- Correct Debtors Control: R74,600 - R3,500 = R71,100
-
Add the allowance granted of R800:
- Correct Debtors Control: R71,100 + R800 = R71,900
-
Correct the error for goods sold on credit to Botha:
- The incorrect posting was R3,600 instead of R6,300, thus:
- Difference to add: R6,300 - R3,600 = R2,700
- Correct Debtors Control: R71,900 + R2,700 = R74,600
-
Reflect the cheque return from Pillai (R230):
- Correct Debtors Control will remain the same as we adjust to reflect non-payment only after recording new debts.
Thus, the correct Debtors Control balance on 30 June 2017 is R74,600.
Step 2
Calculate the correct balances for the debtors listed in the ANSWER BOOK.
Answer
-
Pillai: The corrected balance is R21,600 - R800 allowance = R20,800.
-
Tele: The corrected balance is R24,900 - R2,500 = R22,400.
-
Botha: The corrected balance is R11,100 + R2,700 = R13,800.
-
Bosman: The balance remains the same = R21,600.
Step 3
Calculate the percentage of debtors that are not complying with the 30 days credit terms.
Answer
Calculate the total amount of debtors who are not complying with the 30 days credit terms:
Non-compliant debtors = R36,440 + R28,000 + R8,400 = R72,840
Total Debtors = R70,000
Percentage of non-compliant debtors: rac{72,840}{70,000} imes 100 = 104 ext{%}
Since percentages > 100% indicate serious compliance issues, review credit terms.
Step 4
Explain TWO internal control measures that JT Traders can use to ensure that only reliable clients are granted credit.
Answer
-
Perform credit checks: Regularly conduct credit checks on potential customers to assess their creditworthiness. This can include checking their employment history and previous financial behavior.
-
Verify contact details: Ensure you have accurate residential and postal addresses along with contact numbers for clients. This allows the business to reach out in case of payment issues, enhancing follow-up.