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The information relates to JR Sanitizers (Pty) Ltd - NSC Accounting - Question 3 - 2022 - Paper 2
Question 3
The information relates to JR Sanitizers (Pty) Ltd. The CEO is Juanita Rose. James Peter is the bookkeeper. 3.1 Complete the Creditors' Payment Schedule for Decembe... show full transcript
Worked Solution & Example Answer:The information relates to JR Sanitizers (Pty) Ltd - NSC Accounting - Question 3 - 2022 - Paper 2
Step 1
Complete the Creditors' Payment Schedule for December 2022.
Answer
To complete the Creditors' Payment Schedule for December 2022:
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Calculate the total creditors' payments using the formula:
Total Payments = Purchases × Payment Percentage
For December, this would be:
Payments = 66,300 × 95% = 62,985
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Ensure all previous creditors amounts are accounted for:
Total = Previous Payments + New Payments
Total = 300,900 + 60,180 + 331,500 + 62,985 = 312,120.
Step 2
Step 3
Step 4
Juanita is concerned about the cash position for December 2022. She proposes moving the purchase of the vehicle to January 2023.
Answer
To show this effect on the December 2022 Cash Budget:
Budgeted deficit at 31 December 2022: = ($120,000)
Deposit on vehicle: = 151,200
Monthly installment: = (18,900 + 1,900) = 20,800
Fuel for company vehicle: = 7,500
Cash surplus after proposed changes: = 62,700.
Step 5
Explain why Juanita should be concerned about the actual amount spent on repairs and maintenance during October 2022. Quote a figure or a calculation.
Answer
Juanita's concern stems from the actual expenditure being R22,000, which is R8,000 less than the budget of R30,000. This constitutes a 26.6% underspend, which could imply that essential maintenance was neglected, potentially leading to higher future costs.
Step 6
James feels that there has been a lack of control over the amounts spent on delivery expenses and packing material. Explain why James' opinion is correct or not. Provide calculations.
Answer
James's concern is valid as delivery expenses were over budget by R4,390. Calculating packing materials shows expenditures exceeded budgeted costs by R14,486. These variances indicate a lack of control over costs.
Step 7
Name THREE additional payments that must be included in the January 2023 budget.
Answer
To enhance online shopping capabilities, the following payments should be included in the January 2023 budget:
- Additional courier services/transport and carriage costs.
- IT support/maintenance for the online platform.
- Additional advertising costs to promote the new platform.