ACCOUNTING JUNE EXAMINATION GRADE 11

Transcription

1 1 ACCOUNTING JUNE EXAMINATION 2015 GRADE 11 MARKS: 300 TIME: 3 HOURS This Question paper consists of 13 pages and 11 pages Answer book

2 INSTRUCTIONS AND INFORMATION 2 1. You are provided with a question paper and an ANSWER BOOK. 2. This question paper consists of FIVE compulsory questions. Answer ALL the questions. 3. Use the formats provided in the answer book to answer the questions. 4. Where necessary WORKINGS must be shown in order to achieve part-marks. 5. You must try to keep to the time as proposed. 6. Non-programmable calculators may be used. QUESTION 1: 75 marks; 45 minutes Main topic of the question: Bank reconciliation Creditors reconciliation This question integrates; Financial accounting: Internal Control Financial accounting: Internal Control QUESTION 2: 57 marks; 34 minutes Main topic of the question: Fixed Assets Main topic of the question: Partnership Main topic of the question: Ratio Analysis Main topic of the question: Clubs This question integrates; Managing resources: Ledger accounts, Internal control, Ethics QUESTION 3: 92 marks; 55 minutes This question integrates; Financial accounting: Preparation of Income statement QUESTION 4: 24 marks; 14 minutes This question integrates; Calculation of ratios Analysis & Interpretation of financial information QUESTION 5: 52marks; 32 minutes This question integrates; Financial accounting: Statement of receipt and payments, internal control

3 3 QUESTION 1 (75 marks, 45 minutes) 1.1 CONCEPTS 10 Choose the correct answer from the given possible answers, for example, A. Each question has only ONE correct answer A dishonoured cheque received from a debtor in settlement of his outstanding account is recorded in the journal. 2 A. Cash payment journal B. Cash receipts journal C. Debtors journal When comparing the cash journals of the entity with the bank statement, an error made by the entity must be corrected and an error made by the bank must be recorded 2 A. in the cash journal of the entity; nowhere B. in the cash journal of the entity; on the bank reconciliation statement C. on the bank reconciliation statement; in the cash journal of the entity A post-dated cheque received will be 2 A. recorded in the cash receipts journal B. recorded in the bank reconciliation statement C. filed until the date on the cheque is due What procedure will have to be followed if a cheque that was issued by an entity is stopped and replaced by another cheque? 2 (i). Cancel cheque in cash receipts journal (ii). Cancel cheque in cash payments journal (iii). Issued a new cheque in cash payments journal (iv). Enter newly issued cheque in bank reconciliation statement A. ii, iii,iv B. i, iii C. ii, iii D. i, iii,iv How will a post-dated cheque issued be recorded in the month of issuing? 2 A. Recorded in the cash receipts journal. B. Recorded on the bank reconciliation statement. C. Filed until the date on the cheque arrives. D. Recorded in the cash payments journal. E. Recorded in the cash payments journal and on the bank reconciliation statement as an outstanding cheque.

4 4 1.2 BANK RECONCILIATION; ANALYSIS 48 REQUIRED: Complete the Cash Journals of Logan Stores for April This business has a 24 banking account with Barklay Bank Post to the Bank account in the General Ledge, Balance the account Prepare the Bank Reconciliation Statement as at 30 April Answer the question which follows. 11 Information: BANK RECONCILIATION STATEMENT ON 31 MARCH 2015 Bank statement balance (Favourable) R Outstanding deposit Outstanding cheques: No No No Bank account balance? Provisional totals in the Cash Journal on 30 April 2015: Cash Receipts Journal: Bank R Sundry accounts Cash Payments Journal: Bank R Sundry accounts A comparison of the April 2015 bank statement with the Bank reconciliation Statement of March 2015 and the Cash journal revealed the following: * Cheque no has not been presented for payment as it had become stale. It was originally issued to the Childline Centre as a donation. * The outstanding deposit on 31 March 2015 appears on the April 2015 bank statement. * Cheque no has disappeared and cannot be found. The cheque must be cancelled. It had been issued to Portco Suppliers, a creditor. A new cheque will be sent to them during May * Cheque no which had been paid to Jackson Stores for goods bought appeared correctly on the bank statement as R This error must be corrected. * Credit card levies R789; interest on overdraft R189 and service fees R458 appear only on the April 2015 bank statement. * An electronic payment for R4 650 for rent paid by the tenant, Dwight Logistics, appears only on the Bank statement. * A deposit of R7 662 appears only in the cash journal. * The bank statement showed an unpaid cheque for R This cheque was originally

5 received from a debtor, Ms D. Fraught. * The following cheques did not appear on the April 2015 bank statement: No R2 445 No R3 675 No R2 120 (dated 12 May 2015) 5 * The following electronic payments (EFT s) have not yet been recorded in the cash journal: monthly advertisement placed in the Witness newspaper, R monthly mobile phone subscriptions to Comvoda, R689, The mobile phone belongs to the owner s son who is a medical student. monthly insurance premium for the shop premises to Madoff Brokers R * The bookkeeper was unsure about a cheque received from a customer Mr Jay Jolly, for R He did not record it as it had been dated 10 May * The bank statement had a balance of R??? on 30 April QUESTIONS: Your neighbour runs a small shop from her home. She has a cheque account at 6 FNB bank. She does not know about bank reconciliation as she did not do Accounting in school. Explain three major benefits of doing bank reconciliation What does the abbreviation EFT stands for? Identify two advantages of electronic banking (Internet banking) Suggest one reason as to why many people do not do Internet banking CREDITORS RECONCILIATION 17 BB Store has received a statement from a creditor, AMA Traders at the end of July The balance on the statement does not agree with that in the Creditors Ledger of BB Stores REQUIRED: Calculate the correct balance of AMA Traders in the books of BB Traders on 31 July Prepare a Creditor s Reconciliation Statement on 31 July 2014 to calculate the correct amount owing by BB Stores to AMA Traders 1 1 INFORMATION: AMA TRADERS DEBTOR S STATEMENT BB Stores PO Box 1019 Wandsbeck 3610

6 6 Statement : date: 25 July 2015 Debit Credit Balance 01- July Brought forward R July Invoice no July Receipts no July Invoice no July Credit Note no July Invoice no CREDITORS LEDGER OF BB Stores AMA TRADERS C1.12 Date Details Fol Dr Cr Balance 01-July Balance b/d R July Invoice no July Cheque no July Discount Received July Invoice no July Debit note no July Invoice no July Cheque no July Discount Received Additional information: BB stores have made the error in processing invoice no AMA Traders should have granted 10% discount on 5 July. Investigation showed that the amount on 15 July with regard to goods return by BB stores is correct in the books of AMA Traders QUESTION 2 (57 marks: 34 minute) FIXED ASSETS NOTE; ASSET DISPOSAL ACCOUNT REQUIRED: 2.1 Complete the Ledger Accounts in your Answer Book. Balance / close off the accounts on February Complete the Fixed Asset note to the Balance Sheet on 28 February Answer the questions in number The following balance appeared in the books of Sunshine Traders on 1 March 2014, the beginning of the financial year. Land and Building R

7 Vehicles Accumulated depreciation on vehicle Equipment Accumulated depreciation on equipment Information: Vehicles are depreciated at 20% p.a. on the fixed installment method. Equipment is depreciated at 25% p.a. on the diminishing balance method. 7 Transactions: 1. On 1 April 2014 extensions worth R were completed to the land and buildings. This amount was added on to the mortgage bond. 2. While the contract was on the premises the owner requested that they also paint the outside of the building at a cost of R The contractor was paid by cheque. 3. On 1 June 2014 new equipment was bought on credit for R less 10% trade discount. 4. On 1 October 2014 one of the vehicles with an original cost price of R and a book/carrying value of R was traded- in at a profit of R1 600 against a new vehicle bought on credit for R Questions Explain what Prudence concept means and how it applies to vehicles and equipment Why doland and Buildings not depreciate? 2 QUESTION 3 (84 marks: 50 minutes) 3.1 GAAP PRINCIPLES 10 Match the GAAP principles in COLUMN A with the correct transactions in COLUMN B write only the correct letter (A-E) next to the question number in your answer book. COLUMN A COLUMN B Materiality A The tenant has paid R35750 which includes rent for one month of the following year. Only R33000 recorded in the income statement Prudence B Although the cost prices of the stock items are fluctuating the stock is recorded at cost assuming that it will be sold some time in the future Matching C The directors fees must be reflected separately form salaries and wages

8 Going concern concept D Even though the market value of land and buildings is R2m recorded at the original purchase price of R Historical-cost concept E Money lost due to theft of stock is written off, even though there is a possibility that it may be recovered in future 3.2 FINANCIAL STATEMENT AND NOTES 74 REQUIRED: Use the information from the books of Fun-land Toys to prepare the following: Income Statement for the year ended 28 February Notes to the Financial Statement for the year ended 28 February Inventories Trade and other receivables Cash and Cash equivalents Trade and other payables 9 The following information was obtained from Fun- land Toys that belongs to Fun Smith and Tony Land they share profits in the ratio 2.1. Fun- land Toys Pre-adjustment trial balance as at 28 February 2015 Balance Sheet Accounts Section Debit Credit Capital : Fun Smith Capital : Tony Land Current account: Fun Smith Current account : Tony Land Drawings : Fun Smith Drawings : Tony Land Vehicles Equipment Accumulated depreciation on vehicles Accumulated depreciation on equipment Trading stock Debtors control Provision for bad debts Bank Creditors control SARS : PAYE Petty cash Cash float Mortgage loan

9 Fixed deposits (8%per annum) Nominal Account Section Sales Cost of sales Debtors allowances Salaries and wages Stationery Bad debts Insurance Interest on fixed deposit Interest on mortgage loan Rent expense Bank charges Sundry accounts Loss on sale of Assets Adjustments and additional information Trading stock worth R5 000 was donated to the local high school. 2. An account for R6 000 for carriage on trading stock bought was recorded as sundry expenses 3. Stock on hand as per physical stock count was as follows: Trading inventory R Stationery R Included in the insurance amount is an annual premium of R for the period 1 August 2012 to 31 July After the pre-adjustment trial balance was prepared, the bank statement was received. The following amounts had been debited to the bank account Credit card fee R340 Interest on debit balance R115 Cash handling fee R P. Pep, a debtor is declared insolvent. Received R as a final payment of 40c in the rand from the insolvent estate. Write the rest off as irrecoverable, no entries have been recorded for this transaction. 7. Provision for bad debts must be adjusted to R Part of the building has been leased from G Green from 1 September 2011 at R1 000 per month on condition that the rent increased annually with 10%. 9. The salaries increase with 8% on 1 January The salaries for February 2013 will be paid on 3 March The depreciation calculated for Equipment amount to R and on Vehicles is R The loan was granted on 31 December 2011 on the following conditions: Repayments are made in installments of R per annum, starting from 31 December Interest at 18% per annum is payable. 12. An additional fixed deposit of R was invested on 31 May The fixed deposit of R will mature on 1 March The partnership agreement stipulates the following:

10 10 - Interest on capital is calculated at 5% per annum. The partners decided on 1 March 2012 that the capital contribution must correspond with the profit sharing ratio. Fun Smith had to reduce his capital with 20% on 31 May 2012 while Tony Land increased his capital with R on 1 June Tony Land is entitled to a salary of R per annual because he works full time in the partnership. - Fun Smith is entitled to a bonus of 10% of the profit after the bonus was taken into account because he is responsible for the purchases of the toys. QUESTION 4 (24 marks 14 minutes) RATIOS Ratios for 2015 J&A Pet shop is situated in the Paarl Mall and owned by partners J Kotzee and A. Moller. The business`s financial year ends on 28 February each year. You are provided with extracts from the financial statements of J & A Pet shop. Round off answers to one decimal. Read through these and answer the questions that follow: J. Kotze and A. Moller Trading as J & A Pet Shop Income Statement for the year ended 28 February 2015 Note R R Sales Cost of sales ( ) ( ) Gross profit Operating expenses ( ) ( ) Salaries and wages Rent expense Bank charges Telephone, water and electricity Advertising Damaged stock written off Trading stock deficit Sundry expenses Operating profit(loss) (3 500) Interest expense (8 970) (15 600) Net profit(loss)for the year (19 100) Balance Sheet as at 28 February 2015 Note R R

11 11 Assets Non-current assets Fixed\ tangible assets Current assets Inventories Trade and other receivable Cash and cash equivalents TOTAL ASSETS Equity and liabilities Owner s equity Capital Current accounts Non-current liabilities Loan from XYZ bank( Current liabilities Trade and other payables TOTAL EQUITY AND LIABILITIES REQUIRED: 4.1 Calculate the following Ratios: Percentage gross profit on sales Percentage profit mark- up on Cost Percentage net profit on sales Current Ratio Acid test Stock turn over 4 QUESTION 5 (52 marks: 31 minutes) CLUBS You are provided with information relating to the Greendale Running Club for the year ended 30 June REQUIRED: 5.1 Prepare the Membership Fee Account Prepare the Refreshment Account Control of refreshments is the responsibility of one of the committee members, Mary Moss. The treasurer is concerned that some of the sales revenue has not been deposited in the bank. The club uses a 50% mark-up in setting its prices at all times. 4 Calculate the cash that appears to be missing. What advice would you offer to solve the problem now and in the future? Provide two points. 4

12 12 INFORMATION Information from the Balance Sheet at the beginning of the financial year, 1 July Stock of refreshments R2 600 Income receivable / accrued (membership fees for 2 members) Deferred income / Income received in advance (membership fees for 4 members) Creditors (for Refreshment) Information from the Statement of Receipts and Payments for the year ended 30 June RECEIPTS Entrance fees (R2 000 each) R Membership fees received For the 2013 financial year For the 2014 financial year For the 2015 financial year Refreshment sold PAYMENTS Refund of membership fees to a family of 3 members Refreshment bought by cheque Transport of refreshments to the club Additional information: 1. Fees charged to members are: Entrance fees for new members: R2 000 per person. Annual membership fees: R4 800 (or R400 per month) 2. The club had 53 members on its books on 1 July 2013 including the office bearers 3. By the end of 2014 financial year, two members were still outstanding for all or part of their membership fees for These two members were expelled from the club with effect from the beginning of the current financial year. The fees owed by them must be written off. 4. Honorarium of R3 000 is due to the treasurer. This will be offset against his fees for He will have to pay the difference to the club but this has not yet been done. 5. The following changes occurred to the membership of the club: A family of 3 members immigrated to Australia half way through the year. They had paid in full at the beginning of the year. The committee decided to refund half their fees.

13 13 Several new members joined on 1 April In addition to their entrance fees their membership fees will be calculated on a monthly basis for the unexpired portion of the financial year. 6. According to the list of outstanding membership fees on 30 June 2014 the following members owe fees in respect of members each owe fees for the full year. 8 members each owe fees for four months. The Treasurer owes the balance on his fees. 7. Certain refreshments have been bought on credit from Jerry s Juices. The statements of account for the year reflect the following: Balance owed to Jerry s Juices on 1 July 2013, R Balance owed to Jerry s Juices on 30 June 2014, R Payments to Jerry s Juices during the year, R Returns of refreshments to Jerry s Juices, R Refreshments on hand on 30 June 2014 were valued at cost R GRAND TOTAL: 300.

14 ACCOUNTING GRADE 11 June 2015 Name of learner: Name of school: Name of district: Question Marks Mod Total This answer book consist of 12 pages including the cover page 1

15 Question 1 (75 marks; 45 minutes) 1.1 Choose the correct answer from the given possible answers. Only one answer is correct. Write only the letter of the correct answer (10) Cash Receipts Journal of Logan Stores for April 2015 Sundry accounts Doc Day Details Fol. Bank Amount Fol. Details of sundry (10) 2

16 Cash Payments Journal of Logan Stores for April 2015 Sundry accounts Doc Day Details Fol. Bank Amount Fol. Details of sundry (14) GENERAL OF LOGAN STORES Dr BANK ACCOUNT Cr Date Details Fol. Amount Date Details Fol. Amount (6) 3

17 1.2.3 Bank reconciliation statement as at 30 April 2015 Dr. Cr. (7) Questions Explain three major benefits of doing bank reconciliation. (6) What does the abbreviation EFT stands for? (1) Identify two advantages of electronic banking (Internet banking)? (2) Suggest one reason as to why many people do not use internet banking (2) (11) 4

18 1.3 Creditors reconciliation Calculate the correct balance of AMA Traders in the books of BB Traders (6) Creditors Reconciliation statement as at 31 July 2014 Dr Cr (11) Question 2 (57 marks; 34 minutes) 2.1 GENERAL OF SUNSHINE TRADERS BALANCE SHEET ACCOUNTS SECTION Dr VEHICLES ACCOUNT Cr Date Details Fol. Amount Date Details Fol. Amount (5) 5

19 Dr ACCUMULATED DEPRECIATION ON VEHICLES ACCOUNT Cr Date Details Fol Amount Date Details Fol Amount (11) Dr ASSET DISPOSAL ACCOUNT Cr Date Details Fol Amount Date Details Fol Amount 2.3 Questions (11) Explain what prudence concept means and how does it apply to vehicles and equipment (4) Why land and building do not depreciate? (2) (6) 6

20 2.2 Note no 3 to balance sheet Fixed /tangible assets Land & Buildings Vehicles Equipment (24) Question 3 (92 marks; 55 minutes) 3.1 Match the GAAP principle in column A with the correct transactions in column B. Write only the correct letter in the answer book (10)

21 3.2 Income Statement of Fun-land Toys for the year ended on 28 February 2015 (54) 8

22 3.3 Notes to balance sheet Inventory (7) Trade and other receivables (8) Cash and cash equivalents (4) Trade and other payables 9 (9)

23 Question 4 (24 marks; 14 minutes) 4.1 Ratios Calculate the percentage gross profit on sales (4) Calculate the percentage profit mark up on cost (4) Calculate the percentage net profit on sales (4) Calculate the current ratio (4) Calculate the acid test ratio (4) Calculate the stock turnover rate (4) (24) 10

24 Question 5 (52 marks; 32 minutes) 5.1 General ledger of Greendale club Nominal accounts section Dr Membership fees Cr Date Details Amount Date Details Amount (24) 5.2 Dr Refreshments A/c Cr Date Details Amount Date Details Amount (20) 11

25 5.3 Control of refreshments is the responsibility of one of the committee members. The treasurer is concerned that some of the sales revenue has not been deposited in the bank. The club uses a 50% mark up in setting its prices at all times. Calculate the cash that appears to be missing. (4) What advice would you offer to solve the problem now and in the future? Provide two points (4) TOTAL (300) 12

26 ACCOUNTING GRADE 11 June 2015 Memorandum Marking Principles: 1. Full marks for correct answer. If answer incorrect, mark the workings provided. 2. Where method marks are awarded for operation, the marker must inspect the reasonableness of the answer before awarding the mark. 3. Where applicable part-marks may be awarded to differentiate between differing qualities answers from candidates. 4. In awarding method marks, ensure that candidates do not get full marks for any item that is incorrect at least in part. Question 1 (75 marks; 45 minutes) 1.1 Choose the correct answer from the given possible answers. Only one answer is correct. Write only the letter of the correct answer A B C D E 1 (10)

27 1.2.1 Cash Receipts Journal of Logan Stores for April 2015 Sundry accounts Doc Day Details Fol. Bank Amount Fol. Details of sundry Totals Childline center Donations 3410 Portco Suppliers Creditors control 3470 Jackson Stores Trading stock B/S Dwight Logistics Rent income (10) Cash Payments Journal of Logan Stores for April 2015 Sundry accounts Doc Day Details Fol. Bank Amount Fol. Details of sundry Totals Barclay Bank Bank charges Barclay Bank 189 Interest on overdraft Ms D. Fraught Debtors control Witness Advertisement Comvoda Drawings Madoff Brokers Insurance (14) 2

28 1.2.2 GENERAL OF LOGAN STORES Dr BANK ACCOUNT Cr Date Details Fol Amount Date Details Fol Amount 2015 April 1 Balance b/d April 30 Total payments CPJ Total Receipts CRJ Balance c/d May 1 Balance b/d (6) Bank reconciliation statement as at 30 April 2015 Dr. Cr. Cr balance as per bank statement Cr outstanding deposit Dr outstanding cheques: No.3610 No No Dr balance as per bank account (7) 3

29 1.2.4 Questions Explain three major benefits of doing bank reconciliation. (6) Ensure that books are up to date and corresponds with banks records Enables detection of errors/ omissions/ irregularities Monitor electronic payments and transfers What does the abbreviation EFT stands for? (1) Electronic funds transfer Identify two advantages of electronic banking (Internet banking)? (2) Safety Convenience Suggest one reason as to why many people do not use internet banking (2) Fear of hackers, internet fraud People do not have internet facilities (11) 1.3 Creditors reconciliation Calculate the correct balance of AMA Traders in the books of BB Traders = R3 457 (6) Creditors Reconciliation statement as at 31 July 2014 Dr Cr Dr balance as per statement Cr discount not granted 320 Cr amount paid but not yet reflected on the statement Cr discount not yet reflected on the statement Cr balance as per account in the Creditors ledger (11) 4

30 Question 2 (57 marks; 34 minutes) 2.1 GENERAL OF SUNSHINE TRADERS Dr VEHICLES ACCOUNT Cr Date Details Fol Amount Date Details Fol Amount 2014 April 1 Balance b/d Oct 30 Asset disposal GJ Oct 3 0 Creditors control CJ Feb Balance c/d March 1 Balance b/d (5) Dr ACCUMULATED DEPRECIATION ON VEHICLES ACCOUNT Cr Date Details Fol Amount Date Details Fol Amount 2014 Oct 1 Asset disposal Mar 1 Balance b/d Feb 28 Balance c/d Oct 1 Depreciation Feb 28 Depreciation ( ) Mar 1 Balance b/d (11) 5

31 Dr ASSET DISPOSAL ACCOUNT Cr Date Details Fol Amount Date Details Fol Amount 2015 Oct 1 Vehicles GJ Oct 1 Accumulated depreciation on vehicles GJ ( ) Profit on sale of asset GJ 1600 Creditors control GJ (11) 2.2 Note no 3 to balance sheet Fixed /tangible assets Land & Buildings Vehicles Equipment Carrying value at the beginning of the year Cost price Accumulated depreciation (62 000) (36 000) Movements Additions at cost Disposal at carrying value (20 650) 0 Depreciation (39 750) (19 719) Carrying value at the end of the year Cost price Accumulated depreciation (59 400) (55 719) (24) 6

32 2.3 Questions Explain what prudence concept means and how does it apply to vehicles and equipment (4) Be realistic in the presentations of figures Vehicles and equipment loose value over time Why land and building do not depreciate? (2) The value of land and buildings appreciate over time. (6) Question 3 (92 Marks; 55 minutes) 3.1 Match the GAAP principle in column A with the correct transactions in column B. Write only the correct letter in the answer book C E A B D (10) 7

33 3.2 Income Statement of Fun-land Toys for the year ended on 28 February 2015 Sales ( ) Cost of sales ( ) Gross profit Other operating income 300 Provision for bad debts adjustment ( ) 300 Gross operating income Operating expenses ( ) Salaries and wages ( ) Rent expense ( ) Stationery ( ) Bad debts ( ) Insurance ( ) Bank charges ( ) Sundry expenses ( ) Donations Loss on sale of asset 460 Trading stock deficit ( ) Depreciation ( ) Operating profit Interest income ( ) Operating profit before interest expense Interest expense ( ) (69 115) Net profit for the year ) (54) 8

34 3.3 Notes to balance sheet Inventory Trading stock ( ) Consumable stores on hand (7) Trade and other receivables Debtors control ( ) Less provision for bad debts (11 200) Net trade debtors Income accrued Prepaid expense (8) Cash and cash equivalents Petty Cash Cash float Fixed deposit (Matured) (4) Trade and other payables Creditors control SARS (PAYE) Current portion of the loan Accrued expense ( ) Bank overdraft (9) 9

35 Question 4 (24 marks; 14 minutes) 4.1 Ratios Calculate the percentage gross profit on sales (4) x 100 = 28.5% Calculate the percentage profit mark up on cost (4) x 100 = 40% Calculate the percentage net profit on sales (4) x 100 = 2.3% Calculate the current ratio (4) : : Calculate the acid test ratio (4) : : Calculate the stock turnover rate (4) = 6.7 %

36 Question 5 (52 marks; 32 minutes) 5.1 General ledger of Greendale club Nominal accounts section Dr Membership fees Cr 2013 July 2014 June 1 Income receivable July 30 Bank June 1 Deferred income Bank Deferred income Membership fees written off Income & expenditure Honorarium Income receivable Calculation of membership fees written off ( ) (24) 5.2 Dr Refreshments Cr 2013 July 2014 June 1 Stock of refreshments July 30 Bank June 1 Creditors Stock of refreshments Bank Bank Creditors control* Income & expenditure *Calculation of refreshments bought on credit: = (20) 11

37 5.3 Control of refreshments is the responsibility of one of the committee members. The treasurer is concerned that some of the sales revenue has not been deposited in the bank. The club uses a 50% mark up in setting its prices at all times. Calculate the cash that appears to be missing. (4) Sales should be = R (50% of R65 500) = R Deposited Missing = R = R6 250 What advice would you offer to solve the problem now and in the future? Provide two points (4) Weekly /monthly stock count Weekly /monthly calculation of gross profit 12