EXAMINATIONS COUNCIL OF ESWATINI

Junior Certificate Examination

CANDIDATE
NAME

CENTRE CANDIDATE
NUMBER NUMBER

BOOKKEEPING AND ACCOUNTS 520/02

Paper 2 October/November 2022

2 hours

READ THESE INSTRUCTIONS FIRST

1. Write your name, Centre number and candidate number on the spaces provided.
2. Answer all questions.
3. Write your answers using a blue or black pen in the spaces provided.
4. Marks are given in [ ] at the end of each question or part question.
5. Special attention must be paid to legibility and neatness.
6. Name(s) of businesses/persons used in this paper are fictitious.
7. You may use a calculator.
For Examiner’s use

1.

2.

3.

4.

5.

TOTAL

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This question paper consists of 16 printed pages.

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2 Examiners
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QUESTION 1

Zamile Grocery Shop issued the following invoice to Thuli Dombolo, a customer.

INVOICE
NO: 1031

ZAMILE GROCERY
P.O. BOX 20
BHUNYA
TEL: 2435 1000

(i)
P.O. BOX 3921
BHUNYA 31 March 2022

Description Quantity Unit price Total price

E E
Maize mealie meal 5kg 2 50.00 100.00
White sugar 2kg 1 (ii) 35.00
Milk 2L (iii) 20.00 80.00
Rice 2kg 3 15.00 (iv)
Brown bread 800g 5 (v) 45.00
Niknaks 100g (vi) 8.00 48.00
TOTAL (vii)
All prices include VAT

REQUIRED
(a) Calculate and fill in the missing figures from (i) to (vii) in Zamile Grocery’s invoice. [7]

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Zamile Grocery shop also issues receipts and credit notes as part of some the source
documents used when doing business.
REQUIRED
(b) (i) What is an invoice issued?
……………………....……………………………………………………..………..

……………………...……………………………………………………...………..

……………………...…………………………………………………………..…… [2]

(ii) State two reasons for keeping source documents.

Reason 1
……………………...……………………………………………………...………..

……………………...…………………………………………………………..……

Reason 2

……………………...……………………………………………………...…………

……………………...…………………………………………………………..…… [2]

(iii) When may Zamile Grocery issue a credit note?

……………………....……………………………………………………..…………

……………………...……………………………………………………...…………

……………………...…………………………………………………………..……. [2]

(iv) Explain one reason why Thuli Dombolo may return goods to Zamile Grocery?
……………………....……………………………………………………..…………

……………………...……………………………………………………...…………

……………………...…………………………………………………………..……. [2]

(v) What does VAT stand for?

………………………………………………………………………..……………… [1]

(vi) State the purpose of charging VAT.

…………………………………………………………………..……..……………. [1]

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Zamile Grocery follows the principle of double entry when recording items in the ledger
accounts.
REQUIRED
(c) Identify the concept that Zamile Grocery follows and explain it.
Concept ………………………………………….…………………………….……

Explanation

…………………………………………………………………….……….…………

.…………………………………………………..……………….………….……….

….……………………………..………………………………………..…………..... [3]

[Total marks: 20]

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QUESTION 2
The ledger is one of the books used when recording in the books of accounts.
REQUIRED
(a) (i) Define a ledger.
.........…..............……………………………………………………………………

.....................………………………………………………………………………..

................…………………………………………………………………………… [2]

(ii) State two advantages of dividing the ledger.

Advantage 1

.........…..............……………………………………………………………………

Advantage 2

.........…..............……………………………………………………………………. [2]

Accounts can be classified as nominal, personal, real and proprietary.

REQUIRED
(b) Indicate whether the given items are nominal, personal, real or proprietary
accounts and state the type of balance of each account.
The first one has been done as an example.
Item Type of account Type of balance
e.g. Advertising Nominal Debit
1 Sales

2 Drawings

3 Insurance

4 Land and buildings

5 Trade payables

[10]

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Mbali had the following items in her books of accounts in the month of May 2022.
2022 E
May 1 Purchases account opening balance 2000
3 Goods bought on credit from S. Dlamini 800
9 Bought inventory by cheque 1200
14 Mbali took goods for private use 100
20 Goods bought for cash 500

REQUIRED
(c) Prepare a purchases account in Mbali’s books of accounts.
(a) Purchases account

[6]

[Total marks: 20]

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QUESTION 3
Nosipho, a trader, buys and sells goods on credit and cash basis. The following
transactions took place during the month of June 2022.
2022
June 5 Sold goods to Bayabonga at E800 less 10% trade discount
7 Bayeta bought goods on credit from Nosipho for E600
12 Sold goods to Buhle for E300
REQUIRED
(a) Prepare Nosipho’s Sales Journal for the month ended 30 June 2022.

Sales Journal Debit (E) Credit (E)

[5]
(b) Post to Bayabonga account and sales account.

Bayabonga account

Sales account

[2]

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( c) Explain two differences between trade and cash discount.

..…………………………………………………………………………………………..…

.………………………………………………………………………………………………

.……………………………………………………………………………………..……….

..................................................................................................................................

.………………………………………………………………………………..………….…

.………………………………………………………………………………..………….…

..................................................................................................................................

………………………………………………………………………………………..…….. [4]

The following balances were taken from the books of Sivuno Enterprise on 1 July 2022.
E
Insurance prepaid 3 000
Commission payable accrued 500
Trade receivable 6 700
Trade payables 3 400
Bank overdraft 6 600
Motor vehicle 24 000
Inventory 3 100
Capital ?

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REQUIRED
(d) Prepare Sivuno Enterprise’s opening statement as at 1 July 2022.
Sivuno Enterprise
Opening statement as at 1 July 2022
Debit (E) Credit (E)

[9]
[Total marks: 20]

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QUESTION 4
Minenhle prepared the following Trial balance on 31 July 2022.
Trial Balance as at 31 July 2022
Debit (E) Credit (E)
Inventory/stock 1 500
Revenue/sales 12 000
Motor vehicles 90 000
Purchases 8 800
Returns inwards 100
Carriage inwards 500
Discount received 150
Rent 2 900
Bank 3 500
Stationery 340
Capital 95 490
107 640 107 640

After the preparation of the trial balance Minenhle discovered that there were errors
which were not revealed by the trial balance.
1. Cheque for E2500 received for goods sold was not recorded in the books of accounts
2. Discount received and stationery account were both overstated by E20
3. Returns inwards for E200 were entered in the carriage inwards account

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REQUIRED
(a) (i) Correct the errors 1-3. Narrations are required.
Debit (E) Credit (E)

[9]

(ii) Prepare a corrected trial balance after the correction of the errors.

Minenhle’s Trial Balance as at 31 July 2022

Debit (E) Credit (E)

[6]

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(b) Use a tick (✔) to classify the following items from the books of Minenhle as non-
current assets, current assets, non-current liabilities and current liabilities.
The first one has been done as an example.
Items Non- Current Non- Current
current assets current liabilities
assets liabilities
Inventory/stock ✔

(a) Bank

(b) Motor vehicles

(c) Unused stationery

(d) Repairs still owing

(e) Rent paid in advance

[5]
[Total marks: 20]

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QUESTION 5
The following transactions took place in Meme’s business during the year ended
31 August 2022.
1 Furniture was purchased for E10 000 by cash
2 Wages for E3 500 were paid by cheque
3 A cheque for E6 000 was received for old furniture sold at net book value
4 Telephone bill for E500 paid in advance by cheque
REQUIRED
(a) State the effect of recording the transactions on profit for the year, non-current
and current assets.
Write increased, decreased or no effect to answer this question.
The first one has been completed as an example.

Effect on profit Effect on non- Effect on current

for the year current assets assets

Increased by Decreased by
Transaction 1 No effect
E10 000 E10 000
Transaction 2
Transaction 3
Transaction 4

[9]
Thulebona Stationey Shop had the following balances on 31 September 2022:
E
Inventory 1 700
Cash on hand 4 500
Drawings 2 000
Furniture and fittings 30 000
Office equipment 15 000
Loan from XYZ Bank 20 000
Trade payables 5 000
Trade receivables 8 000
Capital 25 000
Profit for the year 5 200

Additional information:
1. Interest on loan owing E400
2. Thulebona Stationery Shop had paid E400 rent in advance
3. Depreciation on furniture and fittings was 10% per year and 20% depreciation on
office equipment per year

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(b) Prepare a statement of financial position of Thulebona Stationery Shop as at 31 September 2022.

[11]
[Total marks: 20]

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