Grade 11 · CAPS

Grade 11 Budgeting

Accounting practice questions and a worked example

Grade 11 Accounting budgeting questions give you a cash budget with gaps and the business’s sales, collection and payment patterns. You complete the debtors collection schedule, calculate missing amounts such as cash sales, payments to creditors and a loan worked back from its interest, and explain differences between actual and budgeted figures. They come from the Eastern Cape Department of Education’s Grade 11 November papers for 2023, 2024 and 2025, each with the answer from the marking guideline.

Worked example

QUESTION 3: BUDGETING SHEPSTONE STORES Information from the records is for the budget period ending 31 December 2023. The business, owned by Cloe Dash, sells furniture. 3.3 (b) The salaries of office workers will increase by 4% in December. Explain TWO points why they should be satisfied with the increase they will receive in December.

Answer

Any TWO reasons: • Lucky to be employed / state of the economy • At least it is an increase: they can afford to maintain their standard of living • Close to the inflation rate • Managers only got a 2,5% increase

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Budgeting

Question 1 of 3

QUESTION 3: BUDGETING SHEPSTONE STORES Information from the records is for the budget period ending 31 December 2023. The business, owned by Cloe Dash, sells furniture. 3.1 Complete the Debtors Collection Schedule presented in the ANSWER BOOK.

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More practice questions

Explore additional Grade 11 Budgeting questions.

  • 2
    QUESTION 3: BUDGETING SHEPSTONE STORES Information from the records is for the budget period ending 31 December 2023. The business, owned by Cloe Dash, sells furniture. 3.4 Cloe plans to purchase a delivery a vehicle during December 2023, and offer a free delivery service in the new year.
    3.4.1 Calculate the total cost to the business, for the purchase of this delivery vehicle (including interest and finance charges).
  • 3
    QUESTION 3: BUDGETING SHEPSTONE STORES Information from the records is for the budget period ending 31 December 2023. The business, owned by Cloe Dash, sells furniture. 3.4 Cloe plans to purchase a delivery a vehicle during December 2023, and offer a free delivery service in the new year.
    3.4.2 Identify TWO additional items that must be included on the budget once the vehicle is purchased.
  • 4
    QUESTION 3: BUDGETING SHEPSTONE STORES Information from the records is for the budget period ending 31 December 2023. The business, owned by Cloe Dash, sells furniture. 3.4 Cloe plans to purchase a delivery a vehicle during December 2023, and offer a free delivery service in the new year.
    3.4.3 Besides the possibility of increased sales, explain TWO other advantages of the business purchasing the vehicle.
  • 5
    QUESTION 3: BUDGETING 3.1 MOSES TRADERS The following information has been taken from the books of Moses Traders, a sole proprietor. 3.1.1 Name any TWO items that would not appear in the Cash Budget.

Common mistakes

  • Forgetting the discount for debtors who pay in the month of sale. November collections from November credit sales are 388 500 × 40% × 95% = 147 630.
  • Paying creditors on the selling price. With a 75% mark-up, purchases are sales × 100/175: 647 500 × 100/175 = 370 000.
  • Putting non-cash items in a cash budget. Bad debts, discount allowed, discount received and drawings of stock do not appear.

More Grade 11 Accounting topics

Budgeting in other grades

Aligned to CAPS Grade 11 Accounting — Budgeting. Curriculum source: CAPS for the FET Phase, Department of Basic Education.

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