Grade 12 · CAPS

Grade 12 Budgeting

Accounting practice questions and a worked example

Grade 12 budgeting covers the Cash Budget, the Projected Statement of Comprehensive Income and the schedules that feed them. The questions here ask you to complete a Debtors' Collection Schedule or a Creditors' Payment Schedule, calculate missing amounts such as rent, salaries, interest on a loan and payments to creditors, decide which items belong in which budget, and compare budgeted with actual figures. They come from the NSC Paper 2 for November 2023, 2024 and 2025, each with the answer from the marking guideline.

Worked example

QUESTION 3: BUDGETING The information relates to Sunday Stores (Pty) Ltd. The business is owned by Adam Stevens. 3.1 Refer to Information B. Identify: (a) TWO items that were incorrectly recorded in the Cash Budget.

Answer

Any TWO of: • Discount received • Bad debts • Depreciation

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Budgeting

Question 1 of 3

QUESTION 3: BUDGETING The information relates to Sunday Stores (Pty) Ltd. The business is owned by Adam Stevens. 3.2 Complete the Debtors' Collection Schedule for December 2023. [The ANSWER BOOK shows credit sales: September 535 500; October 640 500; November 651 000; December 682 500.]

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More practice questions

Explore additional Grade 12 Budgeting questions.

  • 2
    QUESTION 3: BUDGETING The information relates to Sunday Stores (Pty) Ltd. The business is owned by Adam Stevens. 3.1 Refer to Information B. Identify: (b) TWO items in the Cash Budget that would NOT appear in a Projected Statement of Comprehensive Income.
  • 3
    QUESTION 3: BUDGETING The information relates to Sunday Stores (Pty) Ltd. The business is owned by Adam Stevens. 3.3 Refer to Information A and B. Calculate the amounts indicated by (i) to (iv). (iii) Payments to creditors in December 2023
  • 4
    QUESTION 3: BUDGETING The information relates to Sunday Stores (Pty) Ltd. The business is owned by Adam Stevens. 3.3 Refer to Information A and B. Calculate the amounts indicated by (i) to (iv). (iv) Rent expense for November 2023
  • 5
    QUESTION 3: BUDGETING The information relates to Sunday Stores (Pty) Ltd. The business is owned by Adam Stevens. 3.4 Refer to Information G (budgeted and actual figures). 3.4.1 In order to increase sales, Adam decided to change the way in which the salespeople are paid each month from 1 November 2023. The salespeople agreed to the change. (a) Explain the changes that Adam made.

Common mistakes

  • Putting non-cash items in the Cash Budget. Depreciation, bad debts and discounts are not cash flows; they belong in the Projected Statement of Comprehensive Income.
  • Forgetting the settlement discount in a schedule. When debtors who pay in the month of sale get a discount, the cash collected is the credit sales x the percentage collected x (100% – the discount).
  • Comparing budgeted and actual figures without quoting them. Give both amounts, or the difference, in every comment.

More Grade 12 Accounting topics

Budgeting in other grades

Aligned to CAPS Grade 12 Accounting — Budgeting. Curriculum source: CAPS for the FET Phase, Department of Basic Education.

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