Question $1[25$ marks$]$

Businesses often rely on strong accounting and record$-$keeping practices to ensure

accurate financial management and legal compliance. Based on this, answer the

following:

a$)$ Explain the difference between accounting and bookkeeping. Provide examples

to highlight how these two functions are applied in a business. $(5$ marks$)$

b$)$ Define profit and explain its importance for a business. Use examples to show

how profit is calculated. $(5$ marks$)$

c$)$ Differentiate between service businesses and trading businesses and give two

real$-$world examples of each. $(5$ marks$)$

d$)$ Discuss the various forms of business enterprises and provide one advantage

and one disadvantage of each form. $(10$ marks$)$

Question $2[24$ marks$]$

Jenz Wholesalers supplied goods worth R$45,000$ to ABC Traders on credit. Upon

inspection, BMGS Traders found that goods $5$ items worth R$9,000$ were damaged and

needed to be returned.

a$)$ Discuss the difference between a debit note and a credit note and explain their

purposes in accounting. $(6$ Marks$)$

b$)$ Explain the process of issuing a debit note and identify when it is appropriate for

the buyer to issue one $(5$ Marks$)$

c$)$ Prepare a debit note for the goods being returned by BMGS Traders to Jenz

Wholesalers, ensuring all necessary information is included. $(10$ Marks$)$

d$)$ Calculate the adjusted total payable by BMGS Traders after accounting for the

debit note. $(3$ Marks$)$

Question $3[25$ Marks$]$

a$)$ Zee Enterprises is a VAT vendor selling goods and services. During the

month, the business made the following transactions:

$-$ Sold goods worth R$100000($VAT inclusive$)$ to a customer.

$-$ Purchased goods worth R$50000($VAT exclusive$)$ from a supplier.

$-$ Returned goods worth R$5000($VAT exclusive$)$ to the supplier.

Required:

i$)$ Explain what a VAT vendor is and why businesses register as VAT vendors.

$.(5$ marks$)$

ii$)$ Calculate the net VAT payable to SARS or refundable by SARS for Zee

Enterprises. $($show calculations$)(10$ marks$)$

b$)$ Complete the following table below of Balist Traders a footwear retailer.

Assume standard VAT at the current SARS rate. $(10$ marks$)$

VAT exclusive cost of a pair of shoes R $1500\mathrm{.}00$

VAT on the cost of a pair of shoes

VAT inclusive cost of a pair of shoes

Mark$-$up $\%60\%$

VAT exclusive selling price of the pair of shoes

VAT on the selling price pair of shoes

VAT inclusive selling price of a pair of shoes

Gross profit earned per pair of shoes sold

Question $4[20$ Marks$]$

You are managing the cash transactions for a small business. During a business

day, the following sales occurred.

$-$ Customer A purchased groceries for R$1200$ and paid in cash.

$-$ Customer B bought electronics worth R$5800$ and paid using a credit card.

$-$ Customer C purchased clothes for R$3000$ and paid using a debit card.

Required;

a$)$ Explain what a cash transaction entails and how it differs from card$-$based

transactions $($credit and debit$)(5$ marks$)$

b$)$ Describe the difference between a cash receipt, deposit slip and an electronic

transfer, explaining their unique roles in documenting transactions.

$.(6$ marks$)$

c$)$ Calculate the total sales for the day and identify what portion of the sales was

made in cash, credit, and debit card payments $($Show all your calculations$).$

$(10$ marks$)$

Transaction Amount $($ R$)$ Payment Method

Question $5[6$ marks$]$

List the key information that should be included on the proof of an electronic transfer.