# Accounting Grade 11 P2 Eastern Cape November 2019 Memo (Eng) > Grade 11 Accounting Paper 2 memorandum from the Eastern Cape November 2019 (English), 11 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/2019-gr-11-accn-p2-memo-eng/740b8415-1fa6-420b-9476-b2e5c4525987 - Updated: 2026-09-27 - Subject: Accounting - Grade: Grade 11 - Document type: Memorandum - Year: 2019 - Exam period: Eastern Cape November - Paper: 2 - Curriculum: CAPS - Pages: 11 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 11](https://www.hlayiso.com/library/grade-11) › [Accounting](https://www.hlayiso.com/library/grade-11/accounting) › [Accounting Grade 11 P2 Eastern Cape November 2019 Memo (Eng)](https://www.hlayiso.com/library/2019-gr-11-accn-p2-memo-eng/740b8415-1fa6-420b-9476-b2e5c4525987) ## About this document Accounting · Grade 11 · Eastern Cape November · 2019. Memorandum, 11 pages. Read online or download the PDF. Read it free online on the page above; download the PDF from there. ## Document text Text extracted from the PDF. Layout, diagrams and tables may not survive extraction. ### Page 1 Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE GRADE 11 NOVEMBER 2019 ACCOUNTING P2 MARKING GUIDELINE MARKS: 150 MARKING PRINCIPLES: 1. Penalties for foreign items are applied only if the candidate is not losing marks elsewhere in the question for that item (no foreign item penalty for misplaced items). No double penalty applied. 2. Penalties for placement or poor presentation (e.g. details) are applied only if the candidate is earning marks on the figures for that item. 3. Full marks for correct answer. If the answer is incorrect, mark the workings provided. 4. If a pre-adjustment figure is shown as a final figure, allocate the part-mark for the working for that figure (not the method mark for the answer). NOTE: if figures are stipulated in memo for components of workings, these do not carry the method mark for final answer as well. 5. Unless otherwise indicated, the positive or negative effect of any figure must be considered to award the mark. If no + or – sign or bracket is provided, assume that the figure is positive. 6. Where indicated, part-marks may be awarded to differentiate between differing qualities of answers from candidates. 7. Where penalties are applied, the marks for that section of the question cannot be a final negative. 8. Where method marks are awarded for operation, the marker must inspect the reasonableness of the answer before awarding the mark. 9. 'Operation' means 'Check operation'. 'One part correct' means 'Operation and one part correct'. NOTE: Check operation must be +, –, x or ÷ or per candidates’ response. 10. In calculations, do not award marks for workings if numerator & denominator are swapped - this also applies to ratios. 11. In awarding method marks, ensure that candidates do not get full marks for any item that is incorrect at least in part. In such cases, do not award the method mark. Indicate by way of . 12. Be aware of candidates who provide valid alternatives beyond the marking guideline. 13. Codes: f = foreign item; p = placement/presentation. This marking guideline consists of 11 pages. ### Page 2 Downloaded from hlayiso.com 2 ACCOUNTING P2 (EC/NOVEMBER 2019) QUESTION 1 1.1.1 List TWO reasons for preparing the Bank Reconciliation Statement as an internal control process. Two reasons    To ensure that all entries relating to cash transactions are accurately recorded.  Fraudulent transaction can be detected.   Errors or omissions can be detected.  Outstanding cheques can be noted 2 1.1.2 State the adjustment that would be made to figures on the financial statements on 30 June 2019 end of the financial year in respect of post-dated cheques issued. Refer to the Bank Reconciliation Statement for June 2019. Include actual figures in your answers.  Creditors’ control  balance would be increased by R10 400   Bank  balance would be increased by R10 400 (to R12 400)  4 1.1.3 ITEM CRJ CPJ NO ENTRY Item 1 X Item 2 X Item 3 X Item 4 5 300  Item 5 1 450  Item 6 720  Item 7 2 100  2 500  Item 8 X Item 9 X 9 Copyright reserved Please turn over ### Page 3 Downloaded from hlayiso.com (EC/NOVEMBER 2019) ACCOUNTING P2 3 1.1.4 Bank Reconciliation Statement on 31 July 2019 Debit Credit Cr balance of Bank statement  21 370 Cr outstanding deposit  20 500 Dr outstanding cheques No 1596  7 000 No 1640  2 500 No 1690  6 100 Dr balance of Bank account  26 270* 41 870 41 870 7 *check operation 1.1.5 In August 2019 the internal auditor discovered that the outstanding deposit of R20 500 on the Bank Reconciliation Statement on 31 July 2019 appeared as R5 500 on the Bank Statement (Item 3). The amount on the Bank Statement is correct. List ONE concern that you have as internal auditor. Provide ONE suitable control measure to prevent this from happening in future. Explain fully. ONE concern  and ONE solution  CONCERN CONTROL MEASURE  The money could be  Compare receipts of cash to the deposit stolen slips on a daily basis to see whether all cash received was deposited.  Internal control processes  Put internal control processes in place – are not effective division of duties. The deposit must be checked by an assistant.  Fraud could take place /  Arrange for SMS notifications from the rolling of cash bank and check against the CRJ. For one mark:  Investigate the deposit slip for errors.  Division of duties. 3 Copyright reserved Please turn over ### Page 4 Downloaded from hlayiso.com 4 ACCOUNTING P2 (EC/NOVEMBER 2019) 1.2.1 Why should the balance of the Creditors’ control account correspond with the total of the Creditors’ list? Any acceptable answer   It is an internal control measure – figures in the journals are posted to the Creditors’ Control account and the Creditors’ Ledger.   The Creditors' Control account is a summary of all the transactions related to creditors and the list is a total of all the Creditors’ balances. 2 1.2.2 Calculate the correct balances of the Creditors’ Control account and the Creditors List. Creditors Control Creditors List (a) Incorrect balance/ total 49 560 36 410 (b) - 520  (c) + 3 160 + 3 160  (d) + 270  (e) - 13 400 (- 6 700; - 6 700) one mark each Balance/Total  39 320 39 320 8 35 Copyright reserved Please turn over ### Page 5 Downloaded from hlayiso.com (EC/NOVEMBER 2019) ACCOUNTING P2 5 QUESTION 2 2.1 Match the description from COLUMN B to the concept in COLUMN A. Write only the letter (A–E) next to the question number (2.1.1– 2.1.4) in the ANSWER BOOK 2.1.1 E  2.1.2 C  2.1.3 D  2.1.4 B  4 2.2 Calculate the direct material cost 78 900 + 553 500 – 92 400 = 540 000  4 Calculate the correct Factory Overhead Cost. FACTORY OVERHEAD COST Incorrect Factory Overhead Cost 350 000 Depreciation  84 030 Indirect materials  (3 500) Water and Electricity (operation if any one part correct)     (10 290 / 2 x 4) = R20 580 / 7 x 4 = R11 760 – 10 290  1 470 Factory Overhead Cost for the Year 432 000 8 Copyright reserved Please turn over ### Page 6 Downloaded from hlayiso.com 6 ACCOUNTING P2 (EC/NOVEMBER 2019) 2.3 GENERAL LEDGER OF 4’OCEAN TRADERS WORK-IN-PROCESS STOCK ACCOUNT Finished 1 872 000  Balance b/d 175 000  goods Direct 540 000  Balance c/d 355 000  material  (see 2.2) Direct 1 080 000  Labour  Factory 432 000  overheads  (see 2.2) 2 227 000 2 227 000 10 2.4 Calculate the following: 2.4.1 Selling price per unit: 3 564 000  ÷ 396 000  = 9  ( if one part correct) 3 2.4.2 Cost of sales: 3 564 000  X 100  = 1 782 000  ( if one part correct) 200 Also accept: Finished goods:542 000 + 1 872 000 – 759 000 = 1 655 000 3 2.4.3 Variable costs per unit 2 059 200  ÷ 374 400  = 5,50  (if one part correct) 3 2.4.4 Break-even point 682 500  = 682 500 (9  (See 2.4.1) – ,50 (See 2.4.3)  3,50 = 195 000 units  ( if one part correct) 4 Copyright reserved Please turn over ### Page 7 Downloaded from hlayiso.com (EC/NOVEMBER 2019) ACCOUNTING P2 7 2.5 4’Ocean Traders anticipates that demand will increase in the next financial year to 600 000 units. They aim to increase the number of units produced to meet this demand. They expect fixed costs to remain unchanged. 2.5.1 Explain what you understand by the term ‘break-even point’. Valid explanation   The number of units that must be sold  in order to cover the Fixed Costs. Thereafter, the manufacturer will make a profit.   The point where total income equals total expenses.  2 2.5.2 Explain the effect the above decision will have on the fixed costs per unit and the break-even point. FIXED COST PER UNIT: As more units are produced the Fixed Costs per unit will decline.  BREAK-EVEN POINT: If Variable Cost increases/decreases – BEP will also increase or decrease  4 45 Copyright reserved Please turn over ### Page 8 Downloaded from hlayiso.com 8 ACCOUNTING P2 (EC/NOVEMBER 2019) QUESTION 3 3.1.1 Explain why a business needs to prepare a Cash Budget every year. Any valid answer  To plan for future receipts and payments in order to ensure that they have enough cash Prioritising - taking corrective measures from previous deviations 2 Do not accept income and expenses. 3.1.2 Calculate the expected receipts from debtors for November 2019. 225 000  / 75%  = 300 000 300 000 x 25% = 75 000  x 95%  = 71 250  OR 75 000 – 3 750 = 71 250 3 marks 1 mark 1 w/w mark OR 225 000 x 25/75 x 95% = 71 250 1 mark 2 marks 1 mark 1 w/w mark 5 3.1.3 Calculate the figures indicated by A–E in the Cash Budget. A 123 000  B A + 45 000 = 168 000  C 158 245 – 390 000 = (231 755)  D Same as B = 168 000  E C + D = (63 755)  5 3.1.4 The rent income increased by 8% from 1 November 2019. Calculate the rent income figure for November 2019. 9 000  x 1,08  = 9 720  one part correct OR 9 000 + 720 = 9 720 3 3.1.5 In your opinion, is EmmaLee’s capital contribution in November sufficient to support this business venture? Provide ONE reason to support your answer. Any valid explanation Excellent = 3 marks; Good = 2 marks; Satisfactory = 1 mark; Incorrect = 0 marks. No, her capital contribution is not sufficient to support this business venture. Although his bank account is showing a surplus in November, in December his payments exceed his receipts. Refer to 3.1.3 (C and E) above and mark according to the candidates 3 answer. Copyright reserved Please turn over ### Page 9 Downloaded from hlayiso.com (EC/NOVEMBER 2019) ACCOUNTING P2 9 3.1.6 Calculate the percentage increase granted to the employees from 1 November 2019. 4 200  / 105 000  x 100 = 4%  one part correct In your opinion, will the employees be satisfied with this increase? Briefly explain. Yes/No Any valid explanation  No, the increase is lower than the inflation rate / the business can rather give a higher increase than investing money in a fixed deposit. Yes, the business’s bank account is in overdraft. They can be glad to get an increase. 5 3.1.7 As the internal auditor you discovered that the actual motor vehicle expenses for October 2019 were R5 420. Name TWO points that you would include in your internal auditor’s report to EmmaLee. TWO valid points   • The actual expenses exceed the budgeted amount – overspent • Maybe unexpected increase in fuel prices and maintenance cost • The use of the vehicles needs to be investigated in order to ensure that the vehicles are used responsibly (no abuse) • EmmaLee needs to ensure that the vehicles are serviced regularly in order to avoid unexpected repairs 4 3.1.8 Calculate the interest payable to Eastbank in December 2019. 139 500  x 80%  = 111 600 x 11% / 12  = 1 023  2 marks one part correct Calculate the monthly repayments of the capital portion of the loan to Eastbank. 111 600  / 36 months  = 3 100  one part correct 7 Copyright reserved Please turn over ### Page 10 Downloaded from hlayiso.com 10 ACCOUNTING P2 (EC/NOVEMBER 2019) 3.2.1 ASSET DISPOSAL 2019 2019 Acc. depr on 58 000  31 Vehicles  130 000  31 Dec Dec vehicles  operation Bank  72 000  130 000 130 000 6 3.2.2 Note to the Balance Sheet on 28 February 2019 Land and FIXED ASSETS Vehicles Equipment buildings Carrying value beginning 1 350 000  330 000 435 000 of year Cost 1 350 000  900 000 615 000 Accumulated depreciation 0 (570 000) (180 000)  Movements: Additions at cost 230 000 306 000  300 000 Disposal at carrying value 0 (72 000) 0 (90 000)  Depreciation 0 (64 000) operation Carrying value end of year 1 580 000 500 000 645 000  Cost 1 580 000 1 076 000 915 000  Accumulated depreciation 0 (576 000)  (270 000) 10 50 Copyright reserved Please turn over ### Page 11 Downloaded from hlayiso.com (EC/NOVEMBER 2019) ACCOUNTING P2 11 QUESTION 4: FINANCIAL INDICATORS IN WORKING CAPITAL 4.1.1 Gross profit percentage on cost of sales (mark-up %) Gross profit = 1 212 000; Cost of Sales = 4 242 000 – 1 212 000 = 3 030 000 Mark up % = Gross profit % = 1 212 000  100 3 030 000  x 1 = 40 %  4 4.1.2 Average stock turnover rate 3 030 000  see 4.1.1 ½ (368 000 + 392 000)  = 3 030 000 380 000 = 8 times  4.1.3 Debtors Collection Period in days 4 50% x 4 242 000 = 2 121 000 ½  (153 800 + 156 200)  x 365  2 121 000  = 26,7 days or 27 days  4.2 Comment on the profitability of the business for this financial year. 6 Give TWO reasons why they may not have achieved their intended mark-up of 50%. Any two   Shrinkage  Products are not marked up correctly  Theft occurring  Too many discounts are offered 2 4.3 The bookkeeper is satisfied that the business’ liquidity has improved and there is money to manage their short term commitments. Mention TWO indicators, with figures, that prove this. Debtors Collection period  Debtors pay them within 27 days  see 4.1.3 Stock turnover rate  Selling stock 8 times a year (last year 6 times)  4 20 TOTAL: 150 Copyright reserved Please turn over ## Related documents - [ACCOUNTING P2 GR11 ANSBOOK NOV2019 Afr D](https://www.hlayiso.com/library/accounting-p2-gr11-ansbook-nov2019-afr-d/45c16853-3553-434c-ac15-17d3f4d3c271) — Accounting · QP · 2019 · Afr - [ACCOUNTING P1 GR11 MEMO NOV 2019 AFR D](https://www.hlayiso.com/library/accounting-p1-gr11-memo-nov-2019-afr-d/0f0c37c4-11e4-44e7-92f3-4dc5f5051582) — Accounting · Memo · 2019 · Afr - [Accounting GR 11 MEMO P2](https://www.hlayiso.com/library/accounting-gr-11-memo-p2/f9a548d1-d440-49ce-a056-afe41e478cf5) — Accounting · Memo · 2019 - [ACCOUNTING P2 MEMO GR11 NOV2022 Afrikaans](https://www.hlayiso.com/library/accounting-p2-memo-gr11-nov2022-afrikaans/5091330d-b815-492e-bd30-49702527a430) — Accounting · Memo · 2022 · Afr - [ACCOUNTING P2 MEMO GR11 NOV2022 English](https://www.hlayiso.com/library/accounting-p2-memo-gr11-nov2022-english/4c0cad8a-f3d3-4318-bcbe-6354a4b81cf9) — Accounting · Memo · 2022 · Eng - [ACCOUNTING P1 GR11 ANSWER BOOK NOVEMBER 2019 Eng D](https://www.hlayiso.com/library/accounting-p1-gr11-answer-book-november-2019-eng-d/3e971671-49bc-4f02-ac04-3c6aa998101f) — Accounting · Addendum · 2019 · Eng ## More from Grade 11 Accounting - [GR11 Accounting Practice exam November Paper 1](https://www.hlayiso.com/library/gr11-accounting-practice-exam-november-paper-1/a786fffb-f00d-472f-a62b-80f038063c5b) — Guide - [Grade 11 Accounting P2 November 2026 Mock](https://www.hlayiso.com/library/grade-11-accounting-2026-november-mock-exam-question-paper-paper-2/23b01a3d-4c7f-4c08-87ca-2f521d5b13fd) — QP · 2026 · Eng - [ACCOUNTING P1 GR11 ANSWER BOOK NOV2025 Afrikaans watermark](https://www.hlayiso.com/library/accounting-p1-gr11-answer-book-nov2025-afrikaans-watermark/6daad69c-e558-4d79-9945-bdcc57c797b8) — Addendum · 2025 · Afr - [ACCOUNTING ANS BOOK GR11 NOV 2025 ENG watermark](https://www.hlayiso.com/library/accounting-ans-book-gr11-nov-2025-eng-watermark/23071d73-1633-476d-9eea-a35d45360d61) — QP · 2025 · Eng - [ACCOUNTING P1 GR11 QP NOV2025 Afrikaans watermark](https://www.hlayiso.com/library/accounting-p1-gr11-qp-nov2025-afrikaans-watermark/12583458-757b-44ed-b818-66dccc55c934) — QP · 2025 · Afr - [ACCOUNTING P2 QP GR11 NOV 2025 AFR watermark](https://www.hlayiso.com/library/accounting-p2-qp-gr11-nov-2025-afr-watermark/c1345715-0e44-4f64-9844-4e1a4ca18c22) — QP · 2025 · Afr ## Collection - [Grade 11 past papers](https://www.hlayiso.com/grade-11/past-papers) --- Hlayiso: free CAPS and IEB past papers, memos, notes and study guides for South African learners. 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