# Accounting Grade 12 Paper 1 KZN Prelim 2020 Addendum > Grade 12 Accounting Paper 1 addendum from the KZN Prelim 2020, 7 pages. Read online or get the free PDF download. - Page: https://www.hlayiso.com/library/2020-kzn-prelim-p1-answer-book/2b1b1aa0-0121-4bcc-abed-7945f00950a5 - Updated: 2026-09-27 - Subject: Accounting - Grade: Grade 12 - Document type: Addendum - Year: 2020 - Exam period: KZN Prelim - Paper: 1 - Curriculum: CAPS - Pages: 7 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 12](https://www.hlayiso.com/library/grade-12) › [Accounting](https://www.hlayiso.com/library/grade-12/accounting) › [Accounting Grade 12 Paper 1 KZN Prelim 2020 Addendum](https://www.hlayiso.com/library/2020-kzn-prelim-p1-answer-book/2b1b1aa0-0121-4bcc-abed-7945f00950a5) ## About this document Accounting · Grade 12 · KZN Prelim · 2020. Addendum, 7 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 education Department: Education PROVINCE OF KWAZULU-NATAL ACCOUNTING P1 ANSWER BOOK SEPTEMBER 2020 Sessa e sees eee” NATIONAL SENIOR CERTIFICATE ( GRADE 12 ] MOD BY THE | MOD BY THE | MOD BY THE QUESTION SCHOOL CLUSTER PROVINCE Grade: N.B. This answer book consists of 7 pages. Copyright Reserved _ ___ Please turn over ### Page 2 Downloaded from hlayiso.com Accounting P1 “eparatory Examination 2020 QUESTION 1 1.1 1.1.1 1.1.2 — _ 4 1.1.3 1.1.4 1.2.1 Ordinary share capital Authorised: 2 000 000 shares Issued: 1 200 000 Shares in issue at the beginning 8 1.2.2 | Cash Flow Statement for the year ended 30 June 2020 Cash flow from operating activities Cash generated from operations 639 100 | Cash flow from investing activities Cash flow from financing activities c,h Net change in cash and cash equivalent Cash and cash equivalent at the beginning Cash and cash equivalent at the end 32 Copyright reserved Please turn over ### Page 3 Downloaded from hlayiso.go Accot reparatory Examination 2020 1.2.3 | Apart from the dividends, identify TWO good decisions. Explain the effect of each decision on the company. Quote figures. Decision Consequence (a) (b) 4 1.2.4 | Calculate: Net asset value per share (NAV) 3 Calculate: Return on average shareholders’ equity (ROSHE) 5 1.2.5 | The directors are pleased that the operating efficiency of the business has improved. Quote and explain TWO financial indicators to support their opinion. 4 TOTAL MARKS 60 Copyright reserved Please turn over ### Page 4 Downloaded from hlayiso.com i / | Accounting P1 reparatory Examination 2020 i | QUESTION 2 /2.4 NO ACCOUNT DEBITED ACCOUNT CREDITED AMOUNT bd 13 2.2 STATEMENT OF FINANCIAL POSITION (BALANCE SHEET) ON 29 FEBRUARY 2020. ASSETS NON-CURRENT ASSETS CURRENT ASSETS TOTAL ASSETS EQUITY AND LIABILITIES SHAREHOLDERS’ EQUITY Retained income 280 000 NON-CURRENT LIABILITIES CURRENT LIABILITIES | 884 700 Bank overdraft Shareholders for dividends TOTAL EQUITY AND LIABILITIES 28 Copyright reserved Please turn over ### Page 5 Accou! Downloaded from hlayiso.¢o reparatory Examination 2020 2.3.1 Type of audit report: Reason: 2 2.3.2 To whom is an audit report addressed? Reason: 3 2.3.3 IFRS: 2 Companies Act (71 of 2008) 2 TOTAL MARKS 50 Copyright reserved Please turn over ### Page 6 Downloaded from hlayiso.com Accounting P* >reparatory Examination 2020 QUESTION 3 3.1 3.1.1 3.1.2 3.1.3 3 3.2.1 Retained income: Balance at beginning 560 000 Paid 27 500 Balance at end 11 3.2.2 | As an existing shareholder, what factors/ financial indicators would you assess in determining whether R10.20 per share is a fair issue price? Provide reasons for your choices. 4 Khethiwe owns 43% of the shares in issue on 30 June 2019. Calculate the number of additional shares she must purchase in order to be a majority shareholder. 3 Koos Trimp (the CEO) has suggested that Khethiwe should be given the first option to purchase the additional shares before they are advertised to the public. What advice would you offer to the directors concerning this proposal? 2 Copyright reserved Please turn over ### Page 7 Accoul Downloaded from hlayiso.com examination 2020 3.2.3 | Companies buy back shares from time to time. Explain TWO benefits of share buy-backs. 3.2.4 | Quote TWO financial indicators (with figures and trends) that indicate an improvement in the liquidity position of the business. 3.2.5 |The company paid back a large portion of the loan. Explain why this was a good decision. Quote TWO financial indicators (with figures). 3.2.6 | Calculate the dividend pay-out policy over the past two years. Provide a possible reason for the current policy adopted. TOTAL MARKS 40 Copyright reserved ## Related documents - [2020 KZN Prelim P1 QP](https://www.hlayiso.com/library/2020-kzn-prelim-p1-qp/7d905a97-970a-4c23-8a93-54f8f6650432) — Accounting · QP · 2020 - [Accounting P1 NSC Nov 2020 Answer Book Afr](https://www.hlayiso.com/library/accounting-p1-nsc-nov-2020-answer-book-afr-2/f42d3e7f-93f7-42d0-9ab9-a62420582442) — Accounting · Addendum · 2020 · Afr - [2022 KZN Prelim P1 Answer Book](https://www.hlayiso.com/library/2022-kzn-prelim-p1-answer-book/a615c3e9-43d2-4271-9408-12e8ac17059d) — Accounting · Addendum · 2022 - [ACCOUNTING P2 GR12 ANSWERBOOK SEPT2020 English](https://www.hlayiso.com/library/accounting-p2-gr12-answerbook-sept2020-english/7c7795c6-891d-43ba-bdd7-60bcccc8c166) — Accounting · Addendum · 2020 · Eng - [Accounting P2 NSC Nov 2020 Answer Book Afr](https://www.hlayiso.com/library/accounting-p2-nsc-nov-2020-answer-book-afr-2/4cac0f65-ae9d-4da2-b413-d8c18d44450a) — Accounting · Addendum · 2020 · Afr - [Accounting P1 Nov 2023 Answer Book Eng](https://www.hlayiso.com/library/accounting-p1-nov-2023-answer-book-eng/aaeb9a41-12fe-49c2-9ba7-37693926cbd5) — Accounting · Addendum · 2023 · Eng ## More from Grade 12 Accounting - [Accounting](https://www.hlayiso.com/library/accounting/8f42a6a4-9593-4d36-86b1-d890dd1bb1bf) — Guide - [Acc P2 Memo ENg watermark](https://www.hlayiso.com/library/acc-p2-memo-eng-watermark/5c899e95-f3c2-4bf6-b539-ed8b1bcec50d) — Memo · 2025 · Eng - [ACCOUNTING P1 GR12 QP JCT 2025 AFR D watermark](https://www.hlayiso.com/library/accounting-p1-gr12-qp-jct-2025-afr-d-watermark/c6a5692b-3cb0-464b-bb82-67d6ce83bfdd) — QP · 2025 · Afr - [ACCOUNTING P1 GR12 QP JCT 2025 ENG D watermark](https://www.hlayiso.com/library/accounting-p1-gr12-qp-jct-2025-eng-d-watermark/84d92eb0-f5bd-4442-bb6d-c55cdc52e25d) — QP · 2025 · Eng - [ACCOUNTING P2 QP GR12 JCT 2025 ENG D watermark](https://www.hlayiso.com/library/accounting-p2-qp-gr12-jct-2025-eng-d-watermark/13425f71-aba6-4328-b084-d9b108884315) — QP · 2025 · Eng - [Accounting P1 (Afrikaans) June 2025 Possible Answers](https://www.hlayiso.com/library/accounting-p1-afrikaans-june-2025-possible-answers/2f10559b-54d6-47f4-9fc2-b2efc62644c4) — Memo · 2025 · Afr ## Collection - [Grade 12 past papers](https://www.hlayiso.com/grade-12/past-papers) --- Hlayiso: free CAPS and IEB past papers, memos, notes and study guides for South African learners. 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