# Accounting Grade 12 Paper 2 KZN Prelim 2020 Memo > Grade 12 Accounting Paper 2 memorandum from the KZN Prelim 2020, 9 pages. Read online or get the free PDF download, question paper linked when available. - Page: https://www.hlayiso.com/library/2020-kzn-prelim-p2-memo/d89db830-20f5-406c-8a83-bbb350e95953 - Updated: 2026-09-27 - Subject: Accounting - Grade: Grade 12 - Document type: Memorandum - Year: 2020 - Exam period: KZN Prelim - Paper: 2 - Curriculum: CAPS - Pages: 9 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 2 KZN Prelim 2020 Memo](https://www.hlayiso.com/library/2020-kzn-prelim-p2-memo/d89db830-20f5-406c-8a83-bbb350e95953) ## About this document Accounting · Grade 12 · KZN Prelim · 2020. Memorandum, 9 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 P2 MEMORANDUM SEPTEMBER 2020 NATIONAL SENIOR CERTIFICATE Miepho 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 double penalty applied. 2. Penaities 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 answer incorrect, mark the workings provided. 4. If a pre-adjustment figure is shown as the final figure, award one mark. Not the method mark for the answer. Note: if figures are stipulated in memo for components of workings, these do not carry the method for final answer. 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. This memorandum is not for public distribution, as certain items might imply incorrect treatment. The adjustments made are due to nuances in a certain question. 8. Where penalties are applied, the marks for that section of the question cannot be a final negative. 9, Where method marks are awarded for operation, the marker must inspect the reasonableness of the answer before awarding the mark. 10. Operation’ means ‘Check operation’. ‘One part correct’ means ‘Operation & one part correct’. Note: check operation must be +,-,x,+, or per candidates operation. 41. In awarding method marks, ensure that candidates do not get full marks for any item that is incorrect, indicate with a Kl. Note: do not award marks for workings if numerator and denominator are swapped-this also applies to ratios. 12, Be aware of candidates who provide valid alternatives beyond the marking guideline. 13. Codes: f=foreign item; p=placement. This memorandum consists of 9 pages ### Page 2 Downloaded from hlayiso.com 2 Preparatory Exam 2020° Accaunting P2 QUESTION 1 1.1 1.1.1 1.1.2 1.1.3 BANK RECONCILIATION NSC LAG pt pt ge LER Pret A ER — Show the entries that must be recorded in the Cash Journals by completing the table provided in the ANSWER BOOK. CASH RECEIPTS JOURNAL CASH PAYMENT JOURNAL Details Amount Details Amount Total R 504 350 Total R 487 330 Stale cheque 4800 ” | Bank charges 1420 v Interest 150 ~ | insurance 1850 ¥ Rent income 6250 ¥ | Cheque no. 633 3600 ¥ Deposit cancelled 25000 “ Operation one part ‘correct 515 550 MM] Operation one part correct 519200 Mi 9 9 Bank Reconciliation Statement on 31 July 2020 Alternative Debit Credit Balance per Bank Statement R43:210 R43 210 ~ Credit outstanding deposit 11850 11850 v Debit outstanding cheques: : No. 613 (13:400)| R13400 ~ No. 652 (5.650) 5650 ¥ No. 655 (1.440) 1440 v Debit amount wrongly credited (6 250) 6250 vv Balance as per Bank Account 28-320 28 320 (4 _| Operation 55060 55 060 9 Both totals 9 As the internal auditor you are not happy with the manner in which cash is being controlled in this business. e Identify TWO problems. Quote figures to support your answer « Give advice on how each of these problems can be avoided in future. __Problem with evidence cep Advice Problem ¥ ~ Figure ¥ advice based on evidence YY R25 000 missing/stolen Division of duties: the person writing up the transaction should not make the deposits. / Check that the total of cash slips agree with the total of the deposit slip. Possible rolling of cash: Create a policy for regular, daily depositing. e R12 670 only deposited in July | / Internal auditor must check that the cashier OR is depositing cash daily. / Appoint a different e 11 850 still not deposited person to do the depositing / request 6 timeous bank notification 6 Copyright reserved Please turn over ### Page 3 Downloaded from hlayiso.com Accoun....g . — Preparatory Exam 2020 NSC 1.2 CREDITORS RECONCILIATION 1.2.1 | Briefly explain how the preparation of a creditors’ reconciliation as an internal control measure can assist the business in managing their creditors effectively. Provide TWO points. _ Accept short explanations; may be phrased differently Part-marks for unclear/incomplete point Any TWO relevant control measures “Y¥ Vv e Errors and omissions can be detected and corrected. e Fraud can be detected and minimised. 4 e The correct payment can be made to creditors. 4 1.2.2 | Use the table provided to indicate the changes that must be made in the Creditors’ Control account and Creditors’ List in the books of Titanic Traders to take into account the errors and omissions noted. Indicate the increase or decrease with a (+) or (-) with each amount. Creditors’ Control Creditors’ List Provisional balance/total R 74710 R32 590 A +900 v +3720 v +3720 -450 v Xs -32800 vv mioiog|a@ +8870 Vv 45 630 45 630 oo M1 Both totals F 1.2.3 | State TWO internal control measures that the business can use to prevent similar incidents from happening in future. Any TWO separate, relevant con! Accept short explanations; may be phrase Part-marks for unclear/incomplete explanation [measures V¥¥ vv rently e Division of duties —- Thabani must not be the only person responsible for ordering and recording goods. e Rotate duties so that employees do not have permanent control over an aspect of the business. Have special order forms to be signed by two people. Check documents regularly against deliveries. Do regular/random stock counts to verify stock records. Physical security — only one mark 4 PA. G PIAAGE TOTAL MARKS LA Deed | Ao 40 32o /? a) wro 40 / oS Copyright reserved Please turn over ### Page 4 Downloaded from hlayiso.com Accounung FZ 4 Preparatory Exam 2020 ‘ NSC QUESTION 2 2.1 Debtors’ Collection Schedule: MONTH CREDIT SALES | SEPTEMBER OCTOBER July 2020 184 800 33 264 | ye August 2020 158 400 110 880 28 512” September 2020 148 800 14 880 104 160Y October 2020 175 200 17 520V Cash from debtors 159 024 150 192M 4 Operation one part correct | 4 2.2 | Calculate the amount of bad debts that will be written off in October 2020. 184 800 Vx 2% ¥ = 3 696 Hl One part comect 3 2.3 | Mention TWO strategies that the business can use to encourage debtors to pay their accounts on time. Any TWO valid points v¥ ov. Accept short explanations; may be phrased differently Part-marks for unclear/incomplete explanation Charge interest on overdue accounts/hand over to debt collectors/ sell debtors Send regular reminders/SMSs/emails Give discount for early settlements + 2.4 | Calculate the missing figures indicated by (i) — (v) on the Cash Budget. Workings Answer ‘ 223 200 VY (i) R 372 000 x 60% Or 372 000 ~ 148 800 Or 148 800 x 60/40 he marks ornolhing - 146 000 vv (ii) | R292 000 x 50% Too marks of netting R 264 000 x 50% = 132 000 VY —5% ¥ (iti) mrmcnrrrs aes OrR 264000 x 50% = 132000 x 95% _ _ (iv) in brackets or'negative (13 600) ~ as : 11 25 000 vv {v) | R38 600 — 13 600 TWO Tae OETOHIOG 41 Copyright reserved Please turn over ### Page 5 Downloaded from hlayiso.com Accoun....5 . — Preparatory Exam 2020 ’ 2.5 | The rent will increase on 1 October 2020. Calculate the percentage increase. 6160 — 5500 . 660Y /5 500 x 100 = 12% M One part correct = 2.6 |Interest is paid on the last day of each month and is not capitalised. Calcutate the loan balance on 1 September 2020. (1 875 x 100/15) Y x 12/1 Y = 150 000 HI One part correct = 2.7 | Give a reason for the entry for Fixed Deposit, R44 000 in October 2020. The Fixed deposit of R44 000 matured during October 2020 and the money was paid into the bank account. Vv < TOTAL MARKS 30 30 Copyright reserved PAY Pb GE- ERI new LS Please turn over ### Page 6 Downloaded from hlayiso.com bg fed Se ~ Preparatory Exam 2020 bo NSC SEX preteen aefogfrorm. Accounting FZ QUESTION 3 3.1.1 DIRECT MATERIAL COST = — Opening stock R115 200 v¥ Purchases 723600 v Closing stock (314.550) v¥ Issued to factory Operation one part correct 524250 4 z DIRECT LABOUR COST Normal time (1 680 x R47) “ x 5 )Operation one part correct R394 800 M4 Overtime 541 440 ¥ Normal time Employer's contribution (R394 800 Hx 11,5% ~) 45402 4 Operation one part corract 981642 fw 8 3.1.2 PRODUCTION COST STATEMENT FOR THE YEAR ENDED 30 JUNE 2020 Direct material cost See 3.1.1 524250 Direct labour cost Sea 3.1.1 981642 4 Prime cost DMC+DLG 1505892 WY Factory overhead cost 117688 v Total manufacturing cost PC+FOHC 1623580 w Work-in-progress (1 July 2019) 22400 v 1 645 980 Work-in-progress (30 June 2020) Balancing figure / Operation (301 980) & Total cost of production of finished goods Vv 9 (22 400 x R60) 1344 000 9 3.1.3 |The accountant is of the opinion that workers are not properly supervised. Identify separate problems Solution Problems ¥ “ Figuresv v oY Problem 1 | The workers do not work the Workers should be monitored to ensure they work the correct number of normal hours. / Workers normal time hours according to the employment conditions — they only worked 1 680 instead of 1920. OR The workers worked too much overtime as compared to normal time - 70% / (1152/1680). must first work the correct numbers of normal time before booking overtime. Problem 2 The level of production is too low. For the 2 832 hours worked, they should have produced a total number of 28 320 (2 832 x 5 x 2} Jerseys. The business only produced 22 400 jerseys. Monitor workers to ensure they produce two jerseys per hour. / Pay workers for each jersey completed. / Complete uncompleted tasks under o normal hours. Copyright reserved Please turn over ### Page 7 Downloaded from hlayiso.com Accour . Preparatory Exam 2020 NSC 3.2 MNANDI MANUFACTURERS 3.2.1 |e Calculate the break-even point for the year ended 31 July 2020. 278 400 v 15,50 v - 11,75 v 3,75 two marks = 74 240 units Mone part correct * Do you consider the level of production to be satisfactory or not? Explain by quoting figures to support your opinion. Satisfactory “ Explanation:” Figures v. (mark according to BEP calculation above and compare with level of production) The business produced and sold 21 760 units more than the break-even point (96 000 — 74 240). They made a good profit. The business produced 12 000 units more than in 2017 (96 000 — 84 000) while the break-even point increased by 13 979 units (74 240 — 60 261). 7 3.2.2 | Identify ONE problem regarding the variable costs. Quote appropriate figures to support your answer. st identified v Figures v: Raw material cost increased from R3,90 to R5,40 (by R1,50 or 38%) « Provide TWO solutions for the problem identified. Any TWO suggestions: Vv“ vv . Accept Short explanations: may be phrased differently Part-marks for uncleat/incomplete stiggestion e Monitor production techniques to minimise wastage ° Train workers to be more efficient © Buy in bulk to take advantage of discount * Look for local suppliers- reduce transport cost 6 fY4OG ManesSe TOTAL MARKS LER eet nen 40 a Copyright reserved Please turn over ### Page 8 Accou.. ng Downloaded from hlayiso.com NSC QUESTION 4 4.1.1 4.1.2 4.2 4.2.1 INVENTORY CALCULATIONS Preparatory Exam 2020 ‘ Calculate the number of hats on-hand on 29 February 2020, the financial year-end. (100 + 500) — 510 600 ¥ —510 ¥ = 90 hats 1 One part correct Calculate the following using the weighted average method: Value of the final stock on-hand on 29 February 2020. v v v R4000 + 38 000 + 1 200 600 v One partcorect R72 4 x 90 M see 4:1.1 = R6 480M One part correct SHAPE FOR WOMEN Calculate the number of days of stock on-hand for Gym Bags. Gym Bags are sold at a mark-up of 25% on cost. The average stock amounted to R79 903. R79 903 ¥ x 365 R260 400 ¥ vv 1 =111 days M One partcorrect Accept 112 days OR ey one mark One mark one’ mark %_ {150 + 420) x 65 930 one mark 1 PUG KARUN GS LR pen 30/03) r2r0 Copyright reserved Please turn over ### Page 9 Downloaded from hlayiso.com Accounting PZ y Preparatory Exam 2020" ‘ - NSC 4.2.2 | Identify ONE different problem in respect of the manner in which each product is managed. Quote figures to support your answer. In each case offer practical advice. Problem v Vv ¥v Possible solution ¥ Vv ~ figuresv VY Vv One per item Sweatbands | 120 +5 600 —- 4 800 e Internal control measures to = 920-810 safeguard the stock e.g. Security = 110 missing tags; cameras; display close to paying point; physical stock-taking on a continuous basis Towels 840 X R125 = 105000 |» Investigate and apply disciplinary measures. R105 000 — Rt 00 00 « Check at exit that the payment for = R6 000 cash missing the towels appears on the pay slip / invoice. Check money before banking. Division of duties Gym Bags Too much stock on e Revisit sales policy and implement hand - 111/112 days measures to encourage sales. See'4:2:1 Or quantity 410 * Discontinue selling gym bags since stock on hand sales are low even though the 9 mark-up percentage is only 25%. | 4.3 FIXED ASSETS Calculate the missing amounts indicated by (i) — (iv) in the Fixed/Tangible Asset Note for the year ended 29 February 2020. Workings Amount i} 1470 000 + 240 000 1710 000 vv | New: 240 000 x 15% x */42 = 6 000 v¥ ii Old: 1 470 000 x 15% = 220 500 185 999 carry value is only R180 000, thus only R179 999 “| _ Gne'part’éorrect v v One part correct __, | (85 000 — 48 000) x 10% x M2 = 2775 (34 225) Three marks 50 775 Four marks Gye pat coredt = 85 000 v — (2 775 + 48 000 ~ ) See ill iv | 350000 v + 46 275 v-—50775 345 500 One part correct 16 Copyright reserved Pa G VAG TOTAL MARKS LER Fret AP CR 40 30 ‘oO Le eae rT) fe of Meo a Please turn over ” ## Related documents - [ACCOUNTING P2 GR12 MEMO SEPT 2020 English](https://www.hlayiso.com/library/accounting-p2-gr12-memo-sept-2020-english/b6d54b19-200a-4cbf-aaad-8df18fd74e19) — Accounting · Memo · 2020 · Eng - [2020 FS Prelim P2 Memo](https://www.hlayiso.com/library/2020-fs-prelim-p2-memo/69f20652-9cb5-4b56-9da4-77702b5cf90a) — Accounting · Memo · 2020 - [2020 KZN Prelim P1 QP](https://www.hlayiso.com/library/2020-kzn-prelim-p1-qp/7d905a97-970a-4c23-8a93-54f8f6650432) — Accounting · QP · 2020 - [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 GR12 QP SEPT2020 English](https://www.hlayiso.com/library/accounting-p2-gr12-qp-sept2020-english/f03e0db8-e54a-430c-a3c1-424aaa129fde) — Accounting · QP · 2020 · Eng - [2020 FS Prelim P2 QP](https://www.hlayiso.com/library/2020-fs-prelim-p2-qp/f66a906e-8a2e-4240-912b-36ffdeca9056) — Accounting · QP · 2020 ## More from Grade 12 Accounting - [Accounting](https://www.hlayiso.com/library/accounting/8f42a6a4-9593-4d36-86b1-d890dd1bb1bf) — Guide - [ACCOUNTING P1 GR12 AB JCT ENG D watermark](https://www.hlayiso.com/library/accounting-p1-gr12-ab-jct-eng-d-watermark/77ae8297-53f7-47b3-8e29-57bd38f30483) — Addendum · 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 (English) June 2025 Answer Book](https://www.hlayiso.com/library/accounting-p1-english-june-2025-answer-book/7e96e433-56f8-43a1-9a38-c68c465746dd) — Addendum · 2025 · Eng ## 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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