# Accounting Grade 12 Paper 2 LIM Prelim 2020 Question Paper > Grade 12 Accounting Paper 2 question paper from the LIM Prelim 2020, 15 pages. Read online or get the free PDF download, memo linked when available. - Page: https://www.hlayiso.com/library/2020-lim-prelim-p2-qp/a92f1b39-7a21-4fb2-a563-4b431254c7c5 - Updated: 2026-09-27 - Subject: Accounting - Grade: Grade 12 - Document type: Question paper - Year: 2020 - Exam period: LIM Prelim - Paper: 2 - Curriculum: CAPS - Pages: 15 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 LIM Prelim 2020 Question Paper](https://www.hlayiso.com/library/2020-lim-prelim-p2-qp/a92f1b39-7a21-4fb2-a563-4b431254c7c5) ## About this document Accounting · Grade 12 · LIM Prelim · 2020. Question paper, 15 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 LIMPOPO PROVINCIAL GOVERNMENT REPUBLIC OF SOUTH AFRICA DEPARTMENT OF EDUCATION NATIONAL SENIOR CERTIFICATE ACCOUNTING P2 SEPTEMBER 2020 MARKS: 150 TIME: 2 Hours This question paper consists of 14 pages (including a 1-page formula sheet) and an answer book of 12 pages. ### Page 2 Downloaded from hlayiso.com Grade 12 Accounting P2 2 Limpopo DoE/September 2020 NSC INSTRUCTIONS AND INFORMATION Read the following instructions carefully and follow them precisely: 1. Answer ALL the questions. 2. A special ANSWER BOOK is provided in which to answer ALL the questions. 3. A FORMULA SHEET for financial indicators is attached to this question paper. You may use it if necessary. 4. Show ALL workings to earn part-marks. 5. You may use a non-programmable calculator. 6. You may use dark pencil or black/blue pen to answer the questions. 7. Where applicable, show all calculations to ONE decimal point. 8. Write neatly and legibly. 9. Use the information in the table below as a guide when answering the question paper. Try NOT to deviate from it. QUESTION 1:45 marks; 35 minutes Topic of the question: This question integrates: Manufacturing Managerial accounting: Production cost statement Break-even analysis Managing resources: Internal control QUESTION 2: 25 marks; 20 minutes Topic of the question: This question integrates: Bank and Creditors Reconciliation Financial accounting: Bank and creditors reconciliation Managing resources” Internal control QUESTION 3: 45 marks; 35 minutes Topic of the question: This question integrates: Inventories Managing resources: Stock systems Valuation of inventories Internal control QUESTION 4: 35 marks; 32 minutes Topic of the question: This question integrates: Cash budget Managerial accounting: VAT Cash budget VAT Copyright reserved Please turn over ### Page 3 Downloaded from hlayiso.com Grade 12 Accounting P2 3 Limpopo DoE/September 2020 NSC QUESTION 1 MANUFACTURING (45 marks; 35 minutes) 1.1 CONCEPTS Give one word/term for each of the following descriptions by choosing a word/term from the list below. Write only the word/term next to the question number (1.1.1 – 1.1.4) in the ANSWER BOOK. (4) Direct material cost Direct labour cost Factory overhead cost Administrative cost Sales and distribution cost Break-even point 1.1.1 Fuel cost for the delivery of leather handbags. 1.1.2 The cost of leather for manufacturing leather handbags 1.1.3 The salary of the accountant for the business producing leather handbags. 1.1.4 The salary of the employee cutting the leather for the leather handbags. 1.2 IMPACT COVERS Johnny Good is the owner of Impact Covers, a business that produces shockproof cell phone covers. The financial year ended on 30 June 2020. A mark-up of 25% on cost price is used. REQUIRED 1.2.1 Refer to Information B. Calculate the Direct Labour cost. (7) 1.2.2 Refer to Information C. Complete the correct Factory Overhead (12) Cost note. 1.2.3 Complete the missing figures in the Production Cost Statement for the year ended 30 June 2020. (9) INFORMATION A List of balances on: 30 June 1 July 2020 2019 Indirect materials 5 000 6 100 Work in Process ? 52 400 Finished products 26 000 31 000 Copyright reserved Please turn over ### Page 4 Downloaded from hlayiso.com Grade 12 Accounting P2 4 Limpopo DoE/September 2020 NSC B. Factory workers: • The factory workers worked 220 normal hours per month for the first three quarters of the year, at a rate of R60 per hour. • Due to the Covid-19 situation, the factory workers only worked 30 hours in total over the last quarter of the year at the normal hourly rate. • Over the whole financial year, the workers worked 60 hours overtime at a rate of 1,5 of the normal rates. C. The bookkeeper calculated the factory overhead cost for the year ended 30 June 2020: Sundry factory expenses R43 320 Indirect material R73 000 Insurance R22 100 Water and electricity R30 000 Marketing R14 700 Rent expense R163 800 Factory manager’s salary R126 800 With closer inspection, the following errors were noticed and should be rectified: • The balances for Indirect materials were not taken into account. All Indirect materials are used in the factory. • Insurance includes the payment for July 2020. The bookkeeper forgot that 30% of Insurance should be allocated to the Administrative department. • Only 60% of Water and electricity was allocated to the factory. It should have been 70%. • The Rent expense is the total amount paid for the whole year. This should be allocated between the Factory, Sales and Administrative departments in the ratio of 5 : 3 : 1. • The factory manager received an increase of R700 per month on 1 November 2019. He will forfeit his whole salary for the last month due to the Covid-19 pandemic. The bookkeeper was not aware of this arrangement. D. Sales: • Sales for the year ended 30 June 2019 was R1 760 000. • Sales for the year ended 30 June 2020 showed a decrease of 40% from the previous year. Copyright reserved Please turn over ### Page 5 Downloaded from hlayiso.com Grade 12 Accounting P2 5 Limpopo DoE/September 2020 NSC 1.3 SUNNY DESKS Sunny Desks produces desks for children, which is sold at a mark-up of 50%. The financial year ended 31 August 2020. REQUIRED 1.3.1 Calculate the following for the year ended 31 August 2020: (a) Variable cost per hat (4) (b) Break-even point (5) 1.3.2 James, the owner of Sunny Hats, is concerned about the production and cost management of the past year. Examine the information and identify TWO different cost items that cause concern. Provide advice on how to improve in each case. (4) INFORMATION 2020 2019 Factory overhead cost R702 000 R640 000 Prime cost per unit R110 R70 Direct material R70 R35 Direct labour R40 R35 Fixed sales price per unit R260 R260 Sales and distribution cost R219 000 R189 000 Commission R44 000 R54 000 Fuel cost R96 000 R73 000 Maintenance of vehicles R79 000 R62 000 Administrative cost R221 000 R200 900 Salaries of office staff R151 000 R132 900 Insurance R70 000 R68 000 Units produced during the year 9 300 9 900 Units sold during the year 7 300 9 000 Break-even point ? 3 400 45 Copyright reserved Please turn over ### Page 6 Downloaded from hlayiso.com Grade 12 Accounting P2 6 Limpopo DoE/September 2020 NSC QUESTION 2 RECONCILIATIONS (25 marks; 20 minutes) 2.1 PLATO TRADERS You are provided with information from the books of Plato Traders. REQUIRED Complete the table provided in the ANSWER BOOK to show the effect of the transactions on the Bank Account and the Bank Statement. Indicate the figure as well as a + for increase and a ‒ or brackets for decrease. If there is no entry to by made, place a X in the No Entry column. (14) INFORMATION A. On 31 May 2020, The Bank Statement reflected a balance of R10 320 and the Bank Account a balance R21 340. B. Extract of the Bank Reconciliation Statement on 30 April 2020 Outstanding cheques No. 1436 5 400 No. 1464 4 700 No. 1466 3 200 Outstanding deposit 16 900 C. After comparing the Bank Statement for May 2020 with the Bank Reconciliation Statement of 30 April 2020 and the Cash Journals for May 2020, the following differences were noted: (i) A debit order for the manager’s cell phone for R1 700, appeared on the Bank Statement only. (ii) Cheque No.1436 is dated 11 November 2019. (iii) The Bank Statement reflected a deposit of R16 900 which does not appear the Cash Receipts Journal for May 2020. (iv) The Cash Receipts Journal (CRJ) reflected a deposit of R17 200, which does not reflect on the Bank Statement. (v) An electronic deposit from a debtor for R2 300, appeared on the Bank Statement only. (vi) Cheque No. 1464 reflects on the Bank Statement as R4 100. The entry in the Cash Payments Journal (CPJ) is correct. (vii) Cheque No. 1466 appeared on the May 2020 Bank Statement. (viii) Cheque No. 1481 for R2 000 appeared only in the Cash Payments Journal (CPJ) for May 2020. Copyright reserved Please turn over ### Page 7 Downloaded from hlayiso.com Grade 12 Accounting P2 7 Limpopo DoE/September 2020 NSC (ix) The Bank Statement shows a R/D cheque for R1 300. It was previously received from a debtor, to settle his account of R1 500. (x) The following charges appeared on the Bank Statement: • Service fees R530 • Interest on credit balance R190 (xi) The Bank statement reflects a debit of R780 which was determined to be an incorrect entry made by a bank official. The Bank will correct the error in June 2020. 2.2 JORDAN PLUMBERS Jordan Plumbers deliver plumbing services in and around Polokwane. The Statement received from a supplier, Tryston Supplies, differs significantly from the account in the Creditor’s Ledger. The bookkeeper of Jordan Plumbers, Barry Reese, took leave from 25 February 2020. REQUIRED Take all the information and documents into account and: 2.2.1 Calculate the correct balance of Tryston Supplies in the Creditor’s Ledger as on 29 February 2020. (4) 2.2.2 Prepare a Creditor’s Reconciliation Statement for Tryston Supplies on 29 February 2020. (5) 2.2.3 Refer to Information D. What consequences could Barry Reese face after his actions? Explain ONE point. (2) INFORMATION A. Creditor’s Ledger of Jordan Plumbers TRYSTON SUPPLIES Date Debit Credit Balance Feb20 1 Balance 18 100 8 Invoice 4278 5 200 23 300 11 Cheque 2417 18 100 5 200 14 Debit note – 520 4 680 discount received on Invoice 4278 24 Invoice 4481 2 070 6 750 Copyright reserved Please turn over ### Page 8 Downloaded from hlayiso.com Grade 12 Accounting P2 8 Limpopo DoE/September 2020 NSC Copyright reserved Please turn over ### Page 9 Downloaded from hlayiso.com Grade 12 Accounting P2 9 Limpopo DoE/September 2020 NSC B. Statement received on 28 February 2020: TRYSTON SUPPLIES PO Box 471, Polokwane, 0700 Tel: 015 617 5211 Jordan Plumbers Date: 26 February 2020 PO Box 1244 Polokwane 0700 Date Debit Credit Amount Feb20 01 Outstanding balance 18 100 06 Invoice 4278 5 200 23 300 17 Credit note 248 – 10% 20 23 280 trade discount omitted on Invoice 4278 22 Invoice 4481 1 800 25 080 26 Invoice 4508 4 700 29 780 C. Invoice no. 4481 reflected the following totals: Subtotal of invoice R1 800 VAT 15% R270 Total of Invoice R2 070 D. Cheque No. 2417 • The Bank Statement that Jordan Supplies received for February 2020, was accompanied by their cashed check (no. 2417), issued on 11 February 2020 to the value of R18 100. • This cheque which was issued to Reese and Sons, was entered into the Creditor’s Ledger Account of Tryston Supplies, although they never received the cheque or the payment. This account has to be amended. • Mike Jordan immediately suspected Barry Reese, his bookkeeper, since the business does not have a creditor named Reese and Sons in their ledger. 25 Copyright reserved Please turn over ### Page 10 Downloaded from hlayiso.com Grade 12 Accounting P2 10 Limpopo DoE/September 2020 NSC QUESTION 3 INVENTORY SYSTEMS AND VALUATION OF INVENTORY (45 marks; 35 minutes) 3.1 CONCEPTS Classify each of the following statements as being part of either the PERIODIC or the PERPETUAL inventory system. Write only “Periodic” or “Perpetual” next to the question number (3.1.1 ‒ 3.1.4) in the Answer book. 3.1.1 It is an inexpensive system to manage and operate. (1) 3.1.2 Cost is Sales is determined at the point of sale. (1) 3.1.3 Stocktaking is done throughout the year. (1) 3.1.4 When stock is purchased, the Purchases account is debited. (1) 3.2 SNAP-IT SHOP Snap-It Shop sells cell phones and various equipment and extra accessories for cell phones. Billy Jones is the owner. The financial year ended 31 August 2020. REQUIRED 3.2.1 Refer to Information A – Selfie sticks: (a) Calculate the value of the Closing stock on 31 August 2020 using the FIFO Method. (7) (b) Calculate the mark-up % achieved in this financial year. (4) (c) Billy is of the opinion that this item should not be sold any more. Interpret the information and give him your opinion, using figures to prove your point. (3) 3.2.2 Refer to Information B – Cell phone ring holders: (a) Calculate the stock holding period for cell phone ring holders, (3) in days, using Closing stock. (b) Calculate the number of missing cell phone ring holders. (5) (c) Devise TWO methods the owner can implement in order to (4) solve this problem. 3.2.3 Refer to Information C – Cell phones Copyright reserved Please turn over ### Page 11 Downloaded from hlayiso.com Grade 12 Accounting P2 11 Limpopo DoE/September 2020 NSC (a) Calculate the value of Closing Stock on 31 August 2020 using (7) the Specific Identification Method. (b) Examine the stock figures and identify the problem with the stock ordered. Provide TWO points. (4) (c) Discuss the problem that Billy now faces with regards to the stock and formulate a plan to assist him in solving this issue. (4) INFORMATION A. Selfie Sticks – Stock records: Unit Units Total price Opening stock 1/9/19 110 R80 R8 800 Closing stock 31/8/20 205 ? ? Purchases: 510 R49 700 October 2019 250 R90 R22 500 February 2020 140 R100 R14 000 June 2020 120 R110 R13 200 Returns: 25 items of June 2020 25 ? ? Sales 390 R130 R50 700 Cost of sales R34 300 B. Cell phone ring holders – Stock records: Units Total Opening stock 1/9/19 400 R28 000 Closing stock 31/8/20 120 R9 800 Purchases: 740 R66 600 October 2019 260 February 2020 310 June 2020 170 Units sold 960 Cost of Sales R79 600 C. Cell phones: Copyright reserved Please turn over ### Page 12 Downloaded from hlayiso.com Grade 12 Accounting P2 12 Limpopo DoE/September 2020 NSC • The store room manager, Clive, is also responsible for ordering new stock. • The owner noticed that although there are cell phones available in the store, there are only two different models available in the store – Samsung Galaxy A20 and Samsung Galaxy S10 • The store room manager has recently been seen using a very new and exclusive Samsung tablet which is not available for retail yet. • Stock records: Price Units Total per unit Purchases: 300 R1 528 000 Samsung Galaxy A20 220 R2 400 R528 000 Samsung Galaxy S10 80 R12 500 R1 000 000 Sales: 87 R503 000 Samsung Galaxy A20 65 R3 000 R195 000 Samsung Galaxy S10 22 R14 000 R308 000 45 Copyright reserved Please turn over ### Page 13 Downloaded from hlayiso.com Grade 12 Accounting P2 13 Limpopo DoE/September 2020 NSC QUESTION 4 CASH BUDGETS AND VAT (35 marks; 25 minutes) Julie Mason plans to open her business, Julie’s Crafts, on the 1st of November 2020. Her cash budget for the first 4 months are given below, starting from 1 November 2020 to 28 February 2021. REQUIRED: 4.1 Calculate the percentage of the sales that will be on credit. (4) 4.2 Calculate the percentage debtors who will pay their accounts in December 2020. (8) 4.3 Evaluate the effective use of Julie’s capital contribution. Explain TWO points that you notice and use figures to support your answer. (5) 4.4 Julie plans to apply for a loan in January 2021. Considering the figures in the Cash Budget, advise her on TWO items she could manage differently before she considers the loan. Quote figures to (4) support your answer. 4.5 Calculate the amount of the loan she is considering to take out in January 2021. (4) 4.6 Explain to Julie why it would be ethically correct to register her business as a VAT vendor. Name TWO points (4) 4.7 Refer to Information D. Calculate the VAT that Julie would have to pay to SARS for January and February 2021. Round off all figures to the nearest Rand if necessary. (6) Copyright reserved Please turn over ### Page 14 Downloaded from hlayiso.com Grade 12 Accounting P2 14 Limpopo DoE/September 2020 NSC INFORMATION A. CASH BUDGET FOR JULIE’S CRAFTS FOR 1 NOVEMBER 2020 – 28 FEBRUARY 2021 November December January February 2020 2020 2021 2021 CASH RECEIPTS Cash sales 202 500 206 500 210 600 214 800 Cash received from debtors 40 500 66 200 51 400 Capital 75 000 Loan: Nedbank ? TOTAL RECEIPTS 277 500 247 000 ? 266 200 Cash payments Cash purchases 64 800 66 000 66 600 68 700 Payments to creditors 92 300 94 100 96 000 Equipment 60 000 60 000 Salaries and wages 82 000 82 000 102 000 102 000 Interest on loan (16%) 1 600 Drawings 21 000 21 000 21 000 21 000 Sundry expenses 43 200 20 900 21 100 21 300 TOTAL PAYMENTS 271 000 282 200 364 800 310 600 Surplus (Deficit) 6 500 (35 200) ? (44 400) Bank opening balance ‒ 6 500 (28 700) ? Bank closing balance 6 500 (28 700) ? ? B. Debtors: • Julie is aware that some debtors will not adhere to the 30 days settlement period. C. Sales: • Total sales for January 2021 – R280 800 • Total sales for February 2021 – R286 400 D. VAT: • Total sales: January and February 2021, R567 200 (excl. VAT) • Total purchases: January and February 2021, R317 200 (incl. VAT) • Purchase of equipment: January 2020, R60 000 (incl. VAT). 35 TOTAL: 150 marks Copyright reserved Please turn over ### Page 15 Downloaded from hlayiso.com GRADE 12 ACCOUNTING: FINANCIAL INDICATOR FORMULA SHEET Gross profit x 100 Sales 1 Gross profit. x 100 Cost of sales 1 Net profit before tax x 100 Sales 1 Net profit after tax x 100 Sales 1 Operating expenses x 100 Sales 1 Operating profit x 100 Sales 1 Total assets : Total liabilities Current assets : Current liabilities (Current assets — Inventories) : Current liabilities (Trade and other receivables + Cash and cash equivalents) : Current liabilities Average trading stock x 365 Cost of sales 1 Average debtors. x 365 Credit sales 1 Cost of sales Average trading stock Trading stock x 365 Average creditors x 365 Average creditors x 365 Cost of sales 1 Credit purchases 1 Cost of sales 1 Long term liabilities : Shareholder’s equity Net income after tax x 100 Net income after tax x 100 Average shareholder’s equity 1 Number of shares issued 1 Net income before tax + interest on loan x 100 Net income after tax + interest on loan x 100 Average shareholder's equity + Average long-term liabilities 1 Average shareholder’s equity + Average long-term liabilities 47 Shareholder’s equity, x 100 Number of issued shares 1 Dividends per year_ x 100 Number of issued shares 1 Dividends per year_ x 100 Earnings per shares 1 ## Related documents - [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 - [Grade 12 NSC Accounting P2 (Afrikaans) 2020 Preparatory Question Paper](https://www.hlayiso.com/library/grade-12-nsc-accounting-p2-afrikaans-2020-preparatory-question-paper/813d0ccb-dfb0-4caa-917e-f4fad84da119) — Accounting · QP · 2020 · Afr - [KZN 2020 June P2 QP](https://www.hlayiso.com/library/kzn-2020-june-p2-qp/aebab627-a5be-4328-8b2b-aee3f80cce83) — 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 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 ## 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 - [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 (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 - [Accounting P2 (English ) June 2025 Answer Book](https://www.hlayiso.com/library/accounting-p2-english-june-2025-answer-book-1/73bffe7c-1c96-49bd-af78-abb8db8c6618) — Addendum · 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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