# Accounting Grade 12 Paper 1 KZN June 2022 Memo > Grade 12 Accounting Paper 1 memorandum from the KZN June 2022, 8 pages. Read online or get the free PDF download, question paper linked when available. - Page: https://www.hlayiso.com/library/2022-kzn-june-p1-memo/7e3fab02-79b1-44b4-84f4-69bb43979500 - Updated: 2026-09-27 - Subject: Accounting - Grade: Grade 12 - Document type: Memorandum - Year: 2022 - Exam period: KZN June - Paper: 1 - Curriculum: CAPS - Pages: 8 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 June 2022 Memo](https://www.hlayiso.com/library/2022-kzn-june-p1-memo/7e3fab02-79b1-44b4-84f4-69bb43979500) ## About this document Accounting · Grade 12 · KZN June · 2022. Memorandum, 8 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 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. Penalties for placement or poor presentation (e.g. details) are applied only if the candidate is earning marks dn tt:ie 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. 11. In awarding method marks, ensure that candidates do not get full marks for any item that is incorrect, indicate with a �- 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 8 pages ### Page 2 Downloaded from hlayiso.com Accounting P1 Marking Guidelines 2 KZN June 2022 NSC QUESTION 1 1.1 Statement of Comprehensive income for the year ended 28 February 2022 Sales (15 472 000✓ -70 000✓ -45 000✓) 15 357 000@ Cost of sales (10 238 000) 6 Gross profit 5 119 000@ Other operating income 170 005@ Commission income (146 850 ✓ + 13 350 ✓) 160 200@ Bad debts recovered 3 005 ✓ 7 Provision for bad.debts adjustment 6 800 ✓✓ Gross income Other operating expenses Directors fees (2 983 500✓ + 80 750✓) 64 250 0 Audit fees (79 000 ✓ + 6 000✓) 85 000 ✓ Trading Stock Deficit (1 534 000 + 30 000 - 1 500 000) 64 000 ✓✓ Packing material (13 600 ✓ - 1 200✓) Advertising (123 000✓ - 1 250✓) 121 750 0 Sundry expenses 292 330 ✓ Bad debts (12 100 ✓ + 720 ✓) 12 820 ✓ 20 Depreciation 92 660 ✓ Operating profit 1 543 795.@ Interest income (9 300✓ + 27 000✓ 51 375@ 9 300 + 39 100 + 2 975 1 595 170@ - Interest expense (117 000) ✓✓ 1 478 1700 Taxation (443 451) 0 11 Net profit after1 1 034 7190 1.2 Balance at the beginning 700 000 ✓ Net profit after tax 1 034 719 0 Ordinary share .dividends (900 000)@ Interim dividends 550 000 ✓ Final dividends 350 000 ✓ Balance at the end 834 719 0 TOTAL MARKS 50 50 Copyright reserved Please turn over ### Page 3 Downloaded from hlayiso.com Accounting P1 Marking Guidelines 3 KZN June 2022 QUESTION 2 NSC 2.1 | NO. CALCULATION ANSWER (a) | 4522 800 — 3 452 000 1070 800Y (b) 102 800Y (c) 116 800 — 102 800 = 14 000Y Vehicle (3) Depreciation 15 000 -1 = 14 999v vehicle (1) Depreciation 352 000 x 20/100 = 70 400 Yvvehicle (2) Depreciation Kal AN & eu & KO (d) | 413 400v — 102 800M- 99 399m C, 211 20101 (e) } 116 000 x 15/100 x7 42 =10150Y new equipment depreéiation } VS 83 200 x 15/100" 12 480VV old equipment depreciatied\~ oe 22 630M 16 Copyright reserved Please turn over ### Page 4 Downloaded from hlayiso.com Downloaded from Stanmorephysics. com Accounting P1 Marking Guidelines NSC ROYAL LTD CASH FLOW STATEMENT FOR THE YEAR ENDED 30 APRIL 2022 KZN June 2022 am CASH FLOW FROM OPERATING ACTIVITIES a 384 000 Cash generated from operations 1 295 760 Interest paid (86 760) Dividends paid 60 000 ¥ + 170 000 YW — 30 000 ¥ or * Z - 170 000 — 60 000 + 30 000 (200 000) 140 000 two marks + 60 000 one mark Income tax paid (625 000) i} CASH FLOW FROM INVESTING ACTIVITIES (1 084 000) Purchase of fixed asset (1 186 800) wi (1.070 800 4 +116 000 “) * Proceeds from sale of fixed assets 102 800 v CASH FLOW FROM FINANCING ACTIVITIES (114 000) a Repurchase of shares (336 000) vv Proceeds of new loans 920 000 Y + 86 760 ¥ — 164 760 ~ —1 142 000 w 300000* Or 1 142 000 + 164 760 — 86 760 - 920 000 Repayment of loan (164 760 v — 86 760 v) (78 000)* Net change in cash and cash equivalents (814 000) Cash and cash equivalents beginning of year (91000) “v (20 000 — 111 000) Tee Cash and cash equivalents at the end of year (805 000) wi 25 25 Copyright reserved Please turn over ### Page 5 Downloaded from hlayiso.com Downloaded_from Stanmorephysics.com Accounting P1 Marking Guidelines 2.3 NSC KZN June 2022 Calculate the following financial indicators on 30 April 2022 1410550“ x100 Calculate the percentage operating profit on sales 5 611 000 “ = 25.1% 3 3 Calculate the debt-equity ratio = 1 142 000 ¥ : 4607 300 ¥ =0,3/0,25:1 3 3 Calculate the net asset value per share 4607300“ X100 750 000 ¥ = 614,3 cents MW ¢ TOTAL MARKS 50 50 Copyright reserved Please turn over ### Page 6 Downloaded from hlayiso.com Downloaded from Stanmorephysics. com Accounting P1 Marking Guidelines NSC QUESTION 3 Choose an accounting concept from Column B that best matches the analysis questions in Column A. Write only the letter (A — D) next to the number (3.1.1 — 3.1.3) in the ANSWER BOOK. 3.1.41 3.1.2 3.1.3 Dv BY Av KZN June 2022 3.2.1 3.2.2 3.2.3 3.2.4 Copyright reserved What type of audit opinion is provided by the independent auditor? Disclaimer ““ oe To whom is the audit report addressed? Shareholders ¥ What is the responsibility of the directors with regards to the audit report? vv The directors are responsible for: e sharing the report with the shareholders. e informing the shareholders of the report received from the auditors. * conducting the investigation based on the outcome of the report / take the necessary steps if necessary. Other than the shareholders of MEVAS Limited, list TWO other interested parties that will be interested in the audit report of the company. Briefly explain why each would be interested. PARTY REASON Potential new | To determine whether they can rely on the information in investors the financial statements when making investments. Banks To determine whether they can rely on the information in the statements when making decisions relating to lending the company money. SARS To determine whether they can rely on the information in the financial statements when assessing the company’s tax. Competitors To determine whether they can rely on the information in the financial statements when comparing their results with those of the company. Please turn over ### Page 7 Downloaded from hlayiso.com Downloaded from Stanmorephysics. com Accounting P1 Marking Guidelines 3.3.1 3.3.2 3.3.3 Copyright reserved KZN June 2022 usc Ordinary share capital Authorised 2 000 000 shares issue 885 000 | Shares issued at the beginning 6 073 000” 500 000” | shares issued during the year @ R15 ¥ 7 500 000M (150 000) | Buy-back of shares at R9.8 4 (1 470 000) ¥ 1 235 000M] Shares issued at the end 12 103 000” 10 Liquidity Comment on the liquidity position of the company. Quote THREE financial indicators (with figures) in your answer and explain the change in each trend ivvyv ii jvivy Current ratio improved from 1.6 : 1 to 2.0: 1 by 0.4 (25%) Acid test ratio improved from 0.8 :1 to 1.6 :1 by 0.8 (100%) The business is having 0.4 trading stock compared to 0.8 for last year (less cash tied up in trading stock good liquidity) Stock turnover rate improved from 4 times to 6 times by 2 times (50%) It means stock is sold very fast compared to last year Debtors collection period improved from 35 days to 30 days by 5 days (debtors are paying within a month — assists with cash inflow) Indicates good liquidity. 6 6 Dividends Do a calculation to show the change in the dividend pay-out policy. Provide ONE reason why the directors took this decision. 63” x 100 63¥ 1 100% M1 e Directors attempted to please the shareholders. e No plans for growth 5 e To attract the potential investors 5 Comment on the dividend per share over the past two years. Quote figures. 2 DPS decreased from 81 cents to 63 cents by 22% ( decreased by 18 cents) 2 Please turn over ### Page 8 Downloaded from hlayiso.com Downloaded from Stanmorephysics. com Accounting P1 Marking Guidelines KZN June 2022 NSC 3.3.4 Returns and earnings Comment on the % return and earnings per share of the company. Quote TWO financial indicators with figures. ROSHE decreased from 9% to 6.1% by 2.9%. ROSHE of 6.1% is below the interest rate on fixed deposit of 8.5% by 2.4%V¥ VY EPS decreased from 135 cents to 63 cents by 53% representing a drop in profitability vv“ v OR Earning yield decreased from 13,3% using NAV (13,1% using MP) to 5,1% using NAV (6,3% using MP) 6 6 3.3.5 Shareholding A shareholder is not satisfied with the dividend received, as it is less than that of last year. Explain why you agree with him. Quote figures. The drop in the market price from 1030 cents to 900 cents is reflected in 3 dividend yield decreased from 7,9% to 7% by 0,9% using the MP/ and from 8% to 5,1% by 2,9% using the NAV vv 3 3.3.6 Risk and gearing Explain how the loan affected the risk and gearing and whether or not it was a good idea to increase the loan. Quote TWO financial indicators with figures. v v v Debt/equity ratio increased from 0.3 : 1t00.4 :1by0.1 :1 ROTCE decreased from 8% to 7.5 % by 0.5%, 7.5% 6 Debt equity shows.a low financial risk, the ROTCE is below the interest rate 6 on loan of 11% by 3.5% that indicate a negative gearing TOTAL MARKS 50 50 Copyright reserved Please turn over - ## Related documents - [ACCOUNTING P1 GR12 MEMO JUNE 2022 Afrikaans Final](https://www.hlayiso.com/library/accounting-p1-gr12-memo-june-2022-afrikaans-final/46a00290-3eef-4646-8f78-18a84ed5df72) — Accounting · Memo · 2022 · Afr - [ACCOUNTING P1 GR12 ANSWERBOOK JUNE 2022 English](https://www.hlayiso.com/library/accounting-p1-gr12-answerbook-june-2022-english/3f567dee-27d7-45f0-b356-dc5d1a094a3a) — Accounting · Addendum · 2022 · Eng - [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 - [2022 MP Prelim P1 QP](https://www.hlayiso.com/library/2022-mp-prelim-p1-qp/1ec48209-db47-42c9-83c6-d680b1651391) — Accounting · QP · 2022 - [Accounting P1 May June 2022 Answer Book Eng](https://www.hlayiso.com/library/accounting-p1-may-june-2022-answer-book-eng/c02aee4a-9feb-4a3f-93b7-18c217a78d57) — Accounting · Addendum · 2022 · Eng - [Accounting P1 May June 2022 QP Eng](https://www.hlayiso.com/library/accounting-p1-may-june-2022-qp-eng/d4065e0c-bb99-4024-84e5-1635126794f0) — Accounting · QP · 2022 · 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 - [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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