2022 KZN Prelim P1 Answer Book_hlayiso.com_.pdf

Downloaded from hlayiso.com rom Stanmorephysics.com ~ ] \ KWAZULU-NATAL PROVINCE EDUCATION REPUBLIC OF SOUTH AFRICA : ACCOUNTING P11 ‘ ANSWER BOOK : SEPTEMBER 2022 PREPARATORY EXAMINATION : NATIONAL SENIOR CERTIFICATE | GRADE 12 | | Name: Grade: | ———— MOD BY THE | MOD BY THE | MOD BY THE QUESTION MARKS SCHOOL CLUSTER PROVINCE [ 1 2 3 4 _ _ _ TOTAL | on | N.B. This answer book consists of 10 pages. Copyright Reserved Please turn over

Downloaded from hlayiso.com Accou Pownloaded from Stanmorephysics.com NSC — Answer book 5 Preparatory Examination September 2022 QUESTION 1 1.1 Choose an explanation from column B that matches the term in column A. Write only the letter (A — D) next to the question numbers (1.1.1 to .1.3) in the ANSWER BOOK. 114 1.1.2 1.1.3 3 1.2.4 CALCULATION ANSWER (a) (b) (c) (d) 19 Copyright Reserved Please turn over

Downloaded from hlayiso.com acconooWploaded from Stanmorephysics.com Preparatory Examination September 2022 NSC — Answer book 1.2.1 Statement of Comprehensive Income for the year ended 28 February 2022. Sales Cost of sales Gross profit Other operating income Service fee income 350 000 Gross income Operating expenses Directors fees 550 000 Audit Fees 88 410 Operating profit Interest income 80 000 Operating profit before interest expense Interest expense Net profit before taxation Taxation (540 000) Net profit after tax 38 TOTAL MARKS 60 Copyright reserved Please turn over

Downloaded from hlayiso.com Downloaded from Stanmorephysics.com Accounting / Preparatory Examination September 2022 NSC — Answer book QUESTION 2 2.1.1 Ordinary share capital note AUTHORISED SHARES 800 000 SHARES ISSUED SHARES: 480000 | Shares issued on 1 March 2021 1770 000 Shares issued at the end 2710 000 5 2.1.2 RETAINED INCOME Balance at the beginning Ordinary share dividends Balance at the end 160 900 9 Copyright reserved Please turn over

Downloaded from hlayiso.com Downloaded from Stanmorephysics.com Accounting / P1 Preparatory Examination September 2022 NSC ~ Answer book 2.2. Cash Flow Statement for the year ended 28 February 2022 Cash flow from operating activities Cash generated from operations Dividends paid (348 500) Cash flow from investing activities (417 000) Purchases of Fixed assets Proceeds from sale of fixed assets 583 000 Cash flow from financing activities Proceeds from shares issued Buy-back of shares (12 500) Net change in cash and cash equivalent Cash and cash equivalent at the beginning Cash and cash equivalent at the end 321 500 18 Copyright reserved Please turn over

Downloaded from hlayiso.com Downloaded from Stanmorephysics.com Accounting 2.3.1 2.3.2 2.3.3 NSC — Answer book 4 Preparatory Examination September 2022 % operating profit on sales 2 Net asset value per share (NAV) 3 Debt-equity ratio 3 TOTAL MARKS 40 Copyright reserved Please turn over

Downloaded from hlayiso.com Downloaded from Stanmorephysics.com Accounting / P14 7 Preparatory Examination September 2022 NSC — Answer book QUESTION 3 3.1 Liquidity Identify the company that is managing its liquidity more efficiently. Quote THREE financial indicators, with figures, to support your choice. 3.2 Returns, earnings and dividends: e Explain whether the shareholders of Khombindlela Ltd should be satisfied with their returns on investment. Quote figures. The directors of Thanduyise Ltd changed the dividend pay-out policy. e Explain this change. Quote figures. * Explain why you consider this change to be either a responsible or an irresponsible decision. Provide TWO point. « Nijabulo feels that the dividends he received in Thanduyise Ltd is better than that of Khombindlela Ltd. Explain why you agree with him. Quote figures. Copyright reserved Please turn over

Downloaded from hlayiso.com Downloaded from Stanmorephysics.com Accounting / P4 Preparatory Examination September 2022 NSC — Answer book 3.3 Risk and gearing Compare the risk and gearing of each company and explain which company is managing debt more effectively. Quote TWO financial indicators, with figures. 6 3.4 Shares and share holding: 3.4.1. Njabulo, the majority shareholder of Thanduyise Ltd, was not aware that directors issued additional shares during the financial year. Explain why he wants to maintain his position as the majority shareholder. Provide ONE point. 2 3.4.2 Calculate the number of shares that he must purchase to achieve this objective, and the amount he will require to purchase these shares. 4 3.4.3 What advice would you offer Njabulo about his shares in Khombindiela Ltd? Provide TWO point. Quote figures. 4 TOTAL MARKS 35 Copyright reserved Please turn over

Downloaded from hlayiso.com Downloaded from Stanmorephysics.com Accounting / P14 9 Preparatory Examination September 2022 NSC — Answer book QUESTION 4 4.1.1 | Explain what is meant by good corporate governance and explain why it is important to the shareholders 3 4.1.2 | Provide ONE possible reason why Freedom Book says he will vote against the proposal by Mngoma Ltd. 2 4.1.3 | Provide TWO points of advice on how the other directors should handle this matter. 4 Copyright reserved Please turn over

Downloaded from hlayiso.com Downloaded from Stanmorephysics.com Accounting / P1 10 Preparatory Examination September 2022 NSC — Answer book 4.2.1 | Choose the correct word from those given in brackets. Zululand Ltd received a /an ( qualified/unqualified/disclaimer) audit report. Give a reason. 4.2.2 | Explain TWO consequences of this audit report for the company and/or the CEO. TOTAL MARKS | 15 Copyright reserved