Accounting Grade 12 Paper 1 WC Prelim 2022 Addendum

Downloaded from hlayiso.com Accounting P2 1 FS/September 2021 Grade 12 Prep. Exam. Answer Book CAPE WINELANDS / WEST COAST EDUCATION DISTRICTS SCHOOL: __________________________________________________________ LEARNER: _________________________________________________________ PREPARATORY EXAMINATION GRADE 12 ACCOUNTING P1 SEPTEMBER 2022 SPECIAL ANSWER BOOK QUESTION MAXIMUM MARK MODERATED MARKS OPTAINED MARK 1 20 2 60 3 30 4 40 TOTAL 150 This answer book consists of 9 pages. Please turn over

Downloaded from hlayiso.com Accounting P1 2 September 2022 Grade 12 Prep. Exam. Answer Book QUESTION 1 1.1 1.1.1 1.1.2 1.1.3 3 1.2 ACCOUNT ACCOUNT NO. AMOUNT A O L DEBITED CREDITED 1.2.1 1.2.2 1.2.3 9 1.3.1 Identify the type of audit report that the company received. Give a reason for your answer. TYPE OF REPORT REASON 2 1.3.2 Explain why the auditor referred to pages 10 to 25 2 Explain why the auditor referred to International Financial Reporting Standards and the Companies Act of South Africa 2 1.3.3 Name any TWO items of audit evidence that the auditors may have used. 2 TOTAL MARKS 20 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting P1 3 September 2022 Grade 12 Prep. Exam. Answer Book QUESTION 2 2.1 CONCEPTS 2.1.1 2.1.2 2.1.3 3 2.2 RIZPAH LTD 2.2.1 Calculate the correct net profit after tax by accounting for the adjustments with information C and D. Indicate (+) for increase and (–) for decrease. Workings Answer Incorrect net profit before tax 2 226 840 Provision for bad debts Audit fees Rent income Correct net profit before tax 11 Income tax Correct net profit after tax 2.2.2 Ordinary Share Capital Note Authorised: 1 200 000 ordinary shares Issued Shares in issue on 1 March 2021 8 Shares in issue on 28 February 2022 11 931 000 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting P1 4 September 2022 Grade 12 Prep. Exam. Answer Book 2.2.2 Retained Income Note Balance at beginning of financial year Dividends • • 8 Balance at the end of financial year 1 794 000 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting P1 5 September 2022 Grade 12 Prep. Exam. Answer Book 2.2.3 Prepare the Statement of Financial Position on 28 February 2022 ASSETS NON-CURRENT ASSETS CURRENT ASSETS 3 120 000 Cash and cash equivalents TOTAL ASSETS EQUITY AND LIABILITIES ORDINARY SHAREHOLDERS’ EQUITY Ordinary share capital 11 931 000 NON-CURRENT LIABILITIES Loan: CW-Loans CURRENT LIABILITIES Trade and other payables TOTAL EQUITY AND LIABILITIES 30 TOTAL MARKS 60 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting P1 6 September 2022 Grade 12 Prep. Exam. Answer Book QUESTION 3 3.1 3.1.1 3.1.2 3.1.3 3 3.2.1 Calculate: Income tax paid Workings Answer 4 Calculate: Dividends paid Workings Answer 4 Calculate: Proceeds of shares issued Workings Answer 5 Calculate: Fixed Assets purchased Workings Answer 5 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting P1 7 September 2022 Grade 12 Prep. Exam. Answer Book 3.2.2 Calculate financial indicators for the year ended 28 February 2022: % Operating profit on sales Workings Answer 3 Net Asset Value per share Workings Answer 3 Debt-equity ratio Workings Answer 3 TOTAL MARKS 30 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting P1 8 September 2022 Grade 12 Prep. Exam. Answer Book QUESTION 4 4.1 KIM LTD AND CHEVY LTD 4.1.1 Explain why directors should be interested in the price of their companies’ shares on the JSE. 2 Calculate the number of additional shares in Kim Ltd that Mike was able to buy on the JSE in 2022. Workings Answer 3 Comment on the price that Mike paid for these shares and provide TWO reasons why he might have been satisfied to pay this price. Comment (with figures): Reason 1: Reason 2: 6 4.1.2 Explain your opinion on which company has the better dividend pay-out policy. Quote figures. 6 Compare and comment on the % return on equity earned by EACH company. Quote figures. 4 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting P1 9 September 2022 Grade 12 Prep. Exam. Answer Book Mike feels that the earnings per share (EPS) of Chevy Ltd is much better than that of Kim Ltd. Explain why he feels this way. Quote figures or calculations. 5 4.1.3 Explain TWO decisions taken by the directors of Kim Ltd in response to the state of the economy, and how these decisions will affect the company in future. Decision 1 (with figures): Decision 2 (with figures): Effect on Kim Ltd in future: 6 Explain TWO decisions taken by the directors of Chevy Ltd that affect risk and gearing. Quote and comment on TWO financial indicators. Decision 1 (with figures): Decision 2 (with figures): Quote and comment on TWO financial indicators that affect risk and gearing. 8 TOTAL MARKS 40 Copyright reserved Please turn over