# Accounting Grade 12 Paper 1 WC Prelim 2022 Memo > Grade 12 Accounting Paper 1 memorandum from the WC Prelim 2022, 11 pages. Read online or get the free PDF download, question paper linked when available. - Page: https://www.hlayiso.com/library/2022-wc-prelim-p1-memo/8da4c338-d0e1-4595-b1de-5a98f0964994 - Updated: 2026-09-27 - Subject: Accounting - Grade: Grade 12 - Document type: Memorandum - Year: 2022 - Exam period: WC Prelim - Paper: 1 - Curriculum: CAPS - Pages: 11 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 WC Prelim 2022 Memo](https://www.hlayiso.com/library/2022-wc-prelim-p1-memo/8da4c338-d0e1-4595-b1de-5a98f0964994) ## About this document Accounting · Grade 12 · WC Prelim · 2022. Memorandum, 11 pages. Read online or download the PDF. 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Layout, diagrams and tables may not survive extraction. ### Page 1 Downloaded from hlayiso.com ERRATA: ACCOUNTING – PAPER 1 Colleagues Can you please adjust the marking guidelines with the following amendments / corrections: (Errata and changes is indicated in blue: Question 2.2.3 – Statement of Financial Position (Adjustment F not applied to Trade and other receivables / also affecting inventory as balancing figure CURRENT ASSETS 3 120 000 Inventory balancing figure 1 449 570  Trade and other receivables Net trade debtors income tax diff one part correct   see 2.2.1   1 302 930  (1 312 500 – 39 200 + 38 400 + 18 150 – 26 920)   see fin. assets one part correct Cash and cash equivalents (7 500 + 360 000) 367 500  See TOTAL EQUITY & LIABILITIES TOTAL ASSETS 11 21 165 000 Question 3.2.1 - Calculations of dividends paid and Proceeds of shares issued Calculate: Dividends paid Workings Answer    210 000 + 97 500 OR 307 500 one part correct 97 500 + 396 000 – 186 000 4 one mark one mark one mark also accept ledger account format / signs may be swopped Calculate: Proceeds of shares issued Workings Answer     -4 650 000 + 930 000 + 3 862 000 142 000 5 one part correct also accept ledger account format / signs may be swopped Question 3.2.2 – Calculate % operating profit on sales % Operating profit on sales Workings Answer 1 016 950   𝑥 100/1 23,3% 4 362 500  one part correct, must be % 3 ### Page 2 Downloaded from hlayiso.com ERRATA: REKENINGKUNDE – VRAESTEL 1 Kollegas Kan u asseblief die nasiengids met die volgende veranderinge / korreksies: (Errata en veranderinge is in blou: Vraag 2.2.3 – Staat van Finansiële posisie (Aansuiwering F is nie by Handels- en ander ontvangbare bedrae in berekening gebring nie / affekteer ook balanserende handelsvoorraad BEDRYFSBATES 3 120 000 Voorraad balanserende syfer 1 449 570  Handels- en ander ontvangbare bedrae Netto handelsdeb. Inkomstebel. verskil een deel korrek   sien 2.2.1   1 302 930  (1 312 500 – 39 200 + 38 400 + 18 150 – 26 920)   sien fin. bates een deel korrek Kontant en kontantekwivalente (7 500 + 360 000) 367 500  Sien TOTALE EKWITEIT EN LASTE TOTALE BATES 11 21 165 000 Vraag 3.2.1 - Berekening van dividend betaal en Opbrengs met aandele uitgereik Bereken: Dividende betaal Bewerkings Antwoord    210 000 + 97 500 OF 307 500 een deel korrek 97 500 + 396 000 – 186 000 4 een punt een punt een punt aanvaar ook grootboekrekening format / tekens mag andersom gebruik word Bereken: Opbrengs met aandele uitgereik Bewerkings Antwoord     -4 650 000 + 930 000 + 3 862 000 142 000 5 een deel korrek aanvaar ook grootboekrekening format / tekens mag andersom gebruik word Vraag 3.2.2 – Bereken % bedryfswins op verkope % Bedryfswins op verkope Bewerkings Antwoord 3 1 016 950   𝑥 100/1 23,3% 4 362 500  een deel korrek, moet % wees ### Page 3 Downloaded from hlayiso.com Accounting P2 1 FS/September 2021 Grade 12 Prep. Exam. Answer Book CAPE WINELANDS / WEST COAST EDUCATION DISTRICTS GRADE 12 ACCOUNTING P1 MARKING GUIDELINES SEPTEMBER 2022 MARKS: 150 MARKING PRINCIPLES: 1. Unless otherwise stated in the marking guidelines, penalties for foreign items are applied only if the candidate is not losing marks elsewhere in the question for that item (no penalty for misplaced item). No double penalty applied. 2. Penalties 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 a final figure, allocate the part-mark for the working for that figure (not the method mark for the answer). Note: if figures are stipulated in memo for components of workings, these do not carry the method mark for final answer as well. 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. Where penalties are applied, the marks for that section of the question cannot be a final negative. 8. Where method marks are awarded for operation, the marker must inspect the reasonableness of the answer. 9. Operation means 'check operation'. 'One part correct' means operation and one part correct. Note: check operation must be +, -, x, ÷, or per memo. 10. In calculations, do not award marks for workings if numerator & denominator are swapped – this also applies to ratios. 11. In awarding method marks, ensure that candidates do not get full marks for any item that is incorrect at least in part. Indicate with a . 12. Be aware of candidates who provide valid alternatives beyond the marking guideline. Note that one comment could contain different aspects. 13. Codes: f = foreign item; p = placement/presentation. These marking guidelines consist of 9 pages. Please turn over ### Page 4 Downloaded from hlayiso.com Accounting P1 2 September 2022 Grade 12 Prep. Exam. Marking Guidelines QUESTION 1 1.1 1.1.1 limited  1.1.2 payables  1.1.3 materiality  3 1.2 ACCOUNT ACCOUNT NO. AMOUNT A O L DEBITED CREDITED Shareholders for 1.2.1 Bank  225 000 - 0 -  dividends  or 0 per Ordinary share- 1.2.2 Bank  550 000 + + 0  line holders capital  1.2.3 Income tax  SARS:Income tax  840 000 0 - +  ✓ 9 1.3.1 Identify the type of audit report that the company received. Give a reason for your answer. TYPE OF REPORT Unqualified audit report  accept “clean” or “good” report; mark type and reason independently REASON Any valid reason  accept short, incomplete statements if message is clear 2 • The audit report indicates 'fairly present'. • The auditors did not identify any problems. 1.3.2 Explain why the auditor referred to pages 10 to 25 Any suitable explanation  part mark for unclear/incomplete/partial answers • The auditors are responsible only for reports presented on these pages of the Annual Report. • The audited financial reports / statements are found on these pages of the full report presented to the shareholders at the AGM 2 Explain why the auditor referred to International Financial Reporting Standards and the Companies Act of South Africa Any suitable explanation  part mark for unclear/incomplete/partial answers • The audit and the financial records/statements of the company are in compliance with both local and international requirements. • It affects uniform presentation of financial statements 2 1.3.3 Name any TWO items of audit evidence that the auditors may have used. Any TWO examples of evidence   individual examples of documents is one point Stock sheets / fixed assets register / source documents including EFT records / bank; debtors; creditors statements / signed contracts / employee profiles/ physical inspection of assets / journals 2 TOTAL MARKS 20 Please turn over ### Page 5 Downloaded from hlayiso.com Accounting P1 3 September 2022 Grade 12 Prep. Exam. Marking Guidelines QUESTION 2 2.1 CONCEPTS 2.1.1 internal auditors  2.1.2 external auditors  2.1.3 directors  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 - 3 740 Audit fees - 72 000    one part correct Rent income (153 600 / 8) x 2 + 38 400 operation one part correct Correct net profit before tax 2 189 500 11 NP before tax X 0,30 Income tax 656 850 operation one part correct Correct net profit after tax 1 532 650 2.2.2 Ordinary Share Capital Note Authorised: 1 200 000 ordinary shares Issued 11 475 000 900 000  Shares in issue on 1 March 2021 No. of shares x ASP or operation bottom-up (80 000)  Shares repurchased @ 12,75  (1 020 000)  ignore brackets ignore brackets one part correct 8 150 000  Additional shares issued 1 476 000 balancing figure 970 000  operation & Shares in issue on 28 February 2022 11 931 000 one part correct Please turn over ### Page 6 Downloaded from hlayiso.com Accounting P1 4 September 2022 Grade 12 Prep. Exam. Marking Guidelines 2.2.2 Retained Income Note Balance at beginning of financial year 1 129 850 balancing figure Net profit after tax 1 532 650 see 2.2.1 Repurchase of 80 000 shares (204 000)  Dividends (664 500)  Interim + Final 8   344 400 • Interim (42/100 x 820 000) one part correct • Final 320 100  Balance at the end of financial year 1 794 000 Please turn over ### Page 7 Downloaded from hlayiso.com Accounting P1 5 September 2022 Grade 12 Prep. Exam. Marking Guidelines 2.2.3 Prepare the Statement of Financial Position on 28 February 2022 ASSETS NON-CURRENT ASSETS TA - CA 18 045 000  Fixed Assets NCA – Fin.A 17 671 500    one part correct Financial Assets (733 500 – 360 000) 5 373 500  CURRENT ASSETS 3 120 000 Inventory balancing figure 1 422 650  Trade and other receivables Net trade debtors income tax diff one part correct   see 2.2.1  1 329 850  (1 312 500 – 39 200 + 38 400 + 18 150)   see fin. assets one part correct Cash and cash equivalents (7 500 + 360 000) 367 500  See TOTAL EQUITY & LIABILITIES TOTAL ASSETS 11 21 165 000 EQUITY AND LIABILITIES operation ORDINARY SHAREHOLDERS’ EQUITY 13 725 000 Ordinary share capital 11 931 000 Retained income 2 1 794 000 NON-CURRENT LIABILITIES 5 490 000 OSE x 0,4 Loan: CW-Loans 2 5 490 000 CURRENT LIABILITIES 1 950 000    see 2.2.1  one part correct Trade and other payables (926 170 + 72 000 – 26 920) 971 250 Shareholders for dividends 320 100  Short term loan 342 000  balancing figure Bank overdraft 316 650 operation, one part correct 30 TOTAL EQUITY AND LIABILITIES 10 21 165 000 TOTAL MARKS 60 Please turn over ### Page 8 Downloaded from hlayiso.com Accounting P1 6 September 2022 Grade 12 Prep. Exam. Marking Guidelines QUESTION 3 3.1 3.1.1 B  3.1.2 A  3.1.3 C  3 3.2.1 Calculate: Income tax paid Workings Answer    -31 500 + 238 950 – 9 000  or 198 450 31 500 – 238 950 + 9000 one part correct 4 Calculate: Dividends paid Workings Answer    210 000 + 186 000 396 000 one part correct 4 Calculate: Proceeds of shares issued Workings Answer     -4 650 000 + 930 000 + 3 812 000 142 000 one part correct also accept ledger account format 5 Calculate: Fixed Assets purchased Workings Answer      5 329 000 – 245 000 – 204 000 – 5 917 550 1 037 550 or one part correct accept figure between -5 329 000 + 245 000 + 204 000 + 5 917 550 brackets 5 Please turn over ### Page 9 Downloaded from hlayiso.com Accounting P1 7 September 2022 Grade 12 Prep. Exam. Marking Guidelines 3.2.2 Calculate financial indicators for the year ended 28 February 2022: % Operating profit on sales Workings Answer 1 762 500   𝑥 100/1 40,4% 4 362 500  one part correct, must be % 3 Net Asset Value per share Workings Answer 4 312 500   𝑥 100/1 347,8 cents 1 240 000  accept R3,48 one part correct, must be value 3 Debt-equity ratio Workings Answer    1 750 000 : 4 312 500 0,4 : 1 one part correct, must be ratio x:1 3 TOTAL MARKS 30 Please turn over ### Page 10 Downloaded from hlayiso.com Accounting P1 8 September 2022 Grade 12 Prep. Exam. Marking Guidelines 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. Any ONE valid comment  one mark for partial or incomplete answer Responses for 2 marks: • It shows public confidence in the company • It can be compared to other companies / an external indicator 2 • Shareholders will want to have capital growth on their investment • Directors will be judged on the performance of the shares as this reflects the performance of the company Calculate the number of additional shares in Kim Ltd that Mike was able to buy on the JSE in 2022. Workings Answer    one part correct 840 000 ÷ 16,80 50 000 shares 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. Accept two different comments for Kim Ltd OR Chevy Ltd Compare price paid to Nav  Figures  Reasons   KIM: JSE Price exceeds NAV by 180 cents (R16,80 – R15) Valid reasons for KIM: • He wants to be the majority shareholder • More influence over decisions by board of directors • JSE price reflects public demand for the shares • Potential for high returns in future CHEVY: JSE Price is lower than NAV by 90 cents (R8,90 – R8,00) Valid reasons for CHEVY Ltd: 6 • The JSE price is a good deal compared to NAV • Chevy is earning higher returns for him 4.1.2 Explain your opinion on which company has the better dividend pay-out policy. Quote figures. Choice: Either Kim OR Chevy Ltd  Reason: Either retaining funds OR rewarding shareholders  Figures: Kim Ltd pays out 67% (130c of 194c earned)  quote two figures or % 6 While Chevy Ltd pays out 96% (160c of 166c earned)  quote two figures or % be aware of alternative ways of explanation and calculation e.g. amount or % retained Compare and comment on the % return on equity earned by EACH company. Quote figures. Kim Ltd earns 6,2%  Award two marks for the difference 12% Chevy earns 18,2%  Comparison (may be implied)  Compare to interest rate (6,5%)  4 Please turn over ### Page 11 Downloaded from hlayiso.com Accounting P1 9 September 2022 Grade 12 Prep. Exam. Marking Guidelines 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. Quote EPS of Kim Ltd 194 cents  Quote EPS of Chevy Ltd 166 cents  Compare EPS of both companies to: Share value OR to number of shares owned OR % ROSHE OR Net Profit  Identify figures for any one comparison below  5 Kim Ltd Chevy Ltd • Cost of shares is high 1500c or 1680c Cost of shares is low 890c or 800c (earnings yield is 12,9% or 11,5%) (earnings yield is 18,7% or 20,8%) • EPS is earned on 580 000 shares EPS is earned on 1 430 000 shares • % ROSHE is 6,2% % ROSHE is 18,2% • NP after tax is R2 405 600 NP after tax is R4 316 000 (194c x 1 240 000 shares) (166c x 2 600 000 shares) 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: TWO valid decisions   Figures   • Sold fixed assets R3 600 000 / No new fixed assets bought (R0) • Did not issue new shares (R0) • Investments (reduced) R1 800 000 • Loan (repaid R3 200 000 Effect on Kim Ltd in future: Mark independently of the above decisions Any one valid comment:  one mark for partial or incomplete answer • The infrastructure / size of the company is decreasing which will affect future profit • The reduced infrastructure / size of the company could lead to cost savings (or increased profit) Response for 1 mark: 6 • Saving on interest / less risk Explain TWO decisions taken by the directors of Chevy Ltd that affect risk and gearing. Quote and comment on TWO financial indicators. Decision: TWO valid decisions   Figures   • Loan (increased) R7 600 000 • Shares (issued) R400 000 • Shares repurchased R0 Quote and comment on TWO financial indicators that affect risk and gearing.   Quote indicators with figures: Debt-equity ratio: 0,7 : 1; ROTCE 15,1% 8   Comments on: increased risk / positive gearing (ROTCE exceeds interest rate) TOTAL MARKS 40 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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