Accounting Grade 12 Paper 2 WC Prelim 2022 Addendum

Downloaded from hlayiso.com CAPE WINELANDS / WEST COAST EDUCATION DISTRICTS SCHOOL: __________________________________________________________ LEARNER: _________________________________________________________ PREPARATORY EXAMINATION GRADE 12 ACCOUNTING P2 SEPTEMBER 2022 SPECIAL ANSWER BOOK QUESTION MAXIMUM MARK MODERATED MARKS OPTAINED MARK 1 30 2 50 3 35 4 35 TOTAL 150 This answer book consist of 10 pages

Downloaded from hlayiso.com Accounting P2 September 2022 Grade 12 Prep. Exam. Answer Book QUESTION 1: CREDITORS’ RECONCILIATION AND MANAGEMENT OF CASH (30 marks; 20 minutes) 1.1 CREDITORS’ RECONCILIATION 1.1.1 Creditors’ Ledger Statement received account of from Blue Blue Suppliers Suppliers Preliminary R29 375 R34 770 balance/total (i) (ii) (iii) (iv) (v) (vi) (vii) Correct balance/total 13 1.1.2 Calculate the average creditors’ payment period (in days). 5 1.1.3 Provide TWO internal control measures which can be implemented to have a good internal control over creditors. 4

Downloaded from hlayiso.com Accounting P2 3 September 2022 Grade 12 Prep. Exam. Answer Book 1.2 MANAGEMENT OF CASH 1.2.1 Provide TWO concerns the owner should have regarding these outstanding deposits. 4 1.2.2 Provide TWO solutions to ensure that this does not happen again. 4 TOTAL MARKS 30

Downloaded from hlayiso.com Accounting P2 4 September 2022 Grade 12 Prep. Exam. Answer Book QUESTION 2: COST ACCOUNTING (50 marks; 40 minutes) 2.1 ADVANCED MANUFACTURERS 2.1.1 Production Cost Statement for the year ended 30 April 2022. Direct labour cost 2 150 880 Prime cost Total manufacturing cost Work-in-progress (1 May 2021) 426 000 Cost of production of finished goods 17 2.1.2 Abridged Statement of Comprehensive Income (Income Statement) for the year ended 30 April 2022. Gross profit 3 750 000 10 Net profit 2.2 UNIT COST AND BREAK-EVEN 2.2.1 Explain the difference between fixed costs and variable costs. 2

Downloaded from hlayiso.com Accounting P2 5 September 2022 Grade 12 Prep. Exam. Answer Book 2.2.2 Calculate the break-even point for 2022. 5 2.2.3 Comment on the break-even point and the level of production for 2021 and 2022. Quote figures. 6 2.2.4 Identify the variable cost which the owner should be concerned about. Explain and provide a calculation to support your answer. 4 2.2.5 Even though there was a decrease in the fixed costs per unit, the owner is still not satisfied with the control over fixed costs. Explain and provide calculations to support his concern. 4

Downloaded from hlayiso.com Accounting P2 6 September 2022 Grade 12 Prep. Exam. Answer Book 2.2.6 Give ONE possible reason for the decrease in the selling and distribution cost. 2 TOTAL MARKS 50

Downloaded from hlayiso.com Accounting P2 7 September 2022 Grade 12 Prep. Exam. Answer Book QUESTION 3: INVENTORIES (35 marks; 30 minutes) 3.1 INVENTORY VALUATION 3.1.1 Calculate the value of closing stock on 28 February 2022. 10 Calculate the gross profit for the year ended 28 February 2022. 6 3.1.2 What advice can you offer Claude in this regard? State TWO points. 4

Downloaded from hlayiso.com Accounting P2 8 September 2022 Grade 12 Prep. Exam. Answer Book 3.2 MANAGEMENT OF STOCK (PROBLEM SOLVING) 3.2.1 Provide a calculation to prove that sun hats are being stolen. Give TWO points of advice to Claude. 9 3.2.2 Claude is unsure whether he is charging the correct prices for the sunglasses and the beach bags. Give him advice on EACH product. Quote figures. PRODUCT ADVICE WITH FIGURES Sunglasses Beach bags 6 TOTAL MARKS 35

Downloaded from hlayiso.com Accounting P2 9 September 2022 Grade 12 Prep. Exam. Answer Book QUESTION 4: BUDGETS AND INTERNAL AUDIT PROCESSES (35 marks; 30 minutes) 4.1 4.1.1 4.1.2 4.1.3 3 4.2.1 Calculate the missing amounts indicated by (i) and (ii) in the Debtors' Collection Schedule. Workings Answer (i) (ii) 4 Calculate the percentage discount allowed to debtors who settle in the month of the sales transactions. Workings Amount 5 4.2.2 Calculate budgeted amounts: Workings Answer Total sales   for July 2022 Payment to creditors  during June 2022 Additional loan to be acquired on 1 June 2022 11

Downloaded from hlayiso.com Accounting P2 10 September 2022 Grade 12 Prep. Exam. Answer Book 4.2.3 The directors did not adhere to the Cash Budget during May 2022. Identify TWO overpayments. Provide figures. Give a valid reason for EACH overpayment. Overpayment (with figures) Reason  Point 1  Point 2 6 4.2.4 Why are the auditors concerned that the agreement with Tradecor is unethical or possibly a crime? Explain THREE points. 6 TOTAL MARKS 35 GRAND TOTAL 150