Accounting Grade 12 Paper 1 GAU June 2023 Addendum

Downloaded from hlayiso.com I NAME AND SURNAME: NAME OF I QUESTION 1 2 3 4 TOTAL 11 pages Please turn 01•er

Downloaded from hlayiso.com Downloaded from Stan ANSWER BOOK (PAPER 1) QUESTION 1 1.1 4.4.1 1.1.2 1.1.3 1.2.1 | Calculate: Depreciation on vehicles WORKINGS ANSWER Vehicle 1: Vehicle 2: 1.2.2 | Calculate: Profit/Loss from sale of vehicle 2 WORKINGS ANSWER Profit OR Loss (Circle your choice.) NOTE: The amounts calculated above must be transferred;to Question 1.2.3, the Statement of Comprehensive Income.

Downloaded from hlayiso.com Downloaded from Stan ° ANSWER BOOK 3 (PAPER 1) 1.2.3 Statement of Comprehensive Income (Income Statement) for the year ended 28 February 2023 — Sales iy Cost of Sales Gross. profit Other income Discount received 2 090 Rent income (165 600 Gross operating income Operating expenses Salaries and wages 164 430 Audit fees 131 470 Stationery 17 630 Insurance (22 800 Bank charges (5 770 Directors’ fees (768 000 Operating profit Interest income Profit before interest expense Interest expense (1 300 Net profit before tax 4 Income tax pa Net profit after tax 1 050 455 26

1.2.4 Downloaded from hlayiso.com Downloaded from Stan (PAPER 1) ANSWER BOOK Statement of financial position (Balance sheet) on 28 February 2023 ASSETS NON-CURRENT ASSETS Fixed-assets Fixed Deposit CURRENT ASSETS Inventory Trade and other receivables (71 829 Cash and Cash equivalents TOTAL ASSETS EQUITY AND LIABILITIES SHAREHOLDERS' EQUITY Ordinary share capital 1 320 000 Retained income NON-CURRENT LIABILITIES CURRENT LIABILITIES Trade and other payables Bank overdraft (90 040 TOTAL EQUITY AND LIABILITIES 28 65

Downloaded from hlayiso.com Downloaded from Stan ; ANSWER BOOK| 5 (PAPER 1) QUESTION 2 2.1 12.1.4 2.1.2 2.1.3 3 2.2. BENFORCE LTD. 2.2.1 Ordinary Share Capital 900 000 | Ordinary shares on 1 March 2022 Ordinary shares on 28 February 2023 5 292 000 7 2.2.2 | Calculate income tax paid. 4 Calculate net change in cash and cash equivalents. Indicate whether this is a net inflow or net outflow 5 of cash by circling your choice.

Downloaded from hlayiso.com Downloaded from Stan 5 ANSWER BOOK (PAPER 1) 2.2.3 Cash effects of investing activities 2.2.4 | Calculate the percentage operating profit on sales. WORKINGS ANSWER Calculate the current ratio. WORKINGS ANSWER Calculate the stock turnover rate. WORKINGS ANSWER

Downloaded from hlayiso.com Downloaded from Stan 5 ANSWER BOOK (PAPER 1) 2.3 | List the TWO most significant decisions that the directors made during the year. Quote figures from the Cash Flow Statement in each case. 40

Downloaded from hlayiso.com Downloaded from Stan ANSWER BOOK (PAPER 1) QUESTION 3 3.1.1 | Explain why the liquidity of Lemi Ltd. is better than that of Dobi Ltd. Quote-THREE financial indicators to support your answer. 3.1.2. | Which company uses more loans? In each case, quote a financial indicator to support your answer. Explain whether this is a good idea or not. Quote a financial indicator to support your answer.

Downloaded from hlayiso.com Downloaded from Stan ; ANSWER BOOK (PAPER 1) 3.1.3 | The market price of the shares of Dobi Ltd. is doing much better than 3.1.4 3.2 that of Lemi Ltd. Explain, quoting TWO financial indicators to supportsthe opinion. Dobi Ltd has a better percentage of returns, earnings, and dividends than Lemi Ltd. Explain by quoting THREE financial indicators to support this opinion. Comment on the audit reports of Dobi Ltd and Lemi Ltd. In each case, explain how the report will affect Mary's decision concerning the shares she wishes to purchase in the company.

Downloaded from hlayiso.com Downloaded from Stan ANSWER BOOK] 19 (PAPER 1) 3.3 | Calculate the number of shares that Mary must buy to become the majority shareholder of Dobi Ltd. WORKINGS ANSWER 3 35

Downloaded from hlayiso.com Downloaded from Stannig {ne CO ANSWER BOOK| 44 (PAPER 1) QUESTION 4: 4.1 | What is insider trading? Explain in your own words. 2 4.2 | How does good corporate governance benefit the company? 2 4.3 | What are the roles and responsibilities of the remunerations committee? Explain briefly. 2 4.4 | There are seven primary characteristics of good governance. Name any TWO characteristics. 2 4.5 | Briefly explain why it is important for a company to include non- executive as well as executive directors on the board of directors. 2 10