2023 MP Prelim P2 Memo_hlayiso.com_.pdf

Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE GRADE 12 ACCOUNTING SEPTEMBER 2023 MARKING GUIDELINES MARKS: 150 MARKING PRINCIPLES: 1. Penalties for foreign items are applied only if the candidate is not losing marks elsewhere in the question for that item. No double penalty applied. 2. Full marks for correct answer. If answer incorrect, mark the workings provided. 3. 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). 4. 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. 5. Where indicated, part-marks may be awarded to differentiate between differing qualities of answers from candidates. 6. Where penalties are applied, the marks for that section of the question cannot be a final negative. 7. Where method marks are awarded for operation, the marker must inspect the reasonableness of the answer before awarding the mark. 8. In awarding method marks, ensure that candidates do not get full marks for any item that is incorrect at least in part. 9. Codes: f=foreign item; p=placement/presentation. 10. Teachers must do the paper before they start marking. This marking guideline consists of 9- page

Downloaded from hlayiso.com Accounting/P2 2 Mpumalanga/September 2023 NSC - Memorandum QUESTION 1 1.1.1 Calculate the Direct labour cost on 30 June 2023 Normal time (1 400 x R40 x 5) Operation one part correct R 280 000  Overtime 384 000  If normal time x 11,5% Employer’s contribution (R280 000 x 11,5%) 32 200  Operation one part correct 696 200  5 1.1.2 Prepare the Production Cost Statement for the year ended 30 June 2023. Direct material cost (45 000 x R11,65) 524 250  Direct labour cost See 1.1.1 696 200  Prime cost DMC+DLC 1 220 450  101 300 +25 200 Or (33 600 -25 200) Factory overhead cost (134 900  - 8 400) 126 500  Total manufacturing cost PC+FOHC 1 346 950  Work-in-process (1 July 2022) 22 450  1 369 400 Work-in-process (30 June 2023) Operation (36 900)  Total cost of production of finished goods 1 332 500  (20 500 x R65) 13 1.1.3 Identify ONE problem relating to the supervision of workers. Quote figures. Suggest ONE strategy the business can use to improve the supervision of workers. Problem Solution Problems  Figures   Problem 1 The workers do not work the Workers should be normal time hours according to monitored to ensure they the employment conditions – only work the correct number of 1 400 instead of 1 920. OR normal hours. / Workers The workers worked too much must first work the correct overtime as compared to normal numbers of normal time time - 69% before booking overtime. Or The level of production is too low. Monitor workers to ensure For the 2 360 hours worked, they they produce two fabric Problem 2 should have produced a total baskets per hour. / Pay number of 23 600 (2 360 x 5 x 2) workers for each fabric fabric baskets, but they only basket completed. / produced 20 500 fabric basket/ Complete uncompleted produced 3 100 less. tasks under normal hours. 4 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 3 Mpumalanga/September 2023 NSC - Memorandum 1.2.1 Provide a calculation to confirm that the break-even point of 2 520 units for 2023 is correct. 21 x 3 000 R63 000  = 2 520 units R100 - 75 25 4 1.2.2 Comment on the level of production achieved in relation to the break-even point for both years. Quote figures. Compare BEP with level of production  Figures   Decrease in profitability by 377 units although production increased by 500 units.  Business produced 857 units more than BEP in 2022 and 480 units more than BEP in 2023. 3 1.2.3 Provide TWO possible reasons for the change in direct material cost per unit. Any TWO valid explanation    Wastage, poor workmanship (mistakes)  Increase in transport costs (carriage on purchases)  Not able to get bulk discounts 4 1.2.4 The owner, Ronny, does not understand why the fixed costs per unit decreased although production has increased. Prove ONE explanation. Any valid reason  part mark for incomplete / unclear response  Fixed costs is not influence by level of production (Economies of scale) Fixed cost per unit will decrease as production increases, due to fixed costs not being influenced by level of production. Economies of scale. 2 TOTAL MARKS 35 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 4 Mpumalanga/September 2023 NSC - Memorandum QUESTION 2 2.1 2.1.1 Weighted-average  2.1.2 Specific identification method  2.1.3 Perpetual  3 2.2.1 Calculate the value of the stock on hand on 30 June 2023 using the First in first out method (FIFO). 13 x R4 400 = R57 200 185 x R4 600 = R851 000 R908 200  One part correct 5 2.2.2 Calculate the stockholding period (in days) on 30 June 2023. Use the closing stock figure. See 2.2.1 908 200 x 365 days (320 000 +2 682 500- 23 000 -908 200) 160 days 2 071 300 One part correct 6 2.2.3 Comment on the stockholding period. Provide ONE point with figures. Note that the stockholding period for 2022 was 120 days. Any ONE valid points  part mark for incomplete / unclear response  The stock holding period increased from 120 days to 160 days.  Stock is not selling as fast as the business wants, more than 5 months on shelves. 2 2.2.4 Calculate the number of bicycles missing 80+640 = 720  – 5  – 510  – 198  = 7 missing  One part correct 5 Provide ONE internal control measure he can use to solve this problem. Any ONE valid points  Improve physical security / count stock at regular intervals. Rotate duties / the one receiving stock should not be the same person issuing. Do regular stock control against records. Security tags on products 2 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 5 Mpumalanga/September 2023 NSC - Memorandum 2.3.1 Provide TWO points that shows that Buhle and her customers are happy with the quality of tekkies. Quote figures. Any TWO valid points with figures   part mark for incomplete / unclear response  No (0) returns to suppliers and that shows good quality of the product.  Units sold increased from 210 to 230 (by 20 units) / Customers are not discouraged by the increase in mark-up from 55% to 65%.  Gross profit increased from R80 850 to R149 500 4 2.3.2 Explain why it was a good idea to change to a cheaper supplier of sandals. State TWO points. Quote figures Any TWO valid points   part mark for incomplete / unclear response  Returns decreased from 14 units to zero units  Closing stock of units decreased from 30 units to 18 units 4  Stockholding period decreased from 84 days to 58 days 2.3.3 Identify TWO different problems that Buhle continued to experience in 2023 even though she reduced to selling price of shoes as strategy in response to a new competitor. Quote figure. Any TWO valid points Explanations   Figures    Units sold still decreased from 123 units to 100 units  Stock on hand of units increased from 9 units to 25 units (no demand for product)  Stockholding period increased from 28 days to 91 days 4 TOTAL MARKS 35 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 6 Mpumalanga/September 2023 NSC - Memorandum QUESTION 3 3.1 BANK RECONCILIATION 3.1.1 CASH RECEIPTS JOURNAL CASH PAYMENT JOURNAL Details Amount Details Amount Total R 510 600 Total R 484 450 Interest 145  Bank charges 1 425  Rent income 6 250  Insurance 1 850  EFT no. 613 900  Cancel deposit 15 000  Car battery 2 700  Both totals 516 995  506 325 9 3.1.2 Calculate the correct bank balance in the ledger on 31 July 2023. WORKINGS ANSWER (+ 10 670 two method marks) 25 700 + 516 996 – 506 325 25 700 506 325 36 370 516 995 c/d36 370 one part correct 4 3.1.3 Bank Reconciliation Statement on 31 July 2023 Alternative Debit Credit Balance per Bank Statement R31 615 R 31 615  Credit outstanding deposit 10 000 10 000  Debit outstanding EFT’s: No. 652 (5 650) 5 650  No. 655 (1 445) 1 445  Credit amount wrongly debited 1 850 1 850  Balance as per Bank Account 36 370 36 370  Could be CR -1 (max -1) foreign / superfluous items 43 465  43 465 Both totals 8 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 7 Mpumalanga/September 2023 NSC - Memorandum 3.1.4 Explain TWO concerns the owner should mention to the bookkeeper relating to the internal control over cash resources. Quote figures. In each case, explain a strategy to prevent such problems in future. Concern with evidence Strategy Problem   Figure   Specific advice based on evidence   R15 000 missing/stolen Division of duties: the person writing up the transaction should not make the deposits. / Check that the total of cash slips agree with the total of the deposit slip. th Rolling of cash, R12 600 on 10 of Create a policy for regular, daily June, only deposited in July depositing. / Internal auditor must check Deposits not done regularly (routine) that the cashier is depositing cash daily. / Appoint a different person to do the depositing 6 3.2 CREDITORS RECONCILIATION 3.2.1 Indicate the changes that must be made in the Creditors’ Control Account and Creditors’ List to take into account the errors and omissions noted. Indicate an increase with a (+) or decrease with a (-) next to each amount. Creditors’ Control Creditors’ List Provisional balance/total R 70 650 R32 600 (i) + 900  (ii) + 3 720  + 3 720  (iii) - 4 500  (iv) - 32 800  (v) + 8 850  41 570  41 570 Both totals 9 3.2.2 The owner of Titus Stores is not satisfied with the service and quality of goods ordered from creditor Spring Ltd. Explain TWO factors that he must consider before changing to another supplier. Any TWO valid points    Arrangement a meeting to discuss dissatisfaction / re-emphasise terms and conditions / raise concerns about products / about customer- satisfaction.  Renegotiate terms offered by the suppliers /  Ability to meet the demands of the business by the supplier  The quality of the products they are selling 4 TOTAL MARKS 40 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 8 Mpumalanga/September 2023 NSC - Memorandum QUESTION 4 4.1 Complete the Debtors Collection Schedule for November 2023. Month Credit Sale October November August 2023 74 000 16 280 0 September 2023 68 000 27 200 14 960  October 2023 70 000 24 010 28 000  November 2023 64 000 21 952  Cash from debtors 67 490 64 912  One part correct 7 · 4.2 WORKINGS ANSWER (70 000 + 17 500) Three marks Payment 87 500x 100/125 = 70 000 x 95%  66 500 (i) to one part creditors OR 87 500 x 100/125 = 70 000 – 3 500 OR 87 500 x 0,8 – 3 500 correct 5 Two marks 20 800 x 107,5%= 22 360 + 5 200 Salaries of 27 560  (ii) sales OR one part assistants Two marks one mark correct 5 590 x 4 = 22 360 + 5 200  4 Cash (37 610) (iii) surplus/ 14 890 – 52 500 Must be deficit negative 2 4.3 Comment on the cash balances. Provide figures. Any valid comment  Figure/s  The actual closing balance is an overdraft of R45 400 (difference R30 510 compared to the budgeted amount) 2 Explain how Jane, the owner, can improve the cash balances in future. Provide TWO points. Any TWO valid comments   Encourage debtors to pay faster Charge clients for deliveries Negotiate with creditors for longer Increase cash sales payment terms Look for alternative income e.g. Decrease mark-up to increase sales commission 4 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting/P2 9 Mpumalanga/September 2023 NSC - Memorandum 4.4 Calculate the percentage increase in rent on 1 November 2023. 4.4.1 (12 544 – 11 200) 1 344 x 100 = 12%  one part correct 11 200  3 4.4.2 The amount of the interest on fixed deposit expected to be received in November 2023.    16 830 x 2 /102 = R330 one part correct OR One mark two marks/0 one method mark 16 830 – (16830 ÷ 1,02) = R330 3 4.5 Identify TWO payments that you consider to be poorly managed in October 2023. In EACH case, give a suggestion to improve the internal control of the items identified. PAYMENT ADVICE  Relevant advice  Advertising The business must make use of the budgeted amount for advertising to influence sales Drawings Stick to the budget or amend the budget to accommodate the increase in drawings. Maintenance of office Equipment must be maintained properly to prevent equipment it from breaking down. 6 4.6 Provide TWO reasons why Jane should be concerned about the control over debtors. Quote figures. Explanation   Figures    Collection trends reveal only 35% of debtors pay within 30 days. They not attracted to the 2% discount. On 31% of debtors are current with their accounts  26% of debtors accounts are more than 60 days overdue / R16 250  Actual amount collected from debtors in October (R43 870) is less than the budgeted amount of (R67 490) or by (R23 620) 4 TOTAL MARKS 40 TOTAL: 150 Copyright reserved