Accounting Grade 12 Paper 2 NW Prelim 2023 Memo

Downloaded from hlayiso.com tanmorephysics. com education Department: Education North West Provincial Government REPUBLIC OF SOUTH AFRICA NATIONAL SENIOR CERTIFICATE [ GRADE 12 l ��-------------------------------------------� ACCOUNTING PAPER 2 � II II II SEPTEMBER 2023 II II II ��------------------------------------------ -�., MARKING GUIDELINES II MARKS: 150 MARKING PRINCIPLES: 1. Unless otherwise stated in the marking guideline, 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. Unless otherwise stated, give full marks for correct answer. If answer incorrect, mark the workings. 4. If a pre-adjustment figure is shown as a final figure, allocate the part-mark as a working for that figure (not the method mark for the answer). Note: if figures are stipulated in marking guidelines 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. If candidates provide more than the required number of responses, inspect all responses to give benefit to the candidate. Penalties may be applied for foreign entries if earning full marks not related to Q (max -2 per Q). 8. This marking guideline is not for public distribution; as certain items might imply incorrect treatment. The adjustments made are due to nuances in certain questions. 9. Where penalties are applied, the marks for that section of the question cannot be a final negative. 10. Where method marks are awarded for operation, marker must inspect reasonableness of answer. 11. Opecation meaos 'check operation'. 'One part correct' means opecation and one •ct., Note, check operation must be+,-, x, +asper candidate'scalculation (if valid) or per marking gui 12. In calculations, do not award marks for workings if numerator & denominator are sw . , - this also applies to ratios. , 13. In awarding method marks, ensure that candidates do not get full marks for any ite · Is incorrect at least in part, Indicate with a IRI. 14. Be aware of candidates who provide valid alternatives beyond the marking guidelines. Note that one comment could contain different aspects. 15. Codes: f = foreign item; p = placemenUpresentation. These marking guidelines consist of 9 pages. Copyright reserved Please turn over

Downloaded from hlayiso.com acedowntoaded from Stanmorephysics.com NW/September 2023 NSC — Marking Guidelines QUESTION 1 1.1 | DEBTORS' AND CREDITORS' RECONCILIATION Debtors Creditors Item Debtors’ Debtors’ Creditors’ Creditors’ Control List Control List Balances / 36 100 36 730 47 550 46 020 Total 1 +2950 v 2 +4500 v +4500 v 3 +400 ¥ Oro 4 +230 Vv + 230M 5 - 50 v - 680 ¥ 6 - 980 ¥ - 980 v +980 ¥ 7 -220 Vv -220 Vv or -440 Two marks 39 800M 39 800 48 530M 48 530 15 1.2 BANK RECONCILIATION 1.2.1 CASH RECEIPTS JOURNAL CASH PAYMENTS JOURNAL Total 389 504 Total 287 000 vv 1800 y¥ 31210 y 31100 ¥ 391 y¥ 2970 ¥ 28115 y 4800 vv (2910 x 2) 5 820 435 994 mM 346 716 11 _ Both totals must include provisional totals 1.2.2 | Calculate the correct Bank balance in the ledger on the 31 August 2023. WORKINGS ANSWER 146 800 v + 435 994 MI - 346 716M 236 078) 4 Copyright reserved Please turn over

Downloaded from hlayiso.com Accdowntoaded from Stanmorephysics.com NW/September 2023 NSC — Marking Guidelines 1.2.3] Prepare the Bank Reconciliation Statement on 31 August 2023: Alternative DEBIT CREDIT Credit balance as per bank 222 405 = statement M 222 405 Credit-outstanding deposit 16 878 ¥ 16 878 Creditoutstanding deposit 2 910 ¥ 2910 Creditbank error 1025 ¥ 1025 Debit outstanding EFT 322 (7 140) v¥ 7140 Debit balance as per Bank (236 078) | M1 236 078 account 7 Should be the same 7] 243 218 243 218 1.2.4 | An investigation revealed that the deposit of R31 210, dated 9 July 2023, did not appear in the July and August Bank Statements. This was in respect of cash received, that Joubert never deposited. You advised the owner to write off this amount. State the GAAP principle that applies to this decision: Principle of Prudence ” Explain TWO procedures, besides division of duties, to be implemented to prevent such a loss in future. Any TWO valid point “ — ~ Do not accept division of duties as an answer ¢ Consider cash in transit. Regular and timely supervision/monitor cash. e Cash must be deposited daily (check deposit slip against receipts). Encourage EFT payments by customers/debtors. Request the bank to send confirmation of all transactions 3 (e.g. sms). TOTAL MARKS 40 Copyright reserved Please turn over

Downloaded from hlayiso.com Acedowntoaded from Stanmorephysics.com NW/September 2023 NSC — Marking Guidelines QUESTION 2 21 COST CONCEPTS 2.1.1 | True 2.1.2 | Falsey 2.1.3 | Falseyv 3 2.2. MAQLAWN:MOWER MANUFACTURERS 2.2.1. | FACTORY OVERHEAD COST Indirect materials (13 201 V+ 38 400 v - 15 100 v) a eee ie Salaries: foreman 255 200M 39 600 x 100/18 = 220 000” 17 600 x 100/8 = 220 000 220 000 + (17 600 x 2 = 35 200%) Electricity and water (104 000 x 90%) 93600 v Rent expense (115 200 x 450/750) 69 120vVvv Insurance (18 100 x 100/25 = 72 400 x 45%) 32 580Vv Depreciation: factory plant and machinery 271 999Vv (2 800 000 — 2 5288 000 = 272 000 - 1) Operation 759 000M | |_15 2.2.2 | Production cost statement for the year ended 28 February 2023 Direct (raw) materials cost v 1335 400 Direct labour cost (12 600 x 13 x 12) vv 1965 600 Prime cost M 3 301 000 Factory overhead costs See 2.21 M 759 000 Total manufacturing cost Operation | M4 060 000 Work-in-process (beginning of the year) 160 000 M 4 220 000 Work-in-process at (end of the yak M (220 000) Cost of production of finished goods M 4 000 000 (4.015 000 ¥+ 95 000 ¥— 110 000 Y) One part correct | (~75 Copyright reserved Please turn over

Downloaded from hlayiso.com Accdowntoaded from Stanmorephysics.com NW/September 2023 NSC — Marking Guidelines 2.3 VITAMIN CHEWABLES 2.3.1 | Provide a calculation to confirm that the break-even point for the 2023 financial year is correct. WORKINGS ANSWER 2 942 400/¥ = 61 300 units (119 Vv -74%) One part correct 48 2.3.2. | Mimi is not happy with the number of units produced and sold. Provide evidence with figures to support her opinion. Reasons for positive answer The business sold (64 000 — 61 300), this is 2 700” units more than the break-even point, make profit on 2 700/64 000 X 100 =4,2%v. Reasons for a negative answer Production decreased from 78 000 — 64 000 = 14 000/78 000 X 100 = with on ae Too little units to make profit on One mark 2 700/64 000 = 4,2%. 2.3.3 | No theft has occurred in the business; however, Mimi is concerned that most of her workers are not loyal nor committed and do not have due respect for the products they produce. Provide TWO different points of evidence, with figures, to support her opinion. ers e Direct materials per unit increased from R30,40 to R41, it is an increase of 35%, One mark while production decreased from 78 000 units to 64 000 units, with 14 000 or 17,9%, One mark meaning there was a wastage or abuse of direct materials. e Direct labour cost per unit increased form R19,60 to R23, itis an increase of 17,3% One mark. All this while production decreased by 18% One mark, meaning labourers abused the time worked this year compared to last year, or they were inefficient this year. 4 2.3.4 | Mimi wants to improve her profit by R75 000 during the next financial year, while maintaining costs. Calculate the additional units that must be produced to achieve this target. WORKINGS ANSWER 75 000 ¥ = 1 562,5 of 1/563 4 119 v-71 Vv 48 TOTAL MARKS 45 Copyright reserved Please turn over

Downloaded from hlayiso.com Accdowntoaded from Stanmorephysics.com NW/September 2023 NSC — Marking Guidelines QUESTION 3 SKIRTS 3.1.1 | Provide a calculation to show how much stock of fabric (in metres) has been stolenfrom the storeroom. WORKINGS ANSWER vo v v v Mw 490 + 2 420 —2 312-470 128m 5 Provide a calculation to show how much stock of fabric (in metres) has been wasted in, or stolen from, the factory. WORKINGS ANSWER v v v ra 2 312 — (800 x 2,5) 2 000 312m 4 3.1.2 | Calculate the value (excluding VAT) of all the stock of fabric on hand at the year-end using the weighted average method. WORKINGS ANSWER 35 280 + 172 460 v v 4) 207 740 x 470 R33 552,50 2910V 1 OR 33 552,51 490 + 2.420 4 3.1.3. | Apart from obvious measures such as installing cameras and locking up the storage areas, what instructions should be given to the following staff managers to prevent theft of fabric? Provide TWO different points for each employee: STAFF MEMBERS INSTRUCTIONS Store room No unauthorised people allowed in store room. manager A register to be kept of stock in and stock out. v Sf Prior authorisation of requisition of fabric from the Any other relevant recede panes] Check documentation to physical stock (e.g. goods received or issued notes). Regular stock counts to agree with stock records. 2 Factory manager Be part of planning process of manufacturing forjperiod. v v Personal belongings of staff members to be loéked in Any other relevant cubicles during the production process. answers Staff to be body searched before and after work) shift. Close observation of workers during the production process. All extra ordinary activities that can lead to fabric damang must be recorded and accounted for (e.g. machine breakages, storm water, fire). 2 Copyright reserved Please turn over

Downloaded from hlayiso.com Accdowntoaded from Stanmorephysics.com NW/September 2023 NSC — Marking Guidelines DRESSES: 3.2.1 | Calculate the value of the closing stock (VAT excluded) of the dresses according to the Specific Identification method. WORKINGS ANSWER Model A 63=R1000 = R 6000Y a Model B 8%-R1800 = R14400V R26 000 Model C 4x=R1 400 = R 5600Y 4 3.2.2 | Calculate the stock holding period of dresses. WORKINGS ANSWER (20 000 + 26 000) 23000¥ x 61v 6,2 days H 228 000 ¥ 1 364 800 x 100/160 6,4 days 418_ x 61 Prods mutes 172 4 OR: USING UNITS 4 3.3 VALUE ADDED TAX A B c D DETAILS OF EXCLUDING INCLUDING VAT AMOUNTS TRANSACTIONS VAT VAT CALCULATED Purchase of skirt fabne R172 460 R198 329 - R25 869 Purchase of dresses R234 000 R269 100 - R35 100 v Sales of skirts a R469 200 + R61 200 vv Sales of dresses R364 800 R419 520 + R54 720 ¥ Administration salaries & wages R70 000 Other administration & operating expense R103 200 ~ R15 480 v Fixed assets urchased R142 600 - R18 600 vv Bad debts R2 300 R2 645 -R.345 4 AMOUNT PAYABLE TO SARS R201526 OR RECEIVABLE FROM SARS (Owed) 4 10 TOTAL MARKS 35 Copyright reserved Please turn over

Downloaded from hlayiso.com Accdowntoaded from Stanmorephysics.com NW/September 2023 NSC — Marking Guidelines QUESTION 4 4.1 | Explain how Anel changed the mark-up % from October to November, and provide TWO reasons why she might have chosen to do this. Explanatiomof how: e Decréased from 80% to 50% vv (100 000/200 000 x 100 = 50%) Reasons: e She-expects to sell more goods/wants to counter a competitor. v e She feels she will make a higher gross profit as a result of decreasing selling prices. v 4 4.2 Calculate the amount of the loan on 1 October 2023 13 160 v x 100/14 vx 12 v= R1 128 000M One part correct 4 4.3 | Calculate the proposed percentage increase that will be granted during November 2023. [51 840 — 48 000] /48 000 x 100 = 8% ~M One part correct 7 Do you think that the shop assistants will be satisfied with this increase? Give a reason to support your opinion. e The increase of 8% is greater than the rate of inflationv which at present is + 6%. v ° The store manager did not receive an increase. Two marks (Any relevant full answer) 2 4.4 Refer to Information B 4.4.1 | Comment on the budgeted and actual figures for advertising. What consequences does this have for the business? Quote figures or calculations to support your opinion. Seated consequence ¥ figure ¥ Advertising was budgeted for 30 000 (14,8% of sales), and only R6 000 (5%) was spent on advertising. Underspent by R24 000, hence, the drop in sales from R190 000 budgeted sales to R120 000 actual sales, (R70 000 less sales than the budgeted amount). 3 4.4.2 |The owner is concerned about the difference between the budgeted and actual figures of repair material. Why is she concerned and what could be the reason for this difference? Quote figures or calculations to support your opinion) Concem v Reason v Comets v e The repair material was budgeted for R24 000 (18,8%-of fee income), while the actual expense R29 200 (30% of fee income) was, overspent by R5 200. e The fee income was R7 000 less than the budgeted amount, wastage or theft can be the cause. 3 Copyright reserved Please turn over

Downloaded from hlayiso.com Accdowntoaded from Stanmorephysics.com NW/September 2023 NSC — Marking Guidelines 4.5. PROBLEM SOLVING 4.5.1 | Calculate the impact that the cost saving initiatives would have on the electricity expense SAVINGS WORKINGS ANSWER From-LED lights 780 000 x 20/100 x 70/100 109 200 From-air- 780 000 x 15/100 x 30/100 a conditioner motion 35 100 v1 sensors From electrical to | 780 000 x 30% x 60/100 gas stoves 140 400 v” 780 000 x 35/100 v From solar geysers 273 000 — 80 000 omnes c Total: R 477 700M 4.5.2 | Calculate how long it will take for the savings to cover the total cost of the initiatives proposed. How long: 1 197 500/477 700 = 2,5 years (2 years and 6 months / 30 months) vv 2 4.5.3 | Explain why you would advise James and Brenda to go ahead with the proposed measures or not. vv Go ahead with the proposal. After 2,5 years, the cost of the initiative will be paid off and will last for several years. A saving of 477 700/ 1 197 500 x 100 = 61,2% of the electricity bill is saved per year. A good cash injection to make up for the loss of guests. 2 Provide TWO other advantages that these changes would have for the future prospects of the hotel. vv These initiatives will increase the value of the hotel. The geysers will still have hot water during loadshedding. Low carbon footprint — eco-friendly. 2 TOTAL MARKS 30 TOTAL: 150 Copyrights reserved