# Accounting Grade 11 P1 Eastern Cape November 2012 Memo (Eng) > Grade 11 Accounting Paper 1 memorandum from the Eastern Cape November Exam 2012 (English), 12 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/accn-p1-n12-memo-eng-final/06eab478-6872-4fe3-8d7e-5b5b4d18a1ab - Updated: 2026-09-27 - Subject: Accounting - Grade: Grade 11 - Document type: Memorandum - Year: 2012 - Exam period: Eastern Cape November Exam - Paper: 1 - Curriculum: CAPS - Pages: 12 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 11](https://www.hlayiso.com/library/grade-11) › [Accounting](https://www.hlayiso.com/library/grade-11/accounting) › [Accounting Grade 11 P1 Eastern Cape November 2012 Memo (Eng)](https://www.hlayiso.com/library/accn-p1-n12-memo-eng-final/06eab478-6872-4fe3-8d7e-5b5b4d18a1ab) ## About this document Accounting · Grade 11 · Eastern Cape November Exam · 2012. Memorandum, 12 pages. Read online or download the PDF. Read it free online on the page above; download the PDF from there. ## Document text Text extracted from the PDF. Layout, diagrams and tables may not survive extraction. ### Page 1 Province of the EASTERN CAPE EDUCATION NATIONAL SENIOR CERTIFICATE GRADE 11 NOVEMBER 2012 ACCOUNTING MARKING GUIDELINE (MEMORANDUM) MARKS: 300 GENERAL PRINCIPLES: 1 Where calculations are required, award full marks for the final correct answer. If the answer is incorrect, mark the workings provided. If the working amount is shown as a final answer, award the relevant marks allocated for workings (Income statement), and not the method mark for the answer. 2 Method marks are denoted by .  For calculations and final totals, at least one part of the workings must be correct for the method mark to be earned. For totals – inspect operation and reasonableness of answer before awarding the mark.  In cases where answers of previous questions must be used (carried forward answers), check the transfer.  Unless otherwise indicated, the positive or negative effect of any figure must be considered to award the mark. If no sign (+/-) or bracket is provided, assume that the figure is positive. 3 For questions requiring explanations and comments (2 marks or more), award part-marks. A good comment will normally mention and explain a point. Beware of different ways to say the same thing. Note that the marking guideline only offer suggested answers – read and try to make sense of what the learner is attempting to convey, and award marks accordingly. 4 Where penalties are applied (such as foreign items, misplaced items, omitted details, etc.), the marks for that section cannot be a negative. Penalties will be indicated next to the relevant questions where applicable. 5 Educators are advised to work through the question paper and compare it with this guideline. This memorandum consists of 12 pages. ### Page 2 2 ACCOUNTING (Memo) (NOVEMBER 2012) QUESTION 1 PARTNERSHIPS (105 marks ; 63 minutes) 1.1 MATCHING ITEMS 1.1.1 D  1.1.2 E  1.1.3 A  1.1.4 C  1.1.5 B  10 1.2 JJ STORES INCOME STATEMENT FOR THE YEAR ENDED 29 FEBRUARY 2012 Sales (540 270 – 18 020) 522 250 or 2 Cost of Sales (204 180)  GROSS PROFIT 318 070  Other Operating Income 62 880  Rent Income (46 520 – 3 800) 42 720  Discount received 2 180  Decrease in provision for bad debts (1 420 – 1070) 350  Fee Income 17 630   GROSS INCOME 380 950  Operating Expenses (138 575)  Consumable Stores (15 430 – 1430) 14 000 or 2 Insurance (8 725 – 225) 8 500  Salaries and wages 42 600  Stationery 9 288  Water and Electricity 12 545  Bad Debts (2 323 + 1 027) 3 350  Sundry expenses Any figure 31 700 * Trading Stock deficit (88 770 – 87 650) 1 120  Depreciation 15 472    OPERATING PROFIT 242 375  Interest Income (5 250 + 1 750) 7 000  Net Profit before Interest expense/Finance cost 249 375  Interest expense check operation (if no brackets) (9 375)  NET PROFIT FOR THE YEAR 240 000   40 ### Page 3 (NOVEMBER 2012) ACCOUNTING (Memo) 3 1.3 NOTES TO THE BALANCE SHEET 1.3.1 TRADE AND OTHER RECEIVABLES Debtors Control (27 777 – 1 027) 26 750 or 2 Provision for Bad Debts (1 070)  Net Trade Debtors 25 680  Accrued Income 1 750  Prepaid expenses 225  Check operation. Must score mark above. 27 655  8 *Candidates to use the format taught at your school. 1.3.2 CURRENT ACCOUNTS JAKOB JULIES TOTAL Salaries 90 000 86 600 176 600 Interest on Capital 26 400 17 000  43 400 PRIMARY DISTRIBUTION 116 400 103 600 220 000 Share in remaining profit (3:2) 12 000 8 000  20 000 NET INCOME FOR THE YEAR 128 400 111 600 240 000 Drawings  (83 610)  (24 140)  (107 750) 44 790 87 460 132 250 Balance (opening balance)  (9 850) 12 750  2 900 BALANCE (CLOSING BALANCE)*  34 940  100 210  135 150 21 * Must score marks above to earn mm. Check operation throughout. Alternative presentation: 1.3.2 CURRENT ACCOUNTS JAKOB JULIES TOTAL Profit as per Income Statement 128 400 111 600 240 000 Salaries 90 000 86 600 176 600 Interest on Capital 26 400 17 000  43 400 PRIMARY DISTRIBUTION 116 400 103 600 220 000 Share in remaining profit (3:2) 12 000 8 000  20 000 Drawings  (83 610)  (24 140)  (107 750) 44 790 87 460 132 250 Balance (opening balance)  (9 850) 12 750  2 900 BALANCE (CLOSING BALANCE)*  34 940  100 210  135 150 21 * Must score marks above to earn mm. Check operation throughout. ** Other variations of the format may be taught (such as starting with the opening balance, etc.) Educators are advised to award the marks where applicable. ### Page 4 4 ACCOUNTING (Memo) (NOVEMBER 2012) 1.4 Comment on the LIQUIDITY position of this business. Quote TWO relevant ratios to support your comment. Comment: Although some ratios show an improvement, the liquidity position is not sound. Debtors take too long to pay, cash balance is low, too much stock on hand. Two valid points  Current ratio – improved (1,6:1 to 1,9:1) Acid test ratio – did not show an improvement (0,9:1 to 0,5:1) Debtors average collection period – improvement (42 days to 39 days) Quote any two ratios. Quote figures relating to ratios.  (-1 for each incorrect ratio mentioned) 8 1.5 Calculate the total earnings of partner Jakob. (Show workings.) 90 000 + 26 400 + 12 000 = 128 400 (one part correct to score method mark)  4 1.6 Calculate the return on investment of partner Julies. Should he be satisfied with this return? Elaborate.   * 1 mm mark for the current account (opening and closing balance) and 1 mm for the capital account (opening and closing balance)  Yes/No  Although it is higher than the interest rate offered by banks, it did drop from last year’s return. Overall, a very good return on investment. Any valid comment based on the learner’s calculation above  8 1.7 Julies is concerned about the total drawings of Jakob. Explain why you think it bothers him, and provide TWO suggestions on how he can address this concern. Explanation: Jakob’s drawings is excessive (almost equal to his salary allowance) Julies’ drawings is about 30% of Jakob’s drawings. Jakob is taking advantage of his position as a senior partner (contributed more capital). Any valid explanation  Suggestions: Discuss this matter with the partner. Maybe he does not recognise that it is a problem. Negotiate an agreement (cash, trading stock, etc.) Set limits. (per month, annual) Compare with salary/interest on capital/sales figures. Any valid explanation  6 105 ### Page 5 (NOVEMBER 2012) ACCOUNTING (Memo) 5 QUESTION 2 MANUFACTURING CONCERNS (45 marks ; 27 minutes) 2.1 2.1.1 Selling and distribution cost  2.1.2 Direct labour cost  2.1.3 Factory overhead cost  2.1.4 Administration cost* (could also be  factory overhead cost when apportioned.) 4 2.2 FACTORY OVERHEAD COSTS (MANUFACTURING OVERHEADS) Rent expense (60% of 38 400) 23 040  Indirect materials (3 550  + 21 760 – 2 530) 22 780  Indirect labour 24 350  Factory manager’s salary 64 860 or 2 Insurance (8 880 x 2/3) 5 920  Water and electricity (16 600 x 4/5) 13 280  Sundry factory expenses 25 620  Check operation. Must score mark above. 179 850  Indirect labour and factory manager’s salary can be combined (89 210)  15 2.3 Calculate the selling price per cartridge. Hint: Calculate the number of units sold first. Units sold (190 + 17 500 – 440) = 17 250 (is equal to 2 marks) 1 940 625  17 250  = R112,50  4 ### Page 6 6 ACCOUNTING (Memo) (NOVEMBER 2012) 2.4 GENERAL LEDGER OF GAUTENG MANUFACTURERS WORK IN PROCESS STOCK ACOUNT 2011 1 Balance b/d 32 450 2012 30 Finished goods stock 1 312 500 Jul  Jun  2012 30 Direct Material Cost 490 000 Balance c/d 37 300 Jun  Direct Labour Cost 647 500  Factory overhead cost 179 850  1 349 800 1 349 800 2012 1 Balance b/d 37 300 Jul  7 FINISHED GOODS STOCK ACCOUNT 2011 1 Balance b/d 14 250 2012 30 Cost of sales  1 293 750 Jul  Jun  2012 30 Work in process stock 1 312 500 Balance c/d 33 000 Jun  1 326 750 1 326 750 2012 1 Balance b/d 33 000 Jul  6 2.5 Calculate the number of units Vusi had to produce in order to break even. (6 860 + 690) = 7 550 (fixed costs) 7 550  28 − 19  27 440/980 = R28 (selling price) (10 + 6 +3) = R19 (variable cost) = 838,8/839 units  5 2.6 Explain the usefulness of the break-even analysis, and comment on the level of production achieved by Vusi. Helps to set targets. Determines the number of units to produce to be profitable. Feasibility study, should we continue producing or close down. One valid point  Done well. Produced more than the break-even point. Need to increase production to increase profitability. One valid point (taking into account a comparison with the break-even point)  4 45 ### Page 7 (NOVEMBER 2012) ACCOUNTING (Memo) 7 QUESTION 3 CASH BUDGETS (45 marks ; 27 minutes) 3.1 KING DEALERS – DEBTORS COLLECTION SCHEDULE MONTHS CREDIT SALES MAY JUNE March 61 500  22 755 April  57 000  34 200  21 090 May 54 000  32 400 June 56 955 53 490 7 3.2 KING DEALERS CASH BUDGET FOR THE PERIOD 1 MAY 2012 – 30 JUNE 2012 MAY JUNE RECEIPTS Cash sales 18 000  16 500 Cash from debtors  56 955  53 490 Rent income  9 720  9 720 TOTAL RECEIPTS 84 675 79 710 PAYMENTS Payments to creditors (72 000 x 100 /160) 47 500  45 000 Manager’s salary 8 500  9 350 Wages (shop assistants) 12 000  12 600 Telephone 3 000 3 000 Consumable Stores 4 600 4 600 Sundry expenses (8 400 x 105% ; 8 820 x 105%)  8 820  9 261 Purchase of equipment  25 000  6 250 Drawings  4 300  4 300 TOTAL PAYMENTS 113 720 94 361 CASH SURPLUS/(DEFICIT)  (29 045)  (14 651) Bank (Opening balance)  27 555  (1 490) BANK (CLOSING BALANCE)  (1 490)  (16 141) 26 ### Page 8 8 ACCOUNTING (Memo) (NOVEMBER 2012) 3.3 D. King wants to borrow R100 000 from the bank. He intends presenting this budget as a motivation for the loan. State TWO points that you think the bank would consider before making a decision. (Quote figures) Bank overdraft (16 141), increased from 1 490 the previous month. Payments are exceeding receipts over the budget period (deficits registered: 29 045 , 14 651) The sales figures shows a declining trend 82 000 – 66 000 No other efforts to improve receipts such as advertising, sales promotion, etc. Any two valid points  4 3.4 The budgeted telephone expense for April was R3 000. 3.4.1 Provide a suitable reason for the actual expense being R450 more than the budgeted amount. Unexpected sales promotion, calling of customers, informing suppliers, etc. (legitimate) Unauthorised usage of the telephone by employees (misuse) Any valid point  2 3.4.2 Give a reason why the business decided to maintain the telephone expense at R3 000 for the budget period. It was an unexpected event (not planned for). Expect the following months to be back to normal. Will investigate the usage and take corrective measure. Any valid point  2 3.5 The sales assistants are dissatisfied with their wage increase. Give TWO points to support them. Inflationary increase does not improve their standard of living. Manager gets a bigger increase. Any two valid points  4 45 ### Page 9 (NOVEMBER 2012) ACCOUNTING (Memo) 9 QUESTION 4 BANK RECONCILIATION (30 marks ; 18 minutes) 4.1 CALCULATION OF THE BANK ACCOUNT BALANCE BANK ACCOUNT Balance (b/d) 13 150 CPJ Total 532 200 CRJ Total 620 500 Bank charges 1 860  Overcast (creditor)  1 800 Insurance  3 000  Interest income   600 Debtors control  9 420  Donation   500 Repairs/maintenance 12 250  Repairs/maintenance  12 250 Bank Balance 90 070 648 800 648 800 Balance b/d 90 070 16 4.2 BANK RECONCILIATION ON 30 JUNE 2012 DEBIT CREDIT Dr balance as per bank account  90 070 Dr outstanding cheques 1143  21 400 1156  7 500 1167  12 250 Cr deposit not yet recorded  45 600 Cr amount wrongly debited  1 250 Cr balance as per statement  84 370 Method mark for the greater amount (inspect) 131 220 131 220 -1 (Max -2) for poor presentation (no or incorrect details above) 10 4.3 Explain how monthly reconciliation with the bank statement can be useful in detecting and preventing mismanagement of cash and fraud. (TWO POINTS) It is an internal control mechanism. Records outstanding cheques and deposits. Detects bank and journal errors. Notes any discrepancies in the recording of information. Notes transactions with the bank such as charges, debit/stop orders, direct deposits, etc. Any two valid points  4 30 ### Page 10 10 ACCOUNTING (Memo) (NOVEMBER 2012) QUESTION 5 CLUBS AND STOCK SYSTEMS (35 marks ; 21 minutes) 5.1 M9 TENNIS CLUB MEMBERSHIP FEE 2011 2011 Income received in Jan 1 Accrued Income  480 Jan 1 advance  240 2011 2011 Bank  Dec 31 Bank (refund)   60 Dec 31  6 110 (320 + 5 430 + 360) Income received in advance   360 Accrued income  (80 x 3)  240 Income and expenditure Fees written off    5 850 (480 – 320)  160 6 750 6 750 17 5.2 5.2.1 Calculate the cost of refreshments sold. 52 550 x = 42 040  3 5.2.2 Calculate the total amount of refreshments purchased during the year. Opening stock + purchases – closing stock REFRESHMENT STOCK = cost of sales Opening Stock 12 450 Donation 640  Cash 22 680 Closing Stock 10 420 42 040 = (12 450 + 22 680 + credit Credit 17 970 Cost of Sales 42 040 purchases – 640 – 10 420)  Credit purchases = 17 970  Allocate marks to the account if presented 6 5.3 Name another system that the club can use to record stock. Perpetual inventory system  2 5.4 Is the periodic inventory system an appropriate system for the club to use? Motivate your answer. Yes  Refreshments represent small items (low cost) cost will not be assigned to individual items, sales occur mainly during big events, stock may be used for functions or activities of the club. Must do stock count to determine closing stock. (motive of the business is not profit) Any one valid point  3 5.5 The chairperson feels that the stock balances should not be so high. Suggest TWO ways in which stock can be more effectively controlled. Purchase only as required. Devise a procedure for internal control. Division of duties. Regular stock-take. Avoid obsolescence, out-dated goods. Do a survey to determine likes and dislikes of members. Any one valid point  4 35 ### Page 11 (NOVEMBER 2012) ACCOUNTING (Memo) 11 QUESTION 6 ASSET MANAGEMENT (40 marks ; 24 minutes) 6.1 GENERAL LEDGER OF HARRY’S TRADERS EQUIPMENT 2011 1 Balance b/d 92 400 2011 30 Asset Disposal  22 500 Mar  Jun  Balance c/d 69 900  92 400 92 400 2012 1 Balance b/d 69 900 Mar  6 ASSET DISPOSAL 2011 30 Equipment 22 500 2011 30 Accumulated 18 580 Jun  Jun depreciation on  equipment  (18 300 + 280) Donation  3 920 22 500 22 500 8 6.2 TANGIBLE ASSETS VEHICLES EQUIPMENT Cost (1 March 2011) 175 000 92 400 Accumulated Depreciation (1 March 2011) (87 600)  (42 200)  CARRYING VALUE (1 March 2011) 87 400  50 200  Movements:   Additions (at cost)  60 000   Disposal (at carrying value)  (3 920)  Depreciation  (28 500)  (9 480)  CARRYING VALUE (29 February 2012) 118 900  36 800  Cost (29 February 2012) 235 000  69 900  Accumulated Depreciation (116 100)  (33 100)  (29 February 2012) 21 Depreciation: Vehicles (26 250 + 2 250 ) = 28 500 Depreciation: Equipment (280  + 9 200 ) = 9 480 ### Page 12 12 ACCOUNTING (Memo) (NOVEMBER 2012) 6.3 40% of the total equipment is made up of computers and other office devices. The accountant is of the opinion that the depreciation policy regarding equipment must be re-visited. Do you agree with him? Provide TWO reasons. Yes  Computers and electronic equipment – short life span Technology changes rapidly – need for constant updates Becomes out-dated. Must keep up to international standards – interact with clients, etc. Any one valid point  5 40 TOTAL: 300 ## Related documents - [ACCN P1 N12 ANSWERBOOK Afr FINAL](https://www.hlayiso.com/library/accn-p1-n12-answerbook-afr-final/1c74bc88-ab6c-485b-ae61-f78fcf8cbd65) — Accounting · Addendum · 2012 · Afr - [ACCOUNTING P1 GR11 ANSWER BOOK NOV2025 Afrikaans watermark](https://www.hlayiso.com/library/accounting-p1-gr11-answer-book-nov2025-afrikaans-watermark/6daad69c-e558-4d79-9945-bdcc57c797b8) — Accounting · Addendum · 2025 · Afr - [ACCOUNTING P1 GR11 QP NOV2025 Afrikaans watermark](https://www.hlayiso.com/library/accounting-p1-gr11-qp-nov2025-afrikaans-watermark/12583458-757b-44ed-b818-66dccc55c934) — Accounting · QP · 2025 · Afr - [ACCOUNTING P1 GR11 ANSWERBOOK NOVEMBER 2023 Afrikaans Final](https://www.hlayiso.com/library/accounting-p1-gr11-answerbook-november-2023-afrikaans-final/48a9c62d-44fe-4bcf-b849-66228902a934) — Accounting · Addendum · 2023 · Afr - [ACCOUNTING P1 GR11 QP NOV 2023 English watermark](https://www.hlayiso.com/library/accounting-p1-gr11-qp-nov-2023-english-watermark/114f97da-f00d-48e5-b867-cc2fbc9acf2c) — Accounting · QP · 2023 · Eng - [ACCOUNTING P1 GR11 QP NOV 2023 English](https://www.hlayiso.com/library/accounting-p1-gr11-qp-nov-2023-english/4a9ed09a-c470-41c0-8d03-0f4bd2f3f6c6) — Accounting · QP · 2023 · Eng ## More from Grade 11 Accounting - [GR11 Accounting Practice exam November Paper 1](https://www.hlayiso.com/library/gr11-accounting-practice-exam-november-paper-1/a786fffb-f00d-472f-a62b-80f038063c5b) — Guide - [Grade 11 Accounting P2 November 2026 Mock](https://www.hlayiso.com/library/grade-11-accounting-2026-november-mock-exam-question-paper-paper-2/23b01a3d-4c7f-4c08-87ca-2f521d5b13fd) — QP · 2026 · Eng - [ACCOUNTING ANS BOOK GR11 NOV 2025 ENG watermark](https://www.hlayiso.com/library/accounting-ans-book-gr11-nov-2025-eng-watermark/23071d73-1633-476d-9eea-a35d45360d61) — QP · 2025 · Eng - [ACCOUNTING P2 QP GR11 NOV 2025 AFR watermark](https://www.hlayiso.com/library/accounting-p2-qp-gr11-nov-2025-afr-watermark/c1345715-0e44-4f64-9844-4e1a4ca18c22) — QP · 2025 · Afr - [LP Accounting Grade 11 March 2025 QP and Memo](https://www.hlayiso.com/library/lp-accounting-grade-11-march-2025-qp-and-memo/e029a6c5-e494-4ee4-85f6-bf55d1d8442b) — QP + Memo · 2025 - [Gr 11 Accounting P1 (Afrikaans) June 2024 Question Paper](https://www.hlayiso.com/library/gr-11-accounting-p1-afrikaans-june-2024-question-paper/cf529c01-0786-4680-b8b1-b401167df69c) — QP · 2024 · Afr ## Collection - [Grade 11 past papers](https://www.hlayiso.com/grade-11/past-papers) --- Hlayiso: free CAPS and IEB past papers, memos, notes and study guides for South African learners. 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