# Accounting Grade 11 P1 Eastern Cape November 2012 QP (Eng) > Grade 11 Accounting Paper 1 question paper from the Eastern Cape November Exam 2012 (English), 16 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/accn-p1-n12-qp-eng-final/9b7ea69b-0568-4949-a1ea-801621bda36a - Updated: 2026-09-27 - Subject: Accounting - Grade: Grade 11 - Document type: Question paper - Year: 2012 - Exam period: Eastern Cape November Exam - Paper: 1 - Curriculum: CAPS - Pages: 16 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 QP (Eng)](https://www.hlayiso.com/library/accn-p1-n12-qp-eng-final/9b7ea69b-0568-4949-a1ea-801621bda36a) ## About this document Accounting · Grade 11 · Eastern Cape November Exam · 2012. Question paper, 16 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 MARKS: 300 TIME: 3 hours This question paper consists of 16 pages. ### Page 2 2 ACCOUNTING (NOVEMBER 2012) INSTRUCTIONS AND INFORMATION 1. This question paper comprises SIX compulsory questions. 2. Answer ALL the questions in the special answer book provided. 3. Where applicable, workings must be shown in order to achieve part-marks. 4. Non-programmable calculators may be used. 5. You may use a dark pencil or a black/blue pen in order to answer the questions. 6. A breakdown of the questions is provided. You must attempt to comply with the suggested time allocation for each question. ### Page 3 (NOVEMBER 2012) ACCOUNTING 3 Use the information given in the table below as a guide when answering the questions. To exercise good time management, try NOT to deviate from it. QUESTION 1: (105 marks ; 63 minutes) Topic of the question Learning Outcomes covered LO1 AS5 Financial statements of partnerships Partnerships Ratios and interpretation of financial information LO3 AS6 Ethical issues QUESTION 2: (45 marks ; 27 minutes) Topic of the question Learning Outcomes covered LO2 AS2 Posting to specific ledger accounts Manufacturing Concerns Break-even analysis QUESTION 3: (45 marks ; 27 minutes) Topic of the question Learning Outcomes covered LO2 AS3 Prepare and present cash budgets Cash Budgets LO3 AS6 Internal control over cash QUESTION 4: (30 marks ; 18 minutes) Topic of the question Learning Outcomes covered LO1 AS4 Preparing bank reconciliation statements Bank Reconciliation LO3 AS6 Internal control over cash QUESTION 5: (35 marks ; 21 minutes) Topic of the question Learning Outcomes covered LO1 AS2 Clubs: ledger accounts and interpretation Clubs and Stock LO3 AS4 Stock recording systems systems AS6 Internal control over stock QUESTION 6: (40 marks ; 24 minutes) Topic of the question Learning Outcomes covered LO3 AS3 Asset acquisition, asset disposal and Asset Management depreciation ### Page 4 4 ACCOUNTING (NOVEMBER 2012) QUESTION 1 PARTNERSHIPS (105 marks ; 63 minutes) The information presented below is from the records of JJ Stores for the financial year ended 29 February 2012. JJ Stores is a partnership with partners Jakob and Julies. The business deals in footwear sales and offers a repair facility. The business maintains a constant profit mark-up of 60% on cost. INSTRUCTIONS: 1.1 MATCHING ITEMS Choose a statement from COLUMN B that matches the GAAP principle listed in COLUMN A. Write only the letter next to the question number in the space provided in the answer book. COLUMN A COLUMN B 1.1.1 Matching A The market value of the building is R800 000, but it must be recorded at its original cost of R340 000 1.1.2 Going- B “small” expenses of the business are grouped concern together and disclosed as Sundry Expenses 1.1.3 Historical C Money lost due to theft of stock is written off, even cost though it may be recovered in the future 1.1.4 Prudence D Insurance includes R340 which relates to the next financial year 1.1.5 Materiality E Financial statements are prepared on the assumption that the business will continue operating in the future (10) 1.2 Taking into account the adjustments, complete the Income Statement for the year ended 29 February 2012. (40) 1.3 Prepare the following notes to the Balance Sheet: 1.3.1 Trade and Other Receivables (8) 1.3.2 Partners’ Current Account Note (21) 1.4 Comment on the LIQUIDITY position of this business. Quote TWO relevant ratios to support your comment. (8) 1.5 Calculate the total earnings of partner Jakob. (Show workings). (4) 1.6 Calculate the return on investment of partner Julies. Should he be satisfied with this return? Elaborate. (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. (6) ### Page 5 (NOVEMBER 2012) ACCOUNTING 5 INFORMATION a. Extracted from the Pre-Adjustment Trial Balance on 29 February 2012 DEBITS CREDITS Capital: Jakob 330 000 Capital: Julies 220 000 Current Account: Jakob (1 March 2011) 9 850 Current Account: Julies (1 March 2011) 12 750 Drawings: Jakob 83 610 Drawings: Julies 24 140 Equipment 77 540 Accumulated Depreciation on equipment 32 820 Trading Inventory 88 770 Debtors Control 27 777 Provision for Bad Debts 1 420 Creditors Control 64 600 Loan: AB Bank 84 375 Fixed Deposit (14% p.a.) 50 000 Cash and Cash Equivalents 4 695 Sales 540 270 Cost of Sales 204 180 Debtors Allowances 18 020 Rent Income 46 520 Fee Income (on footwear repairs) 17 630 Consumable Stores 15 430 Salaries and Wages 42 600 Insurance 8 725 Stationery 9 288 Water and Electricity 12 545 Bad Debts 2 323 Interest on investment 5 250 Discount received 2 180 Sundry Expenses ? ### Page 6 6 ACCOUNTING (NOVEMBER 2012) ADDITIONAL INFORMATION: a) A physical stock taking on 29 February 2012 revealed the following inventories on hand: Trading Inventory R87 650 Consumable Stores R1 430 b) Make provision for interest on investment. This investment has been in existence for the entire year. c) A debtor who owed R1 580 was declared insolvent. His estate paid 35% of his debt, and this has been correctly recorded. The remaining balance must be written off as a bad debt. d) The provision for bad debts must be adjusted to 4% of debtors. e) The rent increased by R320 on 1 December 2011. The tenant has paid the rent until the end of March 2012. f) Insurance includes R675 which relates to the period 1 January 2012 to 31 March 2012. g) The total interest on loan was transferred to the Loan Account (capitalised) on 27 February 2012. Interest is charged at 12,5% p.a. h) Depreciation on equipment of R15 472 must be taken into account. i) The partnership agreement made provision for the following: 1. Partners’ salary allowance:  Jakob and Julies are entitled to an annual salary allowance of R90 000 and R86 600 respectively. 2. Interest on capital is calculated at 8% p.a. on capital balances. Take into account that Julies increased his capital by R30 000 on 1 June 2011. 3. Partners share profits and losses in proportion to their capital balances at the end of the financial year. j) List of financial indicators calculated: 29/02/2012 28/02/2011 1 Current ratio 1,9 : 1 1,6 : 1 2 Acid test ratio 0,5 : 1 0,9 :1 3 Average debtors collection period 39 days 42 days 4 Debt-equity ratio 0,14 : 1 0,3 : 1 5 Return on investment Jakob: 38% Julies: 45% 6 Current interest rate offered by banks 10% 105 ### Page 7 (NOVEMBER 2012) ACCOUNTING 7 QUESTION 2 MANUFACTURING CONCERNS (45 marks ; 27 minutes) Gauteng Manufacturers produces printer cartridges for Bex printers and sells them at a profit mark-up of 50% on cost. The information below is from their financial records for the financial year ended 30 June 2012. INSTRUCTIONS: 2.1 Indicate the cost category of each of the item listed below. Choose your answer from the list provided. Write the answer only, next to the question number in the answer book. Direct material cost; Selling and Distribution cost; Direct labour cost; Administration cost; Factory overhead cost 2.1.1 Advertising expense 2.1.2 Wages paid to workers in the production process 2.1.3 Salary of the factory foreman 2.1.4 Stationery and telephone expenses (4) REFER TO INFORMATION A 2.2 Calculate the total FACTORY OVERHEAD COSTS. (15) 2.3 Calculate the selling price per cartridge. Hint: Calculate the number of units sold first. (4) 2.4 Post to the following accounts in the General Ledger. 2.4.1 Work in Process Stock Account (7) 2.4.2 Finished Goods Stock Account (6) REFER TO INFORMATION B 2.5 Calculate the number of units Vusi had to produce in order to break even. (5) 2.6 Explain the usefulness of the break-even analysis, and comment on the level of production achieved by Vusi. (4) ### Page 8 8 ACCOUNTING (NOVEMBER 2012) INFORMATION A: Gauteng Manufacturers produces printer cartridges for Bex printers and sells them at a profit mark-up of 50% on cost. The information below is from their financial records for the financial year ended 30 June 2012. a) Stock balances 30 JUNE 2012 1 JULY 2011 Raw Material Stock 34 560 27 660 Factory Indirect material 2 530 3 550 Work in Process Stock 37 300 32 450 Finished Goods Stock 33 000 14 250 440 units 190 units b) Summary of transactions for the year ended 30 June 2012 Material used in the factory:  Raw material purchased ?  Raw materials issued for production 490 000  Indirect materials purchased 21 760 Factory salaries and wages:  Direct labour 647 500  Indirect labour 24 350  Factory manager’s salary 64 860 Other expenses:  Rent expense 38 400  Insurance 8 880  Water and Electricity 16 600  Bad debts 3 210  Sundry factory expenses 25 620 Sales 1 940 625 Number of units produced 17 500 c) Additional Information:  60% of the rent expense must be allocated to the factory.  of the insurance expense relates to the factory.  Water and electricity must be divided between the factory and the office in the ratio 4 : 1 respectively. ### Page 9 (NOVEMBER 2012) ACCOUNTING 9 INFORMATION B: Vusi makes fancy cellphone pouches which are popular with high school learners. He operates from his father’s garage. The information below relates to the first 3 months of his business. a) TOTAL PER UNIT Fixed Costs  Factory overheads 6 860  Administration costs 690 Variable Costs  Direct material costs 9 800 10  Direct labour costs 5 880 6  Selling and distribution costs 2 940 3 b) Number of units produced: 980 (all the units produced were sold) Sales for the period above: R27 440 45 ### Page 10 10 ACCOUNTING (NOVEMBER 2012) QUESTION 3 CASH BUDGETS (45 marks ; 27 minutes) You are provided with information from King Dealers, a business owned by D. King. The business buys and sells camping goods using a profit mark-up of 60% on cost. INSTRUCTIONS: 3.1 Complete the partially completed Debtors Collection schedule. (7) 3.2 Prepare the Cash Budget for the budget period 1 May 2012 to 30 June 2012. (26) 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) (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. (2) 3.4.2 Give a reason why the business decided to maintain the telephone expense at R3 000 for the budget period. (2) 3.5 The sales assistants are dissatisfied with their wage increase. Give TWO points to support them. (4) ### Page 11 (NOVEMBER 2012) ACCOUNTING 11 INFORMATION: a) Some actual and budgeted amounts: ACTUAL BUDGETED MARCH APRIL MAY JUNE Sales (cash and credit) 82 000 76 000 72 000 66 000 Purchases of stock 51 250 47 500 ? ? Rent Income 9 000 9 000 ? ? Manager’s Salary 8 500 8 500 ? ? Wages (Sales assistants) 12 000 12 000 ? ? Telephone 3 000 3 450 3 000 3 000 Consumable Stores 4 500 4 500 4 600 4 600 Discount Received 1 000 1 200 1 200 1 300 Sundry expenses 8 000 ? ? ? b) 25% of total sales are for cash. Experience has shown that debtors settle their accounts as follows: 60% Settle in the month following the transaction month 37% Settle in the 2nd month after the transaction month 3% Is usually irrecoverable c) Inventories are kept constant by replacing the amount of goods sold. (A base stock is maintained.) Note that the mark-up percentage on cost is 60%. All purchases are on credit and creditors are paid 30 days after purchases. (i.e. in the next month) d) Salaries and wages are reviewed at the end of May each year. It was decided that the manager’s salary will increase by 10% effective from 1 June 2012. The sales assistants will receive a 5% increase, which was equal to the inflation rate at the time. e) Sundry expenses are expected to increase by 5% on the previous month’s total. f) New equipment to the value of R75 000 (including finance charges) will be purchased during May 2012. R25 000 will be paid in May, and the balance will be paid in eight equal instalments. g) Rent income will be increased by 8% on 1 May 2012. h) The owner’s total drawings per month amounts to R5 500. R1 200 of this is usually consumable goods from stock. i) On 30 April 2012 the bank account showed a favourable balance of R27 555. 45 ### Page 12 12 ACCOUNTING (NOVEMBER 2012) QUESTION 4 BANK RECONCILIATION (30 marks ; 18 minutes) KJ Traders is a small business that deals in selling computer equipment. They also provide a repair and maintenance service to regular clients. The following information was extracted from their records. The bank statement was received from Beta Bank on 29 June 2012. INSTRUCTIONS: 4.1 Adjust the Bank account in the General Ledger, by recording the information directly in the Bank Account, as laid out in the answer book. Insert appropriate details on each side of the bank account for part-marks. (16) 4.2 Prepare the Bank Reconciliation Statement on 30 June 2012. (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) (4) ### Page 13 (NOVEMBER 2012) ACCOUNTING 13 INFORMATION: a) On 30 June 2012, the bank columns in the cash journals show the following provisional totals:  Cash Receipts Journal R620 500  Cash Payments Journal R532 200 b) The following items appeared on the bank reconciliation statement on 31 May 2012. Favourable balance as per bank statement 11 500 Cheque 1123 not presented for payment 12 250 Cheque 1136 4 200 Cheque 983 dated 22 December 2010 500 Outstanding deposits 18 600 c) Information that appeared in the cash journals but not on the bank statement for June 2012:  Cheque 1143 for R21 400 – post-dated for 15 September 2012.  Cheque 1156 for R7 500 – dated 29 June 2012.  A deposit of R45 600 on 30 June 2012. d) Information that appeared on the bank statement received, but not in either of the cash journals for June 2012:  Total bank charges for the period of the statement, R1 860.  A deposit of R18 600 was recorded on 1 June 2012.  Cheque 1136 was recorded on the statement as R2 400 (the correct amount). This cheque was in favour of a creditor.  A stop-order went through in favour of Cat Insurers for R3 000 for a short-term insurance on the store.  Interest of R600 was received for the period of the bank statement.  An R/D cheque for R9 420. An investigation revealed that this cheque was received from a debtor, M. Broke as a final payment of his account of R9 500.  A cheque payment for R1 250. It was established that this was not a transaction of this business but it was an error made by the bank. e) Cheque 983 was issued to Sunflower Children’s Home, as a donation. This organisation has subsequently closed down. f) Cheque 1123 was reported lost. This was in favour of BLK Services for renovations to the existing building. A new cheque 1167 was issued. This transaction was not recorded. g) The bank statement reflected a favourable balance on 30 June 2012. 30 ### Page 14 14 ACCOUNTING (NOVEMBER 2012) QUESTION 5 CLUBS AND STOCK SYSTEMS (35 marks ; 21 minutes) The information below was taken from the records of M9 Tennis Club for the financial year ended 31 December 2011: INSTRUCTIONS: 5.1 Prepare the Membership Fee account in the General Ledger. (17) 5.2 The club has a kiosk and dining area. Refreshments are sold to members at a profit mark-up of 25% on cost. The club uses the periodic inventory system to record refreshment stock. 5.2.1 Calculate the cost of refreshments sold. (3) 5.2.2 Calculate the total amount of refreshments purchased during the year. (6) 5.3 Name another system that the club can use to record stock. (2) 5.4 Is the periodic inventory system an appropriate system for the club to use? Motivate your answer. (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. (4) ### Page 15 (NOVEMBER 2012) ACCOUNTING 15 INFORMATION: a) Balances on 1 January 2011: (amongst others) Refreshment Stock 12 450 Accrued Income (Membership Fees) 480 Income Received in advance (Membership Fees) 240 b) Extract from the Analysis Cash Book for the year ended 31 December 2011: RECEIPTS PAYMENTS Membership fees 2010 320 Refreshment purchased 22 680 2011 5 430 Membership fees (refunded) 60 2012 360 Entrance fees 1 320 Refreshment sales 52 550 c) Entrance Fees:  New members pay R120 entrance fees once their application is accepted. d) Membership Information:  Membership fee is R80 per member per year.  New members joining before June each year, pay R50.  Old members, who pay before March, get a R20 discount.  On 1 January 2011, the club had 67 members.  5 of the new members joined before 30 June 2011. All the new members paid their memberships in full.  The outstanding 2010 fees must be written off, and the defaulting members taken off the club records.  A member, who paid his 2011 fees in 2010, was transferred to KZN. The club decided to give him a refund.  Three members did not pay their 2011 membership fees. e) Refreshment information:  Refreshments are purchased for cash and on credit, but sold for cash only.  Refreshment to the value of R640 was donated to a local school.  Stock of refreshments on 31 December 2011 amounted to R10 420. 35 ### Page 16 16 ACCOUNTING (NOVEMBER 2012) QUESTION 6 ASSET MANAGEMENT (40 marks ; 24 minutes) The following information appeared in the books of Harry’s Traders for the financial year ended 29 February 2012. INSTRUCTIONS: 6.1 Post to the following accounts in the General Ledger: 6.1.1 Equipment (cost) (6) 6.1.2 Asset Disposal (8) 6.2 Complete the Tangible Asset Note to the Balance Sheet. Show workings for depreciation calculations to score part marks. (21) 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? Provide TWO reasons. (5) INFORMATION: a) Tangible Assets balances 29 FEBRUARY 2012 1 MARCH 2011 Vehicles 235 000 175 000 Equipment 69 900 92 400 Accumulated Depreciation on ? 87 600 Vehicles Accumulated Depreciation on ? 42 200 Equipment b) On 1 December 2011, a new vehicle was purchased from BGT Motors on credit. No vehicles were sold. c) On 30 June 2011, old equipment was donated to an old age home. The accumulated depreciation on the furniture donated, was R18 300 on 1 March 2011. The new equipment to replace the old ones will only be purchased in the next financial year. d) Depreciation must be provided for as follows:  Vehicles at 15% on cost.  Equipment at 20% on the diminishing balance method. 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 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 - [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 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 MEMO NOVEMBER 2023 English watermark](https://www.hlayiso.com/library/accounting-p1-gr11-memo-november-2023-english-watermark-1/49899c38-504c-42fb-972e-2181fa910731) — Accounting · Memo · 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 - [ACCOUNTING P2 MEMO GR11 NOV 2025 ENG watermark](https://www.hlayiso.com/library/accounting-p2-memo-gr11-nov-2025-eng-watermark/7aa479bf-34d0-4240-934b-67a2f33e2597) — Memo · 2025 · Eng - [ACCOUNTING P2 MEMO GR11 NOV 2025 AFR watermark](https://www.hlayiso.com/library/accounting-p2-memo-gr11-nov-2025-afr-watermark/a92dc10a-0d2e-42d6-9cd3-ff78b0e78afe) — Memo · 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 - [ACCOUNTING P2 MEMO GR11 NOV 2024 ENG watermark](https://www.hlayiso.com/library/accounting-p2-memo-gr11-nov-2024-eng-watermark/c09eb350-5d2d-4070-8df4-25ece70dc7de) — Memo · 2024 · Eng - [Gr 11 Accounting P2 (English) June 2024 Question Paper](https://www.hlayiso.com/library/gr-11-accounting-p2-english-june-2024-question-paper/b649cfc1-b72f-4e45-b621-502673440d1c) — QP · 2024 · Eng ## 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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