# Accounting Grade 12 P2 EC June 2021 Question Paper (English) > Grade 12 Accounting Paper 2 question paper from the EC June 2021 (English), 12 pages. Read online or get the free PDF download, memo linked when available. - Page: https://www.hlayiso.com/library/accn-p2-qp-p2-june-2021-english/414e0182-776e-428e-b2af-fcdf444e06b1 - Updated: 2026-09-27 - Subject: Accounting - Grade: Grade 12 - Language: English - Document type: Question paper - Year: 2021 - Exam period: EC June - Paper: 2 - Curriculum: CAPS - Pages: 12 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 12](https://www.hlayiso.com/library/grade-12) › [Accounting](https://www.hlayiso.com/library/grade-12/accounting) › [Accounting Grade 12 P2 EC June 2021 Question Paper (English)](https://www.hlayiso.com/library/accn-p2-qp-p2-june-2021-english/414e0182-776e-428e-b2af-fcdf444e06b1) ## About this document Accounting · Grade 12 · EC June · 2021 · English. Question paper, 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 NATIONAL SENIOR CERTIFICATE GRADE 12 JUNE 2021 ACCOUNTING P2 MANAGERIAL ACCOUNTING, INTERNAL AUDITING AND CONTROL (EXEMPLAR) MARKS: 150 TIME: 2 hours This question paper consists of 12 pages, including 1 formula sheet and a 10-page answer book. ### Page 2 2 ACCOUNTING P2 (EC/JUNE 2021) INSTRUCTIONS AND INFORMATION Read the following instructions carefully and follow them precisely. 1. Answer ALL the questions. 2. A special ANSWER BOOK is provided in which to answer ALL the questions. 3. A FORMULA SHEET for financial indicators is attached to this question p aper. You may use it if necessary. 4. Show ALL workings to earn part-marks. 5. You may use a non-programmable calculator. 6. You may use a dark pencil or blue/black ink to answer the questions. 7. Where applicable, show all calculations to ONE decimal point. 8. Write neatly and legibly. 9. Use the information in the table below as a guide when answering the question paper. Try NOT to deviate from it. QUESTION TOPIC MARKS TIME (Minutes) 1 Reconciliation 32 25 2 Inventory Valuation and 58 45 Fixed Assets 3 Manufacturing and Cost 42 35 Accounting 4 Internal and Financial 18 15 Control; Ethics Copyright reserved Please turn over ### Page 3 (EC/JUNE 2021) ACCOUNTING P2 3 QUESTION 1: RECONCILIATIONS AND INTERNAL CONTROL (32 marks; 25 minutes) 1.1 CONCEPTS Indicate whether the following statements are TRUE or FALSE. Write only ‘true’ or ‘false’ next to the question numbers (1.1.1–1.1.2) in the ANSWER BOOK. 1.1.1 Debtors forms part of current liabilities of a business. 1.1.2 Trade discount is entered as follows: Debit Creditors Control and Credit Discount Received (2) 1.2 CREDITORS’ RECONCILIATION You are provided with information on East Cape Traders. The Creditors’ Control Account and the Creditors’ List were prepared by an inexperienced bookkeeper on 31 May 2020. The Creditors’ Control Account shows a credit balance of R589 010 and the Creditors’ List shows a total of R585 050. As internal auditor, you discovered the errors and omissions given below. REQUIRED: 1.2.1 Record the following errors and omissions in the given table in the ANSWER BOOK and calculate the correct balance and total. (16) INFORMATION: Errors and omissions discovered: A A debit balance of R5 630 of one of the creditors must be transferred to their account in the debtors’ ledger. B Discount received from a creditor, R590, was erroneously posted to the creditors’ ledger as R950. C Interest of R645 on an overdue account, was not entered at all. D An amount of R450 from the Creditors Allowance Journal was posted to the wrong side of the creditors’ account. E Goods worth R83 500 returned to a creditor was incorrectly entered as a credit purchase. F A credit invoice for goods purchased, R34 000 has not been entered at all. Copyright reserved Please turn over ### Page 4 4 ACCOUNTING P2 (EC/JUNE 2021) G Goods purchased on credit from West Wholesalers for R72 000, was credited to the account of East Wholesalers. H The column for creditors in the Creditors’ Allowance Journal was under cast by R4 500. 1.3 DEBTORS’ ANALYSIS REQUIRED: 1.3.1 Give TWO reasons why preparing a Debtors’ age analysis is a useful tool in managing debtors. (4) 1.3.2 Calculate the debtors’ collection period for 2020 and comment on your findings. Keep in mind that the debtors’ collection period for 2019 was calculated at 45 days. Provide figures in your comments. Discuss TWO points of advice which you can offer to the credit manager. (10) INFORMATION: Extract from the financial statements on year end: 29 February 2020 28 February 2019 Total sales 816 240 1 211 000  Cash sales 367 920 525 600  Credit sales 448 320 685 400 Cost of sales 396 940 538 220 Trade debtors (net) 104 190 68 540 32 Copyright reserved Please turn over ### Page 5 (EC/JUNE 2021) ACCOUNTING P2 5 QUESTION 2: INVENTORY; FIXED ASSETS (58 marks; 45 minutes) 2.1 MATCHING CONCEPTS Choose a description in COLUMN B that matches the term in COLUMN A. Write only the letters (A–D) next to the question numbers (2.1.1–2.1.4) in the ANSWER BOOK. COLUMN A COLUMN B 2.1.1 Specific identification A Cost price minus accumulated method depreciation 2.1.2 Weighted average method B Stock valuation method used for similar goods of low value 2.1.3 Carrying value C Stock valuation method used for expensive and diverse goods 2.1.4 FIFO D Stock system whereby the oldest stock is sold first (4 x 1) (4) 2.2 INVENTORY You are provided with information on Champions Traders. They sell rugby jerseys and rugby balls. They use the periodic stock system. REQUIRED: 2.2.1 Calculate the value of closing stock for rugby jerseys. (4) 2.2.2 Calculate the cost of sales for rugby jerseys. (5) 2.2.3 Calculate the mark-up percentage on rugby jerseys. (4) 2.2.4 How many months will it take to sell the rugby jerseys on hand on 31 May 2020? (4) 2.2.5 Calculate the value of closing stock for rugby balls. (8) 2.2.6 Calculate the number of rugby balls missing on 31 May 2020. (5) Copyright reserved Please turn over ### Page 6 6 ACCOUNTING P2 (EC/JUNE 2021) INFORMATION: A The stock valuation system used:  for rugby jerseys is First-In-First-Out (FIFO).  for rugby balls is the weighted average system. B Stock values: Rugby jerseys Rugby balls Number Price Total Number Price Total of units per unit value of units per unit value 01/06/19 1 200 R440 R528 000 300 R150 R45 000 31/05/20 1 000 ? ? 120 ? ? C Purchases during the year: Rugby jerseys Rugby balls Number Price Total value Number Price Total value of units per unit of units per unit 20/09/19 800 R460 R368 000 1 500 R150 R225 000 20/12/19 1 000 R490 R490 000 3 000 R180 R540 000 20/03/20 1 000 R500 R500 000 2 000 R190 R380 000 2 800 R1 358 000 6 500 R1 145 000 D Stock returned: (Faulty stock has to be returned within 5 days of purchase.)  12 rugby jerseys returned on 24 March 2020.  15 rugby balls returned on 23 December 2019. E  Delivery fees for rugby jerseys are included in the price charged by suppliers.  Carriages paid on rugby balls, amounts to R61 140. F Sales during the year:  Rugby jerseys: 3 000 units to the value of R2 271 200.  Rugby balls: 6 660 units to the value of R2 669 040. Copyright reserved Please turn over ### Page 7 (EC/JUNE 2021) ACCOUNTING P2 7 2.3 FIXED ASSETS The information below is taken from Praven Traders on 30 April 2020, end of the financial year. REQUIRED: 2.3.1 Calculate the cost of the additional garage that was built. (1) 2.3.2 Calculate the balance of the Accumulated Depreciation on Equipment account on 30 April 2020. (You don’t need to show the account.) (5) 2.3.3 Complete the Accumulated Depreciation on Vehicles account. The account must be balanced on 30 April 2020. (10) 2.3.4 Complete the Asset Disposal account. (8) INFORMATION: A Balances: 30 April 30 April 2020 2019 Land and Buildings 2 266 000 1 966 000 Vehicles 520 000 720 000 Equipment 1 440 000 1 440 000 Accumulated depreciation on Vehicles ? 192 000 Accumulated depreciation on Equipment ? 1 320 000 B Additional information:  During the year an additional garage was built to accommodate the bigger delivery vehicle that was purchased.  At the beginning of the year Praven Traders only had one vehicle. On 31 January 2020 this vehicle was traded in for R460 000, on a new delivery vehicle from Blitz Motors.  Vehicles are depreciated on the diminishing balance method at 20% p.a.  Equipment are depreciated by 20% per year on cost. 58 Copyright reserved Please turn over ### Page 8 8 ACCOUNTING P2 (EC/JUNE 2021) QUESTION 3: MANUFACTURING AND COST ACCOUNTING (42 marks; 35 minutes) 3.1 CONCEPTS Indicate whether the following statements are TRUE of FALSE. Write only ‘true’ or ‘false’ next to the question numbers (3.1.1–3.1.2) in the ANSWER BOOK. 3.1.1 Fixed costs do not change when the number of units produced changes. 3.1.2 Primary costs consist of direct labour plus indirect labour. (2) 3.2 PRODUCTION COST STATEMENT You are provided with information on Kyle’s Creations, the manufacturers of sports bags. REQUIRED: 3.2.1 Complete the note for Factory overhead costs. (12) 3.2.2 Complete the Production cost statement on 29 February 2020. (16) INFORMATION: A Balances: 28 February 2019 29 February 2020 Raw material 115 800 69 000 Work-in-process 218 400 120 600 Indirect material 8 400 13 200 B Transactions during the year: Raw materials purchased 1 445 400 Raw materials returned 46 200 Carriage on raw materials 57 600 Production wages 1 072 400 Pension contributions 47 520 Salary: Factory foreman (contributions included) 288 000 Advertisements 117 776 Electricity 78 408 Indirect material for factory use purchased 59 400 Factory maintenance 81 000 Rent expense 216 000 Depreciation 97 500 C Additional information:  UIF payments for the year need to be added.  Overtime needs to be taken into account: 6 workers worked a total of 270 hours each at a rate of R40 per hour.  75% of electricity expense is allocated to the factory.  Rent are allocated as 2 : 1 : 1 to the factory, sales and administrative offices.  80% of depreciation is allocated to the factory. Copyright reserved Please turn over ### Page 9 (EC/JUNE 2021) ACCOUNTING P2 9 3.3 COST ACCOUNTING You are provided with information from the records of Nail Art, the producers of nail polish products on 30 April 2020. REQUIRED: 3.3.1 Calculate the break-even point for 2020. (6) 3.3.2 Calculate the units produced during 2020 (All products were sold). (2) 3.3.3 Should Mickey, the owner, be concerned about the level of production for Nail Art? Give TWO reasons, with supporting figures, to motivate your answer. (4) INFORMATION: Information for year ended 30 April 2020: Total cost Unit cost Direct labour 1 981 800 18,00 Direct material 2 422 200 22,00 Selling and distribution cost 770 700 7,00 Factory overhead cost 2 193 510 Administration cost 990 000 30 April 2020 30 April 2019 Selling price per unit 80,00 60,00 Units produced and sold ? 92 000 Break-even point ? 102 000 42 Copyright reserved Please turn over ### Page 10 10 ACCOUNTING P2 (EC/JUNE 2021) QUESTION 4: FINANCIAL AND INTERNAL CONTROL (18 marks; 15 minutes) 4.1 CONCEPTS Choose the correct word from those given in brackets. Write only the chosen word next to the question numbers (4.1.1–4.1.2) in the ANSWER BOOK. 4.1.1 The audit report is compiled by the (internal/external) auditors. 4.1.2 Audit reports are directed to (shareholders/directors) of the company. (2) 4.2 FINANCIAL CONTROL You are provided with information from the records of Knights Sports Ltd. REQUIRED: 4.2.1 What kind of audit report did Knights Sports Ltd receive for the financial year ended 31 May 2020? Give ONE reason for your answer. (2) 4.2.2 Why does the Companies Act in South Africa require public companies to be audited? (2) 4.2.3 The directors feel that the audit fees charged by the external auditors are excessive. Explain how better internal control will have a positive effect on fees charged by the external auditors. (2) INFORMATION: EXTRACT FROM THE AUDIT REPORT OF KNIGHTS SPORTS LTD In our opinion, the financial statements fairly present the financial position of the company in all material aspects on 31 May 2020. The results of operations and cash flow for the year ended are in accordance with International Financial Reporting Standards and in the manner required by the Companies Act in South Africa. LM Williams & Associates Copyright reserved Please turn over ### Page 11 (EC/JUNE 2021) ACCOUNTING P2 11 4.3 INTERNAL CONTROL The internal auditor warned the chief executive officer (CEO) that it might create problems for the company should he insist to add his private vehicle expenses as part of Sundry expenses in the company’s Income statement. REQUIRED: 4.3.1 To which GAAP principle was the internal auditor referring to when he expressed his concern about this matter? (2) 4.3.2 Give TWO consequences for the company should the CEO ignore the internal auditors’ advice. (4) 4.3.3 At the annual general meeting (AGM), the directors suggested that the company should sponsor a childcare facility in the local community, by donating goods and cash to this facility. Give TWO reasons why companies would get involved in these kinds of activities. (4) 18 TOTAL: 150 Copyright reserved Please turn over ### Page 12 (EC/JUNE 2021) ACCOUNTING P2 12 FORMULA SHEET: GRADE 12 ACCOUNTING FINANCIAL INDICATORS Gross profit 100 Gross profit 100 Net profit before tax 100 x x x Sales 1 Cost of sales 1 Sales 1 Net profit after tax 100 Operating expenses 100 Operating profit 100 x x x Sales 1 Sales 1 Sales 1 (Current assets – Inventories) : Current Total assets : Total liabilities Current assets : Current liabilities liabilities Average trading stock 365 (Trade and other receivables + Cash and cash equivalents) : Current liabilities x Cost of sales 1 Average debtors 365 Average debtors 365 Cost of sales x x Credit sales 1 Sales 1 Average trading stock Trading stock 365 Average creditors 365 Average creditors 365 x x x Cost of sales 1 Credit purchases 1 Cost of sales 1 Net income after tax 100 Net income after tax 100 Non-current liabilities : Shareholders’ equity x x Average shareholders’ equity 1 Number of issued shares 1 Net income before tax + Interest on loans 100 Shareholders’ equity 100 x x Average shareholders’ equity + Average non-current liabilities 1 Number of shares issued 1 Dividends for the year 100 Dividends per share 100 Total fixed costs x x Number of issued shares 1 Earnings per share 1 Selling price per unit – Variable costs per unit Copyright reserved ## Related documents - [ACCOUNTING P1 GR12 QP SEPT 2021 English D REV](https://www.hlayiso.com/library/accounting-p1-gr12-qp-sept-2021-english-d-rev/bd359bc3-aaa6-4466-a680-12cf6f56610f) — Accounting · QP · 2021 · Eng - [Accounting QP June 2019 English Final](https://www.hlayiso.com/library/accounting-qp-june-2019-english-final/4cb2cfcc-1cab-4f96-a727-4ecb0622e193) — Accounting · QP · 2019 · Eng - [ACCOUNTING P2 QP GR12 SEPT 2023 English](https://www.hlayiso.com/library/accounting-p2-qp-gr12-sept-2023-english/eb464289-6949-44e1-9c80-4e527d6a3926) — Accounting · QP · 2023 · Eng - [ACCOUNTING P2 GR12 QP SEPT2020 English](https://www.hlayiso.com/library/accounting-p2-gr12-qp-sept2020-english/f03e0db8-e54a-430c-a3c1-424aaa129fde) — Accounting · QP · 2020 · Eng - [Accounting P2 Nov 2020 Afr](https://www.hlayiso.com/library/accounting-p2-nov-2020-afr/11a416d1-5a4d-43f5-8e86-04e631d2a55d) — Accounting · QP · 2021 · Afr - [Accounting P2 QP Nov 2020 Eng D](https://www.hlayiso.com/library/accounting-p2-qp-nov-2020-eng-d/7a7e912d-274c-4600-8f33-8c3e779b6f8e) — Accounting · QP · 2021 · Eng ## More from Grade 12 Accounting - [Accounting](https://www.hlayiso.com/library/accounting/8f42a6a4-9593-4d36-86b1-d890dd1bb1bf) — Guide - [ACCOUNTING P1 GR12 AB JCT ENG D watermark](https://www.hlayiso.com/library/accounting-p1-gr12-ab-jct-eng-d-watermark/77ae8297-53f7-47b3-8e29-57bd38f30483) — Addendum · 2025 · Eng - [Acc P2 Memo ENg watermark](https://www.hlayiso.com/library/acc-p2-memo-eng-watermark/5c899e95-f3c2-4bf6-b539-ed8b1bcec50d) — Memo · 2025 · Eng - [Accounting P1 (English) June 2025 Answer Book](https://www.hlayiso.com/library/accounting-p1-english-june-2025-answer-book/7e96e433-56f8-43a1-9a38-c68c465746dd) — Addendum · 2025 · Eng - [Accounting P2 (English ) June 2025 Answer Book](https://www.hlayiso.com/library/accounting-p2-english-june-2025-answer-book-1/73bffe7c-1c96-49bd-af78-abb8db8c6618) — Addendum · 2025 · Eng - [Accounting P1 (English) June 2025 Possible Answers](https://www.hlayiso.com/library/accounting-p1-english-june-2025-possible-answers/86671777-58f6-4c82-932c-4924bae022c0) — Memo · 2025 · Eng ## Collection - [Grade 12 past papers](https://www.hlayiso.com/grade-12/past-papers) --- Hlayiso: free CAPS and IEB past papers, memos, notes and study guides for South African learners. 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