# Accounting Grade 12 Eastern Cape Mock 2021 QP (isiXhosa) > Grade 12 Accounting question paper from the Eastern Cape Mock Exam 2021 (isiXhosa), 24 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/accounting-gr12-qp-sept-2021-isixhosa-eng-d/cd72a896-cbc8-400f-af12-94319a29458d - Updated: 2026-09-27 - Subject: Accounting - Grade: Grade 12 - Language: Isixhosa - Document type: Question paper - Year: 2021 - Exam period: Eastern Cape Mock Exam - Curriculum: CAPS - Pages: 24 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 Eastern Cape Mock 2021 QP (isiXhosa)](https://www.hlayiso.com/library/accounting-gr12-qp-sept-2021-isixhosa-eng-d/cd72a896-cbc8-400f-af12-94319a29458d) ## About this document Accounting · Grade 12 · Eastern Cape Mock Exam · 2021 · isixhosa. Question paper, 24 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 Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE IBANGA 12 SEPTEMBA 2021 ACCOUNTING P1 AMANQAKU: 150 IXESHA: 2 iiyure *acXHo1* Eli phepha loviwo lunamaphepha ali-10, kuquka iformula sheet Nencwadi yokuphendulela enamaphepha ali-9. ### Page 2 Downloaded from hlayiso.com 2 ACCOUNTING P1 (EC/SEPTEMBA 2021) IMIYALELO NENGCACISO Funda le miyalelo ilandelayo ngocoselelo wenze njengoko ikuyalela. 1. Phendula YONKE imibuzo. 2. INCWADI EKHETHEKILEYO YOKUPHENDULELA omawuphendule kuyo YONKE imibuzo uyinikiwe. 3. Bonisa WONKE umsebenzi ukuze ukwazi ukufumana namanqakwana. 4. Ungayisebenzisa icalculator engaprogranywanga. 5. Ungabhala ngepensile emnyama okanye usiba olumnyama/olublowu. 6. Apho kuyimfuneko, bonisa ZONKE izibalo zibe kwidesimal point ENYE. 7. Ukuba ukhetha ukwenjenjalo, ungasebenzisa iFinancial Indicator Formula Sheet edityaniswe ekupheleni kweliphepha lemibuzo. Ukusebenzisa leformula sheet AKUSOSINYANZELO. 8. Bhala ngokucocekileyo nangokucacileyo. 9. Sebenzisa olu lwazi lufumaneka kule theyibhile ingezantsi njengesikhokelo xa uphendula olu viwo. Zama ukuba UNGANXAXHI kuyo. IXESHA UMBUZO ISIHLOKO AMANQAKU (imizuzu) Audit Report and corporate 1 15 10 governance 2 Company financial statements 60 50 Cash Flow Statement and financial 3 40 30 indicators 4 Interpretation of financial information 35 30 EWONKE 150 120 Ilungelo loshicilelo likhuselwe Tyhila ### Page 3 Downloaded from hlayiso.com (EC/SEPTEMBA 2021) ACCOUNTING P1 3 UMBUZO 1: AUDIT REPORT AND CORPORATE GOVERNANCE (15 amanqaku; 10 imizuzu) 1.1 Khetha igama kuludwe olunikwe ngezantsi, elihambelana nengcaciso, ubhale kuphela impendulo yakho ecaleni kwenombolo yombuzo (1.1.1–1.1.3) kwiINCWADI YEEMPENDULO. Non-executive directors; Remuneration committee; Executive directors; Audit committee; Internal auditor 1.1.1 Baqwalasela imiba yeemali zokuhlawula abalawuli (directors) 1.1.2 Bayinxalenye yeBhodi yabalawuli (Board of Directors) kodwa abaqeshwanga kule nkampani 1.1.3 Abatyunjwe ngabanini zabelo ukuba benze imisebenzi ephambili yolawulo kwishishini (3 x 1) (3) 1.2 INGXELO YOPHICOTHO-ZINCWADI (AUDIT REPORT) Kunikwe isicatshulwa seNgxelo yabaPhicothi abaZimeleyo. OKULINDELEKILEYO: 1.2.1 Chonga uhlobo lwengxelo kwaye uchaze ukuba kutheni le nto ingxelo ikhutshwe ngumphicothi zincwadi. (2) 1.2.2 Chaza amanqaku amaBINI ukuba kutheni abanini zabelo beya kuxhalaba malunga nenkampani efumana ingxelo enjalo. (4) 1.2.3 Umphathi omkhulu (CEO) ucele ukuba umphicothi zincwadi awucwangcise lo mnikelo ‘njengeendleko ezininzi’ kwaye ahlengahlengise uluvo lophicotho-zincwadi ngokufanelekileyo. Nika izizathu EZIMBINI zokuba kutheni umphicothi zincwadi engavumelani neli cebiso. (4) 1.2.4 Ngaphandle kwale micimbi ikhankanywe apha ngasentla, cacisa ukuba kutheni le nkampani iza kutyholwa ngolawulo olungeluhle lweshishini. (2) ULWAZI: INXUBA LTD ISICATSHULWA KWINGXELO YABAPHICOTHI-ZINCWADI ABAZIMELEYO Basis for opinion Isipho seR1,2 sinikwe kumbutho wasekuhlaleni wokubonelela ngeezicheme (face masks) kunye ne-hand-sanitisers, kwizikolo zengingqi. Inkqubo eyiyo ayilandelwanga kwaye akukho maxwebhu afumanekayo okuqinisekisa ukuthengiselana. Audit Opinion Ngokoluvo lwethu, ngaphandle kwesipho esinikezelwe kungakhange kulandelwe inkqubo efanelekileyo, iingxelo zemali zibonisa imeko yezemali yenkampani nge- 28 kaFebruwari 2021. 15 Ilungelo loshicilelo likhuselwe Tyhila ### Page 4 Downloaded from hlayiso.com 4 ACCOUNTING P1 (EC/SEPTEMBA 2021) UMBUZO 2: COMPANY FINANCIAL STATEMENTS (60 amanqaku; 50 imizuzu) Olu lwazi lunxulumene no ZOZIE (PTY) LTD, abathengisi beencwadi, kunyaka ophele nge 28 February 2021. OKULINDELEKILEYO: Lungiselela oku kulandelayo konyaka-mali ophele nge 28 February 2021: 2.1 Ingxelo (statement) sengeniso epheleleyo (Comprehensive Income) (36) 2.2 Retained income note (7) 2.3 Icandelo le-EQUITY kunye NAMATYALA le Statement of Financial Position (17) ULWAZI: A. Isicatshulwa: Pre-Adjustment Trial Balance on 28 February 2021: R Ordinary share capital ? Ingeniso egciniweyo 204 040 Imboleko-mali: Luther Bank 955 000 Creditors control 368 470 Net trade debtors 463 000 Bank (favourable balance) 132 600 SARS: irhafu kwingeniso (Income tax) 295 500 Istokhwe sokurhweba 882 000 Intengiso 5 808 000 Iindleko zentengiso ? Depreciation 86 010 Insurance 37 200 Isaphulelo esifunyenweyo 14 000 Rent income 139 500 Directors fees 450 400 Imivuzo 492 600 Audit fees 85 700 Interest income 23 400 Sundry expenses ? Ordinary share dividends (interim dividends) 126 000 B. ADJUSTMENTS AND ADDITIONAL INFORMATION (i) Impahla ebuyiswe ngumthengi-ngetyala, eyiR28 800, ebingekabhaliswa. Impahla iye yabuyiselwa kwistokhwe, kodwa akukho entries zenziweyo ukubhalisa letransaction. Iprofit mark-up 60% on cost ifakelwa kuyo yonke into ethengisiweyo. (ii) Insurance iquka i-annual premium eyiR14 400, ehlawulelwe ixesha elisuka nge 1 April 2020 ukuya kwi 31 March 2021. (iii) Umqeshi uhlawule irente ukuya kuthi ga kwi-30 April 2021. Qaphela ukuba irente inyuswe nge-15% ngonyaka. Ukususela nge-1 July 2020. Izakhiwo zahlala abantu ukusukela ngo-2018. Ilungelo loshicilelo likhuselwe Tyhila ### Page 5 Downloaded from hlayiso.com (EC/SEPTEMBA 2021) ACCOUNTING P1 5 (iv) Umgcini zincwadi ushiyelele istokhwe se-calculators xa ebecwangcisa itrading stock figure eboniswe kwipre-adjustment trial balance. Isishwankathelo esisuka kwirecords zestokhwe se calculators, simi ngolu hlobo: Isitokhwe sokuvula 600 eeyunithi Okuthengiweyo enyakeni 2 200 eeyunithi Ezibuyisiweyo 180 eeyunithi Iiyunithi ezithengisiweyo 2 160 eeyunithi Isitokhwe sokuvala 430 eeyunithi x Inani lokuthengisa elifanelekileyo lirekhodiwe x Calculators zithengwe ngesixa-mali sexabiso eliqingqiweyo eli-R175 inye. Indlela ethile yokuchonga isetyenziselwa ukuxabisa izixhobo zokubala. Kuqapheleke ukuba icalculators zibiwe. Kusafuneka oku kurekhodwe. (v) Inkampani iqeshe abalawuli abathathu kulwakhiwo lwemali olufanayo. Omnye waba balawuli akazange ayifumane intlawulo yakhe ngo February 2021. Umlawuli wesine, oqeshwe nge-1 December 2020, ufumana ama-R3 200 ngenyanga ngaphezulu kunabanye abalawuli. Ufumene imirhumo yakhe kulo nyaka umiyo. (vi) Umvuzo kamabhalana osekhefini (leave) ayifakwanga kwi-Salaries Journal. Iinkcukacha zomvuzo wakhe zimi ngolu hlobo: Net salary Total employee deductions Total employer contributions R9 424 24% of gross salary R1 240 ⃰ Igalelo lomqeshi lifakwa kwimirholo. (vii) Uvavanyo oluhlengahlengisiweyo lufunyenwe luvela kubaphicothi zincwadi bangaphandle bechaza ukuba umrhumo wophicotho-zincwadi zonyaka ufikelela kwi-R80 500. (viii) Istatement semali-mboleko esisuka kwi Luther Bank siveze oku kulandelayo: x Intlawulo iyonke yonyaka (including interest) R258 000 x Interest capitalised ? x Balans nge 28 February 2021 R1 082 400 10% ye balans kwimali-mboleko izakuhlawulwa kunyaka-mali ozayo. (ix) Emva kokuqaphela i-adjustments, the net profit after tax amounted to R689 310. The current income tax rate is 31%. C. Share capital and dividends (izahlulo): Incwadi yokubhala izabelo ibonise ama 745 000 ezabelo ezinikezelweyo nge 28 February 2021. Utshintsho ekwabelaneni ngemali nakwimali egciniweyo yarekhodwa: x 1 October 2020: 120 000 yezabelo zinikezelwe zibiza i R8,00 inye. x 1 December 2020: 75 000 yezabelo ziphinde zathengwa zibiza R1,40 ngaphezulu kwexabiso eliqhelekileyo lezabelo. Ezi zabelo azilungelanga ifinal dividends. x Idividends zethutyana zihlawulwe nge 31 August 2021. x Idividend yokugqibela yeesenti ezingama-23 isabelo ngasinye ichaziwe ngomhla we 28 February 2021. D. Financial indicators calculated on 28 February 2021: x Net asset value per share (NAV) 860 cents x Current ratio 1,8 : 1 60 Ilungelo loshicilelo likhuselwe Tyhila ### Page 6 Downloaded from hlayiso.com 6 ACCOUNTING P1 (EC/SEPTEMBA 2021) UMBUZO 3: CASH FLOW STATEMENT AND FINANCIAL INDICATORS (40 amanqaku; 30 imizuzu) Olu lwazi lubhekisele ku KAMP LTD ilelonyaka-mali ophela nge 31 August 2021. OKULINDELEKILEYO: 3.1 Bala oku kulandelayo kwe Cash Flow Statement ngomhla we 31 August 2021: 3.1.1 Utshintsho kwizinto ezihlawulwayo (bonisa ukuba yi inflow okanye outflow yemali) (4) 3.1.2 Irhafu (Income tax) ehlawulweyo (4) 3.1.3 Dividends paid (4) 3.1.4 Imali evela kwizabelo ezinikezelweyo (5) 3.1.5 Imali esetyenziselwe ukuphinda kuthengwe izabelo (3) 3.1.6 Ukratya (Increase) kwimali-mboleko (4) 3.2 Gcwalisa icandelo le-NET CHANGE IN CASH AND CASH EQUIVALENTS ye Cash Flow Statement (4) 3.3 Bala ezi zalathi zimali zilandelayo kunyaka ophelileyo 31 Agasti 2021. 3.3.1 Acid test ratio. (3) 3.3.2 % Return on shareholders’ equity. (5) 3.3.3 Dividend pay-out rate (%) (4) Ilungelo loshicilelo likhuselwe Tyhila ### Page 7 Downloaded from hlayiso.com (EC/SEPTEMBA 2021) ACCOUNTING P1 7 ULWAZI: A. Isicatshulwa esivela kwiNgxelo yoNgeniso ePheleleyo (iNgxelo yeNgeniso) yonyaka ophele nge-31 Agasti 2021. Inzala kwimali-mboleko (ivela kwa De Beer Lenders) R 99 360 Net profit before tax 1 340 000 Income tax 428 800 B. Isicatshulwa esivela kwiBalance Sheet nge 31 August 2021. 31 Aug 2021 31 Aug 2020 R R Inventories 350 000 380 200 Urhwebo nezinye izinto ezifunyanwayo (Note 1) 278 000 509 800 Imali eziinkozo kunye ne-cash equivalents 168 000 10 000 Shareholders’ equity 7 293 200 5 650 000 Ordinary share capital 6 840 000 5 440 000 Imali-mboleko: De Beer Lenders ? 600 000 Urhwebo nezinye izinto ezihlawulwayo (Note 2) 670 100 459 600 Bank overdraft - 109 800 C. Note 1: Urhwebo nezinye izinto ezifunyanwayo 31 Aug 2021 31 Aug 2020 R R Trade Debtors 278 000 480 500 SARS (Income tax) 29 300 278 000 509 800 D. Note 2: Urhwebo nezinye izinto ezihlawulwayo 31 Aug 2021 31 Aug 2020 R R Trade Creditors 390 800 215 600 SARS (Income tax) 33 100 Shareholders for dividends ? 208 000 Accrued expenses 6 200 670 100 459 600 E. Share Capital 1 September 2020 1 600 000 izabelo ezikhutshiweyo. 1 May 2021 400 000 izabelo ezongezelelweyo zakhutshwa. 31 August 2021 100 000 izabelo eziphinde zathengwa zibiza R1,40 ngaphezulu kwexabiso lezabelo eliqhelekileyo. They qualified for final dividends. Dividends and earnings: x Izabelo zethutyana zihlawulwe nge 28 February 2021 kuzo zonke izabelo ezikuluhlu (share register). x Isabelo sokugqibela seesenti ezili-12 isabelo ngasinye zaziswe nge 31 August 2021. Total dividends for the year amounted to R528 000. x The earnings per share (EPS) was calculated at 53 cents per share. G. Imali-mboleko: De Beers Lenders Imali-mboleko yonyusiwe ngomhla woku-1 September 2020 (ukuqala konyaka-mali). Inzala ye 12% ngonyaka ihlawulwe kwangethuba, kwaye ayikho-capitalised. 40 Ilungelo loshicilelo likhuselwe Tyhila ### Page 8 Downloaded from hlayiso.com 8 ACCOUNTING P1 (EC/SEPTEMBA 2021) UMBUZO 4: INTERPRETATION OF FINANCIAL INFORMATION (35 amanqaku; 30 imizuzu) 4.1 Khetha i(ama)gama achanekileyo kulawo anikwe kwizibiyeli. Bhala kuphela i(ama)gama ecaleni kwenombolo yombuzo (4.1.1 ukuya ku 4.1.3) KWINCWADI YOKUPHENDULELA. 4.1.1 Apho ishishini litshonayo, abanini-zabelo bayakulahlekelwa yi- investment in shares. Oku kungenxa ye-(limited / unlimited) liability concept. 4.1.2 The (historical cost / materiality / business entity) GAAP principle umisela ukuba izinto ezibalulekileyo ezinjengexabiso lenzala kufuneka zichazwe zodwa kwiingxelo zemali. 4.1.3 The (net asset value per share / market price) is influenced by the demand for shares on the stock exchange. (3 x 1) (3) 4.2 GREEN LTD, BCM LTD and PLAZA LTD Olu lwazi lubhekisele kwiinkampani ezintathu ezahlukeneyo, ezisebenza in the same industry. Unyaka-mali nkampani nganye uphela ngomhla wokugqibela ka February. OKULINDELEKILEYO: QAPHELA: Nika amanani, izikhombisi zemali okanye ukubalwa kwimeko. NGANYE ukuxhasa izimvo zakho kunye neenkcazo. 4.2.1 Liquidity Chonga inkamapani eyeyona ine-efficient liquidity position. Caphula uchaze zibe NTATHU i financial indicators ukuxhasa oko ukukhethileyo. (6) 4.2.2 Risk and gearing: Umlawuli wase-Green Ltd ucinga ukuba inkampani imele ukuhlawula imali- mboleko ngokukhawuleza. Chaza ukuba ungathini kuye. Caphula ifinancial indicators ZIBEMBINI (kunye namanani) ukuxhasa uluvo lwakho. (6) 4.2.3 Dividend pay-out policy: Comment on the dividend pay-out rates of Green Ltd and Plaza Ltd, and provide a reason for the directors of each company deciding on those pay- out rates. Quote figures. (6) 4.2.4 Shareholding of Sandi Charley: USandi Charley ngumnini-zabelo kwinkampani ezimbini kwezi. Unamali engange-R800 000 afuna ukuyityala kwizabelo ezitsha. Zontathu ezinkampanii zigqibe ekongezeni izabelo nge-1 March 2021, zisebenzisa imarket price emiyo yange-28 February 2021. x Bala ipesenti(%) yezabelo zikaSandi kwa Green Ltd ze uphawule (comment) kwiziphumo ozifumeneyo. (4) USandi ufuna ukuthenga ezinye izabelo kwa Green Ltd kwaye ufuna nokutyala imali kwa-Plaza Ltd. x Bala elona nani lincinci lezabelo ekufuneka elithengile kwaGreen Ltd kunye nemali anokuyisebenzisa. (6) x Ungamcebisa njani u Sandi malunga nembono yakhe yokuthenga izabelo kwaPlaza Ltd? Nika iingongoma zibe MBINI. Caphula amanani (izikhombisi zemali) ukuxhasa iingcebiso zakho. (4) Ilungelo loshicilelo likhuselwe Tyhila ### Page 9 Downloaded from hlayiso.com (EC/SEPTEMBA 2021) ACCOUNTING P1 9 ULWAZI: A. Financial indicators on 28 February 2021: GREEN LTD BCM LTD PLAZA LTD Current ratio 3,3 : 1 1,8 : 1 1,6 : 1 Acid test ratio 1,9 : 1 1,1 : 1 0,4 : 1 Average debtors collection period 39 days 27 days 31 days Average creditors payment period 65 days 42 days 60 days Debt equity 0,6 : 1 0,3 : 1 0,7 : 1 Return on shareholders’ equity 9,5% 12,8% 5,3% (ROSHE) Return on average capital employed 14,7% 16,2% 11,4% Ingeniso ngesabelo ngasinye (EPS) 91 cents 98 cents 64 cents Dividends per share (DPS) 47 cents 74 cents 66 cents Dividend pay-out rate 51,6% 75,5% 103% Net asset value 520 cents 610 cents 566 cents Market price on stock exchange 520 cents 692 cents 532 cents Inzala kwimali-mboleko 13% 13% 13% Credit terms: Debtors zinikwa iintsuku ezingama-30 ukuhlawula amatyala wazo ngokuphelelyo; Ababolekisi bavumela iikhredithi yeentsuku ezingama-60. B. Shares and shareholding of Sandi Charley: GREEN LTD BCM LTD PLAZA LTD Inani lezabelo ezinikezelweyo 1 700 000 1 800 000 2 000 000 Izabelo zika Sandi Charley 900 000 450 000 0 Her % shareholding per company ? 25% 0% Inani lezabelo inkampani nganye eceba ukulinikezela nge 1 March 2021 (at 250 000 450 000 300 000 market price on 28 Feb 2021) 35 AMANQAKU EWONKE: 150 Ilungelo loshicilelo likhuselwe Tyhila ### Page 10 Downloaded from hlayiso.com ### Page 11 Downloaded from hlayiso.com 10 ACCOUNTING P1 (EC/SEPTEMBA 2021) GRADE 12 ACCOUNTING FINANCIAL INDICATOR FORMULA SHEET Gross profit x 100 Gross profit x 100 Sales 1 Cost of sales 1 Net profit before tax x 100 Net profit after tax x 100 Sales 1 Sales 1 Operating expenses x 100 Operating profit x 100 Sales 1 Sales 1 Total assets : Total liabilities Current assets : Current liabilities (Current assets – Inventories) : Current liabilities Non-current liabilities : Shareholders’ equity (Trade and other receivables + Cash and cash equivalents) : Current liabilities Average trading stock x 365 Cost of sales . Cost of sales 1 Average trading stock Average debtors x 365 Average creditors x 365 Credit sales 1 Cost of sales 1 Net income after tax x 100 Net income after tax x 100 Number of issued shares 1 Average shareholders' equity 1 (*See note below) Net income before tax + Interest on loans x 100 Average shareholders' equity + Average non-current liabilities 1 Shareholders' equity x 100 Dividends for the year x 100 Number of issued shares 1 Number of issued shares 1 Interim dividends x 100 Final dividends x 100 Number of issued shares 1 Number of issued shares 1 Dividends per share x 100 Dividends for the year x 100 Earnings per share 1 Net income after tax 1 Total fixed costs . Selling price per unit – Variable costs per unit NOTE: * In this case, if there is a change in the number of issued shares during a financial year, the weighted average number of shares is used in practice. Ilungelo loshicilelo likhuselwe Tyhila ### Page 12 Downloaded from hlayiso.com ### Page 13 Downloaded from hlayiso.com ### Page 14 10 ACCOUNTING P1 (EC/SEPTEMBER 2021) GRADE 12 ACCOUNTING FINANCIAL INDICATOR FORMULA SHEET Gross profit x 100 Gross profit x 100 Sales 1 Cost of sales 1 Net profit before tax x 100 Net profit after tax x 100 Sales 1 Sales 1 Operating expenses x 100 Operating profit x 100 Sales 1 Sales 1 Total assets : Total liabilities Current assets : Current liabilities (Current assets – Inventories) : Current liabilities Non-current liabilities : Shareholders' equity (Trade and other receivables + Cash and cash equivalents) : Current liabilities Average trading stock x 365 Cost of sales . Cost of sales 1 Average trading stock Average debtors x 365 Average creditors x 365 Credit sales 1 Cost of sales 1 Net income after tax x 100 Net income after tax x 100 Number of issued shares 1 Average shareholders’ equity 1 (*See note below) Net income before tax + Interest on loans x 100 Average shareholders’ equity + Average non-current liabilities 1 Shareholders’ equity x 100 Dividends for the year x 100 Number of issued shares 1 Number of issued shares 1 Interim dividends x 100 Final dividends x 100 Number of issued shares 1 Number of issued shares 1 Dividends per share x 100 Dividends for the year x 100 Earnings per share 1 Net income after tax 1 Total fixed costs . Selling price per unit – Variable costs per unit NOTE: * In this case, if there is a change in the number of issued shares during a financial year, the weighted average number of shares is used in practice. Copyright reserved Please turn over Downloaded from hlayiso.com ### Page 15 Downloaded from hlayiso.com ### Page 16 (EC/SEPTEMBER 2021) ACCOUNTING P1 9 INFORMATION: A. Financial indicators on 28 February 2021: GREEN LTD BCM LTD PLAZA LTD Current ratio 3,3 : 1 1,8 : 1 1,6 : 1 Acid test ratio 1,9 : 1 1,1 : 1 0,4 : 1 Average debtors collection period 39 days 27 days 31 days Average creditors payment period 65 days 42 days 60 days Debt equity 0,6 : 1 0,3 : 1 0,7 : 1 Return on shareholders’ equity (ROSHE) 9,5% 12,8% 5,3% Return on average capital employed 14,7% 16,2% 11,4% Earnings per share (EPS) 91 cents 98 cents 64 cents Dividends per share (DPS) 47 cents 74 cents 66 cents Dividend pay-out rate 51,6% 75,5% 103% Net asset value 520 cents 610 cents 566 cents Market price on stock exchange 520 cents 692 cents 532 cents Interest rate on loan 13% 13% 13% Credit terms: Debtors are granted 30 days to settle their accounts; Creditors allow 60 days’ credit terms. B. Shares and shareholding of Sandi Charley: GREEN LTD BCM LTD PLAZA LTD Number of shares in issue 1 700 000 1 800 000 2 000 000 Shares owned by Sandi Charley 900 000 450 000 0 Her % shareholding per company ? 25% 0% Number of shares that each company plans to issue on 1 March 2021 (at market price on 28 Feb 2021) 250 000 450 000 300 000 35 TOTAL: 150 Copyright reserved Please turn over Downloaded from hlayiso.com ### Page 17 8 ACCOUNTING P1 (EC/SEPTEMBER 2021) QUESTION 4: INTERPRETATION OF FINANCIAL INFORMATION (35 marks; 30 minutes) 4.1 Choose the correct word(s) from those given in brackets. Write only the word(s) next to the question numbers (4.1.1 to 4.1.3) in the ANSWER BOOK. 4.1.1 In the event of a business becoming bankrupt, shareholders would only lose their investment in shares. This is because of the (limited / unlimited) liability concept. 4.1.2 The (historical cost / materiality / business entity) GAAP principle stipulates that significant items such as interest expense be disclosed separately on financial statements. 4.1.3 The (net asset value per share / market price) is influenced by the demand for shares on the stock exchange. (3) 4.2 GREEN LTD, BCM LTD and PLAZA LTD The information relates to three different companies, operating in the same industry. The financial year of each company ends on the last day of February. REQUIRED: NOTE: Provide figures, financial indicators or calculations in EACH case to support your comments and explanations. 4.2.1 Liquidity Identify the company that has the most efficient liquidity position. Quote and explain THREE financial indicators to support your choice. (6) 4.2.2 Risk and gearing: A director of Green Ltd feels that the company should pay back the loan as soon as possible. Explain what you would say to him. Quote TWO financial indicators (with figures) to motivate your opinion. (6) 4.2.3 Dividend pay-out policy: Comment on the dividend pay-out rates of Green Ltd and Plaza Ltd, and provide a reason for the directors of each company deciding on those pay-out rates. Quote figures. (6) 4.2.4 Shareholding of Sandi Charley: Sandi Charley is a shareholder in two of these companies. She has R800 000 and intends to invest in new shares. All three companies have decided to issue additional shares on 1 March 2021, at the existing market price on 28 February 2021. x Calculate Sandi’s % shareholding in Green Ltd and comment on your findings. (4) Sandi wants to buy additional shares in Green Ltd and also intends investing in Plaza Ltd. x Calculate the minimum number of shares she should buy in Green Ltd and the amount she would have to spend. (6) x What advice would you offer Sandi regarding her intentions to purchase shares in Plaza Ltd? Provide TWO points. Quote figures (financial indicators) to support your advice. (4) Copyright reserved Please turn over Downloaded from hlayiso.com ### Page 18 (EC/SEPTEMBER 2021) ACCOUNTING P1 7 INFORMATION: A. Extract from the Statement of Comprehensive Income (Income Statement) for the year ended 31 August 2021. Interest on loan (from De Beer Lenders) R 99 360 Net profit before tax 1 340 000 Income tax 428 800 B. Extract from the Balance Sheet on 31 August 2021. 31 Aug 2021 31 Aug 2020 R R Inventories 350 000 380 200 Trade and other receivables (Note 1) 278 000 509 800 Cash and cash equivalents 168 000 10 000 Shareholders’ equity 7 293 200 5 650 000 Ordinary share capital 6 840 000 5 440 000 Loan: De Beer Lenders ? 600 000 Trade and other payables (Note 2) 670 100 459 600 Bank overdraft - 109 800 C. Note 1: Trade and other receivables 31 Aug 2021 31 Aug 2020 R R Trade Debtors 278 000 480 500 SARS (Income tax) 29 300 278 000 509 800 D. Note 2: Trade and other payables 31 Aug 2021 31 Aug 2020 R R Trade Creditors 390 800 215 600 SARS (Income tax) 33 100 Shareholders for dividends ? 208 000 Accrued expenses 6 200 670 100 459 600 E. Share Capital 1 September 2020 1 600 000 shares were in issue. 1 May 2021 400 000 additional shares were issued. 31 August 2021 100 000 shares were repurchased at R1,40 above the average share price. They qualified for final dividends. F. Dividends and earnings: x Interim dividends were paid on 28 February 2021 to all shares on the share register. x A final dividend of 12 cents per share was declared on 31 August 2021. Total dividends for the year amounted to R528 000. x The earnings per share (EPS) was calculated at 53 cents per share. G. Loan: De Beers Lenders The loan was increased on 1 September 2020 (beginning of the financial year). Interest at 12% p.a. was paid up to date, and is not capitalised. 40 Copyright reserved Please turn over Downloaded from hlayiso.com ### Page 19 6 ACCOUNTING P1 (EC/SEPTEMBER 2021) QUESTION 3: CASH FLOW STATEMENT AND FINANCIAL INDICATORS (40 marks; 30 minutes) The information relates to KAMP LTD for the financial year end 31 August 2021. REQUIRED: 3.1 Calculate the following for the Cash Flow Statement on 31 August 2021: 3.1.1 Change in payables (indicate if it is an inflow or outflow of cash) (4) 3.1.2 Income tax paid (4) 3.1.3 Dividends paid (4) 3.1.4 Proceeds from shares issued (5) 3.1.5 Funds used to repurchase shares (3) 3.1.6 Increase in loan (4) 3.2 Complete the NET CHANGE IN CASH AND CASH EQUIVALENTS section of the Cash Flow Statement (4) 3.3 Calculate the following financial indicators for the year ended 31 August 2021. 3.3.1 Acid test ratio. (3) 3.3.2 % Return on shareholders’ equity. (5) 3.3.3 Dividend pay-out rate (%) (4) Copyright reserved Please turn over Downloaded from hlayiso.com ### Page 20 (EC/SEPTEMBER 2021) ACCOUNTING P1 5 (iv) The bookkeeper omitted the stock of calculators in compiling the trading stock figure reflected on the pre-adjustment trial balance. A summary from the stock records of calculators, is as follows: Opening stock 600 units Purchases during the year 2 200 units Returns 180 units Units sold 2 160 units Closing stock 430 units x The relevant sales figure was recorded. x Calculators are purchased at a fixed cost price of R175 each. The specific identification method is used to value the calculators. It was noted that calculators were stolen. This must still be recorded. (v) The company employs three directors on the same fee structure. One of these directors did not receive his fee for February 2021. A fourth director, appointed on 1 December 2020, earns R3 200 per month more than the other directors. He received his fees for the current year. (vi) The salary of the clerk on leave was omitted from the Salaries Journal. Details of his salary is as follows: Net salary Total employee Total employer deductions contributions R9 424 24% of gross salary R1 240 * Employer contributions are debited to salaries and wages. (vii) An adjusted assessment was received from the external auditors stating that audit fees for the year amounts to R80 500. (viii) The loan statement from Luther Bank revealed the following: x Total repayments for the year (including interest) R258 000 x Interest capitalised ? x Balance on 28 February 2021 R1 082 400 10% of the loan balance will be settled during the next financial year. (ix) After taking into account the adjustments, the net profit after tax amounted to R689 310. The current income tax rate is 31%. C. Share capital and dividends: The share register reflected 745 000 shares in issue on 28 February 2021. The changes to share capital and retained income were recorded: x 1 October 2020: 120 000 shares were issued at R8,00 each. x 1 December 2020: 75 000 shares were repurchased at R1,40 above the average share price. These shares do not qualify for final dividends. x Interim dividends were paid on 31 August 2021. x A final dividend of 23 cents per share was declared on 28 February 2021. D. Financial indicators calculated on 28 February 2021: x Net asset value per share (NAV) 860 cents x Current ratio 1,8 : 1 60 Copyright reserved Please turn over Downloaded from hlayiso.com ### Page 21 4 ACCOUNTING P1 (EC/SEPTEMBER 2021) QUESTION 2: COMPANY FINANCIAL STATEMENTS (60 marks; 50 minutes) The information relates to ZOZIE (PTY) LTD, a stationery retailer, for the year ended on 28 February 2021. REQUIRED: Prepare the following for the financial year ended 28 February 2021: 2.1 Statement of Comprehensive Income (36) 2.2 Retained income note (7) 2.3 The EQUITY and LIABILITIES section of the Statement of Financial Position (17) INFORMATION: A. Extract: Pre-Adjustment Trial Balance on 28 February 2021: R Ordinary share capital ? Retained income 204 040 Loan: Luther Bank 955 000 Creditors control 368 470 Net trade debtors 463 000 Bank (favourable balance) 132 600 SARS: Income tax 295 500 Trading stock 882 000 Sales 5 808 000 Cost of sales ? Depreciation 86 010 Insurance 37 200 Discount received 14 000 Rent income 139 500 Directors fees 450 400 Salaries and wages 492 600 Audit fees 85 700 Interest income 23 400 Sundry expenses ? Ordinary share dividends (interim dividends) 126 000 B. ADJUSTMENTS AND ADDITIONAL INFORMATION (i) Goods returned by a debtor, R28 800, was not yet recorded. The goods were placed back in stock, but no entries were made to record this transaction. A profit mark-up 60% on cost is applied to all sales. (ii) Insurance includes an annual premium of R14 400 paid for the period 1 April 2020 to 31 March 2021. (iii) The tenant paid the rent up to 30 April 2021. Note that rent was increased by 15% p.a. with effect 1 July 2020. The premises were occupied since 2018. Copyright reserved Please turn over Downloaded from hlayiso.com ### Page 22 (EC/SEPTEMBER 2021) ACCOUNTING P1 3 QUESTION 1: AUDIT REPORT AND CORPORATE GOVERNANCE (15 marks; 10 minutes) 1.1 Choose an option from the list provided for each description below, write only your answer next to the question numbers (1.1.1 to 1.1.3) in the ANSWER BOOK. Non-executive directors; Remuneration committee; Executive directors; Audit committee; Internal auditor 1.1.1 Responsible for reviewing fees payable to directors 1.1.2 They serve on the Board of Directors but do not work at the company 1.1.3 Appointed by shareholders to perform key management functions in the business (3 x 1) (3) 1.2 AUDIT REPORT An extract of the Independent Auditors Report is provided. REQUIRED: 1.2.1 Identify the type of report and explain why this type of report was issued by the auditor. (2) 1.2.2 Explain TWO points why shareholders will be concerned about the company receiving such a report. (4) 1.2.3 The CEO requested that the auditor classifies this donation as a ‘sundry expense’ and adjust the audit opinion accordingly. Provide TWO reasons why the auditor would not agree with this suggestion. (4) 1.2.4 Apart from the issues mentioned above, explain why the company would be accused of poor corporate governance. (2) INFORMATION: INXUBA LTD EXTRACT FROM THE INDEPENDENT AUDITORS REPORT Basis for opinion A donation of R1,2 m was made to a local community organisation for the provision of facemasks and hand-sanitisers, to local schools. Proper procedures were not followed and no documents were available to verify the said transaction. Audit Opinion In our opinion, except for the donation, that did not follow due process, the financial statements fairly present the financial position of the company on 28 February 2021. 15 Copyright reserved Please turn over Downloaded from hlayiso.com ### Page 23 2 ACCOUNTING P1 (EC/SEPTEMBER 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. Show ALL workings to earn part-marks. 4. You may use a non-programmable calculator. 5. You may use a dark pencil or blue/black ink to answer the questions. 6. Where applicable, show ALL calculations to ONE decimal point. 7. If you choose to do so, you may use the Financial Indicator Formula Sheet attached at the end of this question paper. The use of this formula sheet is NOT compulsory. 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. TIME QUESTION TOPIC MARKS (minutes) 1 Audit Report and corporate governance 15 10 2 Company financial statements 60 50 Cash Flow Statement and financial 3 40 30 indicators 4 Interpretation of financial information 35 30 TOTAL 150 120 Copyright reserved Please turn over Downloaded from hlayiso.com ### Page 24 NATIONAL SENIOR CERTIFICATE GRADE 12 SEPTEMBER 2021 ACCOUNTING P1 MARKS: 150 TIME: 2 hours *accne1* This question paper consists of 10 pages, including a formula sheet and a 9-page answer book. 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