Accounting Grade 12 Paper 1 KZN June 2025 Addendum

_ LIMPOPO PROVINCIAL GOVERNMENT REPUBLIC OF SOUTH AFRICA STICKER DEPARTMENT OF EDUCATION SCHOOL: LEARNER NAME & SURNAME: NATIONAL SENIOR CERTIFICATE ACCOUNTING P1 JUNE 2025 SPECIAL ANSWER BOOK — QUESTION MARKS INITIAL This answer book consists of 10 pages. Copyright reserved Please turn over

QUESTION 1 HE-LECTRIX LTD NOTE: FIGURES ARE NOT REQUIRED IN THE SHADED AREAS Statement of Comprehensive Income for the year ended 28 February 2025 1.1 Limpopo DoE/June 2025 Sales (15 900 000 Cost of sales (5 300 000 Gross profit Operating income 512 864 Fee income Rent income (89 200 Discount received (45 500 Operating expenses Insurance 62 400 Sundry expenses 3 392 585 Employers contributions 136 740 Salaries & wages 4094 100 Discount allowed 23 850 Consumable stores (45 700 Water Account (79 400 Bank charges (4 290 Advertising (516 000 Bad debts (45 200 Operating profit Interest income Operating profit before interest expense Interest expense Net profit before tax Income tax Net profit after tax Copyright reserved Please turn over 35

Limpopo DoE/June 2025 1.2 RETAINED INCOME Balance at the beginning 16 420 000 Interim dividends 928 000 1.3 EQUITY AND LIABILITIES SHAREHOLDER EQUITY Ordinary share capital 44 400 000 Retained Income NON - CURRENT LIABILITIES CURRENT LIABILITIES TOTAL EQUITY AND LIABILITIES TOTAL MARKS 60 Copyright reserved Please turn over

Limpopo DoE/June 2025 QUESTION 2 2.1 DISKOM LTD 2.1.1 ORDINARY SHARE CAPITAL Issued shares on 1 May 2024 Shares issued during the year (230 000) issued shares on 30 April 2025 5 852 000 2.1.2 Complete the following section of the Cash Flow Statement: CASH EFFECTS FROM OPERATING ACTIVITIES Cash generated by operations 1 317 100 Interest paid 10 CASH EFFECTS FROM INVESTING ACTIVITIES Proceeds from the sale of fixed assets Change in financial assets 190 000 Copyright reserved Please turn over

Limpopo DoE/June 2025 2.1.3 Calculate the following Financial Indicators on 30 April 2025 Current ratio WORKINGS ANSWER % Return on average total capital employed (ROTCE) WORKINGS ANSWER Interim dividends per share WORKINGS ANSWER TOTAL MARKS 40 Copyright reserved Please turn over

Limpopo DoE/June 2025 QUESTION 3 3.1 Match the concepts listed in COLUMN A with an explanation provided in COLUMN B. Write only the letter (A-G) next to each number (3.1.1—3.1.5) in the ANSWER BOOK. 3.1.1 3.1.2 3.1.3 3.1.4 3.1.5 3.2.1 | The CEO of Anna Ltd believes that the company has shown a positive improvement in their liquidity situation because the current ratio has increased significantly to 3,6 : 1. Explain whether he is correct or not by quoting ONE other financial indicator, with figures, to support your answer. 3.2.2 | Calculate and compare the dividend pay-out policy of each company. ELSA LTD ANNA LTD Give a possible reason why one company opted to adjust their policy. Copyright reserved Please turn over

Limpopo DoE/June 2025 3.2.3 | Elsa Ltd decided to increase their loans during the current financial year, whilst Anna Ltd chose to maintain their existing loans. Quote ONE financial indicator and comment on the degree of gearing of each company. ELSA LTD ANNA LTD 8 3.2.4 | A shareholder of Anna Ltd is worried because the value of the company's shares has gone down. Describe the reason for his concern. Quote and explain TWO financial indicators to support your answer. 4 Copyright reserved Please turn over

Limpopo DoE/June 2025 3.2.5 | Clarify why Olaf's decision was a mistake. Discuss his % shareholding and provide TWO additional reasons, supported by figures or calculations, to support your explanation. %SHAREHOLDING: TWO POINTS: TOTAL MARKS 35 Copyright reserved Please turn over

Limpopo DoE/June 2025 QUESTION 4 4.1 GAAP PRINCIPLES Match the GAAP principles listed in COLUMN A with an explanation provided in COLUMN B. Write only the letter (A-E) next to each number (4.1.1-4.1.4) in the ANSWER BOOK. 4.1.1 4.1.2 4.1.3 4.1.4 4.2 AUDIT REPORT AND CORPORATE GOVERNANCE 4.2.1 | Explain the role of the independent auditor. 4.2.2 | Did Barbi Ltd receive a qualified, unqualified, or a disclaimer audit report? Explain your choice. 4.2.3. | To whom is the audit report addressed? Copyright reserved Please turn over

Limpopo DoE/June 2025 4.2.4 | The marketing expense on the Statement of Comprehensive Income relates to a spa and beauty treatment day arranged by the CEO and her friends. The CEO recommended to the external auditor that this transaction be excluded. e The external auditor was not willing to do this. Briefly explain why he feels this way. 2 e Provide TWO consequences for the auditor if he agrees to the recommendation of the CEO. 4 TOTAL MARKS 15 TOTAL: 150 Copyright reserved