Accounting Grade 12 NW Prelim 2019 Memo

Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE GRADE 12 ACCOUNTING SEPTEMBER 2019 MARKING GUIDELINES MARKS: 300 MARKING PRINCIPLES: 1. Unless otherwise stated in the marking guideline, penalties for foreign items are applied only if the candidate is not losing marks elsewhere in the question for that item (no penalty for misplaced item). No double penalty applied. 2. Penalties for placement or poor presentation (e.g. details) are applied only if the candidate is earning marks on the figures for that item. 3. Full marks for correct answer. If answer incorrect, mark the workings provided. 4. If a pre-adjustment figure is shown as a final figure, allocate the part-mark for the working for that figure (not the method mark for the answer). Note: if figures are stipulated in memo for components of workings, these do not carry the method mark for final answer as well. 5. Unless otherwise indicated, the positive or negative effect of any figure must be considered to award the mark. If no + or – sign or bracket is provided, assume that the figure is positive. 6. Where indicated, part-marks may be awarded to differentiate between differing qualities of answers from candidates. 7. This memorandum is not for public distribution, as certain items might imply incorrect treatment. The adjustments made are due to nuances in certain questions. 8. Where penalties are applied, the marks for that section of the question cannot be a final negative. 9. Where method marks are awarded for operation, the marker must inspect the reasonableness of the answer and at least one part must be correct before awarding the mark. 10. Operation means 'check operation'. 'One part correct' means operation and one part correct. Note: check operation must be +, -, x, ÷, or per memo. 11. In calculations, do not award marks for workings if numerator & denominator are swapped – this also applies to ratios. 12. In awarding method marks, ensure that candidates do not get full marks for any item that is incorrect at least in part. Indicate with a x. 13. Be aware of candidates who provide valid alternatives beyond the marking guideline. 14. Codes: f = foreign item; p = placement/presentation. This marking guidelines consists of 19 pages. Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 2 NW/September 2019 NSC – Marking Guideline QUESTION 1 1.1 CONCEPTS 1.1.1 Exempted items P 1.1.2 An indirect P 1.1.3 Input P 1.1.4 the Minister of Finance P 1.1.5 False P 5 1.2.1 Calculate the amount owning to SARS in respect of VAT at the end of February 2019 after taking the transactions into account. No. Calculation Amount owing to SARS A 59 325 – 33 585 25 740 P B 3 220 x 15/115 (420) P C 30 800 x 15/100 4 620 P D (25 300 x 5/100 = 1 265) x 15/115 165 PP E (92 x 500 = 46 000) x 15/115 (6 000) PP F 560 P G (2 280 -2 050 = 230) x 15/115 30 PP H 427 - 247 (180) PP 24 515 þ* *accept a T account *one part correct 13 1.2.2 Pro Party Shop is experiencing cash flow problems and there is no money available to pay SARS. The bank account shows an overdraft of R52 110 on 31 January 2019. The directors have asked the account to reduce the sales amount so that the business will then receive a refund from SARS. Must the accountant go along with this suggestion? No P Give ONE reason for your decision. Any valid point P · It is tax fraud which is a very serious offence. It is unethical. · SARS can charge interest and penalties and could have the guilty party imprisoned. 2 TOTAL MARKS 20 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 3 NW/September 2019 NSC – Marking Guideline QUESTION 2 2.1 BANK RECONCILIATION AND INTERNAL CONTROL 2.1.1 According to the January Bank Statement, does Rose Boutique have a favourable or unfavourable bank balance? Unfavourable P Give a reason for your answer. The Bank Statement show the business bank account as a debit in their books which means that the business owes the bank funds.P 2 2.1.2 Calculate the Bank balance according to the books of Rose Boutique on 31 January 2019. 41 200 P (– 52 780 – 39 800) P + (420 + 2 315 + 1 620) PP – 275 P = (47 300) P OR -41 200 + 52 780 + 39 800 - 420 - 2 315 - 1 620 + 275 = 47 300 State whether this balance is favourable or unfavourable. Favourable P 7 2.1.3 The Reconciliation Statement for January 2019 shows an error that was made by the bank. Give ONE example of the type of error the bank could have made in this instance. Any reasonable answer PP · Cheque drawn by another account holder incorrectly posted to Rose Boutique’s account · Stop-/debit order processed twice in error · Error in amount deducted by the bank when processing a cheque 2 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 4 NW/September 2019 NSC – Marking Guideline 2.1.4 There are large outstanding deposits on the Bank Reconciliation Statement provided by the bookkeeper. On investigation it appears that these funds were in fact received by the cashier on 20 and 25 January 2019. (a) What concern should you have regarding the deposits? Rolling of cash/An indication of theft P 1 (b) Provide TWO solutions to ensure that this does not happen in future. Any TWO valid points PP PP · Encourage direct electronic transfer. · Contact a security company to collect the deposits on a daily / regular basis. · Cash is to be deposited on a daily basis. · Separation of duties – deposits to be done by someone other than the cashier. · Ad hoc checks of cashier duties to be done by internal auditor or manager. 4 2.1.5 Rose Boutique issued a post-dated cheque no. 510 (dated 15 April 2019). Explain how this cheque will be handled in the financial statements on the financial year end, 28 February 2019. Increase cash and cash equivalents (bank) P and increase trade and other payables (trade creditors) P with R1 620. 2 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 5 NW/September 2019 NSC – Marking Guideline 2.2 CREDITORS’ RECONCILIATION AND INTERNAL CONTROL 2.2.1 CREDITORS’ RECONCILIATION STATEMENT ON 30 JUNE 2019 R Balance as per statement of account 10 115 P Invoice 5671 6 555 13 455 P 6 900 P + (6 900 - 345) P OR one mark one mark 13 800 - 345 Invoice 5780 (3 320) P Invoice 5801 1 850 PP Invoice 6011 5 800 P Electronic payment (10 000) P Discount received (500) P 17 400 þ* *one part correct Calculate the correct balance of Bailey Ltd in the Creditors’ Ledger. 17 850 – 450 = 17 400 PP 13 2.2.2 Refer to Information D. Calculate the average creditors’ payment period in days. 114 000 ½ (50 000 + 64 000) PP x 365 P 416 100 P = 57 000 two marks x 365 one mark 416 100 one mark = 50 days þ* *one part correct 5 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 6 NW/September 2019 NSC – Marking Guideline 2.2.3 Provide TWO internal control measures which can be implemented by a business for good internal control over creditors. Any TWO measures PP PP · The statement of account of individual creditors must be reconciled with their accounts in the Creditors’ Ledger. · Conduct internal audits to minimise the possibility of fraud and error. · Check documents to ensure accuracy of calculations and entries. · Ensure that items ordered from creditors are correctly received. · Ensure that all purchases have valid authorisasion. · Ensure that creditors are paid on time to make use of discounts / avoid interest charged discounts. · Make full use of credit terms to assist cash flow. 4 TOTAL MARKS 40 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 7 NW/September 2019 NSC – Marking Guideline QUESTION 3 3.1 3.1.1 Fixed cost P 3.1.2 Indirect material cost P 3.1.3 Selling and distribution cost P 3.1.4 Variable cost P 3.1.5 Administration cost P 5 3.2 N’SYNC MANUFACTURERS 3.2.1 Calculate the value of the raw material on hand on 28 February 2019, using the weighted-average method. Calculation Answer (55 000 + 1 135 000) 1 190 000 P 70 000þ* 9 520 P x 560 P (9 020 + 500) *one part correct Must x 560 OR 125 two marks x 560 one mark 4 3.2.2 Calculate the value of the direct material issued for production. Calculation Answer (55 000 + 1 135 000) 1 190 000 P – 70 000 þ* (see 3.2.1) 1 120 000 þ* OR *one part correct (9 520 – 560) x 125 one mark one method mark (see 3.2.1) 3 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 8 NW/September 2019 NSC – Marking Guideline 3.2.3 Prepare the note for Factory overhead cost. R Factory overhead cost 616 280 Indirect material 52 354 four marks (261 770 three marks x 1/5 one mark) [(4 500 P + 260 000 P - 2 730 P) x 1/5 P] - 1750 P 50 604 þ* Insurance (124 992 - 19 096 PP) - 59 520 P - 7 440 P (105 896 two marks - 66 960 two marks) 38 936 þ* *Must be above 616280 706 440 þ* 12 3.2.4 PRODUCTION COST STATEMENT ON 28 FEBRUARY 2019 R Direct material cost (see 3.2.2) 1 120 000 þ* Direct labour cost 9 430 one mark 790 000 þ* 467 720 P + 312 850 P + (7 002 + 2 428) P 322 280 two marks Prime cost (DMC + DLC) 1 910 000 þ* Factory overhead cost 706 440 þ* Manufacturing cost (PC + FOHC) 2 616 440 þ* Work-in-progress: Beginning 65 050 2 681 490 þ* Work-in-progress: End (Balancing figure) (189 490) þ* Total cost of production 2 492 000 þ* 14 2 512 950 P + 80 500 P-101 450 P *one part correct 3.3 CRAFTY WOOD 3.3.1 Calculate the break-even point for 2018. Calculation Answer 548 410 P + 247 500 P 18,85 P – (5,50 + 4,60 + 1, 65) P (11,75) 112 100 units Pþ* OR * one part correct answer in units 795 910 two marks 7,10 two marks 6 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 9 NW/September 2019 NSC – Marking Guideline 3.3.2 Calculate the units produced and sold for 2018. Calculation Answer 607 750 OR 508 300 OR 182 325 110 500 units PP 5,50 4,60 1,65 2 3.3.3 Explain whether you think the owner, Jenny, should or should not be concerned about the profitability and sustainability of her business. Provide TWO reasons and justify your answer by providing supporting figures The owner should be concerned because the business is not sustainable. P Discussion PP Quoted figures P Answer for THREE marks: · BEP has been calculated at 112 100 units and they are only producing and selling 110 500 units. Therefore they are 1 600 units short. Thus not making profit. · In 2017 the BEP was 78 000 units and they managed to produce and sell 98 000 units, thereby registering a profit on 20 000 units. This will not happen in 2018. Answer for TWO marks: · The BEP has increased from 78 000 units to 112 100 units / by 34 100 units. 4 TOTAL MARKS 50 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 10 NW/September 2019 NSC – Marking Guideline QUESTION 4 4.1 Choose a GAAP principle in COLUMN B that matches the description in COLUMN A. 4.1.1 E P historical cost 4.1.2 D P materiality 4.1.3 B P matching 4.1.4 F P going concern 4.1.5 C P business entity 5 4.2.1 (a) ORDINARY SHARE CAPITAL Authorised shares: 1 000 000 ordinary shares Issued share capital: 700 000 P Ordinary shares on 1 July 2018 2 100 000 P (30 000) P Shares re-purchased R3 P P (90 000) þ* 100 000 P Shares issued at R7 each 700 000 þ* 770 000 P Ordinary shares on 30 June 2019 2 710 000 P 10 *one part correct (b) RETAINED INCOME Balance on 1 July 2018 (Balancing figure) 483 160 þ* Net profit after income tax 900 000 þ* 1 250 000 P – 350 000 P (1 250 000 one mark x 72/100 one mark) 30 000 shares re-purchased at R6 each (180 000) Pþ* Ordinary share dividends (403 500) þ* 134 000 P Interim dividends 670 000 x 0,20 P Final dividends 770 000 þ* x 0,35 P 269 500 þ* Balance on 30 June 2019 799 660 P 13 *one part correct Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 11 NW/September 2019 NSC – Marking Guideline 4.2.2 SAHARA LTD BALANCE SHEET ON 30 JUNE 2019 ASSETS NON-CURRENT ASSETS 3 168 660 þ* Fixed Assets 2 580 000 þ* 1 275 000P + 300 000PP + 720 000P + 600 000 P - 315 000 PP Financial assets: Fixed Deposit P 588 660 þ* 11 CURRENT ASSETS (1 090 000 x 1,5) 1 635 000 þ þ* Inventory 790 000 þ* Trade and other receivables (530 000 P + 24 000 P + 50 000 PP) 604 000 þ* Cash and cash equivalents (66 000 P + 175 000 PP) 241 000 þ* TOTAL ASSETS 4 803 660 þ** **(Must be the same figure as Total Equity and Liabilities) 13 EQUITY AND LIABILITIES SHAREHOLDERS EQUITY 3 509 660 þ* Ordinary share capital P (see 4.2.1 (a)) 2 710 000 þ* Retained income P 799 660 P 5 NON-CURRENT LIABILITIES 204 000 Loan: Quality Bank (300 000 P + 8 000 PP - 56 000 P – 48 000 PP) 204 000 þ* 7 CURRENT LIABILITIES (***SEE ALTERNATIVE) 1 090 000 þ* Trade and other payables (720 000 P + 35 500 P +17 000 PP) 772 500 þ* Shareholders for dividends (see 4.2.1 (b)) 269 500 þ* Current portion of loan P 48 000 þ* 10 TOTAL EQUITY AND LIABILITIES 4 803 660 þ* (SHE + NCL + CL) 46 *one part correct ***ALTERNATIVE FOR CURRENT LIABILITIES: CURRENT LIABILITIES 1 090 000 þ* Trade and other payables (720 000 P + 35 500 P + 269 500 þ*(see 4.2.1 (b)) 772 500 þ* +17 000 PP) Current portion of loan P 48 000 þ* 10 TOTAL EQUITY AND LIABILITIES 4 803 660 þ* Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 12 NW/September 2019 NSC – Marking Guideline 4.3 AUDIT REPORT 4.3.1 Provide ONE reason why public companies must be externally audited. Any valid answer üü · Because they work with public funds. · To be accountable to stake holders e.g. shareholders. · To discourage fraud. · Requirement of the Act/IFRS (compliance). 2 4.3.2 What type of report did Giovanni Ltd receive from the independent auditors? Explain your answer. Type: Unqualified report ü Explain your answer: üü · The auditors found that the financial statements were accurate. · The financial statements fairly present the financial performance and financial position of the company. · The financial statements are in accordance with International Financial Reporting Standards and the Companies Act of South Africa. 3 4.3.3 Refer to information B. One of the directors says that “the company must not waste money on things like this.” Provide THREE reasons against his opinion. Any TWO valid answers üü üü üü · This forms part of their corporate social investment/responsibility which is necessary as the company relies on the goodwill (support/positive image/good publicity) of the community in which they operate. · Creates a safer environment which encourages customers to visit the business/creates better working environment. · In accordance with the King Code. 6 TOTAL MARKS 85 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 13 NW/September 2019 NSC – Marking Guideline QUESTION 5 5.1 FIXED ASSETS 5.1.1 Calculate the cost price of the delivery vehicle that was traded in on 31 August 2018. Calculation Answer 1 120 000 P + 450 000 P – 1 270 000 P 300 000 þ* OR *one part correct – 1 120 000 – 450 000 + 1 270 000 4 5.1.2 Calculate the missing figures as indicated by (i)–(iv) on the fixed asset note. No. Calculations Answer (i) (400 000) P ignore brackets (ii) (6 015 000 – 5 715 000) + 400 000 700 000PP (iii) one mark one mark [(300 000 – 60 000) x 20%] x 6/12 216 000 þ* 300 000 P– (60 000 P + 24 000PP) *one part correct 84 000 three marks (iv) New: (65 000 x 18/100) P x 3/12 P = 2 925P (31 924) þ* *one part correct Old: 29 000 -1 = 28 999PP 14 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 14 NW/September 2019 NSC – Marking Guideline 5.2 CASH FLOW STATEMENT 5.2.1 Reconciliation between profit before taxation and cash generated from operations. R Profit before tax (60 000 + 90 000) 150 000 PP Adjustment in respect of: 56 100 þ* Interest on loan 12 900 P Depreciation 43 200 P Operating profit before changes in working 206 100 þ* capital: Changes in working capital: 29 900 þ* Inventory 134 000 28 000þ* (126 150 + 7 850) P - 162 000 P Must not be in brackets Trade and other receivables (23 800 + 1 400) P – 36 000 P 10 800 þ* Must not be in OR brackets 25 200 one marks (28 000 – 2 800) – 36 000 one mark one mark Trade and other payables (8 900) þ* 54 800 P – (63 000 + 700) P Must be in brackets OR 54 800 one mark 63 700 one mark (74 800 – 20 000) – (83 700 - 12 000 – 8 000) one mark one mark Cash generated from operations 236 000 þ* 17 *one part correct Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 15 NW/September 2019 NSC – Marking Guideline 5.2.2 Cash effects of operating activities 110 300 þ* Cash generated from operations (see 5.2.1) 236 000 þ Interest paid (12 900) P Must be in brackets Dividends paid 50 000 three marks 12 000 P+ [(32 000 P+ 90 000 P - 72 000 P) - 20 000P] (42 000) þ* OR 12 000 one mark + 30 000 four marks Must be in brackets OR 62 000 four marks – 20 000 one mark OR 50 000 -12 000 - (32 000 + 90 000 - 72 000) + 20 000 OR -12 000 one mark - 30 000 four mark (Accept T-account) Income tax paid 8 000 P+ 60 000 P+ 2 800 P (70 800) þ* OR Must be in brackets -8 000 - 60 000 - 2 800 (Accept T-account) 13 5.2.3 Net change in cash and cash equivalents (69 600) þ* Cash and cash equivalents : Beginning 16 400 P Cash and cash equivalents : End (53 200) PP (6 800 – 60 000) 4 *one part correct 5.3 INTERPRETATION AND ANALYSIS 5.3.1 Comment on the following financial indicators: Comment with figures Reason for change P P PP P P (a) % gross profit on Increased from 47% to Advertising used to the cost of sales 56%. 56% is less than increase sales; the mark-up of 60% improved marketing strategies; purchased from cheaper suppliers; trade discount allowed to customers 3 (b) % operating Improved/decreased Kept within budget; expenses on from 23% to 18% avoided wastage; sales Increase sales; cut down expenses 3 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 16 NW/September 2019 NSC – Marking Guideline 5.3.2 From 2017 to 2018 the directors made a well-considered decision to change the policy on the distribution of profit in the form of dividends. Explain this change. Quote figures or calculations to support your answer. Expected response for FOUR marks (explanationPP figures/calculationPP) They paid out (42÷42 x100) 100% of all their earnings in 2017, compared to (28÷50 x 100) 56% of their earnings in 2018. The business is retaining funds for future expansions/developments/to improve NAV in 2018. Expected response for TWO marks: The DPS decreased from 42 cents to 28 cents/decreased by 14 cents and the EPS improved from 42 cents to 50 cents/improved by 8 cents. 4 5.3.3 Shareholders are satisfied with the issue price of the new shares. Quote TWO financial indicators with figures to support this statement. Financial indicators and figures P P Valid comment P P · New shares have been sold at 873 cents above the NAV of 648 cents · New shares have been sold at 873 cents above the market value per share of 763 cents 4 5.3.4 One of the directors feel that the loan should be paid as soon as possible. Do you agree? Quote TWO financial indicators with figures to support your opinion. Opinion: No P Financial indicators with figures: Explanation P P Trend from 2017 to 2018 P P Debt-equity ratio is 0,06 : 1 which means the business is in a position to borrow more money. This indicates low risk. The return on total capital employed (ROTCE) for 2018 is 26% which is higher than the interest rate of 18%. This indicates positive gearing. 5 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 17 NW/September 2019 NSC – Marking Guideline 5.3.5 The shareholders should be satisfied with the return on their investment and the companies’ earnings. Explain TWO financial indicators with figures to support this opinion. Explanation P P Figures P P Return on shareholders’ equity improved from 9,5% to 20%. 20% is higher than return on alternative investment of 7% or 13%. Earnings per share improved from 42 cents to 50 cents per share. 4 TOTAL MARKS 75 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 18 NW/September 2019 NSC – Marking Guideline QUESTION 6 6.1 Complete the Debtors’ Collection Schedule for August 2019. DEBTORS’ COLLECTION SCHEDULE FOR AUGUST 2019 CREDIT SALES AUGUST May 42 000 June 49 200 3 936 PP July 43 200 30 240 þ** **Must x70% August 33 600 6 384 PP 40 560 þ* *one part correct 6 6.2 Calculate the missing amounts indicated by (i)–(iv) on the Cash Budget. No. Calculations Answer (i) (84 000 x 100/150 P) x 25% P 14 000 þ* (ii) (82 000 x 75%) P x 95% P 58 425 þ* (iii) 2 904 x 100/110 2 640 PP (iv) - 22 600 P – 10 200 P (32 800) þ* *one part correct 11 6.3 Refer to Information A and E. The workers are dissatisfied with the increases they will be receiving in August 2019. They have also indicated that they will embark on strike action in October 2019 if the owner does not address their concerns. Give ONE reason (with figures) that the owner could use to justify the increase he granted to the workers in August 2019. Appropriate reason PP relevant figure P P · The business is experiencing cash flow problems as the bank balance is expected to be overdrawn at the end of August 2019 by R120 000. · The total sales for June (R89 100) is below the budgeted amount (R123 000) and he expects this trend to continue. · Collection from debtors decreased from R46 440 to R40 896. 4 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting 19 NW/September 2019 NSC – Marking Guideline 6.4 Refer to Information A and G. The owner requires your comment regarding the new vehicle. Apart from the deposit and the monthly instalment of R6 250, explain how the next Cash Budget will be affected. State THREE points. Any 3 valid points P P P · Delivery expenses paid to MJ Deliveries will be avoided. · Petrol costs must be included. · Salary of a driver must be included. · Insurance must be included. 3 6.5 Refer to Information H. At the end of August 2019 the following figures were identified. The owner has asked that you explain to him why the budgeted and actual amounts of certain items differ significantly. Comment on the control of the following items in September 2019. Provide ONE point of advice to Terry in respect of each item. COMMENT ADVICE ADVERTISING: Increases advertising to increase Under spent. sales.P This lead to the decrease in sales. PP PACKING MATERIALS: Regular stock counting to check Over spent. for possible theft ü Sales is less so packing materials must also be less. üü 6 TOTAL MARKS 30 TOTAL: 300 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting NW/September 2019 NSC – Marking Guideline DISTRIBUTION OF QUESTIONS IN TERMS OF COGNITIVE LEVELS (Table) PROBLEM- ACCN September 2019 BLOOMS TAXONOMY CHALLENGE SOLVING Analyse Remember Understand Analyse Apply Evaluate Medium Difficult Surface Apply Create Easy Deep Q Marks Topic (productiv (process) (understand) (recall) comprehend e) 1.1 5 Concepts 5 5 1.2.1 13 Calculate owning 10 3 4 6 4 to SARS 1.2.2 2 Ethics 2 2 2 20 5 2 10 3 2.1.1 2 B/S Balance 2 2 2.1.2 7 Bank balance 1 4 2 2 5 2.1.3 2 B/S Error 2 2 2.1.4 (a) 1 Identify problem 1 1 1 2.1.4 (b) 4 Internal Control 4 4 4 2.1.5 2 Post-dated cheque 2 2 2.2.1 13 Cred. Recon State 6 5 2 1 7 5 2.2.2 5 Calculate average 5 5 cred. payments 2.2.3 4 Internal control 4 4 40 3 13 5 10 9 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting NW/September 2019 NSC – Marking Guideline PROBLEM- ACCN September 2019 BLOOMS TAXONOMY CHALLENGE SOLVING Understand Analyse Remember Analyse Apply Evaluate Medium Difficult Surface Apply Create Easy Deep Q Marks Topic (productiv comprehend (process) (understand) (recall) e) 3.1. 5 Concepts 5 5 3.2.1 4 Value closing 4 4 stock (WA) 3.2.2 3 Calculate DM 3 3 3.2.3 12 Factory overhead 10 2 4 5 3 3.2.4 14 Prod. cost statem 7 7 5 5 4 3.3.1 6 Break-even point 6 6 3.3.2 2 Units produce 2 2 3.3.3 4 BEP & Units prod 4 2 2 50 0 5 7 20 2 12 4 0 4.1 5 GAAP-principles 5 5 4.2.1 (a) 10 Ord. share capital 2 6 2 2 4 2 4.2.1 (b) 13 Retained Income 2 8 3 2 7 6 4.2.2 46 Balance sheet 15 21 2 8 15 16 15 4.3.1 2 External Oudit 2 2 4.3.2 3 Identify audit 3 3 report and explain 4.3.3 6 King Code 6 4 2 85 5 2 19 35 2 13 9 0 5.1.1 4 Cost price vehicle 4 4 5.1.2 14 Fixed asset note 6 6 2 4 5 5 5.2.1 17 Note 1 Cash flow 7 10 3 7 7 5.2.2 13 Cash effect 7 6 3 5 5 Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting NW/September 2019 NSC – Marking Guideline PROBLEM- ACCN September 2019 BLOOMS TAXONOMY CHALLENGE SOLVING Understand Analyse Remember Analyse Apply Evaluate Medium Difficult Surface Apply Create Easy Deep Q Marks Topic (productiv comprehend (process) (understand) (recall) e) operating 5.2.2 4 Net change cash 4 2 2 5.3.1 3 % gross profit 1 2 1 2 3 % operating 1 2 1 2 expenses 5.3.2 4 Comment 4 4 dividends 5.3.3 4 Issue price 4 4 5.3.4 4 ROTCE 5 5 5.3.5 5 ROSHE 75 0 0 20 26 2 6 21 0 6.1 6 Credit sales and Debtor’s 1 5 4 2 collection 6.2 11 Cash Budget 7 4 3 4 4 6.3 4 Internal control 4 2 2 6.4 3 Identify problem 3 2 1 3 6.5 6 Actual vs Budget 2 4 3 3 6 30 0 0 8 9 0 0 6 7 10 19 61 115 6 39 43 7 57 135 89 Total 300 30% 41% 29% 19% 45% 30% 10% Required % 30% 40% 30% Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting NW/September 2019 NSC – Marking Guideline ACCOUNTING CAPS - DATE: September 2018 Q1 Q2 Q3 Q4 Q5 Q6 Bank and GAAP, Cred. Recons Manufacturing Balance Cash Flow Cash Question topics: VAT & Ethics & Inventory sheet, Audit & analysis Budget 20 40 50 85 75 30 DISCIPLINE 1: FINANCIAL ACCOUNTING 12.1.1 Concepts - companies 12.1.2 Concepts - GAAP & IFRS 4 12.1.3 Selected ledger accounts & interpretation - companies 12.1.4 Accounting equation - companies 12.1.5 Final accounts - companies 12.1.6 Financial statements - IS - companies 12.1.7 Financial statements - BS & Notes - companies 71 12.1.8 Cash Flow Statement - companies 37 12.1.9 Analysis and interpretation of FS - companies 13 12.1.10 Analyse published FS & audit report of companies 6 12.1.11 Close corporations - background only 12.1.12 Interpret reconciliations: bank, debtors, creditors, age-analysis 31 12.1.13 VAT calculation & Control acc (VAT form background only) 18 DISCIPLINE 2: MANAGERIAL ACCOUNTING 12.2.1 Manufacturing concepts 5 Production Cost Stmt, short-form Inc Stmt & notes - 12.2.2 manufacturing 26 12.2.3 Analysis & interpretation of unit costs & break-even 15 12.2.4 Projected IS - sole trader - analyse & interpret 12.2.4 Projected IS - company - analyse & interpret 12.2.5 Cash budget - sole trader - analyse & interpret 30 12.2.5 Cash budget - company analyse & interpret Copyright reserved Please turn over

Downloaded from hlayiso.com Accounting NW/September 2019 NSC – Marking Guideline DISCIPLINE 3: MANAGING RESOURCES (AUDITING & GOVERNANCE) 12.3.1 Interpret & report on movements of assets 25 12.3.2 Valuation of inventories - FIFO & WA & Specific Identification 4 12.3.2 Periodic & perpetual inventory systems 12.3.3 Professional bodies & Code of conduct 12.3.4 Application of internal control & internal audit processes 9 12.3.5 Ethical behaviour in financial environment 2 12.3.6 Legislation governing companies (overview only) 4 Content coverage: Indicate the actual weighting of all content topics in terms of marks against the prescribed/suggested weighting as in accordance with the CAPS. Content/Topic Suggested Actual Financial Accounting 50%-60% 60% Managerial Accounting 20%-25% 25% Managing resources 20%-25% 15% TOTAL 300 100% Copyright reserved