Accounting Grade 12 P1 EC June 2021 Question Paper (English)

Downloaded from hlayiso.com NAME: NATIONAL SENIOR CERTIFICATE GRADE 12 JUNE 2021 ACCOUNTING P1 ANSWER BOOK (EXEMPLAR) TOTAL MARK MODERATED MODERATOR QUESTION MARKS OBTAINED MARK INITIAL 1 25 2 55 3 50 4 20 TOTAL 150 This answer book consists of 10 pages. *JACABE1*

Downloaded from hlayiso.com 2 ACCOUNTING P1 (EC/JUNE 2021) QUESTION 1: CONCEPTS, ANALYSIS OF TRANSACTIONS AND AUDIT REPORT 1.1 CONCEPTS 1.1 1.1.1 1.1.2 1.1.3 3 1.2 ANALYSIS OF TRANSACTIONS ACCOUNT TO ACCOUNT TO AMOUNT A O L BE DEBITED BE CREDITED 1.2.1 330 000 1.2.2 15 000 11 1.3 AUDIT REPORT 1.3.1 Explain why the auditors found it necessary to stipulate the page numbers in the report. 2 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2021) ACCOUNTING P1 3 1.3.2 What type of report did Zenko Ltd receive from the independent auditors? Explain your answer. Type of report: Explanation: 3 1.3.3 State TWO possible consequences for the independent auditor if he had NOT mentioned the donation in his report. 2 1.3.4 Explain why the company would make contributions towards outreach programmes in the local community. Mention TWO points. 4 TOTAL MARKS 25 Copyright reserved Please turn over

Downloaded from hlayiso.com 4 ACCOUNTING P1 (EC/JUNE 2021) QUESTION 2: BALANCE SHEET (STATEMENT OF FINANCIAL POSITION) AND NOTES MAKIZOLE LIMITED 2.1 Complete the following notes for the financial year ended 29 February 2020. (a) ORDINARY SHARE CAPITAL AUTHORISED: 1 400 000 shares ISSUED 650 000 Shares in issue on 1 March 2019 250 000 Shares issued during the year 1 300 000 Shares in issue at 29 February 2020 8 (b) RETAINED INCOME Balance at the beginning of the year 745 000 Dividends on ordinary shares Balance at the end of the year 12 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2021) ACCOUNTING P1 5 2.2 BALANCE SHEET ON 29 FEBRUARY 2020 ASSETS NON-CURRENT ASSETS Fixed assets  CURRENT ASSETS TOTAL ASSETS  EQUITY AND LIABILITIES  ORDINARY SHAREHOLDERS’ EQUITY Ordinary share capital Retained income  NON-CURRENT LIABILITIES  Loan: Capital Bank   CURRENT LIABILITIES Trade and other payables Current portion of loan 100 680 TOTAL EQUITY AND LIABILITIES 35 TOTAL MARKS 55 Copyright reserved Please turn over

Downloaded from hlayiso.com 6 ACCOUNTING P1 (EC/JUNE 2021) QUESTION 3: CASH FLOW STATEMENT, FINANCIAL INDICATORS AND INTERPRETATION 3.1 3.1.1 3.1.2 3.1.3 3 3.2 CACADU LTD 3.2.1 Calculate the following amounts for the Cash Flow Statement: Operating profit before changes in working capital Workings Answer 6 Income tax paid Workings Answer 5 Dividends paid Workings Answer 4 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2021) ACCOUNTING P1 7 3.2.2 Complete the following sections of the Cash Flow Statement: CASH EFFECTS FROM INVESTING ACTIVITIES 7 CASH EFFECTS FROM FINANCING ACTIVITIES Proceeds from the issue of shares 2 984 800 4 NET CHANGE IN CASH AND CASH EQUIVALENTS (88 200) Cash and cash equivalents (end of year) 241 250 2 3.2.3 Calculate the following financial indicators on 30 June 2019: % Operating expenses on sales Workings Answer 4 Copyright reserved Please turn over

Downloaded from hlayiso.com 8 ACCOUNTING P1 (EC/JUNE 2021) % Return on average shareholders’ equity (ROSHE) Workings Answer 5 3.2.4 Quote TWO financial indicators with figures and trends which should be a concern to the company’s liquidity. 4 3.2.5 Comment on the degree of financial risk and gearing of the company. Quote TWO financial indicators with figures and trends to support your answer. 6 TOTAL MARKS 55 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2021) ACCOUNTING P1 9 QUESTION 4: ANALYSIS AND INTERPRETATION OF TWO COMPANIES 4.1 Calculate the number of shares that Alton can buy in Lion Ltd. Workings Answer 2 4.2 Alton is more interested in purchasing the additional shares in Lion Ltd. Provide TWO reasons why he feels this way. Make reference to a comparison between both companies in your answer. REASON FIGURES (with comparison) 6 4.3 Alton is happy with the DPS at Lion Ltd. Provide ONE reason why. REASON FIGURE 3 Provide ONE reason for the dividend policy at Bull Ltd. REASON FIGURE 3 Copyright reserved Please turn over

Downloaded from hlayiso.com 10 ACCOUNTING P1 (EC/JUNE 2021) 4.4 Comment on the return on investment of both companies. Provide ONE separate point for each company. COMMENT for each company FIGURES (with comparisons) Lion Ltd . Bull Ltd 6 TOTAL MARKS 20 TOTAL: 150 Copyright reserved Please turn over