Accounting Grade 12 P1 Eastern Cape June 2024 Addendum (Eng)

Downloaded from hlayiso.com Name: NATIONAL SENIOR CERTIFICATE GRADE 12 JUNE 2024 ACCOUNTING P1 ANSWER BOOK MAX. MARKS MODERATED MARKS QUESTION MARKS OBTAINED School District Province 1 50 2 45 3 40 4 15 150 This answer book consists of 10 pages. Hosted by www.ecexams.co.za

Downloaded from hlayiso.com 2 ACCOUNTING P1 (ANSWER BOOK) (EC/JUNE 2024) QUESTION 1 1.1 1.1.1 1.1.2 1.1.3 1.1.4 4 1.2.1 Calculate: The value of closing stock WORKINGS ANSWER 3 1.2.2 Calculate the correct net profit after tax for the year ended 29 February 2024. Indicate ‘+’ for increase and ‘–’ for decrease at each adjusted amount. No. WORKINGS ANSWER Incorrect Net Profit before tax 3 609 320 Income tax Correct Net Profit after tax 14 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2024) ACCOUNTING P1 (ANSWER BOOK) 3 1.2.3 LIYABONA LTD STATEMENT OF FINANCIAL POSITION ON 29 FEBRUARY 2024 ASSETS NON-CURRENT ASSETS Fixed assets Financial assets CURRENT ASSETS Inventories (1 350 000 Trade and other receivables (889 500 Cash and cash equivalents (704 249 TOTAL ASSETS EQUITY AND LIABILITIES SHAREHOLDERS' EQUITY Ordinary share capital Retained income NON-CURRENT LIABILITIES Loan: Naties Bank CURRENT LIABILITIES Trade and other payables (843 750 TOTAL EQUITY AND LIABILITIES 29 TOTAL MARKS 50 Copyright reserved Please turn over

Downloaded from hlayiso.com 4 ACCOUNTING P1 (ANSWER BOOK) (EC/JUNE 2024) QUESTION 2 2.1 2.1.1 2.1.2 2.1.3 3 2.2 MIMOSOA LTD 2.2.1 Cash Flow Statement for the year ended 30 September 2023 CASH EFFECTS OF OPERATING ACTIVITIES Cash generated from operations 2 229 940 Interest paid (195 750) Taxation paid Dividends paid CASH EFFECTS OF INVESTING ACTIVITIES CASH FLOWS OF FINANCING ACTIVITIES NET CHANGE IN CASH AND CASH EQUIVALENTS Cash (balance at the beginning of the year) Cash (balance at the end of the year) 25 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2024) ACCOUNTING P1 (ANSWER BOOK) 5 2.2.2 RETAINED INCOME NOTE Balance on 1 October 2022 914 020 Ordinary share dividends Balance on 30 September 2023 8 2.2.3 The directors issued more shares to improve the cash flow. Thandi Manning, a shareholder, was against the decision and has raised her concerns at the AGM. Provide a reason for Thandi’s opinion. 2 2.2.4 Calculate: Debt-equity ratio WORKINGS ANSWER 3 Calculate: Acid test ratio WORKINGS ANSWER 4 TOTAL MARKS 45 Copyright reserved Please turn over

Downloaded from hlayiso.com 6 ACCOUNTING P1 (ANSWER BOOK) (EC/JUNE 2024) QUESTION 3 3.1 Purchase of shares: Explain why directors should be interested in the price of their companies’ shares on the JSE. 2 Calculate the number of additional shares in Mabhabs Ltd that Tiger was able to buy on the JSE in 2023. 3 Comment on the price that Tiger paid for the shares in each company and give TWO reasons why he might have been satisfied to pay the price. 6 3.2 Dividends, earnings and returns: Explain your opinion on which company has the better dividend pay-out policy. Give comparative figures. 6 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2024) ACCOUNTING P1 (ANSWER BOOK) 7 Compare and comment on the % return on equity earned by each company. 4 Tiger feels that the earnings per share (EPS) of Landa Ltd is much better than that of Mabhabs Ltd. Explain why he feels this way. 5 3.3 Mabhabs Ltd was negatively affected more than Landa Ltd by the poor economy. (a) Explain TWO decisions taken by the directors of Mabhabs Ltd in response to the state of the economy, and how these decisions will affect the company in future. Decision Effect on the company 6 Copyright reserved Please turn over

Downloaded from hlayiso.com 8 ACCOUNTING P1 (ANSWER BOOK) (EC/JUNE 2024) (b) Explain TWO decisions taken by the directors of Landa Ltd that affect risk and gearing. Quote and comment on TWO financial indicators. 8 TOTAL MARKS 40 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2024) ACCOUNTING P1 (ANSWER BOOK) 9 QUESTION 4 4.1 Provide TWO consequences of neglecting the expectations of the stakeholders by the company. 4 4.2 Choose the audit opinion from COLUMN B that describes the audit report in COLUMN A. Write only the letter (A–C) next to the question numbers (4.2.1–4.2.3) in the ANSWER BOOK. 4.2.1 4.2.2 4.2.3 3 4.3 (a) Which type of audit report will encourage shareholders to buy shares in a company? 1 (b) Explain why it is important for an independent auditor to be a member of a professional body. 1 Copyright reserved Please turn over

Downloaded from hlayiso.com 10 ACCOUNTING P1 (ANSWER BOOK) (EC/JUNE 2024) 4.4 Explain the role of the remunerations committee. Give THREE points. 6 TOTAL MARKS 15 TOTAL: 150 Copyright reserved Please turn over