Accounting Grade 12 P1 GP Prelim 2023 Addendum (English)

Downloaded from hlayiso.com PREPARATORY EXAMINATION 2023 10711 ACCOUNTING PAPER 1 ANSWER BOOK 11 pages NAME OF SCHOOL: NAME OF LEARNER: LEARNER’S QUESTION TOPIC MARKS MARKS Retained Income Note and Statement of 1 55 Financial Position 2 Cash Flow Statement and Financial Indicators 45 3 Interpretation of Financial Statements 35 4 Corporate Governance 15 TOTAL 150 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 2 (PAPER 1) 10711/23 QUESTION 1 1.1 Calculate: Value of closing stock WORKINGS ANSWER 5 1.2 (i) Calculate: Accumulated depreciation on vehicles WORKINGS ANSWER 2 (ii) Calculate: Depreciation on equipment for the year WORKINGS ANSWER 5 (iii) Calculate: Disposal at carrying value on vehicles WORKINGS ANSWER 5 1.3 RETAINED INCOME NOTE ON 30 JUNE 2023 Balance at beginning of the year Ordinary share dividends (440 000) Balance at the end of the year 1 045 000 10 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 3 (PAPER 1) 10711/23 1.4 Statement of Financial Position on 30 June 2023 ASSETS NON-CURRENT ASSETS Fixed deposit 582 000 CURRENT ASSETS TOTAL ASSETS EQUITY AND LIABILITIES ORDINARY SHAREHOLDERS' EQUITY 2 800 000 Ordinary share capital 1 755 000 Retained income 1 045 000 NON-CURRENT LIABILITIES Mortgage loan CURRENT LIABILITIES TOTAL EQUITY AND LIABILITIES 28 MARKS 55 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 4 (PAPER 1) 10711/23 QUESTION 2 2.1 2.1.1 2.1.2 2.1.3 3 2.2.1 Calculate: Inventory amount at the end of the financial year WORKINGS ANSWER 2 Calculate: Income tax paid WORKINGS ANSWER 4 Calculate: Dividends paid WORKINGS ANSWER 3 Calculate: Purchase of fixed assets WORKINGS ANSWER 5 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 5 (PAPER 1) 10711/23 2.2.2 CASH EFFECTS OF FINANCING ACTIVITIES 8 2.2.3 NET CHANGE IN CASH AND CASH EQUIVALENTS 6 2.2.4 Calculate: % net profit before tax on sales WORKINGS ANSWER 3 Calculate: Current ratio WORKINGS ANSWER 3 Calculate: Dividends per share WORKINGS ANSWER 4 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 6 (PAPER 1) 10711/23 Calculate: % returns on shareholders’ equity WORKINGS ANSWER 4 MARKS 45 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 7 (PAPER 1) 10711/23 QUESTION 3 3.1.1 Cruz has been concerned about the company’s working capital over the years. He proposed a new approach to the directors of converting assets into cash quickly. Quote TWO financial indicators and explain why his concern is justified. 4 3.1.2 A shareholder has proposed that Cruz acquires a loan from his wife, who is a bank consultant. Cruz did not agree with the proposal. Explain why you agree with Cruz. Quote TWO financial indicators. 6 3.1.3 Provide a calculation which validates their decision. 4 Give ONE reason why they took this decision. 2 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 8 (PAPER 1) 10711/23 3.1.4 Comment on the % returns and earnings per share of the company. (a) Quote TWO financial indicators with figures. 4 (b) Comment on the share price on the JSE and how the % returns and earnings per share have affected the share price. Quote figures. 2 3.1.5 State TWO different points to justify their concern. Quote figures (a) and financial indicators. POINT 1: POINT 2: 4 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 9 (PAPER 1) 10711/23 (b) Explain why the other directors were unhappy with the price paid for the shares repurchased from Cruz. State TWO points. Quote financial indicators and figures to support EACH point. POINT 1: POINT 2: 4 (c) Provide a calculation and comment on whether the repurchase of these shares affected Cruz's shareholding status or not. WORKINGS ANSWER COMMENT: 3 (d) Explain why the public was not interested in buying the new shares issued at R7,90 per share. Quote ONE financial indicator with a trend. (excluding EPS AND ROSHE). 2 MARKS 35 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 10 (PAPER 1) 10711/23 QUESTION 4 4.1 Provide TWO key functions for which the Human Resources Division may be responsible. 2 List TWO qualities that they may consider in a prospective candidate for a management position. 2 Explain the role of a CEO in a company. 2 What impact would the image of the company have on the market price of shares? Explain ONE point. 2 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 11 (PAPER 1) 10711/23 4.2 Provide TWO possible questions that a concerned stakeholder may have raised with the Human Resources Division at the meeting. 2 Explain ONE strategy that Mangray Ltd can use to involve its employees in collective decision-making. Provide a reason for your answer. 3 “Good corporate governance helps companies to thrive and compete.” Provide TWO points to show why you agree with this statement. 2 MARKS 15 TOTAL: 150 END

PREPARATORY EXAMINATION 2023 10711 ACCOUNTING PAPER 1 ANSWER BOOK 11 pages Downloaded from hlayiso.com