Accounting P1 (English) June 2025 Answer Book.pdf

JUNE EXAMINATION GRADE 12 2025 ACCOUNTING (PAPER 1) ANSWER BOOK NAME AND SURNAME: NAME OF SCHOOL: QUESTION TOTAL MARKS MARKS OBTAINED MODERATED MARK 1 55 2 40 3 40 4 15 TOTAL 150 10 pages Please turn over

ACCOUNTING ANSWER BOOK 2 (PAPER 1) GR12 0625 QUESTION 1 1.1 1.1.1 1.1.2 1.1.3 3 1.2 1.2.1 Statement of Comprehensive Income for the year ended 28 February 2025 Sales Cost of sales (2 150 000) Gross profit Other operating income Bad debts recovered 15 400 Gross operating income Operating expenses Salaries and wages 1 030 000 Operating profit 690 000 Interest income Profit before interest expense Profit before income tax Net profit after tax 26 Please turn over

ACCOUNTING ANSWER BOOK 3 (PAPER 1) GR12 0625 1.2.2 Statement of Financial Position (Balance sheet) on 28 February 2025 ASSETS NON-CURRENT ASSETS Fixed assets Fixed deposit CURRENT ASSETS Trade and other receivables 382 700 Cash and cash equivalents TOTAL ASSETS EQUITY AND LIABILITIES SHAREHOLDERS' EQUITY 2 069 000 Ordinary share capital 1 189 000 Retained income 880 000 NON-CURRENT LIABILITIES CURRENT LIABILITIES Trade and other payables 198 400 TOTAL EQUITY AND LIABILITIES 26 55 Please turn over

ACCOUNTING ANSWER BOOK 4 (PAPER 1) GR12 0625 QUESTION 2 2.1 Ordinary Share Capital note on 31 May 2025 556 100 Ordinary shares at the beginning Ordinary shares issued during the year 120 000 R 2 169 150 Shares at the end of the year 6 2.2 Calculate the following financial indicators for the year ended 31 May 2025: 2.2.1 % Net profit before tax on sales WORKINGS ANSWER 2 2.2.2 Net asset value WORKINGS ANSWER 3 2.2.3 % Return on total capital employed WORKINGS ANSWER 7 Please turn over

ACCOUNTING ANSWER BOOK 5 (PAPER 1) GR12 0625 2.3 CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MAY 2025 CASH FLOW FROM OPERATING ACTIVITIES Cash generated from operations Interest paid (338 780) CASH FLOW FROM INVESTING ACTIVITIES Change in investments CASH FLOW FROM FINANCING ACTIVITIES Repurchase of shares Change in loans NET CHANGE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING CASH AND CASH EQUIVALENTS AT END 22 40 Please turn over

ACCOUNTING ANSWER BOOK 6 (PAPER 1) GR12 0625 QUESTION 3 3.1 3.1.1 3.1.2 3.1.3 3 3.2 Shanice Krates, one of the shareholders and CEO argued that the directors did not deserve the performance bonus because they failed to efficiently manage the company’s working capital. Quote TWO financial indicators to support Shanice’s argument. 6 3.3 Some shareholders are not satisfied with the change in the dividend pay-out policy. Explain the reason for this change. 4 Please turn over

ACCOUNTING ANSWER BOOK 7 (PAPER 1) GR12 0625 3.4 Reeves, a potential shareholder, is unsure on whether to invest in the company or invest his money in long-term investments in other financial institutions. Provide ONE point of advice by quoting ONE relevant financial indicator. 4 3.5 The directors decided to allow the issue of more shares on 31 January 2025 instead of taking an additional loan to finance the operations of the company. Quote TWO financial indicators to justify the decision taken by the directors. 6 3.6 3.6.1 Calculate the amount spent by Shanice on the shares she bought on 31 January 2025. (She was allowed to buy shares equal to one-fifth of the shares she already owned.) NOTE: No shares were repurchased during the financial year. 3 Please turn over

ACCOUNTING ANSWER BOOK 8 (PAPER 1) GR12 0625 3.6.2 Shanice wants to be a majority shareholder. Explain whether she managed to achieve her goal. Show ALL calculations. 6 3.6.3 Explain ONE consequence to the company of allowing Shanice to buy shares equal to one-fifth of the shares she already owns. 2 3.7 At an AGM the directors stated that they were planning to repurchase 15 000 shares of a recently deceased shareholder during the next financial period at a share price of R8 per share. Some shareholders disagreed with this decision. Explain why they may disagree with this decision by quoting TWO relevant financial indicators. 6 40 Please turn over

ACCOUNTING ANSWER BOOK 9 (PAPER 1) GR12 0625 QUESTION 4 4.1 4.1.1 Provide ONE key factor that should be checked before donating items. 2 4.1.2 Explain why it is important for a business to engage in Corporate Social Responsibility (CSR). Provide TWO points. 4 4.2 4.2.1 Give TWO benefits of good governance for companies. 4 Please turn over

ACCOUNTING ANSWER BOOK 10 (PAPER 1) GR12 0625 4.2.2 How can businesses apply the King Code principles of transparency and accountability? Provide TWO points. 4 4.2.3 What should directors do if they have a conflict of interest? Provide ONE point. 1 15 TOTAL: 150 END

JUNE EXAMINATION GRADE 12 2025 ACCOUNTING (PAPER 1) ANSWER BOOK