# Accounting Grade 10 P1 2020 QP (Eng) > Grade 10 Accounting Paper 1 question paper from the Mpumalanga National Exemplar Exam (NSC) 2020 (English), 11 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/accounting-p1-gr10-qp-nov2020-english/c91ada0d-f2a4-479b-b18e-1be1c639550b - Updated: 2026-09-27 - Subject: Accounting - Grade: Grade 10 - Language: English - Document type: Question paper - Year: 2020 - Exam period: Mpumalanga National Exemplar Exam (NSC) - Paper: 1 - Curriculum: CAPS - Pages: 11 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 10](https://www.hlayiso.com/library/grade-10) › [Accounting](https://www.hlayiso.com/library/grade-10/accounting) › [Accounting Grade 10 P1 2020 QP (Eng)](https://www.hlayiso.com/library/accounting-p1-gr10-qp-nov2020-english/c91ada0d-f2a4-479b-b18e-1be1c639550b) ## About this document Accounting · Grade 10 · Mpumalanga National Exemplar Exam (NSC) · 2020 · English. Question paper, 11 pages. Read online or download the PDF. Read it free online on the page above; download the PDF from there. ## Matching paper and memo - [ACCOUNTING P1 GR10 ANSWERBOOK NOV2020 English](https://www.hlayiso.com/library/accounting-p1-gr10-answerbook-nov2020-english/c4d8e446-8476-4fa0-9444-592661c4c3f8) — Addendum · 2020 · Eng ## Document text Text extracted from the PDF. Layout, diagrams and tables may not survive extraction. ### Page 1 NATIONAL SENIOR CERTIFICATE GRADE 10 NOVEMBER 2020 ACCOUNTING P1 (EXEMPLAR) MARKS: 150 TIME: 2 hours This question paper consists of 11 pages, a 1-page formula sheet and a 10-page answer book. ### Page 2 2 ACCOUNTING P1 (EC/NOVEMBER 2020) INSTRUCTIONS AND INFORMATION Read the following instructions carefully and follow them precisely. 1. Answer ALL the questions. 2. A special ANSWER BOOK is provided in which you must answer ALL the questions. 3. A FORMULA SHEET for financial indicators is attached to this question paper. You may use it if necessary. 4. Show ALL workings to earn part-marks. 5. You may use a non-programmable calculator. 6. You may use a dark pencil or black/blue ink to answer the questions. 7. Where applicable, show ALL calculations to ONE decimal point. 8. A breakdown of the questions is provided. You must attempt to comply with the suggested time allocation for each question. QUESTION 1: 24 marks; 19 minutes Topic of the question: This question integrates: • Concepts Accounting concepts, Accounting equation • Accounting equation QUESTION 2: 49 marks; 39 minutes Topic of the question: This question integrates • Concepts Concepts and Income Statement • Income Statement QUESTION 3: 55 marks; 44 minutes Topic of the question: This question integrates: Concepts, Fixed Assets, Balance • Concepts, Fixed Assets Sheet, Interpretations and Internal control • Balance Sheet • Interpretation and Internal control QUESTION 4: 22 marks; 18 minutes Topic of the question: This question integrates: Concepts, Wages Journal, Internal control • Concepts, Wages Journal • Internal controls over Wages Copyright reserved Please turn over Please turn over ### Page 3 (EC/NOVEMBER 2020) ACCOUNTING P1 3 QUESTION 1: ACCOUNTING CONCEPTS AND ACCOUNTING EQUATION (24 marks; 19 minutes) 1.1 CONCEPTS Choose the correct word(s) from COLUMN A to match a description in COLUMN B. Write only the letter (A–E) in COLUMN B next to the question numbers (1.1.1–1.1.4) in the ANSWER BOOK, for example 1.1.5 F. COLUMN A COLUMN B 1.1.1 Investments A An individual or group of people who invest money in a business for the purpose of making a profit 1.1.2 Double entry principle B Money borrowed in order to purchase a property 1.1.3 Mortgage loan C Money tied up, for a period of time, in order to earn a higher return 1.1.4 Investor(s) D The owner’s net investment in the business E For every debit there is corresponding credit (4 x 1) (4) 1.2 ACCOUNTING EQUATION REQUIRED: Analyse the following transactions according to the format provided in the ANSWER BOOK. INFORMATION: 1.2.1 Received R1 000 from Protea Bank as monthly interest on fixed deposit. 1.2.2 Issued a cheque to G Africa for the purchase of equipment, R24 000. 1.2.3 PAMA Brothers charged the business’s overdue account of R4 800 with 18% interest p.a. for four months. 1.2.4 Sold goods for cash that cost the business R1 800. Goods are sold at cost plus 50%. (20) 24 Copyright reserved Please turn over ### Page 4 4 ACCOUNTING P1 (EC/NOVEMBER 2020) QUESTION 2: CONCEPTS AND INCOME STATEMENT (49 marks; 39 minutes) 2.1 Match the concept in COLUMN A with an example provided in COLUMN B. Write only the letters (A–D) next to the numbers (2.1.1–2.1.4) in the ANSWER BOOK, for example 2.1.5 E. COLUMN A COLUMN B 2.1.1 Income Statement A A report on good business practice developed in South Africa 2.1.2 Balance Sheet B The manner in which a business is administered by owners and managers 2.1.3 Governance C Statement showing the financial position of a business at a particular point in time 2.1.4 King Code D This shows the financial performance of a business for a financial year (4 x 1) (4) 2.2 KINGSTON TRADERS The information relates to the financial year ended 29 February 2020. Goods are sold at a profit mark-up of 40% on cost. REQUIRED: Prepare the Income Statement (Statement of Comprehensive Income) for the year ended 29 February 2020). (45) INFORMATION: A. Information Extracted from the Pre-Adjustment Trial Balance on 29 February 2020. Capital 500 00 Drawings 70 00 Vehicles 320 00 Accumulated depreciation on vehicles (01/03/2019) 80 000 Equipment 140 000 Accumulated depreciation on equipment (01/03/2019) 26 000 Land and building 1 200 000 Fixed deposit: Same Bank 180 000 Bank 76 000 Trading stock 231 000 Creditors’ control 143 000 Loan: Colour Bank 220 000 Debtors’ control 211 000 Sales 950 000 Cost of sales 400 000 Debtors’ allowances 14 000 Salaries and wages 168 000 Fee income 82 600 Copyright reserved Please turn over Please turn over ### Page 5 (EC/NOVEMBER 2020) ACCOUNTING P1 5 Interest income 900 Consumable stores 5 500 Rent income 39 000 Interest in fixed deposit 1 870 Discount allowed 1 260 Discount received 830 Telephone 9 200 Stationery 8 800 Insurance 16 800 Bad debts 1 300 B. Additional information and adjustments: 1. Cash sales of R18 200 on 29 February 2020 has not been recorded. 2. Fee income of R2 400 is still outstanding for the period. 3. Insurance includes monthly payment up to 30 April 2020. 4. One employee, I. Cool, has been left out of the Salaries Journal in error. She has not yet been paid for February. The details of his salary are as follows: • Gross salary ? • Net salary R7 300 • PAYE R2 200 • UIF R400 • Pension fund R100 5. Depreciation on vehicles of R32 000 and on equipment of R17 100 must be written off. 6. Interest on the loan for the year amounted to R30 800. 7. Bad debts of R700 must be written off the account of G. Sirino. 8. Rent was received for 13 months. 9. Physical count of stock revealed the following stock on hand: • Trading stock R220 000 • Unused Consumable stores in stock amounted to R500. 49 Copyright reserved Please turn over ### Page 6 6 ACCOUNTING P1 (EC/NOVEMBER 2020) QUESTION 3: CONCEPTS, FIXED ASSETS, BALANCE SHEET, INTERPRETATION AND INTERNAL CONTROL (55 marks; 44 minutes) 3.1 CONCEPTS Select a concept from the options provided that best describes the examples listed. Write the concept only next to the numbers (3.1.1–3.1.4) in the ANSWER BOOK. Returns on investment; profitability; solvency; liquidity 3.1.1 … indicates the benefit the owner will receive for investing in a business. 3.1.2 … indicates whether the business can pay off its immediate or short- term debts. 3.1.3 The … indicates how efficient a business is. 3.1.4 … indicates whether the business is able to pay off all its debts. (4 x 1) (4) 3.2 The following information relates to Obbie Traders. The financial year ended on 30 April 2020. REQUIRED: 3.2.1 Refer to information 2 and 3. Calculate the missing amounts on the note denoted by (a) to (d). Show all workings. (14) 3.2.2 Complete the Statement of Financial Position (Balance sheet) on 30 April 2020. (22) 3.3 Calculate the following financial indicators for April 2020. (a) Calculate the current ratio. (3) (b) Calculate the acid test ratio. (4) (c) Do you think that the business will experience liquidity problems in the near future? Explain briefly, with reference to the ratios in (a) and (b). (4) 3.4 Should the business repay the long-term loan as soon as sufficient funds are available? Explain briefly why you think this is advisable or not. (4) Copyright reserved Please turn over Please turn over ### Page 7 (EC/NOVEMBER 2020) ACCOUNTING P1 7 INFORMATION: A. List of balances on 30 April 2020 (amongst others). Capital 800 000 Drawings 80 000 Land and Building 1 200 000 Vehicles 700 000 Equipment 430 000 Accumulated depreciation on vehicles (01/05/2019) 280 000 Accumulated depreciation on equipment (01/05/2019) 193 500 Fixed deposit: Boby Bank ? Trading stock 270 200 Debtors’ control 162 000 Creditors’ control 86 000 Bank (Favorable balance) 112 000 Petty cash 2 200 Loan: CAT Bank (9,5% p.a.) ? Accrued income 3 200 Prepaid expense 1 200 Income received in advance 5 800 Accrued expense 1 800 Adjustments and additional Information: 1. Loan: BTT Bank Interest on loan is capitalised. The loan statement from BTT Bank reflected the following: Balance on 1 May 2019 R423 200 Monthly instalments including interest R103 200 Balance on 30 April 2020 R350 400 The business plans to pay R40 000 during the next financial year. 2. FIXED ASSET NOTE Land and buildings Vehicles Equipment Carrying value (1 May 2019) (b) 336 500 Cost (a) 700 000 430 000 Accumulated depreciation 280 000 93 500 Movements Additions 600 000 145 000 Depreciation (c) (64 500) Carrying value (30 April 2020) 1 200 000 (d) 272 000 Cost 1 200 000 430 000 Accumulated depreciation Copyright reserved Please turn over ### Page 8 8 ACCOUNTING P1 (EC/NOVEMBER 2020) 3. Provide for depreciation as follows: • On vehicles at 20% p.a. on the diminished balance method • On equipment at 15% p.a. on cost price. NOTE: A new vehicle, costing R145 000, was purchased on 1 August 2019. This has not been recorded. 4. Financial indicators on 30 April 2020: 2019 2020 % Operating expenses on sales 36% 44% % Operating profit on sales 15% 17% % Net profit on sales 9% 11% Current ratio 0,9 : 1 ? Acid-test ratio 1,3 : 1 ? Solvency ratio 1,3 : 1 2,6 : 1 % Return on average owner’s equity 14% 12% Interest rate 14% 15% 55 Copyright reserved Please turn over Please turn over ### Page 9 (EC/NOVEMBER 2020) ACCOUNTING P1 9 QUESTION 4: CONCEPTS, WAGES JOURNAL AND INTERNAL CONTROL (22 marks; 18 minutes) 4.1 CONCEPTS Choose the correct word(s) from COLUMN A to match the description in COLUMN B. Write only the letters (A to E) in COLUMN B next to the question number (4.1.1–4.1.4) in the ANSWER BOOK, for example 4.1.5 F. COLUMN A COLUMN B 4.1.1 Matching concept A All items purchased are recorded at their cost price 4.1.2 Going concern concept B Financial information relevant to a reader of financial statements, must be separately disclosed 4.1.3 Historical cost concept C Financial information is recorded and reported in a conservative manner 4.1.4 Materiality concept D Financial information prepared on the understanding that a business will continue in the future E Income and expenses must be reflected against each other in the correct accounting period (4 x 1) (4) 4.2 Study the totals which appear in the Wages Journal of HMT Fruit and Vegetables for the week ended 27 November 2020. All employees are paid at the same rates, being R25 per hour for normal time and R35 per hour for overtime. Totals in the Wages Journal for week ended 27 November 2020 Total hours (normal time) 3 000 Total hours (overtime) ? Gross wages 110 000 Total deductions ? Medical aid deductions 7 000 Pension fund deductions 6 000 UIF deductions 3 000 PAYE 9 000 Medical aid contributions 14 000 UIF contributions 1 500 Copyright reserved Please turn over ### Page 10 10 ACCOUNTING P1 (EC/NOVEMBER 2020) REQUIRED: 4.2.1 How much cash must be withdrawn in order to pay the employees? (2) 4.2.2 Briefly explain the difference between deductions and contributions. (4) 4.2.3 Calculate the total number of overtime hours worked during the week. (5) 4.2.4 The medical aid details have remained the same for all four weeks during November 2020. Calculate the amount which must be paid to the medical fund by HMT Fruit and Vegetables at the end of November 2020. (3) 4.2.5 There are approximately 80 employees in total. Briefly explain the TWO roles played by the clock-card system in ensuring that HMT Fruit and Vegetables do not pay any employee for work which he has not done. (4) 22 TOTAL: 150 Copyright reserved Please turn over Please turn over ### Page 11 (EC/NOVEMBER 2020) ACCOUNTING P1 11 GRADE 10 ACCOUNTING: FINANCIAL INDICATOR FORMULA SHEET Gross profit x 100 Gross profit x 100 Net profit x 100 Sales 1 Cost of sales 1 Sales 1 Operating expenses x 100 Operating profit x 100 Sales 1 Sales 1 Current assets : Current liabilities (Current assets – Inventories) : Current liabilities (Trade and other receivables + Cash and cash equivalents) : Current liabilities Net profit x 100 Total assets : Total liabilities Owners’ equity 1 Copyright reserved Please turn over ## Related documents - [Gr10 Acc P1 (English) 2020 Exemplars Question Paper](https://www.hlayiso.com/library/gr10-acc-p1-english-2020-exemplars-question-paper/3c876c9f-693e-46de-b0df-00c49b32550f) — Accounting · QP · 2020 · Eng - [ACCOUNTING P1 GR10 MEMO NOV2020 English](https://www.hlayiso.com/library/accounting-p1-gr10-memo-nov2020-english/14ff8a28-8eea-4f95-b524-f229415222c1) — Accounting · Memo · 2020 · Eng - [Gr10 Acc P1 (English) 2020 Exemplars Answer Book](https://www.hlayiso.com/library/gr10-acc-p1-english-2020-exemplars-answer-book/376d43f9-6485-4bd6-940f-c32d5e30b3f8) — Accounting · Addendum · 2020 · Eng - [Gr10 Acc (English) 2020 Exemplars Possible Answers](https://www.hlayiso.com/library/gr10-acc-english-2020-exemplars-possible-answers/e070dec9-ca3c-4d3a-b4a1-3ac14e3cdf38) — Accounting · Memo · 2020 · Eng - [ACCOUNTING P2 AB GR10 NOV2020 English](https://www.hlayiso.com/library/accounting-p2-ab-gr10-nov2020-english/6aeef74a-b2a9-4d95-a3cb-7b869ec6caeb) — Accounting · QP · 2020 · Eng - [ACCOUNTING P2 MEMO GR10 NOV2020 English](https://www.hlayiso.com/library/accounting-p2-memo-gr10-nov2020-english/f799f4ba-a18f-43de-be70-3d12a54cca7f) — Accounting · Memo · 2020 · Eng ## More from Grade 10 Accounting - [LP Accounting Grade 10 March 2026 QP and Memo](https://www.hlayiso.com/library/grade-10-accounting-2026-limpopo-march-test-question-paper-and-memorandum/08ddf17c-cec8-4317-8aef-1c25d7f47080) — QP + Memo · 2026 - [Grade 10 Accounting P1 November 2026 Mock 2 Answer Book](https://www.hlayiso.com/library/grade-10-accounting-2026-november-mock-exam-2-answer-book-paper-1/3312807c-6e7e-4245-94b1-2ab99c2d85b9) — Addendum · 2026 · Eng - [Grade 10 Accounting P2 November 2026 Mock 2 Answer Book](https://www.hlayiso.com/library/grade-10-accounting-2026-november-mock-exam-2-answer-book-paper-2/5e4e6d3c-6636-4866-91a5-260e70a7da2d) — Addendum · 2026 · Eng - [Grade 10 Accounting P2 November 2026 Mock 2 Memo](https://www.hlayiso.com/library/grade-10-accounting-2026-november-mock-exam-2-memorandum-paper-2/3383a451-2987-495f-a231-c33f8e26ed72) — Memo · 2026 · Eng - [LP Accounting Grade 10 June 2025 QP and Memo](https://www.hlayiso.com/library/lp-accounting-grade-10-june-2025-qp-and-memo/e7fdbb08-60cb-461e-b58e-c89720c8a1fa) — QP + Memo · 2025 - [LP Accounting Grade 10 March 2025 QP and Memo](https://www.hlayiso.com/library/lp-accounting-grade-10-march-2025-qp-and-memo/04cd29d1-6a95-4547-9cc2-b15b16b78b36) — QP + Memo · 2025 ## Collection - [Grade 10 past papers](https://www.hlayiso.com/grade-10/past-papers) --- Hlayiso: free CAPS and IEB past papers, memos, notes and study guides for South African learners. 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