Accounting Grade 11 P1 2020 Addendum (Eng)

ACCOUNTING (EC/SEPTEMBER 2019) Name: NATIONAL SENIOR CERTIFICATE GRADE 11 NOVEMBER 2020 ACCOUNTING P1 ANSWER BOOK (EXEMPLAR) MAXIMUM MODERATED QUESTION MARKS OBTAINED MARKS MARKS 1 30 2 45 3 45 4 30 TOTAL 150 This answer book consists of 8 pages.

2 ACCOUNTING P1 (ANSWER BOOK) (EC/NOVEMBER 2020) QUESTION 1: FIXED ASSETS 1.1 1.1.1 1.1.2 1.1.3 3 1.2.1 Do a calculation to proof that the diminished balance-method of depreciation is used for vehicles. WORKINGS ANSWER 4 1.2.2 Calculate the missing figures denoted by (i) to (iv). WORKINGS ANSWER (i) (ii) (iii) (iv) 11 Copyright reserved Please turn over

(EC/NOVEMBER 2020) ACCOUNTING P1 (ANSWER BOOK) 3 Indicate if a profit or loss was made on the disposal of the vehicle. Do a calculation to support your answer. WORKINGS ANSWER 6 1.2.3 Calculate the percentage increase in the value of the property as at 29 February 2020. WORKINGS ANSWER 4 Explain why would you not agree with this partner. Provide ONE point with reference to a GAAP principle. 2 TOTAL MARKS 30 Copyright reserved Please turn over

4 ACCOUNTING P1 (ANSWER BOOK) (EC/NOVEMBER 2020) QUESTION 2: GAAP AND INCOME STATEMENT 2.1 2.1.1 2.1.2 2.1.3 3 2.2 TERA PRIVATE HOSPITAAL INCOME STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2020 Sales 1 290 450 Cost of sales 1 032 350 Gross profit Other operating income Gross operating income Operating expenses Sundry Expenses 247 760 Operating profit Profit before interest expense Net profit for the year 42 TOTAL MARKS 45 Copyright reserved Please turn over

(EC/NOVEMBER 2020) ACCOUNTING P1 (ANSWER BOOK) 5 QUESTION 3: BALANCE SHEET AND NOTES 3.1 CURRENT ACCOUNT CORNE VIDIO Balance at beginning of the year Net profit as per Income statement Interest on capital 45 000 Salaries 120 000 Partners Bonus Primary distribution of profit Final distribution of profits Drawings for the year (172 500) (140 300) Balance at the end of the year 17 TRADE AND OTHER RECEIVABLES 6 *one part correct Copyright reserved Please turn over

6 ACCOUNTING P1 (ANSWER BOOK) (EC/NOVEMBER 2020) 3.2 BALANCE SHEET ON 29 FEBRUARY 2020 ASSETS NON-CURRENT ASSETS  Fixed assets CURRENT ASSETS Inventories TOTAL ASSETS EQUITY AND LIABILITIES PARTNERS’ EQUITY    NON-CURRENT LIABILITIES   CURRENT LIABILITIES  Trade creditors 295 500     TOTAL EQUITY AND LIABILITIES  22 TOTAL MARKS 45 Copyright reserved Please turn over

(EC/NOVEMBER 2020) ACCOUNTING P1 (ANSWER BOOK) 7 QUESTION 4: FINANCIAL INDICATORS AND INTERPRETATION OF FINANCIAL INFORMATION 4.1 Calculate the following financial indicators as at 30 June 2020: 4.1.1 Acid-test ratio WORKINGS ANSWER 4 4.1.2 Debt-equity ratio WORKINGS ANSWER 3 4.1.3 Return earned by Kagiso. WORKINGS ANSWER 6 4.2.1 Comment on the liquidity of the business and explain in which year the working capital was managed more efficiently. 6 Copyright reserved Please turn over

8 ACCOUNTING P1 (ANSWER BOOK) (EC/NOVEMBER 2020) 4.2.2 The partners decided to increase the loan during the financial year. Comment on this decision with reference to the degree of financial risk. 4 4.2.3 Comment on Kagiso’s return on his investment in the partnership. Provide ONE reason why he should be happy with his return. Provide ONE reason why he should be concerned about his return on his investment and give an explanation. REASON EXPLANATION 7 TOTAL MARKS 30 TOTAL: 150 Copyright reserved Please turn over