Accounting Grade 11 P1 Eastern Cape November 2023 Addendum

Name: NATIONAL SENIOR CERTIFICATE GRADE 11 NOVEMBER 2023 ACCOUNTING P1 ANSWER BOOK MARKS MODERATED QUESTION MAX. MARKS OBTAINED MARKS 1 20 2 45 3 50 4 35 150 This answer book consists of 8 pages.

2 ACCOUNTING P1 (ANSWER BOOK) (EC/NOVEMBER 2023) QUESTION 1 1.1 No. A O L e.g. + 0 + 1.1.1 1.1.2 1.1.3 1.1.4 8 1.2 SANDI BROTHERS WORKINGS ANSWER (i) Cost price of buildings on 1 March 2023 (ii) Carrying value of the vehicle sold (iii) Total depreciation on equipment 12 TOTAL MARKS 20 Copyright reserved Please turn over

(EC/NOVEMBER 2023) ACCOUNTING P1 (ANSWER BOOK) 3 QUESTION 2 2.1 2.1.1 2.1.2 2.1.3 2.1.4 4 Copyright reserved Please turn over

4 ACCOUNTING P1 (ANSWER BOOK) (EC/NOVEMBER 2023) 2.2 Statement of Comprehensive Income for the year ended 28 February 2023 Sales Cost of sales Gross profit Other income Discount received 11 280 Gross operating income Operating expenses Discount allowed 3 360 Depreciation 298 350 Sundry expenses Operating profit 566 400 Profit before interest expense Net profit for the year 478 900 41 * TOTAL MARKS 45 Copyright reserved Please turn over

(EC/NOVEMBER 2023) ACCOUNTING P1 (ANSWER BOOK) 5 QUESTION 3 3.1 Calculate: The interest on capital of Partner Hockey 4 3.2 CURRENT ACCOUNTS HOCKEY TENNIS Salaries 480 000 Bonuses Interest on capital 134 400 Primary distribution of profit Final distribution of profit Drawings for the year (563 250) Retained income for the year Balance at the beginning of the year Balance at the end of the year 17 Copyright reserved Please turn over

6 ACCOUNTING P1 (ANSWER BOOK) (EC/NOVEMBER 2023) 3.3 STATEMENT OF FINANCIAL POSITION ON 28 FEBRUARY 2023 ASSETS NON-CURRENT ASSETS Fixed assets Financial assets CURRENT ASSETS Inventories Trade and other receivables Cash and cash equivalents TOTAL ASSETS EQUITY AND LIABILITIES OWNERS’ EQUITY Capital 2 800 000 Current accounts NON-CURRENT LIABILITIES Mortgage loan CURRENT LIABILITIES Trade and other payables TOTAL EQUITY AND LIABILITIES 29 TOTAL MARKS 50 Copyright reserved Please turn over

(EC/NOVEMBER 2023) ACCOUNTING P1 (ANSWER BOOK) 7 QUESTION 4 4.1 Calculate the following financial indicators on 28 February 2023. % Operating expenses on sales WORKINGS ANSWER 2 Acid-test ratio WORKINGS ANSWER 4 Debt-equity ratio WORKINGS ANSWER 3 % Return on average partners’ (owners’) equity WORKINGS ANSWER 5 Copyright reserved Please turn over

8 ACCOUNTING P1 (ANSWER BOOK) (EC/NOVEMBER 2023) 4.2 Explain whether the business is managing its expenses effectively. Identify TWO financial indicators (with figures) to support your explanation. 6 4.3 Partner Yozo is concerned about the liquidity position. Explain whether he is justified or not. Quote TWO financial indicators, with figures. 6 4.4 The partners have increased the monthly instalments on the loan. Explain the effect of this on the financial risk of the business. Quote ONE financial indicator with figures to support your explanation. 4 4.5 Explain whether the partners should be happy with the % return earned by their investment in this partnership. Quote ONE financial indicator, with figures. 5 TOTAL MARKS 35 TOTAL: 150 Copyright reserved Please turn over