# Accounting Grade 11 P1 Eastern Cape November 2023 Memo (Eng) > Grade 11 Accounting Paper 1 memorandum from the Eastern Cape November Exam 2023 (English), 8 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/accounting-p1-gr11-memo-november-2023-english-watermark-1/49899c38-504c-42fb-972e-2181fa910731 - Updated: 2026-09-27 - Subject: Accounting - Grade: Grade 11 - Language: English - Document type: Memorandum - Year: 2023 - Exam period: Eastern Cape November Exam - Paper: 1 - Curriculum: CAPS - Pages: 8 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 11](https://www.hlayiso.com/library/grade-11) › [Accounting](https://www.hlayiso.com/library/grade-11/accounting) › [Accounting Grade 11 P1 Eastern Cape November 2023 Memo (Eng)](https://www.hlayiso.com/library/accounting-p1-gr11-memo-november-2023-english-watermark-1/49899c38-504c-42fb-972e-2181fa910731) ## About this document Accounting · Grade 11 · Eastern Cape November Exam · 2023 · English. Memorandum, 8 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 GR11 QP NOV 2023 English watermark](https://www.hlayiso.com/library/accounting-p1-gr11-qp-nov-2023-english-watermark/114f97da-f00d-48e5-b867-cc2fbc9acf2c) — QP · 2023 · Eng - [ACCOUNTING P1 GR11 QP NOV 2023 English](https://www.hlayiso.com/library/accounting-p1-gr11-qp-nov-2023-english/4a9ed09a-c470-41c0-8d03-0f4bd2f3f6c6) — QP · 2023 · Eng ## Document text Text extracted from the PDF. Layout, diagrams and tables may not survive extraction. ### Page 1 NATIONAL SENIOR CERTIFICATE GRADE 11 NOVEMBER 2023 ACCOUNTING P1 MARKING GUIDELINE MARKS: 150 MARKING PRINCIPLES: 1. Unless otherwise indicated in the marking guideline, penalties for foreign items are applied only if the candidate is not losing marks elsewhere in the question for that item (no penalty for misplaced items). No double penalty applied. 2. Penalties for placement or poor presentation (e.g. details) are applied only if the candidate is earning marks on the figures for that item. 3. Unless otherwise stated, give full marks for correct answer. If the answer is incorrect, mark workings. 4. If a pre-adjustment figure is shown as a final figure, allocate the part-mark as a working mark for that figure (not the method mark for the answer). NOTE: if figures are stipulated in marking guidelines for components of workings, these do not carry the method mark for final answer as well. 5. Unless otherwise indicated, the positive or negative effect of any figure must be considered to award the mark. If no + or – sign or bracket is provided, assume that the figure is positive. 6. Where indicated, part-marks may be awarded to differentiate between differing qualities of answers from candidates. 7. If candidates provide more than the required number of responses, inspect all responses to give benefit to the candidate. Penalties may be applied for foreign entries if candidates earn full marks on a question (max -2 per question). 8. This marking guideline is not for public distribution; as certain items might imply incorrect treatment. The adjustments made are due to nuances in certain questions. 9. Where penalties are applied, the marks for that section of the question cannot be a final negative. 10. Where method marks are awarded for operation, the marker must inspect the reasonableness of the answer. 11. 'Operation' means check operation. 'one part correct' means operation and one part correct. NOTE: Check operation must be +, –, x or ÷ as per candidate’s calculation (if valid) or per marking guidelines. 12. In calculations, do not award marks for workings if numerator and denominator are swapped – this also applies to ratios. 13. In awarding method marks, ensure that candidates do not get full marks for any item that is incorrect at least in part. Indicate with a  14. Be aware of candidates who provide valid alternatives beyond the marking guideline. Note that one comment could contain different aspects. 15. Codes: f = foreign item; p = placement/presentation. This marking guideline consists of 8 pages. ### Page 2 2 ACCOUNTING P1 (MARKING GUIDELINE) (EC/NOVEMBER 2023) QUESTION 1 1.1 No. A O L e.g. + 0 + 1.1.1 - - 0 1.1.2 + + 0 + 1.1.3 0 0 - 1.1.4 + 0 + 8 If no entry in a column, assume 0; -1 per line for foreign entry. 1.2 SANDI BROTHERS WORKINGS ANSWER (i) Cost price of buildings on 1 March 2023 6 150 000 – 500 000 5 650 000  (ii) Carrying value of the vehicle sold 6 (300 000 x 15% x ) 12 300 000  – (240 000  + 22 500 ) 262 500 three marks 37 500  one part correct (iii) Total depreciation on equipment 4 360 000 x 10% (270 000 x 10% x ) 12 36 000  + 9 000  45 000  one part correct 12 TOTAL MARKS 20 Copyright reserved Please turn over ### Page 3 (EC/NOVEMBER 2023) ACCOUNTING P1 (MARKING GUIDELINE) 3 QUESTION 2 2.1 2.1.1 Matching  2.1.2 Business entity  2.1.3 Materiality  2.1.4 Going concern  4 Copyright reserved Please turn over ### Page 4 4 ACCOUNTING P1 (MARKING GUIDELINE) (EC/NOVEMBER 2023) 2.2 Statement of Comprehensive Income for the year ended 28 February 2023 Sales 5 701 320 + 5 250  5 706 570 * Cost of sales 3 563 350 + 3 500 (3 566 850 )  Gross profit Sales – CoS 2 139 720  6 Other income operation 91 630  Discount received 11 280 Bad debts recovered 1 890 + 810 2 700 ✓ Provision for bad debts-adjustment 10 150 – 8 150 2 000 ✓ Rent income 82 100  – 6 450  75 650 * Gross operating income GP + OI 2 231 350  10 Operating expenses GOI – OP (1 664 950)  Discount allowed 3 360 Depreciation 298 350 Trading stock deficit 242 650  – 17 400 ✓ – 3 500 ✓ – 214 500 ✓ 7 250  Stock loss due to theft (17 400 x 20%) 3 480  Consumable stores 35 350 ✓ Bad debts 8 990 + 810 9 800  Insurance 43 150  – 3 300  39 850 * 24 500 x 100/70 Salaries and wages 896 250  + 35 000  + 3 850  935 100 * Sundry expenses balancing figure 332 410  21 Operating profit 566 400 Interest income 53 250 + 4 250 57 500  Profit before interest expense OP + Int inc 623 900  4 Interest expense PbIE – NP (145 000)  Net profit for the year 478 900 41 * TOTAL MARKS 45 Copyright reserved Please turn over ### Page 5 (EC/NOVEMBER 2023) ACCOUNTING P1 (MARKING GUIDELINE) 5 QUESTION 3 3.1 Calculate: The interest on capital of Partner Hockey 1 680 000 x 12% x ½ = 100 800 ✓✓ 1 480 000 x 12% x ½ = 88 800 ✓✓ or 189 600 four marks OR 1 480 000 x 12% = 177 600 two marks 200 000 x 12% x ½ = 12 000 two marks 4 3.2 CURRENT ACCOUNTS HOCKEY TENNIS Salaries 480 000 – 30 000 480 000  450 000 Bonuses 40 000 x 80%  32 000 Interest on capital see 3.1  189 600 134 400 Primary distribution of profit operation * 701 600 * 584 400 Final distribution of profit operation  102 060  102 060 803 660 686 460 Drawings for the year 623 150 – 1 800  (621 350) (563 250) Retained income for the year profit operation  182 310  123 210 Balance at the beginning of the year ✓ (32 670) ✓ 58 030 Balance at the end of the year profit operation  149 640  181 240 17 Copyright reserved Please turn over ### Page 6 6 ACCOUNTING P1 (MARKING GUIDELINE) (EC/NOVEMBER 2023) 3.3 STATEMENT OF FINANCIAL POSITION ON 28 FEBRUARY 2023 ASSETS NON-CURRENT ASSETS TA – CA 4 036 080  Fixed assets balancing figure 3 570 480  Financial assets 465 600 ✓ 582 000 – 116 400 4 CURRENT ASSETS operation 677 990  Inventories 284 600 * 286 400  – 1 800  Trade and other receivables 256 790 * 204 600 - 10 230  + 62 420  Cash and cash equivalents 136 600 ✓ 20 200 + 116 400 see financial assets TOTAL ASSETS see TE and L 4 714 070  10 EQUITY AND LIABILITIES OWNERS’ EQUITY operation 3 130 880  Capital 2 800 000 Current accounts (149 640 + 181 240) see 3.2 330 880 ✓ 3 NON-CURRENT LIABILITIES 518 330 Mortgage loan 710 500 + 78 200 – 178 900 609 800 x 15% 609 800  – 91 470  518 330 * 5 CURRENT LIABILITIES operation 1 064 860  Trade and other payables 763 860 + 75 330  + 32 700  871 890 * Current portion of loan see loan above 91 470  7 Bank overdraft 101 500  TOTAL EQUITY AND LIABILITIES SHE + NCL + CL 4 714 070  29 -1 F foreign items max. -2; misplaced items → award marks for workings only *one part correct -1 P presentation (max. -2 if no appropriate details) TOTAL MARKS 50 Copyright reserved Please turn over ### Page 7 (EC/NOVEMBER 2023) ACCOUNTING P1 (MARKING GUIDELINE) 7 QUESTION 4 4.1 Calculate the following financial indicators on 28 February 2023. % Operating expenses on sales WORKINGS ANSWER 845 100 100 x 25% ✓ 3 380 400 1 one part correct % sign not necessary NOTE: * 100 is not one part correct Do not award marks if numerator and denominator are swapped 2 Acid-test ratio WORKINGS ANSWER 557 800- 231 800 OR 183 400+142 600 1,2 : 1  326 000  : 278 900  one part correct; in the form x : 1 4 Debt-equity ratio WORKINGS ANSWER 1 300 200  : 2 176 210 ✓ 0,6 : 1  one part correct; in the form x : 1 3 % Return on average partners’ (owners’) equity WORKINGS ANSWER 591 570 100 28,7%  one part correct ½ ✓ (2 176 210 ✓ + 1 945 920 ✓) x 1 % sign not necessary 4 122 130 two marks 2 061 065 three marks NOTE: * 100 is not one part correct Do not award marks if numerator and denominator are swapped 5 Copyright reserved Please turn over ### Page 8 8 ACCOUNTING P1 (MARKING GUIDELINE) (EC/NOVEMBER 2023) 4.2 Explain whether the business is managing its expenses effectively. Identify TWO financial indicators (with figures) to support your explanation. Any TWO financial Indicators ✓ ✓ figures ✓ ✓ explanation ✓✓ % operating expenses on sales decreased/improved (from 29%) to 25% see 4.1 % net profit on sales increased/improved (from 13%) to 17,5% The business is managing expenses well. A decrease in operating expenses and an improvement in sales contributed to a significant increase in net profit. 6 4.3 Partner Yozo is concerned about the liquidity position. Explain whether he is justified or not. Quote TWO financial indicators, with figures. Any TWO financial Indicators ✓ ✓ figures ✓ ✓ comment ✓✓ Current ratio increased (from 1,6 : 1) to 2 : 1 Acid-test ratio increased/improved (from 0,7 : 1) to 1,2 : 1 see 4.1 Debtors’ collection period decreased/improved (from 36 days) to 29 days He should not be concerned because the business has enough current or liquid assets to meet short term debts. Collection of debtors have also improved – this is an indication that cash is coming in at a faster rate. 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. Financial indicator  Figures with trends  Debt-equity ratio decreased/improved (from 0,7 : 1) to 0,6 : 1 Explanation:  Although the debt-equity ratio improved, the company is still high risk / rely too much on borrowed capital 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. Financial Indicator ✓ Figures with trends ✓ % Return on average partners’ (owners’) equity increased/improved (from 17.8%) to 28,7% see 4.1 Explanation: ✓✓ (comparison with interest on fixed deposit) ✓ The return is higher than alternative investments (8%) 5 TOTAL MARKS 35 TOTAL: 150 Copyright reserved Please turn over ## Related documents - [ACCOUNTING P2 GR11 QP NOV2023 English](https://www.hlayiso.com/library/accounting-p2-gr11-qp-nov2023-english/f476ab04-a9d8-48f8-8d61-d147a95b251f) — Accounting · QP · 2023 · Eng - [Grade 11 ACC P1 (English) June 2023 Answerbook](https://www.hlayiso.com/library/grade-11-acc-p1-english-june-2023-answerbook-1/888a682a-0a7a-4301-8989-c137240cf50d) — Accounting · Addendum · 2023 · Eng - [ACCOUNTING P1 GR11 MEMO NOVEMBER 2022 English](https://www.hlayiso.com/library/accounting-p1-gr11-memo-november-2022-english/88d6eef7-a681-4de5-9666-b667a0f71a40) — Accounting · Memo · 2022 · Eng - [Gr11 Acc P1 (English) 2020 Exemplars Possible Answers](https://www.hlayiso.com/library/gr11-acc-p1-english-2020-exemplars-possible-answers/fd190775-e227-4a4c-b033-269d676662ec) — Accounting · Memo · 2020 · Eng - [Limpopo Accounting Grade 11 June 2023 P1 and Memo](https://www.hlayiso.com/library/limpopo-accounting-grade-11-june-2023-p1-and-memo/53978f95-67b2-4373-aaf4-73610e334778) — Accounting · Memo · 2023 - [Grade 11 ACC P2 (English) June 2023 Answerbook](https://www.hlayiso.com/library/grade-11-acc-p2-english-june-2023-answerbook-1/c240ab3d-7672-41d9-832e-83884ae4b9d9) — Accounting · Addendum · 2023 · Eng ## More from Grade 11 Accounting - [GR11 Accounting Practice exam November Paper 1](https://www.hlayiso.com/library/gr11-accounting-practice-exam-november-paper-1/a786fffb-f00d-472f-a62b-80f038063c5b) — Guide - [Grade 11 Accounting P2 November 2026 Mock](https://www.hlayiso.com/library/grade-11-accounting-2026-november-mock-exam-question-paper-paper-2/23b01a3d-4c7f-4c08-87ca-2f521d5b13fd) — QP · 2026 · Eng - [ACCOUNTING ANS BOOK GR11 NOV 2025 ENG watermark](https://www.hlayiso.com/library/accounting-ans-book-gr11-nov-2025-eng-watermark/23071d73-1633-476d-9eea-a35d45360d61) — QP · 2025 · Eng - [ACCOUNTING P2 QP GR11 NOV 2025 AFR watermark](https://www.hlayiso.com/library/accounting-p2-qp-gr11-nov-2025-afr-watermark/c1345715-0e44-4f64-9844-4e1a4ca18c22) — QP · 2025 · Afr - [LP Accounting Grade 11 March 2025 QP and Memo](https://www.hlayiso.com/library/lp-accounting-grade-11-march-2025-qp-and-memo/e029a6c5-e494-4ee4-85f6-bf55d1d8442b) — QP + Memo · 2025 - [Gr 11 Accounting P1 (English) June 2024 Question Paper](https://www.hlayiso.com/library/gr-11-accounting-p1-english-june-2024-question-paper/6f46b4c9-08af-40d5-bbfc-8e5e70b68734) — QP · 2024 · Eng ## Collection - [Grade 11 past papers](https://www.hlayiso.com/grade-11/past-papers) --- Hlayiso: free CAPS and IEB past papers, memos, notes and study guides for South African learners. 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