# Accounting Grade 11 P1 National Exemplar November 2020 QP > Grade 11 Accounting Paper 1 question paper from the National Exemplar November Exam 2020 (English), 12 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/accounting-p1-gr11-qp-november-2020-english-docx/36f73aae-b2be-494f-b290-718a2c8f5958 - Updated: 2026-09-27 - Subject: Accounting - Grade: Grade 11 - Language: English - Document type: Question paper - Year: 2020 - Exam period: National Exemplar November Exam - Paper: 1 - Curriculum: CAPS - Pages: 12 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 National Exemplar November 2020 QP](https://www.hlayiso.com/library/accounting-p1-gr11-qp-november-2020-english-docx/36f73aae-b2be-494f-b290-718a2c8f5958) ## About this document Accounting · Grade 11 · National Exemplar November Exam · 2020 · English. Question paper, 12 pages. Read online or download the PDF. Read it free online on the page above; download the PDF from there. ## Document text Text extracted from the PDF. Layout, diagrams and tables may not survive extraction. ### Page 1 NATIONAL SENIOR CERTIFICATE GRADE 11 NOVEMBER 2020 ACCOUNTING P1 FINANCIAL REPORTING AND EVALUATION (EXEMPLAR) MARKS: 150 TIME: 2 hours This question paper consists of 12 pages, a formula sheet and an 8-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 to answer ALL the questions. 3. Show ALL workings to earn part-marks. 4. You may use a non-programmable calculator. 5. You may use a dark pencil or blue/black ink to answer the questions. 6. Where applicable, show ALL calculations to ONE decimal point. 7. A FORMULA SHEET for Financial Indicators is attached to this question paper. You may use it if necessary. 8. Write neatly and legibly. 9. A breakdown of the question paper is provided. You must attempt to comply with the suggested time allocation for each question. Try NOT to deviate from it. QUESTION TOPIC MARKS TIME (MINUTES) 1 Fixed assets 30 25 2 GAAP and Income statement 45 35 3 Balance sheet and Notes 45 35 4 Financial indicators and Interpretation of 30 25 financial information TOTAL: 150 120 Copyright reserved Please turn over ### Page 3 (EC/NOVEMBER 2020) ACCOUNTING P1 3 KEEP THIS PAGE BLANK. Copyright reserved Please turn over ### Page 4 4 ACCOUNTING P1 (EC/NOVEMBER 2020) QUESTION 1: FIXED ASSETS (30 marks; 25 minutes) 1.1 Indicate whether the following statements are TRUE or FALSE. Write only ‘true’ or ‘false’ next to the question numbers (1.1.1–1.1.3) in the ANSWER BOOK. 1.1.1 The historical-cost principle applies only to vehicles and equipment. 1.1.2 Land and buildings purchased will be recorded as a disposal in the fixed asset-note. 1.1.3 Depreciation refers to the decrease in the value of an asset. (3 x 1) (3) 1.2 SA CARPENTERS The following information for the year ended on 29 February 2020 relates to SA Carpenters, a partnership between Surkaan and Anele. REQUIRED: 1.2.1 Refer to information A: Do a calculation to prove that the diminished balance-method of depreciation is used for vehicles. (4) 1.2.2 Refer to information D:  Calculate the missing figures denoted by (i) to (iv). (11)  Indicate if a profit or loss was made on the disposal of the vehicle. Do a calculation to support your answer. (6) 1.2.3 Refer to Information E:  Calculate the percentage increase in the value of the property, as at 29 February 2020. (4)  Explain why would you not agree with this partner. Provide ONE point with reference to a GAAP principle. (2) Copyright reserved Please turn over ### Page 5 (EC/NOVEMBER 2020) ACCOUNTING P1 5 INFORMATION: A. Fixed Asset Register (Motor vehicles): Units: 2 Make: Toyota Hilux 2.4 (2017) Date of purchase: 30 June 2017 Cost: R780 000 Depreciation: 10% p.a. on diminishing balance-method Date Depreciation Accumulated Carrying depreciation Value value 28 Feb 2018 52 000 52 000 ? 28 Feb 2019 72 800 124 800 ? B. Extension to buildings were made on 1 September 2019. C. One of the vehicles was sold at R310 000 on 30 November 2019. D. Fixed Asset Note: LAND AND VEHICLES EQUIPMENT BUILDINGS Carrying value at the (i) 40 000 beginning Cost (ii) 780 000 300 000 Accumulated ? (260 000) depreciation Movements Additions at cost 750 000 250 000 Disposal at Carrying ? value Depreciation for the (iii) (60 500) year Carrying value at the 3 000 000 (iv) end E. The land and buildings were bought three years ago. The market value of the property as at 29 February 2020 is estimated at R3 450 000. One of the partners (Surkaan) is of the opinion that this amount should be reflected in the books of the business. 30 Copyright reserved Please turn over ### Page 6 6 ACCOUNTING P1 (EC/NOVEMBER 2020) QUESTION 2: GAAP AND INCOME STATEMENT (45 marks; 35 minutes) 2.1 GAAP principles are provided as options for each of the following statements. Choose the GAAP principle and write only the letter (A–D) next to the question numbers (2.1.1–2.1.3) in the ANSWER BOOK, for example 2.1.4 E. A Materiality B Matching C Going concern D Business entity 2.1.1 Significant information must be included in financial statements. 2.1.2 The financial activities of a business are kept separately from those of the owner. 2.1.3 Income and expenses are recognised and recorded in the current financial period. (3 x 1) (3) 2.2 TERA PRIVATE HOSPITAL A group of doctors owns this hospital. The information relates to the financial year ended 30 September 2020. REQUIRED: Complete the Income Statement for the year ended 30 September 2020. (42) INFORMATION: A. Extract from Pre-adjustment TRIAL balance on 30 September 2020 Fixed deposit: Buffalo Bank @ 8% p.a. 370 000 Loan (Jankee Bank) 625 000 Trading stock 410 150 Debtors control 277 500 Provision for bad debts 12 980 Sales 1 290 450 Cost of Sales 1 032 350 Debtors allowance 18 200 Fee income 1 584 000 Rent Income 121 650 Salaries and wages 367 500 Consumable stores 72 790 Advertising 12 120 Sundry Expense 247 760 Employer’s Contribution 33 210 Interest on loan 11 500 Copyright reserved Please turn over ### Page 7 (EC/NOVEMBER 2020) ACCOUNTING P1 7 B. ADDITIONAL INFORMATION AND ADJUSMENTS: (a) Goods, which were due to be obsolete on 30 October 2020, were sold for cash, R18 900, which is 10% below cost. This transaction was not recorded. (b) Provision for bad debts will decrease by R150. (c) Stock counts on 30 September 2020 revealed the following on hand:  Trading stock: R389 230  Consumable stores: R9 950 (d) Rent was received up until November 2020. Monthly rent was increased by R950 on 1 July 2020. (e) Advertising is exceeded by a one-month premium of R3 120. (f) One employee was left out from the salaries journal for September 2020. The details are as follows: Employer’s contributions Deductions Pension fund UIF Medical Pension UIF PAYE Medical Net aid fund aid Salary R610 R90 R390 R670 R120 R880 R430 R8 400 (g) Consultation fees for 12 patients have not been recorded yet. The fee is R660 per patient. (h) Depreciation for the year amounted to R25 000. (i) Interest on fixed deposit has not been recorded yet. 45 Copyright reserved Please turn over ### Page 8 8 ACCOUNTING P1 (EC/NOVEMBER 2020) QUESTION 3: BALANCE SHEET AND NOTES (45 marks, 35 minutes) COVID TRADERS The information provided is for the year ended on 29 February 2020. REQUIRED: 3.1 Complete the following notes to the Balance Sheet:  Current accounts (17)  Trade and other receivables (6) 3.2 Complete the Balance Sheet as at 29 February 2020. (22) INFORMATION: A. The following were extracted from the records on 29 February 2020: Capital: Corne R300 000 Capital: Vidio 400 000 Current account: Corne (1 March 2019) Cr 12 100 Current account: Vidio (1 March 2019) Dr 10 200 Drawing: Corne 172 500 Drawing: Vidio 140 300 Fixed assets at cost 1 920 000 Accumulated depreciation ? Fixed deposit: FCC Bank 310 000 Trading stock ? Debtors control 202 330 Bank (unfavourable balance) 14 400 Cash float 6 510 Creditors control 295 500 Provision for bad debts 2 450 Loan ? B. R50 000 of the investment will mature on 30 September 2020. C. A credit note for R2 400 (cost R1 500), issued for goods returned was not posted to the debtors control account. D. A debtor with an outstanding balance of R11 650 was declared insolvent. The estate has paid 80% of the amount which was recorded. The balance must still be written off as bad debts. E. Provision for bad debts must be adjusted by R250 as an expense. Copyright reserved Please turn over ### Page 9 (EC/NOVEMBER 2020) ACCOUNTING P1 9 F. Loan Statement from Fani Bank Balance on 1 March 2019 R900 000 Repayment including interest 164 500 Interest capitalised 90 000 The partners decided to pay R70 500 on the capital in the next financial year. G. Net profit for the year after adjustments and additional information, R378 300. H. The partnership agreement stipulates the following:  Interest on capital: The partners are entitled to interest at 15% per annum. Vidio has decreased his capital by R100 000 on 1 June 2019. This was recorded.  Partners’ salaries: Vidio earn R120 000 per year and Corne earns 10% less than Vidio.  Bonus to partners: Vidio is entitled to a bonus equal to a month’s salary.  Profits are shared in favour of Vidio in the ratio 3 : 2. I. The current ratio at the end of the financial year is 1,5 : 1. J. The following are balancing figures:  Fixed assets  Inventories 45 Copyright reserved Please turn over ### Page 10 10 ACCOUNTING P1 (EC/NOVEMBER 2020) QUESTION 4 FINANCIAL INDICATORS AND INTERPRETATION (30 marks, 25 minutes) OF FINANCIAL INFORMATION 4.1 Calculate the following financial indicators as at 30 June 2020: 4.1.1 Acid-test ratio (4) 4.1.2 Debt-equity ratio (3) 4.1.3 Return earned by Kagiso (6) 4.2 Provide figures, financial indicators or calculations in EACH case below to support your comments and explanations. REQUIRED: 4.2.1 Comment on the liquidity of the business and explain in which year the working capital was managed more efficiently. (6) 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. (3)  Provide ONE reasons why he should be concerned about his return on his investment and give an explanation. (4) INFORMATION: A. Appropriation Account 2020 Interest on capital: 2020 June 30 Kagiso 47 250 June 30 Profit and loss 502 200 Interest on capital: Radaba 31 500 Salary: Kagiso 168 750 Salary: Radaba 205 200 Bonus to Radaba 17 100 Current account: Kagiso 16 200 Current account: Radaba 16 200 Copyright reserved Please turn over ### Page 11 (EC/NOVEMBER 2020) ACCOUNTING P1 11 B. Balances at the end of June 2020. 2020 2019 Owners equity 1 425 800 1 385 900 Capital: Kagiso 750 000 650 000 Capital: Radaba 675 000 700 000 Current account: Kagiso Dr 15 500 10 750 Current account: Radaba 16 300 25 150 Current assets 294 650 530 250 Trade and other receivables 159 750 307 350 Cash and cash equivalents 41 150 32 650 Inventories 93 750 190 250 Non-current liabilities: Loan 450 000 250 000 Current liabilities 190 500 219 000 C. Financial Indicators as at 30 June 2020. 2020 2019 Current ratio 1,5 : 1 2,4 : 1 Acid test ratio ? 1,6 : 1 Debt equity ratio ? 0,2 : 1 Return earned by Kagiso ? 36% Return earned by Radaba 38% 39% Return on partner’s equity 36% 38% Interest rate on alternative investments 8% 8% 30 TOTAL: 150 Copyright reserved Please turn over ### Page 12 12 ACCOUNTING P1 (EC/NOVEMBER 2020) GRADE 11 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 Total earnings by partner x 100 Net profit x 100 Partner’s average equity 1 Average owner’ equity 1 Current assets : Current liabilities (Current assets – Inventories) : Current liabilities (Trade and other receivables + Cash and cash equivalents) : Current liabilities Average debtors x 365 Average creditors x 365 Credit sales 1 Credit purchases 1 Average inventories x 365 or 12 Cost of sales x 365 Cost of sales 1 Average inventories 1 Non-current liabilities : Owners’ equity Total assets: Total liabilities Copyright reserved Please turn over ## Related documents - [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 - [ACCOUNTING P1 GR11 QP NOV 2023 English](https://www.hlayiso.com/library/accounting-p1-gr11-qp-nov-2023-english/4a9ed09a-c470-41c0-8d03-0f4bd2f3f6c6) — Accounting · QP · 2023 · Eng - [Gr 11 Accounting P1 (English) November 2022 Question Paper](https://www.hlayiso.com/library/gr-11-accounting-p1-english-november-2022-question-paper/ef4637d3-96a9-43e3-b8e8-b76b492e87f0) — Accounting · QP · 2022 · Eng - [Gr11 Acc P1 (English) November 2019 Question Paper](https://www.hlayiso.com/library/gr11-acc-p1-english-november-2019-question-paper/bdf935ed-5668-4b8b-be13-5e4ebedf77ee) — Accounting · QP · 2019 · Eng - [ACCOUNTING P1 GR11 MEMO NOVEMBER 2023 English watermark](https://www.hlayiso.com/library/accounting-p1-gr11-memo-november-2023-english-watermark-1/49899c38-504c-42fb-972e-2181fa910731) — Accounting · Memo · 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 ## 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 - [ACCOUNTING P2 MEMO GR11 NOV 2025 ENG watermark](https://www.hlayiso.com/library/accounting-p2-memo-gr11-nov-2025-eng-watermark/7aa479bf-34d0-4240-934b-67a2f33e2597) — Memo · 2025 · Eng - [ACCOUNTING P2 MEMO GR11 NOV 2025 AFR watermark](https://www.hlayiso.com/library/accounting-p2-memo-gr11-nov-2025-afr-watermark/a92dc10a-0d2e-42d6-9cd3-ff78b0e78afe) — Memo · 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 - [ACCOUNTING P2 MEMO GR11 NOV 2024 ENG watermark](https://www.hlayiso.com/library/accounting-p2-memo-gr11-nov-2024-eng-watermark/c09eb350-5d2d-4070-8df4-25ece70dc7de) — Memo · 2024 · Eng - [ACCOUNTING P2 GR11 QP NOV2023 English](https://www.hlayiso.com/library/accounting-p2-gr11-qp-nov2023-english/f476ab04-a9d8-48f8-8d61-d147a95b251f) — QP · 2023 · 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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