ACCOUNTING P1 GR12 AB JUNE 2023 English hlayiso.com

Downloaded from hlayiso.com Name: NATIONAL SENIOR CERTIFICATE GRADE 12 JUNE 2023 ACCOUNTING P1 ANSWER BOOK MARKS MODERATED QUESTION MAX. MARKS OBTAINED MARKS 1 60 2 40 3 35 4 15 150 This answer book consists of 12 pages.

Downloaded from hlayiso.com 2 ACCOUNTING P1 (ANSWER BOOK) (EC/JUNE 2023) QUESTION 1 1.1.1 Calculate: The profit/loss on the trade-in of the old vehicle WORKINGS ANSWER 4 1.1.2 Calculate: The total depreciation for the year Depreciation on equipment Depreciation on vehicles 4 NOTE: The amounts calculated above must be transferred to QUESTION 1.2.1, the Statement of Comprehensive Income. Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2023) ACCOUNTING P1 (ANSWER BOOK) 3 1.2.1 Statement of Comprehensive Income for the year ended 28 February 2023 Sales Cost of sales Gross profit Other income Discount received 32 400 Gross operating income Operating expenses Audit fees 180 060 Insurance 56 920 Sundry expenses Operating profit Interest income 120 000 Profit before interest expense Net profit before tax Income tax (242 040) Net profit after tax 36 * Copyright reserved Please turn over

Downloaded from hlayiso.com 4 ACCOUNTING P1 (ANSWER BOOK) (EC/JUNE 2023) 1.2.2 Extract: Statement of Financial Position on 28 February 2023 EQUITY AND LIABILITIES ORDINARY SHAREHOLDERS' EQUITY 5 870 750 NON-CURRENT LIABILITIES CURRENT LIABILITIES Trade and other payables TOTAL EQUITY AND LIABILITIES 16 TOTAL MARKS 60 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2023) ACCOUNTING P1 (ANSWER BOOK) 5 QUESTION 2 2.1 2.1.1 2.1.2 2.1.3 3 2.2.1 Retained Income Balance on 1 March 2022 Net profit after tax 784 000 Ordinary share dividends Final dividends 207 070 Balance on 28 February 2023 8 Copyright reserved Please turn over

Downloaded from hlayiso.com 6 ACCOUNTING P1 (ANSWER BOOK) (EC/JUNE 2023) 2.2.2 Cash Flow Statement for the year ended on 28 February 2023. Information is NOT required in shaded areas. CASH FLOW FROM OPERATING ACTIVITIES Cash generated from operations Interest paid CASH FLOW FROM INVESTING ACTIVITIES CASH FLOW FROM FINANCING ACTIVITIES NET CHANGE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING CASH AND CASH EQUIVALENTS AT END 92 840 18 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2023) ACCOUNTING P1 (ANSWER BOOK) 7 2.2.3 Calculate the following financial indicators on 28 February 2023. Acid-test ratio WORKINGS ANSWER 3 % Return on average shareholders’ equity (ROSHE) WORKINGS ANSWER 4 Dividend per share WORKINGS ANSWER 4 TOTAL MARKS 40 Copyright reserved Please turn over

Downloaded from hlayiso.com 8 ACCOUNTING P1 (ANSWER BOOK) (EC/JUNE 2023) QUESTION 3 3.1 3.1.1 3.1.2 3.1.3 3 3.2.1 Identify the company with the better profitability financial indicators. Quote TWO financial indicators. 3 3.2.2 Identify and explain which company is managing its liquidity more efficiently. Quote TWO financial indicators. 6 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2023) ACCOUNTING P1 (ANSWER BOOK) 9 3.2.3 Comment on the dividend pay-out policy of each company. Provide a possible reason why each company decided on the policy adopted. Quote figures. Comment Explanation Rock Ltd Wills Ltd 6 3.2.4 The directors of Wills Ltd decided to increase the loan during the current financial year. Explain whether this was a good decision or not. Quote TWO financial indicators. 6 Copyright reserved Please turn over

Downloaded from hlayiso.com 10 ACCOUNTING P1 (ANSWER BOOK) (EC/JUNE 2023) 3.2.5 The shareholders of Rock Ltd are satisfied with the market price of their shares, whereas the shareholders of Wills Ltd are not satisfied. Explain by quoting a financial indicator for EACH company. ROCK LTD WILLS LTD 6 3.2.6 Calculate the % percentage shareholding of the Mentoor- family if they buy these shares. WORKINGS ANSWER 2 As a shareholder, why would you be concerned about the interest shown by the Mentoor family? Provide TWO points. 3 TOTAL MARKS 35 Copyright reserved Please turn over

Downloaded from hlayiso.com (EC/JUNE 2023) ACCOUNTING P1 (ANSWER BOOK) 11 QUESTION 4 4.1.1 Identify the type of audit report in the extract above and give a reason for your answer. Type of report:   Reason: 2 4.1.2 Explain the effect of this type of report for the image of the company. Provide ONE point. 2 4.2.1 Provide TWO possible reasons why the CEO was fined, and not the company. 4 Copyright reserved Please turn over

Downloaded from hlayiso.com 12 ACCOUNTING P1 (ANSWER BOOK) (EC/JUNE 2023) 4.2.2 Provide TWO points why the JSE took this action. 4 4.2.3 Identify ONE other party (stakeholder) that could also be accountable for allowing this situation. Provide a reason. 3 TOTAL MARKS 15 TOTAL: 150 Copyright reserved Please turn over