Accounting Grade 12 P1 Eastern Cape Mock 2022 QP (Eng)

Name: NATIONAL SENIOR CERTIFICATE GRADE 12 SEPTEMBER 2022 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 11 pages.

2 ACCOUNTING P1 (ANSWER BOOK) (EC/SEPTEMBER 2022) QUESTION 1 1.1 1.1.1 1.1.2 1.1.3 1.1.4 4 1.2.1 Calculate the following: WORKINGS ANSWER Closing stock: 4 Missing stock: 2 1.2.2 Calculate the correct net profit after tax for the year ended 30 June 2022. Indicate ‘+’ for increase and ‘–’ for decrease at each adjusted amount. NO. WORKINGS ANSWER Incorrect net profit before tax 3 199 890 (i) Stock loss (ii) Provision for bad debts-adjustment (iii) Directors fees Rent income Advertising (iv) Interest expense Income tax Net profit after tax 17 Copyright reserved Please turn over

(EC/SEPTEMBER 2022) ACCOUNTING P1 (ANSWER BOOK) 3 1.2.3 STATEMENT OF FINANCIAL POSITION FOR ON 30 JUNE 2022 ASSETS NON-CURRENT ASSETS Fixed assets Financial assets 200 000 CURRENT ASSETS Inventories Trade and other receivables Cash and cash equivalents TOTAL ASSETS EQUITY AND LIABILITIES SHAREHOLDERS' EQUITY Ordinary share capital 3 948 000 NON-CURRENT LIABILITIES CURRENT LIABILITIES Trade and other payables Current portion of loan 185 000 TOTAL EQUITY AND LIABILITIES 33 TOTAL MARKS 60 Copyright reserved Please turn over

4 ACCOUNTING P1 (ANSWER BOOK) (EC/SEPTEMBER 2022) QUESTION 2 2.1 Calculate the following financial indicators on 28 February 2022: 2.1.1 Acid-test ratio WORKINGS ANSWER 4 2.1.2 % Return on average capital employed WORKINGS ANSWER 5 2.1.3 Dividend per share (DPS) WORKINGS ANSWER 4 2.2 Ordinary Share Capital Note 1 700 000 Shares in issue on 1 March 2021 5 100 000 (150 000) 1 950 000 Balance on 28 February 2022 6 240 000 3 Copyright reserved Please turn over

(EC/SEPTEMBER 2022) ACCOUNTING P1 (ANSWER BOOK) 5 2.3 Calculate the following: 2.3.1 Change in receivables (indicate if it is an inflow or outflow of cash) WORKINGS ANSWER 5 2.3.2 Income tax paid WORKINGS ANSWER 5 2.3.3 Fixed assets purchased WORKINGS ANSWER 4 Copyright reserved Please turn over

6 ACCOUNTING P1 (ANSWER BOOK) (EC/SEPTEMBER 2022) 2.4 Complete the following sections of the Cash Flow Statement. 2.4.1 CASH EFFECTS OF FINANCING ACTIVITIES 7 2.4.2 NET CHANGE IN CASH AND CASH EQUIVALENTS Cash (opening balance) 61 200 Cash (closing balance) 3 TOTAL MARKS 40 Copyright reserved Please turn over

(EC/SEPTEMBER 2022) ACCOUNTING P1 (ANSWER BOOK) 7 QUESTION 3 3.1 Profitability: Identify the company with the better profitability financial indicators. Quote TWO financial indicators. 3 3.2 Liquidity: 3.2.1 Explain which company’s liquidity position will make shareholders happy. Quote TWO financial indicators in your explanation. 6 3.2.2 Explain TWO points on how the other company can improve their liquidity position. Make reference to a specific financial indicator. 4 Copyright reserved Please turn over

8 ACCOUNTING P1 (ANSWER BOOK) (EC/SEPTEMBER 2022) 3.3 Comment on the change in the dividend pay-out-policy of EACH company. Quote figures. In each case, provide a possible reason why each company has decided on a change of policy. Comment Explanation Dally Ltd Nana Ltd 6 3.4 Risk and Gearing: Comment on how each company is managing their risk and gearing. Quote TWO financial indicators in your explanation. Dally Ltd: Nana Ltd: 8 Copyright reserved Please turn over

(EC/SEPTEMBER 2022) ACCOUNTING P1 (ANSWER BOOK) 9 3.5 Percentage shareholding and share price: 3.5.1 Comment on the price paid for the repurchase of shares by Dally Ltd. Provide TWO points. Quote figures. 4 3.5.2 Explain the effect of the share repurchase on the % shareholding of the Bravo family in EACH company. Provide a calculation to support your explanation. Dally Ltd: Nana Ltd: 4 TOTAL MARKS 35 Copyright reserved Please turn over

10 ACCOUNTING P1 (ANSWER BOOK) (EC/SEPTEMBER 2022) QUESTION 4 4.1.1 Identify the type of report issued by the auditor. Provide ONE reason for your answer. TYPE: REASON: 3 4.1.2 Explain the impact of such a report on the image of the company. State ONE point. 2 4.2.1 Explain why it is unethical for the CEO to accept this offer. State TWO points. 4 4.2.2 Mention possible implications for the CEO should he accept this offer. Explain TWO points. 4 Copyright reserved Please turn over

(EC/SEPTEMBER 2022) ACCOUNTING P1 (ANSWER BOOK) 11 4.2.3 Suggest TWO ways in which corporate social responsibility can be achieved through good corporate governance. 2 TOTAL MARKS 15 TOTAL MARKS: 150 Copyright reserved Please turn over