# Accounting Grade 12 P1 Eastern Cape June 2025 QP (Eng) > Grade 12 Accounting Paper 1 question paper from the Eastern Cape June Exam 2025 (English), 16 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/accounting-p1-gr12-qp-jct-2025-eng-d-watermark/84d92eb0-f5bd-4442-bb6d-c55cdc52e25d - Updated: 2026-09-27 - Subject: Accounting - Grade: Grade 12 - Language: English - Document type: Question paper - Year: 2025 - Exam period: Eastern Cape June Exam - Paper: 1 - Curriculum: CAPS - Pages: 16 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 12](https://www.hlayiso.com/library/grade-12) › [Accounting](https://www.hlayiso.com/library/grade-12/accounting) › [Accounting Grade 12 P1 Eastern Cape June 2025 QP (Eng)](https://www.hlayiso.com/library/accounting-p1-gr12-qp-jct-2025-eng-d-watermark/84d92eb0-f5bd-4442-bb6d-c55cdc52e25d) ## About this document Accounting · Grade 12 · Eastern Cape June Exam · 2025 · English. Question paper, 16 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 GR12 AB JCT ENG D watermark](https://www.hlayiso.com/library/accounting-p1-gr12-ab-jct-eng-d-watermark/77ae8297-53f7-47b3-8e29-57bd38f30483) — Addendum · 2025 · Eng ## Document text Text extracted from the PDF. Layout, diagrams and tables may not survive extraction. ### Page 1 NATIONAL SENIOR CERTIFICATE GRADE 12 JUNE 2025 ACCOUNTING P1 MARKS: 150 TIME: 2 hours *JACCNE1* This question paper consists of 12 pages, a formula sheet and an 9-page answer book. Hosted by www.ecexams.co.za. ### Page 2 2 ACCOUNTING P1 (EC/JUNE 2025) 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 questions. 3. A Financial Indicator Formula Sheet is attached at the end of this question paper. 4. Show ALL workings to earn part-marks. 5. You may use a non-programmable calculator. 6. You may use a dark pencil or blue/black ink to answer questions. 7. Where applicable, show ALL calculations to ONE decimal point. 8. Write neatly and legibly. 9. Use the information in the table below as a guide when answering the question paper. Try NOT to deviate from it. TIME QUESTION TOPIC MARKS (minutes) Notes to the Financial Statements 1 55 45 and Statement of Financial Position Cash Flow Statement and Financial 2 40 30 Indicators Interpretation of Financial 3 40 30 Statements 4 Corporate Governance 15 15 TOTAL 150 120 Copyright reserved Please turn over Hosted by www.ecexams.co.za. ### Page 3 (EC/JUNE 2025) ACCOUNTING P1 3 QUESTION 1: NOTES TO THE FINANCIAL STATEMENTS AND STATEMENT OF FINANCIAL POSITION (55 marks; 45 minutes) YAMIHLE LTD The information relates to the financial year ended on 28 February 2025. REQUIRED: 1.1 Refer to Information A. Calculate the missing amounts denoted by (a) to (d) in the Tangible Assets Note. (13) 1.2 Refer to Information A, B and C. Prepare the following on 28 February 2025: x Trade and other receivables Note (7) x Retained Income Note (8) x Statement of Financial Position (27) NOTE: x Some amounts have been entered in the ANSWER BOOK. x Figures are NOT required in the shaded areas. x Show workings. Copyright reserved Please turn over Hosted by www.ecexams.co.za. ### Page 4 4 ACCOUNTING P1 (EC/JUNE 2025) INFORMATION: A. Tangible Assets: Land and Vehicles Equipment Buildings Cost (a) 465 000 520 000 Accumulated depreciation (418 500) Carrying value (1 March 2024) 46 500 Movements Additions 230 000 500 000 0 Disposals 0 (b) Depreciation (c) (39 280) Carrying value (28 February 295 245 2025) (d) Cost 1 780 000 965 000 450 000 Accumulated depreciation x Depreciation is calculated as follows: - on vehicles at 20% p.a. on cost - on equipment at 10% p.a. on diminishing balance method x A new vehicle was purchased on 1 December 2024. x Equipment that was purchased on 1 June 2023 was sold for cash for R61 500 on 28 February 2025. B. Extract: Balances and totals from the records on 28 February 2025: R Ordinary share capital ? Retained Income (1 March 2024) 298 000 Fixed assets (carrying value) ? Fixed deposit: Prince Bank 135 500 SARS: Income Tax (provisional tax payments) 142 768 Bank (favourable) ? Creditors’ Control 210 100 Loan: Abu Bank ? Trading Stock 736 090 Provision for bad debts (1 March 2024) 8 200 Net trade debtors 328 590 Insurance 184 100 Rent income 187 440 Directors’ fees 397 600 Ordinary share dividends 108 000 Copyright reserved Please turn over Hosted by www.ecexams.co.za. ### Page 5 (EC/JUNE 2025) ACCOUNTING P1 5 C. Adjustments and additional information: (i) Yamihle Ltd pays a fixed monthly insurance to ATR Insurers. Insurance for March and April 2025 has also been paid. (ii) The rent for February 2025 has not been received yet. The rent increased by 12% on 1 November 2024. (iii) Provision for bad debts must be decreased by R175. This was not taken into account when calculating the amount for net trade debtors. The bookkeeper mistakenly recorded the provision for bad debts for 1 March 2024. (iv) 20% of the fixed deposit will mature on 30 September 2025. (v) A further R108 400 is owed for income tax. (vi) The company has three directors. Two of the directors receive the same monthly fee each. The third director receives 20% less than the other directors. All three directors did not receive their fees for January and February 2025. (vii) Packing material on hand amounted to R4 760. (viii) Income tax for the year was calculated at 32% of the net profit before tax. (ix) x Yamihle Ltd is authorised to issue 2 000 000 ordinary shares. x Ordinary shares were repurchased at R90 400 above average price. x 20% of the ordinary shares have not yet been issued at year-end. x A final dividend of 12 cents per share was declared on 28 February 2025 and must still be brought into account. (x) Extract from Abu Bank loan statement: Balance on 1 March 2024 448 000 Instalments (including interest) 114 060 Interest capitalised 57 000 Balance on 28 February 2025 ? NOTE: R65 000 of the loan balance will be settled in the next financial year. (xi) The net asset value per share on 28 February 2025 is 220 cents. 55 Copyright reserved Please turn over Hosted by www.ecexams.co.za. ### Page 6 6 ACCOUNTING P1 (EC/JUNE 2025) QUESTION 2: CASH FLOW STATEMENT AND FINANCIAL INDICATORS (40 marks; 30 minutes) The information relates to Mantsane Ltd that distributes cleaning material to retailers. The financial year ended on 30 April 2025. REQUIRED: 2.1 Calculate the following amounts for the Cash Flow Statement: 2.1.1 Dividends paid (3) 2.1.2 Taxation paid (5) 2.2 Calculate the following financial indicators for the year ended 28 February 2025: 2.2.1 Percentage return on total capital employed (ROTCE) (6) 2.2.2 Acid test ratio (4) 2.2.3 Percentage operating profit on sales (3) 2.3 Complete the following sections of the Cash Flow Statement: 2.3.1 Cash flow from investing activities (8) 2.3.2 Cash flow from financing activities (7) 2.3.3 Net change in cash and cash equivalents (4) Copyright reserved Please turn over Hosted by www.ecexams.co.za. ### Page 7 (EC/JUNE 2025) ACCOUNTING P1 7 INFORMATION: A. Extract from the Statement of Comprehensive Income for the year ended 30 April 2025: Turnover for the year 4 790 000 Depreciation 475 360 Operating Expenses 1 682 200 Gross Operating Income 2 521 000 Interest expense 115 500 Net profit before tax 820 300 Net profit after tax 574 210 B. Extract from the Statement of Financial Position: 30 April 2025 30 April 2024 Tangible assets at carrying value 6 135 640 5 810 000 Financial assets (Fixed deposit) 1 430 000 1 680 000 Current assets 1 710 820 785 000 Inventories 776 740 536 430 Trade and other receivables (see D) 648 310 226 570 Cash and cash equivalents 285 770 22 000 Shareholders’ Equity 6 897 610 6 438 400 Ordinary share capital (see F) 6 305 000 5 760 000 Retained Income 592 610 678 400 Loan: Yoli Bank 900 000 500 000 Current liabilities 1 478 850 1 336 600 Trade and other Payables (see E) 1 118 850 1 096 600 Bank overdraft 0 75 000 C. Tangible assets: x Tangible assets were sold during the year at book value, R549 000. x Tangible assets were bought during the year for R? D. Trade and other receivables include: 30 April 2025 30 April 2024 Net Trade debtors 388 010 214 070 Accrued income 21 300 0 Prepaid expenses 64 000 12 500 SARS (Income Tax) 175 000 0 E. Trade and other payables include: 30 April 2025 30 April 2024 Trade creditors 890 150 748 600 Income received in advance 33 700 0 SARS: Income tax 0 204 000 Shareholders for dividends 195 000 144 000 Copyright reserved Please turn over Hosted by www.ecexams.co.za. ### Page 8 8 ACCOUNTING P1 (EC/JUNE 2025) F. Ordinary Share capital and dividends: x 1 200 000 shares were in issue on 1 May 2024. x On 1 November 2024, 400 000 additional shares were issued for R2 000 000. x 300 000 shares were repurchased on 28 February 2025 at R1,15 above average unit price. These shares do not qualify for final dividends. x Interim dividends of 10c per share were paid on 1 October 2024. 40 Copyright reserved Please turn over Hosted by www.ecexams.co.za. ### Page 9 (EC/JUNE 2025) ACCOUNTING P1 9 QUESTION 3: INTERPRETATION OF FINANCIAL INFORMATION (40 marks; 30 minutes) SINAKO LTD AND LISELE LTD The information relates to TWO companies. BACKGROUND INFORMATION: x Both companies operate in a fishing industry. The financial year ends on the last day of February each year. x Lorna Ngendu owns shares in both companies. On 1 October 2024, she convinced the board of directors of Sinako Ltd to repurchase 200 000 of her shares. She used the money received to purchase additional shares in Lisele Ltd. NOTE: Where comments or explanations are required, you should: x Quote financial indicators and trends with figures x Give a reason or explanation for the financial indicators quoted REQUIRED: 3.1 Profitability: Quote and explain TWO financial indicators to show which company is managing its expenses more efficiently. (4) 3.2 Dividends, earnings and returns: x Comment on the dividend pay-out policy of Sinako Ltd. Explain why the change in policy was irresponsible. (4) x Comment on the % return on shareholders’ equity of EACH company. Explain the effect on Sinako Ltd. (4) x Sindiswa, a shareholder, feels that earnings per share (EPS) in Lisele Ltd are better than in Sinako Ltd. Explain why you agree with her. (4) 3.3 Shareholding of Lorna Ngendu in both companies: x Comment on the price paid for the shares repurchased by Sinako Ltd. Provide TWO points. (4) x Calculate the number of shares that Lorna purchased in Lisele Ltd with the money she received from the share buyback at Sinako Ltd. (2) x Explain the effect of the share repurchase on the % shareholding of Lorna Ngendu in Lisele Ltd. Quote figures. (4) Copyright reserved Please turn over Hosted by www.ecexams.co.za. ### Page 10 10 ACCOUNTING P1 (EC/JUNE 2025) 3.4 Financing strategies and gearing: The directors of each company have taken deliberate decisions regarding finance and gearing that are reflected in their Cash Flow Statements. x Explain the decisions taken by the directors of Lisele Ltd and how these will benefit the company. Provide TWO points with figures. (8) x Explain how the decisions taken by Sinako Ltd affected the risk and gearing of the business. Quote TWO financial indicators with figures. (6) INFORMATION: A. Extracts from the accounting records at the end of each year: SINAKO LTD LISELE LTD Feb. 2025 Feb. 2024 Feb. 2025 Feb. 2024 Number of share in issue 800 000 1 000 000 2 000 000 1 500 000 Funds used for share repurchase R3 000 000 Repurchase price R15,00 Increase in share capital 0 R4 000 000 Issue price of additional shares R8,00 Fixed assets purchased R1 800 000 R3 200 000 Increase (decrease) in loan R5 300 000 (R550 000) B. Financial indicators, market prices and interest rates of shares: SINAKO LTD LISELE LTD Feb. 2025 Feb. 2024 Feb. 2025 Feb. 2024 % operating expenses on sales 19,8% 16,5% 15,1% 19,2% % operating profit on sales 21,7% 25,2% 27,0% 24,5% % net profit on sales 15,4% 19,6% 20,9% 17,3% Debt-equity ratio 1,2 : 1 0,5 : 1 0,3 : 1 0,5 : 1 % return on capital employed 11,9% 18,0% 19,6% 15,9% % return on shareholders’ equity 9,4% 13,7% 17,5% 11,2% Net asset value per share 1 158 cents 1 206 cents 743 cents 725 cents Market price of shares 1 060 cents 1 215 cents 800 cents 739 cents Interest rate on loans 16% 16% 16% 16% Earnings per share 96 cents 152 cents 87 cents 78 cents Dividends per share 106 cents 98 cents 66 cents 82 cents Dividend pay-out rate 110% 64% 76% 105% Interest on alternative investment 14% 14% 14% 14% C. Shareholding of Lorna Ngendu in both companies: SINAKO LTD LISELE LTD 2025 2024 2025 2024 Shares in each company 310 000 510 000 ? 637 500 % shareholding in each company ? 51% ? 42,5% 40 Copyright reserved Please turn over Hosted by www.ecexams.co.za. ### Page 11 (EC/JUNE 2025) ACCOUNTING P1 11 QUESTION 4: CORPORATE GOVERNANCE (15 marks; 15 minutes) 4.1 Choose the correct word(s) from those given in brackets. Write only the word(s) next to the question numbers (4.1.1 to 4.1.3) in the ANSWER BOOK. 4.1.1 (Shareholders / Directors) manage the day-to-day operations of the company and make informed decisions to help the company achieve its goals. 4.1.2 A/An (disclaimer of opinion / unqualified) audit opinion is received when the external auditor refuses to express an opinion on the reliability of the financial statements. 4.1.3 (Remunerations Committee / Good corporate governance) ensures that the company has proper rules, policies and practices to create long-term shareholder value. (3) 4.2 Refer to the extract from the Audit Report of Kanghol Ltd: 4.2.1 What type of audit report did Kanghol Ltd receive in 2025? (1) 4.2.2 Where is this audit report expected to be presented? Give ONE point. (1) 4.2.3 Explain TWO points on the impact of this report on the company. (4) Extract from the Audit Report of Kanghol Ltd: We have audited the financial statements of Kanghol Ltd for the year ended 28 February 2025. These financial statements are the responsibility of the company’s directors. Our responsibility is to express an opinion on the financial statements based on the audit performed. The audit includes, on a test basis, evidence supporting the amounts in the financial statements and assessing the principles used. The financial statements fairly present, in all material respects, the financial position of the company, except for a significant increase in the value of inventory that is unaccounted for. Smilo and Thato, Chartered Accountants (SA) 4.3 Corporate social responsibility programmes aim to give structure to a company’s efforts to give back to the community and to provide positive social value. Explain why companies would want to give back to the communities. State THREE points. (6) 15 TOTAL: 150 Copyright reserved Please turn over Hosted by www.ecexams.co.za. ### Page 12 12 ACCOUNTING P1 (EC/JUNE 2025) GRADE 12 ACCOUNTING FINANCIAL INDICATOR FORMULA SHEET Gross profit x 100 Gross profit x 100 Sales 1 Cost of sales 1 Net profit before tax x 100 Net profit after tax x 100 Sales 1 Sales 1 Operating expenses x 100 Operating profit x 100 Sales 1 Sales 1 Total assets: Total liabilities Current assets : Current liabilities (Current assets – Inventories) : Current liabilities Non-current liabilities : Shareholders' equity (Trade and other receivables + Cash and cash equivalents): Current liabilities Average trading stock x 365 Cost of sales . Cost of sales 1 Average trading stock (See note 1 below) Average debtors x 365 Average creditors x 365 Credit sales 1 Cost of sales 1 (See Note 2 below) Net income after tax x 100 Net income after tax x 100 Number of issued shares 1 Average shareholders' equity 1 (See note 3 below) Net income before tax + Interest on loans x 100 Average shareholders' equity + Average non-current liabilities 1 Shareholders' equity x 100 Dividends for the year x 100 Number of issued shares 1 Number of issued shares 1 Interim dividends x 100 Final dividends x 100 Number of issued shares 1 Number of issued shares 1 Dividends per share x 100 Dividends for the year x 100 Earnings per share 1 Net income after tax 1 Total fixed costs . Selling price per unit – Variable costs per unit NOTE: 1. Trading stock at the end of a financial year may be used if required in a question. 2. Credit purchases may be used instead of cost of sales (figures will be the same if stock is constant). 3. If there is a change in the number of issued shares during a financial year, the weighted average number of shares is used in practice. Copyright reserved Please turn over Hosted by www.ecexams.co.za. ### Page 13 Hosted by www.ecexams.co.za. ### Page 14 Hosted by www.ecexams.co.za. ### Page 15 Hosted by www.ecexams.co.za. ### Page 16 Hosted by www.ecexams.co.za. ## Related documents - [Accounting P1 (English) June 2025 Answer Book](https://www.hlayiso.com/library/accounting-p1-english-june-2025-answer-book/7e96e433-56f8-43a1-9a38-c68c465746dd) — Accounting · Addendum · 2025 · Eng - [Accounting P1 (English) June 2025 Possible Answers](https://www.hlayiso.com/library/accounting-p1-english-june-2025-possible-answers/86671777-58f6-4c82-932c-4924bae022c0) — Accounting · Memo · 2025 · Eng - [Accounting P1 May-June 2025 Answer Book Eng](https://www.hlayiso.com/library/accounting-p1-may-june-2025-answer-book-eng/95b8428e-7384-44b8-9e88-71987874e162) — Accounting · Addendum · 2025 · Eng - [Accounting P1 May-June 2025 MG Eng](https://www.hlayiso.com/library/accounting-p1-may-june-2025-mg-eng/b3a00324-c447-494b-9131-3046982cc2bb) — Accounting · Memo · 2025 · Eng - [ACCOUNTING P1 MEMO GR12 JUNE 2024 English](https://www.hlayiso.com/library/accounting-p1-memo-gr12-june-2024-english/ef245808-e780-418c-ba92-6f41e021a333) — Accounting · Memo · 2024 · Eng - [ACCOUNTING P1 GR12 QP SEPT 2023 English](https://www.hlayiso.com/library/accounting-p1-gr12-qp-sept-2023-english/86b103e1-05b3-4ddd-9077-02c461ae7d17) — Accounting · QP · 2023 · Eng ## More from Grade 12 Accounting - [Accounting](https://www.hlayiso.com/library/accounting/8f42a6a4-9593-4d36-86b1-d890dd1bb1bf) — Guide - [Acc P2 Memo ENg watermark](https://www.hlayiso.com/library/acc-p2-memo-eng-watermark/5c899e95-f3c2-4bf6-b539-ed8b1bcec50d) — Memo · 2025 · Eng - [Accounting P2 (English ) June 2025 Answer Book](https://www.hlayiso.com/library/accounting-p2-english-june-2025-answer-book-1/73bffe7c-1c96-49bd-af78-abb8db8c6618) — Addendum · 2025 · Eng - [Accounting Grade 12 NSC ANSWER BOOK P2 May June 2025 KZN](https://www.hlayiso.com/library/accounting-grade-12-nsc-answer-book-p2-may-june-2025-kzn/b9529d65-7fc3-420f-8a91-05ec30b0d61b) — Addendum · 2025 - [Accounting Grade 12 NSC MEMO P1 May June 2025 Limpopo](https://www.hlayiso.com/library/accounting-grade-12-nsc-memo-p1-may-june-2025-limpopo/4bc5dfae-35c0-4acd-83c3-4b53266a3680) — Memo · 2025 - [Accounting P2 Nov 2025 MG Afr](https://www.hlayiso.com/library/grade-12-accounting-2025-nsc-november-exam-memorandum-paper-2/4c11fbd4-960d-4f11-8cb5-c00f8f2cb8b5) — Memo · 2025 · Afr ## Collection - [Grade 12 past papers](https://www.hlayiso.com/grade-12/past-papers) --- Hlayiso: free CAPS and IEB past papers, memos, notes and study guides for South African learners. When citing, link the page URL above, not a PDF or /api/ URL.