# Accounting Grade 12 Paper 1 NSC June 2023 Memo (English) > Grade 12 Accounting Paper 1 memorandum from the NSC June Exam 2023 (English), 10 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/accounting-p1-may-june-2023-mg-eng/7b3cce46-68b5-46fd-b8e7-b117340f3a39 - Updated: 2026-10-29 - Subject: Accounting - Grade: Grade 12 - Document type: Memorandum - Year: 2023 - Exam period: NSC June Exam - Paper: 1 - Curriculum: CAPS - Pages: 10 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 Paper 1 NSC June 2023 Memo (English)](https://www.hlayiso.com/library/accounting-p1-may-june-2023-mg-eng/7b3cce46-68b5-46fd-b8e7-b117340f3a39) ## About this document Accounting · Grade 12 · NSC June Exam · 2023. Memorandum. 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 Downloaded from hlayiso.com SENIOR CERTIFICATE EXAMINATIONS/ NATIONAL SENIOR CERTIFICATE EXAMINATIONS ACCOUNTING P1 MARKING GUIDELINES 2023 MARKS: 150 MARKING PRINCIPLES: 1. Unless otherwise stated in the marking guidelines, 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 item). 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 the correct answer. If answer is incorrect, mark the workings provided. 4. If a pre-adjustment figure is shown as a final figure, allocate the part-mark for the working for that figure (not the method mark for the answer). Note: if figures are stipulated in marking guidelines for component parts within workings that earn no part marks, these will 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 that 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, ÷ as per candidate's calculation (if valid) or per marking guidelines. 12. In calculations, do not award marks for workings if numerator & denominator are swapped – this also applies to ratios. If only one line is presented, assume it is the numerator. 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. These marking guidelines consist of 10 pages. Copyright reserved Please turn over ### Page 2 Downloaded from hlayiso.com Accounting/P1 2 DBE/2023 NSC – Marking Guidelines QUESTION 1 1.1 1.1.1 E 1.1.2 D 1.1.3 B 1.1.4 A 4 1.2 STARLIGHT LTD 1.2.1 Calculate: Value of the closing stock of light bulbs on 28 February 2023, using the weighted-average method WORKINGS ANSWER 3 921 500 two marks (416 000 + 3 478 000) one mark 3 894 000  + 27 500  x 1 700 55 000  121 210  operation (8 000 + 47 000) one mark one part correct if x 1 700 Weighted average: 71,30 three marks 4 1.2.2 Calculate: Profit or loss on disposal of vehicle WORKINGS ANSWER 104 000 x [20% x 9/12] 91 500  – (104 000  – 15 600 ) 3 100  for 1 of the 2 components within workings operation 88 400 three marks one part correct ignore sign Accept alternative arrangements for calculations such as: If SP > CV = Profit 104 000 – 15 600 – 91 500 or SP < CV = Loss 5 Calculate: Total depreciation for the year WORKINGS ANSWER Vehicles 15 600  + 145 200  = 160 800 two marks (see above) 281 100  operation Equipment one part correct for vehicles + equipment 774 000 x 15% 48 000 x [15% x 7/12] 116 100  + 4 200  = 120 300 four marks for 1 of the 2 components within workings 7 Copyright reserved Please turn over ### Page 3 Downloaded from hlayiso.com Accounting/P1 3 DBE/2023 NSC – Marking Guidelines 1.2.3 Statement of Comprehensive Income for the year ended 28 February 2023 Sales 17 850 000 Cost of sales (10 200 000) Gross profit 7 650 000 Other income operation 170 900 Commission income 85 900 Rent income 89 700  – 7 800  81 900 * Profit on sale of asset* * could be a loss see 1.2.2 3 100 check if SP > NCV Gross operating income 6 7 820 900 Operating expenses (4 894 900) Salaries and wages balancing figure 2 218 100  could be a negative Audit fees 155 200 + 38 800 194 000* Directors' fees 2 015 000 – 130 000  1 885 000 * 2015 000 x 29/31 OR 65 000 x 29 OR 1 560 000 + 325 000 Sundry expenses 219 760 Bad debts 16 200  + 2 250  18 450 * [9 000 x 20/80] two marks in total Depreciation see 1.2.2 281 100  Trading stock deficit 2 969 800  – (2 774 800  + 121 210 ) 2 896 010 two marks see 1.2.1 73 790 * Do not accept 2 969 800 or 2 774 800 as final answers Provision for bad debts adjustment must be an expense 4 700  18 Operating profit GOI - OE 2 926 000  Interest income balancing figure; accept if negative 34 000 Profit before interest expense 2 960 000 Note: one mark on 165 600 Interest expense 165 600 x 60% OR 165 600 – 66 240 (99 360)  If x 60% OR –40% (690 000 – 524 400) one mark OR (13 800 x 12) x 60% Net profit before tax NPaT + Inc Tax 2 860 640  Income tax (858 140) Net profit after tax 5 2 002 500 29 * operation, one part correct – 1 for foreign items (max -2) For misplaced items mark the workings, but penalise on the final answer Ignore brackets Copyright reserved ### Page 4 Downloaded from hlayiso.com Accounting/P1 4 DBE/2023 NSC – Marking Guidelines CURRENT ASSETS 7 605 150 Inventories 2 774 800  + 121 210  see 1.2.1 OR 2 969 800 one mark – 73 790 one m.mark 2 896 010 * (deficit) see SOCI Trade and other receivables two accuracy marks     16 860 764 140 * 645 250– 2 250 – 25 720 + 130 000 + (875 000 – 858 140) bad debts prov BD directors fees SARS: Income tax Cash and cash equivalents balancing figure 3 945 000 11 * operation, one part correct TOTAL MARKS 60 Copyright reserved Please turn over ### Page 5 Downloaded from hlayiso.com Accounting/P1 5 DBE/2023 NSC – Marking Guidelines QUESTION 2 2.1 RETAINED INCOME NOTE Balance at beginning of year 237 400 Net profit after tax 1 526 000 Shares repurchased 180 000 x 1,20  (216 000) (11,05 – 9,85) two marks Ignore brackets Not 1 989 000 * OR 1 989 000 one mark – 1 773 000 two marks Not 1 773 000 Ordinary share dividends operation (int + final) (917 800) * Ignore brackets Interim dividends 1 070 000 x 32c 342 400 * one part correct Final dividends 575 400  Balance at end of year 629 600 * Inspect operation; must subtract shares repurchased & OSD 9 * operation. one part correct 2.2 Calculate: Change in loan WORKINGS ANSWER 852 000  7 200 000 – 6 348 000 Ignore brackets no part mark 2 Calculate: Proceeds from shares issued WORKINGS ANSWER no part marks (1 370 000 + 180 000 – 1 250 000) 3 420 000  300 000  x 11,40 If x 11,40 OR (13 959 500 – 12 312 500) + 1 773 000 3 420 000 one method mark 1 647 000 one mark one method mark - see 2.1 3 2.3 155 200 CASH EFFECTS OF OPERATING ACTIVITIES operation; one part correct  in totals or in workings Cash generated from operations 2 340 300 Interest paid (648 000)  Must be in brackets Income tax paid 1 526 000 x 30/70 42 100  + 654 000  + 23 600  (719 700) * OR – 42 100 – 654 000 – 23 600 Must be in brackets Be alert to other alternative presentations such as brackets or T-account. Dividends paid see 2.1 (817 400) * 475 000  + 342 400  OR – 475 000 – 342 400 Must be in brackets OR 475 000 one mark + (917 800 – 575 400) one m.mark 10 * operation, one part correct Copyright reserved Please turn over ### Page 6 Downloaded from hlayiso.com Accounting/P1 6 DBE/2023 NSC – Marking Guidelines 2.4 Calculate: Current ratio WORKINGS ANSWER 1,8: 1 1 479 600 : 822 000 operation one part correct in form x : 1 Allocate ONE mark for both amounts (if no final answer / incorrect final answer) 2 Calculate: Net asset value (NAV) * 100 does not constitute ‘one part correct’ WORKINGS ANSWER 14 589 100 two marks see 2.1 1 064,9 cents 13 959 500  + 629 600  x 100*  1 370 000  operation one part correct accept R10,65 or 1065 cents Answer must be reflected in R or c 4 Calculate: % return on total capital employed (ROTCE) NOTE: The average capital employed is R20 343 500. * 100 does not constitute ‘one part correct’ WORKINGS ANSWER 2 828 000 three marks 2 180 000 or 1 526 000 x 100/70 see 2.3 13,9% 1 526 000  + 654 000  + 648 000  x 100* operation 20 343 500  one part correct % sign not necessary 5 TOTAL MARKS 35 Copyright reserved Please turn over ### Page 7 Downloaded from hlayiso.com Accounting/P1 7 DBE/2023 NSC – Marking Guidelines QUESTION 3 3.1 Explain whether or not the company is managing their working capital efficiently. Quote TWO financial indicators, with figures and trends. Financial indicator   figure and trend   any ONE explanation  Any two indicators:  Current ratio has decreased (from 1,3:1) to 0,9:1 / by 0,4 : 1  Acid test ratio has decreased (from 0,6:1) to 0,3:1 / by 0,3 : 1  Debtors average collection period increased (from 30,8 days) to 42,4 days / by 11,6 days. Possible explanations for ONE mark: The business will experience difficulty in meeting short term debts / does not have enough liquid assets (cash) to cover current liabilities / debtors take too long to settle accounts / too much stock on hand. 5 3.2 Calculate the total number of additional shares that Denise purchased. CALCULATION ANSWER (51% x 1 500 000) two marks 765 000  – 540 000  225 000  operation one part correct Do not accept 50% + 1 share or 50% + 100 shares 4 Give ONE possible reason why Denise was determined to become the majority shareholder. Any ONE valid reason  must relate to influence over control Part mark for incomplete/unclear responses Expected responses e.g.  She wants to have full control of the company.  She wants to influence all decisions of the company in the future.  She wants to address the issue of incompetent directors/influence new appointments who can contribute to the growth of the company  She feels she can kick-start a turn-around of the current situation. Possible responses for one mark e.g. To gain more dividends / make a capital gain on the shares 2 3.3.1 The Cash Flow Statement revealed decisions taken by the directors. Identify TWO major decisions taken by the directors in 2023 that were different to those from the previous year. Quote figures. TWO decisions   Figures    In 2023 the company issued more shares for R3 750 000 (in 2022 the company bought back shares for R250 000).  In 2023 they repaid R1 800 000 of the loan (in 2022 the company borrowed R3 500 000). Do not accept R1 700 000 as a valid figure. Give ONE reason for these decisions. ONE valid reason  part marks for incomplete/unclear responses  Place less reliance on loans / pay less interest / improve or reduce financial risk  There is an attempt to sustain the company by using equity (own capital) 6 Copyright reserved Please turn over ### Page 8 Downloaded from hlayiso.com Accounting/P1 8 DBE/2023 NSC – Marking Guidelines 3.3.2 Explain the impact of these decisions on the degree of financial risk over the two years. Quote ONE financial indicator, with figures and trends. Financial indicator  with figure(s) and trend  Debt/equity ratio decreased (from 0,4 : 1) to 0,1 : 1 / by 0,3 : 1) Explanation  Reduced or lower financial risk / less reliance on loans / use of own (share) capital 3 3.3.3 Explain how these decisions affected the gearing of the company. Quote ONE financial indicator, with figures and trends. Financial indicator  with figure(s) and trend  ROTCE dropped (from 11,4%) to 9% / by 21,1% / by 2,4% points Explanation of gearing (compared to interest rate)  part marks for incomplete/unclear responses Expected responses:  ROTCE is below the interest rate of 13%; was negatively geared in 2022 and dropped further in 2023.  Company was not making effective use of loans in 2022 and this trend has continued in 2023 in spite of effects of attempts to reduce the loan. 4 3.4.1 Certain shareholders expressed concern about the change in the dividend payout policy. Explain TWO points to support their opinion. Any TWO valid points   part marks for incomplete/unclear responses N.B. Figures are not compulsory here:  The increase in the dividend pay-out rate (from 67,6%) to 106,7% means that funds must be used from retained income / depleting company funds / paid higher dividends whilst earnings were low.  The directors want to distract shareholders by trying to appease them in order to distract them from the poor performances of the company / misleading.  Directors are acting irresponsibly by showing no intentions for the growth of the company / Company is not retaining funds for future growth.  Directors should have focused on improving the cash resources because they are actually depleting cash resources. Responses for one mark e.g. Dividend pay-out rate increased significantly / directors want to be re-elected 4 3.4.2 Explain whether shareholders would be satisfied with the trend in the % return and earnings of the company, as well as the dividends they earned. Quote TWO financial indicators, with figures and trends. Financial indicator   figures and trend   Any TWO of:  ROSHE decreased (from 7,2%) to 5,7% / by 1,5% points / 20,8%  EPS decreased (from 74c) to 60c / by 14c / drop in profitability by 18,9%  DPS increased (from 50c) to 64c / by 14c / by 28% Explanation (figures not compulsory here)  part marks for incomplete/unclear responses  Returns are below interest rate on fixed deposits [alternative investment of 7%]  Some shareholders may be satisfied with a [14 cent] increase in DPS / others concerned that company pays high dividends when profits dropped  Due to high dividends, dividend yield improved (from 4,9%) to 7,5% / by 2,6% points / 53,1% 6 Copyright reserved Please turn over ### Page 9 Downloaded from hlayiso.com Accounting/P1 9 DBE/2023 NSC – Marking Guidelines 3.5 In EACH case, provide evidence for the shareholders' concerns over these trends, and explain why they would be concerned about the future prospects for the company. Quote figures and trends. Award relevant mark allocation if correct evidence, figures or reasons are placed in the incorrect columns. Reason for concern Evidence of concern Issues Figure   Comparison     Be alert to other valid reasons Cash and C&CE decreased by R836 000 Operating activities reflects cash OR deficit / ineffective use of equivalents C&CE decreased (from available funds / generating R1,914m) to R1,078m over the funds with no intention to two years increase profitability / liquidity OR issues in the future if trend Net outflow in 2023 of continues R836 000 compared to net inflow of R2,2m in 2022 Market The market price on the JSE The shares are not in demand by price of has decreased (from 1 020 the public (due to general decline shares on cents) to 850 cents / The in company's performance) / JSE market price of 850 cents is Future prospects for the less than the NAV of 1 007 company are not good as new cents. shareholders might not want to buy shares if the shares are not performing well 6 TOTAL MARKS 40 Copyright reserved Please turn over ### Page 10 Downloaded from hlayiso.com Accounting/P1 10 DBE/2023 NSC – Marking Guidelines QUESTION 4 4.1 4.1.1 Shareholders  4.1.2 Unqualified  4.1.3 Disclaimer of opinion  3 4.2 Explain THREE questions that the shareholders would want to raise with the board of directors at the meeting. THREE valid reasons    Part marks for unclear/incomplete answers Accept points that might not be phrased as questions. Be alert to other valid interpretations of information given in Q.  Why was there poor control by the Board or Remunerations committee over Donald’s appointment / were correct procedures not followed when deciding on his salary package / did they not check references from previous employers regarding his qualifications & experience?  Why did the Board match the competitor’s offer without verifying it properly?  Given Donald’s dishonesty (over his qualifications and job offer), has the Board conducted further investigations into his conduct (e.g. embezzlement)?  Is there any evidence good performance by Donald in terms of influencing productivity and profitability in the company?  Why is there no transparency regarding the significant increase in Donald’s remuneration? / Were external auditors negligent in any way regarding this?  What internal disciplinary consequences will be taken against Donald or others who appointed him (e.g. CEO, directors or remunerations committee)?  What external or legal steps will be followed to recover the salary overpaid (due to his fraudulent CV) / to ensure Donald’s dismissal? 6 4.3 Provide ONE point of possible mismanagement or corruption under EACH of the following subheadings. Quote relevant figures to support your answer in EACH case. Be alert to other valid interpretations of information given in Q. Payment of directors' fees Any valid point (must refer to productivity)  Part marks for unclear/incomplete answers Fee increases for directors were not justified or / they did not make any difference to improving the company / they do not deserve the high increases due to the decrease in the profitability (productivity) of the company. Possible figure/s   Operating profit dropped by 4,7% and net profit decreased by 3%  Directors fees (in total) increased by / 37,6% (R66m to R90,8m)  The CEO received a 44,4% increase (R18m to R26m)  Other directors fees increased by 45% (R36m to R52,2m) + extra 3 directors Salaries of other employees Part marks for unclear/incomplete answers Valid point (must mention possible mismanagement)  Employing additional employees did not contribute to better profits (productivity) / more workers should have had a positive effect on profits / possible ghost workers / under-qualified or incompetent workers employed / nepotism / poor HR decisions to increase workforce Possible figure/s   Operating profit dropped by 4,7% (despite +8% in GP / -3% in net profit  The workforce increased by 25% (55 more workers)  Salaries increased (from R70,4m) to R91,3m / by R20,9m / by 29,7% 6 TOTAL MARKS 15 TOTAL: 150 Copyright reserved ## Related documents - [ACCOUNTING P1 GR12 MEMO JUNE 2023 English](https://www.hlayiso.com/library/accounting-p1-gr12-memo-june-2023-english/b15a4456-2317-4298-9022-fc735fdc6214) — Accounting · Memo · 2023 · Eng - [ACCOUNTING P1 GR12 AB JUNE 2023 English](https://www.hlayiso.com/library/accounting-p1-gr12-ab-june-2023-english/bd3063b8-4a97-4989-8498-a76ffb82e60a) — Accounting · QP · 2023 · 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 - [Accounting P1 Nov 2023 Answer Book Eng](https://www.hlayiso.com/library/accounting-p1-nov-2023-answer-book-eng/aaeb9a41-12fe-49c2-9ba7-37693926cbd5) — Accounting · Addendum · 2023 · Eng - [Accounting P1 Nov 2023 Eng](https://www.hlayiso.com/library/accounting-p1-nov-2023-eng/4c9e315d-40c3-4d80-9775-322ef8d07061) — Accounting · QP · 2023 · Eng - [Accounting P1 May-June 2025 Answer Book Afr](https://www.hlayiso.com/library/accounting-p1-may-june-2025-answer-book-afr/7207c401-3dce-40c5-bd09-39c9787e0729) — Accounting · Addendum · 2025 · Afr ## More from Grade 12 Accounting - [Accounting](https://www.hlayiso.com/library/accounting/8f42a6a4-9593-4d36-86b1-d890dd1bb1bf) — Guide - [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 - [ACCOUNTING P1 GR12 QP JCT 2025 AFR D watermark](https://www.hlayiso.com/library/accounting-p1-gr12-qp-jct-2025-afr-d-watermark/c6a5692b-3cb0-464b-bb82-67d6ce83bfdd) — QP · 2025 · Afr - [ACCOUNTING P1 GR12 QP JCT 2025 ENG D watermark](https://www.hlayiso.com/library/accounting-p1-gr12-qp-jct-2025-eng-d-watermark/84d92eb0-f5bd-4442-bb6d-c55cdc52e25d) — QP · 2025 · Eng - [ACCOUNTING P2 QP GR12 JCT 2025 ENG D watermark](https://www.hlayiso.com/library/accounting-p2-qp-gr12-jct-2025-eng-d-watermark/13425f71-aba6-4328-b084-d9b108884315) — QP · 2025 · Eng - [Accounting P1 (English) June 2025 Answer Book](https://www.hlayiso.com/library/accounting-p1-english-june-2025-answer-book/7e96e433-56f8-43a1-9a38-c68c465746dd) — Addendum · 2025 · Eng ## 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. 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