# Accounting Grade 12 P1 NSC June 2025 Question Paper (Eng) > Grade 12 Accounting Paper 1 question paper from the NSC June Exam 2025 (English), 13 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/accounting-p1-may-june-2025-eng/f05c3202-3635-416a-9c6a-58f9a659ac69 - Updated: 2026-09-27 - Subject: Accounting - Grade: Grade 12 - Language: English - Document type: Question paper - Year: 2025 - Exam period: NSC June Exam - Paper: 1 - Curriculum: CAPS - Pages: 13 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 NSC June 2025 Question Paper (Eng)](https://www.hlayiso.com/library/accounting-p1-may-june-2025-eng/f05c3202-3635-416a-9c6a-58f9a659ac69) ## About this document Accounting · Grade 12 · NSC June Exam · 2025 · English. Question paper, 13 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 May-June 2025 Answer Book Eng](https://www.hlayiso.com/library/accounting-p1-may-june-2025-answer-book-eng/95b8428e-7384-44b8-9e88-71987874e162) — 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) — Memo · 2025 · Eng ## Document text Text extracted from the PDF. Layout, diagrams and tables may not survive extraction. ### Page 1 Confidential SENIOR CERTIFICATE EXAMINATIONS/ NATIONAL SENIOR CERTIFICATE EXAMINATIONS ACCOUNTING P1 MAY/JUNE 2025 MARKS: 150 TIME: 2 hours This question paper consists of 12 pages, a formula sheet and a 10-page answer book. Copyright reserved Please turn over ### Page 2 Accounting/P1 2 DBE/May/June 2025 SC/NSC Confidential KEEP THIS PAGE BLANK. Copyright reserved Please turn over ### Page 3 Accounting/P1 3 DBE/May/June 2025 SC/NSC Confidential INSTRUCTIONS AND INFORMATION Read the following instructions carefully and follow them precisely. 1. Answer ALL 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. 2025 QUESTION TOPIC MARKS MINUTES 1 Company Financial Statements 50 40 Fixed Assets, Cash Flow Statement and 2 45 35 Financial Indicators 3 Interpretation of Financial Information 40 30 4 Corporate Governance 15 15 TOTAL 150 120 Copyright reserved Please turn over ### Page 4 Accounting/P1 4 DBE/May/June 2025 SC/NSC Confidential QUESTION 1: COMPANY FINANCIAL STATEMENTS (50 marks; 40 minutes) EBONY LTD The information relates to the financial year ended on 28 February 2025. The company sells various car accessories and also services customers' vehicles. REQUIRED: 1.1 Prepare the Statement of Comprehensive Income for the financial year ended 28 February 2025. (34) 1.2 Prepare the EQUITY AND LIABILITIES section of the Statement of Financial Position as at 28 February 2025. Show workings in brackets. (16) NOTE: Some amounts are provided in the ANSWER BOOK. INFORMATION: A. Balances and/or totals, among others, that appeared in the books on: 28 Feb. 2025 29 Feb. 2024 (R) (R) Ordinary share capital 2 480 000 2 480 000 Retained income ? Loan: Oracle Bank ? Trading stock Fixed deposit: Rainbow Bank 620 000 620 000 Provision for bad debts ? 19 230 SARS: Income tax (provisional tax payments) 363 100 Creditors' control 420 358 Prepaid expenses 8 520 Bank overdraft ? Sales 12 171 200 Cost of sales ? Salaries and wages 763 000 Depreciation 285 860 Service fee income 174 580 Audit fees 75 168 Rent income 72 960 Directors' fees 1 595 385 Trading stock deficit 22 150 Interest income ? Interest expenses ? Sundry expenses 710 000 Ordinary share dividends (interim dividends) 372 000 Copyright reserved Please turn over ### Page 5 Accounting/P1 5 DBE/May/June 2025 SC/NSC Confidential B. The following adjustments must still be taken into account: • Stocktaking on 28 February 2025 reflected a trading stock deficit of R22 150. This deficit was calculated without considering the following: Merchandise of R31 200, returned by M Vrede, a debtor, on 28 February 2025, was not recorded. The goods returned were placed back into stock. Ebony Ltd maintains a consistent mark-up of 60% on all goods. • Audit fees still owing, R18 792. • Provision for bad debts must be decreased to R17 200. • The company rented out part of its premises on 1 July 2024. Rent has been received up to 30 June 2025. • Ebony Ltd had two directors, each earning the same fee at the beginning of the financial year. A third director was appointed on 1 September 2024, earning a monthly fee of R5 445 less than the existing directors. All the directors were paid their fees for March 2025. C. A supplier, Midrand Tyres, was paid R22 750. This amount was incorrectly debited to the Debtors' Control Account. This must be corrected. D. Loan: Oracle Bank • Extract from the annual loan statement for the year ended 28 February 2025: Monthly payments, including interest: R27 500 • The capital repayment on the loan for the past financial year was R126 600.This will remain the same until the loan is fully repaid. E. Income tax • Income tax is calculated at 30% of the net profit. • The correct income tax for the year was R397 800. F. Share capital and dividends • The company had 1 550 000 shares in issue on 1 March 2024. • On 31 July 2024, interim dividends were paid. • A final dividend of 19 cents per share was declared on 28 February 2025. It must be brought into account. NOTE: No shares were issued or repurchased during the year. G. Information calculated at the end of the financial year after all adjustments had been taken into account: Total assets R5 214 000 Solvency ratio 2,4 : 1 50 Copyright reserved Please turn over ### Page 6 Accounting/P1 6 DBE/May/June 2025 SC/NSC Confidential QUESTION 2: FIXED ASSETS, CASH FLOW STATEMENT AND FINANCIAL INDICATORS (45 marks; 35 minutes) The information relates to Premier Ltd for the financial year ended 28 February 2025. REQUIRED: 2.1 Refer to information D. Calculate the missing figures indicated by (i) to (iii) on the Fixed Asset Note. (12) 2.2 Calculate the following figures for the Cash Flow Statement: • Taxation paid (4) • Dividends paid (4) 2.3 Complete the 'Cash effects from financing activities' in the Cash Flow Statement. (8) 2.4 Calculate the following financial indicators on 28 February 2025: • % operating expenses on sales (3) • % return on average shareholders' equity (4) • Dividends per share (4) 2.5 According to the Fixed Asset Note (see Information D), the company completed extensions to the building for R7 909 600 during the financial year. • Name TWO major sources of funding for the extensions, with figures (over R2 000 000 each). (4) • For each source, state how the cash flow will be affected negatively in the future. State ONE different point for each source. (2) Copyright reserved Please turn over ### Page 7 Accounting/P1 7 DBE/May/June 2025 SC/NSC Confidential INFORMATION: A. Extract: Statement of Comprehensive Income for the year ended 28 February 2025: Sales 26 480 000 Operating expenses 4 667 600 Interest expenses 222 400 Net profit before tax 6 200 000 Income tax 1 736 000 Net profit after tax 4 464 000 B. Extract: Statement of Financial Position on: Assets 28 Feb. 2025 29 Feb. 2024 Non-current assets 19 157 500 12 293 000 Fixed assets 17 877 500 10 493 000 Fixed deposit 1 280 000 1 800 000 Current assets 12 842 000 9 020 000 Inventories Debtors' control 1 580 000 1 740 000 SARS: Income tax 220 000 0 Cash and cash equivalents Total assets 31 999 500 21 313 000 Equity and liabilities Ordinary shareholders' equity 22 556 000 14 913 000 Ordinary share capital 13 950 000 Retained income 963 000 Non-current liabilities 6 513 500 2 780 000 Current liabilities 2 930 000 3 620 000 Trade and other payables 1 530 000 2 632 000 SARS: Income tax 0 148 000 Shareholders for dividends 1 400 000 840 000 Total equity and liabilities 31 999 500 21 313 000 C. Shares and dividends: • The company had 3 000 000 shares in issue on 1 March 2024. • 1 050 000 new shares were issued on 30 June 2024, R6 300 000. • An interim dividend of 32 cents per share was paid on 31 August 2024. • 50 000 shares were repurchased for R3,50 more than the average share price on 31 October 2024. • Final dividend was declared on 28 February 2025. Copyright reserved Please turn over ### Page 8 Accounting/P1 8 DBE/May/June 2025 SC/NSC Confidential D. Fixed Asset Note to the Statement of Financial Position: BUILDINGS VEHICLES EQUIPMENT FIXED ASSETS (R) (R) (R) Carrying value (1 Mar. 2024) (i) 1 473 000 1 450 000 Cost 3 223 000 2 630 000 Accumulated depreciation 0 (1 750 000) (1 180 000) Movements Additions 7 909 600 0 320 000 Disposals 0 (ii) 0 Depreciation 0 (iii) Carrying value (28 Feb. 2025) 15 479 600 Cost Accumulated depreciation 0 Additional information in respect of fixed assets: • Extensions to the buildings were completed during the financial year. • An old vehicle was sold at carrying value on 30 September 2024. The cost price of this vehicle was R510 000 and its accumulated depreciation on 1 March 2024 was R330 000. • Vehicles are depreciated at 20% p.a. on carrying value. • Additional equipment was purchased on 1 December 2024. • Equipment is depreciated at 15% p.a. on cost. 45 Copyright reserved Please turn over ### Page 9 Accounting/P1 9 DBE/May/June 2025 SC/NSC Confidential QUESTION 3: INTERPRETATION OF FINANCIAL INFORMATION (40 marks; 30 minutes) VENUS LTD The information relates to Venus Ltd for the financial year ended 28 February 2025. BACKGROUND INFORMATION: Denzel Crous was appointed as the chief financial officer (CFO) on a 2-year contract which will be reviewed on 31 August 2025. He is also a shareholder in Venus Ltd. NOTE: Where comments or explanations are required, you should: • Quote financial indicators and trends with figures • Give a reason or an explanation for the financial indicators quoted INFORMATION: 3.1 Choose the correct word from those given in brackets. Write only the word next to the question numbers (3.1.1 to 3.1.3) in the ANSWER BOOK. 3.1.1 Effective control of expenses in the business is a reflection of (risk/profitability). 3.1.2 When a company is liquidated, the shareholders' liability will be (limited/unlimited), as they will not be held responsible for company debts. 3.1.3 (Solvency/Liquidity) is the ability of the business to pay off all its debts using existing assets. (3 x 1) (3) 3.2 Liquidity: The liquidity position of the company has improved. Quote TWO financial indicators with figures to support this statement. (4) 3.3 Dividend pay-out policy: • Calculate the dividend pay-out rate for the year ended 28 February 2025. (2) • Explain why the directors decided to change the policy. Give ONE reason. (2) Copyright reserved Please turn over ### Page 10 Accounting/P1 10 DBE/May/June 2025 SC/NSC Confidential 3.4 % shareholding and repurchase decision-making: • Calculate the number of new shares that Denzel purchased on 31 July 2024. (4) • Calculate Denzel's % shareholding on 28 February 2025. (3) • The independent auditor discovered that Denzel had made the decision to repurchase the shares from the estate of a deceased relative on 1 December 2024 without informing the board of directors. Why should the independent auditor be concerned about this? Give ONE reason. (2) 3.5 Gearing and risk: • The directors of Venus Ltd want to expand the business by opening more branches in other provinces. Explain why you would recommend that they should not borrow more money. Quote TWO financial indicators, with figures. (6) • The other option of financing the proposed expansions is to issue more shares. Explain how this will benefit the company. Provide TWO points. (4) 3.6 Share value: Explain why the shareholders should not be satisfied with the share prices of the company at the end of the financial year. Quote TWO relevant financial indicators and other related data. (4) 3.7 Renewal of the CFO's contract: • Explain ONE reason why any company should appoint a suitably qualified person as their chief financial officer (CFO). (2) • Apart from the factors and financial indicators covered in QUESTIONS 3.2 to 3.6, quote and explain TWO financial indicators why you feel that Denzel's contract should not be renewed. (4) Copyright reserved Please turn over ### Page 11 Accounting/P1 11 DBE/May/June 2025 SC/NSC Confidential INFORMATION: A. Financial indicators calculated: 28 Feb. 2025 29 Feb. 2024 % operating expenses on sales 18,3% 22,7% Current ratio 1,6 : 1 0,3 : 1 Acid-test ratio 0,8 : 1 0,1 : 1 Debtors' collection period 36 days 43 days Creditors' payment period 63 days 63 days Solvency ratio 2,2 : 1 2,6 : 1 Debt-equity ratio 0,8 : 1 0,5 : 1 Return on average capital employed 8,2% 9,5% Return on average shareholders' equity 4,5% 6,2% Earnings per share 51 cents 58 cents Dividends per share 55 cents 35 cents Dividend pay-out rate ? 60,3% Net asset value per share 1 025 cents 1 060 cents B. Additional information: 28 Feb. 2025 29 Feb. 2024 Market price per share 1 000 cents 1 030 cents Interest rate on loans 12% p.a. 12% p.a. Interest rate on investments 7% p.a. 7% p.a. C. Shares of Venus Ltd: Number of shares In issue: on 29 February 2024 900 000 on 28 February 2025 950 000 New shares issued on 31 July 2024 at R10,50 each 125 000 Repurchased on 1 December 2024 at R12,00 each 75 000 D. Shareholding of Denzel Crous in Venus Ltd: % shareholding on 29 February 2024 45% Number of shares owned on 28 February 2025 494 000 40 Copyright reserved Please turn over ### Page 12 Accounting/P1 12 DBE/May/June 2025 SC/NSC Confidential QUESTION 4: CORPORATE GOVERNANCE (15 marks; 15 minutes) 4.1 Refer to Information A. 4.1.1 Identify the type of audit report that Yungs Ltd received. (1) 4.1.2 Name TWO reliable types of audit evidence that VC Auditors used as the basis for their opinion. (2) 4.1.3 Explain how this audit report could have a positive influence on the company in the future. Provide TWO points. (4) 4.2 Refer to Information B. 4.2.1 What action would Vintage Ltd have taken against the two directors who appeared in court? Provide TWO points. (4) 4.2.2 Explain TWO consequences that Josh, the external auditor, may face for his illegal conduct. (4) INFORMATION: A. Extract from an audit report issued by VC Auditors to Yungs Ltd, one of their clients: Opinion In our opinion the financial statements fairly present, in all material respects, the financial position and cash flows of Yungs Ltd as at 28 February 2025. It was set in accordance with International Financial Reporting Standards (IFRS) and complied with the requirements of the Companies Act, 2008 (Act 71 of 2008) of South Africa. Basis for Opinion The audit evidence obtained is sufficient, reliable and appropriate to provide a basis for our opinion. B. Extract from a newspaper article about Vintage Ltd, another client of VC Auditors: An external independent auditor from VC Auditors, Josh Peters, was implicated in a corruption court case against two directors of Vintage Ltd. These directors allegedly paid bribe money to Josh to ensure that favourable reports were issued by VC Auditors, on the performance of Vintage Ltd, although the company is close to bankruptcy. 15 TOTAL: 150 Copyright reserved ### Page 13 Accounting/P1 DBE/May/June 2025 SC/NSC Confidential 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 & other receivables + Cash & 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. 365 days is applicable only if relevant to the whole year. 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. 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