# Accounting Grade 12 P1 Eastern Cape Mock 2025 QP (Eng) > Grade 12 Accounting Paper 1 question paper from the Eastern Cape Mock Exam 2025 (English), 11 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/accounting-p1-qp-gr12-sept-2025-eng-watermark/55607f80-137e-4dc6-861d-39eae6981dd2 - Updated: 2026-09-27 - Subject: Accounting - Grade: Grade 12 - Document type: Question paper - Year: 2025 - Exam period: Eastern Cape Mock Exam - Paper: 1 - Curriculum: CAPS - Pages: 11 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 Mock 2025 QP (Eng)](https://www.hlayiso.com/library/accounting-p1-qp-gr12-sept-2025-eng-watermark/55607f80-137e-4dc6-861d-39eae6981dd2) ## About this document Accounting · Grade 12 · Eastern Cape Mock Exam · 2025. Question paper, 11 pages. 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 NATIONAL SENIOR CERTIFICATE GRADE 12 SEPTEMBER 2025 ACCOUNTING P1 MARKS: 150 TIME: 2 hours This question paper consists of 11 pages including a formula sheet and a 9-page answer book. ### Page 2 2 ACCOUNTING P1 (EC/SEPTEMBER 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 the 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 the 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. QUESTION TOPIC MARKS MINUTES Calculation of correct net profit and 1 60 45 Statement of Financial Position Notes to Financial Statements, Cash Flow 2 40 30 Statement and Financial Indicators 3 Interpretation of Financial Statements 35 30 4 Corporate Governance 15 15 TOTAL 150 120 Copyright reserved Please turn over ### Page 3 (EC/SEPTEMBER 2025) ACCOUNTING P1 3 QUESTION 1: CALCULATION OF NET PROFIT AND STATEMENT OF FINANCIAL POSITION (60 marks; 45 minutes) 1.1 Choose the correct word or term from the list given which best suits each statement below. Write only the word or term next to the question numbers (1.1.1 to 1.1.4) in the ANSWER BOOK. Independent auditor; Capital employed; Current liabilities; Financial assets 1.1.1 Investments such as fixed deposit over a three-year period. 1.1.2 Expresses an unbiased opinion on the reliability of financial statements. 1.1.3 Total of ordinary Shareholders’ Equity and non-current liabilities. 1.1.4 Debts to be settled within 12 months. (4 x 1) (4) 1.2 LIZZY LTD. The information relates to the financial year ended on 28 February 2025. The business sells luxurious electrical items. REQUIRED: 1.2.1 Refer to Information B (i) Calculate profit/loss on sale of vehicle. (4) 1.2.2 Refer to information B (vi) Calculate the value of closing stock of electrical plugs using the weighted-average method. (5) 1.2.3 Refer to Information A to C Use the table provided to calculate the correct net profit after tax for the year ended 28 February 2025. Indicate ‘+’ for increase and ‘–’ for decrease at each adjusted amount. (17) 1.2.4 Complete the Statement of Financial Position on 28 February 2025. (30) NOTE: • Some amounts have been entered in the ANSWER BOOK. • Figures are NOT required in the shaded areas. • Show workings. Copyright reserved Please turn over ### Page 4 4 ACCOUNTING P1 (EC/SEPTEMBER 2025) INFORMATION: A. Extract: Balances and totals from the records on 28 February 2025: R Ordinary share capital 5 800 000 Retained income (1 March 2024) 384 000 Fixed assets at carrying value 3 022 400 Trading stock 1 620 000 Debtors’ control 688 200 SARS: Income Tax (provisional tax payments) 870 000 Bank (favourable) ? Creditors’ Control 896 150 Loan: Lubbe Bank 640 500 Provision for bad debts (1 March 2024) 30 450 Sales 13 680 250 Consumable stores used 60 800 Advertising 87 200 Bad debts 38 550 Rent income 216 000 Directors fees 665 000 Ordinary share dividends 404 000 B. The net profit before tax, R3 825 850, was calculated before taking the following into account: (i) • On 1 December 2024, an old vehicle was traded-in for a new vehicle valued at R180 000. The trade-in value received was R125 500. The amount received was recorded but no further entries were made regarding the sale and depreciation. • Details of the vehicle sold on 1 March 2024: Carrying value R148 000 • Depreciation on vehicles is written off at 15% on the diminished-balance method. (ii) Creditors with debit balances of R10 550 on 28 February 2025 must be transferred to the Debtors Ledger. Provision for bad debts should be adjusted to 4% of debtors. (iii) The company donated goods to a local orphanage. A gross profit of R12 000 was going to be made had these goods been sold. The company uses a mark-up of 80% on cost. (iv) Advertising includes a six months premium of R18 600 paid on 1 November 2024. (v) A debtor who had previously been written off transferred R4 500 via an EFT. Copyright reserved Please turn over ### Page 5 (EC/SEPTEMBER 2025) ACCOUNTING P1 5 (vi) The following stock-sheet relates to electric plugs. It was omitted when the final stock figures were calculated. Units Unit Total value price (incl. carriage) Opening stock: 1 March 2024 800 174 400 Purchases during the year: May: 2 300 R218 501 400 September: 2 000 R220 440 000 Closing stock 1 250 ? ? Stock sent back to the supplier from May purchases (refund includes transportation) 100 ? (vii) It was agreed to increase rent by 5% on 1 December 2024. According to the agreement, a deposit of R8 000 is paid before the tenant occupies the building. The deposit was received but not recorded. Rent for March 2025 was received and recorded. The lease agreement starts from 1 May 2024. C. R130 000 was still owed to SARS for income tax on 28 February 2025. D. Only 80% of consumable stores were used during the year. E. The following financial indicator was calculated on 28 February 2025: • Current ratio: 2 : 1 F. Share Capital and dividends: • The company is registered with an authorised share capital of 2 000 000 ordinary shares. • On 31 August 2024, the directors decided to buy back 20 000 shares at R1,80 more than the average price. • On 28 February 2025, only 80% of the authorised shares were in issue. • A final dividend was declared on 28 February 2025. • Total dividends for the year amounted to R1 044 000. G. Loan: Lubbe Bank The loan statement received from Lubbe Bank on 28 February 2025 reflected the following: R Balance at the beginning of the financial year ? Repayments during the year (including interest) 289 500 Interest capitalised 79 500 Balance at the end of the year 720 000 The loan repayment schedule is expected to remain the same for the remaining term, however a notification was received from Lubbe Bank that interest rate on the loan will increase by 6% p.a. over the next financial year. 60 Copyright reserved Please turn over ### Page 6 6 ACCOUNTING P1 (EC/SEPTEMBER 2025) QUESTION 2: CASH FLOW STATEMENT AND FINANCIAL INDICATORS (40 marks; 30 minutes) 2.1 You are provided with information relating to Lubanzi Limited. The financial year-end is 30 June 2025. REQUIRED: 2.1.1 Complete the Ordinary share capital note. (7) 2.1.2 Complete the Cash Flow Statement for the year ended 30 June 2025. Show all workings in brackets. (22) 2.2 Calculate the following financial indicators on 30 June 2025: 2.2.1 Current ratio (3) 2.2.2 Dividends per share (in cents) (3) 2.2.3 Stock turn-over rate (5) INFORMATION: A. The following information was extracted from the Statement of Comprehensive Income for the year ended 30 June 2025: Sales 5 950 000 Gross profit 2 700 000 Interest expense 120 100 Depreciation 196 700 Net profit after tax 1 160 600 NOTE: The income tax rate is 30%. Copyright reserved Please turn over ### Page 7 (EC/SEPTEMBER 2025) ACCOUNTING P1 7 B. Extract from the Statement of Financial Position on 30 June: 2025 2024 Fixed/tangible assets @ carrying value 5 445 900 5 040 600 Investments: Ugie’s Bank ? 540 000 Current assets 4 180 200 2 892 800 Inventories (all stock) 1 120 900 970 100 Trade and other receivables 490 700 520 600 Cash and cash equivalents 944 000 119 500 Ordinary shareholder’s equity ? Ordinary share capital (see H.) ? 3 800 000 Retained Income 956 000 871 050 Loan: Bayern Bank (12,5% p.a.) 3 840 000 ? Current liabilities 1 678 900 1 544 700 Trade and other Payables 1 223 000 1450 000 Shareholders for dividends 212 500 198 000 Bank overdraft 0 419 800 C. Fixed assets on 30 June: • A vehicle was sold at carrying value for R60 800 cash during the year. This transaction was correctly recorded. • Extensions to land and buildings were completed during the year. D. Fixed deposit: Ugie’s Bank One third of the fixed deposit matured on 1 June 2025. E. Trade and other receivables on 30 June 2024 include a balance of R49 800 owed by SARS. F. Trade and other payables on 30 June 2025 include a balance of R52 500 owed to SARS. G. Loan: Bayern Bank Transactions during the year: • Repayments including interest amounted to R890 500. • Interest capitalised was R475 500. H. Ordinary share capital and dividends: • 760 000 shares were in issue on 1 July 2024. • On 1 September 2024, 150 000 additional shares were issued. • Interim dividends of R182 000 were paid on 28 February 2025. • A total amount of R600 000 was paid on 30 June 2025 to repurchase 60 000 shares from a disgruntled shareholder. This was 25% above the average issue price. • A final dividend was declared on 30 June 2025. 40 Copyright reserved Please turn over ### Page 8 8 ACCOUNTING P1 (EC/SEPTEMBER 2025) QUESTION 3: INTERPRETATION OF FINANCIAL INFORMATION (35 marks; 30 minutes) NOBLE LTD You are provided with information relating to Noble Ltd. Their financial year ends on the last day of February each year. REQUIRED: Refer to information A and B. NOTE: Where comments or explanations are required, you should: • Quote financial indicators and trends with figures • Give a reason or explanation for the financial indicators quoted 3.1 Dividends, earnings and returns: In 2025 the directors decided to change the policy on distribution of profits in the form of dividends. • Do a calculation to illustrate the policy change. (2) • Comment on the effect of this change of policy on the company. State TWO points. (4) 3.2 The company CEO, Iris Chris, wants to share good news to the shareholders at the AGM. Give advice on what he should say about the following topics: • % return earned (3) • Earnings per share (2) • Share price on the JSE (4) 3.3 Financing strategies and gearing: • Comment on the degree of risk and gearing of the company. (6) The directors are planning to acquire new fixed assets to expand company operations in the next financial year. • Some directors are of the opinion that taking out an additional loan is a better choice than issuing additional shares. Explain why they feel this way. Mention THREE points. (6) Copyright reserved Please turn over ### Page 9 (EC/SEPTEMBER 2025) ACCOUNTING P1 9 3.4 Share capital and % shareholding: Refer to information B Lihle and Sono decided that they want to combine their votes in the next annual general meeting (AGM). ● Explain with figures why would they take this decision. (4) ● As an existing shareholder in the company, explain why you would be concerned about their decision. State TWO points. (4) INFORMATION: A. Financial indicators, market prices and interest rates on 28 February 2025: 2025 2024 Mark-up percentage 55% 50% Current ratio 2,4 : 1 1,5 : 1 Acid-test ratio 1,8 : 1 1,2 : 1 Solvency ratio 3,0 : 1 2,5 : 1 Earnings per share 112 cents 101 cents Dividends per share 60 cents 89 cents Debt-equity ratio 0,27 : 1 0,5 : 1 Stock-holding period 41 days 63 days % return on average shareholders’ equity 19,1% 12,9% % return on average capital employed 20,2% 16% Net asset value per share 675 cents 550 cents Additional information on 28 February. Interest rate on loan 13,0% 13,0% Interest rate on investment 7,5% 7% Market price per share 885 c 425 c B. Extract from shareholders’ register: Lihle and Sono are shareholders in the company. The following information relates to the shares they own. 2025 2024 Shares in issue 2 400 000 2 000 000 Shares owned by Lihle 552 000 420 000 Shares owned by Sono 672 000 460 000 35 Copyright reserved Please turn over ### Page 10 10 ACCOUNTING P1 (EC/SEPTEMBER 2025) QUESTION 4: CORPORATE GOVERNANCE (15 marks; 15 minutes) 4.1 AUDIT REPORTS Choose the audit opinion from COLUMN B that describes the audit report in COLUMN A. Write only the letter (A–C) next to the question numbers (4.1.1 to 4.1.3) in the ANSWER BOOK. COLUMN A COLUMN B 4.1.1 Qualified A We were not able to obtain sufficient evidence audit report to provide for an audit opinion. Accordingly, we do not express an opinion on the financial statements of Orion Ltd for the year ended. 4.1.2 Unqualified B Except for the effect of the unauthorized CFO audit report trip expenditure to Mauritius, the annual financial statements present fairly, in all material respects, the financial position of Swiss Ltd. 4.1.3 Disclaimer of C The annual financial statements fairly present, opinion in all material respects, the financial position of Latino Ltd. (3) 4.2 Different parties would be interested in the financial statements of a company and its audit opinion. • Name any TWO of these parties and explain why they would be interested. (4) 4.3 Extract from an article in the Other News: Mr Simon Sizzle, one of the non-executive directors expressed a concern over the news that broke about the involvement of Mr Munster, the company CEO in dodgy deals. An investigation revealed that Mr Munster created large numbers of purchase orders outside of regular work hours, totalling to R4 million. It was also believed that the CEO received kickbacks from various suppliers. (a) Explain the difference between the roles performed by the executive and non-executive directors in a company. (4) (b) Explain your concern as a shareholder in the company regarding the CEO’s actions. (2) (c) What implications will this have on the CEO. Mention TWO points. (2) 15 TOTAL: 150 Copyright reserved Please turn over ### Page 11 (EC/SEPTEMBER 2025) ACCOUNTING P1 11 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 creditors x 365 Average debtors x 365 Cost of sales 1 Credit 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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