# Accounting Grade 11 P2 National November 2019 QP (Eng) > Grade 11 Accounting Paper 2 question paper from the National November 2019 (English), 13 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/accounting-p2-gr-11-exemplar-nov-2019-eng/631a1104-d2ff-427d-8dc9-a0030825a914 - Updated: 2026-09-27 - Subject: Accounting - Grade: Grade 11 - Document type: Question paper - Year: 2019 - Exam period: National November - Paper: 2 - Curriculum: CAPS - Pages: 13 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 11](https://www.hlayiso.com/library/grade-11) › [Accounting](https://www.hlayiso.com/library/grade-11/accounting) › [Accounting Grade 11 P2 National November 2019 QP (Eng)](https://www.hlayiso.com/library/accounting-p2-gr-11-exemplar-nov-2019-eng/631a1104-d2ff-427d-8dc9-a0030825a914) ## About this document Accounting · Grade 11 · National November · 2019. Question paper, 13 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 Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE GRADE 11 ACCOUNTING P2 EXEMPLAR NOVEMBER 2019 MARKS: 150 TIME: 2 hours This question paper consists of 12 pages, a 1-page formula sheet and an 11-page answer book. Copyright reserved Please turn over ### Page 2 Downloaded from hlayiso.com Accounting/P2 2 DBE/November 2019 NSC – Grade 11 Exemplar 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 FORMULA SHEET for financial indicators is attached to this question paper. You may use it if necessary. 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 1: 40 marks; 30 minutes Topic of the question: This question integrates: Concepts and calculations VAT and reconciliation Creditors' Reconciliation Internal control QUESTION 2: 45 marks; 40 minutes Topic of the question: This question integrates: Concepts Manufacturing Ledger Accounts Interpretation of unit costs QUESTION 3: 40 marks; 30 minutes Topic of the question: This question integrates: Concepts Debtors' Collection Schedule Budgets Cash Budget Internal control QUESTION 4: 25 marks; 20 minutes Topic of the question: This question integrates: Analysis and interpretation of cash, stock, debtors Control of working capital and creditors Copyright reserved Please turn over ### Page 3 Downloaded from hlayiso.com Accounting/P2 3 DBE/November 2019 NSC – Grade 11 Exemplar QUESTION 1: VAT AND RECONCILIATION (40 marks; 30 minutes) 1.1 VAT Monde Stores, owned by Tom Monde, has been registered for VAT on a one- month period. You have been provided with the information from the journals for August 2019. The VAT rate is 15%. REQUIRED: 1.1.1 Explain what is meant by value-added tax. (2) 1.1.2 Calculate the following: (a) Sales amount (excluding VAT) from the CRJ (3) (b) VAT input amount from the CPJ (3) (c) VAT output amount from the DJ (2) 1.1.3 Tom does not have enough money in his bank account to pay SARS for VAT. The bank balance is currently in overdraft at approximately R50 000. What advice would you offer Tom in order to:  Solve the problem now  Solve the problem in the future (4) INFORMATION FROM THE JOURNALS: A. Cash Receipts Journal R Total of Sales column Total of Debtors' Control column 420 000 Total of Sundry Accounts column 0 Total of VAT Output column 141 300 B. Cash Payments Journal R Total of Trading Stock column 248 000 Total of Creditors' Control column 494 000 Total of Sundry Accounts column (all equipment) 580 000 C. Debtors' Journal R Sales (excluding VAT) 345 000 Copyright reserved Please turn over ### Page 4 Downloaded from hlayiso.com Accounting/P2 4 DBE/November 2019 NSC – Grade 11 Exemplar 1.2 CREDITORS' RECONCILIATION AND INTERNAL CONTROL Madi Traders buys goods on credit from Pine Suppliers. The business received a statement for April 2019 from the creditor. REQUIRED: 1.2.1 Explain how the Creditors' Reconciliation Statement can assist the business in terms of their internal control measures. State ONE point. (2) 1.2.2 Calculate the correct balance of Pine Suppliers in the Creditors' Ledger Account of Madi Traders. Show the changes to the figure R117 180. (10) 1.2.3 Prepare a Creditors' Reconciliation Statement for Pine Suppliers on 30 April 2019. (10) 1.2.4 The owner of Madi Traders is not completely satisfied with the service and quality of goods received from Pine Suppliers. State TWO factors that he should consider before changing suppliers. (4) INFORMATION: A. Creditors' Ledger of Madi Traders PINE SUPPLIERS (CL1) DATE DEBIT CREDIT BALANCE 2019 01 Balance 44 220 April 05 Interest 780 45 000 08 Invoice 153 54 000 99 000 10 Cheque 1449 22 500 76 500 12 Debit note 746 5 760 70 740 15 Invoice 111 27 300 98 040 17 Invoice 214 91 500 189 540 21 Invoice 273 20 250 209 790 24 Debit note 966 5 400 215 190 27 Journal voucher 490 3 600 211 590 31 Cheque 2346 93 000 118 590 Discount 1 410 117 180 Copyright reserved Please turn over ### Page 5 Downloaded from hlayiso.com Accounting/P2 5 DBE/November 2019 NSC – Grade 11 Exemplar B. Statement received on 30 April 2019: PINE SUPPLIERS PO Box 159, Pretoria, 0001 Tel.: 012 348 2340 Madi Traders Date: 25 April 2019 PO Box 3131 Credit limit: R90 000 Shayas, 0945 Payment terms: 60 days Interest on overdue accounts: 6% DATE DEBIT CREDIT AMOUNT 2019 01 Account rendered 44 220 April 05 Interest 780 45 000 08 Invoice 153 54 000 99000 10 Receipt 491 22 500 76 500 Discount 480 76 020 12 Credit note 511 6 570 69 450 17 Invoice 214 91 500 160 950 19 Receipt 654 84 000 76 950 21 Invoice 273 50 250 127 200 24 Credit note 632 5 400 121 800 C. Additional information: (a) The discount of R480 received from Pine Suppliers on 10 April 2019 was omitted erroneously in the books of Madi Traders. (b) Invoice 111 was reflected erroneously in the account of Pine Suppliers in the Creditors' Ledger of Madi Traders. It refers to merchandise purchased from another supplier, Pilot Suppliers. (c) Goods returned on 12 April 2019 were recorded correctly in the statement from Pine Suppliers. The entry in the books of Madi Traders is incorrect. (d) Pine Suppliers made an error in the recording of Invoice 273 on the statement. (e) Receipt 654 was shown erroneously in the statement from Pine Suppliers. This transaction does not relate to Madi Traders and will be rectified in the next statement. (f) Pine Suppliers also purchases goods on credit from Madi Traders. Refer to Journal Voucher 490. Madi Traders has transferred a debit balance from the Debtors' Ledger. This entry has not been recorded by Pine Suppliers. (g) The transaction on 24 April 2019 is in respect of merchandise returned to Pine Suppliers. (h) The statement shows transactions up to 25 April 2019. 40 Copyright reserved Please turn over ### Page 6 Downloaded from hlayiso.com Accounting/P2 6 DBE/November 2019 NSC – Grade 11 Exemplar QUESTION 2: MANUFACTURING (45 marks; 40 minutes) 2.1 Give ONE term for each of the following descriptions by choosing a cost category from the list below. Write only the cost category next to the question numbers (2.1.1 to 2.1.4) in the ANSWER BOOK. selling and distribution cost; direct labour cost; direct material cost; administration cost; factory overhead cost 2.1.1 Salary of the factory foreman 2.1.2 Bad debts 2.1.3 Stationery and telephone expenses 2.1.4 Wages paid to workers in the production process (4) 2.2 GALANE MANUFACTURERS Galane Manufacturers manufacture towels. The information below is from their financial records for the financial year ended 28 February 2019. REQUIRED: Use the information provided to complete the following accounts in the General Ledger: 2.2.1 Work-in-Progress Stock Account (10) 2.2.2 Finished Goods Stock Account (7) 2.2.3 Factory Overhead Account (15) INFORMATION: A. Balances taken from the records of Union Manufactures: 28 February 2019 1 March 2018 R R Factory indirect material 2 630 3 480 Work-in-progress stock 38 300 33 150 Finished goods stock 34 100 15 250 Copyright reserved Please turn over ### Page 7 Downloaded from hlayiso.com Accounting/P2 7 DBE/November 2019 NSC – Grade 11 Exemplar B. Summary of transactions for the year ended 28 February 2019 R Raw materials purchased (all issued to factory) 516 000 Factory indirect materials purchased 21 560 Direct labour ? Indirect labour 24 350 Factory manager's salary 65 060 Rent expense 39 200 Insurance 8 700 Water and electricity 16 500 Bad debts 2 980 Sundry factory expenses 25 750 Sales net of trade discount 1 800 000 C. Additional Information: (a) The mark-up % used in pricing goods is 60%. Trade discounts of R100 000 were granted. (b) Raw materials:  R16 000 was paid for transporting raw materials.  Raw materials were returned to the suppliers, R20 000. NOTE: No entry has been recorded for these items. (c) Two-thirds of the insurance expense relates to the factory. (d) Water and electricity must be allocated to the factory, sales department and the office in the ratio 4 : 1 : 1 respectively. (e) 65% of the rent expense must be allocated to the factory. 2.3 MOTHO SHOE FACTORY Motho Shoe Factory manufactures one type of sport shoes. The factory produced 13 800 pairs of shoes during the year and all pairs were sold. There was no work-in-progress stock at the beginning nor at the end of the year. 2.3.1 Calculate the direct material cost per unit. (2) 2.3.2 Calculate the break-even point on 31 May 2019. (4) 2.3.3 Explain why the owner would NOT be happy with the business' current production level. Quote figures or indicators. (3) R Direct material cost 2 070 000 Direct labour cost 2 992 000 Factory overhead cost 872 000 Fixed costs 1 514 000 Variable cost per unit 155 Sales per unit (pair) 259 45 Copyright reserved Please turn over ### Page 8 Downloaded from hlayiso.com Accounting/P2 8 DBE/November 2019 NSC – Grade 11 Exemplar QUESTION 3: BUDGETS (40 marks; 30 minutes) You are provided with an incomplete Debtors' Collection Schedule and an extract from the Cash Budget of Cosmo Traders for three months ending 31 December 2019. The owner is Kagiso Cosmo. REQUIRED: 3.1 Answer the following questions: 3.1.1 What is the main purpose of preparing the Cash Budget? (2) 3.1.2 Name TWO items that will appear in the Cash Budget, but NOT in the Projected Income Statement. (2) 3.1.3 Name TWO items that will appear in a Projected Income Statement, but NOT in the Cash Budget. (2) 3.2 Complete and total the Debtors' Collection Schedule for November and December 2019. (9) 3.3 Calculate the missing figures indicated by A–G in the Cash Budget. Refer to information (a) to (f) below. (15) 3.4 To increase sales and the number of customers, Kagiso intends to advertise that credit limits for all credit customers will be increased to R40 000 and new customers may open accounts during January 2020. Explain TWO factors that Kagiso should consider before increasing credit limits. (2) 3.5 Refer to additional information (g) regarding deliveries to customers.  Provide calculations for the next three years to support your opinion.  Explain TWO other factors that Kagiso should consider before making a final decision.  Should the owner, Kagiso, choose Option 1 or Option 2? Give reasons. (8) Copyright reserved Please turn over ### Page 9 Downloaded from hlayiso.com Accounting/P2 9 DBE/November 2019 NSC – Grade 11 Exemplar INFORMATION: A. Debtors' Collection Schedule of Cosmo Traders for the period ending 31 December 2019: Debtors' Collection Month Credit Sales October November December (R) (R) (R) (R) August 240 000 60 000 September 360 000 144 000 October 300 000 85 500 November 330 000 December 330 000 B. Extract of the Cash Budget for 2019: October November December (R) (R) (R) RECEIPTS Cash sales ? A ? Receipts from debtors 334 250 B ? Loan from ATM Bank (12% p.a.) 180 000 PAYMENTS Cash purchases 61 950 63 150 C Payments to creditors 262 200 364 800 D Interest on loan 0 1 800 E Repayment of loan 18 000 8 000 Wages 30 000 34 375 F Advertising ? G 6 731 Rent expense 1 600 2 000 2 000 Purchase of motorbike (for deliveries) 25 000 2 100 2 100 Petrol for delivery motorbike 1 000 1 000 Additional information: (a) Expected collection from debtors:  30% of debtors settle their accounts during the transaction month of sale to receive 5% discount for prompt payment.  40% settle their accounts in the month following the transaction month.  25% settle their accounts in the second month after the transaction month.  5% are written off as irrecoverable during the third month. (b) Total sales 2019 October November December R400 000 R440 000 R440 000  75% of sales are expected to be on credit; the rest are cash. Copyright reserved Please turn over ### Page 10 Downloaded from hlayiso.com Accounting/P2 10 DBE/November 2019 NSC – Grade 11 Exemplar (c) Total purchases 2019 October November December R206 500 R210 500 R185 600  30% of all purchases are cash; the rest are on credit.  Creditors are paid two months after the purchase of stock. (d) Loan and interest on loan: The interest on the loan and the monthly loan instalments are payable at the end of each month. Interest is not capitalised and the interest rate did not change during the year. The loan was obtained on 31 October 2019. (e) Wages: In October the business will have six employees, each earning a wage of R1 250 per week. All the employees are paid their wages on Fridays. There are four Fridays in October, five Fridays in November and four Fridays in December 2019. One employee will resign on 31 October 2019 and the remaining employees will receive a 10% increase from 1 November 2019. The business plans to employ two more staff members at the same weekly wage as on 1 December 2019. (f) Advertising: The advertising budget will be increased by 6% with effect from 1 December 2019. (g) Motorbike for deliveries: The owner, Kagiso, has budgeted to deliver goods to customers. He has two options: Option 1: Purchase a motorbike from Speedy Bikes A deposit of R25 000 will be paid to the supplier in October. Monthly instalments of R2 100. Kagiso has budgeted for this, as well as R1 000 per month for monthly petrol costs. He assumes that petrol prices increase and decrease with the exchange rate and that R1 000 per month is realistic over the next three years. Option 2: DD Deliveries to deliver the goods With this option, Kagiso will not need to buy the motorbike. DD Deliveries would charge a flat rate of R4 000 per month for the delivery service for the 12 months beginning on 1 November 2019. They will increase this rate by 5% per year thereafter with effect from 1 November in 2020 and 2021. 40 Copyright reserved Please turn over ### Page 11 Downloaded from hlayiso.com Accounting/P2 11 DBE/November 2019 NSC – Grade 11 Exemplar QUESTION 4: CONTROL OF WORKING CAPITAL (25 marks; 20 minutes) You are provided with information from the records of Umgeni Furnishers for the past two financial years ended 28 February. The business sells tables and chairs. The owner, Mary Benn, requires your advice regarding the control of her working capital. Refer to the questions below and quote figures or financial indicators to support your comments. REQUIRED: 4.1 Cash in current bank account: Comment on the cash in the current bank account. What advice would you give to Mary? Provide ONE point. Quote figures. (4) 4.2 Trading stock: 4.2.1 Calculate the stockholding period for 2019. Use average stock in your calculation. (4) 4.2.2 Comment on the stock turnover rate and the stockholding period for 2019. Quote figures or indicators. Explain why she should be concerned about this. What advice would you give to Mary? Provide ONE point. (5) 4.3 Sales strategies: 4.3.1 Mary used two deliberate strategies to improve sales in 2019. Identify the TWO strategies. Quote the relevant figures. (4) 4.3.2 Bear in mind that the cost price of stock increased by the inflation rate of 6% and provide evidence that these strategies benefited the business. Quote figures. (4) 4.4 Debtors and creditors: Comment on whether or not Mary has been controlling her debtors and creditors appropriately. Quote figures. How would this affect the business? (4) Copyright reserved Please turn over ### Page 12 Downloaded from hlayiso.com Accounting/P2 12 DBE/November 2019 NSC – Grade 11 Exemplar INFORMATION: A. Figures from the Ledger: 2019 2018 Total sales R667 000 R512 000 Cash sales R220 000 R270 000 Credit sales R447 000 R242 000 Cost of sales R460 000 R320 000 Gross profit R207 000 R192 000 Fixed deposit at Ace Bank (11% p.a.) R80 000 R300 000 Cash in the current bank account R405 000 R120 000 Trading stock R170 000 R85 000 B. Financial indicators: Mark-up % 45% 60% Stock turnover rate 3,6 times 5,6 times Average stockholding period ? 66 days Average debtors' collection period 40 days 26 days Average creditors' payment period 38 days 30 days 25 TOTAL: 150 Copyright reserved Please turn over ### Page 13 Downloaded from hlayiso.com Accounting/P2 DBE/November 2019 NSC – Grade 11 Exemplar GRADE 11 ACCOUNTING: FINANCIAL INDICATOR FORMULA SHEET Gross profit x 100 Gross profit x 100 Net profit x 100 Sales 1 Cost of sales 1 Sales 1 Operating expenses x 100 Operating profit x 100 Sales 1 Sales 1 Total earnings by partner x 100 Net profit x 100 Partner's average equity 1 Average owners' equity 1 Current assets : Current liabilities (Current assets – Inventories) : Current liabilities (Trade and other receivables + Cash and cash equivalents) : Current liabilities Average debtors x 365 Average creditors x 365 Credit sales 1 Credit purchases 1 Average inventories x 365 or 12 Cost of sales . 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