# Accounting Grade 12 P2 Eastern Cape Mock 2020 Memo (English) > Grade 12 Accounting Paper 2 memorandum from the Eastern Cape Mock Exam 2020 (English), 10 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/accounting-p2-gr12-memo-sept-2020-english/b6d54b19-200a-4cbf-aaad-8df18fd74e19 - Updated: 2026-09-27 - Subject: Accounting - Grade: Grade 12 - Language: English - Document type: Memorandum - Year: 2020 - Exam period: Eastern Cape Mock Exam - Paper: 2 - 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 P2 Eastern Cape Mock 2020 Memo (English)](https://www.hlayiso.com/library/accounting-p2-gr12-memo-sept-2020-english/b6d54b19-200a-4cbf-aaad-8df18fd74e19) ## About this document Accounting · Grade 12 · Eastern Cape Mock Exam · 2020 · English. Memorandum, 10 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 P2 GR12 QP SEPT2020 English](https://www.hlayiso.com/library/accounting-p2-gr12-qp-sept2020-english/f03e0db8-e54a-430c-a3c1-424aaa129fde) — QP · 2020 · Eng ## 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 12 SEPTEMBER 2020 ACCOUNTING P2 MANAGERIAL ACCOUNTING, INTERNAL AUDITING AND CONTROL MARKING GUIDELINE MARKS: 150 MARKING PRINCIPLES: 1. Penalties for foreign items are applied only if the candidate has not lost marks elsewhere in the question for that item (no foreign item penalty for misplaced items). No double penalty applied. 2. Penalties for placement or poor presentation (e.g. details) are applied only if the candidate has earned marks on the figures for that item. 3. Full marks for correct answer. If the 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). 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. This memorandum is not for public distribution, as certain items might imply incorrect treatment. The adjustments made are due to nuances in certain questions. 8. Where penalties are applied, the marks for that section of the question cannot be a final negative. 9. Where method marks are awarded for operation, the marker must inspect the reasonableness of the answer before awarding the mark. 10. ‘Operation’ means ‘Check operation’. ‘One part correct’ means ‘Operation and one part correct’. 11. In awarding method marks, ensure that candidates do not get full marks for any item that is incorrect at least in part. In such case, do not award the method mark. Indicate by way of . 12. Be aware that some candidates provide valid alternatives beyond the memorandum. 13. Codes: f = foreign item; p = placement/presentation. This marking guideline consists of 10 pages. ### Page 2 Downloaded from hlayiso.com 2 ACCOUNTING P2 (EC/SEPTEMBER 2020) QUESTION 1 1.1 BANK RECONCILIATION BANK RECONCILIATION STATEMENT ON 31 JULY 2020 Debit Credit Balance according to Bank Statement  3 600 Outstanding deposit  15 200 Outstanding cheques No. 231  2 020 No. 235  1 570 Incorrect entry on Bank Statement  3 800 Balance according to Bank Account  11 410 18 800 18 800 8 -1 Foreign entries (max. 2) both totals 1.2 DEBTORS’ AGE ANALYSIS 1.2.1 How does the preparation of the Debtors’ Age Analysis assist in the control of debtors? It shows which debtors do not keep to their credit terms.  Action can then be taken to encourage them to pay.  Bad debts can be kept to a minimum.  3 1.2.2 How much is owed by the debtors on 31 May 2020? 4 250 + 970 + 3 500 + 3 075 + 9 635 = 21 430  2 1.2.3 Which debtor would you gladly give a credit reference? H. Hastie  2 1.2.4 Which debtor would be ‘handed over’, and what does this mean? P. Platsak.  This means the account will be handed over to an attorney who will contact the debtor and give him a certain time to pay the account. If the debtor does not pay the account, he can be sued.  3 Copyright reserved Please turn over ### Page 3 Downloaded from hlayiso.com (EC/SEPTEMBER 2020) ACCOUNTING P2 3 1.3 CREDITORS’ RECONCILIATION 1.3.1 What is the purpose of reconciling the balance on the Creditors’ Control Account with the total of the Creditors’ List from the Creditors’ Ledger? State TWO points. TWO valid points   The reconciliation of the balance on the Creditors’ Control Account and the total of the Creditors’ List is a means of internal control to ensure that no errors have been made so that the creditor is paid the correct amount and the correct amount of discount is received.  It will assist the business in detecting errors/omissions in their books.  It will show errors/omissions in the statement received.  Detect fraudulent activities and take action. 4 1.3.2 Record the errors and omissions in the given table and calculate the correct balance and total. Creditors’ Control Creditors’ List Account Preliminary balance/total R74 715 R32 595 A 900  B 3 720  3 720  C (720 – 270) (450)  D (16 400 x 2) (32 800)  E 43  43  F 8 870  Correct balance/total 45 678 * 45 678 * *one part correct 12 TOTAL MARKS 34 Copyright reserved Please turn over ### Page 4 Downloaded from hlayiso.com 4 ACCOUNTING P2 (EC/SEPTEMBER 2020) QUESTION 2 2.1 VAT CONCEPTS Change the underlined parts in the following sentences to make the statements TRUE. Write the answer next to the question number. 2.1.1 SARS / South African Revenue Service   2.1.2 Zero / 0%  2 2.2 VAT CALCULATIONS Calculate the correct amount of VAT the business has to pay. Show ALL workings. 43 820  + (1 413  + 2 790 + 756 + 112 ) – (6 818 + 184 ) 5 071 (6 marks) 7 002 (3 marks) = 41 889 One part correct OR 43 820 + 1 413 + 2 790 + 756 + 112 – 6 818 – 184 OR -43 820 – 1 413 – 2 790 – 756 - 112 + 6 818 + 184 VAT CONTROL 6 818 43 820 184 1 413 41 889 2 790 756 112 48 891 48 891 12 2.3 INVENTORY VALUATION 2.3.1 Calculate the following in respect of the ladies’ watches on 31 August 2020. (a) Value of closing stock 1 x 6 500 5 x 6 800 2 x 7 300 3 x 7 800 6 500  + 34 000  + 14 600  + 23 400  = 78 500  One part correct (1 + 5 + 2 + 3 = 11 units) / 47 – 36 = 11 5 (b) Cost of sales OR 330 000 two marks 78 000  + 252 000  – 78 500  (see above) 71 500 (11 x 6 500) 68 000 (10 x 6 800) = 251 500  One part correct 73 000 (10 x 7 300) OR 39 000 (05 x 7 800) 251 500 440 125 x 100/175 = 251 500 (1 mark) (2 marks) (1 mark) (1 w/w) 5 Copyright reserved Please turn over ### Page 5 Downloaded from hlayiso.com (EC/SEPTEMBER 2020) ACCOUNTING P2 5 (c) Stock-holding period (in days) using average stock 78 250 2 marks see 2.3.1 (a) ½ (78 000 + 78 500) x 365 = 113,6 days  One part correct 251 500  see 2.3.1 (b) Accept 114 days 4 2.3.2 Calculate the following in respect of the men’s watches on 31 August 2020: (a) Value of closing stock 304 150 (3 marks) 32 300 + 259 900  + 11 950  95 + 675  770 (2 marks) = 395 395 x 92  = 36 340  One part correct 7 (b) Sales (770 – 92) = 678 (units sold)  (2 or 0) 678 x R520 = 352 560 One part correct 3 2.3.3 Explain why the business uses different methods to value each type of watch. State ONE valid point. One valid point   Ladies’ watches are sold at high prices. Small quantities are purchased.  Each item can be monitored individually.  The value changes continuously. Men’s watches are sold at low prices. Large quantities are purchased. The value of the watches are almost the same. 2 TOTAL MARKS 40 Copyright reserved Please turn over ### Page 6 Downloaded from hlayiso.com 6 ACCOUNTING P2 (EC/SEPTEMBER 2020) QUESTION 3 3.1 Indicate whether the following statements are TRUE or FALSE. Write only ‘true’ or ‘false’ next to the question numbers (3.1.1–3.1.2). 3.1.1 True  3.1.2 False  2 3.2.1 Note for Direct Material Costs Balance at the beginning of the year 210 000 Purchases (1 425 000 – 210 000 – 180 000) 1 035 000 * Railage on purchases 180 000  1 425 000 Balance at the end of the year (185 000) * (1 425 000 – 1 240 000) 1 240 000  7 *1 part must be correct; -1 Foreign items; Max. 1 3.2.2 Production Cost Statement on 29 February 2020 Direct material 1 240 000 Direct Labour (724 160 x 0,5)  362 080 * Prime cost DL + DM 1 602 080  Factory overhead costs (1 920 000 – 1 602 080) 317 920  Total manufacturing costs 1 920 000 Work-in-process at the beginning of the year 90 000   (2 010 000 – 1 920 000) 2 010 000  Work-in-process at the end of the year (90 000) Cost of production of finished goods (96 000 x R20) 1 920 000 * 15 *1 part must be correct Copyright reserved Please turn over ### Page 7 Downloaded from hlayiso.com (EC/SEPTEMBER 2020) ACCOUNTING P2 7 3.2.3 Income statement for the year ended 29 February 2020 Sales 3 804 000  Cost of sales (1 902 000)  Gross Profit 1 902 000  Administration costs (571 100  + 181 040 ) (752 140)  Selling and distribution costs (594 860)  Net profit 555 000  11 3.3 COST ACCOUNTING 3.3.1 Calculate the break-even point for the year ended 31 August 2020.  736 000 = 61 333 or 61 334  One part correct (28 – 16) 4 3.3.2 Should the business be satisfied with the number of units that they produced and sold during the current financial year? Explain. Quote figures. Yes/No  Reason with figures  Reasons for Yes The business sold (64 000 – 61 334) 2 666 units more than the break- even point. Reasons for No The business sold (78 000 – 60 000) 18 000 more than the break-even point in the previous financial year. Production decreased from 78 000 – 64 000 3 Copyright reserved Please turn over ### Page 8 Downloaded from hlayiso.com 8 ACCOUNTING P2 (EC/SEPTEMBER 2020) 3.3.3 Give TWO possible reasons for the increase in the direct material cost per unit in the current financial year. Any TWO suitable reasons    Due to the effects of inflation, price of raw materials increased  Storage costs  Raw material obtained from new suppliers  Increase in wastage  Increase in carriage 4 3.3.4 Tyler, the owner, suggests that in order to improve financial results in the new financial year, the quantity of cereal per box must be reduced by 10% but the selling price must remain the same. Give TWO valid reasons why he should not do this. Any TWO valid reasons    It is not ethical and would lead to a decrease in the customers once this information becomes public knowledge.  This is deliberate product shrinkage to gain higher profits. Could lead to legal action against the business.  Product may be removed from the shelves if the contents of the product do not correspond with the information on the package. 4 TOTAL MARKS 50 Copyright reserved Please turn over ### Page 9 Downloaded from hlayiso.com (EC/SEPTEMBER 2020) ACCOUNTING P2 9 QUESTION 4 4.1 Choose the correct description in COLUMN B to match the concept in COLUMN A. Write only the letter (A–E) next to the question numbers (4.1.1–4.1.4). 4.1.1 C  4.1.2 D  4.1.3 A  4.1.4 B  4 4.2.1 GENERAL LEDGER OF SHARKS LTD ASSET DISPOSAL Accumulated 2020 Equipment 2020 depreciation 630 000 Aug 31  1 200 000 Aug 31   on equipment  30 000 Profit on Creditors’ 600 000  Sale  Control   1 230 000 1 230 000 10 Copyright reserved Please turn over ### Page 10 Downloaded from hlayiso.com 10 ACCOUNTING P2 (EC/SEPTEMBER 2020) 4.2.2 Fixed Assets Land and Buildings Equipment Carrying value at the 4 050 250 660 000 beginning of the year Cost 4 050 250 1 200 000 Accumulated depreciation 0 (540 000) Movements: Additions 1 500 000  Disposals (660 000 – 90 000) (1 462 500)  (570 000)  Depreciation 0 (202 500)  Carrying value at the end 2 587 750  1 387 500  of the year Cost 2 587 750 1 500 000  Accumulated depreciation 0 (112 500)  12 TOTAL MARKS 26 TOTAL: 150 Copyright reserved Please turn over ## Related documents - [ACCOUNTING P2 GR12 ANSWERBOOK SEPT2020 English](https://www.hlayiso.com/library/accounting-p2-gr12-answerbook-sept2020-english/7c7795c6-891d-43ba-bdd7-60bcccc8c166) — Accounting · Addendum · 2020 · Eng - [ACCOUNTING P2 QP GR12 SEPT 2023 English](https://www.hlayiso.com/library/accounting-p2-qp-gr12-sept-2023-english/eb464289-6949-44e1-9c80-4e527d6a3926) — Accounting · QP · 2023 · Eng - [ACCOUNTING GR12 MEMO SEPT2018 English](https://www.hlayiso.com/library/accounting-gr12-memo-sept2018-english/5bfe8f07-1121-4aad-8146-327c580e81de) — Accounting · Memo · 2018 · Eng - [Gr 12 Accounting P2 (English) 2024 Possible Answers](https://www.hlayiso.com/library/gr-12-accounting-p2-english-2024-possible-answers/2ac769f4-a38a-4036-9426-9410caa51b2a) — Accounting · Memo · 2024 · Eng - [ACCOUNTING P2 MEMO GR12 P2 JUNE 2022 English Final](https://www.hlayiso.com/library/accounting-p2-memo-gr12-p2-june-2022-english-final/edb5d545-b8d8-4365-b883-b3b3de78130f) — Accounting · Memo · 2022 · Eng - [2020 FS Prelim P2 Memo](https://www.hlayiso.com/library/2020-fs-prelim-p2-memo/69f20652-9cb5-4b56-9da4-77702b5cf90a) — Accounting · Memo · 2020 ## 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 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 - [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 ## 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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