Accounting Grade 11 Paper 2 Eastern Cape November 2024 Memo

NATIONAL SENIOR CERTIFICATE GRADE 11 NOVEMBER 2024 ACCOUNTING P2 MARKING GUIDELINE 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. Full marks for correct answer. If answer 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 guideline for components of workings, these do 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 than 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 Q). 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. 10. 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 the marking guideline. 11. In calculations, do not award marks for workings if numerator and denominator are swapped – this also applies to ratios. 12. 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 . 13. Be aware of candidates who provide valid alternatives beyond the marking guideline. Note that one comment could contain different aspects. 14. Codes: f = foreign item; p = placement/presentation. This marking guideline consists of 11 pages. Copyright reserved Please turn over Hosted by www.ecexams.co.za.

2 ACCOUNTING P2 (EC/NOVEMBER 2024) QUESTION 1 1.1.1 CREDITORS CREDITOR’S LEDGER OF STATEMENT OF MULLER TRADERS KOUGA TRADERS Provisional 29 174  29 554  balances - 10 000  - 640  - 1 260  - 10 000  - 1 000   Balances after 17 914  * 17 914 changes 11 * One part correct, must include opening balances & totals the same amounts 1.1.2 Name TWO tasks of the creditors’ clerk to maintain or improve the internal control of creditors. Any TWO possible answers:  • Make sure creditors are paid on time to prevent interest on overdue accounts. • Returns of purchases should be properly authorised and negotiated with the creditors/suppliers. • Payment should be supported by the correct/reconciled monthly statements. • Invoices should be compared with the goods delivered to ensure all items were received in good condition. • Goods received should be compared with the orders placed to ensure the goods received are according to order. 2 1.1.3 Prior to granting credit, documentation such as identification and proof of address is mandatory. Identify a specific document that Kouga Traders may accept from new debtors as valid proof of residency. Any ONE possible answer:  • Utility bill (electricity or municipality) • Bank or credit card statement • Rental agreement or lease • Document issued by municipality / ward councilor 1 * l totals must be included in totals Copyright reserved Please turn over Hosted by www.ecexams.co.za.

(EC/NOVEMBER 2024) ACCOUNTING P2 3 1.2.1 BANK RECONCILIATION No. Details of contra Bank Account Bank Reconciliation No entry account Statement (show Dr Cr Dr Cr with x) (i) Loan: Tempo Bank  6 600  (ii) 2 400  (iii) Trading Stock  18  (iv) 52 000  (v) Bank Charges  359  (vi) X (vii) Rent income/ Loss 15 000  of cash  (viii) Creditors Control 20 000  OR  (10 000 one mark + 10 000 one mark) 15 1.2.2 Explain TWO problems you have identified from the transactions, which show a lack of control of cash. Quote figures. Give advice on how EACH problem can be avoided in future. PROBLEMS  ADVICE  FIGURES  Large outstanding deposit • Ensure that deposits are done on a (R52 000) was received on regular basis to avoid mismanagement 17 September 2024 and not yet • Arrange with the bank to send a shown on the bank statement as notification (via SMS or email) to the deposited (13 days) owner to confirm deposits are made Possible rolling of cash • Encourage customers to make direct Bank error (deposit credited to /internet/online deposits (EFTs) another bank customer) R15 000 were stolen on the way • Rotate duties and times of banking to to the bank to make the deposit avoid creating a pattern • Provide security to the person going Poor internal control measures to the bank – at least two people should go Deposits being done by only one • Use a cash transit business to person transport cash to the bank • Carro could be guilty of theft – No protection for person going to especially because she did not inform the bank / Lack of security the owner(s) at the time of the theft. • Encourage the tenant to make EFTs/ 6 internet payments QUESTION 1: TOTAL MARKS 35 Copyright reserved Please turn over Hosted by www.ecexams.co.za.

4 ACCOUNTING P2 (EC/NOVEMBER 2024) QUESTION 2 2.1.1 Calculate: (i) Total Purchases CALCULATIONS ANSWER 715 000  + 174 000  – 3 200  – 900  884 900 (total counts no mark) (ii) Total Sales CALCULATIONS ANSWER 900 650  + 1 140 000  – 46 200  – 2 000  1 992 450 (total counts no mark) 8 2.1.2 Dr TRADING ACCOUNT Cr DETAILS AMOUNT DETAILS AMOUNT Opening Stock 400 200  Sales 1 992 450  (see 2.1.1) Purchases 884 900  Closing stock 265 000  (see 2.1.1) Custom duties 46 100  Carriage on purchases 170 000  Profit and Loss 756 250  2 257 450 2 257 450 7 Foreign items – 1 max 1 e.g. Carriage on sales 2.1.3 Carlon is concerned about the high transport costs he has to pay on stock purchases (refer to carriage on purchases). Give Carlon advice on how he can solve this problem. Any ONE possible answer:  • Sourcing stock from local suppliers to reduce transportation distances and costs. • Negotiate with transport companies or logistics providers for bulk shipping discounts. • Explore alternative modes of transport, such as rail or sea freight. • Consolidate multiple stock purchases into fewer shipments whenever possible. • Better inventory management – plan deliveries more efficient and avoid last-minute, costly deliveries. • Negotiate better rates with transporters. 2 Copyright reserved Please turn over Hosted by www.ecexams.co.za.

(EC/NOVEMBER 2024) ACCOUNTING P2 5 2.2 Manufacturing Concepts 2.2.1 Factory overheads  2.2.2 Packing material  2.2.3 Advertising  3 2.3.1 FACTORY OVERHEADS WORKINGS AMOUNT Indirect material 10 870 + 30 400 – 7 200 34 070 * Indirect labour 66 000  Water and Electricity 28 700 x 70% 20 090 * Rent expense 2 800 66 900 x 3 500 OR 5 4 53 520 * Insurance 10 600 x 2 21 200 * Depreciation 11 400  Sundry expenses 12 420  TOTAL 218 700 * 14 *One part correct 2.3.2 Dr Work-in-Progress Cr DETAILS AMOUNT DETAILS AMOUNT Balance b/d 32 440  Finished goods 683 420  Balancing figure Direct labour 228 080  Balance c/o 20 400  Direct material 224 600  Factory overheads 218 700  (see 2.3.1) 703 820 703 820 Balance b/d 20 400 8 Copyright reserved Please turn over Hosted by www.ecexams.co.za.

6 ACCOUNTING P2 (EC/NOVEMBER 2024) 2.4 BT RUGBY BALLS 2.4.1 Calculate the break-even point for the year ended 29 February 2024. CALCULATION ANSWER [76,60 x 4 700] 360 020  4 417 units 260  – 178,50  Accept 4 418 81,50 (2 marks) (one part correct) 4 2.4.2 Should Bevan be satisfied with the level of production of rugby balls in the 2024 financial year? Explain briefly quoting appropriate figures. Explanation Figure  Yes – produce and sold 283/282 units more than break-even point • Made profit on 283/282 units No – production is ONLY 283 units above break-even point – small profit 2 2.4.3 Briefly explain what is meant by “economies of scale” with specific reference to fixed costs. As more units are produced, the fixed cost per unit will decrease. 2 QUESTION 2: TOTAL MARKS 50 Copyright reserved Please turn over Hosted by www.ecexams.co.za.

(EC/NOVEMBER 2024) ACCOUNTING P2 7 QUESTION 3 3.1.1 Name any TWO items that would not appear in a Cash Budget. Any TWO possible answers:  Bad debts Discount Allowed Drawings of stock Discount received 2 3.1.2 Calculate the percentage of goods sold on credit during September 2024. CALCULATION ANSWER 60 400  x 100 78,4  77 000  (one part correct, X 100 not one part correct) 3 3.1.3 DEBTORS’ COLLECTION SCHEDULE Month in Credit Sales Calculations October 2024 15 90 200 x 100 13 530  August R90 200 30 60 400 x 100 18 120  September R60 400 90 [60 400 x 100 ] 25 821  October 54 360  54 360 x 0,95 x 0,5 CASH FROM DEBTORS 57 471  6 3.1.4 CASH BUDGET CASH RECEIPTS OCTOBER Cash from debtors 57 471  Cash Sales 12 600  Interest on fixed deposit (14 100/3) 4 700  48 000 90 Rent income ( 12  x 100 ) OR (4 000 one mark – 400 one mark) 3 600 * Capital contribution 50 000  128 371 CASH PAYMENTS 100 Cash paid to creditors(16 600 + 60400) x 140 55 000 * Maintenance of buildings 3 000  Drawings 7 000  Water & electricity (2 400 + 2 640) 5 040 * 70 040  Cash surplus / deficit for the month 58 331  Bank (Opening balance) (24 800)  Bank (Closing balance) 33 531  (calculation Surplus for the month – Opening balance) 18 * One part correct Copyright reserved Please turn over Hosted by www.ecexams.co.za.

8 ACCOUNTING P2 (EC/NOVEMBER 2024) 3.1.5 Compare the actual figures of September 2024 against the budgeted amounts. Advise the owner on possible reasons for the differences and what he could do to improve the situation during October 2024. No figures required. REASONS  ADVICE  (no figures required) • poor collection policy • investigate reasons. • over budgeted; • adjust budget or implement RENT INCOME rules for the tenant • taking advantage of • need to stick to budget DRAWINGS being the owner • arrangement to exercise good cash management • under budgeted • investigate and budget MAINTENANCE • possibly the extra appropriately in the future OF BUILDINGS money spent in February will reduce the expense in the future 6 QUESTION 3: TOTAL MARKS 35 Copyright reserved Please turn over Hosted by www.ecexams.co.za.

(EC/NOVEMBER 2024) ACCOUNTING P2 9 QUESTION 4 4.1 VAT 4.1.1 What does the abbreviation VAT stand for? Value Added Tax  1 4.1.2 Why does government classify certain items as zero-rated for VAT? Name TWO zero-rated items. REASON: To alleviate the tax burden on essential goods and services  that are considered necessary for basic living standards, particularly for low-income households. Any TWO zero rated items:  • Brown bread. • Maize meal. • Samp. • Mealie rice. • Dried mealies. • Dried beans. • Lentils. • Pilchards/sardines in tins. • Milk powder. • Dairy powder blends • Rice. • Vegetables. • Fruit. • Vegetable oil. • Milk. • Cultured milk. • Brown wheat-meal. • Eggs. • Edible legumes and pulses of leguminous plants • Illuminating paraffin 4 4.1.3 Briefly explain to Mia what is meant by Output VAT and Input VAT. Output VAT Is collected from customers on goods sold and services rendered. Pay collected VAT to SARS  Input VAT Is paid to suppliers on goods bought. Claim paid VAT back from SARS.  2 4.1.4 Calculate the VAT paid on the new shop equipment bought. CALCULATION ANSWER R8 500  x 15%  1 275  3 4.1.5 Consider the goods purchased from suppliers during October 2024. CALCULATION ANSWER VAT on these goods: 15 62 974  x 115  8 214 * The cost of all goods purchased, excluding VAT. (62 974  – 8 214 VAT) + 12 800  67 560 * 54 760 (2 marks) 7 *One part correct Copyright reserved Please turn over Hosted by www.ecexams.co.za.

10 ACCOUNTING P2 (EC/NOVEMBER 2024) 4.2 Problem Solving and Ethics 4.2.1 Identify ONE problem in relation to each branch, quoting figures to support the problem. In each case, offer Kyle Rob advice on how to solve the problem. PROBLEM  ADVICE  FIGURES  • Sales revenue • Thorough investigation to (R1 000 000 vs determine reason for shortfall R900 000) • Possibility of theft – open • R100 000 less than criminal case QONCE expected sales revenue • Possibility of theft / roll-over of cash • Number of bikes sold • Better advertising only 200/ 50% of • Change manager’s salary from what Qonce sold / a fixed salary to commission 200 less than Qonce/ based. 52,6% of what CAMDEBOO Humansdorp sold /180 less than Humansdorp • Manager’s salary the highest (R22 000) but lowest sales • Leave taken by • Better control over leave manager – 34 days • Review Leave Policies • Comparing to other • Unpaid leave if more than the managers too many days allowed days of leave • Conduct a thorough • 32 bikes returned by assessment of the bikes customers / 8,4% of returned by customers to bikes sold were identify any recurring issues or HUMANSDORP returned quality concerns. • Gather feedback from customers to understand the reasons for returning the bikes. • Provide additional training to staff members responsible for bike inspections and customer service to prevent further returns. 9 Copyright reserved Please turn over Hosted by www.ecexams.co.za.

(EC/NOVEMBER 2024) ACCOUNTING P2 11 4.2.2 What is a whistle-blower? Any correct explanation  A whistleblower is someone who reports workplace conditions that he or she believes to be unsafe or illegal. / often an employee, revealing information about an activity within an organisation that is deemed illegal, immoral, illicit, 2 unsafe or fraudulent. 4.2.3 In your opinion, what are the ethical characteristics of a whistle-blower? Name TWO characteristics. Name any two acceptable characteristics   Integrity Honesty Objectivity Accountability Courage Altruism Empathy 2 QUESTION 4: TOTAL MARKS 30 TOTAL: 150 Copyright reserved Please turn over Hosted by www.ecexams.co.za.