Accounting Grade 11 P2 Eastern Cape November 2025 Memo (Eng)

NATIONAL SENIOR CERTIFICATE GRADE 11 NOVEMBER 2025 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 10 pages.

2 ACCOUNTING P2 (EC/NOVEMBER 2025) QUESTION 1 1.1 Choose the correct answer, for example 1.1.5 B. 1.1.1 B 1.1.2 D 1.1.3 C 1.1.4 D 4 1.2.1 Calculate the VAT amount included in the cash sales. WORKINGS ANSWER 15 11 500 x 115 R1 500  2 1.2.2 Calculate the input VAT Siyanda Traders may claim. WORKINGS ANSWER 15 6 900 x 100 = 1 035*  R1 260  (if * + 225) 1 035 + 225  3 1.2.3 Why can VAT not be claimed on the purchase of the vehicle? Any ONE explanation  • A motor car was bought for the owner’s personal use, not for business purposes. • Motor cars acquired for private use (such as for the owner’s personal use) are specifically excluded from input VAT claims, even if VAT was paid on the purchase. • The vehicle is not being used to generate income for the business; the VAT is not deductible. 2 1.2.4 Give ONE reason why it is important for a business to keep proper VAT records. Any valid reason  • Legal requirement/comply with SARS regulations • Accurate VAT returns/ensures correct VAT is paid or claimed • Avoid penalties/prevents fines and interest from SARS • Proof of VAT transactions • Better control of business finances • To identify mistakes in VAT calculations • Ensures proper VAT reconciliation 2 Copyright reserved Please turn over

(EC/NOVEMBER 2025) ACCOUNTING P2 3 1.2.5 Explain ONE advantage and ONE disadvantage of being a VAT- registered business. ADVANTAGE  DISADVANTAGE  Can claim input VAT More admin and paperwork Creates business credibility Penalties if VAT is not paid on time Required for larger businesses Need to charge customers VAT (turnover > R1 million) Risk of audits by SARS Eligible for VAT refunds Can be costly for small businesses Improves financial record-keeping 2 1.3.1 Calculate the total depreciation written off on vehicles for the financial year ending 31 August 2025. WORKINGS ANSWER SOLD: 6 R400 000 x 20% x 12 = 40 000   (one part correct) OLD: R155 625 [940 000 – 400 000] 540 000 x 20% = 108 000   (one part correct) NEW: Cost price: [30 500 x 6] 100 183 000 x 80 = 228 750* (one part correct) 2 228 750* x 20% x 12 = 7 625 (one part correct) *see cost price 9 Copyright reserved Please turn over

4 ACCOUNTING P2 (EC/NOVEMBER 2025) 1.3.2 VEHICLES Date Details Amount Date Details Amount Sept 1 Balance 940 000 March 1 Asset 400 000  disposal June 30 Bank [183 000 x 20/80] June 30 Balance 768 750 OR [288 750 – 183 000] 45 750  (one part correct) Creditors [30 500 x 6] Control 183 000  1 168 750 1 168 750 July 1 Balance 768 750 5 ASSET DISPOSAL Details Amount Details Amount Vehicles 400 000 Acc Depr on 280 000  (see Vehicles) vehicles (240 000 * +40 000) Bank  98 000  Loss with 22 000  disposal of asset 400 000 400 000 6 42 *400 000 x 20% x OR 240 000 + 40 000 12 QUESTION 1: TOTAL MARKS 35 Copyright reserved Please turn over

(EC/NOVEMBER 2025) ACCOUNTING P2 5 QUESTION 2 2.1 MATCH ITEMS 2.1.1 E 2.1.2 A 2.1.3 F 2.1.4 C 2.1.5 B 5 2.2.1 DEBTORS’ COLLECTION SCHEDULE CREDIT JUNE JULY AUGUST SALES 2025 2025 2025 JUNE: 37 620 30 800 13 200  R88 000 JULY: [72 800 x 45%] 25 480  32 760 x 95% R72 800 31 122  * *(if 5% is subtracted) AUGUST: [176 000 x 40%] 30 096 R70 400  6 2.2.2 Calculate the figures labelled A to F in the Cash Budget. WORKINGS ANSWER A R63 400  B (98 800) + 63 400 (35 400)  C 220 000 x 60% 132 000  D [2 100 X 12] 100 25 200  x 8  315 000  E 182 000  x 100 * x 65  94 640  125 100 F 100 35 220 000  x 125 (see E) x 100  61 600  15 2.2.3 (i) Calculate the percentage increase given to employees in July 2025. WORKINGS ANSWER [69 875 – 65 000] 4 875 x 100 7,5%  65 000 (if 𝐱 ; do not accept 𝐱 ) 𝟔𝟓 𝟎𝟎𝟎 𝟔𝟗 𝟖𝟕𝟓 2 Copyright reserved Please turn over

6 ACCOUNTING P2 (EC/NOVEMBER 2025) (ii) Explain why staff training is essential to the business. Any valid point  • Improves employee skills • Increases productivity • Boosts employee confidence • Reduces mistakes • Lowers need for supervision • Improves customer service • Keeps staff up to date 2 (iii) Interest on loan is not capitalised. Calculate the loan balance on 1 September 2025. WORKINGS ANSWER 315 000 - 25 000 R290 000  (see 2.2.2D) ( if 25 000 is subtracted) 1 (iv) The actual amount spent on advertising in August 2025 was R3 000. Explain ONE possible consequence of the decision to spend less than the budgeted R5 000. Any valid point  • Less sales / Fewer customers / Loss of market share • Competitors may attract more customers • The business may not grow as expected 2 (v) The owner is worried about the continuous increase in bank charges. Suggest ONE way they can reduce bank charges. Any valid point  • Use internet banking instead of going to the bank • Go cashless / Encourage customers to pay via EFT / Limit cash withdrawals/ Use electronic payments instead of cash deposits • Avoid using other banks’ ATMs • Choose a bank account with lower fees • Check bank statements regularly for errors • Bundle banking services for lower rates 2 QUESTION 2: TOTAL MARKS 35 Copyright reserved Please turn over

(EC/NOVEMBER 2025) ACCOUNTING P2 7 QUESTION 3 3.1.1 Calculate the raw materials issued for production in 2025. WORKINGS ANSWER 55 000  + [740 000 – 5 000]  + 18 900 + 3 900  788 800 – 24 000  (one part correct) 6 3.1.2 FACTORY OVERHEADS Factory 72 400  Work-In-Progress 390 910 maintenance  Water and 109 760 * electricity [78 400 x 𝟏𝟎𝟎 x 𝟕𝟎 ] 𝟓𝟎 𝟏𝟎𝟎 Factory rent 78 400 * 𝟒𝟎𝟎 [196 000 X ] 𝟏 𝟎𝟎𝟎 (do not accept 196 000 alone) Indirect material 36 300 * [5 800 + 37 000 – 6 500] Salary / Indirect 66 000  labour Sundry expenses 6 600 * 3 13 200 x 6 (do not accept 13 200 alone) Depreciation 21 450  390 910 390 910 13 *One part correct; -1 Foreign items, max-1 WORK-IN-PROGRESS Balance 41 000  Finished goods  1 926 710  Balancing figure Direct material 788 800  Balance 78 000  See 3.1.1 Direct Labour 784 000  Factory overhead 390 910  See FOC 2 004 710 2 004 710 Balance 78 000 7 3.1.3 Calculate cost of sales for the year ended 30 September 2025. WORKINGS ANSWER 210 000  + 1 926 710 – 188 000  R1 948 710 See Work-in-Progress One part correct 4 Copyright reserved Please turn over

8 ACCOUNTING P2 (EC/NOVEMBER 2025) 3.2.1 Calculate the break-even point for the financial year ended 30 September 2025. WORKINGS ANSWER (47 x 23 600) 1 109 200  11 800 220  - 126  One part correct 4 3.2.2 Do you think Berry Nok should be satisfied with the break-even point? Quote the number of units on which a profit is made in your explanation. Any valid point  figures  For FOUR marks: • Produced and sold 11 800 above the BEP of 11 800 / made a profit on 11 800 units • Profit on 11 800 units has improved compared to 2024 profit on 8 960 units. For TWO marks (max.): • BEP decreased by 4 200 units / (from 16 000) to 11 800/ by 26,25% • Units produced decreased by 1 360 units / (from 24 960) to 23 600/ by 5,4% 4 3.2.3 Direct material cost per unit decreased. Except for the cheaper supplier, name TWO possible reasons for the decrease. Any TWO valid points   • Bought raw materials in bulk, leading to quantity discounts • Decrease in raw material prices • Improved efficiency, leading to less material wastage • Sourcing materials locally, less transport cost / import taxes / shipping costs • Changed to lower-grade materials, which are cheaper 2 QUESTION 3: TOTAL MARKS 40 Copyright reserved Please turn over

(EC/NOVEMBER 2025) ACCOUNTING P2 9 QUESTION 4 4.1 CHOOSE ITEM 4.1.1 Cash Payments Journal  4.1.2 Bank Reconciliation Statement  4.1.3 credit  4.1.4 debit  4 4.2.1 Changes in the Cash Journals for July 2025. CASH RECEIPTS JOURNAL CASH PAYMENTS JOURNAL 75 620 74 890 2 000  9 750  31 350  2 975  150  800  10 000  108 970 (both totals)*98 565 10 *must include provisional totals -1 (max -1) foreign / superfluous items (only if mark/s are earned elsewhere for the same figure) In awarding the method mark for totals, ensure that the candidate do not get full marks for including any incorrect figure/s. Indicate with a  4.2.2 Correct Bank Account balance on 31 July 2025. CALULATION ANSWER (10 405 two method marks) – 6 450  + 108 970  – 98 565  3 955 See CRJ See CPJ One part correct 4 4.2.3 Bank Reconciliation Statement on 31 July 2025. Alternative Debit Credit Balance as per Bank Statement (13 765) 13 765 balancing figure balancing figure could be DR Outstanding deposit 25 870 25 870  Outstanding EFT: No. 880 (8 900) 8 900  No. 889 (9 000) 9 000  Duplicate debit order 9 750 9 750  Balance as per bank account 3 955 3 955  Could be CR -1 Presentation (inappropriate / no details 35 620  35 620 provided); for both totals -1 foreign items / superfluous items, (only if mark/s are earned elsewhere for the same figure) max -1 7 Copyright reserved Please turn over

10 ACCOUNTING P2 (EC/NOVEMBER 2025) 4.2.4 Give ONE possible consequence for the business if theft like this continues undetected. Any one valid answer  • Cash flow problems • Loss of profits / income • Bad reputation • Extra costs for investigations 2 4.3.1 Correct the balances of the creditors in the Creditors Ledger. CREDITORS WORKINGS BALANCE Phoenix Suppliers 17 250 – 12 500 R4 750  Zahn Traders -12 450 + 12 500 + 13 500 13 550  OR 12 450 – 12 500 – 13 500 Lara Wholesalers 8 950 – 3 000 5 950  5 4.3.2 Calculate the correct balance according to the statement received from Phoenix Suppliers. WORKINGS ANSWER 10 850 – 5 000  + 200  – 1 300  4 750  One part correct 4 4.3.3 Identify TWO possible consequences a business may face if it fails to pay its creditors on time. Any TWO valid points   • Loss of supplier trust • Interest or late payment penalties • Refusal of future credit from suppliers • Legal action from creditors • Disruption of stock or service delivery • Negative impact on business reputation 2 4.3.4 Describe ONE way technology can assist a business in maintaining accurate and up-to-date creditor records. Any valid point  • Accounting software – Tracks invoices and payments automatically • Reminders and alerts – Notifications of due payments • Automated data entry – Fewer errors • Cloud storage - real-time access to creditor records • Digital invoices – Speeds up and simplifies record-keeping • Integration with banking systems – Syncs payments directly with records 2 QUESTION 4: TOTAL MARKS 40 TOTAL: 150 Copyright reserved Please turn over