# Accounting Grade 12 P2 Eastern Cape Prelim 2024 Memo (Eng) > Grade 12 Accounting Paper 2 memorandum from the Eastern Cape Prelim Exam 2024 (English), 12 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/accounting-p2-memo-gr12-sept-2024-english/04e0397f-2351-426c-8bd5-522d72f9510f - Updated: 2026-09-27 - Subject: Accounting - Grade: Grade 12 - Language: English - Document type: Memorandum - Year: 2024 - Exam period: Eastern Cape Prelim Exam - Paper: 2 - Curriculum: CAPS - Pages: 12 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 Prelim 2024 Memo (Eng)](https://www.hlayiso.com/library/accounting-p2-memo-gr12-sept-2024-english/04e0397f-2351-426c-8bd5-522d72f9510f) ## About this document Accounting · Grade 12 · Eastern Cape Prelim Exam · 2024 · English. Memorandum, 12 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 12 SEPTEMBER 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 12 pages. Hosted by www.ecexams.co.za. ### Page 2 Downloaded from hlayiso.com 2 ACCOUNTING P2 (EC/SEPTEMBER 2023) QUESTION 1 1.1.1 Explain to her how the preparation of the Age Analysis can assist the business in controlling debtors. Any TWO valid points  Part mark for incomplete / unclear / partial answer • Important internal control measure – it will help to identify which debtors are complying with credit terms and credit limits. • Helps in recovering funds more efficiently by targeting accounts that are at the highest risk of becoming bad debts. /Measures could be implemented as to prevent bad debts. • Age Analyses provide insights into the effectiveness of existing credit policies. If large portion of debtors fall into overdue brackets, current credit terms are too lenient and need adjustment. • Age analysis indicates which debtors need to be charged with interest on overdue accounts / need to be handed over to debt collectors. 4 1.1.2 Calculate the average debtors’ collection period for the year ended 31 July 2024. [ ½ (92 350 + 106 500)]  99 425 x 365 = 64,05 or 64 days  One part correct 566 580 (x 365 is not one part correct) 3 1.1.3 As the internal auditor, identify TWO concerns you would report to the owner of the business. In each case, quote figures to support your answer. Any TWO concerns Figures  • Cash flow problem might arise /debtors collection period 64 days. • C Voges owes R27 000 of which R2 000 is exceeding his credit limit of R25 000. • J Olivier owes R16 000 for 60+ days and he has not purchased goods in the last 60 days. Has he disappeared? • C Voges is allowed to buy on credit even though he is overdue with R8 000. • J Fourie, C Voges and J Olivier are not adhering to the credit terms of 30 days. 4 Copyright reserved Please turn over Hosted by www.ecexams.co.za. ### Page 3 Downloaded from hlayiso.com (EC/SEPTEMBER 2023) ACCOUNTING P2 3 1.2.1 Reconciliation General Ledger Bank statement Bank account received from NEBULA BANK Balances before corrections 243 980 245 000 (i) - 12 500  (ii) -10 000 one mark – 10 000 one mark - 9 000  - 20 000  (iii) + 4 000  (iv) - 340  (v) No entry in both columns  (vi) (balancing amount) + 20 860  Closing Balance 236 000  * 236 000 * One part correct must include opening balances & totals the same amounts 10 -1 foreign/superfluous items per row (only if marks are earned in the row) 1.2.2 Provide her with advice to avoid interest on overdue creditors in the future. Any TWO valid points  Part mark for incomplete / unclear / partial answer • Develop streamlined procedures to process invoices swiftly and ensure timely payments. • Collaborate with suppliers to negotiate payment terms suitable for the company’s cash flow. • Monitor cash flow to pre-empt any cash shortages that might result in delayed payments. • Create a system to prioritise creditor payments based on due dates, supplier relationships, and potential penalties for late payments. 4 1.3 VAT 1.3.1 CALCULATION BALANCE 1 245  + 18 900  – 13 185  – 11 985 + 5 430  + 20 169  – 1 404  R19 170  OR -1 245  – 18 900  + 13 185  + 11 985 – 5 430  -20 169 + 1 404  Choose one option that benefits the candidate. 10 Marks awarded for correct sign with amount. Accept the use of brackets for negative amounts *Operation, One part correct for both totals (does not have to be the same total) QUESTION 1: TOTAL MARKS 35 Copyright reserved Please turn over Hosted by www.ecexams.co.za. ### Page 4 Downloaded from hlayiso.com 4 ACCOUNTING P2 (EC/SEPTEMBER 2023) QUESTION 2 2.1.1 Complete the notes: Direct material cost Opening stock of raw materials 28 958  Purchases 269 298  Carriages on purchases  28 344  326 600  Closing Stock  (326 600 ÷ 230 x 18 ) (25 560)  R1 420 (two marks) Direct material cost 301 040  10 Factory overheads Consumable stores 40 000 Depreciation 26 000 4 44 000 * Water and Electricity (66 000 x 6 ) Rent expense (240 000 x 70 000⁄100 000) 168 000 * Indirect labour [300 000 + 40 000]  x 5% 17 000  Sundry expenses 7 000 Factory overhead cost 302 000 6 * If multiplied by underlined amount Finished goods stock Opening stock 65 000 Cost of goods manufactured 855 000  920 000 Less closing stock  (balancing amount) (60 000)  Cost of Sales (1376 000 x 100 ) 860 000  160 5 Copyright reserved Please turn over Hosted by www.ecexams.co.za. ### Page 5 Downloaded from hlayiso.com (EC/SEPTEMBER 2023) ACCOUNTING P2 5 2.1.2 The owner, Shannon, has instructed the accountant to switch between the weighted-average and FIFO methods, when valuing the raw materials. Give ONE reason Any ONE valid point  why you think she Part mark for incomplete / unclear / partial answer would give this Owner may seek to manipulate reported profits or instruction. inventory values / to show higher or lower profits depending on what she is trying to achieve Explain why you Any ONE valid point  do not agree with Part mark for incomplete /unclear / partial answer her. • It is unethical – business has to stick with one method in the interest of comparison. • Switching methods undermines consistency and reliability in financial reporting. • Violates principles of accounting integrity and can raise concerns about manipulation of financial statements. • Continuously switching methods lead to confusion and inconsistency in financial information. 4 2.1.3 If the accountant were to use the FIFO method, calculate the value of the closing inventory of the raw material. CALCULATIONS ANSWER 18  x 1 472 (no part marks) [1 328 + 144] R26 496  4 2.1.4 The Grade 12 class of 2025 would not want to buy the 18 tops left. Give ONE strategy on how she can use the closing stock meaningfully. This issue recurs annually. Offer ONE suggestion for preventing any remaining closing stock of finished goods in the future. Any ONE valid point  Part mark for incomplete / unclear / partial answer STRATEGY • Offer a discount or special promotion • Bundle them with other products • Offer them as a bonus for larger purchases • Donate the items Any ONE valid point  Part mark for incomplete / unclear / partial answer SUGGESTION • Produce only on order. • Do not begin manufacturing without at least a 50% deposit being paid. 4 Copyright reserved Please turn over Hosted by www.ecexams.co.za. ### Page 6 Downloaded from hlayiso.com 6 ACCOUNTING P2 (EC/SEPTEMBER 2023) 2.2 NASSI STRIDE 2.2.1 Calculate for 2024: Net Profit CALCULATIONS ANSWER (18 000 x 980) 3 600 000  17 640 000  – 14 040 000  3 Break-even point CALCULATIONS ANSWER 3 600 000  9 000 pairs  980  – 580  400 two marks Mark numerator and denominator as such 4 2.2.2 Nassi is not satisfied with the results of 2024. Explain and provide one reason (with figures or calculations) to prove why she should be much more satisfied with these results than she was the previous year. Any ONE valid COMPARISON (no mark if there is no comparison) Figure (no marks for figures if there is no comparison) • BEP decreased from 10 909 to 9 000 (see 2.2.1) while units produced and sold increased from 12 000 to 18 000. • Profit on 9 000 in 2024 while profit only on 1 091 units in 2023 • 6 000 (50%) more pairs sold although selling price increased with R120 (14%) 3 2.2.3 Calculate how many extra pairs of sneakers she would have to make to increase her profit by R400 000. CALCULATIONS ANSWER 400 000  400  (see 2.2.1) 1 000  pairs 3 Copyright reserved Please turn over Hosted by www.ecexams.co.za. ### Page 7 Downloaded from hlayiso.com (EC/SEPTEMBER 2023) ACCOUNTING P2 7 2.2.4 Comment on the selling and distribution cost per pair. Quote the percentage change in cost per pair. Provide ONE possible reason for the change from 2023 to 2024. COMMENT AND PERCENTAGE REASON Any ONE valid point  10 Decreased  by 8,3%  (120 x 100) Part mark for incomplete / unclear / partial answer • Decrease in fuel price • Cheaper transport contract • Customers live closer / more local customers • Better control of deliveries / less private use of vehicles • Change in salary system of sales persons • Cheaper advertising medium 4 QUESTION 2: TOTAL MARKS 50 Copyright reserved Please turn over Hosted by www.ecexams.co.za. ### Page 8 Downloaded from hlayiso.com 8 ACCOUNTING P2 (EC/SEPTEMBER 2023) QUESTION 3 3.1 CASH BUDGET AND PROJECTED STATEMENT OF COMPREHENSIVE INCOME – September 2024 No. Cash Budget Projected Statement of Comprehensive Income Receipts Payment Income Expense E.g. 3 200 3 200 (i) 4 000  4 000  (ii) 3 000  (iii) 65 000  65 000  54 000  (iv) 31 860  3 540  10 3.2 CASH BUDGET 3.2.1 Month Fee Income MAY JUNE on credit April 2024 R160 000 92 800 May 2024 R154 000 58 520 89 320  (154 000 x 58%) June 2024 210 000*  ------- 79 800 * 70 see fee income on credit* (90 000 x ) 40 95 30 (210 000* x 100 x 100) 151 320 6 3.2.2 Calculate: (i) Fee income from cash customers for May 30 154 000 x 70 66 000  (ii) Rent income for June 92,5 4 070  4 400 x 100 (iii) Fuel for May 100 R55 000  63 250 x 115 (iv) Surplus/Shortage for June 320 000 – 405 200 (85 200)  must be negative (v) Cash at the end of June (85 200) + 317 400 R232 200  One part correct 9 Copyright reserved Please turn over Hosted by www.ecexams.co.za. ### Page 9 Downloaded from hlayiso.com (EC/SEPTEMBER 2023) ACCOUNTING P2 9 Outstanding balance of the loan on 1 May 2024 WORKINGS ANSWER 1 650 x 12  R180 000  0,11  One part correct 4 Percentage increase in salaries on 1 June 2024 WORKINGS ANSWER 1 440  x 100 3%  48 000  One part correct 3 3.2.3 The employees are not satisfied with the increase in salaries. Any ONE valid point (no figures required) ONE point to • Increase below inflation rate support • Huge increase in cash sales them • Adjustment do not address the rising cost of living • Feel undervalued and unappreciated Any ONE valid point  ONE point against their • Cash flow problems of business / June shortage opinion. • Might be economic difficult times for business • High increase in fuel price over which business has no control e 3.2.2 Answers / look for cheaper supplier 2 3.2.4 At the end of May, Zeland was concerned about the control of the collection from debtors and maintenance of vehicles. Reasons  Figures  Advice  • Poor control over • Send reminders regularly collections • Do age analysis to Collection from • Only 74,4% of expected determine defaulting debtors amount received debtors and take action • Expected R151 320, but only received R112 650 • Aging / old vehicles • Allocate sufficient funds • Unforeseen • Plan for unforeseen event/breakage events • No control over • Upgrade to better Maintenance of maintenance in the past vehicles vehicles • Overspend by 100% • Budgeted R22 000 spent R44 000 6 QUESTION 3: TOTAL MARKS 40 Copyright reserved Please turn over Hosted by www.ecexams.co.za. ### Page 10 Downloaded from hlayiso.com 10 ACCOUNTING P2 (EC/SEPTEMBER 2023) QUESTION 4 4.1 FIXED ASSETS 4.1.1 Calculate the missing amounts: (a) Additions of land and buildings WORKINGS ANSWER 1 830 000 – 1 150 000 680 000  1 (b) Asset disposal  1 (c) Creditors Control  1 (d) R460 000  1 (e) Depreciation on 1 April 2024 WORKINGS ANSWER 10 9 5 400  (180 000 – 108 000) x 100 x 12 One part correct 2 (f) Accumulated depreciation WORKINGS ANSWER 108 000 + 5 400  see (e) R113 400  One part correct 3 (g) Depreciation on 30 June 2024 WORKINGS ANSWER OLD: 320 000 two marks 42 000 two marks (500 000  – 180 000 ) – (150 000  + [5 400 – 113 400] ) x 10% = 27 800  R39 300  NEW: One part correct 3 460 000 x 10% x 12 = 11 500  8 4.1.2 Provide ONE example of how the vehicles of a trading business would contribute towards the generation of profit. Any ONE valid point Part mark for incomplete / unclear / partial answer • Timely delivery of goods to customers, ensuring customer satisfaction and repeat business/returning customers. • By enhancing customer service, reducing delivery times, and increasing sales volumes. • Give access to new markets and customers without their own transport • Attracting customers seeking efficient and dependable transport services – higher sales/market share and increased profitability. • Offering services that meet or exceed customer expectations, the business can command higher prices and profit margins, leading to higher profits. 2 Copyright reserved Please turn over Hosted by www.ecexams.co.za. ### Page 11 Downloaded from hlayiso.com (EC/SEPTEMBER 2023) ACCOUNTING P2 11 4.2 FIXED ASSET MANAGEMENT 4.2.1 Describe ONE consequence of omitting assets from a fixed asset register? Any ONE valid point  Part mark for incomplete / unclear / partial answer • Inaccurate financial reporting: Omitting assets from the fixed asset register can lead to inaccuracies in financial statements, misrepresenting the company's financial position. • Without proper tracking and management, omitted assets may lead to inefficiencies in asset utilization and allocation. • Lack of oversight on unregistered assets can increase the risk of theft or loss, as they may not be adequately safeguarded or monitored. • Incomplete asset information can hinder effective decision-making processes, as stakeholders may lack a comprehensive understanding of the company's resources and capabilities. 2 4.2.2 Explain ONE point to illustrate the importance of authorisation before purchasing fixed assets. Any ONE valid point   Part mark for incomplete / unclear / partial answer • Control: ensures that purchases of fixed assets are aligned with budgets and financial goals, preventing overspending or unauthorized acquisitions / Ensures that only necessary and approved fixed assets are acquired • Accountability: assigns responsibility for fixed asset purchases to specific individuals/departments, promoting accountability and transparency in the procurement process. • Preventing misuse: helps prevent unauthorized or inappropriate purchases of fixed assets, reducing the risk of misuse of company resources. • Compliance with policies and procedures: ensures that fixed asset purchases adhere to organizational policies, procedures, and procurement guidelines, promoting consistency and compliance with internal controls. 2 Copyright reserved Please turn over Hosted by www.ecexams.co.za. ### Page 12 Downloaded from hlayiso.com 12 ACCOUNTING P2 (EC/SEPTEMBER 2023) 4.2.3 The auditor recommended the use of a barcode scanner. Explain to the directors how a barcode scanner will improve asset management. Any ONE valid point  Part mark for incomplete /unclear / partial answer • Efficiency: streamline asset tracking, saving time and effort. • Accuracy: reduce errors in data entry, ensuring precise asset records. • Inventory Control: prevent loss and theft by providing accurate asset location information. • Real-Time Updates: instant updates in the system/current status information. • Maintenance Tracking: assist in tracking maintenance tasks and schedules for assets. • Cost Reduction: reduces operational costs associated with manual processes. • Audit Compliance: accurate asset records aid in meeting audit requirements effortlessly. • Asset Lifecycle Management: support tracking assets from procurement to disposal, optimizing their use and return on investment. 2 QUESTION 4: TOTAL MARKS 25 TOTAL: 150 Copyright reserved Please turn over Hosted by www.ecexams.co.za. ## Related documents - [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 P1 GR12 QP SEPT2024 English](https://www.hlayiso.com/library/accounting-p1-gr12-qp-sept2024-english/815577e2-9528-4d64-854e-0d3f0cc0dd78) — Accounting · QP · 2024 · Eng - [Gr 12 Accounting P1 (English) June 2024 Possible Answers](https://www.hlayiso.com/library/gr-12-accounting-p1-english-june-2024-possible-answers/11d6484c-77b1-4a71-8799-a6e1177c4dbc) — 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 - [ACCOUNTING P2 GR12 MEMO SEPT 2020 English](https://www.hlayiso.com/library/accounting-p2-gr12-memo-sept-2020-english/b6d54b19-200a-4cbf-aaad-8df18fd74e19) — Accounting · Memo · 2020 · Eng - [ACCOUNTING P1 QP GR12 JUNE 2024 English](https://www.hlayiso.com/library/accounting-p1-qp-gr12-june-2024-english/11d1ced2-c8c5-4ce3-97cc-34b06c5cad08) — Accounting · QP · 2024 · Eng ## 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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