Accounting Grade 12 P2 November 2024 NSC QP (Eng)

Confidential NATIONAL SENIOR CERTIFICATE GRADE 12 ACCOUNTING P2 NOVEMBER 2024 MARKS: 150 TIME: 2 hours This question paper consists of 14 pages, a formula sheet and a 12-page answer book. Copyright reserved Please turn over

Accounting/P2 2 DBE/November 2024 NSC Confidential KEEP THIS PAGE BLANK. Copyright reserved Please turn over

Accounting/P2 3 DBE/November 2024 NSC Confidential INSTRUCTIONS AND INFORMATION Read the following instructions carefully and follow them precisely. Nov 1. Answer ALL questions. 2. A special ANSWER BOOK is provided in which to answer ALL questions. 3. A Financial Indicator Formula Sheet is attached at the end of this question paper. 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 TOPIC MARKS MINUTES 1 Debtors' Reconciliation, Age Analysis and VAT 40 35 2 Stock Valuation 35 25 3 Budgeting 40 35 4 Cost Accounting 35 25 TOTAL 150 120 Copyright reserved Please turn over

Accounting/P2 4 DBE/November 2024 NSC Confidential QUESTION 1: DEBTORS' RECONCILIATION, AGE ANALYSIS AND VAT (40 marks; 35 minutes) 1.1 Indicate whether the following statements are TRUE or FALSE. Write only 'true' or 'false' next to the question numbers (1.1.1 to 1.1.3) in the ANSWER BOOK. 1.1.1 EFT payments by debtors should be recorded in the CRJ, only after receiving proof of payment or an entry on the business' bank statement. 1.1.2 Output VAT is regarded as an asset. 1.1.3 VAT on bad debts will decrease VAT payable to SARS. (3 x 1) (3) 1.2 MATSAMO TRADERS The information relates to Matsamo Traders for August 2024. The business sells goods for cash and on credit. REQUIRED: 1.2.1 Calculate the correct balance of the Debtors' Control account on 31 August 2024. Provide figures and a plus (+) or minus (–) sign for each correction. If there is no change to the balance, indicate with (0). (5) 1.2.2 Complete the correct Debtors' List on 31 August 2024. The pre-adjustment figures have been entered. (14) INFORMATION: A. Balances on 31 August 2024 before taking the errors and omissions below into account: (i) Debtors' Control Account balance in the General Ledger, R359 100 (ii) List of debtors' balances as per Debtors' Ledger: Debtors Amount (R) N Naidoo 63 000 S Sibiya 69 000 V Esterhuizen 114 000 J Nyoka 95 700 W du Plessis 11 500 Total 353 200 B. Errors and omissions: (i) No entry was made for the credit sale invoice issued to N Naidoo, R4 500. (ii) Merchandise sold on credit to S Sibiya for R18 000 was incorrectly posted to the account of V Esterhuizen. (iii) The debtors' allowances column in the DAJ was undercast by R11 000. (iv) An EFT payment of R5 700 was made by W du Plessis. This was correctly recorded in the relevant journal, but was posted as R7 500 to his account in the Debtors' Ledger. (v) Credit sales to V Esterhuizen, R5 200, were incorrectly recorded as R2 500 in the Debtors' Journal and posted as such to the Debtors' Control Account and Esterhuizen's account in the Debtors' Ledger. (vi) Goods returned by J Nyoka, R3 450, were posted to the wrong side of his account in the Debtors' Ledger. Copyright reserved Please turn over

Accounting/P2 5 DBE/November 2024 NSC Confidential 1.3 DEBTORS' AGE ANALYSIS The information relates to Timo Traders. Their credit terms are 60 days and it is expected at least 90% of debtors will adhere to these terms. REQUIRED: 1.3.1 Provide a calculation or figures to show why Timo Traders should not be satisfied with the figures in the Debtors' Age Analysis. (4) 1.3.2 Explain TWO points of advice that you will offer to the owner. (4) NOTE:  Maximum discount is granted to debtors who settle their accounts timeously.  Interest at the accepted rate is being charged. INFORMATION: Debtors' Age Analysis on 31 August 2024: Current Total 30 days 60 days 90 days 90 + month R240 000 R118 000 R36 000 R38 000 R29 200 R18 800 1.4 VALUE-ADDED TAX The following information relates to the financial records of Zaba Stores for the VAT period ended 31 August 2024. 15% VAT is applicable. Certain items are zero-rated. REQUIRED: Analyse the transactions under the headings provided in the ANSWER BOOK. Indicate the effect of EACH answer on the amount payable to SARS. Refer to the example completed in the ANSWER BOOK. (10) INFORMATION: Example: The owner took stock for private use, cost price R5 200 (excluding VAT). A. Received discount of R17 250 when settling the account of the supplier. B. Merchandise amounting to R139 200 (VAT exclusive), including zero-rated items for R9 200, were sold on credit. C. Bought merchandise on credit from the supplier. The invoice received totalled R23 000 (VAT inclusive). Trade discount of 10% was incorrectly omitted from the invoice. 40 Copyright reserved Please turn over

Accounting/P2 6 DBE/November 2024 NSC Confidential QUESTION 2: STOCK VALUATION (35 marks; 25 minutes) 2.1 SUNGLASS CITY Nosisa is the owner of Sunglass City, selling one type of popular branded sunglasses. The financial year ended on 29 February 2024. NOTE: Where comments or explanations are required, you should:  Quote calculations, figures and/or trends  Give a reason or an explanation in EACH case REQUIRED: 2.1.1 Calculate the weighted average cost of ONE pair of sunglasses. (5) 2.1.2 Nosisa suspects that some sunglasses were stolen during the year.  Calculate the number of sunglasses stolen. (4)  Calculate the rand value of the sunglasses stolen, using the weighted-average stock valuation method. (2) 2.1.3 Calculate the value of closing stock using the first-in-first-out (FIFO) method. (5) 2.1.4 A whistle-blower has informed Nosisa that Micha (sales person) and Jack (supplier's delivery driver) have conspired to sell sunglasses at a reduced price. During an investigation it was discovered that the sunglasses sold were invoiced to the business. Nosisa has confirmed that the sunglasses were missing.  Explain how Nosisa could have proven Jack and Micha guilty of the theft of the stock. Provide ONE point. (2)  What action should have been taken against Micha and Jack? Provide ONE point for each person. (4) INFORMATION A. Stock records: (one 'unit' refers to one pair of sunglasses) TOTAL UNITS (R) Opening stock (1 March 2023) 620 1 719 000 Closing stock (29 February 2024) 840 ? B. Purchases and returns during the financial year: UNIT PRICE TOTAL UNITS (R) (R) May 2023 855 3 200 2 736 000 August 2023 800 3 750 3 000 000 November 2023 745 4 200 3 129 000 December 2023 (20) 4 200 (84 000) TOTALS 2 380 8 781 000 C. Sales: 2 050 pairs of sunglasses were sold during the year at R5 600 per pair. Copyright reserved Please turn over

Accounting/P2 7 DBE/November 2024 NSC Confidential 2.2 PROBLEM-SOLVING The information is related to Slim-Line Boutique, owned by Mike Ndlela, for the year ended 29 February 2024. The business sold trousers and casual shirts throughout the year and introduced and sold formal shirts only from 1 November 2023. REQUIRED: 2.2.1 Trousers:  Calculate the mark-up percentage achieved for trousers. (3)  Comment on whether the mark-up percentage would benefit the business or not. (2) 2.2.2 Casual shirts: Comment on how the return of 120 casual shirts would affect the business negatively. Provide ONE point. (2) 2.2.3 Formal shirts:  Calculate how long (in days) it will take Mike to sell the closing stock of the formal shirts. (4)  Comment on ONE other point that might concern Mike about the formal shirts. (2) INFORMATION: Shirts Trousers (units) (units) Casual Formal Opening stock in units 140 200 0 Purchases during the year 720 1 300 980 Closing stock 285 100 125 Returns 15 120 0 Total units sold: 560 1 280 855 On-site 344 560 855 Online 216 720 0 Stock holding period 186 days 29 days ? Mark-up percentage per item ? 55% 25% Cost price per item R500 R400 R680 Cost of sales R280 000 R512 000 R581 400 Selling price per item R920 R620 R850 Total cash sales banked R515 200 R793 600 R726 750 35 Copyright reserved Please turn over

Accounting/P2 8 DBE/November 2024 NSC Confidential QUESTION 3: BUDGETING (40 marks; 35 minutes) 3.1 Show the amounts for the transactions below in the appropriate columns for the Cash Budget and the Projected Statement of Comprehensive Income for December 2024 in the ANSWER BOOK. Example: Monthly insurance premium for December 2024, R5 000, will be paid. 3.1.1 Expected cash sales for December 2024, R132 000. Cost of sales, R101 000. 3.1.2 Drawings by the owner budgeted for December 2024, R40 000. This includes R34 000 cash and the remainder for merchandise. 3.1.3 A fixed deposit of R245 000 will mature on 31 December 2024. A direct deposit of R264 600 (inclusive of interest) will be made into the current banking account of the business on this date. Interest is not capitalised. (6) 3.2 JESARY SUPERSPARES The information relates to the budget period ending 31 December 2024. The business is owned by Bluey Summers. REQUIRED: 3.2.1 Creditors' Payment:  Calculate the credit purchases for November 2024. (4)  Complete the Creditors' Payment Schedule for December 2024. (5) 3.2.2 Calculate the following amounts: (i) Rent expense for December 2024 (2) (ii) Interest on loan for December 2024 (4) (iii) Deposit to be paid on 30 November 2024 for the new computers installed (3) (iv) Insurance for December 2024 (3) (v) Salaries for November 2024 (3) 3.2.3 Sales policy: Refer to Information I. Bluey effected changes to the sales policy from October 2024.  Explain the change in the sales policy effected by Bluey in compiling his budget for October 2024. Provide ONE point with figures. (2)  The actual credit sales were higher than the budgeted credit sales for October 2024. Explain why Bluey should not be concerned. Provide TWO points with figures. (4)  Comment on the control over delivery expenses and packing materials for October 2024. Quote figures. (4) Copyright reserved Please turn over

Accounting/P2 9 DBE/November 2024 NSC Confidential INFORMATION: A. Sales and Debtors' Collection:  60% of total sales is cash sales. B. Purchases of stock and payment to creditors:  Goods are sold at a mark-up of 25% on cost.  Trading stock on hand is maintained through monthly purchases.  The business buys merchandise only on credit.  Creditors are paid as follows: o 75% in the month after date of purchase to qualify for 3% discount. o The balance is paid in the month thereafter. C. Rent expense:  The business rents premises in a shopping centre.  Rent will increase by 6% during December 2024. D. Loan:  Part of the loan from Diamond Bank will be paid on 1 December 2024.  Interest at 14% p.a. is paid at the end of each month. Interest is not capitalised. E. Office computers:  New computers will be installed and will be operational from 30 November 2024.  20% cash deposit must be paid on 30 November 2024.  The balance will be repaid in 36 equal monthly instalments from 31 December 2024. F. Insurance:  The current monthly insurance premium on the existing computers is R4 500. This monthly premium will increase by 28% from 1 December 2024 to get additional insurance cover on the new computers installed.  The renewal period of other items insured will only come into effect next year. Copyright reserved Please turn over

Accounting/P2 10 DBE/November 2024 NSC Confidential G. Salaries:  The business has 9 employees who earn the same monthly salary.  5 of the employees will receive a bonus of 70% of the normal monthly salary during December 2024. H. Extract from the Cash Budget for the period ending 31 December 2024. Nov. 2024 Dec. 2024 RECEIPTS (R) (R) Cash sales 103 200 112 200 Collection from debtors PAYMENTS Payment to creditors 207 012 ? Rent expense 29 000 (i) Salaries (v) 143 750 Drawings 50 000 50 000 Loan repayment 60 000 Interest on loan (14% p.a.) 3 500 (ii) Deposit and instalments for new computers (iii) 9 800 Insurance 17 500 (iv) I. Figures for September 2024 (budgeted) and October 2024 (budgeted and actual): SEPTEMBER OCTOBER 2024 2024 BUDGETED BUDGETED ACTUAL Number of customers 520 540 729 Sales R145 000 R160 000 R221 000 Cash sales 58 000 96 000 76 000 Credit sales 87 000 64 000 145 000 Gross profit 54 375 60 000 82 875 Delivery expenses 21 750 24 000 33 150 Packing materials 13 050 14 400 26 520 40 Copyright reserved Please turn over

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Accounting/P2 12 DBE/November 2024 NSC Confidential QUESTION 4: COST ACCOUNTING (35 marks; 25 minutes) 4.1 FLOWERPOTS MANUFACTURERS The business manufactures large concrete flowerpots. Their financial year ended on 29 February 2024. REQUIRED: 4.1.1 Refer to Information A. Calculate the direct/raw material cost. (4) 4.1.2 Refer to Information B. Calculate the direct labour cost. (7) 4.1.3 Refer to Information C. Complete the Factory Overhead Cost Note. (8) INFORMATION: A. Direct/Raw materials cost: The business uses a high quality concrete mix to make the pots. Production requirements:  4 800 units were produced and sold during the financial year.  Each complete pot requires 1,4 packets of direct materials (concrete mix).  The business allows for wastage of 10% of direct materials (concrete mix).  The cost price of concrete mix was maintained at R125 per packet for the financial year. B. Direct labour cost:  Direct labour budgeted for the year amounted to R1 117 200.  The business has 7 direct workers. Each worker is required to work 1 680 hours per year and is paid the same hourly rate. The following items have not yet been recorded:  One worker resigned on 31 October 2023. This worker did not work overtime.  Three of the direct workers were required to work overtime of 60 hours each during the year. Overtime rate is 1,6 times the normal hourly rate. Copyright reserved Please turn over

Accounting/P2 13 DBE/November 2024 NSC Confidential C. Extract of pre-adjustment amounts on 29 February 2024: The bookkeeper calculated the factory overhead cost as R1 132 700. Other pre-adjustment amounts on 29 February 2024: R Office salaries 247 800 Advertising 27 450 Rental of sales department property 25 200 Bad debts 18 700 Adjustments to factory overheads:  The clerk was paid a salary of R9 200 per month, which was recorded as an administration cost. 20% must be allocated to the office and the rest to production.  Rent of R126 000 was shared and recorded according to the following floor area by the bookkeeper: TOTAL FACTORY OFFICE SALES 600 m2 400 m2 80 m2 120 m2  However, since the beginning of the financial year, the annual rent has increased to R157 500 as the size of the factory has increased. The bookkeeper did not consider the increased rent of R157 500 and the following adjusted floor areas: TOTAL FACTORY OFFICE SALES 800 m2 600 m2 80 m2 120 m2 Copyright reserved Please turn over

Accounting/P2 14 DBE/November 2024 NSC Confidential 4.2 TIMEPIECE MANUFACTURERS The business manufactures watches and is owned by Jabu Tallies. The financial year ended on 31 August 2024. NOTE: Where comments or explanations are required, you should:  Quote calculations, figures and/or trends  Give an explanation or a reason in each case REQUIRED: 4.2.1 Comment on the level of production and break-even point on 31 August 2024. (4) 4.2.2 Comment on the gross profit earned by the business and the price charged for the watches. In your opinion, explain if Jabu's customers found the 2024 price reasonable. Provide figures. (4) 4.2.3 Identify the TWO main costs that would have a positive effect on the selling price. In each case, provide a strategy that Jabu would have implemented. (4) 4.2.4 Jabu wishes to increase his profit by R300 000 during the next financial year, while maintaining the costs. Calculate the price that he would have to charge his customers in order to produce 400 extra units. (4) INFORMATION: 31 August 2024 31 August 2023 R R Total sales 3 712 800 2 880 900 Gross profit 1 237 600 960 300 Total variable cost 2 748 200 2 217 420 Total fixed cost 1 820 000 1 820 000 Cost per unit Cost per unit R R Variable costs per unit 755 762 Direct material cost 450 520 Direct labour cost 185 132 Selling and distribution cost 120 110 Units Units Number of units produced and sold 3 640 2 910 Break-even point 6 868 7 983 Selling price per unit R1 020 R990 35 TOTAL: 150 Copyright reserved

Accounting/P2 DBE/November 2024 NSC Confidential GRADE 12 ACCOUNTING FINANCIAL INDICATOR FORMULA SHEET Gross profit x 100 Gross profit x 100 Sales 1 Cost of sales 1 Net profit before tax x 100 Net profit after tax x 100 Sales 1 Sales 1 Operating expenses x 100 Operating profit x 100 Sales 1 Sales 1 Total assets : Total liabilities Current assets : Current liabilities (Current assets – Inventories) : Current liabilities Non-current liabilities : Shareholders' equity (Trade & other receivables + Cash & cash equivalents) : Current liabilities Average trading stock x 365 Cost of sales . Cost of sales 1 Average trading stock (See Note 1 below) Average debtors x 365 Average creditors x 365 Credit sales 1 Cost of sales 1 (See Note 2 below) Net income after tax x 100 Net income after tax x 100 Number of issued shares 1 Average shareholders' equity 1 (See Note 3 below) Net income before tax + Interest on loans x 100 Average shareholders' equity + Average non-current liabilities 1 Shareholders' equity x 100 Dividends for the year x 100 Number of issued shares 1 Number of issued shares 1 Interim dividends x 100 Final dividends x 100 Number of issued shares 1 Number of issued shares 1 Dividends per share x 100 Dividends for the year x 100 Earnings per share 1 Net income after tax 1 Total fixed costs . Selling price per unit – Variable costs per unit NOTE: 1. Trading stock at the end of a financial year may be used if required in a question. 2. Credit purchases may be used instead of cost of sales (figures will be the same if stock is constant). 3. If there is a change in the number of issued shares during a financial year, the weighted-average number of shares is used in practice. Copyright reserved