Accounting Grade 12 P1 Gauteng June 2024 Addendum (English)

Downloaded from hlayiso.com JUNE EXAMINATION GRADE 12 2024 ACCOUNTING (PAPER 1) ANSWER BOOK NAME AND SURNAME: NAME OF SCHOOL: LEARNER'S MODERATOR'S QUESTION TOPIC MARKS MARKS MARKS Statement of Comprehensive 1 Income, Notes and Statement of 65 Financial Position Cash Flow Statement and 2 40 Interpretation Analysis and Interpretation of 3 35 Financial Indicators Audit Reports and Corporate 4 10 Governance TOTAL 150 10 pages Please turn over

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 2 (PAPER 1) GR12 0624 QUESTION 1: STATEMENT OF COMPREHENSIVE INCOME, NOTES AND STATEMENT OF FINANCIAL POSITION (65 marks; 52 minutes) 1.1 COMPANY CONCEPTS 1.1.1 1.1.2 1.1.3 1.1.4 4 1.2 JONTY LIMITED 1.2.1 No. Workings Answer (i) (ii) (iii) (iv) 10 Please turn over

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 3 (PAPER 1) GR12 0624 1.2.2 Statement of Comprehensive Income for the year ended 29 February 2024 Sales (3 345 000 Cost of sales (2 787 500 Gross profit Other income Commission income 82 600 Bad debt recovered 3 260 Rent income (208 250 Gross operating income Operating expenses Salaries and wages 921 268 Audit fees 76 000 Loss on sale of asset 10 000 Sundry expenses 292 330 Bad debts (14 100 Depreciation (83 200 Directors' fees (1 540 000 Operating profit Interest income 27 000 Profit before interest expense Interest expense Net profit before tax Income tax Net profit after tax 28 Please turn over

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 4 (PAPER 1) GR12 0624 1.2.3 Ordinary Share Capital Note Authorised share capital: 3 000 000 ordinary shares 1 000 000 Ordinary shares at the beginning (120 000) Shares repurchased Shares at the end of the year 6 600 000 7 1.2.4 Equity and Liabilities section of the Statement of Financial Position on 29 February 2024 EQUITY AND LIABILITIES ORDINARY SHAREHOLDERS' EQUITY Ordinary share capital 6 600 000 Retained income NON-CURRENT LIABILITIES Mortgage loan CURRENT LIABILITIES Trade and other payables (774 290 TOTAL EQUITY AND LIABILITIES 16 65 Please turn over

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 5 (PAPER 1) GR12 0624 QUESTION 2.: CASH FLOW STATEMENT AND INTERPRETATION (40 marks; 32 minutes) DRUA LTD 2.1 (a) Operating profit before changes in working capital WORKINGS ANSWER 4 (b) Changes in working capital. Indicate whether there is an increase or decrease. Circle or underline the correct option. Increase in Inventory (135 850) Increase/Decrease in debtors Increase/Decrease in creditors Changes in working capital 9 (c) Income tax paid WORKINGS ANSWER 4 (d) Dividends paid WORKINGS ANSWER 3 (e) Cash Flow from Operating Activities WORKINGS ANSWER 6 Please turn over

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 6 (PAPER 1) GR12 0624 2.2 (a) Retained Income Note Balance at the beginning of the year 1 875 000 Ordinary share dividends (372 250) Final dividend 157 500 Balance at year end 2 661 750 5 (b) Cash Flow from financing activities 5 2.3 The Cash Flow Statement reflects some important decisions made by the directors over the past year. Explain ONE good decision and ONE bad decision made by the directors. Provide calculations/figures to support your answer. Good decision with figures Explanation Bad decision with figures Explanation 4 40 Please turn over

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 7 (PAPER 1) GR12 0624 QUESTION 3: ANALYSIS AND INTERPRETATION OF FINANCIAL INDICATORS (35 marks; 28 minutes) 3.1 3.1.1 3.1.2 3.1.3 3 3.2 JACKSON LTD 3.2.1 Net profit after tax on sales WORKINGS ANSWER 3 Return on shareholders' equity WORKINGS ANSWER 4 3.2.2 Comment on Jackson Ltd's ability to control expenses. Quote financial indicators and figures to support your answer. 3 Please turn over

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 8 (PAPER 1) GR12 0624 3.2.3 The directors of the company feel that working capital has improved over the financial period. Quote TWO financial indicators and figures that support the directors’ opinion. Comment on the figures provided. 6 3.2.4 The directors decided to take out an additional loan at the start of the current period. In hindsight, some of the directors think that this was a poor decision. Discuss the impact that the additional loan has on the business. Quote financial indicators and figures to support your answer. 6 Please turn over

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 9 (PAPER 1) GR12 0624 3.2.5 Jenny Gusto is a shareholder of the company. She currently owns 12 500 shares and is considering selling her shares as she views the company as underperforming. Provide ONE reason with financial indicators and figures to support Jenny’s view to sell her shares. 3 Provide ONE reason with financial indicators and figures to convince Jenny to reconsider her decision and keep her shares. 3 3.2.6 If Jenny sells her shares now, calculate whether she will make a profit or loss. Jenny purchased all the shares at an issue price of R5,80 per share, two years ago. WORKINGS ANSWER 4 35 Please turn over

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 10 (PAPER 1) GR12 0624 QUESTION 4: AUDIT REPORTS AND CORPORATE GOVERNANCE (10 marks; 8 minutes) 4.1 What kind of audit report did Broderick Ltd receive from the independent auditors, Vilakazi and Son? 1 4.2 As a shareholder, explain why you would be concerned about this audit report. State TWO points. 4 4.3 Give TWO examples of audit evidence that auditors will require when fulfilling their duties. 2 4.4 Explain the role/responsibility of the remuneration committee and give a reason why this committee is necessary. Explanation: Reason: 3 10 TOTAL: 150 END

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JUNE EXAMINATION GRADE 12 2024 ACCOUNTING (PAPER 1) ANSWER BOOK Downloaded from hlayiso.com