# Accounting Grade 12 P1 Gauteng June 2024 QP (Eng) > Grade 12 Accounting Paper 1 question paper from the Gauteng June Exam 2024 (English), 13 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/gr-12-accounting-p1-english-june-2024-question-paper/5bfb123d-7847-44f9-a198-d00e62476f32 - Updated: 2026-09-27 - Subject: Accounting - Grade: Grade 12 - Language: English - Document type: Question paper - Year: 2024 - Exam period: Gauteng June Exam - Paper: 1 - Curriculum: CAPS - Pages: 13 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 P1 Gauteng June 2024 QP (Eng)](https://www.hlayiso.com/library/gr-12-accounting-p1-english-june-2024-question-paper/5bfb123d-7847-44f9-a198-d00e62476f32) ## About this document Accounting · Grade 12 · Gauteng June Exam · 2024 · English. Question paper, 13 pages. Read online or download the PDF. Read it free online on the page above; download the PDF from there. ## Matching paper and memo - [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) — Memo · 2024 · Eng ## Document text Text extracted from the PDF. Layout, diagrams and tables may not survive extraction. ### Page 1 Downloaded from hlayiso.com JUNE EXAMINATION GRADE 12 2024 ACCOUNTING (PAPER 1) TIME: 2 hours MARKS: 150 12 pages + 1 formula sheet and an answer book of 10 pages Please turn over ### Page 2 Downloaded from hlayiso.com ACCOUNTING 2 (PAPER 1) GR12 0624 INSTRUCTIONS AND INFORMATION Read the following instructions carefully and follow them precisely. 1. Answer ALL the 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. The use of this formula sheet is NOT compulsory. 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 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 Statement of Comprehensive Income, 1 Notes and Statement of Financial 65 52 Position Cash Flow Statement and 2 40 32 Interpretation Analysis and Interpretation of Financial 3 35 28 Indicators Audit Reports and Corporate 4 10 8 Governance TOTAL 150 120 Please turn over ### Page 3 Downloaded from hlayiso.com ACCOUNTING 3 (PAPER 1) GR12 0624 QUESTION 1: STATEMENT OF COMPREHENSIVE INCOME, NOTES AND STATEMENT OF FINANCIAL POSITION (65 marks; 52 minutes) 1.1 COMPANY CONCEPTS Choose a description from COLUMN B that matches a term/concept in COLUMN A. Write only the letter (A – D) next to the question numbers (1.1.1 to 1.1.4) in the ANSWER BOOK. COLUMN A COLUMN B 1.1.1 Director A Responsible for expressing an opinion on the financial statements of a company 1.1.2 IFRS B Owners of the company 1.1.3 Independent auditor C An elected member of the board responsible for running the business and 1.1.4 Shareholders implementing policy D Guidelines for the preparation of financial statements to ensure consistency (4 x 1) (4) 1.2 JONTY LIMITED The following information relates to Jonty Limited. The financial year ends on 29 February 2024. REQUIRED: 1.2.1 Refer to Information C. Calculate the missing amounts denoted by (i) to (iv) on the Fixed Asset Note. (10) 1.2.2 Complete the Statement of Comprehensive Income (Income Statement) for the year ended 29 February 2024. Certain amounts have been entered in the Income Statement. (28) 1.2.3 Refer to Information D. Complete the Ordinary Share Capital Note. (7) 1.2.4 Complete the Equity and Liabilities section of the Statement of Financial Position (Balance Sheet) on 29 February 2024. (16) Please turn over ### Page 4 Downloaded from hlayiso.com ACCOUNTING 4 (PAPER 1) GR12 0624 INFORMATION: A. Extract of a list of balances/totals on 29 February 2024: Balance Sheet Accounts Section R Ordinary share capital 6 600 000 Retained income (29 February 2024) ? Land and buildings 7 890 720 Mortgage Loan: ZX-Bank 1 609 000 Vehicles 452 000 Equipment (1 March 2023) 790 000 Accumulated depreciation on vehicles (1 March 2023) 236 000 Accumulated depreciation on equipment (1 March 2023) 710 000 Trading stock 1 230 000 Provision for bad debts 22 000 Creditors’ control 774 290 Shareholders for dividends ? SARS: Income tax (Provisional payments) 150 000 Nominal Accounts Section Sales 3 345 000 Cost of sales 2 787 500 Salaries and wages 921 268 Audit fees 76 000 Directors’ fees 1 540 000 Sundry expenses 292 330 Commission income 82 600 Bad debts 14 100 Bad debts recovered 3 260 Rent income 208 250 Packing material 3 700 Interest on fixed deposit 27 000 Ordinary share dividends 55 000 Please turn over ### Page 5 Downloaded from hlayiso.com ACCOUNTING 5 (PAPER 1) GR12 0624 B. Additional information and adjustments: (i) A credit note for R14 400 was issued on 29 February 2024 for goods returned by customer P. Mahlangu. Goods were sold with a mark-up of 20% on cost price. No entry has been made for this transaction. (ii) Stock on hand, as per physical stock taking on 29 February 2024:  Trading stock R1 239 000  Packing material R980 (iii) A debtor, Z. Smith was declared insolvent. Her estate paid 55c in the rand. An amount of R660 was received and recorded. The balance of her account must be written off. (iv) Provision for bad debts must be adjusted to R21 220. (v) The premises have been rented for the past five years. The rent for March 2024 has been received and recorded. Due to renovations, the rent was decreased by 25% per month for only three months, from April to June 2023. (vi) A debtor with a credit balance of R10 900 is to be transferred to the Creditors’ Ledger. (vii) The company has three directors earning the same monthly fee. Two directors have been employed since 2022, and a new director was appointed on 1 September 2023. One director went overseas and was only paid until 31 December 2023. Provide for the outstanding director’s fees. (viii) The loan statement received from ZX Bank on 29 February 2024 indicated the following: R Balance at beginning of financial year 2 509 000 Repayments per month (including interest) 75 000 Interest capitalised ? Balance at end of financial year 1 984 000 NOTE:  The interest and repayments of the loan will remain the same for the next financial year. (ix) SARS Income tax: R17 000 is still payable to SARS. Please turn over ### Page 6 Downloaded from hlayiso.com ACCOUNTING 6 (PAPER 1) GR12 0624 C. Incomplete Fixed Asset Note and additional Information: LAND AND VEHICLES EQUIPMENT BUILDINGS Carrying value at the beginning of 416 000 the year Cost (i) 790 000 Accumulated depreciation (236 000) (710 000) Movements Addition at cost 1 500 000 0 150 000 Disposal at carrying value (ii) 0 Depreciation (83 200) (iv) Carrying value at the end of the 7 890 720 (iii) year Cost 7 890 720 452 000 Accumulated depreciation (247 200)  Land and buildings were purchased during the financial year for R1 500 000. This has been properly recorded.  Depreciation on vehicles is calculated at 20% p.a. on the diminishing- balance method. The total depreciation for the financial year amounted to R83 200.  On 29 February 2024 a vehicle costing R200 000 was sold for cash, for R118 000. The business made a loss of R10 000 on the sale of the asset.  Depreciation on equipment is calculated at 15% p.a. on the cost price. The company decided to invest in new equipment since the equipment was very old. The new equipment was bought on 1 November 2023 at a total cost of R150 000. D. Shares and dividends  Authorised shares consist of 3 000 000 shares.  On 1 March 2023, there were 1 000 000 shares in issue.  On 1 November 2023, the company repurchased 120 000 shares at R7,20 each, which was 20% above the average share price. These shares do not qualify for final dividends.  10% of unissued shares on 1 March 2023 were issued at R6,60 per share on 22 February 2024.  A final dividend of 22 cents per share was declared on 29 February 2024. All shareholders on the shares register qualify for the final dividend. E. The net asset value per share on 29 February 2024 is 620 cents. 65 Please turn over ### Page 7 Downloaded from hlayiso.com ACCOUNTING 7 (PAPER 1) GR12 0624 QUESTION 2.: CASH FLOW STATEMENT AND INTERPRETATION (40 marks; 32 minutes) DRUA LTD Drua Ltd is an apparel company specialising in the sale of rugby jerseys and other rugby apparel. REQUIRED: 2.1 Calculate the CASH FLOW FROM OPERATING ACTIVITIES section of the Cash Flow Statement by completing the following: (a) Operating profit before changes in working capital (4) (b) Changes in working capital. You must also indicate whether there is an increase/decrease in the item. Circle or underline the correct option provided in the ANSWER BOOK. (9) (c) Income tax paid (4) (d) Dividends paid (3) (e) Cash Flow from operating activities (6) 2.2 Calculate the CASH FLOW FROM FINANCING ACTIVITIES section of the Cash Flow Statement by completing the following: (a) Retained Income Note (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. (4) Please turn over ### Page 8 Downloaded from hlayiso.com ACCOUNTING 8 (PAPER 1) GR12 0624 INFORMATION: A. Extract of a list of balances on 31 March 2024 (after adjustments): 2024 2023 Sales 13 500 000 Cost of sales 8 437 500 Depreciation ? Interest on loan 185 000 Net profit before income tax 1 995 000 Net profit after income tax 1 396 500 Fixed assets (carrying value) 2 314 000 2 884 000 Fixed deposit: Gen Bank 210 000 150 000 Ordinary shareholders equity 11 200 000 9 675 000 Ordinary share capital 8 925 000 7 800 000 Retained income 2 661 750 1 875 000 Loan: BN Bank (14%) ? 1 425 000 SARS (income tax) 48 000 Cr 27 000 Dr Shareholder for dividends 157 500 107 250 Trading stock 1 005 000 870 000 Consumable stores on hand 14 250 13 400 Debtors' control 122 800 139 400 Bank 1 456 700 Dr 413 670 Cr Deposit for water and electricity 30 000 15 000 Creditors' control 89 200 104 300 SARS (PAYE) 12 500 14 780 B. Additional information: (i) Ordinary share capital:  1 500 000 shares have been authorised.  650 000 shares were issued at the end of the previous financial year, 31 March 2023.  100 000 ordinary shares were issued on 31 January 2024.  A number of ordinary shares were repurchased from unhappy shareholders. These shares were repurchased at R17,50 per share; the average price was R12,75 at the time of the repurchase.  700 000 ordinary shares were in issue at the end of the financial year 31 March 2024. (ii) Fixed assets:  No fixed assets were bought or sold during the current financial period. (iii) Loans:  Interest on loan is capitalised.  Payments (including interest) for the year were R710 000. Please turn over ### Page 9 Downloaded from hlayiso.com ACCOUNTING 9 (PAPER 1) GR12 0624 (iv) Dividends:  The total dividends for the year, R372 250. (v) Fixed deposits:  Additional investment in fixed deposit of R60 000 during the year. 40 QUESTION 3: ANALYSIS AND INTERPRETATION OF FINANCIAL INDICATORS (35 marks; 28 minutes) 3.1 Match the category of financial indicators with the correct description in the table below. Write only the letter (A – E) next to the question numbers (3.1.1 to 3.1.3) in the ANSWER BOOK, e.g. 3.1.4 F. A Profitability B Liquidity C Solvency D Return E Risk 3.1.1 Measures how well the business performed over an accounting period (1) 3.1.2 Measures how well the owner’s investment in the business has performed (1) 3.1.3 Measures the ability of a business to manage short-term debt (1) 3.2 JACKSON LTD The following information relates to Jackson Ltd. The financial year of the company ends on 30 April. REQUIRED: 3.2.1 Calculate the following financial indicators for the year ending 30 April 2024:  Net profit after tax on sales (3)  Returns on shareholders' equity (4) 3.2.2 Comment on the ability of Jackson Ltd to control expenses. Quote financial indicators and figures to support your answer. (3) Please turn over ### Page 10 Downloaded from hlayiso.com ACCOUNTING 10 (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) 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. Provide ONE reason with financial indicators and figures to convince Jenny to reconsider her decision and keep the shares. (6) 3.2.6 If Jenny sells her shares now, calculate whether she will make a profit or a loss. Jenny purchased all the shares at an issue price of R5,80 per share, two years ago. (4) INFORMATION: A. Extract of a list of balances and totals for the year ended 30 April: 2024 2023 Sales 6 750 000 5 940 000 Cost of sales 4 500 000 3 960 000 Operating expenses 1 180 000 1 120 000 Net profit before tax 945 000 735 000 Income tax (30%) 283 500 220 500 Trading stock 182 300 211 300 Ordinary share capital 3 900 000 3 600 000 Retained income 420 000 380 000 Shareholders for dividends 123 400 168 100 SARS (income tax) 43 400 32 800 Please turn over ### Page 11 Downloaded from hlayiso.com ACCOUNTING 11 (PAPER 1) GR12 0624 B. Financial indicators on 30 April: 2024 2023 Net profit after tax on sales ? 8,7% Operating expenses on sales 17,5% 18,9% Current ratio 1,9 : 1 2,8 : 1 Acid-test ratio 1,2 : 1 0,6 : 1 Average debtors’ collection period 35 days 29 days Average creditors payment period 62 days 40 days Return on shareholders’ equity ? 12% Return on average capital employed 16% 18% Debt-equity ratio 1:1 0,4 : 1 Net asset value per share 805 cents 776 cents JSE market price per share 702 cents 791 cents Alternative investments interest rate 7,5% 7,5% Interest rate on loans 18% 14% Credit policy 30 days 30 days Supplier terms 60 days 60 days Rate of inflation 5% 4% 35 QUESTION 4: AUDIT REPORTS AND CORPORATE GOVERNANCE (10 marks; 8 minutes) AUDIT REPORT Refer to the extract of an audit report on Broderick Limited below and answer the following questions. 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 would you 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) Please turn over ### Page 12 Downloaded from hlayiso.com ACCOUNTING 12 (PAPER 1) GR12 0624 INFORMATION: EXTRACT FROM THE REPORT OF THE INDEPENDENT AUDITORS Basis for our opinion The company's procurement policy states that purchases over R500 000 must be approved by the board of directors and supported by three quotations from independent suppliers. During the year under review the company purchased a vehicle at a cost of R1 100 000. This was approved by the CEO without reference to the board. Only one quotation was received. Audit opinion Because of the significance of this matter, we have not been able to obtain sufficient audit evidence to provide a basis for an opinion. Accordingly, we do not express an opinion on the financial statements of Broderick Ltd for the year ended 29 February 2024. Vilakazi and Son, CA (SA) 4.4 CORPORATE GOVERNANCE Shareholders and employees associated with a company will be particularly interested in whether the company is well governed and managed by the directors. According to the Companies Act, 2008 (Act 11 of 2008), a company must have a Remunerations Committee. Explain the role/responsibility of this committee and give a reason why this committee is necessary. (3) 10 TOTAL: 150 END ### Page 13 Downloaded from hlayiso.com ACCOUNTING 13 (PAPER 1) GR12 0624 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 Average debtors x 365 Average creditors x 365 Credit sales 1 Cost of sales 1 Net income after tax x 100 Net income after tax x 100 Average shareholders' equity 1 Number of issued shares 1 (*See note 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: * In this case, 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. ## Related documents - [ACCOUNTING P1 MEMO GR12 JUNE 2024 English](https://www.hlayiso.com/library/accounting-p1-memo-gr12-june-2024-english/ef245808-e780-418c-ba92-6f41e021a333) — Accounting · Memo · 2024 · 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) — Accounting · Addendum · 2025 · Eng - [Accounting P1 (English) June 2025 Possible Answers](https://www.hlayiso.com/library/accounting-p1-english-june-2025-possible-answers/86671777-58f6-4c82-932c-4924bae022c0) — Accounting · Memo · 2025 · Eng - [ACCOUNTING P1 GR12 AB JUNE 2023 English](https://www.hlayiso.com/library/accounting-p1-gr12-ab-june-2023-english/bd3063b8-4a97-4989-8498-a76ffb82e60a) — Accounting · QP · 2023 · Eng - [ACCOUNTING P1 GR12 QP SEPT 2023 English](https://www.hlayiso.com/library/accounting-p1-gr12-qp-sept-2023-english/86b103e1-05b3-4ddd-9077-02c461ae7d17) — Accounting · QP · 2023 · Eng - [ACCOUNTING P1 GR12 QP SEPT 2021 English D REV](https://www.hlayiso.com/library/accounting-p1-gr12-qp-sept-2021-english-d-rev/bd359bc3-aaa6-4466-a680-12cf6f56610f) — Accounting · QP · 2021 · 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 - [Acc P2 Memo ENg watermark](https://www.hlayiso.com/library/acc-p2-memo-eng-watermark/5c899e95-f3c2-4bf6-b539-ed8b1bcec50d) — Memo · 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 - [Accounting Grade 12 NSC ANSWER BOOK P2 May June 2025 KZN](https://www.hlayiso.com/library/accounting-grade-12-nsc-answer-book-p2-may-june-2025-kzn/b9529d65-7fc3-420f-8a91-05ec30b0d61b) — Addendum · 2025 - [Accounting Grade 12 NSC MEMO P1 May June 2025 Limpopo](https://www.hlayiso.com/library/accounting-grade-12-nsc-memo-p1-may-june-2025-limpopo/4bc5dfae-35c0-4acd-83c3-4b53266a3680) — Memo · 2025 ## 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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