Accounting Grade 11 Paper 1 Gauteng November 2021 Addendum

Downloaded from hlayiso.com GAUTENG DEPARTMENT OF EDUCATION PROVINCIAL EXAMINATION NOVEMBER 2021 GRADE 11 ACCOUNTING PAPER 1 ANSWER BOOK TIME: 2 hours MARKS: 150 10 pages Name of school: Name of learner: Grade: MAXIMUM QUESTION MARKS AWARDED MODERATED MARKS 1 30 2 40 3 50 4 30 TOTAL 150 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 2 PAPER 1 GRADE 11 QUESTION 1.1 1.1.1 1.1.2 1.1.3 1.1.4 1.1.5 5 QUESTION 1.2 1.2.1 Depreciation on equipment AMOUNT Old equipment New equipment Total depreciation for the year 5 1.2.2 Depreciation on vehicles AMOUNT Depreciation on vehicle sold P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 3 PAPER 1 GRADE 11 Depreciation on remaining vehicles Total depreciation for the year 8 1.2.3 FIXED/TANGIBLE ASSETS VEHICLES EQUIPMENT Carrying value at beginning of year Cost 2 680 000 810 000 Accumulated depreciation (1 060 000) (240 000) Movements Additions at cost Disposals at carrying value Depreciation Carrying value at end of year Cost Accumulated depreciation 12 TOTAL 30 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 4 PAPER 1 GRADE 11 QUESTION 2 INCOME STATEMENT OF WESTVILLE TRADERS FOR THE YEAR ENDED 28 FEBRUARY 2021 Sales Cost of sales 467 630 Gross profit Other operating income Rent income Provision for bad debts adjustment Discount received 17 550 Gross operating income Operating expenses Bad debts 1 020 Stationery Packing material Salaries and wages 175 170 Utilities Insurance 15 460 Advertising Telephone 21 570 Motor expenses 25 840 Maintenance 13 710 Discount allowed Bank charges Trading stock deficit Depreciation Operating profit Interest income 10 000 Profit before interest expense Interest expense Net profit for the year 40 TOTAL 40 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 5 PAPER 1 GRADE 11 QUESTION 3 3.1.1 3.1.2 3.1.3 3.1.4 4 3.2 FRANKENSTEIN TRADERS Extract of Balance Sheet on 28 February 2021 EQUITY AND LIABILITIES Partners’ Equity Capitals Current accounts Non-current liabilities Current liabilities Trade and other payables Total equity and liabilities 18 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 6 PAPER 1 GRADE 11 3.3 MARVELLOUS CANDY STORE CAPITAL Mr Marvel Ms Lane Balance at the beginning of the year 760 000 Contribution of capital during the year Withdrawal of capital during the year Balance at the end of the year 760 000 3 CURRENT ACCOUNTS Mr Marvel Ms Lane Profit as per Income Statement Partners’ salaries Partners’ bonus Interest on capital Primary distribution of profits Final distribution of profits 125 000 Drawings during the year Retained income for the year Retained income at beginning of year Retained income at end of year P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 7 PAPER 1 GRADE 11 Calculation: Interest on capital Mr Marvel Ms Lane Calculation: Salary Mr Marvel Calculation: Bonus Ms Lane Calculation: Final distribution Mr Marvel 25 TOTAL 50 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 8 PAPER 1 GRADE 11 QUESTION 4 CALCULATION OF FINANCIAL INDICATORS FOR 2021 4.1.1 Acid-test ratio: 4 4.1.2 Debt-equity ratio: 3 4.1.3 % return on average equity earned by the partnership: 5 4.2 Should the partners be concerned about the liquidity of the business for 2021? Quote TWO financial indicators. 5 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 9 PAPER 1 GRADE 11 4.3.1 Is it a good idea to borrow R300 000? Quote ONE financial indicator to support your answer. 4 4.3.2 Provide TWO other suggestions that the partners can consider instead of increasing the loan. 2 P.T.O.

Downloaded from hlayiso.com 4.4 Mike is concerned about the % return that he is earning. Is this a valid concern? Quote ONE financial indicator to support your answer. 4 4.5 Mike is not happy with Kate’s current contributions to the partnership. He has decided to have a meeting with her about this. List THREE points he should discuss with her at this meeting. 3 TOTAL 30 TOTAL: 150 END