# Accounting Grade 11 P1 Gauteng November 2021 Memo (English) > Grade 11 Accounting Paper 1 memorandum from the Gauteng November 2021 (English), 9 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/gr11-accounting-p1-eng-nov-possible-answers/e1fb9844-18a5-42d6-9fe2-ef735dce58c7 - Updated: 2026-09-27 - Subject: Accounting - Grade: Grade 11 - Document type: Memorandum - Year: 2021 - Exam period: Gauteng November - Paper: 1 - Curriculum: CAPS - Pages: 9 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 11](https://www.hlayiso.com/library/grade-11) › [Accounting](https://www.hlayiso.com/library/grade-11/accounting) › [Accounting Grade 11 P1 Gauteng November 2021 Memo (English)](https://www.hlayiso.com/library/gr11-accounting-p1-eng-nov-possible-answers/e1fb9844-18a5-42d6-9fe2-ef735dce58c7) ## About this document Accounting · Grade 11 · Gauteng November · 2021. Memorandum, 9 pages. 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Layout, diagrams and tables may not survive extraction. ### Page 1 Downloaded from hlayiso.com PROVINCIAL EXAMINATION NOVEMBER 2021 GRADE 11 ACCOUNTING (PAPER 1) MARKING GUIDELINES QUESTION TOTAL Question 1 30 Question 2 40 Question 3 50 Question 4 30 TOTAL 150 9 pages ### Page 2 Downloaded from hlayiso.com ACCOUNTING MEMORANDUM (PAPER 1) GRADE 11 QUESTION 1.1 1.1.1 Residual ✓ 1.1.2 GAAP ✓ 1.1.3 Matching ✓ 1.1.4 Depreciation ✓ 1.1.5 Accumulated depreciation ✓ 5 QUESTION 1.2 1.2.1 Depreciation on equipment AMOUNT Old equipment 810 000 x 20% 162 000  New equipment 120 000 ✓ x 20% x 3/12 ✓ = 6 000  5 Total depreciation for the year 168 000  1.2.2 Depreciation on vehicles AMOUNT Depreciation on vehicle sold 320 000 – 46 400 = 273 600 ✓ x 10/100 x 6/12 ✓ 13 680  2 ### Page 3 Downloaded from hlayiso.com ACCOUNTING MEMORANDUM (PAPER 1) GRADE 11 Depreciation on remaining vehicles 2 680 000 – 320 000 = 2 360 000 ✓ 134 640  1 060 000 – 46 400 = 1 013 600 ✓ 2 360 000 – 1 013 600 = 1 346 400 ✓ x 10% Total depreciation for the year 148 320  8 1.2.3 FIXED/TANGIBLE ASSETS VEHICLES EQUIPMENT Carrying value at beginning of year 1 620 000 ✓ 570 000 ✓ Cost 2 680 000 810 000 Accumulated depreciation (1 060 000) (240 000) Movements Additions at cost 120 000 ✓ Disposals at carrying value (320 000 – [46 400 + (259 920)  13 680] see 1.2.2 (148 Depreciation  see 1.2.1 (168 000)  320) Carrying value at end of year 1 211 760  522 000  Cost 2 360 000  930 000  Accumulated depreciation (1 148 240)  (408 000)  12 TOTAL 30 3 ### Page 4 Downloaded from hlayiso.com ACCOUNTING MEMORANDUM (PAPER 1) GRADE 11 QUESTION 2 INCOME STATEMENT OF WESTVILLE TRADERS FOR THE YEAR ENDED 28 FEBRUARY 2021 Sales (945 300✓ – 28 620 ✓) 925 680  3 Cost of sales (467 630) Gross profit 458 050  1 Other operating income 109 575  1 Rent income (99 750 ✓ – 8 250 ✓✓) 91 500  4 Provision for bad debts adjustment  525 (3 500 ✓ – 2 975 ✓) 3 Discount received 17 550 Gross operating income 567 625  1 Operating expenses (390 660)  1 Bad debts 1 020 Stationery (12 520 ✓ – 1 420 ✓) 11 100  3 Packing material 11 220 ✓ 1 Salaries and wages 175 170 Utilities (45 210 ✓ + 3 180 ✓) 48 390  3 Insurance 15 460 Advertising (17 080 ✓ – 2 100 ✓) 14 980  3 Telephone 21 570 Motor expenses 25 840 Maintenance 13 710 Discount allowed 1 11 070 Bank charges (3 560 ✓ + 320 ✓ + 1 120 ✓) 5 000  4 Trading stock deficit (174 120 – 171 020) 3 100 ✓ 2 Depreciation 33 030 ✓ 1 Operating profit 176 965  1 Interest income 10 000 Profit before interest expense 1 186 965  Interest expense (1 610 ✓ + 170 ✓ + 9 860 ✓) (11 640)  4 Net profit for the year 175 325 ✓ 40 2 TOTAL 40 4 ### Page 5 Downloaded from hlayiso.com ACCOUNTING MEMORANDUM (PAPER 1) GRADE 11 QUESTION 3 3.1.1 C✓ 3.1.2 A✓ 3.1.3 B✓ 4 3.1.4 E✓ 3.2 FRANKENSTEIN TRADERS Extract of Balance Sheet on 28 February 2021 EQUITY AND LIABILITIES Partners’ Equity 408 670 Capitals (200 000✓ + 170 000✓ + 30 000✓) 4 400 00  Current accounts (10 360 – 1 690) 2 8 670 ✓ Non-current liabilities Loan: ABSA (40 000 – 20 000) 2 20 000 ✓✓ Current liabilities 1 39 020  Trade and other payables (9 070✓ + 3 500✓ + 500✓ + 700✓) 5 13 770  Bank Overdraft (20 250 – 15 000) 2 5 250 ✓ Short term loan 1 20 000  Total equity and liabilities 1 467 690  18 5 ### Page 6 Downloaded from hlayiso.com ACCOUNTING MEMORANDUM (PAPER 1) GRADE 11 3.3 MARVELLOUS CANDY STORE CAPITAL Mr Marvel Ms Lane Balance at the beginning of the year 360 000 ✓ 760 000 Contribution of capital during the year 175 000 ✓ Withdrawals of capital during the year Balance at the end of the year 535 000  760 000 3 CURRENT ACCOUNTS Mr Marvel Ms Lane Profit per Income Statement 629 550  715 000  Partners’ salaries 349 800 ✓ 425 000 ✓ Partners’ bonus 12 000 ✓ 51 000 ✓ Interest on capital 80 250 ✓✓ 114 000 ✓✓ Primary distribution of profits 442 050  590 000  Final distribution of profits 187 500 ✓ 125 000 Drawings during the year *(60 000) ✓✓ (30 000) ✓ *(25 000 + 35 000) Retained income for the year 569 550  685 000  Retained income at beginning of year (2 300) ✓ 4 500 ✓ Retained income at end of year 567 250  689 500  25 6 ### Page 7 Downloaded from hlayiso.com ACCOUNTING MEMORANDUM (PAPER 1) GRADE 11 Calculation: Interest on capital Mr Marvel Ms Lane 535 000 x 15% = 80 250 760 000 x 15% = 114 000 Calculation: Salary Mr Marvel Calculation: Bonus Ms Lane 26 500 x 1,1 = 29 150 425 000 x 12% = 51 000 29 150 x 12 = 349 800 Calculation: Final distribution Mr Marvel 125 000 x 3/2 = 187 500 TOTAL 50 QUESTION 4 4.1 CALCULATION OF FINANCIAL INDICATORS FOR 2021 4.1.1 Acid-test ratio: 64 000 ✓ + 11 000 ✓ : 84 000 ✓ OR 171 000 ✓ – 96 000 ✓ : 84 000 ✓ OR 75 000 ✓✓ : 84 000 ✓ = 0,9 : 1  accept 0,89 : 1 4 4.1.2 Debt-equity ratio: 240 000 ✓ : 858 000 ✓ 0,3 : 1  accept 0,27 : 1 3 7 ### Page 8 Downloaded from hlayiso.com ACCOUNTING MEMORANDUM (PAPER 1) GRADE 11 4.1.3 % return on average equity earned by the partnership: 278 000 ✓ 100  ½ ✓ (858 000 ✓ + 1 210 000✓) 1 OR OR 278 000 ✓ 100  (1 034 000✓✓✓) 1 = 27%  accept 26.9% 5 4.2 Should the partners be concerned about the liquidity of the business for 2021? Quote TWO financial indicators. Comment ✓ Indicators ✓✓ Figures ✓✓ Current ratio decreased from 3,9 : 1 in 2020 to 2,2 : 1 in 2021. Acid test ratio decreased from 2,1 : 1 to 0,9 / 0,89 : 1 in 2021. The partners should not be concerned because the business is liquid. They should have no problem paying off their short-term debts. The liquidity ratios are far more efficient in 2021 as they were too high in 2020. 5 4.3.1 Is it a good idea to borrow R300 000? Quote ONE financial indicator to support your answer. Comment ✓✓ Indicators ✓ Figures ✓ Debt-equity ratio increased from 0,1 : 1 in 2020 to 0,3 : 1 in 2021. Yes, the partnership is lowly geared/has low risk. They are not making much use of loans. OR No, if they borrow R300 000 the debt-equity ratio will increase to 0,6 : 1 which increases the risk because there will be high interest and repayment commitments. 4 8 ### Page 9 Downloaded from hlayiso.com ACCOUNTING MEMORANDUM (PAPER 1) GRADE 11 4.3.2 Provide TWO other suggestions that the partners can consider instead of increasing the loan. Two valid suggestions ✓✓ • Increase their capital contributions • Get another partner • Use the fixed deposit 2 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. Explanation ✓✓ Figures ✓✓ Mike should be concerned as his % return on equity decreased from 29% in 2020 to 22% in 2021, While Kate’s % return on equity increased form 21% in 2020 to 36% in 2019 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. Three valid points ✓✓✓ • Kate withdrew R400 000 of her capital contribution during the year. • Kate has a negative current account due to drawings. • They receive the same salary, and they may not be doing the same amount of work. • They must renegotiate the partnership agreement as it is not fair on Mike. He provides 75% of the capital and has not drawn all his earnings, yet he 3 is earning a lower return. TOTAL 30 TOTAL: 150 9 ## Related documents - [Gr11 Accounting P1 (AFR) NOV Possible Answers](https://www.hlayiso.com/library/gr11-accounting-p1-afr-nov-possible-answers/f0005b8f-9cd3-4d4e-9734-cbe78273b662) — Accounting · Memo · 2021 · Afr - [Gr11 Accounting P1 (AFR) NOV Answer Book](https://www.hlayiso.com/library/gr11-accounting-p1-afr-nov-answer-book/b3397780-f91a-4188-abc4-42546bba18f6) — Accounting · Addendum · 2021 · Afr - [Gr11 Accounting P1 (ENG) NOV Answer Book](https://www.hlayiso.com/library/gr11-accounting-p1-eng-nov-answer-book/7e9a8cc3-4c71-4bba-8169-55eb38c790c9) — Accounting · Addendum · 2021 · Eng - [Gr11 Accounting P2 (ENG) NOV Possible Answers](https://www.hlayiso.com/library/gr11-accounting-p2-eng-nov-possible-answers/befdaccd-3076-4717-8512-3fb2893e0a0d) — Accounting · Memo · 2021 · Eng - [Gr11 Accounting P2 (AFR) NOV Possible Answers](https://www.hlayiso.com/library/gr11-accounting-p2-afr-nov-possible-answers/9e515382-95cd-45cc-8bff-a40fed69f07a) — Accounting · Memo · 2021 · Afr - [Gr11 Accounting P2 (ENG) NOV Answer Book](https://www.hlayiso.com/library/gr11-accounting-p2-eng-nov-answer-book/4ab14b2d-5f00-4754-8d2c-cb651412e59b) — Accounting · Addendum · 2021 · Eng ## More from Grade 11 Accounting - [GR11 Accounting Practice exam November Paper 1](https://www.hlayiso.com/library/gr11-accounting-practice-exam-november-paper-1/a786fffb-f00d-472f-a62b-80f038063c5b) — Guide - [Grade 11 Accounting P2 November 2026 Mock](https://www.hlayiso.com/library/grade-11-accounting-2026-november-mock-exam-question-paper-paper-2/23b01a3d-4c7f-4c08-87ca-2f521d5b13fd) — QP · 2026 · Eng - [ACCOUNTING P1 GR11 ANSWER BOOK NOV2025 Afrikaans watermark](https://www.hlayiso.com/library/accounting-p1-gr11-answer-book-nov2025-afrikaans-watermark/6daad69c-e558-4d79-9945-bdcc57c797b8) — Addendum · 2025 · Afr - [ACCOUNTING ANS BOOK GR11 NOV 2025 ENG watermark](https://www.hlayiso.com/library/accounting-ans-book-gr11-nov-2025-eng-watermark/23071d73-1633-476d-9eea-a35d45360d61) — QP · 2025 · Eng - [ACCOUNTING P1 GR11 QP NOV2025 Afrikaans watermark](https://www.hlayiso.com/library/accounting-p1-gr11-qp-nov2025-afrikaans-watermark/12583458-757b-44ed-b818-66dccc55c934) — QP · 2025 · Afr - [ACCOUNTING P2 QP GR11 NOV 2025 AFR watermark](https://www.hlayiso.com/library/accounting-p2-qp-gr11-nov-2025-afr-watermark/c1345715-0e44-4f64-9844-4e1a4ca18c22) — QP · 2025 · Afr ## Collection - [Grade 11 past papers](https://www.hlayiso.com/grade-11/past-papers) --- Hlayiso: free CAPS and IEB past papers, memos, notes and study guides for South African learners. 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