Accounting Grade 12 P1 Gauteng Mock 2022 Addendum (English)

Downloaded from hlayiso.com PREPARATORY EXAMINATION 2022 10711 ACCOUNTING PAPER 1 ANSWER BOOK 12 pages NAME OF SCHOOL: NAME OF LEARNER: MARKS QUESTION TOPIC MARKS OBTAINED Concepts, Income Statement and Balance 1 60 Sheet 2 Financial Indicators and Cash Flow Statement 45 3 Interpretation of Financial Statements 20 Corporate Governance, Audit Report and 4 25 Problem-solving TOTAL 150 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 2 (Paper 1) 10711/22 QUESTION 1: FINANCIAL STATEMENTS 1.1 CONCEPTS 1.1.1 1.1.2 1.1.3 1.1.4 1.1.5 5 1.2 STATEMENT OF COMPREHENSIVE INCOME (INCOME STATEMENT) 1.2.1 FEINT PPE LIMITED INCOME STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2022 Sales Cost of sales Gross Profit Other Operating Income Gross Operating Income Operating Expenses Salaries 601 450 Directors’ fees 470 850 Depreciation 281 000 Sundry expenses Operating Profit Net profit before interest expense Net profit before tax Income tax (340 088) Net profit after tax 32 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 3 (Paper 1) 10711/22 1.2.2 STATEMENT OF FINANCIAL POSITION EQUITY AND LIABILITIES SECTION OF THE BALANCE SHEET SHAREHOLDERS' EQUITY Ordinary share capital Retained income 468 000 NON-CURRENT LIABILITIES CURRENT LIABILITIES Trade and other payables TOTAL EQUITY AND LIABILITIES 23 60 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 4 (Paper 1) 10711/22 QUESTION 2: FINANCIAL INDICATORS AND CASH FLOW STATEMENT 2.1.1 ORDINARY SHAREHOLDERS’ EQUITY NOTE Ordinary shares in issue at the end of the 7 500 000 26 250 000 year 7 2.1.2 RETAINED INCOME NOTE Balance at the beginning of the year 7 000 000 9 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 5 (Paper 1) 10711/22 2.2 CASH FLOW STATEMENT SEVERANCE LTD CASH FLOW STATEMENT FOR YEAR ENDED 28 FEBRUARY 2022 CASH EFFECTS OF OPERATING ACTIVITIES Cash generated from operations 7 015 170 Interest paid (219 700) CASH EFFECTS OF INVESTING ACTIVITIES Fixed assets purchased (6 956 560) CASH EFFECTS OF FINANCING ACTIVITIES Proceeds of shares issued Repurchase of shares NET CHANGE IN CASH AND CASH EQUIVALENTS Cash and cash equivalents (opening balance) Cash and cash equivalents (closing balance) 18 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 6 (Paper 1) 10711/22 2.3 CALCULATE THE FOLLOWING FINANCIAL INDICATORS 2.3.1 % operating expenses on sales Workings Answer 3 2.3.2 Current ratio Workings Answer 4 2.3.3 Return on shareholders’ equity Workings Answer 4 45 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 7 (Paper 1) 10711/22 QUESTION 3: ANALYSIS AND INTERPRETATION 3.1 Debt Equity Ratio 3 3.2 Do you think it is a wise decision to borrow R1 000 000? Comment and quote TWO financial indicators with figures to support your answer. 6 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 8 (Paper 1) 10711/22 3.3 Comment on the dividend policy of Zusa Limited. Quote figures. 3 3.4 Name TWO issues that will impact on the profitability of Zusa Limited and explain the effect they will have on the profit. Problem Effect 4 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 9 (Paper 1) 10711/22 3.5 3.5.1 Percentage of shares that the managing director would own after new shares are issued. 3 3.5.2 Why would the managing director be concerned about the issue of new shares? 1 20 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 10 (Paper 1) 10711/22 QUESTION 4: CORPORATE GOVERNANCE, AUDIT REPORT AND PROBLEM-SOLVING 4.1 4.1.1 4.1.2 4.1.3 4.1.4 4 4.2 AUDIT REPORT 4.2.1 Why do the independent auditors refer to pages 12 – 30 of the annual report? 2 4.2.2 Complete the sentence “These financial statements are the responsibility of …” in paragraph 1. Write only the missing word to complete the sentence. 1 4.2.3 What kind of audit report did Lexi Ltd receive from BB Auditors? 1 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 11 (Paper 1) 10711/22 4.2.4 As a shareholder, what concerns would you have regarding this audit report? Explain THREE points. Point 1: Point 2: Point 3: 6 4.2.5 Refer to paragraph 2. Explain the role/responsibility of the Remunerations Committee and give a reason why this committee is necessary. 2 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 12 (Paper 1) 10711/22 4.3 PROBLEM-SOLVING: FIXED ASSETS Identify and explain THREE major problems (with figures) relating to the control of fixed assets. In EACH case, provide advice to improve control over these assets. PROBLEM IDENTIFIED WITH ADVICE TO RESOLVE PROBLEM FIGURES VEHICLE A:   More kilometres travelled but VEHICLE B:   F VEHICLE C:  9 25 TOTAL: 150 END

Downloaded from hlayiso.com

Downloaded from hlayiso.com

Downloaded from hlayiso.com

PREPARATORY EXAMINATION 2022 10711 ACCOUNTING PAPER 1 ANSWER BOOK Downloaded from hlayiso.com