# Accounting Grade 12 P1 Gauteng Mock 2022 QP (Eng) > Grade 12 Accounting Paper 1 question paper from the Gauteng Mock Exam 2022 (English), 13 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/gr12-accounting-p1-english-sep-2022-question-paper/42ec753d-d967-446b-a86b-beb1618bcc37 - Updated: 2026-09-27 - Subject: Accounting - Grade: Grade 12 - Language: English - Document type: Question paper - Year: 2022 - Exam period: Gauteng Mock 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 Mock 2022 QP (Eng)](https://www.hlayiso.com/library/gr12-accounting-p1-english-sep-2022-question-paper/42ec753d-d967-446b-a86b-beb1618bcc37) ## About this document Accounting · Grade 12 · Gauteng Mock Exam · 2022 · English. Question paper, 13 pages. Read online or download the PDF. Read it free online on the page above; download the PDF from there. ## Document text Text extracted from the PDF. Layout, diagrams and tables may not survive extraction. ### Page 1 Downloaded from hlayiso.com PREPARATORY EXAMINATION 2022 10711 ACCOUNTING PAPER 1 TIME: 2 hours MARKS: 150 12 pages + 1 formula sheet P.T.O. ### Page 2 Downloaded from hlayiso.com ACCOUNTING 2 (Paper 1) 10711/22 INSTRUCTIONS AND INFORMATION 1. Answer ALL the questions in the special ANSWER BOOK which is provided. 2. Show ALL workings in order to earn part-marks. 3. You may use a non-programmable calculator. 4. You may use a dark pencil or blue/black ink to answer questions. 5. Where applicable, show ALL calculations to ONE decimal point. 6. If you choose to do so, you may use the Financial Indicator Formula Sheet attached at the end of this question paper. The use of this formula sheet is NOT compulsory. 7. Write neatly and legibly. 8. 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 1 Financial Statements 60 48 Financial Indicators and Cash Flow 2 45 36 Statement 3 Interpretation of Financial Statements 20 16 Corporate Governance, Audit Report 4 25 20 and Problem-solving TOTAL 150 120 P.T.O. ### Page 3 Downloaded from hlayiso.com ACCOUNTING 3 (Paper 1) 10711/22 QUESTION 1: FINANCIAL STATEMENTS (60 marks; 48 minutes) 1.1 CONCEPTS Choose the correct term to complete each of the following statements. Write only the term next to the question numbers (1.1.1 to 1.1.5) in the ANSWER BOOK. income statement; current asset; non-current asset; balance sheet; expense; net working capital 1.1.1 The statement reflecting the financial position of the company is called a/an ... 1.1.2 Consumable stores on hand is a/an ... 1.1.3 A fixed deposit that will mature in two years is a/an ... 1.1.4 The difference between current assets and current liabilities is … 1.1.5 The statement reflecting the financial results of the company is called a/an … (5) 1.2 STATEMENT OF COMPREHENSIVE INCOME AND STATEMENT OF FINANCIAL POSITION FEINT PPE LTD Refer to the information from the records of FEINT PPE Limited for the financial year ended 28 February 2022. REQUIRED: Complete the following for the year ended 28 February 2022. 1.2.1 Statement of Comprehensive Income (Income Statement). Note that some information is included in the ANSWER BOOK. (32) 1.2.2 Equity and Liabilities section of the Statement of Financial Position (Balance Sheet). Show ALL workings in brackets. (23) P.T.O. ### Page 4 Downloaded from hlayiso.com ACCOUNTING 4 (Paper 1) 10711/22 INFORMATION: The following balances/totals appeared in the books on 28 February 2022: R Ordinary shares capital ? Retained income (28 February 2022) 468 000 Mortgage Loan: Best Bank ? Trading Stock 370 870 Creditors’ control 203 100 Provision for bad debts (1 March 2022) 2 140 SARS Income Tax (provisional payments) 323 888 Deposit from tenant 12 000 Sales ? Cost of sales ? Rent income 130 200 Audit fees 25 000 Insurance 103 500 Sundry expenses ? Dividends on ordinary shares 340 000 Adjustments and additional information: A Feint PPE Ltd operates on a 60% mark-up policy on all sales. Last year’s sales amounted to R6 500 000. Feint PPE Ltd is pleased to announce a 20% increase in sales for the year ending February 2022. There were no sales returns for the year. B According to a physical stocktaking, trading stock on hand amounted to R358 240. C A debtor’s account with a credit balance of R3 400 must be transferred to his account in the creditors’ ledger. D Decrease the provision for bad debts by R230. E A vacant storeroom was rented to a tenant on 1 March 2021. On 1 December 2021 the rent was decreased by 7.5%. Provide for the outstanding rent for February 2022. F Feint PPE Ltd paid a 40% deposit on their audit fees for the year. The balance will be settled on 5 March 2022. P.T.O. ### Page 5 Downloaded from hlayiso.com ACCOUNTING 5 (Paper 1) 10711/22 G An insurance policy was taken out on 1 August 2021 at R11 500 per month. H The loan statement from Best Bank reflects the following: BEST BANK LOAN STATEMENT ON 28 FEBRUARY 2022 Balance at the beginning of the financial year R1 250 000 Fixed monthly repayments including interest 45 200 Interest expense (capitalised) 220 500  Interest for the next financial year is expected to be R 150 000.  Part of the loan will be repaid in the next financial year. I Sundry expenses is the missing figure in the income statement. J The income tax which amounted to R340 088 was calculated at a rate of 28% of the net profit. K Shares and Dividends  The authorised ordinary share capital consists of 800 000 shares, of which 60% was in issue.  Total dividends for the year amounted to R445 600. L The following financial indicators were calculated on 28 February 2022.  Operating profit on sales is 15%.  Net asset value per share is 720 cents. 60 P.T.O. ### Page 6 Downloaded from hlayiso.com ACCOUNTING 6 (Paper 1) 10711/22 QUESTION 2: FINANCIAL INDICATORS AND CASH FLOW STATEMENT (45 marks; 36 minutes) SEVERANCE LIMITED The information below was extracted from the records of Severance Limited. The financial year ends on 28 February 2022. REQUIRED: 2.1 Draw up the following notes to the Balance Sheet: 2.1.1 Ordinary Shareholders’ Equity (7) 2.1.2 Retained Income (9) 2.2 Fill in the missing amounts on the Cash Flow Statement provided. Show workings and indicate outflows in brackets. (18) 2.3 Calculate the following financial indicators on 28 February 2022: 2.3.1 % operating expenses on sales (3) 2.3.2 Current ratio (4) 2.3.3 Return on shareholders’ equity (4) INFORMATION: A Extract from the Statement of Comprehensive Income (Income Statement) on 28 February 2022: Sales R10 650 000 Operating expenses 1 250 000 Depreciation 320 000 Operating profit 3 460 000 Interest expenses 219 700 Income tax (28%) 2 072 000 B Trade and other receivables and payables 28 February 2022 28 February 2021 (R) (R) Trade Debtors 1 279 400 342 000 Trade Creditors 770 000 338 000 Accrued Income 48 000 81 000 Accrued Expense (Advertising) 9 000 8 700 Income received in advance 5 400 6 200 SARS (Income Tax) (DR) 30 000 (CR) 160 000 Shareholders for dividends ? 212 000 Bank overdraft 0 147 500 P.T.O. ### Page 7 Downloaded from hlayiso.com ACCOUNTING 7 (Paper 1) 10711/22 C Extract from the Statement of Financial Position (Balance Sheet) 28 February 2022 28 February 2021 (R) (R) Fixed assets (carrying value) 20 158 970 13 590 000 Financial assets 0 1 000 000 Current assets 2 021 280 721 850 Inventories 561 880 110 250 Cash and cash equivalents 102 000 72 000 Shareholders' equity ? Ordinary share capital 26 250 000 Retained income ? 7 000 000 Loan: EYE Bank 1 960 000 2 080 000 Current liabilities ? D FIXED ASSETS  Fixed assets were purchased during the financial year.  Old equipment was sold at carrying value, R67 590 on the 1 July 2021. E SHARE CAPITAL AND DIVIDENDS  On 1 May 2021, the directors issued a further 2 000 000 ordinary shares at R2,75 each.  An interim dividend of 22 cents was paid on 15 October 2021.  On 30 November 2021, 500 000 ordinary shares were repurchased from a disgruntled shareholder at 25 cents above the average price.  A final dividend of 12 cents per share was declared by the directors at the end of the financial year. Only registered shareholders are entitled to the final dividend. 45 P.T.O. ### Page 8 Downloaded from hlayiso.com ACCOUNTING 8 (Paper 1) 10711/22 QUESTION 3: ANALYSIS AND INTERPRETATION (20 marks; 16 minutes) ZUSA LIMITED Zusa Limited, a pharmaceutical company listed on the JSE, produces ginger immune booster products. They have their own farm in QwaQwa where they grow their own crops. Boozer, one of their supervisors, has informed the directors how the farming industry had to contend with the impact of the drought on ginger. Zusa Ltd is busy developing the vaccine for COVID-19 as well. Due to slow growth of ginger and having less work, Zusa Ltd decided to reduce the number of workers. The information below is an extract from their financial records. REQUIRED: 3.1 Calculate the Debt Equity ratio for the year ended February 2022. (3) 3.2 The directors of Zusa Limited need to raise an additional R1 000 000 towards research and development of the COVID-19 vaccine. They have decided that they will raise a loan to finance the research and development. Do you think this is a wise decision? Comment and quote TWO financial indicators with figures to support your answer. (6) 3.3 Comment on the dividend policy of Zusa Limited. Quote figures. (3) 3.4 Name TWO issues that will impact the profitability of Zusa Limited and explain the effect they will have on the profit. (4) 3.5 The managing director currently holds 51% of the ordinary shares. 3.5.1 If the company was to issue another 200 000 shares, what percentage of shares would he own after the new shares were issued? (3) 3.5.2 Why would the managing director be concerned with the issue of new shares? (1) P.T.O. ### Page 9 Downloaded from hlayiso.com ACCOUNTING 9 (Paper 1) 10711/22 INFORMATION: A EXTRACT FROM FINANCIAL STATEMENTS: 2022 2021 Current Assets 251 750 110 250 Current Liabilities 156 000 342 000 Non-current Liabilities 480 000 810 000 Ordinary Share Capital 2 200 000 3 500 000 Retained Income 750 000 800 000 B FINANCIAL INDICATORS: 2022 2021 Debt Equity ratio ? 0,5 : 1 Return on total capital employed 17% 19% Return on shareholders' equity 8% 16% Earnings per share 93 cents 105 cents Dividends per share 24 cents 65 cents Net asset value per share 725 cents 702 cents Current ratio 1,9 : 1 0,3 : 1 Acid test ratio 1,2 : 1 0,2 : 1 Stock turnover rate 6 times 9 times Period of stock on hand 60 days 40 days Interest rates on investments 3% 5% Interest rates on loans 9% 12% C The authorised share capital of Zusa Limited is 1 000 000 ordinary shares. At the beginning of the financial year 75% of the shares were issued. 20 P.T.O. ### Page 10 Downloaded from hlayiso.com ACCOUNTING 10 (Paper 1) 10711/22 QUESTION 4: CORPORATE GOVERNANCE, AUDIT REPORT AND PROBLEM- SOLVING (25 marks; 20 minutes) 4.1 Choose an explanation from COLUMN B that matches the term in COLUMN A. Write only the letter (A – E) next to the question numbers (4.1.1 to 4.1.4) in the ANSWER BOOK. COLUMN A COLUMN B 4.1.1 Internal Auditor A Impact of business activities on the profit, as well as the effect on the environment and social issues 4.1.2 Triple-Bottom Line B Explains the performance of the company and the major decisions that were taken 4.1.3 Directors’ Report C Expresses an opinion on the financial statements of a company 4.1.4 King Code D Monitors control measures to prevent mismanagement and fraud E This sets out the ethical and effective leadership expected of companies. (4) 4.2 AUDIT REPORT An extract of the independent audit report of Lexi Ltd for the financial year ended 28 February 2022 is provided. INFORMATION: EXTRACT FROM THE AUDIT REPORT OF LEXI LTD We have audited the annual financial statements of Lexi Ltd set out on pages 12 – 30, for the year ended 28 February 2022. These financial statements are the responsibility of … Basis for Opinion During our audit we established that bonuses paid to directors, amounting to R11,2 million, had not been authorised by the Remunerations Committee. Audit Opinion Because of the significance of the matters described above, we have not been able to obtain sufficient audit evidence to provide a basis for an audit opinion. Accordingly, we do not express an opinion on the financial statements of Lexi Ltd for the year ended 28 February 2022. BB (Buthelezi and Bester) Chartered Accountants (SA) P.T.O. ### Page 11 Downloaded from hlayiso.com ACCOUNTING 11 (Paper 1) 10711/22 Refer to the extract of the audit report to Lexi Ltd and answer the following questions. 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) 4.2.4 As a shareholder, what concerns would you have regarding this audit report? Explain THREE points. (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) 4.3 PROBLEM-SOLVING: FIXED ASSETS The following information was extracted from the records of JB Suppliers Ltd. The company has three identical delivery vehicles. These vehicles are being used for delivering merchandise to customers. Company policy states that deliveries will be free of charge to customers within a radius of 10 km of the premises. REQUIRED: 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. (9) P.T.O. ### Page 12 Downloaded from hlayiso.com ACCOUNTING 12 (Paper 1) 10711/22 INFORMATION FOR THE YEAR ENDING 28 February 2022: DETAILS VEHICLE A VEHICLE B VEHICLE C Cost Price: R375 000 R280 000 R150 000 Date purchased: 01/03/2021 01/03/2020 01/03/2002 Carry value 28/02/2022: R337 500 R224 000 R1 Distance travelled in 23 400 km 18 360 km 17 880 km the past year: Number of 520 per year 1 050 per year 1 100 per year deliveries made: Fuel consumption: R40 300 per year R31 620 per year R39 595 per year R0 Service and (maintenance R3 500 per year R9 500 per year maintenance cost: plan from dealership) Number of days 283 days 239 days 291 days driver worked: Salary of driver per R252 000 R252 000 R252 000 year: 25 TOTAL: 150 END ### Page 13 Downloaded from hlayiso.com ACCOUNTING 13 (Paper 1) 10711/22 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 Number of issued shares 1 Average shareholders' equity 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 GR12 ANSWERBOOK JUNE 2022 English](https://www.hlayiso.com/library/accounting-p1-gr12-answerbook-june-2022-english/3f567dee-27d7-45f0-b356-dc5d1a094a3a) — Accounting · Addendum · 2022 · 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 - [2022 MP Prelim P1 QP](https://www.hlayiso.com/library/2022-mp-prelim-p1-qp/1ec48209-db47-42c9-83c6-d680b1651391) — Accounting · QP · 2022 - [Accounting P1 May June 2022 QP Eng](https://www.hlayiso.com/library/accounting-p1-may-june-2022-qp-eng/d4065e0c-bb99-4024-84e5-1635126794f0) — Accounting · QP · 2022 · 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 P1 (English) June 2025 Answer Book](https://www.hlayiso.com/library/accounting-p1-english-june-2025-answer-book/7e96e433-56f8-43a1-9a38-c68c465746dd) — Addendum · 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 P1 (English) June 2025 Possible Answers](https://www.hlayiso.com/library/accounting-p1-english-june-2025-possible-answers/86671777-58f6-4c82-932c-4924bae022c0) — Memo · 2025 · Eng ## 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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