# Accounting Grade 12 P2 Gauteng Mock 2025 QP (Eng) > Grade 12 Accounting Paper 2 question paper from the Gauteng Mock Exam 2025 (English), 15 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/grade-12-accounting-2025-gauteng-mock-exam-question-paper-paper-2-english/9796d6e7-a5b4-4203-bdd9-0bbac13d29a4 - Updated: 2026-09-28 - Subject: Accounting - Grade: Grade 12 - Language: English - Document type: Question paper - Year: 2025 - Exam period: Gauteng Mock Exam - Paper: 2 - Curriculum: CAPS - Pages: 15 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 P2 Gauteng Mock 2025 QP (Eng)](https://www.hlayiso.com/library/grade-12-accounting-2025-gauteng-mock-exam-question-paper-paper-2-english/9796d6e7-a5b4-4203-bdd9-0bbac13d29a4) ## About this document Accounting · Grade 12 · Gauteng Mock Exam · 2025 · English. Question paper, 15 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 PREPARATORY EXAMINATION 2025 10712 ACCOUNTING (PAPER 2) TIME: 2 hours MARKS: 150 14 pages + a formula sheet and a 14-page answer book P.T.O. ### Page 2 ACCOUNTING 2 (PAPER 2) 10712/25 INSTRUCTIONS AND INFORMATION 1. Answer ALL the questions. 2. A special ANSWER BOOK is provided in which to answer ALL the questions. 3. Show ALL workings to earn part-marks. 4. You may use a non-programmable calculator. 5. You may use a dark pencil or blue/black ink to answer the questions. 6. Where applicable, show ALL calculations to ONE decimal point. 7. You may use the Financial Indicator Formula Sheet attached at the end of this question paper. 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 1 Reconciliations 40 32 2 Cost Accounting 40 32 3 Stock Valuation 35 28 4 Budgets 35 28 TOTAL 150 120 P.T.O. ### Page 3 ACCOUNTING 3 (PAPER 2) 10712/25 QUESTION 1: RECONCILIATIONS (40 marks; 32 minutes) 1.1 BANK RECONCILIATION The information below relates to Khaya Traders, a business owned by Khaya Smith. The business receives the Bank Statement on the 25th day of each month. Khaya uses this to complete the bank reconciliation. REQUIRED: 1.1.1 Use the table provided in the ANSWER BOOK to calculate the final totals of the Cash Journals on 31 May 2025. (10) 1.1.2 Calculate the correct bank account balance in the General Ledger on 31 May 2025. (4) 1.1.3 Prepare the Bank Reconciliation Statement on 31 May 2025. (7) 1.1.4 Khaya has noticed that a long-serving cashier has recently been experiencing cash shortages. Suggest TWO possible reasons for these shortages and provide a solution for each reason given. (4) 1.1.5 Provide TWO reasons why Khaya authorises all EFT payments of his business. (2) INFORMATION: A. Extract from the Bank Reconciliation Statement on 30 April 2025 Outstanding deposits: Dated 14 April 2025 R6 000 Dated 28 April 2025 15 000 Outstanding EFTs: No. 135 2 100 No. 139 6 700 Unfavourable balance as per bank account 15 550 NOTE:  The outstanding deposit of R15 000 appeared on the bank statement on 15 May 2025.  The outstanding deposit of R6 000 did not appear on the bank statement for May 2025. An investigation revealed that this amount was never deposited and must be written-off.  EFT 135 is correctly reflected as R210 on the bank statement.  The bank statement of May 2025 shows that EFT 139 was recorded correctly. P.T.O. ### Page 4 ACCOUNTING 4 (PAPER 2) 10712/25 B. Before receiving the May 2025 Bank Statement, the Cash Journals reflected the following provisional totals: CASH RECEIPTS JOURNAL CASH PAYMENTS JOURNAL R102 675 R86 150 C. Information on the May 2025 Bank Statement which did not appear in the May 2025 Cash Journals: DEBIT CREDIT DATE DETAILS (R) (R) 1 P. Sello (tenant) 3 160 9 Cash withdrawal (K. Smith) 2 800 15 Debtors’ control (K. Phumi) 6 400 25 Debit order 00125 5 100 28 Interest 365 30 Transaction fees 830 NOTE:  K. Phumi made an electronic transfer before a 5% discount was granted. Khaya instructed the bookkeeper to refund the discount electronically. He authorised the refund and the bookkeeper processed it.  An unauthorised debit order appeared on 25 May. The bank will rectify the error in June. D. Entries in the Cash Journals after 25 May 2025: Deposit on 30 May 2025 R31 250 EFT 384 to DS Packaging, dated 27 May 2025 9 650 EFT 392 to MJ Stationers, dated 29 May 2025 5 440 E. Bank Statement balance on 31 May 2025 …? P.T.O. ### Page 5 ACCOUNTING 5 (PAPER 2) 10712/25 1.2 CREDITORS' RECONCILIATION Soweto Traders buys goods on credit from, among others, PP Distributors. The business receives their account statement promptly every month. REQUIRED: 1.2.1 Use the table provided to indicate all corrections that must be made to the Creditors’ Control Account and the Creditors’ List. Indicate changes with a (+) for an increase, a (–) for a decrease or a (0) for no change. (9) 1.2.2 PP Distributors is happy with the way Soweto Traders manages its account and is willing to increase their credit limit. Explain TWO actions that should be taken by Soweto Traders to help them to maintain a good relationship with the creditor. (4) INFORMATION: A. Balances and totals on 30 June 2025 (before correcting the errors and omissions): Creditors' Control Account balance R64 800 Creditors' List total in the Creditors' Ledger R79 300 B. The Creditors' Journal was overcast by R1 000. C. S. Snow, a debtor with a credit balance of R900, was mistakenly included in the list of creditors. D. The total of the Creditors’ Allowance Journal was inaccurately added as R23 500 instead of R17 900. E. The Debtors' Control column of R4 400 in the Cash Payments Journal was erroneously posted to the Creditors' Control Account. F. Packing material costing R2 300 returned to PP Distributors was recorded correctly in the relevant journal. It was however posted to the PP Distributors account as a credit purchase. 40 P.T.O. ### Page 6 ACCOUNTING 6 (PAPER 2) 10712/25 QUESTION 2: COST ACCOUNTING (40 marks; 32 minutes) 2.1 MAGIC WOOD MANUFACTURERS Magic Wood Manufacturers manufactures wooden door frames and is owned by Phenyo Mason. Their financial year ends on 30 April each year. REQUIRED: 2.1.1 Refer to Information A. Calculate the direct/raw material cost. (6) 2.1.2 Refer to Information C. Calculate the factory overhead cost for the year by completing the table in the ANSWER BOOK. (9) 2.1.3 Prepare the Production Cost Statement for the year ended 30 April 2025. (6) 2.1.4 Calculate the selling and distribution cost. (3) 2.1.5 Magic Wood donated window frames to a community school. The window frames were produced using offcuts that would otherwise have been wasted. Calculate the amount lost in terms of sales as a result of the wastage of the wood. (4) INFORMATION: A. Raw material (wood): Raw materials are valued using the FIFO (first-in-first-out) method. All stock purchases are stored in a storeroom before being sent to the factory for production. Raw material stock records: UNIT COST TOTAL METRES (R) (R) Balance on 1 May 2024 1 520 608 000 Purchases 16 200 7 467 000 July 2024 8 400 420 November 2024 7 800 505 Returns 400 420 Raw material issued to factory 16 570 ? Balance on 30 April 2025 750 ? NOTE: 400 metres were returned to the supplier due to delivery of the incorrect size. P.T.O. ### Page 7 ACCOUNTING 7 (PAPER 2) 10712/25 B. Extract of pre-adjustment amounts on 30 April 2025: The bookkeeper calculated the factory overhead cost as R3 670 860. Other pre-adjustment amounts on 30 April 2025: Office insurance R12 480 Depreciation on factory equipment 42 000 Advertising 34 320 Factory rent ? Adjustments to factory overheads:  80% of the insurance is allocated to the factory and the rest to the office. The bookkeeper undercast the insurance amount by R2 550.  Depreciation on factory equipment was calculated using the cost-price method instead of the dimishing-balance method. Correct the error: o On 1 May 2024, accumulated depreciation on factory equipment amounted to R38 000. o Factory equipment depreciates at 15% per annum. NOTE: No factory equipment was bought or sold during the year.  Magic Wood Manufacturers’ factory rent for three months from 1 May 2024 to 31 July 2024, amounted to R168 000. PM Warehouse charges rent at a fixed rate. Magic Wood Manufacturers has been renting 160 square metres for the past two years. With effect from 1 August 2024, Magic Wood Manufacturers requested an increase in factory rental space by 40 square metres. The rent for this increase has not yet been recorded. C. There is no work-in-process stock. D. Other costs for the financial year (after all the adjustments): UNIT COST TOTAL (R) (R) Direct labour cost 710 ? Variable cost 2 240 14 380 800 E. Production and sales for the year:  6 420 wooden door frames were produced and sold.  2,5 metres of wood is used to make one door frame.  The selling price per wooden door frame is R780. P.T.O. ### Page 8 ACCOUNTING 8 (PAPER 2) 10712/25 2.2 KICK-IT-UP MANUFACTURERS You are provided with the information relating to Kick-it-up Manufacturers. The business manufactures office chairs. The owner, Nono Shiloh, is happy with the increased profit. NOTE: Where comments or explanations are required, you should:  Quote calculations, figures and/or trends  Give an explanation or a reason in each case REQUIRED: 2.2.1 Explain why it is important to calculate the expected break-even point for a business before the start of a financial year. (2) 2.2.2 Nono was not anticipating an increase in profits. Explain to her how this happened. Provide TWO points. Quote figures. (4) 2.2.3 Explain why total fixed cost increased but fixed cost per unit decreased. Quote figures. (2) 2.2.4 Identify TWO costs (with figures) that have been well-controlled. For each cost, provide a possible action that Kick-it-up Manufacturers may have taken to keep these costs under control. (4) INFORMATION: 2025 2024 UNIT COST TOTAL UNIT COST TOTAL (R) (R) (R) (R) Fixed Cost 26,00 1 092 000 26,60 1 077 300 Variable Cost 82,30 3 456 600 84,10 3 406 050 Direct material 34,00 1 428 000 36,00 1 458 000 Direct labour 29,00 1 218 000 28,10 1 138 050 Selling and 19,30 810 600 20,00 810 000 distribution Selling price per unit R117,30 R105,00 Net profit for the year R637 500 R101 250 Units produced and 42 000 units 40 500 units sold Break-even point 31 200 units 51 545 units 40 P.T.O. ### Page 9 ACCOUNTING 9 (PAPER 2) 10712/25 QUESTION 3: INVENTORY VALUATION (35 marks; 28 minutes) 3.1 FLYEASY TRADERS The business is owned by Magesh and sells one type of travel bag. The business uses the weighted-average method to value its stock and applies the perpetual inventory system. The financial year ended on 28 February 2025. NOTE: Where comments or explanations are required, you should:  Quote calculations, figures and/or trends  Give an explanation or a reason in each case REQUIRED: 3.1.1 Calculate the following for the year ended 28 February 2025:  The value of closing stock, using the weighted-average method (3)  Gross profit (5) 3.1.2 Magesh has decided to evaluate his pricing policy. Advise him on ONE point he should consider when reviewing his pricing strategy. (2) 3.1.3 Magesh is concerned about a decrease in profits. Give TWO potential factors that may lead to a reduction in profits. (2) INFORMATION: A. Stock records revealed the following: UNIT TOTAL UNITS PRICE (R) (R) Opening stock (1 March 2024) 710 Purchases 2 370 8 310 000 March 850 3 200 2 720 000 July 620 3 500 2 170 000 November 900 3 800 3 420 000 Closing stock (28 February 2025) ? 3 420 ? B. Sales:  Only 2 508 travel bags were sold during the year.  To remain competitive in the travel bag market, the selling price was fixed at R4 550 for the past three years. P.T.O. ### Page 10 ACCOUNTING 10 (PAPER 2) 10712/25 3.2 MENZIWATCH PLAZA Aya Mbambo is the owner of Menziwatch Plaza, a business that sells various types of exclusive watches. The business uses the specific identification method to value their stock and applies the periodic inventory system. The financial year ended on 28 February 2025. REQUIRED: 3.2.1 Calculate the value of the closing stock on hand, using the specific (5) identification method. 3.2.2 Provide a calculation to confirm that the closing stock of the Saika watches is expected to be sold in 8,9 days. (3) 3.2.3 Aya is confident that the Dempo model should NOT be out of stock. Provide a calculation to support his assumption. (2) 3.2.4 Aya has expressed his concern about customers trying on watches without staff supervision. Identify TWO potential problems that could arise from this practice and suggest a solution for each. (4) INFORMATION: The following information relates to the year ended 28 February 2025: A. Opening stock UNIT PRICE TOTAL MODEL UNITS (R) (R) Dempo 46 4 750 218 500 Bolex 29 8 700 252 300 B. Purchases UNIT PRICE TOTAL MONTHS MODEL UNITS (R) (R) July 2024 Dempo 85 4 750 403 750 Bolex 96 8 700 835 200 December 2024 Saika 116 5 550 643 800 February 2025 Bolex 44 8 700 382 800 Saika 61 5 550 338 550 C. Closing stock MODEL UNITS TOTAL (R) Dempo 0 0 Bolex ? ? Saika ? ? P.T.O. ### Page 11 ACCOUNTING 11 (PAPER 2) 10712/25 D. Sales: MODEL UNITS SOLD MARK-UP % Dempo 125 52 Bolex 123 75 Saika 161 60 3.3 PROBLEM-SOLVING: The information below relates to Staysmart Fashions. The business sells jackets tailored for various seasons. NOTE: Where comments or explanations are required, you should:  Quote calculations, figures and/or trends  Give an explanation or a reason in each case REQUIRED: 3.3.1 Winter jackets:  Comment on the stock holding period of winter jackets. Quote figures. (2)  What effect does this stock holding period have on Staysmart Fashions? (2) 3.3.2 Summer jackets: Nandi is concerned that the current pricing policy may lead to a future decline in customers. Calculate the percentage change and explain why Nandi should not be concerned. (3) 3.3.3 Nandi is pleased with zero stock loss. Explain TWO security measures she may have implemented to help achieve this result. (2) INFORMATION: 2025 2024 WINTER SUMMER WINTER SUMMER (units) (units) (units) (units) Stock available 900 1 200 960 1 220 Stock sold 558 1 080 672 1 037 Stock on hand 342 120 288 183 Selling price per item R3 750 R1 350 R3 300 R1 050 Cost price per item R2 500 R900 R2 200 R750 Stock holding period 224 days 41 days 156 days 64 days 35 P.T.O. ### Page 12 ACCOUNTING 12 (PAPER 2) 10712/25 QUESTION 4: BUDGETING (35 marks; 28 minutes) The information relates to Ekasi Traders for the period 1 July 2025 to 31 August 2025. The business is owned by Edward Cassim and sells its own in-house electrical appliances. REQUIRED: 4.1 Calculate the total sales for June 2025. (2) 4.2 Complete the Debtors’ Collection Schedule for the period 1 July 2025 to 31 August 2025. (7) 4.3 Calculate the missing figures (i) – (iv) in the Cash Budget for the period ending 31 August 2025. (14) 4.4 Refer to Information G.  Explain why these items may cause a challenge for the business. Provide ONE reason for each case. (4)  There is a concern about the high advertising costs associated with printing pamphlets by the business, especially given the low sales return. Suggest and explain TWO modern and more cost-effective advertising methods that Edward could consider. (4) 4.5 Refer to information H.  Comment on the cash flow situation during May 2025. Make ONE suggestion to improve Ekasi Traders' cash problems. (2)  Edward is considering opening a new branch in another province. Identify TWO challenges that may impact on the business’s cash budget. (2) INFORMATION: A. Sales, cost of sales and debtors’ collection:  Total sales were as follows: May 2025 June 2025 July 2025 August 2025 Actual 1 280 000 ? Budgeted 1 192 000 1 604 000  Cash sales comprise 75% of total sales.  The mark-up percentage is 60% on cost price. P.T.O. ### Page 13 ACCOUNTING 13 (PAPER 2) 10712/25 B. Collection from debtors is as follows:  20% pay in the month of sales and receive a 3% discount.  60% pay in the month following the month of sales.  15% pay in the second month after the sale.  The balance will be written-off as irrecoverable. C. Purchases:  35% of all purchases are on credit.  Stock is replaced in the month of sales. A base stock is maintained.  Creditors are paid two months after purchase, subject to a 4% discount. D. Extract from the Cash Budget for July and August 2025: JULY AUGUST RECEIPTS Cash sales 894 000 1 203 000 Collection from debtors 312 812 ? Rent income 9 225 8 200 Loan 0 (i) PAYMENTS Cash purchases of stock 484 250 (ii) Payments to creditors (iii) 289 800 Rent expense 9 300 11 718 Interest on loan 1 105 2 275 Salaries and wages 29 000 (iv) E. Loan: On 1 August 2025, Ekasi Traders acquired a new loan. Interest will be charged at 13% p.a. at the end of each month, starting on 31 August 2025. VBD Bank charges interest at the same rate as the previous loan. F. Salaries and wages: The business has two employees who earn the same monthly salary. In August a third employee, who will earn a monthly salary of 30% lower than the other two employees, will be appointed. P.T.O. ### Page 14 ACCOUNTING 14 (PAPER 2) 10712/25 G. Edward is concerned about the following items that did not comply with the budget for May 2025: BUDGETED ACTUAL R R Payments to creditors 198 600 54 000 Insurance 12 890 0 Advertising 9 750 24 375 H. Extract from the cash budget: MAY 2025 JUNE 2025 ACTUAL ACTUAL R R Cash surplus/(deficit) (76 540) 105 400 Cash at the beginning 202 700 126 160 Cash at the end 126 160 231 560 35 TOTAL: 150 END ### Page 15 ACCOUNTING 1 (PAPER 2) 10712/25 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 (See Note 1 below) Average debtors x 365 Average creditors x 365 Credit sales 1 Cost of sales 1 (See Note 2 below) Net income after tax x 100 Net income after tax x 100 Number of issued shares 1 Average shareholders' equity 1 (See Note 3 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: 1. Trading stock at the end of a financial year may be used if required in a question. 365 days is applicable only if relevant to the whole year. 2. Credit purchases may be used instead of cost of sales (figures will be the same if stock is constant). 3. 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