Accounting Grade 12 P1 NSC November 2025 Addendum (English)

Confidential STICKER CENTRE NUMBER EXAMINATION NUMBER NATIONAL SENIOR CERTIFICATE ACCOUNTING P1 GRADE 12 NOVEMBER 2025 SPECIAL ANSWER BOOK QUESTION MARKS INITIAL MOD. 1 2 3 4 TOTAL This answer book consists of 11 pages. Copyright reserved Please turn over

Accounting/P1 2 DBE/November 2025 NSC – Answer Book Confidential QUESTION 1 1.1 Calculate the correct value of the closing stock of men's informal shirts. WORKINGS ANSWER 6 1.2 ORDINARY SHARE CAPITAL NOTE NUMBER DETAILS AMOUNT 2 750 000 Shares in issue at end of year 8 Copyright reserved Please turn over

Accounting/P1 3 DBE/November 2025 NSC – Answer Book Confidential 1.3 STATEMENT OF FINANCIAL POSITION ON 28 FEBRUARY 2025 2025 Assets Non-current assets Fixed assets at carrying value Current assets 5 798 000 Trade and other receivables (735 000 Cash and cash equivalents Total assets Equity and liabilities Shareholders' equity Non-current liabilities Current liabilities Trade and other payables (878 500 Bank overdraft Total equity and liabilities 36 TOTAL MARKS 50 Copyright reserved Please turn over

Accounting/P1 4 DBE/November 2025 NSC – Answer Book Confidential QUESTION 2 2.1 Reconciliation of Profit before Taxation and Cash Generated from Operations Note on 28 February 2025: Change in receivables WORKINGS ANSWER INFLOW/OUTFLOW 3 Change in payables WORKINGS ANSWER INFLOW/OUTFLOW 4 2.2 CASH FLOW STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2025 CASH FLOW FROM OPERATING ACTIVITIES Cash generated from operations Interest paid (316 250) Dividends paid (252 000) CASH FLOW FROM INVESTING ACTIVITIES Change in fixed deposit CASH FLOW FROM FINANCING ACTIVITIES NET CHANGE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING CASH AND CASH EQUIVALENTS AT END 23 Copyright reserved Please turn over

Accounting/P1 5 DBE/November 2025 NSC – Answer Book Confidential 2.3 Calculate the following financial indicators for the year ended 28 February 2025: Net asset value per share WORKINGS ANSWER 3 Acid-test ratio WORKINGS ANSWER 5 Dividend pay-out rate WORKINGS ANSWER 5 2.4 The directors should be concerned about the cash resources of the company for the year ended 28 February 2025. Give ONE reason (with figures) for this concern. 2 TOTAL MARKS 45 Copyright reserved Please turn over

Accounting/P1 6 DBE/November 2025 NSC – Answer Book Confidential QUESTION 3 3.1 3.1.1 3.1.2 3.1.3 3 3.2 Shorts Ltd 3.2.1 Operating efficiency: The CEO believes that the company's pricing policy, when compared to its competitors, is well managed. Quote TWO financial indicators/ financial data with trends to support his statement. 4 3.2.2 Liquidity: Explain how the credit policy has improved the liquidity of the company. Quote TWO financial indicators with trends. 4 Copyright reserved Please turn over

Accounting/P1 7 DBE/November 2025 NSC – Answer Book Confidential 3.2.3 Shareholding of Lewis Clark in Shorts Ltd: Provide a calculation to show the effect which the repurchase of shares had on Lewis's % shareholding. WORKINGS ANSWER 4 Give TWO reasons why the internal auditor expressed concern about the CFO persuading the board of directors to repurchase shares. 4 Calculate the additional amount that the company paid for the shares repurchased, compared to the share price on the JSE. WORKINGS ANSWER 2 Copyright reserved Please turn over

Accounting/P1 8 DBE/November 2025 NSC – Answer Book Confidential 3.3 Shorts Ltd and Lynn Ltd 3.3.1 Returns and dividends pay-out policy: The CEOs of both companies will discuss their companies' performance. Comment on what they should mention regarding % returns. Quote ONE financial indicator with figures. 4 A potential investor believes that Lynn Ltd has a better dividend pay-out policy when compared to Shorts Ltd. Explain why you would agree with her. Provide TWO points with figures. 4 3.3.2 Share price: Comment on the shareholders' satisfaction with the performance of their share price. Quote TWO financial indicators to support your response. 4 Copyright reserved Please turn over

Accounting/P1 9 DBE/November 2025 NSC – Answer Book Confidential 3.4 Lynn Ltd The debt-equity ratio indicates that additional loans were acquired during the financial year. The directors are of the opinion that this was a good decision. Quote ONE financial indicator to support their opinion. 3 3.5 Audit report of Lynn Ltd Explain why the shareholders should be concerned about this audit report. Provide TWO points. 2 State TWO possible decisions that the shareholders could make based on this audit report. 2 TOTAL MARKS 40 Copyright reserved Please turn over

Accounting/P1 10 DBE/November 2025 NSC – Answer Book Confidential QUESTION 4 4.1 Some shareholders are concerned about the donations made for environmental initiatives, believing that it is not their responsibility. Advise the shareholders on why corporate donations are important for the company. Provide TWO points. 2 4.2 Explain TWO points why it is important for employees to report unethical behaviour in a business. 2 Suggest TWO actions that the company could take to prevent similar incidents in the future. 2 Copyright reserved Please turn over

Accounting/P1 11 DBE/November 2025 NSC – Answer Book Confidential 4.3 Explain the meaning of the term insolvent. 2 4.4 Comment on how the 'rights issue' improved the solvency of the company to a favourable position. Refer to the effect of the rights issue on the assets, equities and liabilities of the company, assuming that the company's bank balance was favourable. 3 4.5 Give TWO reasons why the existing shareholders responded positively to participating in the rights issue. 4 TOTAL MARKS 15 TOTAL: 150 Copyright reserved