Accounting Grade 12 Paper 2 NW June 2025 Memo (English)

PROVINCIAL ASSESSMENT GRADE 12 ACCOUNTING/P2 JUNE 2025 FINAL MARKING GUIDELINES MARKS: 150 MARKING PRINCIPLES: 1. Unless otherwise stated in the marking guideline, penalties for foreign items are applied only if the candidate is not losing marks elsewhere in the question for that item (no penalty for misplaced item). No double penalty applied. 2. Penalties for placement or poor presentation (e.g. details) are applied only if the candidate is earning marks on the figures for that item. 3. Unless otherwise stated, full marks for correct answer. If answer is incorrect, mark the workings provided. 4. If a pre-adjustment figure is shown as a final figure, allocate the part-mark for the working for that figure (not the method mark for the answer). Note: If figures are stipulated in the marking guidelines for components of workings, these do not carry the method mark for final answer as well. 5. Unless otherwise indicated, the positive or negative effect of any figure must be considered to award the mark. If no + or – sign or bracket is provided, assume that the figure is positive. 6. Where indicated, part-marks may be awarded to differentiate between differing qualities of answers from candidates. 7. If candidates provide more than the required number of responses, inspect all responses to give benefit to the candidate. Penalties may be applied for foreign entries if candidates earn full marks on a question (max - 2 per Q). 8. Where penalties are applied, the marks for that section of the question cannot be a final negative. 9. Where method marks are awarded for operation, the marker must inspect the reasonableness of the answer and at least one part must be correct before awarding the mark. 10. Operation means 'check operation'. 'One part correct' means operation and one part correct. Note: check operation must be +, -, x, ÷, or per memo. 11. In calculations, do not award marks for workings if numerator & denominator are swapped- this also applies to ratios. 12. In awarding method marks, ensure that candidates do not get full marks for any item that is incorrect at least in part. Indicate with a . 13. Be aware of candidates who provide valid alternatives beyond the marking guideline. Note that one comment could contain different aspects. 14. Codes: f = foreign item; p = placement/presentation. 15. This memorandum is not for public distribution, as certain items might incorrect treatment. The adjustments made are due to nuances in certain questions. These marking guidelines consist of 11 pages. Copyright reserved Please turn over

Accounting/P2 2 NW/June 2025 Grade 12 – Marking Guidelines QUESTION 1: BANK AND CREDITOR’S RECONCILIATION, DEBTORS’ AGE ANALYSIS AND INTERNAL CONTROL. 1.1 BANK RECONCILIATION 1.1.1 False  1.1.2 False  1.1.3 False  1.1.4 False  1.1.5 True  5 1.2 BANK RECONCILIATION 1.2.1 CRJ CPJ Provisional total 325 000 Provisional total 290 000  Credit card sales 15 300Bank charges arrow 1 280 (230 + 1 050)  Direct deposit rent 5 900Interest overdraft 130  Interest on savings 430 Cash withdrawal 3 600  acc Electronic transfers 12 000Electronic payments 4 140 Debit orders 17 200 Correct error EFT 73 (51 400 – 15 400) 36 000 arrow + both Deposit cancelled 24 000 358 630 376 350 Balance per bank account at the end of June 2025. Operation 4 960 + 358 630 See 1.2.1 – 376 350 See 1.2.1 (12 760) 15 Must indicate cr bal with ( ) or unfavourable 1.2.2 Bank Reconciliation Statement on 30 June 2025 Debit Credit Cr. balance as per bank statement 480  Cr outstanding deposit 30 400  Dr outstanding EFT’s No 121 19 200  No 122 4 700  Dr correction of error 19 740 Cr balance as per bank account See 1.2.1 12 760 If balance is favourable in 1.2.1 it must be debit in BRS. If a figure appear on both sides, no mark = guessing 43 640 43 640 6 Copyright reserved Please turn over

Accounting/P2 3 NW/June 2025 Grade 12 – Marking Guidelines 1.2.3 Calculate the total credit card sales for the month. WORKINGS ANSWER 1 050 x 100/4 26 250  2  1.2.4 Refer to Information F. Suggest TWO internal control measures that the business should implement to ensure that this will not happen again in the future. Any two  Create a policy for depositing cash on a daily basis.   This matter should have been followed up in May – do monthly reconciliations.  Division of duties. one person serves as a check on another.   Request notification from bank for transactions (sms/email).  Ask debtors to pay via EFT. 2  Outsource the banking of cash to a transit company. Copyright reserved Please turn over

Accounting/P2 4 NW/June 2025 Grade 12 – Marking Guidelines 1.3 CREDITORS RECONCILIATION 1.3.1 Provide TWO reasons why it is important for the business to prepare the Creditors' Reconciliation Statement. Any two  It helps to identify differences between the balance in the statement (external document) and the balance in the business’ records (internal document)    It helps to detect fraud, errors and omissions.    It is an internal control measure.  2 1.3.2 Calculate the correct Creditors' Control Account balance after taking into account the relevant errors and omissions. Dr. Creditors’ Control Cr. Two marks Debit note (1 280 + 1 280) 2 560 Balance b/d 32 640 Balance 49 620 Sundry purchases 5 020 Hunt Wholesalers 12 800 VAT 1 720 52 180 52 180 Balance 49 620 32 640 + 5 020 + 12 800 – 1 280 – 1 280 + 1 720 = 49 620       One part correct 6 1.3.3 Calculate the correct balances of creditors Hunt Wholesalers and Tiger Wholesalers, taking into account errors and omissions. CREDITOR WORKINGS BALANCE Hunt Wholesalers 16 580 + 12 800 +1 720 + 200  31 300* (-3 150 One mark - 3 150 One mark) Tiger Wholesalers 13 420* 24 620 – 6 300 – 4 900 Blackwood 0 + 4 900 4 900  Manufacturers 49 620* 10 *Operation One part correct Copyright reserved Please turn over

Accounting/P2 5 NW/June 2025 Grade 12 – Marking Guidelines 1.4 DEBTOR’S AGE ANALYSIS 1.4.1 TWO points to describe the purpose of drawing up a debtors’ age analysis. Use full descriptive sentences.  Any two  To determine whether debtors are paying their accounts in the stipulated period according to their credit terms (usually 30 days credit terms).   Internal control tool to indicate overdue accounts and charge interest on overdue accounts of debtors.   To check that debtors do not exceed their credit limit and to review Debtors credit limits. Serves as a reminder to send sms’s to remind debtor’s.    Identify debtors who should not be allowed additional credit sales until  account is up to date. 2 TOTAL MARKS 50 Copyright reserved Please turn over

Accounting/P2 6 NW/June 2025 Grade 12 – Marking Guidelines QUESTION 2: PRODUCTION COST STATEMENT, GROSS PROFIT AND UNIT COSTS. 2.1 Cost of consignment imported raw materials Cost price: 5 000 x 18,12 90 600 Carriage: 800 x 18,12 14 496 Import duties: 90 600 x 10% 9 060 3 2.2.1 Production cost statement for the year ended 30 June 2025 Direct material See 2.2.2 492 000 Direct labour (396 000 + 39 600+ 7 200 + 78 000) 520 800 Prime cost Operation 1 012 800 Factory overhead costs See FOC note 464 000 Total manufacturing Operation 1 476 800 Work-in-process at the beginning of the year 240 000 Operation 1 716 800 Work-in-process at the end of the year (82 000)  Cost of production of finished goods Operation 1 634 80012 2.2.2 Notes to the Production cost statement: Direct materials cost Opening stock 120 000 Purchases (420 000 + 90 600) See 2.1 510 600 Carriage on purchases (39 000 + 14 496) See 2.1 53 496 Import duties See 2.1 9 060 693 156 Closing stock Balancing figure, must be in brackets (201 156)  Cost of raw material 492 00010 Factory overheads costs Consumables (15 000 - 8 000 + 70 000) (Must have - 8 000 or +70 000) 77 000 Electricity (18 000 + 6 000 ) (18 000 is one part correct) 24 000 Maintenance 48 000 4 800 (120 000 is one part correct) Rent expense (120 000 + [6(10 000 x 8%)] 124 800 Depreciation 70 200 Factory manager salary 120 000 One part correct 464 00011 Cost of finished goods sold Opening balance of finished goods 616 080 Cost of finished goods manufactured See 2.2.1 1 634 800 2 250 880 Final balance of finished goods (120 600)  Cost of finished goods sold Operation 2 130 280 4 Copyright reserved Please turn over

Accounting/P2 7 NW/June 2025 Grade 12 – Marking Guidelines 2.3 Calculate the gross profit for the year ended 30 June 2025. Sales 3 600 600 Cost of sales See cost of finished goods (2 130 280)  Gross profit Operation and one part correct 1 470 320 3 2.4 CALCULATIONS: 2.4.1 Unit cost to manufacture each inverter. (Round off to the nearest Rand). 1 634 800 See 2.2.1 780 = 2 095,90 = R2 096 One part correct 3 2.4.2 Selling price of one inverter: 3 600 600 850  = R4 236 3 2.4.3 Calculate the break-even point and comment on it: See 2.2.2 FOC 464 000 + 82 170(546 170) 4 236 – 1 125  (3 111) See 2.4.2 Selling price =175,56 or 176 units One part correct Comment:  The business produced 780 units; this is 604 above BEP 176 units.   The business sold 850 units; this is 674 above the BEP 176 units.    The business will make a profit on 674 units.   7 Copyright reserved Please turn over

Accounting/P2 8 NW/June 2025 Grade 12 – Marking Guidelines 2.5 Give TWO reasons why the business should support local suppliers. Reasons: (Any TWO relevant reasons.)   No import charges will be paid.   Prices more stable as price not influenced by fluctuations in exchange rates.   Creates more employment opportunities to people from the country.  GDP enhances and it helps small developing businesses   It improves standard of living.   No transport delays in case of emergency orders.   Recommendation King Code.   Enhance triple P – effect (people, planet and profit).   Money stays in the country and improves exchange rate.   Less crime if employment increases.   Goodwill of the community (Ubuntu) / Good image of business.  2 2.6 The owner of Current Ltd is not satisfied with the profit he is making. The owner has found an alternative supplier of raw materials. Discuss his decision and what the implications of this could be. (Any TWO relevant reasons)    It is vital that the goods must be the same quality.  The company may lose its license as the new supplier is not approved by the Electricity board.  Expect returns if the quality is not good.   Will the after sales service be efficient?   The new supplier must be reliable and deliver on time.  2 TOTAL MARKS 60 Copyright reserved Please turn over

Accounting/P2 9 NW/June 2025 Grade 12 – Marking Guidelines QUESTION 3 3.1 CONCEPT: Give ONE term for each of the following descriptions. 3.1.1 Periodic inventory system  3.1.2 Specific identification method  3.1.3 First in first out (FIFO)  3 3.2 MY VELLIES Calculate the value of closing stock using the weighted-average 3.2.1 method. ( 1 690 500) 320 770 + 1 392 380  – 22 650  (520 + 1 960)  – 30  1 690 500 3 marks 2 450 3 marks = 690 x 325 = R224 250  one part correct and multiply with 325 closing stock 7 3.2.2 The missing units of stock. Open + Purch - Returns 520 + 1 960 – 30 Sold – Close = 2 450  – 2 115 – 325 = 10  One part correct 4 3.2.3 The average stock-holding period (in days). 272;5 845 ½ (320 770 + 224 250) x 365 or ½(520 One mark+325 One mark) X 365 1 690 500 - 224 250  See 3.2.1 2 115 Two marks 1 1 466 250 Or two method marks 72,9 days Method mark 67,8 days / 68 days  5 3.2.4 The value of the closing stock by using the FIFO method. (300 – 30) (725 + 30) Include carriage of R30 270 x R755 = R203 850 325 – 270 (710 + 30) Include carriage of R30 55  x R740 = R40 700  Total: R244 550  If carriage was not included, forfeit the final method mark 5 3.2.5 Perpetual/Periodic Inventory System.  The perpetual inventory system the cost of sales is recorded with every sales transaction and the balance of trading stock is adjusted on a continuous basis during the year.  With the periodic inventory system, the cost of sales is only calculated at the end of the year according to the physical stock take.  4 Copyright reserved Please turn over

Accounting/P2 2 NW/June 2025 Grade 12 – Marking Guidelines 3.3 QUICK FRY: Solution must match the problem Be vigilant for explanation in problem column KLERKSDORP - Miyaz Moola Problem + figure two marks Explanation One mark Solution to problem One mark Inadequate sales  Units sold is much  Sales personnel need to go 6 500 x 175 = 1 137 500 less in comparison for training in selling skills. or with Potch and  Change Miyaz’s contract that Only 175 units sold Vryburg. his salary is directly linked to the number of units sold.  300 units in stock only  Almost half the  Buy less stock. 175 sold. stock is unsold  Too much money locked up in stock that can be used more effectively, and negatively affect liquidity.  Advertising cost Advertising expenses Advertising campaign must be R80 000. is too high, seems improved, change the ineffective as total advertising medium to increase sales are very low. sales.  Rent too high R520 000. Too high compared to Move to more affordable other branches premises. Surplus stock 225 units Closing stock shows Better management and and excess, which internal control. means that bookkeeping is wrong. POTCHEFSTROOM -Daleen Coetzee Problem Explanation Solution to problem 25 units missing. Trading stock 500  Internal control over stock – sales 400 should be improved with closing stock should regular stock taking and be 100 units. better security like cameras, beepers and security guards.  Daleen must be held responsible for stock losses.  VRYBURG - Themba Ndaba Problem Explanation Solution to problem Inadequate stock 350  Losing customers  Keep higher stock levels not units available 350 units due to lack of stock. to disappoint customers sold.  No units left, customers will go to competitors.  TOTAL MARKS 40 Total: 150 Copyright reserved