Accounting Grade 12 P1 NSC November Mock 2026 Memo (English)

hlayiso mock exams Practice Series: Grade 12 NSC Preparation WWW.HLAYISO.COM NATIONAL SENIOR CERTIFICATE GRADE 12 ACCOUNTING P1 MOCK EXAMINATION 2026 MARKING GUIDELINES MARKS: 150 These marking guidelines consist of 10 pages. Copyright reserved Please turn over

Accounting/P1 2 Hlayiso/Mock 2026 NSC – Marking Guidelines MARKING PRINCIPLES: 1. Penalties for foreign items are applied only if the candidate is not losing marks elsewhere in the question for that item (no foreign item penalty for misplaced items). No double penalty for incorrect calculations. 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. If the candidate provides more than the required number of responses, mark only the required number in the order presented. 4. Full marks for correct answer. If the answer is incorrect, mark the workings provided. 5. If a pre-adjustment figure is shown as a final figure, allocate the part-mark for the workings for that figure (not the method mark for the answer). 6. Unless otherwise indicated, the positive or negative effect of any figure must be considered to award the mark. If no sign or bracket is given, assume that the figure is positive. 7. Where indicated, part-marks may be awarded to differentiate between differing qualities of answers from candidates. 8. ✓ = 1 mark. ⊡ = one part correct (one method mark for an answer that contains one part correct and that is not a stand-alone figure). 9. Codes: f = foreign item; p = placement/presentation. Copyright reserved Please turn over

Accounting/P1 3 Hlayiso/Mock 2026 NSC – Marking Guidelines QUESTION 1 1.1.1 Companies Act ✓ 1.1 1.1.2 Authorised share capital ✓ 3 1.1.3 Independent auditor ✓ 1.2 ORDINARY SHARE CAPITAL NOTE NUMBER DETAILS AMOUNT 800 000 Shares in issue at beginning of year 6 400 000 ✓ 200 000 ✓ Shares issued during the year (R10,50) 2 100 000 ✓✓ 7 (50 000) ✓ Shares repurchased (average price (425 000) ✓ R8,50 ✓) 950 000 Shares in issue at end of year 8 075 000 Average price: 6 400 000+2 100 000 8 500 000 800 000+200 000 = 1 000 000 = R8,50. Do NOT accept R600 000 for the repurchase. 1.3 RETAINED INCOME NOTE Balance at beginning of year 1 145 000 ✓ Net profit after tax (1 750 000 ✓ – 472 500 ✓) 1 277 500 ⊡ Shares repurchased (600 000 – 425 000) see 1.2 (175 000) ✓✓ Ordinary share dividends (508 500) 8 Interim (800 000 × 22 cents) 176 000 ✓ Final (950 000 × 35 cents) 332 500 ✓ Balance at end of year 1 739 000 NPAT: award 2 marks if 1 277 500 is shown without workings. Balance at end: inspect operations (+ NPAT – SBB – dividends). Copyright reserved Please turn over

Accounting/P1 4 Hlayiso/Mock 2026 NSC – Marking Guidelines 1.4 STATEMENT OF FINANCIAL POSITION ON 28 FEBRUARY 2026 ASSETS Non-current assets 10 465 000 ✓ Fixed assets at carrying value 9 865 000 Financial asset: Fixed deposit: Ubuntu Bank 600 000 ✓ Current assets (inspect: TA – NCA) 3 101 000 ✓ Inventories (1 740 000 ✓ + 18 500 ✓) 1 758 500 ✓ Trade and other receivables 1 255 000 ⊡ (1 280 000 ✓ – 64 000 ✓✓ + 24 000 ✓ + 15 000 ✓) Provision: 5% × 1 280 000 = 64 000; Prepaid insurance: 96 000 × 3/12 = 24 000 Cash and cash equivalents (balancing figure: 13 566 000 – 10 465 000 87 500 ✓✓ – 1 758 500 – 1 255 000) TOTAL ASSETS (must equal TE&L) 13 566 000 ✓ EQUITY AND LIABILITIES Shareholders’ equity (8 075 000 + 1 739 000) 9 814 000 ✓ Ordinary share capital see 1.2 8 075 000 ✓ Retained income see 1.3 1 739 000 ✓ Non-current liabilities 2 130 000 ✓ Mortgage loan: Lindiwe Bank 2 130 000 ⊡ (2 400 000 – 270 000 ✓); current portion: (40 000 × 12 = 480 000 ✓) – 210 000 Current liabilities 1 622 000 ✓ Trade and other payables (965 000 ✓ + 32 000 ✓ + 22 500 ✓✓) 1 019 500 ⊡ SARS: Income tax 472 500 – 450 000 = 22 500 Current portion of loan 270 000 ✓ Shareholders for dividends (950 000 × 35 cents) see 1.3 332 500 ✓✓ TOTAL EQUITY AND LIABILITIES 13 566 000 ✓ 32 ⊡ one part correct. –1 foreign items (max –2); –1 misplaced items (award marks for workings only). Current portion of loan and shareholders for dividends may be included in trade and other payables. TOTAL MARKS 50 Copyright reserved Please turn over

Accounting/P1 5 Hlayiso/Mock 2026 NSC – Marking Guidelines QUESTION 2 2.1 Income tax paid WORKINGS ANSWER (–18 000) ✓ – 383 400 ✓ – 21 400 ✓ (344 000) ⊡ OR: 383 400 – 18 000 – 21 400 = 344 000. Accept with or without 4 brackets. ⊡ answer must be calculated. Dividends paid WORKINGS ANSWER 150 000 ✓✓ + 120 000 ✓ (270 000) ⊡ OR: (120 000 + 220 000) – 220 000 + 150 000. Award the ⊡ mark 4 for the answer. Fixed assets purchased WORKINGS ANSWER 6 635 000 – 6 120 000 ✓ + 285 000 ✓ + 95 000 ✓ (895 000) ⊡ 4 2.2 CASH FLOW STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2026 CASH FLOWS FROM OPERATING ACTIVITIES 1 114 000 ✓ Cash generated from operations 1 896 000 Interest paid (168 000) ✓ Income tax paid see 2.1 (344 000) ✓ Dividends paid see 2.1 (270 000) ✓ CASH FLOWS FROM INVESTING ACTIVITIES (650 000) ✓ Purchase of fixed assets see 2.1 (895 000) ✓ Proceeds from sale of fixed assets 95 000 ✓ Change in fixed deposit (400 000 – 250 000) 150 000 ✓✓ CASH FLOWS FROM FINANCING ACTIVITIES (300 000) ✓ Proceeds from shares issued (100 000 × R6,00) 600 000 ✓✓ Funds used to repurchase shares (40 000 × R7,50) (300 000) ✓✓ Change in loan (1 800 000 – 1 200 000) (600 000) ✓✓ NET CHANGE IN CASH AND CASH EQUIVALENTS 164 000 ✓ CASH AND CASH EQUIVALENTS AT BEGINNING (40 000) ✓ CASH AND CASH EQUIVALENTS AT END (agrees with SFP) 124 000 ✓✓ 20 Section totals: award the mark if the operation is correct (one part correct). Brackets must be shown for outflows (–1 presentation, max –1). Copyright reserved Please turn over

Accounting/P1 6 Hlayiso/Mock 2026 NSC – Marking Guidelines 2.3 Debt-equity ratio WORKINGS ANSWER 1 200 000 ✓ : 6 396 600 ✓ 0,2 : 1 ⊡ 3 Net asset value per share WORKINGS ANSWER 6 396 600 ✓ 100 × 666,3 cents ⊡ 3 960 000 ✓ 1 960 000 = 900 000 + 100 000 – 40 000 % return on average shareholders’ equity WORKINGS ANSWER 1 036 600 ✓ 100 × 17,6% ⊡ 5 1 2 (5 400 000 ✓ + 6 396 600 ✓) ✓ 1 2.4 Cash and cash equivalents improved from an overdraft of (R40 000) to a favourable balance of R124 000. ✓✓ OR: Net increase in cash and cash equivalents of R164 000. OR: Net 2 cash from operating activities of R1 114 000. (Award 2 marks for any ONE valid figure with explanation.) TOTAL MARKS 45 Copyright reserved Please turn over

Accounting/P1 7 Hlayiso/Mock 2026 NSC – Marking Guidelines QUESTION 3 3.1.1 Liquidity ✓ 3.1 3.1.2 Gearing ✓ 3 3.1.3 Profitability ✓ 3.2.1 Liquidity of Zola Ltd Financial indicators ✓✓ (figures and trends): – Current ratio decreased from 1,8 : 1 to 1,2 : 1 – Acid-test ratio decreased from 0,9 : 1 to 0,5 : 1 4 Comment ✓✓: Liquidity has deteriorated. The acid-test ratio is well below 1 : 1, so the company cannot pay its immediate debts without selling stock. (Two indicators with figures and trends: 2 marks; comment: 2 marks.) 3.2.2 The debtors’ collection period increased from 35 days to 58 days ✓. Debtors are taking much longer than the normal 30-day credit terms to pay ✓, so less cash is available to pay current liabilities, which weakens 3 liquidity ✓. 3.2.3 Reason ✓✓ (any ONE): overstocking; slow-moving or out-of-fashion clothing; decrease in sales; poor buying decisions. Suggestion ✓✓ (any ONE): hold clearance/discount sales; improve stock 4 control (e.g. reorder levels, just-in-time buying); buy smaller quantities more often; analyse fashion trends before buying. Copyright reserved Please turn over

Accounting/P1 8 Hlayiso/Mock 2026 NSC – Marking Guidelines 3.3 Not a good decision ✓. – The % return on total capital employed decreased from 16,2% to 11,5% and is now below the interest rate on loans of 12,5% (negative gearing) ✓✓. 4 – The debt-equity ratio increased from 0,4 : 1 to 0,9 : 1, so the company is now more highly geared and riskier ✓. (Either indicator may be quoted with figures; part-marks for incomplete answers.) 3.4 Bokamoso Ltd: % return on average shareholders’ equity increased from 15,2% to 16,8% ✓; Zola Ltd: decreased from 13,5% to 9,8% ✓. Bokamoso’s return is 9,3 percentage points higher than the fixed deposit rate of 7,5%, while Zola’s return is only 2,3 percentage points higher 4 ✓✓. Bokamoso’s shareholders are earning a much better return on their investment. 3.5 The dividend pay-out rate increased from 52,6% to 94,6% ✓. Dividends per share increased from 50 cents to 70 cents, even though earnings per share decreased from 95 cents to 74 cents ✓✓. The company now pays out almost all its earnings and retains very little. 4 Reason ✓ (any ONE): to keep shareholders satisfied/prevent them from selling shares after poor performance; to support the share price; there are no expansion plans requiring retained income. 3.6 Zola Ltd: the market price of 690 cents is 70 cents below the NAV of 760 cents ✓; the share is trading at a discount – investors lack confidence in the company ✓. Bokamoso Ltd: the market price of 945 cents is 125 cents above the NAV 4 of 820 cents ✓; the share is trading at a premium – investors are confident about future performance ✓. Copyright reserved Please turn over

Accounting/P1 9 Hlayiso/Mock 2026 NSC – Marking Guidelines 3.7.1 WORKINGS ANSWER 600 000 + 100 000 ✓ 100 700 000 × = × 100 35% ⊡ 1 500 000 + 500 000 ✓ 1 2 000 000 4 Previous shareholding: 600 000 / 1 500 000 = 40% ✓ 3.7.2 His shareholding decreased from 40% to 35% ✓. His shares were diluted, so he has less influence/fewer votes on decisions and will receive 2 a smaller share of the dividends ✓. 3.8 Bokamoso Ltd (no mark for the choice only). Any TWO reasons with figures ✓✓ ✓✓: – Higher return: ROSHE 16,8% vs 9,8% (Zola); ROTCE 18,4% vs 11,5%. – Lower risk: debt-equity 0,3 : 1 vs 0,9 : 1. – Higher EPS of 128 cents (increasing) vs 74 cents (decreasing). 4 – Share price increased from 860 cents to 945 cents, while Zola’s decreased from 780 cents to 690 cents. – Better liquidity: acid-test ratio 1,3 : 1 vs 0,5 : 1. TOTAL MARKS 40 Copyright reserved Please turn over

Accounting/P1 10 Hlayiso/Mock 2026 NSC – Marking Guidelines QUESTION 4 4.1.1 Qualified audit report ✓✓ 2 4.1.2 Any TWO ✓ ✓: – The financial statements may not be reliable/fairly presented. – Closing inventory of R4,2 million may be misstated, which affects gross profit, net profit and the value of assets. 2 – It indicates weak internal control over stock at the branches. – It may affect the share price and the company’s reputation. 4.1.3 The shareholders at the annual general meeting (AGM) ✓✓ 2 4.2.1 Any TWO points with figures ✓✓ ✓✓: – The CEO received a bonus of R3,2 million and his remuneration increased by 28% to R9,6 million, while EPS decreased from 95 cents to 74 cents (–22,1%). – The share price fell by 11,5%, so shareholders’ wealth decreased while 4 the CEO was rewarded. – The bonus is not linked to performance; it reduces the profit available for dividends. 4.2.2 The remuneration committee (made up mainly of independent non-executive directors) should set a remuneration policy that links bonuses to measurable performance targets, and submit it to the 2 shareholders for approval at the AGM ✓✓. 4.3 Company ✓: skilled workers for its factory/improved reputation and brand image/good corporate citizenship (B-BBEE points). Community ✓: young people gain skills and jobs; reduced unemployment and poverty. 3 Opinion ✓: Disagree – CSI spending creates long-term benefits for the company and society (accept a reasoned “agree” with a valid reason). TOTAL MARKS 15 TOTAL: 150 Copyright reserved