Accounting Grade 12 P1 NSC November Mock 2026 QP (Eng)

Mock hlayiso mock exams Practice Series: Grade 12 NSC Preparation WWW.HLAYISO.COM NATIONAL SENIOR CERTIFICATE GRADE 12 ACCOUNTING P1 MOCK EXAMINATION 2026 MARKS: 150 TIME: 2 hours This question paper consists of 9 pages, a formula sheet and a special answer book. Copyright reserved Please turn over

Accounting/P1 2 Hlayiso/Mock 2026 NSC Mock INSTRUCTIONS AND INFORMATION Read the following instructions carefully and follow them precisely. 1. Answer ALL the questions. 2. A special ANSWER BOOK is provided in which to answer ALL the questions. 3. A Financial Indicator Formula Sheet is attached at the end of this question paper. 4. Show ALL workings to earn part-marks. 5. You may use a non-programmable calculator. 6. You may use a dark pencil or blue/black ink to answer the questions. 7. Where applicable, show ALL calculations to ONE decimal point. 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 Company Financial Statements 50 40 2 Cash Flow Statement and Financial Indicators 45 35 3 Interpretation of Financial Information 40 30 4 Corporate Governance 15 15 TOTAL 150 120 Copyright reserved Please turn over

Accounting/P1 3 Hlayiso/Mock 2026 NSC Mock QUESTION 1: COMPANY FINANCIAL STATEMENTS (50 marks; 40 minutes) The information relates to Kgotso Traders Ltd. The financial year ended on 28 February 2026. REQUIRED: 1.1 Choose the correct word(s) from the list below to complete EACH statement. Write only the word(s) next to the question numbers (1.1.1 to 1.1.3) in the ANSWER BOOK. authorised share capital; independent auditor; issued share capital; (3) Companies Act; Memorandum of Incorporation 1.1.1 The legislation that regulates the formation and management of companies in South Africa 1.1.2 The maximum number of shares that a company may issue, as stated in its founding document 1.1.3 An external person who expresses an opinion on whether the financial statements fairly present the financial position of the company 1.2 Prepare the Ordinary Share Capital Note on 28 February 2026. (7) 1.3 Prepare the Retained Income Note on 28 February 2026. (8) 1.4 Complete the Statement of Financial Position on 28 February 2026. NOTE: Show ALL workings in brackets. Certain figures are provided in the ANSWER BOOK. (32) INFORMATION: A. Balances and totals extracted from the records on 28 February 2026: R Ordinary share capital (1 March 2025) 6 400 000 Retained income (1 March 2025) 1 145 000 Fixed assets at carrying value 9 865 000 Fixed deposit: Ubuntu Bank (matures on 31 March 600 000 2028) Trading stock 1 740 000 Consumable stores on hand 18 500 Debtors’ control 1 280 000 Provision for bad debts (1 March 2025) 51 200 Mortgage loan: Lindiwe Bank 2 400 000 Creditors’ control 965 000 SARS: Income tax (provisional tax payments) 450 000 Bank ? Copyright reserved Please turn over

Accounting/P1 4 Hlayiso/Mock 2026 NSC Mock B. Share capital and dividends: • The company’s authorised share capital is 2 000 000 ordinary shares. • On 1 March 2025, there were 800 000 shares in issue. • An interim dividend of 22 cents per share was paid on 31 August 2025. • On 1 September 2025, 200 000 new shares were issued at R10,50 per share. • On 31 January 2026, the company repurchased 50 000 shares from a retiring director at R12,00 per share. The full payment of R600 000 was made and recorded. • A final dividend of 35 cents per share was declared on 28 February 2026 on all shares in issue on that date. C. Profit and income tax: The net profit before tax was correctly calculated as R1 750 000. Income tax is calculated at 27% of the net profit before tax. D. Debtors: The provision for bad debts must be adjusted to 5% of the debtors’ control balance. E. Year-end adjustments not yet recorded: • The annual insurance premium of R96 000 was paid on 1 June 2025 for the period 1 June 2025 to 31 May 2026. • Rent income of R15 000 for February 2026 is still outstanding. • Water and electricity of R32 000 for February 2026 has not yet been paid. F. Mortgage loan: Lindiwe Bank The loan is repaid by fixed monthly instalments of R40 000 (including interest). The interest for the next financial year is expected to be R210 000. The instalments will remain unchanged. Copyright reserved Please turn over

Accounting/P1 5 Hlayiso/Mock 2026 NSC Mock QUESTION 2: CASH FLOW STATEMENT AND FINANCIAL INDICATORS (45 marks; 35 minutes) The information relates to Lesedi Ltd for the financial year ended 28 February 2026. REQUIRED: 2.1 Calculate the following amounts for the Cash Flow Statement: • Income tax paid (4) • Dividends paid (4) • Fixed assets purchased (4) 2.2 Complete the Cash Flow Statement for the year ended 28 February 2026. NOTE: Certain figures are provided in the ANSWER BOOK. (20) 2.3 Calculate the following financial indicators on 28 February 2026: • Debt-equity ratio (3) • Net asset value per share (in cents) (3) • % return on average shareholders’ equity (5) 2.4 The directors are satisfied with the improvement in the cash position of the company. Quote ONE figure from the Cash Flow Statement to support their view. (2) INFORMATION: A. Extract from the Statement of Comprehensive Income for the year ended 28 February 2026: R Depreciation 285 000 Interest expense 168 000 Net profit before tax 1 420 000 Income tax 383 400 Net profit after tax 1 036 600 Copyright reserved Please turn over

Accounting/P1 6 Hlayiso/Mock 2026 NSC Mock B. Extract from the Statement of Financial Position: 28 Feb. 2026 28 Feb. 2025 R R Fixed assets at carrying value 6 635 000 6 120 000 Fixed deposit: Nala Bank 250 000 400 000 Inventories 760 000 820 000 Debtors’ control 712 000 640 000 SARS: Income tax 21 400 Cr 18 000 Dr Cash and cash equivalents 124 000 (40 000) Ordinary shareholders’ equity 6 396 600 5 400 000 Mortgage loan: Nala Bank 1 200 000 1 800 000 Creditors’ control 548 000 510 000 Accrued expenses 9 000 12 000 Shareholders for dividends 220 000 150 000 C. Fixed assets: A vehicle was sold at its carrying value of R95 000. Land and buildings and equipment were purchased during the year. D. Share capital and dividends: • There were 900 000 shares in issue on 1 March 2025. • 100 000 new shares were issued on 1 July 2025 at R6,00 per share. • 40 000 shares were repurchased on 30 November 2025 at R7,50 per share. • An interim dividend of R120 000 was paid on 31 August 2025. • A final dividend of R220 000 was declared on 28 February 2026. Copyright reserved Please turn over

Accounting/P1 7 Hlayiso/Mock 2026 NSC Mock QUESTION 3: INTERPRETATION OF FINANCIAL INFORMATION (40 marks; 30 minutes) ZOLA LTD AND BOKAMOSO LTD The information relates to two companies operating in the retail clothing industry for the financial year ended 28 February 2026. NOTE: Where comments or explanations are required, you should quote financial indicators (with figures and trends) and give a reason or explanation. REQUIRED: 3.1 Choose the correct word from the list to complete EACH statement. Write only the word next to the question numbers (3.1.1 to 3.1.3) in the ANSWER BOOK. solvency; liquidity; gearing; profitability (3) 3.1.1 The ability of a company to pay its short-term debts as they become due 3.1.2 The extent to which a company is financed by borrowed funds 3.1.3 The ability of a company to make a profit from its business activities 3.2 Liquidity (Zola Ltd) 3.2.1 Comment on the liquidity position of Zola Ltd. Quote TWO financial indicators with figures and trends. (4) 3.2.2 Explain how the change in the debtors’ collection period has affected the liquidity of Zola Ltd. Quote figures. (3) 3.2.3 The stock holding period of Zola Ltd has increased. Give ONE possible reason for this and ONE suggestion to improve it. (4) 3.3 Financial gearing (Zola Ltd) Zola Ltd increased its loans during the year. Explain whether this was a good decision. Quote TWO financial indicators with figures. (4) 3.4 Returns Compare the % return on average shareholders’ equity of the two companies. Explain why the shareholders of Bokamoso Ltd would be more satisfied. Quote figures. (4) 3.5 Dividends (Zola Ltd) The directors of Zola Ltd changed the dividend pay-out policy. Explain this change and give ONE possible reason for it. Quote TWO financial indicators. (4) 3.6 Share price Comment on the market price of the shares of EACH company in relation to its net asset value per share. Quote figures. (4) 3.7 Shareholding in Zola Ltd Refer to Information B. Copyright reserved Please turn over

Accounting/P1 8 Hlayiso/Mock 2026 NSC Mock 3.7.1 Calculate Thabo Molefe’s % shareholding on 28 February 2026. (4) 3.7.2 Explain why Thabo should be concerned about this change. (2) 3.8 Investment decision A friend has R500 000 to invest in shares. Advise her on which company she should invest in. Give TWO reasons with figures. (4) INFORMATION: A. Financial indicators and data: ZOLA LTD BOKAMOSO LTD 2026 2025 2026 2025 Current ratio 1,2 : 1 1,8 : 1 2,1 : 1 1,9 : 1 Acid-test ratio 0,5 : 1 0,9 : 1 1,3 : 1 1,1 : 1 Stock holding period 91 days 61 days 52 days 52 days Debtors’ collection period 58 days 35 days 30 days 32 days Creditors’ payment period 45 days 60 days 60 days 58 days Debt-equity ratio 0,9 : 1 0,4 : 1 0,3 : 1 0,3 : 1 % return on total capital employed 11,5% 16,2% 18,4% 17,1% % return on average shareholders’ 9,8% 13,5% 16,8% 15,2% equity Earnings per share 74 cents 95 cents 128 cents 110 cents Dividends per share 70 cents 50 cents 64 cents 55 cents Dividend pay-out rate 94,6% 52,6% 50% 50% Net asset value per share 760 cents 720 cents 820 cents 765 cents Market price per share (JSE) 690 cents 780 cents 945 cents 860 cents Interest rate on loans: 12,5% p.a. Interest rate on fixed deposits: 7,5% p.a. B. Shareholding of Thabo Molefe in Zola Ltd: • On 1 March 2025, Zola Ltd had 1 500 000 shares in issue. Thabo owned 600 000 of these shares. • During the year, the company issued 500 000 new shares to the public. Thabo bought 100 000 of the new shares. Copyright reserved Please turn over

Accounting/P1 9 Hlayiso/Mock 2026 NSC Mock QUESTION 4: CORPORATE GOVERNANCE (15 marks; 15 minutes) ZOLA LTD Use the information below and your knowledge of companies to answer the questions. REQUIRED: 4.1 Refer to Information A. 4.1.1 Name the type of audit report that Zola Ltd received. (2) 4.1.2 Explain why the shareholders should be concerned about this audit report. Give TWO points. (2) 4.1.3 Who appoints the independent auditor of a public company? (2) 4.2 Refer to Information B. 4.2.1 Explain why the shareholders are unhappy about the CEO’s remuneration. Give TWO points with figures. (4) 4.2.2 Explain the role of the remuneration committee in preventing this problem. (2) 4.3 Refer to Information C. Some shareholders believe that the money spent on the community project should rather have been paid out as dividends. Give ONE benefit of the project for the company and ONE benefit for the community, and state whether you agree with these shareholders. (3) INFORMATION: A. Extract from the independent auditor’s report: “In our opinion, except for the effects of the matter described below, the financial statements present fairly, in all material respects, the financial position of Zola Ltd … Basis for qualified opinion: We were unable to obtain sufficient evidence regarding the value of closing inventory of R4,2 million, as the stock count records at two branches were incomplete.” B. Extract from a newspaper article: The CEO of Zola Ltd received a performance bonus of R3,2 million, increasing his total remuneration by 28% to R9,6 million. Over the same period, earnings per share decreased from 95 cents to 74 cents, and the share price on the JSE fell by 11,5%. C. Extract from the Social and Ethics Committee report: During the year, the company spent R850 000 on a skills-development project that trained 120 unemployed young people from local communities as sewing machinists. Twenty of them were employed by the company’s clothing factory. TOTAL: 150 Copyright reserved Please turn over

Accounting/P1 10 Hlayiso/Mock 2026 NSC Mock FINANCIAL INDICATOR FORMULA SHEET Gross profit 100 Gross profit 100 × × Sales 1 Cost of sales 1 Net profit before tax 100 Net profit after tax 100 × × Sales 1 Sales 1 Operating expenses 100 Operating profit 100 × × Sales 1 Sales 1 Total assets Current assets :1 :1 Total liabilities Current liabilities (Current assets − Inventories) Non-current liabilities :1 :1 Current liabilities Shareholders’ equity Average trading stock 365 Cost of sales × Cost of sales 1 Average trading stock Average debtors 365 Average creditors 365 × × Credit sales 1 Cost of sales 1 Net income after tax 100 × Average shareholders’ equity 1 Net income before tax + Interest on loans 100 × Average shareholders’ equity + Average non-current liabilities 1 Net income after tax 100 Dividends for the year 100 × (See note × Number of issued shares 1 Number of issued shares 1 below) Interim dividends 100 Final dividends 100 × × Number of issued shares 1 Number of issued shares 1 Dividends per share 100 Dividends for the year 100 × × Earnings per share 1 Net income after tax 1 Shareholders’ equity 100 × Number of issued shares 1 NOTE: In this question paper, the weighted-average number of shares is NOT used. Use the number of shares in issue at the end of the financial year. Copyright reserved