Accounting Grade 12 P1 NSC November Prediction 2026 Memo

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

Accounting/P1 2 Hlayiso/Prediction 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. In calculations, do not award marks for workings if the numerator and denominator are swapped (this also applies to ratios). 9. Where method marks are awarded for operations, the marker must inspect the reasonableness of the answer and at least one part must be correct. 10. ✓ = 1 mark. ⊡ = one part correct (a method mark: the answer must contain at least one correct part and must not be a stand-alone figure). 11. Codes: f = foreign item; p = placement/presentation. 12. Interpretation questions: accept any valid answer that is supported by correct figures, trends and an explanation, even if it is not listed. Copyright reserved Please turn over

Accounting/P1 3 Hlayiso/Prediction 2026 NSC – Marking Guidelines QUESTION 1 1.1.1 Profit/Loss on the sale of equipment on 31 October 2025 WORKINGS ANSWER Depreciation to 28 Feb. 2025: 96 000 × 20% = 19 200 5 560 (loss) ⊡ ✓ (CV 76 800) Depreciation to 31 Oct. 2025: 76 800 × 20% × 8/12 = 10 240 ✓✓ Carrying value on date of sale: 76 800 – 10 240 = 66 560 ⊡ 5 66 560 – 61 000 = 5 560 OR (Asset Disposal): cost 150 000 – accumulated depreciation (54 000 + 19 200 + 10 240 = 83 440) – proceeds 61 000 = 5 560 loss. The word “loss” or brackets must be shown for the final mark. 1.1.2 Total depreciation for the year ended 28 February 2026 WORKINGS ANSWER Equipment sold (see 1.1.1) 10 240 ✓ 444 200 ⊡ Remaining equipment: [(860 000 – 150 000) – (318 400 – 73 200)] × 20% = (710 000 – 245 200) × 20% = 464 800 × 20% 92 960 ✓✓ New equipment: 60 000 × 20% × 3/12 3 000 ✓ 7 Vehicles: 1 480 000 × 20% 296 000 ✓ New vehicle: 420 000 × 20% × 6/12 42 000 ✓ Equipment total: 106 200; Vehicles total: 338 000. 92 960: award one mark if the candidate uses 860 000 – 318 400 without removing the asset sold (108 320). Copyright reserved Please turn over

Accounting/P1 4 Hlayiso/Prediction 2026 NSC – Marking Guidelines 1.2 NANDI OUTDOOR LTD: STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 28 FEBRUARY 2026 Sales (6 744 000 × 175% = 11 802 000 ✓) + (96 000 × 120% = 115 11 917 200 ⊡ 200 ✓) OR: 6 840 000 × 175% = 11 970 000 – (96 000 × 55% = 52 800) Cost of sales (6 840 000) Gross profit (sales – cost of sales) 5 077 200 ⊡ Other operating income (operation) 309 445 ⊡ Commission income 87 650 Rent income (239 760 – 19 440) or (9 × 18 000) + (3 × 19 440) 220 320 ✓✓ Monthly rent: 239 760 ÷ 13,32 = 18 000; after increase 18 000 × 1,08 = 19 440 Provision for bad debts adjustment [26 880 – (508 100 × 5% = 25 1 475 ✓ 405)] Gross operating income 5 386 645 ⊡ Operating expenses (operation) (4 218 645) ⊡ Salaries and wages 1 384 600 + 28 000 ✓ + 3 430 ✓ 1 416 030 Gross salary: 20 720 ÷ 74% = 28 000; employer: (2 100 × 1,5 = 3 150) + 280 = 3 430 Directors’ fees 1 751 200 + 123 200 ✓ – 44 000 ✓ 1 830 400 OR: (44 000 × 3 × 12) + (35 200 × 7) = 1 584 000 + 246 400 Insurance (86 400 – 14 400) [57 600 × 3/12] 72 000 ✓ Audit fees (105 000 ÷ 75%) 140 000 ✓ Trading stock deficit (1 186 400 – 1 171 900) 14 500 ✓ Packing material (61 300 – 7 450) 53 850 ✓ Advertising 62 400 Bad debts (18 300 + 4 500) 22 800 ✓ Depreciation see 1.1.2 444 200 ✓ Loss on sale of asset see 1.1.1 5 560 ✓ Sundry expenses (balancing figure) 156 905 ⊡ Operating profit (PBIE – interest income) 1 168 000 ⊡ Interest income (44 000 + 4 000) or (600 000 × 8%) 48 000 ✓ Profit before interest expense (NPBT + interest expense) 1 216 000 ⊡ Interest expense (1 782 000 – 1 950 000 + 384 000) (216 000) ✓ Net profit before tax (730 000 ÷ 73%) 1 000 000 ⊡ Income tax (1 000 000 × 27%) (270 000) ⊡ Net profit after tax 730 000 28 ⊡ one part correct. Candidates work upwards from the given NPAT: award method marks for NPBT, PBIE, operating profit and sundry expenses if the operation is correct. Loss on sale may be shown under operating expenses only; if it was calculated as a profit in 1.1.1, award the mark under other operating income. The provision adjustment must be shown as income. If the stock deficit of 14 500 is added to cost of sales instead of shown under operating expenses, award the mark for 14 500 but –1 placement (p). –1 foreign items (max –2); –1 presentation (max –1). Copyright reserved Please turn over

Accounting/P1 5 Hlayiso/Prediction 2026 NSC – Marking Guidelines 1.3 STATEMENT OF FINANCIAL POSITION ON 28 FEBRUARY 2026 (EXTRACT) EQUITY AND LIABILITIES Shareholders’ equity (OSC + RI) 8 742 000 ⊡ Ordinary share capital 8 400 000 – (80 000 × R7,00 = 560 000 ✓✓) 7 840 000 Retained income 1 236 000 + 730 000 ✓ – 864 000 ✓ – 200 000 ✓ 902 000 Dividends: (1 200 000 × 30c = 360 000) + (1 120 000 × 45c = 504 000); repurchase: 80 000 × (R9,50 – R7,00) Non-current liabilities 1 596 000 Loan: Mapula Bank (1 782 000 ✓ – 186 000 ✓) 1 596 000 Current liabilities (operation) 1 615 370 ⊡ Trade and other payables 925 370 684 300 + accrued expenses (123 200 + 35 000 ✓) + 31 430 ✓ + income received in advance 19 440 ✓ + SARS: income tax (270 000 – 238 000 = 32 000) ✓ Shareholders for dividends see RI 504 000 ✓ Current portion of loan (12 × 32 000 – 198 000) 186 000 ✓ TOTAL EQUITY AND LIABILITIES 11 953 370 15 ⊡ one part correct. Accept the income received in advance, SARS and shareholders for dividends as separate lines under current liabilities. Do NOT accept R760 000 (the full payment) as the reduction of share capital. If interest of R198 000 is subtracted from the loan instead of the capital portion, award no mark for 186 000 but award the method mark for the operation. TOTAL MARKS 55 Copyright reserved Please turn over

Accounting/P1 6 Hlayiso/Prediction 2026 NSC – Marking Guidelines QUESTION 2 2.1 RETAINED INCOME NOTE Balance at the beginning of the year 1 470 000 Net profit after tax 1 785 600 ✓ Shares repurchased (150 000 × R2,10) (315 000) ✓✓ Ordinary share dividends (841 000) ⊡ Interim dividends 360 000 ✓ Final dividends (1 850 000 ✓ × 26 cents) 481 000 ✓ Balance at the end of the year 2 099 600 ⊡ 8 Shares at year-end: 1 600 000 + 400 000 – 150 000 = 1 850 000. Check: 14 087 600 – 11 988 000 = 2 099 600. 2.2 CASH FLOW STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2026 CASH FLOWS FROM OPERATING ACTIVITIES 1 315 200 ⊡ Cash generated from operations 2 896 000 Interest paid (264 000) Income tax paid (42 000 ✓ – 694 400 ✓ + 31 600 ✓) (620 800) Dividends paid (336 000 ✓ + 360 000 ✓) (696 000) CASH FLOWS FROM INVESTING ACTIVITIES (2 240 000) ⊡ Purchase of fixed assets (14 236 000 – 13 108 000 ✓ + 512 000 ✓ + (1 778 000) 138 000 ✓) Proceeds from sale of fixed assets 138 000 ✓ Change in fixed deposit (300 000 – 900 000) (600 000) ✓ CASH FLOWS FROM FINANCING ACTIVITIES 1 613 000 ⊡ Proceeds from shares issued (400 000 × R8,40) 3 360 000 ✓ Funds used for repurchase of shares 150 000 × (R6,48 ✓ + R2,10 = (1 287 000) ⊡ R8,58 ✓) Average price: (9 600 000 + 3 360 000) ÷ (1 600 000 + 400 000) = 12 960 000 ÷ 2 000 000 = R6,48 Change in loan (2 140 000 – 2 600 000) (460 000) ✓ NET CHANGE IN CASH AND CASH EQUIVALENTS 688 200 ⊡ Cash and cash equivalents at the beginning of the year (58 000) Cash and cash equivalents at the end of the year 630 200 ⊡ 20 ⊡ one part correct (section totals: inspect the operation). Outflows must be shown in brackets (–1 presentation, max –1). Income tax paid: accept (–42 000 + 694 400 – 31 600). Dividends paid: accept (360 000 + 481 000 + 336 000 – 481 000). Copyright reserved Please turn over

Accounting/P1 7 Hlayiso/Prediction 2026 NSC – Marking Guidelines 2.3 Debt-equity ratio WORKINGS ANSWER 2 140 000 ✓ : 14 087 600 ✓ 0,2 : 1 ⊡ 3 Accept 0,15 : 1. Answer must be in the form x : 1. % return on average capital employed (ROTCE) WORKINGS ANSWER Net profit before tax + interest on loans: 2 480 000 + 264 18,4% ⊡ 000 ✓ = 2 744 000 Average capital employed: 21 ✓ [(14 087 600 + 2 140 000) ✓ + (11 070 000 + 2 600 000) ✓] = 14 948 800 5 2 744 000 / 14 948 800 × 100 Denominator must include shareholders’ equity and non-current liabilities. Accept 12 (16 227 600 + 13 670 000). Dividends per share (in cents) WORKINGS ANSWER Interim: 360 000 ✓ / 2 000 000 ✓ × 100 = 18 cents 44 cents ⊡ Final: 26 cents ✓ 18 cents + 26 cents 4 Must be interim + final dividends per share. If 841 000 / 1 850 000 × 100 = 45,5 cents is shown, award 2 marks (841 000 ✓, answer ⊡). TOTAL MARKS 40 Copyright reserved Please turn over

Accounting/P1 8 Hlayiso/Prediction 2026 NSC – Marking Guidelines QUESTION 3 3.1.1 C✓ 3.1 3.1.2 B✓ 3 3.1.3 A✓ 3.2 Partly successful / successful in growing market share (accept a reasoned “not successful”) – no mark for the opinion alone. Financial indicators/data with figures and trends ✓✓ ✓✓ (any TWO): – Sales increased from R146,5 million to R184,2 million (by R37,7 million or 25,7%), so more customers bought from the company after the mark-up was lowered from 60% to 48%. – % operating expenses on sales decreased from 23,8% to 19,6%: expenses 4 were controlled while sales grew. – BUT % gross profit on sales fell from 37,5% to 32,4% and % operating profit on sales fell from 13,7% to 12,8%: the extra sales did not fully make up for the lower mark-up. (Award 2 marks per indicator: 1 for figures/trend, 1 for the explanation.) 3.3 Any TWO indicators with figures and explanation ✓✓ ✓✓: – Acid-test ratio decreased from 0,9 : 1 to 0,6 : 1: without stock the company cannot pay its current debts; the higher current ratio is caused by more stock. – Stock turnover rate slowed down from 6,8 to 4,1 times p.a.: stock is building up/slow-moving, so cash is tied up in stock. 4 – Average debtors’ collection period increased from 31 to 47 days: debtors are paying more slowly (longer than 30-day terms); cash flows in slower. – Average creditors’ payment period decreased from 52 to 34 days: creditors are paid faster than debtors pay (47 days), which puts pressure on cash. 3.4 Not a good decision (no mark for the opinion alone). – Debt-equity ratio increased from 0,3 : 1 to 0,7 : 1 ✓: the company relies more on borrowed funds, so the financial risk increased ✓. – ROTCE decreased from 18,6% to 12,1% ✓, which is now LOWER than the 4 interest rate on loans of 13,5% (increased from 12,5%): negative gearing – the loan costs more than it earns ✓. 3.5.1 The dividend pay-out rate increased from 50% to 94,2% ✓. DPS increased from 63 to 98 cents although EPS decreased from 126 to 104 cents ✓; the company now retains only 5,8% of earnings. Reason ✓ (any ONE): to keep shareholders satisfied after poorer 3 earnings/support the share price; directors who are shareholders benefit personally; pressure from major shareholders for cash. 3.5.2 ROSHE decreased from 13,1% to 9,9% ✓. It is still 1,9 percentage points higher than the return on fixed deposits of 8,0% ✓, so shareholders earn slightly more than an alternative low-risk investment, BUT 3 the margin is small and declining given the higher risk of owning shares ✓. (Accept “satisfied” or “not satisfied” with a valid explanation and comparison.) Copyright reserved Please turn over

Accounting/P1 9 Hlayiso/Prediction 2026 NSC – Marking Guidelines 3.6.1 WORKINGS ANSWER 2 400 000 × 45% = 1 080 000 ✓ R2 430 000 ⊡ 1 080 000 ÷ 4 = 270 000 shares ✓ 3 270 000 × R9,00 3.6.2 WORKINGS ANSWER Mandla’s shares: 1 080 000 + 270 000 = 1 350 000 ⊡ 48,2% ⊡ Shares in issue: 2 400 000 + 520 000 ✓ – 120 000 ✓ = 2 800 000 1 350 000 / 2 800 000 × 100 4 Shares at year-end must take the rights issue AND the repurchase into account. 1 350 000 / 2 920 000 = 46,2%: award 2 marks. 3.7 Any TWO valid reasons with figures ✓✓ ✓✓: – The price of R16,50 was R4,10 (33%) higher than the market price of R12,40; the company paid R492 000 more than necessary (120 000 × R4,10). – The price is far above the NAV of 1 090 cents (R5,60 per share more), which reduces the net asset value of the remaining shareholders. 4 – It was financed with a loan at 13,5% while ROTCE is only 12,1%: this increased the debt-equity ratio (0,7 : 1) and weakened liquidity (acid-test 0,6 : 1). – Conflict of interest: the CEO benefited personally from a board decision; the other shareholders were not offered the same price. 3.8 Figures and trends ✓✓ Comment ✓✓: – The market price decreased from 1 420 cents to 1 160 cents (–260 cents/–18,3%) while the NAV increased from 1 015 cents to 1 090 cents (+7,4%). – The share still trades 70 cents above the NAV, but the premium fell from 405 cents to 70 cents. 4 Comment: investors have less confidence in the company’s future (lower EPS of 104 cents, higher risk and negative gearing), so demand for the shares on the JSE dropped and shareholders’ wealth decreased. 3.9 Any TWO reasons ✓✓ ✓✓ (not a repeat of 3.7): – The sales growth was “bought” by lowering the mark-up; profits did not grow: EPS fell from 126 to 104 cents (–17,5%) and ROSHE from 13,1% to 9,9%. – Shareholders’ wealth decreased: the share price fell by 18,3% (1 420 cents to 1 160 cents). – The CEO is a member of the remuneration committee that proposed her own bonus – a conflict of interest; good governance (King Code) requires an 4 independent remuneration committee of non-executive directors (accept this even if a conflict of interest about the repurchase was given in 3.7: the context differs – here the CEO sits on the committee that set her own bonus). – A bonus of R2,6 million would further reduce cash in a company with weak liquidity (acid-test 0,6 : 1) and negative gearing. TOTAL MARKS 40 Copyright reserved Please turn over

Accounting/P1 10 Hlayiso/Prediction 2026 NSC – Marking Guidelines QUESTION 4 4.1.1 Qualified audit report ✓ Reason ✓: the auditors state “except for” one matter – they could not verify the 2 trucks of R9,8 million; the rest of the financial statements are fairly presented. 4.1.2 Any TWO ✓ ✓: – Physical inspection of the trucks (vehicle numbers, engine/chassis numbers). – Vehicle registration certificates/licence papers in the company’s name. – Purchase invoices, purchase/instalment-sale agreements, bank payments. 2 – Insurance policies, vehicle-tracking (GPS) reports, trip sheets or logbooks. – Written confirmation from the finance house/bank. 4.1.3 Shareholders ✓✓ (any ONE): they cannot fully rely on the financial statements – vehicles and the NAV may be overstated; they may lose confidence and sell shares (the share price may fall); they should question the directors at the AGM. Directors ✓✓ (any ONE): their credibility and the company’s reputation are 4 damaged; they must explain the matter to shareholders and correct internal control over fixed assets; they may be held liable/removed if negligence or fraud is proven; it may be harder to obtain loans. 4.2.1 Sipho’s personal interest (his wife’s company) clashed with his duty to act in the best interest of the company ✓. He chaired the selection committee and did not declare his interest to the board ✓. Effect ✓: the company pays 18% more than the lowest quote (about R2,1 million 3 more over the R14 million contract), which reduces profit and dividends and may expose the company to legal action and reputational damage. 4.2.2 The audit committee should consist of independent non-executive directors ✓. Executive directors (including Sipho) cannot objectively oversee their own 2 actions, internal controls and the auditors – there is no independence ✓. 4.2.3 Any TWO ✓ ✓: – Keep a register of directors’ interests and gifts; directors must declare interests and leave the room when related contracts are discussed. – Procurement policy: at least three quotes; contracts awarded by an independent committee. – Appoint independent non-executive directors to the audit committee. 2 – Directors must sign an annual declaration of interests; non-disclosure leads to disciplinary action/removal. – Internal audit of procurement; an anonymous whistle-blowing line; a code of ethics. TOTAL MARKS 15 TOTAL: 150 Copyright reserved