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

Prediction hlayiso mock exams Practice Series: Grade 12 NSC Preparation WWW.HLAYISO.COM NATIONAL SENIOR CERTIFICATE GRADE 12 ACCOUNTING P1 PREDICTION EXAMINATION 2026 MARKS: 150 TIME: 2 hours This question paper consists of 13 pages, a formula sheet and a special answer book. Copyright reserved Please turn over

Accounting/P1 2 Hlayiso/Prediction 2026 NSC Prediction 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 Fixed Assets and Company Financial Statements 55 45 2 Retained Income, Cash Flow Statement and 40 30 Financial Indicators 3 Interpretation of Financial Information 40 35 4 Corporate Governance 15 10 TOTAL 150 120 Copyright reserved Please turn over

Accounting/P1 3 Hlayiso/Prediction 2026 NSC Prediction QUESTION 1: FIXED ASSETS AND COMPANY FINANCIAL STATEMENTS (55 marks; 45 minutes) NANDI OUTDOOR LTD The information relates to Nandi Outdoor Ltd, a company that sells camping and hiking equipment. The financial year ended on 28 February 2026. REQUIRED: 1.1 Refer to Information B. Calculate the following: 1.1.1 Profit/Loss on the sale of equipment on 31 October 2025 (5) 1.1.2 Total depreciation for the year ended 28 February 2026 (7) 1.2 Complete the Statement of Comprehensive Income for the year ended 28 February 2026. (28) 1.3 Complete the EQUITY AND LIABILITIES section of the Statement of Financial Position on 28 February 2026. (15) NOTE: • Show ALL workings in brackets. • Some amounts are provided in the ANSWER BOOK. INFORMATION: A. Balances and totals extracted from the records on 28 February 2026 (before the information in B to F was taken into account): Balance sheet accounts R Nominal accounts R Ordinary share capital* 8 400 000 Cost of sales 6 840 000 Retained income* 1 236 000 Rent income 239 760 Loan: Mapula Bank 1 566 000 Commission income 87 650 Fixed deposit: Mapula Bank 600 000 Interest on fixed deposit 44 000 Debtors’ control 512 600 Salaries and wages*** 1 384 600 Provision for bad debts* 26 880 Directors’ fees 1 751 200 Creditors’ control 684 300 Insurance 86 400 SARS: Income tax** 238 000 Audit fees 105 000 Packing material 61 300 Advertising 62 400 Bad debts 18 300 Sundry expenses ? * Balance on 1 March 2025. ** Provisional tax payments. *** Including employer’s contributions. Copyright reserved Please turn over

Accounting/P1 4 Hlayiso/Prediction 2026 NSC Prediction B. Fixed assets: Balances on 1 March 2025 Vehicles Equipment R R Cost 1 480 000 860 000 Accumulated depreciation 612 000 318 400 • Vehicles are depreciated at 20% p.a. on cost. A new delivery vehicle costing R420 000 was bought on 1 September 2025. No vehicles were sold. • Equipment is depreciated at 20% p.a. on the diminishing-balance method. New equipment costing R60 000 was bought on 1 December 2025. • An old tent-display unit (equipment) was sold for R61 000 cash on 31 October 2025. Only the cash received was recorded (Bank and Asset Disposal). The following is an extract from the Fixed Asset Register for this unit: ITEM: Tent-display unit TD-07 Date purchased: 1 March 2022 Cost price: R150 000 Depreciation: 20% p.a. on the diminishing-balance method Financial year ended / Depreciation Accum. depreciation Carrying value date 28 February 2023 30 000 30 000 120 000 29 February 2024 24 000 54 000 96 000 28 February 2025 ? ? ? 31 October 2025 ? ? ? Copyright reserved Please turn over

Accounting/P1 5 Hlayiso/Prediction 2026 NSC Prediction C. Adjustments and additional information: (i) The company sells its goods at a mark-up of 75% on cost. However, slow-moving tents costing R96 000 (included in cost of sales) were sold to a school for cash at only 20% above cost. (ii) The stock records reflected trading stock of R1 186 400. The physical stock count on 28 February 2026 showed trading stock of R1 171 900 and packing material on hand of R7 450. (iii) A debtor, T Ngwenya, was declared insolvent. R3 000 was received from his insolvent estate as a final settlement of 40 cents in the rand. The amount received has been recorded. The balance of his account must be written off. (iv) The provision for bad debts must be adjusted to 5% of the outstanding debtors. (v) The insurance includes an annual premium of R57 600 that was paid on 1 June 2025 for the year ending 31 May 2026. (vi) Only 75% of the total audit fees for the year has been paid. (vii) The fixed deposit was invested in 2023 at 8% p.a. Interest is not capitalised. Interest for February 2026 has not yet been received. (viii) A tenant has rented a storeroom since 1 March 2023. The monthly rent increased by 8% on 1 December 2025. The tenant has paid the rent up to 31 March 2026. (ix) An employee was omitted from the Salaries Journal for February 2026. No entries have been made for this employee, and all amounts are still payable. Details: • Net salary: R20 720 • Deductions: PAYE 17,5%, pension fund 7,5% and UIF 1% of the gross salary • The company contributes R1,50 for every R1,00 that the employee contributes to the pension fund, and an amount equal to the employee’s UIF deduction. (x) Directors’ fees: • On 1 March 2025 the company had three directors, each earning R44 000 per month. • A fourth director was appointed on 1 August 2025 at a monthly fee 20% lower than that of the other directors. • All directors were paid up to 31 January 2026. In February 2026 only one of the original directors, L Sithole, was paid. She received her fees for February and March 2026. Copyright reserved Please turn over

Accounting/P1 6 Hlayiso/Prediction 2026 NSC Prediction D. Loan: Mapula Bank Extract from the loan statement: Balance on 1 March 2025 R1 950 000 Repayments for the year (R32 000 per month, R384 000 including interest) Balance on 28 February 2026 R1 782 000 • The repayments were recorded. The interest on the loan is capitalised but has not yet been recorded. • The monthly repayments will stay the same. Interest of R198 000 is expected for the next financial year. E. Profit and income tax: The net profit after tax, after taking ALL the information above into account, was correctly calculated as R730 000. Income tax is 27% of the net profit before tax. Sundry expenses is the balancing figure. F. Shares and dividends: • 1 200 000 shares were in issue on 1 March 2025. • An interim dividend of 30 cents per share was paid on 31 August 2025. • On 31 October 2025, the company repurchased 80 000 shares from a retiring director at R9,50 per share. • A final dividend of 45 cents per share was declared on 28 February 2026 on all shares in issue on that date. 55 Copyright reserved Please turn over

Accounting/P1 7 Hlayiso/Prediction 2026 NSC Prediction QUESTION 2: RETAINED INCOME, CASH FLOW STATEMENT AND FINANCIAL INDICATORS (40 marks; 30 minutes) SIYAKHULA FOODS LTD The information relates to Siyakhula Foods Ltd for the financial year ended 28 February 2026. REQUIRED: 2.1 Prepare the Retained Income Note on 28 February 2026. (8) 2.2 Complete the Cash Flow Statement for the year ended 28 February 2026. NOTE: Some amounts are provided in the ANSWER BOOK. (20) 2.3 Calculate the following financial indicators on 28 February 2026: • Debt-equity ratio (3) • % return on average capital employed (ROTCE) (5) • Dividends per share (in cents) (4) INFORMATION: A. Extract from the Statement of Comprehensive Income for the year ended 28 February 2026: R Sales 18 600 000 Depreciation 512 000 Interest expense 264 000 Net profit before tax 2 480 000 Income tax (28% of net profit before tax) 694 400 Net profit after tax 1 785 600 B. Extract from the Statement of Financial Position on 28 February: 2026 2025 R R Fixed assets (carrying value) 14 236 000 13 108 000 Fixed deposit: Ithemba Bank 900 000 300 000 Cash and cash equivalents ? 0 Ordinary shareholders’ equity 14 087 600 11 070 000 Ordinary share capital ? 9 600 000 Retained income ? 1 470 000 Loan: Ithemba Bank (non-current liability) 2 140 000 2 600 000 SARS: Income tax 31 600 Cr 42 000 Dr Shareholders for dividends ? 336 000 Bank overdraft 0 58 000 C. Fixed assets: An old delivery vehicle was sold at its carrying value of R138 000. New baking equipment was bought and the factory building was extended during the year. Copyright reserved Please turn over

Accounting/P1 8 Hlayiso/Prediction 2026 NSC Prediction D. Share capital: • On 1 March 2025, 1 600 000 shares were in issue. • 400 000 new shares were issued on 1 July 2025 at R8,40 per share. • On 31 January 2026, 150 000 shares were repurchased from a dissatisfied shareholder at R2,10 per share above the average share price on that date. E. Dividends: • The final dividend for the 2025 financial year was paid in March 2025. • An interim dividend of R360 000 was paid on 31 August 2025 to all shareholders on the share register on that date. • A final dividend of 26 cents per share was declared on 28 February 2026 on all shares in issue on that date. F. Cash generated from operations for the year amounted to R2 896 000. 40 Copyright reserved Please turn over

Accounting/P1 9 Hlayiso/Prediction 2026 NSC Prediction QUESTION 3: INTERPRETATION OF FINANCIAL INFORMATION (40 marks; 35 minutes) INDLOVU MOBILE LTD Indlovu Mobile Ltd is a public company listed on the JSE. It sells cellphones and accessories through 40 stores. The financial year ended on 28 February 2026. NOTE: Where comments or explanations are required, you should: • Quote financial indicators and trends with figures. • Give a reason or an explanation for the financial indicators quoted. REQUIRED: 3.1 Choose a description from COLUMN B that matches the term in COLUMN A. Write only the letter (A–E) next to the question numbers (3.1.1 to 3.1.3) in the ANSWER BOOK. COLUMN A COLUMN B 3.1.1 Memorandum of A a board member who does not take part Incorporation (MOI) in the day-to-day management of the company 3.1.2 Limited liability B shareholders cannot lose more than the amount they invested in the company 3.1.3 Non-executive C the document that sets out the rules for (3) director the rights and duties of shareholders and directors D an employee who checks that internal control procedures are followed E a director who is employed full-time to manage the company 3.2 Profitability and operating efficiency: The directors decreased the mark-up percentage in order to increase the company’s share of the market. Explain whether this strategy was successful. Quote TWO financial indicators or financial data (with figures). (4) 3.3 Liquidity: The current ratio improved, but the chief financial officer (CFO) is worried about the cash position of the company. Quote and explain TWO OTHER financial indicators that support his concern. (4) 3.4 Financial gearing and risk: The company increased its loan during the year to open new stores. Explain whether this was a good decision. Quote TWO financial indicators. (4) 3.5 Dividends and returns: 3.5.1 Comment on the change in the dividend pay-out policy. Quote figures and give ONE possible reason for the directors’ decision. (3) Copyright reserved Please turn over

Accounting/P1 10 Hlayiso/Prediction 2026 NSC Prediction 3.5.2 Explain whether the shareholders should be satisfied with the return on their investment. Quote ONE financial indicator. (3) 3.6 Rights issue and shareholding of Mandla Zwane: Refer to Information B. 3.6.1 Calculate the amount that Mandla paid for the shares he bought through the rights issue. (3) 3.6.2 Calculate Mandla’s % shareholding on 28 February 2026. (4) 3.7 Repurchase of shares: Refer to Information A and B. Explain TWO reasons why the repurchase of shares from the CEO was NOT in the best interest of the company and its other shareholders. Quote figures. (4) 3.8 Share price: Comment on the market price of the company’s shares on the JSE. Quote TWO financial indicators or figures (with trends). (4) 3.9 Remuneration of the CEO: Refer to Information C. Give TWO reasons, with figures where relevant, why the shareholders should vote AGAINST the proposed bonus for the CEO at the annual general meeting. Do NOT repeat answers given in QUESTION 3.7. (4) Copyright reserved Please turn over

Accounting/P1 11 Hlayiso/Prediction 2026 NSC Prediction INFORMATION: A. Financial indicators and financial data on 28 February: 2026 2025 Sales R184,2 million R146,5 million Mark-up % achieved 48% 60% % gross profit on sales 32,4% 37,5% % operating expenses on sales 19,6% 23,8% % operating profit on sales 12,8% 13,7% Current ratio 1,7 : 1 1,5 : 1 Acid-test ratio 0,6 : 1 0,9 : 1 Stock turnover rate 4,1 times 6,8 times Average debtors’ collection period 47 days 31 days Average creditors’ payment period 34 days 52 days Debt-equity ratio 0,7 : 1 0,3 : 1 % return on average capital employed (ROTCE) 12,1% 18,6% % return on average shareholders’ equity (ROSHE) 9,9% 13,1% Earnings per share (EPS) 104 cents 126 cents Dividends per share (DPS) 98 cents 63 cents Dividend pay-out rate 94,2% 50,0% Net asset value per share (NAV) 1 090 cents 1 015 cents Market price per share on the JSE (28 February) 1 160 cents 1 420 cents Interest rate on loans 13,5% 12,5% Interest rate on fixed deposits 8,0% 7,5% B. Share capital and shareholding: • 2 400 000 shares were in issue on 1 March 2025. Mandla Zwane owned 45% of these shares. • Rights issue: On 1 September 2025, the company offered existing shareholders ONE new share for every FOUR shares held, at R9,00 per share. Mandla took up all his rights. Only 520 000 shares were taken up in total. • Repurchase: On 31 January 2026, the board repurchased 120 000 shares from the CEO, Nomsa Radebe, at R16,50 per share. The market price on the JSE on that day was R12,40. The repurchase was financed with part of the new loan. • No other shares were issued or repurchased during the year. C. Proposal for the annual general meeting (AGM): The remuneration committee, of which the CEO is a member, has proposed that the CEO receives a performance bonus of R2,6 million for the 2026 financial year, because of the ’excellent growth in sales’. 40 Copyright reserved Please turn over

Accounting/P1 12 Hlayiso/Prediction 2026 NSC Prediction QUESTION 4: CORPORATE GOVERNANCE (15 marks; 10 minutes) BOPHELO LOGISTICS LTD Bophelo Logistics Ltd is a listed company that transports goods for retailers across Southern Africa. Use the information below and your knowledge of companies to answer the questions. REQUIRED: 4.1 Refer to Information A. 4.1.1 Identify the type of audit report that the company received. Give a reason for your answer. (2) 4.1.2 Name TWO types of audit evidence that the auditors would need to verify the existence and ownership of the trucks. (2) 4.1.3 Explain ONE implication of this audit report for EACH of the following: • The shareholders • The directors (4) 4.2 Refer to Information B. 4.2.1 Explain why the conduct of the operations director, Sipho Ndlovu, is regarded as a conflict of interest. Explain how it affected the company. Quote a figure. (3) 4.2.2 Explain why the composition of the audit committee is a corporate governance concern. (2) 4.2.3 Suggest TWO measures that the board should introduce to prevent a similar situation in future. (2) INFORMATION: A. Extract from the independent auditor’s report to the shareholders of Bophelo Logistics Ltd for the year ended 28 February 2026: Opinion In our opinion, except for the possible effects of the matter described in the Basis for Opinion section of our report, the financial statements present fairly, in all material respects, the financial position of Bophelo Logistics Ltd as at 28 February 2026 … in accordance with International Financial Reporting Standards and the requirements of the Companies Act of South Africa. Basis for Opinion The Fixed Asset Register includes 14 trucks with a carrying value of R9,8 million. We were unable to inspect these trucks or to obtain their registration documents, as management stated that the trucks were ‘on long-distance routes outside the country’. We were therefore unable to determine whether any adjustments to the carrying value of vehicles were necessary. Copyright reserved Please turn over

Accounting/P1 13 Hlayiso/Prediction 2026 NSC Prediction B. Extract from a business newspaper (examiner’s own; names are fictitious): TYRE CONTRACT RAISES QUESTIONS In June 2025, Bophelo Logistics Ltd awarded a three-year tyre-supply contract worth R14 million to Mvelo Tyre Suppliers (Pty) Ltd. The operations director, Sipho Ndlovu, chaired the committee that chose the supplier. It has now emerged that Mvelo Tyre Suppliers is owned by Sipho’s wife. Sipho did not declare this to the board. Mvelo’s price was 18% higher than the lowest quote received from another supplier. The company’s audit committee consists of two executive directors, one of whom is Sipho Ndlovu. 15 TOTAL: 150 Copyright reserved Please turn over

Accounting/P1 14 Hlayiso/Prediction 2026 NSC Prediction GRADE 12 ACCOUNTING 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 : Total liabilities Current assets : Current liabilities (Current assets – Inventories) : Current Non-current liabilities : Shareholders’ equity liabilities (Trade & other receivables + Cash & cash equivalents) : Current liabilities Average trading stock 365 Cost of sales × (See Note 1) Cost of sales 1 Average trading stock Average debtors 365 Average creditors 365 × × (See Note 2) Credit sales 1 Cost of sales 1 Net income after tax 100 Net income after tax 100 × × (See Note 3) Average shareholders’ equity 1 Number of issued shares 1 Net income before tax + Interest on loans 100 × Average shareholders’ equity + Average non-current liabilities 1 Shareholders’ equity 100 Dividends for the year 100 × × Number of issued shares 1 Number of issued shares 1 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 Total fixed costs Selling price per unit − Variable costs per unit NOTES: 1. Trading stock at the end of a financial year may be used if required in a question. 365 days is applicable only if relevant to the whole year. 2. Credit purchases may be used instead of cost of sales (figures will be the same if stock is constant). 3. If there is a change in the number of issued shares during a financial year, the weighted-average number of shares is used in practice. Copyright reserved