Accounting Grade 12 P2 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 P2 PREDICTION EXAMINATION 2026 MARKS: 150 TIME: 2 hours This question paper consists of 12 pages, a formula sheet and a special answer book. Copyright reserved Please turn over

Accounting/P2 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 Reconciliations and VAT 40 32 2 Inventory Valuation 35 28 3 Cost Accounting 35 28 4 Budgeting 40 32 TOTAL 150 120 Copyright reserved Please turn over

Accounting/P2 3 Hlayiso/Prediction 2026 NSC Prediction QUESTION 1: RECONCILIATIONS AND VAT (40 marks; 32 minutes) 1.1 Indicate whether the following statements are TRUE or FALSE. Write only ‘true’ or ‘false’ next to the question numbers (1.1.1 to 1.1.3) in the ANSWER BOOK. 1.1.1 Bank charges that appear only on the Bank Statement must be recorded in the Cash Receipts Journal. 1.1.2 A Debtors’ Age Analysis helps a business to identify debtors who do not keep to the credit terms. 1.1.3 Input VAT is the VAT that a vendor pays on goods and services bought for the business. (3 x 1) (3) 1.2 BANK RECONCILIATION The information relates to Lethabo Hardware for August 2026. The business is owned by Lethabo Mokoena. The Bank Statement is received on the last day of each month. REQUIRED: 1.2.1 Use the table provided in the ANSWER BOOK to calculate the correct totals of the Cash Receipts Journal and the Cash Payments Journal on 31 August 2026. (8) 1.2.2 Calculate the correct balance of the Bank account in the General Ledger on 31 August 2026. (3) 1.2.3 Prepare the Bank Reconciliation Statement on 31 August 2026. (6) 1.2.4 Lethabo is concerned about the way in which the cash of the business is managed. Identify TWO different problems (with figures) in the information below. Provide ONE solution for EACH problem. (4) INFORMATION: A. Extract from the Bank Reconciliation Statement on 31 July 2026: DEBIT CREDIT Credit balance according to the Bank 33 430 Statement Credit outstanding deposit (31 July 2026) 18 900 Debit outstanding EFTs: EFT 214 6 250 EFT 219 3 700 Debit balance according to the Bank account 42 380 52 330 52 330 NOTE: • The outstanding deposit and EFT 219 appeared correctly on the August 2026 Bank Statement. • EFT 214 (to Nyathi Plumbing Supplies) appeared on the August 2026 Bank Statement as R6 520. The Bank Statement is correct. The amount was recorded incorrectly in the July 2026 Cash Payments Journal. Copyright reserved Please turn over

Accounting/P2 4 Hlayiso/Prediction 2026 NSC Prediction B. Provisional totals in the Cash Journals on 31 August 2026, before the Bank Statement was received: Cash Receipts Journal R184 300; Cash Payments Journal R157 640. C. Entries on the August 2026 Bank Statement that do not appear in the Cash Journals: Details Amount (R) Service fees 815 Interest on the favourable bank balance 140 Debit order: Safeguard Insurance (business insurance) 2 450 Debit order: Peak Fitness Club (Lethabo’s personal gym 1 980 membership) Direct deposit (EFT) by a debtor, P Ndlovu 8 600 Credit transfer by tenant, T Moloi: rent for September 2026 4 000 Deposit: Lethabo Hair Salon (see the note below) 5 600 NOTE: Lethabo Hair Salon is another client of the bank. The bank credited this deposit to the account of Lethabo Hardware in error. The bank will correct the error in September 2026. D. EFT 233 (to Max Builders’ Supplies) was recorded in the Cash Payments Journal as R4 300. The Bank Statement shows the correct amount of R3 400. E. Entries in the August 2026 Cash Journals that do not appear on the August 2026 Bank Statement: • Deposit dated 31 August 2026, R21 750 • EFT 236 dated 31 August 2026, R9 480 F. The Bank Statement on 31 August 2026 reflected a favourable balance of R70 495. Copyright reserved Please turn over

Accounting/P2 5 Hlayiso/Prediction 2026 NSC Prediction 1.3 DEBTORS’ AGE ANALYSIS Lethabo Hardware sells goods on credit to registered building contractors. The credit terms are 30 days. Lethabo expects at least 85% of the total amount owed by debtors to be within the credit terms (current month and 30 days). REQUIRED: 1.3.1 Calculate the percentage of the total debtors’ balances that does NOT keep to the credit terms. (3) 1.3.2 Identify TWO different problems in the Debtors’ Age Analysis. In EACH case, name the debtor and quote figures. (4) INFORMATION: Debtors’ Age Analysis on 31 August 2026: DEBTOR CREDIT LIMIT TOTAL CURRENT 30 DAYS 60 DAYS 90+ DAYS A Botha 25 000 18 600 10 200 8 400 – – N Cele 20 000 26 750 6 000 4 950 7 300 8 500 F Davids 30 000 14 300 14 300 – – – T Mabuza 15 000 12 900 – – 4 100 8 800 S Pillay 35 000 32 450 21 450 11 000 – – TOTAL 105 000 51 950 24 350 11 400 17 300 1.4 VALUE-ADDED TAX (VAT) Lethabo Hardware is a registered VAT vendor. The standard VAT rate is 15%. The business also sells illuminating paraffin, which is zero-rated. REQUIRED: 1.4.1 Calculate the VAT amounts for transactions A to C in the table provided in the ANSWER BOOK. Indicate the effect of EACH amount on the VAT payable to SARS (increase or decrease). Refer to the example provided. (7) 1.4.2 Lethabo suggests that cash sales to customers who do not ask for a tax invoice should not be recorded, so that the business pays less VAT. Explain why this is unethical, and state ONE consequence that the business could face. (2) INFORMATION: Example: Cash sales of R4 000 (excluding VAT). A. Goods were sold on credit for R92 000 (excluding VAT). This amount includes zero-rated paraffin of R12 000. B. The account of a debtor, R6 900 (including VAT), was written off as irrecoverable. C. Goods bought on credit for R2 760 (including VAT) were returned to the supplier. 40 Copyright reserved Please turn over

Accounting/P2 6 Hlayiso/Prediction 2026 NSC Prediction QUESTION 2: INVENTORY VALUATION (35 marks; 28 minutes) KASI SOLAR SUPPLIES Kasi Solar Supplies sells solar lanterns, solar panels and portable power stations. The business is owned by Thabiso Dube. The financial year ended on 30 June 2026. The periodic inventory system is used. 2.1 SOLAR LANTERNS (weighted-average method) REQUIRED: 2.1.1 Calculate the value of the closing stock of solar lanterns on 30 June 2026, using the weighted-average method. (5) 2.1.2 Calculate the number of solar lanterns missing. (3) 2.1.3 An investigation revealed that one storeroom assistant receives all deliveries, issues the lanterns to the shop floor and also counts the stock at the end of the year. Explain TWO internal control measures that Thabiso should introduce. (4) INFORMATION: SOLAR LANTERNS UNITS UNIT PRICE (R) TOTAL (R) Stock on 1 July 2025 400 180 72 000 Purchases: 4 200 846 000 15 September 2025 1 200 190 228 000 10 December 2025 1 500 200 300 000 20 March 2026 900 210 189 000 25 May 2026 600 215 129 000 Returns to supplier (25 May 50 215 10 750 purchase) Carriage on purchases 25 500 Stock on 30 June 2026 (physical 560 ? count) • 3 900 solar lanterns were sold during the year at R320 each. 2.2 SOLAR PANELS (first-in-first-out method) REQUIRED: 2.2.1 Calculate the value of the closing stock of solar panels on 30 June 2026, using the FIFO method. (4) 2.2.2 Calculate the stockholding period (in days) of solar panels for 2026. Use the average stock. (4) 2.2.3 The stockholding period for 2025 was 48 days. Comment on the stockholding period for 2026 (ONE point, with figures) and give ONE suggestion to Thabiso. (3) Copyright reserved Please turn over

Accounting/P2 7 Hlayiso/Prediction 2026 NSC Prediction INFORMATION: SOLAR PANELS UNITS UNIT PRICE (R) TOTAL (R) Stock on 1 July 2025 120 1 450 174 000 Purchases: 10 August 2025 300 1 500 450 000 18 November 2025 400 1 560 624 000 12 February 2026 250 1 600 400 000 22 May 2026 200 1 680 336 000 • 1 030 solar panels were sold during the year at R2 400 each. • There were no stock losses or returns of solar panels. 2.3 PORTABLE POWER STATIONS (specific identification method) Each power station has a unique serial number. Kasi Solar Supplies sells three models. REQUIRED: 2.3.1 Calculate the value of the closing stock of portable power stations on 30 June 2026, using the specific identification method. (5) 2.3.2 VoltMate 1200: Thabiso changed to a cheaper supplier of this model in July 2025. Explain why this was NOT a good decision. Provide TWO points, with figures. (4) 2.3.3 PowerHub 2400: Thabiso increased the mark-up on this model from 30% to 40% in July 2025. Explain the effect of this decision on the business (ONE point, with figures) and give ONE piece of advice. (3) INFORMATION: A. Stock movements for the year ended 30 June 2026 (units): MODEL OPENING PURCHASES RETURNS TO UNITS COST PRICE STOCK SUPPLIER SOLD PER UNIT (R) VoltMate 600 12 60 – 58 4 800 VoltMate 1200 8 45 6 39 8 600 PowerHub 2400 5 20 – 9 18 500 NOTE: All the units on hand on 30 June 2026 were bought during the 2026 financial year at the cost prices shown above. B. Comparison of two models over the last two years: VOLTMATE 1200 POWERHUB 2400 2026 2025 2026 2025 Cost price per unit R8 600 R9 400 R18 500 R18 500 Selling price per unit R12 040 R13 160 R25 900 R24 050 Units sold 39 44 9 21 Units returned to supplier (faulty) 6 0 0 0 Customer complaints received 17 2 1 1 Gross profit R134 160 R165 440 R66 600 R116 550 35 Copyright reserved Please turn over

Accounting/P2 8 Hlayiso/Prediction 2026 NSC Prediction QUESTION 3: COST ACCOUNTING (35 marks; 28 minutes) 3.1 NALA CABINETS Nala Cabinets manufactures kitchen cabinets. The business is owned by Nala Zungu. The financial year ended on 30 June 2026. REQUIRED: 3.1.1 Calculate the direct material cost for the year. (4) 3.1.2 Calculate the direct labour cost for the year. (5) 3.1.3 Prepare the Factory Overhead Cost Note for the year ended 30 June 2026. (9) 3.1.4 Calculate the cost of production of finished goods for the year ended 30 June 2026. (4) INFORMATION: A. Stock balances: 30 June 2026 1 July 2025 Raw materials stock R166 000 R184 000 Work-in-process stock R116 500 R96 500 Raw materials: Purchases R2 280 000; carriage on raw materials purchased R56 400; raw materials returned to suppliers R38 200. B. Factory workers: • Eight production workers each work a normal week of 40 hours for 50 weeks of the year at a normal rate of R75 per hour. • The workers worked 1 600 overtime hours in total during the year. Overtime is paid at one-and-a-half times the normal rate. • The employer contributes 7,5% of the basic wages to the pension fund, and 1% of the total wages (basic wages and overtime) to the UIF. C. Factory overhead information: • Indirect materials used in the factory: R46 800 • Salary of the factory foreman: R312 000 • Rent paid for the year: R429 000. This amount includes the rent for July 2026. Rent is allocated according to floor area: factory 1 500 m2 ; office 300 m2 ; showroom 200 m2 . • Water and electricity: R264 000. 80% of this amount must be allocated to the factory. • Factory equipment: The cost on 1 July 2025 was R1 850 000. A new machine costing R240 000 was bought and installed on 1 March 2026. Depreciation is provided at 10% p.a. on cost. Copyright reserved Please turn over

Accounting/P2 9 Hlayiso/Prediction 2026 NSC Prediction 3.2 WARDROBES Nala Cabinets also manufactures wardrobes in a separate production line. NOTE: Where comments or explanations are required, you should quote figures and/or trends, and give a reason or an explanation in EACH case. REQUIRED: 3.2.1 Calculate the break-even point for wardrobes for the year ended 30 June 2026. (4) 3.2.2 Comment on the break-even point and the level of production over the two years. Quote figures. (2) 3.2.3 Identify the variable cost per unit that was poorly controlled. Quote figures. Provide TWO different ways in which Nala can control this cost. (4) 3.2.4 Nala wants to increase the net profit on wardrobes by R138 000 in the next financial year. Calculate the number of additional wardrobes that must be produced and sold. Assume that the selling price and the cost structure stay the same. (3) INFORMATION: WARDROBES 2026 2025 Units produced and sold 1 500 1 380 Break-even point (units) ? 1 150 Selling price per unit R4 200 R3 950 Total fixed costs R1 656 000 R1 495 000 Variable costs per unit: Direct material cost R1 680 R1 540 Direct labour cost R820 R780 Selling and distribution cost R320 R330 Total variable cost per unit R2 820 R2 650 • The inflation rate for the year was 5%. The factory workers received a wage increase of 5% on 1 July 2025. 35 Copyright reserved Please turn over

Accounting/P2 10 Hlayiso/Prediction 2026 NSC Prediction QUESTION 4: BUDGETING (40 marks; 32 minutes) 4.1 Indicate whether EACH of the following items will appear in the Cash Budget only (CB), in the Projected Statement of Comprehensive Income only (PSCI), or in BOTH. Write only the answer next to the question numbers (4.1.1 to 4.1.3) in the ANSWER BOOK. 4.1.1 Discount received from creditors 4.1.2 Repayment of part of the loan 4.1.3 Interest on the loan (3 x 1) (3) 4.2 KOPANO FURNITURE Kopano Furniture is owned by Palesa Kopano. The information relates to the budget for the two months ending 31 December 2026. REQUIRED: 4.2.1 Calculate the credit purchases for October 2026. (3) 4.2.2 Complete the Creditors’ Payment Schedule for November and December 2026. (7) 4.3 Calculate the amounts indicated by (i) to (iv) in the Cash Budget (Information G): (i) Salaries for December 2026 (4) (ii) Rent for December 2026 (3) (iii) Interest on the loan for December 2026 (3) (iv) Amount received from the fixed deposit in November 2026 (3) 4.4 Refer to Information H (October 2026). 4.4.1 Explain TWO different ways in which the new competitor affected Kopano Furniture in October 2026. Quote figures. (4) 4.4.2 Palesa reduced the amount spent on advertising in October 2026. Explain why this was not a wise decision. Quote figures. (3) 4.4.3 Comment on the control over delivery expenses in October 2026. Quote figures or calculations. (3) 4.5 Refer to Information I. Explain whether Palesa should go ahead with her plan to buy the delivery vehicle for cash. Quote figures. Suggest ONE alternative. (4) INFORMATION: A. Sales: SEPTEMBER OCTOBER NOVEMBER DECEMBER (actual) (actual) (budgeted) (budgeted) Total sales (R) 480 000 520 000 560 000 720 000 40% of all sales are for cash. Copyright reserved Please turn over

Accounting/P2 11 Hlayiso/Prediction 2026 NSC Prediction B. Purchases of stock and payments to creditors: • Goods are sold at a mark-up of 60% on cost. Stock sold is replaced in the same month (a fixed base stock is maintained). • 25% of the purchases are for cash and the rest are on credit. • Creditors are paid as follows: 70% in the month after the month of purchase, to receive a 4% discount; the remaining 30% in the second month after the month of purchase. C. Salaries: • Five sales employees each earn the same monthly salary. Total salaries for November 2026 are R130 000. • The employees will receive a salary increase of 6% from 1 December 2026. In December 2026, each employee will also receive a bonus equal to 50% of the new monthly salary. • A temporary packer will be employed for December 2026 only, at a salary of R9 500. D. Rent: The business rents 600 m2 at R65 per m2 per month. From 1 December 2026, an additional 150 m2 will be rented for storage. The rate per m2 on ALL the floor space will increase by 8% from the same date. E. Loan: The balance of the loan from Bay Bank on 1 November 2026 is R480 000. Interest is charged at 13,5% p.a. and is paid at the end of each month. Interest is not capitalised. A capital repayment of R96 000 will be made on 30 November 2026. F. Fixed deposit: R240 000 was invested at Bay Bank on 1 August 2026 for four months at 8,5% p.a. Interest is received at the end of each month and is not capitalised. On 30 November 2026, the fixed deposit and the interest for November 2026 will be transferred into the current bank account. Copyright reserved Please turn over

Accounting/P2 12 Hlayiso/Prediction 2026 NSC Prediction G. Extract from the Cash Budget: NOVEMBER 2026 DECEMBER 2026 R R RECEIPTS Cash sales 224 000 288 000 Receipts from debtors 312 600 330 000 Fixed deposit and interest (iv) – PAYMENTS Cash purchases of stock 87 500 112 500 Payments to creditors ? ? Salaries 130 000 (i) Rent 39 000 (ii) Interest on loan 5 400 (iii) Loan repayment 96 000 – Advertising 16 800 21 600 Delivery expenses 25 000 32 000 Drawings 30 000 45 000 Sundry expenses 41 000 44 000 H. Budgeted and actual figures for October 2026: BUDGETED ACTUAL Number of customers 400 325 Total sales R600 000 R520 000 Advertising R18 000 R9 000 Number of deliveries 240 250 Delivery expenses R24 000 R31 250 • A new competitor, Mega Furniture Warehouse, opened in the same shopping centre on 1 October 2026. It offers free delivery on all purchases. • Palesa decided to cut the advertising budget by half in October 2026 to save cash. I. Purchase of a delivery vehicle: • Palesa plans to buy a delivery vehicle for R380 000 cash on 1 December 2026. This purchase is NOT included in the Cash Budget. • The projected bank balance on 31 December 2026 (before the purchase of the vehicle) is an overdraft of R101 995. • The bank has approved an overdraft limit of R150 000. 40 TOTAL: 150 Copyright reserved Please turn over

Accounting/P2 13 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 and other receivables + Cash and 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