Accounting Grade 12 P1 Gauteng Mock 2020 Addendum (English)

Downloaded from hlayiso.com GAUTENG DEPARTMENT OF EDUCATION PREPARATORY EXAMINATION 2020 10711 ACCOUNTING PAPER 1 ANSWER BOOK 10 pages Name: MARKER / QUESTION MARKS MODERATOR 1 2 3 TOTAL P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 2 (Paper 1) 10711/20 QUESTION 1: CONCEPTS AND FINANCIAL STATEMENTS (50 marks; 40 minutes) 1.1 CONCEPTS 1.1.1 1.1.2 1.1.3 1.1.4 4 1.2.1 Calculate the correct net profit. Net profit as per profit and loss 1 810 404 12 1.2.2 TRADE AND OTHER RECEIVABLES Debtors’ Control 64 800 9 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 3 (Paper 1) 10711/20 1.2.3 TWO-WAY LTD BALANCE SHEET (STATEMENT OF FINANCIAL POSITION) ON 29 FEBRUARY 2020 ASSETS NON-CURRENT ASSETS Financial Assets CURRENT ASSETS TOTAL ASSETS EQUITY AND LIABILITIES SHAREHOLDERS’ EQUITY NON-CURRENT LIABILITIES CURRENT LIABILITIES Trade and other payables 112 352 TOTAL EQUITY AND LIABILITIES 25 Marks 50 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 4 (Paper 1) 10711/20 QUESTION 2: CASH FLOW STATEMENT (50 marks; 40 minutes) 2.1 2.1.1 2.1.2 2.1.3 3 2.2.1 Ordinary Share Capital Note Authorised 1 200 000 ordinary shares Issued Shares in issue on 1 May 2019 Shares in issue on 30 April 2020 11 Retained Income Note Balance at beginning of financial year Dividends • • Balance at end of financial year 13 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 5 (Paper 1) 10711/20 2.2.2 Calculate the income tax paid. 4 Calculate the dividends paid. 3 Calculate the loan repayment amount. 2 Calculate the net change in cash and cash equivalents. Net change in cash and cash equivalents Opening bank balance Closing bank balance 5 2.2.3 Cash effects on investing activities Proceeds from asset sold 22 000 9 Marks 50 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 6 (Paper 1) 10711/20 QUESTION 3: INTERPRETATION OF FINANCIAL STATEMENTS AND AUDIT REPORT (50 marks; 40 minutes) 3.1 AVIEE LTD 3.1.1 Calculate the acid-test ratio. 4 Calculate the debt-equity ratio. 3 Calculate the return on average shareholders’ equity. 5 3.1.2 Comment on the dividend policy for 2020. Provide a calculation to support your answer. 5 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 7 (Paper 1) 10711/20 3.1.3 The directors decided to change the dividend policy in 2020. Give TWO reasons for this change. 4 3.1.4 Comment on the gearing and degree of risk for 2020. Quote TWO relevant indicators in your comment. 6 3.1.5 The shareholders are dissatisfied with the repurchase price of shares. Using the relevant indicators and figures, explain why they are dissatisfied. 3 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 8 (Paper 1) 10711/20 3.2 AUDIT REPORT 3.2.1 Briefly explain the role of the independent auditor. 2 3.2.2 What type of report did Ivory Limited receive? Explain your answer. 3 3.2.3 To whom is this audit report addressed? 1 3.2.4 State TWO possible consequences for the independent auditor if he had NOT mentioned the donation in his report. 2 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 9 (Paper 1) 10711/20 3.2.5 State ONE consequence that this report could have on the company. 2 3.2.6 How will this report affect the price of shares? 2 3.2.7 Explain why the independent auditors mentioned IFRS in the audit report. 2 P.T.O.

Downloaded from hlayiso.com ACCOUNTING ANSWER BOOK 10 (Paper 1) 10711/20 3.2.8 (a) Explain the need for corporate social investment. 2 (b) What do you understand by the triple bottom line? 2 (c) Which component of the annually published financial statements should contain details of the donation to the Covid-19 Food Parcel Relief? 2 Marks 50 TOTAL: 150 END