Accounting Grade 11 Paper 1 Limpopo June 2024 Memo

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. com NSC GRADE 11 ACCOUNTING P1 TASK 4 MAY/JUNE 2024 TOTAL: 150 MARKS DURATION: 2HOURS This question paper consists of 13 pages including a formula sheet, and Answer Book of 11 pages

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. Accounting /P1 2 com LDoE MAY/JUNE 2024 GR 11-QP INSTRUCTIONS AND INFORMATION 1. Answer ALL the questions. 2. A special ANSWER BOOK is provided in which to answer ALL the questions. 3. A FORMULA SHEET for financial indicators is provided at the back of this question paper. You may use it if necessary. 4. Show ALL workings to earn part-marks. 5. Where applicable, round off all calculations to the nearest rand. All other calculations must be rounded off to one decimal place. 6. Read the instructions of each question carefully and follow them precisely. 7. Learners will forfeit marks for: • The use of non-standardised abbreviations • Superfluous/foreign entries 8. You may use a non-programmable calculator. 9. You may use blue/black ink or dark pencil to answer the questions. 10. Use the information in the table as a guide when answering the question paper. Try not to deviate from it. TIME IN QUESTION TOPIC MARKS MINUTES 1 Analysis of transactions, Fixed Assets, 45 36 minutes and Internal Control 2 Statement of Comprehensive Income 50 40 minutes and Note General Ledger & Financial indicators’ 30 24 minutes 3 Interpretation Partnership: Concepts and Statement of 25 20 minutes 4 financial position (Current account note). TOTAL 150 120 minutes Copyright reserved Please turn over

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. Accounting /P1 3 com LDoE MAY/JUNE 2024 GR 11-QP QUESTION 1 ANALYSIS OF TRANSACTIONS AND FIXED ASSETS (45 Marks; 36 Minutes) 1.1 ANALYSIS OF TRANSACTIONS Analyse the following transactions by completing the table (11) provided in the ANSWER BOOK. Refer to the example below. The perpetual stock system is used. EXAMPLE: Bought a Laptop from Rams Digitals on credit, R17 250. General Ledger Effect on Accounting Equation Account Account Owners’ Assets Liabilities E.G. debited credited equity Equipment Rams +17 250 0 +17 250 digitals/Creditors’ control TRANSACTIONS: 1.1.1 Received R4 000 from a debtor (T. Makofane) whose debt was previously written off. 1.1.2 Issued a debit note to PNA Stores for stationery returned, R380. 1.1.3 A debtor returned goods for R3 800 (cost price, R1 425). These goods were totally damaged. 1.1.4 The credit balance of a debtor, R500 must be transferred to his account in the creditors’ ledger. 1.2 FIXED ASSETS: GENERAL LEDGER AND NOTE FOX ENTERPRISES You are provided with information relating to Fox Enterprises on 30 June 2023, the end of the financial year. REQUIRED Refer to information A – D to answer question 1.2 1.2.1 Prepare the Asset disposal account. (7) 1.2.2 Prepare the Tangible Assets Note on 30 June 2023. Show all calculations to earn part-marks. (13) Copyright reserved Please turn over

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. Accounting /P1 4 com LDoE MAY/JUNE 2024 GR 11-QP INFORMATION A. Fixed assets Land & Building Equipment Carrying value 2 000 000 165 000 (01/07/2022) Cost 2 000 000 300 000 Accumulated 0 (135 000) depreciation Movement Additions at cost ? 180 000 Depreciation 0 ? Disposal at carrying value 0 ? Carrying value 2 600 000 ? Cost ? ? Accumulated 0 ? depreciation Transactions B Equipment bought on 30 June 2020 for R50 000 was sold for cash on 31 December 2022 for R21 000. New equipment was purchased on 1 February 2023 for R180 000. C Depreciation is written off at 15% on cost price D Land and Buildings were purchased during the year. 1.3 GAAP CONCEPTS: Which GAAP principle is applicable in each case? 1.3.1 The land and buildings were revalued in January 2024 and the market value is R1 300 000. The financial records for Fox Enterprises are reflecting R850 000. (1) 1.3.2 Any expense paid to maintain a vehicle must be recorded within the year in which that maintenance occurred (1) Copyright reserved Please turn over

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. Accounting /P1 5 com LDoE MAY/JUNE 2024 GR 11-QP 1.4 PROBLEM SOLVING, INTERNAL CONTROL, ETHICS, AND INTERNAL AUDITING 1.4.1 PROBLEM SOLVING & INTERNAL CONTROL Fox Enterprises wants to invest in a transport business. The owner intends to buy two trucks towards the end of December 2024 to transport goods throughout the country. REQUIRED (a) The owner is concerned about high maintenance costs of trucks, and he needs your advice. Provide TWO points. (4) Refer to the truck information below to answer ‘b’ below Truck Details Make: Hyno Date of purchase: 1 Sept 2022 Registration: JMS 625 L Depreciation method: Cost Cost: R? Depreciation rate: 20% Date Depreciation Accumulated Carrying Depreciation value 29February 135 000 135 000 ? 2023 29February 270 000 405 000 ? 2024 (b) Calculate the cost price of the truck (Hyno) (3) 1.4.2 ETHICS & INTERNAL AUDITING (a) One of the vehicles is old and soon to be replaced. The (3) manager of Fox enterprises was promised a gift by TAJ Motors if he purchased the new vehicle from them. Will it be ethical to accept this gift? Briefly explain. (b) Why is it important to record the new asset in the fixed (2) assets register? 45 Copyright reserved Please turn over

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. Accounting /P1 6 com LDoE MAY/JUNE 2024 GR 11-QP QUESTION 2 STATEMENT OF COMPREHENSIVE INCOME AND NOTE (50 marks; 40 minutes) MOKWANA TRADERS The following information relates to the financial year ended on 29 February 2024. REQUIRED 2.1 Complete the Statement of Comprehensive Income (41) 2.2 Prepare the Trade and other receivables note. (9) INFORMATION A. Extract from Pre-adjustment Trial balance on 29 February 2024 BALANCE ACCOUNT SECTION Vehicles 680 000 Accumulated depreciation on vehicles 150 000 Fixed deposit (at 12% p.a. at Mikateko bank) 180 000 Trading stock 122 500 Debtors control 70 000 Provision for bad debts 2 010 Loan: Mtolo Bank 184 500 NOMINAL ACCOUNT SECTION Sales (including 50% mark-up) 1 350 050 Cost of sales ? Rent income 143 750 Commission income 22 480 Discount received 7 270 Interest on fixed deposit 8 500 Salaries and wages 105 600 Consumable stores 11 900 Insurance 19 300 Sundry expense ? Bad debts 4 120 Copyright reserved Please turn over

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. Accounting /P1 7 com LDoE MAY/JUNE 2024 GR 11-QP B. Additional information and Adjustments (i) Credit note of damaged goods worth R5 375 (cost price of R2 500), was not recorded. (ii) Physical stocktake revealed that stock, cost price R4 200, was missing and consumable stores on hand amounted to R3 100. (iii) The bookkeeper left out a discount of R230 from Angel Traders, a creditor. This was for early payment of the account. (iv) Debtors with arrears amounting to R3 000 must be written off. (v) Provision for bad debts must be adjusted to 4% of debtors. (vi) Insurance of R9 300 was fully recorded. The amount was paid for the period of 1 January 2024 up to 30 June 2024. (vii) Rent income was increased by 10% on 1 September 2023. The rent for February 2024 has not been received. (viii) The bookkeeper recorded R80 500 as additional fixed deposit on 1 October 2023. (ix) Depreciation for the year amounted to R68 750 (x) The Loan statement is as follows: Balance on 01 March 2023 385 000 Repayment of loan (including interest) 165 000 Balance on 29 February 2024 184 500 NB: Operating expenses amount to 28% of the adjusted sales. Copyright reserved Please turn over

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. Accounting /P1 8 com LDoE MAY/JUNE 2024 GR 11-QP QUESTION 3 PARTNERSHIP’S FINANCIAL INDICATORS – ANALYSIS & INTERPRETATION (30 marks; 24 minutes) REQUIRED 3.1 Calculate the following financial indicators on 30 September 2023 3.1.1 Current ratio (3) 3.1.2 Debt/Equity ratio (3) 3.1.3 Percentage return earned by the partner Agnes. (7) 3.2 The partners are concerned about the liquidity position of the business. If you agree/disagree, explain why they feel this way. Quote (6) TWO financial indicators to support your answer. 3.3 Partner Agnes feels that the business should increase the loan. Partner July is not keen to incur more debt. Briefly explain who you would support. Provide ONE financial indicator (with figures) to motivate your choice. (6) 3.4 Comment on the percentage return earned by partner July. Should he be satisfied with this percentage? Explain by quoting (5) relevant financial indicators with figures. A. INFORMATION: 30 SEPTEMBER 30 SEPTEMBER 2023 2022 Fixed deposit 125 000 100 000 Current assets including 165 600 176 200 inventories Inventories 54 000 62 200 Partners’ equity 1 270 300 1 700 000 Capital: July 500 000 875 000 Capital: Agnes 750 000 675 000 Current Account: July 12 400 (Dr) 45 150 (Cr) Current Account: Agnes 32 700 (Cr) 104 850 (Cr) Mortgage loan (12% p.a.) 762 180 425 000 Current liabilities 58 700 166 240 Copyright reserved Please turn over

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. Accounting /P1 9 com LDoE MAY/JUNE 2024 GR 11-QP B. Information from the Current account note on 30 September 2023 PARTNER JULY PARTNER AGNES Annual salary allowance 225 216 265 200 Interest on capital 60 750 78 750 Bonus 13 784 - Drawings for the year ? 322 400 Partners share of the ? 34 500 remaining profit C. The total primary distribution amounted to R600 440. D. The partners share the remaining profit/loss in the ratio 2:1 between July and Agnes respectively. Financial indicators on 30 September 2023 2022 Current ratio ? 1:1 Acid test ratio 0,9 : 1 0,4 : 1 Stock turnover rate 9,4 times 11,2 times Average debtors’ collection period 40 days 35 days Debt/equity ratio ? 0,3 : 1 Return on average capital employed 28,3% 25,3% Return earned by the partners 40,5% ? Return earned by partner July 21,1% 31% Return earned by partner Agnes ? 43% Interest rate on loan 10% 10% 30 Copyright reserved Please turn over

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. Accounting /P1 10 com LDoE MAY/JUNE 2024 GR 11-QP QUESTION 4 CONCEPTS & STATEMENT OF FINANCIAL POSITION: EQUITY AND LIABILITIES (CURRENT ACCOUNT NOTE) (25 marks; 20 minutes) 4.1 CONCEPTS Indicate if the following statements are ‘TRUE or FALSE’. Write only ‘True’ or ‘False’ next to the question number (4.1.1 – 4.1.5) in the Answer book. 4.1.1 A partnership is not a legal person. (1) 4.1.2 The minimum partners in a partnership are four. (1) 4.1.3 All partners earn monthly salary. (1) 4.1.4 Unlimited liability means that if the partnership does not have sufficient funds to settle the debts, the partners' personal (1) assets will be used to settle the debts of the business. 4.1.5 Ethical Principles refer to the basic accounting principles where if one account is debited, the other one must be (1) credited Copyright reserved Please turn over

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. Accounting /P1 11 com LDoE MAY/JUNE 2024 GR 11-QP 4.2 EQUITY & LIABILITIES SECTION: CURRENT ACCOUNT NOTE CALCULATIONS: You are provided with information relating to Shazia & Zanele Supplies, a business owned by Mrs B. Shazia and her daughter, Ms. T. Zanele. The financial year ends 30 September 2023. REQUIRED Refer to information provided to calculate the missing figures indicated/denoted by (a) to (g) in the Current Account Note (20) (Information A) INFORMATION: A. Current account of Shazia & Zanele supplies on 30 September 2023: SHAZIA ZANELE Partners’ salaries 312 000 (a) Interest on capital (b) 39 600 Partners’ Bonus (c) - Primary’s distribution Profit per income 232 650 (g) statement / Net profit for the year Final distribution 170 000 85 000 Drawings during the year (e) (245 000) Retained income (d) (f) Balance at beginning of year 21 500 (5 100) Balance at end of year 34 150 6 900 B. Extract from the Post- Adjustment Trial Balance of Shazia & Zanele Supplies, as 30 September 2021 30 September 2021 30 September 2020 Capital: Shazia 760 000 210 000 Capital: Zanele ? ? Drawings: Shazia 218 615 Copyright reserved Please turn over

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. Accounting /P1 12 com LDoE MAY/JUNE 2024 GR 11-QP C. ADDITIONAL INFORMATION 1. On 1 December 2020 Zanele received a 6% increase on her monthly salary of R24 000. 2. Shazia increased her capital on 1 January 2021 by transferring land and buildings worth R550 000 into the name of the business. 3. Partners are currently entitled to interest at 12% p.a. on their capital investment. Note. The percentage increased by 2% from 1 April 2021. • Zanele’s interest is R39 600. Zanele’s capital balance remained the same during the accounting period. • Shazia's interest still needs to be calculated. 4. At the end of the financial period Shazia receives a bonus equal to 80% of his monthly salary. 5. On 31 May 2021, a laptop was taken over by partner Shazia. The following details were obtained from the Fixed Asset Register: • Cost of laptop, R17 000. • The business made a loss of R1 165. Note: This has not yet been recorded. 6. Partners share the remaining profits or losses in the ratio 2:1 25 END: 150 Copyright reserved Please turn over

Downloaded from hlayiso.com Downloaded f rom St anmorephysics. com GRADE 11 ACCOUNTING FINANCIAL INDICATORS FORMULA SHEET Gross profit x 100 Gross profit x 100 Net profit x 100 Sales 1 Cost of sales 1 Sales 1 Operating expenses x 100 Operating profit x 100 Sales 1 Sales 1 Amount earned by the partner x 100 Net profit x 100 Average partner’s equity 1 Average partners’ equity 1 Current Assets : Current liabilities Current Assets – Inventory : Current liabilities (Trade and other receivables + Cash and cash equivalents): Current liabilities Average debtors x 365 Average creditors x 365 Credit sales 1 Credit purchases 1 Average stock x 365 Cost of sales Cost of sales 1 Average stock Non – current liabilities : Partners’ Equity Total Assets : Total Liabilities Copyright reserved

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. com NSC EXAMINATION ANSWER BOOK Circuit: School: Name: Date ACCOUNTING P1 GRADE 11 TASK 4 MAY JUNE 2024 No Topic/Content Max Marks Marker’s Moderated marks marks obtained Initials 1 Concepts, Fixed assets, Problem 45 solving, Internal control & Internal auditing 2 Statement of Comprehensive 50 Income & Trade and other Receivable note 3 GAAP and Analysis & 30 Interpretation of Financial statements 4 Concepts & Statement of 20 Financial Position TOTAL 150 This Answer book consists of 11 pages

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. com Accounting /P1 2 LDoE May/June 2024 GR11-Answer book QUESTION 1 1.1. ANALYSIS OF TRANSACTIONS General Ledger Owner’s Account Account Assets Liabilities equity debited credited E. G Equipment Rams digitals/Creditors +17,250 0 +17, 250 control 1.1.1 Bank +4000 1.1.2 +380 1.1.4 Debtors -3 800 control Trading +1 425 stock 1.1.4 +500 11 1.2 FIXED ASSETS: GENERAL LEDGER AND NOTE 1.2.1 Dr ASSET DISPOSAL ACCOUNT N Cr 5 Copyright reserved Please turnover

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. com Accounting /P1 3 LDoE May/June 2024 GR11-Answer book 1.2.2 TANGIBLE / FIXED ASSETS NOTE Land & Building Equipment Carrying vale 2 000 000 165 000 Cost 2 000 000 300 000 Accumulated depreciation 0 (135 000) Movements 180 000 Carrying value 2 600 000 247 000 Cost Accumulated depreciation 15 1.3 GAAP CONCEPTS: Which GAAP principle is applicable in each case? 1.3.1 The Land and Buildings were revalued in January 2024 and the market value is R1 300 000. The financial records for Fox enterprises are reflecting R850 000. 1.3.2 Any expenses paid to maintain a vehicle must be recorded within the year in which that maintenance occurred. 2 Copyright reserved Please turnover

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. com Accounting /P1 4 LDoE May/June 2024 GR11-Answer book 1.4 1.4.1 PROBLEM SOLVING & INTERNAL CONTROL (a) TWO points of advice to the owner regarding high maintenance costs. (b) Calculate the cost price of the truck 7 Copyright reserved Please turnover

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. com Accounting /P1 5 LDoE May/June 2024 GR11-Answer book 1.4.2. ETHICS & INTERNAL AUDITING (a) One of the vehicles is old and soon to be replaced. The manager of Fox Enterprises was promised a gift by TAJ Motors if he purchased the new vehicle from them. Will it be ethical to accept this gift? . (b) Why is it important to record the new asset in the fixed asset register? 5 Total marks 45 Copyright reserved Please turnover

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. com Accounting /P1 6 LDoE May/June 2024 GR11-Answer book QUESTION 2 MOKWANA TRADERS 2.1 Statement of Comprehensive Income for the year ended 29 February 2024 Sales (1350 050 Cost of sales Gross profit Other operating income Gross operating income Operating expenses Bad debts (4 120 Trading stock deficit (122 500 Operating profit Profit before interest expense Net profit for the year 41 Copyright reserved Please turnover

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. com Accounting /P1 7 LDoE May/June 2024 GR11-Answer book 2.2 Trade & other receivables 9 Total marks 50 Copyright reserved Please turnover

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. com Accounting /P1 8 LDoE May/June 2024 GR11-Answer book QUESTION 3 JULAGNE TRADERS 3.1 Analysing and Interpreting Financial statements Calculate the following financial indicators on 30 September 2023. 3.1.1 Current ratio 3 3.1.2 Debt equity ratio 3 3.1.3 Percentage return earned by partner Agnes 7 Copyright reserved Please turnover

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. com Accounting /P1 9 LDoE May/June 2024 GR11-Answer book 3.2 Liquidity 6 Copyright reserved Please turnover

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. com Accounting /P1 10 LDoE May/June 2024 GR11-Answer book 3.3 Financing strategies/ Gearing 6 3.4 Partner July’s return on earnings 5 Total marks 30 Copyright reserved Please turnover

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. com Accounting /P1 11 LDoE May/June 2024 GR11-Answer book QUESTION 4 CONCEPTS AND STATEMENT OF FINANCIAL POSITION 4.1 CONCEPTS 4.1.1 4.1.2 4.1.3 4.1.4 5 4.1.5 4.2 EQUITY & LIABILITIES: CURRENT ACCOUNT NOTE Calculate the missing figures indicated by (a) to (e) in the Current Account note Calculations Answer a) b) c) d) e) f) g) 20 Total marks 25 Copyright reserved Please turnover

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. com NSC GRADE 11 MEMORANDUM ACCOUNTING P1 TASK 4 MAY/JUNE 2024 MARKS: 150 MARKING PRINCIPLES: 1. Unless otherwise indicated in the marking guidelines, penalties for foreign items are applied only if the candidate is not losing marks elsewhere in the question for that item (no penalty for misplaced item). No double penalty applied. 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. Full marks for correct answer. If answer incorrect, mark the workings provided. 4. If a pre-adjustment figure is shown as a final figure, allocate the part-mark for the working for that figure (not the method mark for the answer). Note: If figures are stipulated in marking guidelines for components of workings, these do not carry the method mark for final answer as well. 5. Unless otherwise indicated, the positive or negative effect of any figure must be considered to award the mark. If no + or – sign or bracket is provided, assume that the figure is positive. 6. Where indicated, part-marks may be awarded to differentiate between differing qualities of answers. 7. Where penalties are applied, the marks for that section of the question cannot be a final negative. 8. Where method marks are awarded for operation, the marker must inspect the reasonableness of the answer. 9. Operation means 'check operation'. 'One part correct' means operation and one part correct. Note: Check operation must be +, -, x, ÷, or per marking guidelines. 10. In calculations, do not award marks for workings if numerator and denominator are swapped – this also applies to ratios. 11. In awarding method marks, ensure that candidates do not get full marks for any item that is incorrect at least in part. Indicate with a . 12. Be aware of candidates who provide valid alternatives beyond the marking guidelines. Note that one comment could contain different aspects. 13. Codes: f = foreign item; p = placement/presentation. These marking guidelines consist of 11 pages

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. com Accounting /P1 2 LDoE May/June 2024 GR11-Marking guidelines QUESTION 1 1.1. ANALYSIS OF TRANSACTIONS General Ledger Owner’s Assets Liabilities Account debited Account credited equity E.G. Equipment Rams digitals/Creditors +17 250 0 +17 250 control 1.1.1 Bank Bad debts +4 000 +4 000 recovered✓ ✓ 1.1.2 PNA Stationery✓ stores/Creditors +380 -380✓ control✓ 1.1.3 Debtors’ Debtors -3 800 -3 800✓ allowances✓ control Trading stock Cost of sales✓ +1 425 +1 425✓ 1.1.4 Debtors Creditors +500✓ +500 11 control✓ control NB: Do NOT award marks if entries are made in all three columns of the accounting equation. 1.2 FIXED ASSETS: GENERAL LEDGER AND NOTE 1.2.1 Dr ASSET DISPOSAL ACCOUNT N Cr 2023 Equipment 50000✓ 2023 Accumulated depreciation on 18750 Jun,30 Jun,30 Equipment(15000✓+3750✓✓) One part correct Bank 21000✓ Loss on sale of asset 10250 balancing figure 7 50 000 50 000 Copyright reserved Please turnover

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. com Accounting /P1 3 LDoE May/June 2024 GR11-Marking guidelines 1.2.2 TANGIBLE / FIXED ASSETS NOTE Land & Building Equipment Carrying vale 2 000 000 165 000 Cost 2 000 000 300 000 Accumulated depreciation 0 (135 000) Movements Additions at cost 600 000✓ 180 000 Depreciation for the year S.O.N: (3 750 see 1.2.1+ 37 500✓✓ 0 52 500  + 11 250✓✓) Disposal at carrying value (50 000-18 0 31 250✓✓ 870) Carrying value 2 600 000 261 250 Cost 2 600 000 ✓ *430 000  13 Accumulated depreciation 0 #(168 750)  One part correct *300 000 + 180 000- 50 000 #135 000 + 37 250 + 11 250 1.3 GAAP CONCEPTS: Which GAAP principle is applicable in each case? 1.3.1 The Land and Buildings were revalued in January 2024 and the market value is R1 300 000. The financial records for Fox enterprises are reflecting R850 000. Historical cost ✓ 1.3.2 Any expenses paid to maintain a vehicle must be recorded within the year in which that maintenance occurred. 2 Matching concept ✓ Copyright reserved Please turnover

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. com Accounting /P1 4 LDoE May/June 2024 GR11-Marking guidelines 1.4 1.4.1 PROBLEM SOLVING & INTERNAL CONTROL (a) TWO points of advice to the owner regarding high maintenance costs. • Dispose off, older vehicles (more than 5years) before the maintenance costs start going up. ✓✓ • Install monitoring devices inside the trucks to detect reckless /careless driving to avoid unnecessary truck damages. ✓✓ • Use of stickers (with business tele/cellphone numbers at the back of the trucks) for the public to report any bad driving. Any valid/relevant advice (b) Calculate the cost price of the truck 135 000 100✓ x 20✓ = R675 000  one part correct which must include 1 255 000 270 000 100✓ 12 OR x 20✓ 𝑥 24 = 𝑅675 000. 1 7 Copyright reserved Please turnover

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. com Accounting /P1 5 LDoE May/June 2024 GR11-Marking guidelines 1.4.2 ETHICS & INTERNAL AUDITING (a) One of the vehicles is old and soon to be replaced. The manager of Fox Enterprises was promised a gift by TAJ Motors if he purchased the new vehicle from them. Will it be ethical to accept this gift? Excellent explanation.✓✓✓ Good explanation ✓✓ Fair explanation✓ • No, because the company policy needs to be followed. This will be seen as a bribe, and it is therefore unacceptable. • This is unfair competition as different quotations need to be sought to get the ‘best’ price/deal. • All gifts need to be declared and recorded in a gift register, therefore, any gift given secretly, constitutes unethical practice. (b) Why is it important to record the new asset in the fixed asset register? Very good explanation.✓✓ Satisfactory/Partial explanation ✓ • When it’s time to dispose of an asset (through sale, donation, or scrapping), a fixed asset register ensures that the transaction is correctly recorded and accounted for. • By tracking purchase prices, locations, and other essential information about each fixed asset, businesses gain insights into their value and usefulness. This data informs decisions related to asset maintenance, repairs, upgrades, and replacements. • A fixed asset register helps businesses keep track of all their assets. By maintaining an up-to-date list of fixed assets, companies can monitor and control their assets more effectively. This helps in preventing theft, loss, or misplacement. • Accurate calculation of depreciation relies on a complete and current inventory recorded in the fixed asset register. • Understanding asset value and useful life enables businesses to 5 predict future cash flows and expenses. 45 Copyright reserved Please turnover

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. com Accounting /P1 6 LDoE May/June 2024 GR11-Marking guidelines QUESTION 2 MOKWANA TRADERS 2.1 Statement of Comprehensive Income for the year ended 29 February 2024 Sales (1350 050 – 5 375 ✓) 7 1 344 675 Cost of sales (1 344 675 x 100/150✓) or 1 350 050 – 896 450  448 225  - 5 375✓ Gross profit (1 344 675 x 50/150) check operation 448 225✓ Other operating income 187 480  Rent income (143 750 ✓ + 13 750 ✓✓) 157 500  Commission income 22 480✓ Discount received (7 270 + 230) 7 500 ✓✓ Gross operating income 8 637 730 Operating expenses net sales x 28/100 376 509  Salaries and wages 105 600✓ Consumable stores ( 11 900 - 3 100 ) no part mark 8 800 ✓✓ Insurance (19 300 ✓ – 6 200 ✓) or two marks on 13 100 or 13 100 Sundry expense balancing figure 17 51 884 Bad debts (4 120 + 3 000 ✓) one part correct 7 120 see c.o.s Trading stock deficit (122 500 – 4 200 ✓ + 2 500 ) one 120 800  part correct Provision for bad debts adjustment (2 465 ✓– 2 010✓✓ ) 455  one part correct Depreciation 68 750✓ Operating profit check operation 9 261 221 Interest income (8 500 ✓ + 17 125✓ ) one part correct 25 625  Profit before interest expense 286 846 Interest expenses 35 500✓✓ 41 Net profit for the year check operation 251 246 -1 for foreign entries. Apply in conjunction with marking principle no.1 and 14  for one part correct. Apply in line with marking principle no 10 and 12 Copyright reserved Please turnover

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. com Accounting /P1 7 LDoE May/June 2024 GR11-Marking guidelines 2.2 Trade & other receivables Debtors control (70 000 ✓ - 5 375✓ - 3 000 ✓) 61 625 Less: Provision for bad debts ( 2 465)✓ Net trade debtors one part correct 59 160 Prepaid expenses must be from 2.1 (Insurance) 6 200 Accrued income must be from 2.1 (Rent income 13 750 & Interest Income) 9 79 110 NB: Mark details independent of amounts/figures 50 Copyright reserved Please turnover

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. com Accounting /P1 8 LDoE May/June 2024 GR11-Marking guidelines QUESTION 3 PARTNERSHIP’ FINANCIAL INDICATORS: ANALYSIS & INTERPRETATION Julagne Traders 3.1 Calculate the following financial indicators on 30 September 2023. 3.1.1 Current ratio 176 200 ✓ : 58 700 ✓ 3 3,0 : 1  must be shown as x : 1 Also apply marking principle no.10 3.1.2 Debt equity ratio 762 180 ✓ : 1 270 300 ✓ 3 0, 6 : 1  . must be shown as x : 1 3.1.3 Percentage return earned by partner Agnes 265 200✓ + 78 750✓ + 34 500✓ 𝒙 100 𝟏 𝟐 (1 700 000✓ + (1 270 300✓) ✓ 25, 5%  must be shown as a %. Also apply marking principle 7 no.10 Copyright reserved Please turnover

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. com Accounting /P1 9 LDoE May/June 2024 GR11-Marking guidelines 3.2 Liquidity Two Indicators✓ ✓ Trend and figures✓ ✓ Explanation ✓ ✓ Award partial (one) mark for unclear answers. Disagree with the concern: • Current ratio increased from 1 : 1 to 3 : 1 / by 2. (see 3.3.1) • Acid test ratio increased from 0,4 :1 to 0, 9 : 1 / by 0,5 Explanation for disagreeing: • The partners should be happy as the business will be able to pay back their short-term debts without any problems due to the current ratio and acid test ratio improving. Agree with the concern: • Average debtors’ collection period decreased/dropped from 35 days in 2022 to 40 days in 2023 /by 5 days • Stock turnover rate decreased/dropped by 2,0 times between 2022 and 2023 or from 11,4 times in 2022 to 9,4 times in 2023. Explanation for agreeing. The above financial indicators suggest that debtors are paying too slowly/ineffective debtor management and stock is also selling slowly. Therefore, the business is likely experience cash flow problems in future. 6 Copyright reserved Please turnover

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. com Accounting /P1 10 LDoE May/June 2024 GR11-Marking guidelines 3.3 Financing strategies/ Gearing Two Indicators✓ ✓ Trend✓ and figures✓ Partial mark for unclear comment ✓ ✓ • Debt/Equity ratio increased from 0,3: to 0, 6: 1 (by 0, 3: 1) Comment • The extend to which the business is depends on borrowed capital has increased compared to the previous year. • Even though the business is still positively geared, and can take another loan, the risk of depending on borrowed funds 6 has gone up. 3.4 Partner July’s return on earnings Indicator✓ Trend✓ and figures✓ Comment ✓✓ Award partial mark for unclear responses. Although the return earned by partner July decreased from 31% (in 2022) to 21, 1% (in 2023) / by 10%, it is still better than the alternative investments’ rate. July may be dissatisfied by the drop (10 %) in his investments and the fact that Agnes still managed to earn a slightly higher return than him (25, 5%) despite the fact that Agnes dropped by a bigger margin (17, 5%). 5 30 Copyright reserved Please turnover

Downloaded from Confidential Information hlayiso.com - This is for official consumption Downloaded f rom St anmorephysics. com Accounting /P1 11 LDoE May/June 2024 GR11-Marking guidelines QUESTION 4 CONCEPTS AND STATEMENT OF FINANCIAL POSITION 4.1 CONCEPTS 4.1.1 True ✓ 4.1.2 False ✓ 4.1.3 False ✓ 4.1.4 True ✓ 5 4.1.5 False ✓ 4.2 EQUITY AND LIABILITIES SECTION: CUURENT A/C NOTE Calculations Answer a) R24 000 x 2 = R48 000 ✓ 25 440 R24 000 x 106/100✓ x 10✓ =or R254 400✓ R302 400  One part correct R210 000 x 10% x 3/12 = R 5 250 ✓ b) R760 000 x 10% x 3/12 = R19 000 ✓ R69 850  R760 000x 12% x 6/12 = R45 600 ✓ One part correct. R20 800  c) R312 000/12 = 26 000 ✓ x 80% One part correct. R12 650 ✓✓ d) R34 150 – R21 500 R220 000  e) R232 650 – R12 650 see ‘d’ above R12 000 ✓ f) R6 900 + R5 100 (dr) R257 000 ✓ g) R12 000 see f above + R245 000 20 25 Copyright reserved Please turnover