Accounting Grade 11 Paper 1 Limpopo June 2025 Paper & Memo

Testpapers.co.za LIMPOP©O PROVINCIAL GOVERNMENT REPUBLIC OF SOUTH AFRICA DEPARTMENT OF EDUCATION 11 AMINATION TOTAL MARKS: 150 — DURATION: 2 Hours This question paper consists of 11 pages, a formula sheet and 08 pages answer book.

Test veeee eng ee _,_ & Testpopers.co.za a LDoE/June 2025 Question Paper INSTRUCTIONS AND INFORMATION Read the following instructions carefully and follow them precisely. 1. Answer ALL the questions. 2. _ Aspecial ANSWER BOOK is provided in which to answer ALL the questions. 3. | Show ALL workings to earn part-marks. 4. You may use a non-p e lator. 5. You may use a dar! ink to answer the questions. 6. | Where applicable, sho s to ONE decimal point. 7. If you choose to do so, yo a e the Financial Indicator Formula Sheet attached at the end of this question paper. The use of this formula sheet is NOT compulsory. 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 1 Statement of Comprehensive incol 2 Notes to the Financial statements 3 Analysis and Interpretation of financial statements (financial indicators) TOTAL Copyright reserved please turnover

Testpapers.co.za AvLUUTIUTIY OF Lt iviuyeal CAaIauUrlr i © me LDoE/June 2025 Question Paper Question 1 Concepts & Statement of Comprehensive Income (65 marks; 52 min) 1.1. Choose a description from COLUMN B that matches the term in COLUMN A. Write only the letter (A — D) next to the question number (1.1.1-1.1.5) in the Answer book. Example 1.1.5 C COLUMN A 1.1.1 Going c =» | COLUMN B A Bank charges are separated from interest on overdraft although both are deducted by the bank B_ If the net profit is calculated at the end of a twelve month period, the income earned and expenses incurred, must be accounted for during that period 1.1.3. Materiality C. This shows the position of Assets, Equity and Liabilities of a business on a particular day 1.1.4 Statement of Financial D_ The business interests are Position separated from personal issues/matters 1.1.5 Matching E Financial statements are prepared with an ==) = i lat the Copyright reserved please turnover

Testpapers.co.za Muveuurrpayer 1.2. GuJo Traders LDoE /June 2025 The information relates to GuJo Traders (with partners, Guluva and Jojo) for the financial year ended 28 February 2025 Required Prepare the Statement of Comprehensive Income for the year ended 28 February 2025 - 1.3 (41) (4) (3) (8) Information extracted from the Pre-adjustment Trial Balance on 28 February 2025 Balance Sheet Accounts section Rands Trading stock R 384000 Loan: ANW Bank 304 500 Debtors control 66 000 Provision for bad debts (1 March 2024) 5 950 Nominal Account Section Sales Cost of sales Salaries and wages Insurance Rent income Discount received Bad debt Advertising Telephone was Interest on fixed deposit (balancing figure) Copyright reserved Please Turnover

Testpapers.co.za LDoE /June 2025 mussuuirpaper A Adjustments and additional information: The business used a fixed mark-up of 60% on the cost price. This was achieved over the financial year. (i) | On 28 February 2025, credit sales to a debtor, Wendy Tseka, for R15 000, were not recorded. (ii) | stocktakifg 0n 28 February 2025 reflected trading F 000. (iii) debtor, was declared insolvent. R4 500 liquidators of her estate and this was r estate paid a first and final dividend of The rest of the debt must still be written (iv) | The provision for bad debts must be decreased to R3 010. (v) | The telephone account for February 2025, R1 150, has not paid yet. (vi) Anew annual insurance contract of R102 000, payable in equal monthly premiums, was taken out on 1 April 2024. (vii) | Rent income has been received for the period 1 March 2024 to 31 December 2024. Note that the rent was decreased by R400 per month as from 1 October 2024. (viii) Loan statement received from Friendly Bank reflected the following: Balance: 1 March 2024 1 356 000 Interest on loan 144 000 Repayment during the financial 300 000 year (including interest) Balance: 28 February 2025 1 200 000 The capital repayment will decrease by 10% in the next financial year Copyright reserved Please Turnover

Testpapers.co.za LDoE /June 2025 mussuuirpaper (ix) | An employee, Zanele, Nkadime, who commenced work on 1 February 2025 was omitted from the Salaries Journal. Details of her salary for February 2025 are as follows: GROSS SALARY DEDUCTIONS | ||CONTRIBUTIONS PENSION FUND 2 7 000 2240 1d 20% of the gross salary recorded as part of salaries and wages. 000 for depreciation on Vehicles and he % eon expenses on sales is 15%. (xii) | Net profit for the year after all the adjustments were taken into account amounted to R1 346 840. 1.4. Provide TWO possible reasons for a decrease in the rent income (adjustment vii) (4) Copyright reserved Please Turnover

Testpapers.co.za LDoE /June 2025 mussuuirpaper Question 2 Notes to the Financial Statements (49 marks; 39 minutes) NGWATHOLE TRADERS The following information was extracted from the records of NGWATHOLE TRADERS, a partnership owned by Mr Sethole and Mr Ngwato REQUIRED 2.1 Calculate in ital for both partners (9) 2.2. Prepare thi ote to the Statement of Financial (20) position on 2! 2.3. Prepare the Equity ai ility Section to the Statement of (20) Financial pos ary 2025 Information Extract from the Post-Adjustment Trial Balance on 28 February 2025 Capital: Sethole 290 000 Capital: Ngwato 280 000 Current Account: Sethole (1 March 2024) 67 000(dr) Current Account: Ngwato (1 March 2024) 55 000(cr) Drawings: Sethole ? Drawings: Ngwato Bank Petty cash Debtors control Loan : DEN Bank Fixed deposit: MNB Bank Creditors control Accrued income Accrued expenses Prepaid expenses A. Sithole has increased her capital by R20 000 halfway through the year, _ this has not yet been recorded. Ngwato’s capital remained the same throughout the year. B. The partnership agreement stipulates the following: * Interest on capital is calculated at 10% on Capital balances. Copyright reserved Please Turnover

Testpapers.co.za LDoE /June 2025 mussuuirpaper Ngwato’s bonus is 50% less than that of Sethole. Total Salary paid to Sethole amount to R159 000; this includes her salary for March 2024. Ngwato’s salary for the year amounted to R182 000. Both partners are entitled to a R1000 increase p.m. on 1 January each year which has been taken into account. * Total Salary paid to Sethole amount to R 159 000; this includes her salary for March 2024. Ngwato’s salary for the ratio of 2 * Ngwato's drawi me withdraws 50% more than Ngwato r amounted to R765 000 and the tween Sethole and Ngwato in the nted to R85 000, while Sethole C. Acreditor with a credit balance of R3 400 needs to be transferred to the debtor’s ledger. D_ The interest on loan is capitalised. Below is the loan statement received from DEN Bank. [ | DEN BANK LOAN STATEMENT ON 28 FEBRUARY 2025 Balance on 01 March 2024 380 000 Interest for the year ? Repayment including interest (R6 500 x 12) 78 000 Balance on 28 February 2025 330 000 The Capital portion of the loan that will be paid in the next financial year will increase by R15 000. TOTAL MARKS _||/49 Copyright reserved Please Turnover

Testpapers.co.za LDoE /June 2025 mussuuirpaper Question 3 Analysis and Interpretation of financial statements (financial indicators) (36 Marks, 25 Minutes) SNP TRADERS Information on the records of SNP Traders for the year ended 28 FEBRUARY 2025 REQUIRED 3.1. Calculate the following financial indicators for 2025 \ a | on cost (4) tage on sales (3) (3) (4) . Percentage return earned by Max (5) . The debt/equity ratio (3) 3.2 | Comment on the liquidity position of the business. Quote and explain TWO financial indicators with figures in your answer (6) 3.3. Were the partners justified in increasing the loan? Explain. Quote TWO financial indicators, with figures, in your explanation. (4) 3.4. Marumo is not happy with his return on investment. Explain why you think he feels this way. Quote figures. INFORMATION A. Extracts from the Income Statement on 28 February 2025: Sales 4 257 000 Gross profit 1 677 000 Operating expenses 1 064 250 Net Profit for the year ; dean FI B. Extracts from the partners current Total primary distribution 2 Share in the remaining profit Drawings 21¢ Tw es S CU Copyright reserved ee , jover

Testpapers.co.za LDoE /June 2025 meuveuurepaper C..__Extracts from the Balance Sheet on 28 February: 2025 2024 Partner’s Equity 1 237 300 838 300 Capital 957 000 885 000 Current Account 262 300 (46 700) Loan: Bone Bank 742 380 85 000 Current Assets 598 080 441 600 Trading stock — 276 400 200 800 Trade and other ceonivebies 288 880 220 200 Cash and cash Pe 32 800 20 20 Current Liab 427 200 368 000 Trade and other 328 360 339 240 Short term loan _ Zi 98 840 28 760 D. Details of the pai En 28 February Marumo 2025 2074 2024 Capital 650 000 | 535000} 325 0 C 50 000 Current Account 202 720| 22 300| 580 | (69 000) 852 720 | 557 3007 § 81 000 E. Financial indicators on 28 February: 2025 2024 Current ratio 2 1.234 Acid test ratio 2 0.7:1 Debt/Equity ratio ? O17 Return on investment: Marumo 54% 46% Return on investment: Max 2 81% Return on capital employed 69% 43% Interest rate on loan 13% 13% TOTAL MARKS 36 Copyright reserved Please Turnover

Testpapers.co.za AvLUUTIUTIY OF Lt iviuyeal CAaIauUrlr i © LDoE/June 2025 Question Paper GRADE 11 ACCOUNTING FINANCIAL INDICATOR FORMULA SHEET Gross profit x 100 Gross profit x 100 Sales 1 Costofsales 1 Net profit x 100 Operating expenses x 100 Sales 1 Sales 1 Operating profit x 100 . Sales 1 Total assets: Tota (Current assets - Inventories) « Current assets: Current liabilities Non-current liabilities: Partners’ equity (Trade & other receivables + Cash a nd Cash equivalents) : Current liabilities Average trading stock x 365 Cost of sales 1 (See Note 1 below) Cost of sales Average trading stock Average debtors x 365 Credit sales 1 Average creditors x 365 Cost of sales 1 (See Note 2 below) Net profit Average partners’ equity Amount earned by partner_ x 100 1 Average of partners; equity (See Note 3 below) Total fixed costs Selling price per unit - Variable costs per unit (Contribution per unit) INOTE: 1. Trading stock at the end of a financial year may be used if required in a question. 2. Credit purchases may be used instead of cost of sales (figures will be the same if stock is constant). Copyright reserved

Accounting Gr11 Examination P1 4 Answer Book Testpapers.co.za LDoE/June 2025 sumption I.LDA POP@® PROVINCIAL GOVERNMENT REPUBLIC OF SOUTH AFRICA DEPARTMENT OF EDUCATION LEARNER NAME: SCHOOL: DATE: NO TOPIC MARKS MODERATION School District External 1 Statement of Comprehensive income 2 Notes to the financial statements 3 Analysis and Interpretation of financial statements TOTAL This Answer book consists of 8 pages. Copyright reserved Please turn over

Testpapers.co.za Answer Book QUESTION 1 1.1. CONCEPTS a71.1 1.1.2 1.1.3 1.1.4 4.1.5 1.2 GUJO TRADERS. — STATEMENT OF | ENDED 28 FEBI LDoE/June 2025 E INCOME FOR THE YEAR Sales (2850200 Cost of sales Gross profit Other operating inco Rent income Provision for bad debts adjustment Discount received Gross operating income Operating expenses Salaries and Wages Insurance Bad debts (6 750 Sundry expenses Telephone (9 800 “1 Copyright reserved Please turn over

Testpopers.co.za LDoE/June 2025 Answer Book 1.3. Calculate the following amounts that will appear in the statement of financial position 1.3.1 Current portion of the loan 1.3.2 Net salary owing to Zanele Nkadime 1.3.3 Trade and other receivables 15 1.4 TWO reasons for a decrease in Rent income Total marks 65 Copyright reserved Please Turnover

Testpapers.co.za LDoE/June 2025 Answer Book QUESTION 2: 2.1... |Calculate interest on capital SETHOLE NGWATO 7 re 9 2.2. NOTES TO THE 'T OF FINANCIAL POSITION ON 28 FEBRUARY 2025, CURRENT ACCC SETHOLE | NGWATO Salaries 182 000 Interest on capital Bonus 25 000 Primary Distributed gy 201 000 222 500 (85 000) Balance at the end 20 Copyright reserved Please Turnover

Testpapers.co.za LDoE/June 2025 Answer Book 2.3. EXTRACT FROM THE STATEMENT OF FINANCIAL POSITION ON 28 FEBRUARY 2025 EQUITY AND LIABILITIES PARNER’S EQUITY NON CURRENT} CURRENT LIABILITIES 20 TOTAL EQUITY AND LIABILITIES TOTAL MARKS 49 Copyright reserved Please Turnover

Se 7 LDoE/June 2025 Testpapers.co.za QUESTION 3 3.1 Calculate the following for the year 2025 Percentage mark-up on cost 4 Gross profit percentage on sales. 3 Current ratio 3 Acid-test ratio

gr ~ LDoE/June 2025 Testpapers.co.za 3.2 | Comment on the liquidity of the business. Quote TWO financial indicators with figures in your answer

3.3 3.4 Testpapers.co.za LDoE/June 2025 Were the partners justified in increasing the loan? Explain and Quote ONE financial indicator, with figures. Marumo is not happy with his return on investment. Explain why you think he feels this way. Quote figures. TOTAL MARKS 36

Testpapers.co.za LIMPOPO PROVINCIAL GOVERNMENT REPUBLIC OF SOUTH AFRICA DEPARTMENT OF EDUCATION GRADE 11 TOTAL: 150 MARKING PRINCIPLES: Unless otherwise indicated i er guideli a r foreign items are applied only if the candidate is not | n € e for that item (no penalty for misplaced item). No fe penalty a| San Penalties for placement or poor presentation (e.g. details) are applied only if the candidate is earning marks on the figures for that item. Full marks for correct answer. If the answer is incorrect, mark the workings provided. 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). 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. Where indicated, part-marks may be awarded to differentiate between differing qualities of answers. Where penalties are applied, the marks for that section of the question cannot be a final negative. Where method marks are awarded for operation, the marker must inspect the reasonableness of the answer. ‘Operation’ means ‘Check operation’. ‘One part correct’ means ‘Operation and one part correct’. NOTE: Check operation must be +, —, x or + or as per marking guidelines. 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 9 12. | Beaware of candidates who provide valid alternatives beyond the marking guideline. Note that one comment could contain different aspects. This memorandum consists of 8 pages including the cover page Copyright reserved Please turnover

Testpapers.co.za QUESTION 1 1.1 CONCEPTS 1.4.1 Ev t2 Fv 13, AY 1.1.4 Cv +5 By 1.2 GUJO TRADERS STATEMENT OF COMI c OME FOR THE YEAR ENDED 28 FEBRUAR\ Sales (2 850 200 + 15 000”) ’ 2 865 200M* Cost of sales (1 781 375” +93 ir f A 2 865 200 one (net sales) x 10 | ((1.790 750) 4 Gross profit be " 2 1 074 450 no mark Other operating income 1 620M Rent income (69 700 + 13 380v v) *83 080M Provision for bad debts adjustment (5 950 -3 010) 2 940V v Discount received 5 600v Gross operating income 9 operation 1 166 070M Operating expenses _ net salesx15% 429 780MM Salaries and Wages (132 000Y +35 000v M1 + % 2 240) 169 240M Insurance (108 940” — 8 500v v 100 440M Bad debts ( 6 750 + 3 000v v) *9 750M Sundry expenses “10 775M] Telephone (9 800 + 1 150”) _ 10 9 Trading stock deficit (384000 — 284 000”) Depreciation Operating profit _ i 736 290M | Interestincome _(PBIE-OP/bal figure) ; 754 5 Profit before interest expense/financing costs | ;s\so*5, *1490 Interest expense/finance costs x (144° Net profit for the year 1 346 840v LDoE June 2025 on “1 41 *one part and the operation must be correct before awarding a method mark! Copyright reserved Please turnover

Testpapers.co.za 1.3. Calculate the following amounts that will appear in the statement of financial position 1.3.1 Current portion of the loan 300 000 x 90/100 = 30 000M* 300 000 - 30 000 *one part correct | 297 900%" 1.3.2 Net salary owing to Zanele Nkadime 35 000 © see salaries- 7000 ¥ + 2 240M *30 240 4 LDoE June 2025 1.3.3. Trade and other receivables Net trade debtors ( 66 000% 000v ) 63 000" Total 65 marks 65 Copyright reserved Less provision for bad debts: (3.010) » 59 990%" Plus : Accrued In nt income) see 1/s 13 380M 15 Prepaid cares (see 1/8) 10 500M 15 | __ ereration 83 870 1.4 TWO reasons for a decrease in Rent income Two marks for clear and very good answer. NB: Award part mark for unclear/incomplete answers * Tenant could have negotiated for a decrease (as he couldn't afford). vv * The tenant negotiated to occupy a smaller floor space.v “ * The tenant got a cheaper offer for the same floor space elsewhere. 4 ; 4 Any valid reason Please turnover

Testpapers.co.za LDoE June 2025 QUESTION 2 2.1. [Calculate interest on capital Sethole Ngwato 290 000v x 10% x 6/12v = 14 500M | 280 000 vx 10% 310 000v x 10% x 6/12v = 15 500M] = 28 000M one part correct One part correct = 30 000M 9 9 2.2. NOTES TO THE: FINANCIAL POSITION ON 28 FEBRUARY 2025 NGWATO Bonus Primary Distribution Final distribution Net Profit for the year Drawings : a | 000) Retained income 210 100M 342 400M Balance at the beginning (67 000) v 55 000Y 20 Balance at the end 143 a 397 400M 20 Copyright reserved Please turnover

Testpapers.co.za LDoE June 2025 2.3. EXTRACT FROM THE STATEMENT OF FINANCIAL POSITION ON 28 FEBRUARY 2025 EQUITY AND LIABILITIES PARTNER’S EQUITY 1 130 500M Capital (280 000v + 290 000v + 20 000v ) 590 000M v Current accounts see 2.1(143 100 +397 400) 8] 540500MM 265 000 4 265 000M 256 900% 191 900m] [2° 8 65000m| L20 1 652 400M TOTAL EQUITY AND LIABILITIES TOTAL MARKS| 4g 49 Copyright reserved Please turnover

Testpapers.co.za QUESTION 3 LDoE June 2025 3.1. Calculate the following: Percentage mark-up on cost 1677 000 v x 100 (4.257 000Y -1677000”) 1° 2.580 000 65% operation one part correct x 100 snot one par corect SEARS AAS Gross profit percentage on sales 1677 000” x 100 4 257 000v 39.4%! wo Current ratio 598 080¥ : 427 200v 1,4 : 112 operation one part cect Acid-test ratio 321 680 two marks 598 080 — 276 400¥ : 427 200Y 0,75 : 1 © operation one part correct. ABSEBNDIE. Do not accept 1:1 Copyright reserved Please turnover

Testpapers.co.za LDoE June 2025 The percentage return earned by Max 338 580 (279 570 + 59 010) Y both x 100 Ya (281 000 v + 384 580 v) 1 332 790 three marks 5 101,7%M 5 The debt/equity ratio for 2025 742 380 Y : 1 237 300 v 0,6 : 12 cn al 3 3.2. Comment on the liquidity of the business. Quote and explain TWO financial indicators (with figures) in your answer. Financial indicators ¥ v (with figures and trend) ~¥ ~ Comment vv (award part marks for unclear/partial comment) The current ratio improved from 1,2: 1to1,4:1 6 The acid test ratio improved from 0,7 : 1 to 0,8: 1 Comment e The business is managing its current assets (stock and debtors) effectively. e The business is in a liquid position / The liquidity of the business is sound e The business will be able to repay its short-term debts as they have enough liquid assets. Any valid comment. Copyright reserved Please turnover

Testpapers.co.za LDoE June 2025 Marking guidelines 3.3 Were the partners justified in increasing the loan? Explain. Quote ONE financial indicators, with figures, in your explanation. Financial indicator “figures and trend “ Explanation ¥ “ The debt equity ratio moved from 0,1 : 1 to 0,6 : 1/by (see 3.1) The business is at high risk / the business is highly geared / the business creditworthiness (ability to raise loans) is in 4 jeopardy. 4 3.4. ] am Marumo is not happy with his return on investment. Explain why you think he feels this way. Quote figures. Financial indicator ¥ mmorep ny Explanation Vv ¥ There must be a comparison between max and Marumo’s returns Figures. Marumo’s return has increased from 46% to 54%. Max's return increased from 81% to 102%. Explanation: He is probably unhappy because his return is almost half (2) of 4 Max's (48%). He is the partner that has contributed more capital (650 000: 4 325 000). He manages his Current Account better (202 720 : 59 580). TOTAL | 36 MARKS 36 Copyright reserved