Accounting Grade 12 NW March 2023 Paper & Memo

Downloaded from Stanmorephysics.com education corner Thelesho Tawana and Lefapha la Thuto la Bokone Bophirima Modiri Molema Road Noord-Wes Onderwys Departement as is anvaaer el.: North West Education Department e-mail: mmojafi@nwpg.gov.za NORTH WEST PROVINCE e-mail: nduiker@nwpg.gov.za OFFICE OF THE SUB-DISTRICT MANAGER: MAHIKENG SUB-DISTRICT OFFICE NGAKA MODIRI MOLEMA DISTRICT GRADE: 12

Rawintogded from Stanmorephysics.com INSTRUCTIONS AND INFORMATION Read the following instructions carefully and follow them precisely. NSC GRADE: 12 (Question paper) 1. Answer ALL_questions. 2. A speciaLANSWER BOOK is provided in which to answer ALL questions. 3. Show ALjE-workings to earn part-marks. 4. 5 6 7 question paper. 8. Write neatly and legibly. You may-use a non-programmable calculator. . You may use a blue/black ink to answer questions. . Where applicable, show ALL calculations to TWO decimal points. NMM/March/2023 . You may use the Financial Indicator Formula Sheet attached at the end of this 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 TIME IN MINUTES 1. Concepts, Notes and Statement of 55 60 minutes financial position 2. Concepts, Ratios and Cash flow 45 30 minutes statement TOTAL 50 90 minutes Copyright reserved Please turn over

Rawintogded from Stanmorephysics.com NMM/March/2023 NSC GRADE: 12 (Question paper) QUESTION 1: CONCEPTS AND FINANCIAL STATEMENTS (55 marks: 60 minutes) 1.1. Choose the correct word from COLUMN B to match the description in COLUMN A. Write only the letter (A — E) next to the question number (1.1.1 to 1.1.5) in the ANSWER-BOOK. company can issue. NO COLUMN A COLUMN B 1.1.1. | Setsjout the rights, duties and A | Matching concept responsibilities of shareholders and directors. 1.1.2. | The total number of shares that a B | International Financial Reporting Standards (IFRS) 1.1.3. | Revenue generated during an accounting | C period should be in line with the expenses during the same period. Memorandum of Incorporation (MOl) 1.1.4. | Guidelines for the preparation of financial | D statements to ensure consistency. Shareholders 1.1.5. | The.....are the owners of the entity E Authorised share capital 1.2. TWO-WAY LIMITED (5) You are provided with the information relating to Two-Way Ltd, for the year ended 28 February 2022. REQUIRED: 1.2.1. Prepare the following note to the balance sheet for the financial year ended 28 February 2022. “+ Trade and other receivables “ Ordinary share capital (12) (11) 1.2.3. Prepare the Balance Sheet (Statement of Financial Position) of Two-Way Ltd as at 28 February 2022. (Where notes are not required, show your workings in brackets in order to earn part marks) INFORMATION: (27) A. The following figures were extracted from the accounting records at the end of the financial year on 28 February 2022. Ordinary share capital ? Retained income (28 February 2022) 910 000 Fixed assets (at carrying value on 28 February 2022) 5 180 652 Loan: Canara Bank (28 February 2022) 622 800 Fixed deposit: Fargo Bank (1 March 2021) 504 000 Bank (Dr) ? Creditors’ control ? Debtors’ control 64 800 Inventory 757 800 Provision for bad debts 3 420 SARS: Income tax (Provisional tax payments) 524 520 Copyright reserved Please turn over

Rawintogded from Stanmorephysics.com NMM/March/2023 NSC GRADE: 12 (Question paper) B. Share Capital ** The company has an authorised share capital of 1 000 000 shares. “+ 60% of the authorised share capital was issued at the beginning of the financialyear. ** On 3i;March 2021, the directors received R1 100 000 on additional shares issued;of 200 000 shares. “+ On 310December 2021, the directors decided to buy back 100 000 shares from-the*estate of the deceased shareholder. C. Dividends “+ An interim dividend of 45 cents per share was declared and paid on 1 August 2021. The new shareholders qualified for the interim dividend. “+ A final dividend of 81 cents per share was declared on 28 February 2022. The shareholder whose shares were bought back are not entitled to the final dividend. D. The loan statement received from Canara bank showed the following: Opening balance (01/03/2021) R 846 000 Repayment during the year (interest included) 223 200 Closing balance (28/02/2022) 709 200 “+ Provide for interest on loan. “+ The capital repayment of the loan will remain the same as the previous financial year E. Interest on fixed deposit is earned at 10% per annum and is not capitalised. No interest has been received. 40% of the fixed deposit will mature on 30 June 2022. F. Provision for bad debts must be adjusted to 5% of the outstanding debtors. G. Trading stock, R25 200 was damaged by a storm during the year. The insurance company accepted the claim and will cover 70% of the claim. The insurance claim will be processed during May 2022. H. Insurance included an annual policy of R15 120 paid on 1 August 2021. |. Income tax for the year amounted to R483 120. J. Financial indicators: Current ratios 2.5:1 Debt Equity ratios 0.1: 1 Net asset value per share (NAV) 880 cents Copyright reserved Please turn over

Rawintoagded from Stanmorepbysics.com NMM/March/2023 NSC GRADE: 12 (Question paper) QUESTION 2: FINANCIAL INDICATORS AND CASH FLOW STATEMENT (45 marks; 30 minutes) 2.1. Choose the correct word(s) from those given in brackets. Write only the word(s) next to the question numbers (2.1.1 to 2.1.3) in the ANSWER BOOK. 2.1.1. UAused consumable stores at the end of the financial year are classified as a (current asset/financial asset). 2.1.2. Interest on loans is regarded as a/an (operating activity/financing activity). 2.1.3. The (Cash Flow Statement / Bank Statement) reflects the effect of business activities on the CASH resources of a company. (3 x 1)(3) DIGITAL GIANTS LTD The information relates to Digital Giants Ltd. The financial year ends on 31 March. REQUIRED: 2.2. Calculate the following financial indicators for the financial year ended 31 March 2021: 2.2.1. Debt-equity ratio (3) 2.2.2. Net asset value per share (3) 2.2.3. Dividend pay-out rate (4) 2.2.4. Return on average shareholders’ equity (ROSHE) (4) 2.3. Complete the table in the ANSWER BOOK for the following items for the 2021 Cash Flow Statement. Indicate in EACH case whether it is an inflow or an outflow of cash. 2.3.1. Change in Inventory (3) 2.3.2. Change in receivables (3) 2.3.3. Change in payables (3) 2.4. Calculate the following figures for the 2021 Cash Flow Statement: 2.4.1. Taxation paid (4) 2.4.2. Dividends paid (4) 2.4.3. Proceeds from sale of fixed assets (5) 2.4.4. Funds used for the repurchase of shares (2) 2.5. Complete the Net change in cash and cash equivalents (4) Copyright reserved Please turn over

Rawintogded from Stanmorepkysics.com NMM/March/2023 NSC GRADE: 12 (Question paper) INFORMATION: A. Extract from the Statement of Comprehensive Income for the year ended 31 March 2021: Depreciation: R785 000 On vehicles 475 000 On equipment 310 000 Net profit before tax 3 955 000 Income tax 1 085 000 Net profit after tax 2 870 000 B. Extract from the Statement of Financial Position: 31 March 2021 31 March 2020 R R Fixed assets at carrying value 8 865 000 8 878 000 Inventories 585 700 391 200 Debtors’ control 418 000 390 000 Creditors’ control 520 000 359 200 Income received in advance 16 000 0 Cash and cash equivalents 120 000 28 000 SARS: Income tax 354 000 (Cr) 124 000 (Dr) Ordinary shareholders' equity 10 387 600 6 910 000 Ordinary share capital 7 280 000 5 950 000 Retained income 3 107 600 960 000 Mortgage loan 2 450 000 2 800 000 Shareholders for dividends 262 400 210 000 Bank overdraft - 250 000 C. Shares: “+ 700 000 shares were in issue on 31 March 2020. “+ 120 000 new shares were issued at R12,60 per share on 1 April 2020. “* 20000 shares were repurchased on 31 March 2021 for 50% more than the average issue price of R9,10 per share. These shares qualified for final dividends. D. Dividends paidi/declared were as follows for the financial year: DIVIDEND PER DATE SHARE AMOUNT Interim 15 August 2020 45 cents R? Final 31 March 2021 32 cents R262/400 E. Fixed assets: “+ Extensions to the buildings were completed at a cost of R360 000 during the financial year. “+ Equipment was sold at carrying value during the financial year. “+ No other fixed assets were purchased or sold. Copyright reserved Please turn over

Rawintoagded from Stanmorephysics.com NSC GRADE: 12 (Question paper) F. Extract: Financial indicators: NMM/March/2023 31 March 2021 31 March 2020 Debt-equity ratio ? 04:1 Earnings per share (EPS) 350 cents 314 cents Current ratio 27:1 1,8:1 Copyright reserved Please turn over

Rawintogded from Stanmorephysics.com NMM/March/2023 NSC GRADE: 12 (Question paper) GRADE 12 ACCOUNTING FINANCIAL INDICATOR FORMULA SHEET Gross profit x 100 Sales 1 Gross profit x 100 Cost of sales 1 Net profitbefore tax x 100 Sales 1 Net profit after tax x 100 Sales 1 Qperating-expenses x 100 Sales 1 Operating profit x 100 Sales 1 Total assets : Total liabilities Current assets : Current liabilities (Current assets — Inventories) : Current liabilities Non-current liabilities : Shareholders’ equity (Trade & other receivables + Cash & cash equivalents) : Current liabilities Average trading stock x 365 Cost of sales Cost of sales 1 Average trading stock Average debtors x 365 Average creditors x 365 Credit sales 1 Cost of sales 1 . Net income after tax__x 100 Net income after tax 7 x 100 Number of issued shares 1 Average shareholders’ equity 1 (*See note below) Net income before tax + Interest on loans x 100 Average shareholders’ equity + Average non-current liabilities 1 Shareholders' equity x 100 Dividends forthe year x 100 Number of issued shares 1 Number of issued shares 1 Interim dividends _x 100 Final dividends x 100 Number of issued shares 1 Number of issued shares 1 Dividends per share x 100 Earnings per share 1 Dividends for the year x 100 Net income.after tax 1 Total fixed costs Selling price per unit — Variable costs per unit * NOTE: In this case, 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 Please turn over

aded from Stanmorephysics.com education comes Thelesho Tawana and Lefapha la Thuto la Bokone Bophirima Modiri Molema Road Noord-Wes Onderwys Departement Montshioa North West Education Department Tek: (Ole) S04-s00r e-mail: mmojafi@nwpg.gov.za NORTH WEST PROVINCE e-mail: nduiker@nwpg.gov.za Rown! 0 OFFICE OF THE SUB-DISTRICT MANAGER: MAHIKENG SUB-DISTRICT OFFICE INNGAKA MODIRI MOLEMA DISTRICT NAME OF SCHOOL NAME OF CANDIDATE CLASS NO. [ GRADE 12 | Question Topic Marks | Teacher Internal External Moderator | Moderator 1 Concepts, Notes & Statement 55 of Financial position 2 Concepts, ratios and Cash 45 Flow statement 100 Total: 100 100 100 This answer book consists of 6 pages only

Rawintogded from Stanmorephysics.com NMM/March/2023 Grade: 12 (Answer Book) QUESTION 1: 1.1 | CONCEPTS 11.1. 1.1.26 1.1.85 1.14: 1.15. 1.2. TWO-WAY LIMITED 1.2.1 (TRADE AND OTHER RECEIVABLES Debtors’ Control 64 800 12 ORDINARY SHARE CAPITAL AUTHORISED SHARE CAPITAL 1 000 000 ordinary shares ISSUED SHARE CAPITAL Ordinary shares on 28 Feb 2022 11 Copyright reserved Please turn over

Rawintogded from Stanmorepbysics.com Grade: 12 (Answer Book) 1.2.3 TWO-WAY LTD NMM/March/2023 BALANCE SHEET (STATEMENT OF FINANCIAL POSITION) ON 28 FEBRUARY 2022 ASSETS NON-CURRENT ASSETS Fixed deposit (504 000 CURRENT ASSETS TOTAL ASSETS EQUITY AND LIABILITIES SHAREHOLDERS’ EQUITY NON-CURRENT LIABILITIES CURRENT LIABILITIES Trade and other payables TOTAL EQUITY AND LIABILITIES 27 TOTAL MARKS 55 Copyright reserved Please turn over

Rawintogded from Stanmorephysics.com NMM/March/2023 Grade: 12 (Answer Book) QUESTION 2: 2.1 | CONCEPTS 2.1.1. 2.1.26 2.1.35 3 2.2. DIGITAL GIANTS LTD 2.2.1. | Calculate: Debt-equity ratio WORKINGS ANSWER 3 2.2.2. | Calculate: Net asset value per share WORKINGS ANSWER 3 2.2.3. | Calculate: Dividend pay-out rate WORKINGS ANSWER 4 2.2.4. | Calculate: Return on average shareholders' equity (ROSHE) WORKINGS ANSWER 4 Copyright reserved Please turn over

Rawintogded from Stanmorepbysics.com Grade: 12 (Answer Book) 2.3.1. 2.3.2. 2.3.3. 2.4.1. 2.4.2. 2.4.3. NMM/March/2023 For the Cash Flow Statement calculate: Change in Inventory WORKINGS ANSWER Inflow/Outflow Forthe/Cash Flow Statement calculate: Change in Receivables WORKINGS ANSWER Inflow/Outflow For the Cash Flow Statement calculate: Change in Payables WORKINGS ANSWER Inflow/Outflow Calculate: Taxation paid WORKINGS ANSWER 4 Calculate: Dividends paid WORKINGS ANSWER 4 Calculate: Proceeds from sale of fixed assets WORKINGS ANSWER 5 Copyright reserved Please turn over

Rawintogded from Stanmorepkysics.com NMM/March/2023 Grade: 12 (Answer Book) 2.4.4. | Calculate: Funds used for the repurchase of shares WORKINGS ANSWER 2.5 Calculate the net change in cash and cash equivalents. Net change in cash and cash equivalents Cash and cash equivalents at the beginning Cash and cash equivalents at the end 120 000 TOTAL MARKS 45 Copyright reserved Please turn over

Rownloaded from Stanmorephysics.com education corner Soy = Thelesho Tawana and ( Lefapha la Thuto la Bokone Bophirima Modiri Molema Road Y Noord-Wes Onderwys Departement ER asters toce / North West Education Department ‘al sme jni@nene Gorca <7 NORTH WEST PROVINCE e-mail: nduiker@nwpg.gov.za OFFICE OF THE SUB-DISTRICT MANAGER: MAHIKENG SUB-DISTRICT OFFICE INNGAKA MODIRI MOLEMA DISTRICT ACCOUNTING P 1 ACADEMIC YEAR 2023 [ GRADE 12 | This marking guideline consists of 6 pages only

Rawintogded from Stanmorephysics.com NMM/March/2023 Grade: 12 (Marking guideline) QUESTION 1: 1.1 | CONCEPTS 111.6% 1.1.20i/8 ¥ LiBah 114-28 ¥ Dv 1.1.5. 5 1.2. TWO-WAY LIMITED 1.2.1 (TRADE AND OTHER RECEIVABLES Debtors’ Control 64 800 Less provision for bad debts (64 800 x 5%) (3 240) Vv Net trade debtors (operation) 61 560 4 Income receivable 50 400 v Prepaid expenses 6 300 vv Insurance claim (25 200 x 70%) 17 640 Vv SARS Income tax (524 520V — 483 nen 41 400 M1* * (Operation one part correct) | 177 300 M* 12 ORDINARY SHARE CAPITAL AUTHORISED SHARE CAPITAL 1 000 000 ordinary shares ISSUED SHARE CAPITAL 600 000 v_ | Ordinary shares issued at beg 4 900 000 v1 200000 | Additional shares issued 1 100 000 v (100 000) v | Repurchases of shares at R7.5 ¥v | (750 000) M1 700 000 v__| Ordinary shares on 28 Feb 2022 5 2500004 11 Copyright reserved Please turn over

Rawintogded from Stanmorephysics.com Grade: 12 (Marking guideline) 1.2.3 TWO-WAY LTD NMM/March/2023 BALANCE SHEET (STATEMENT OF FINANCIAL POSITION) ON 28 FEBRUARY 2022 ASSETS NON-CURRENT ASSETS balancing figure 5 493 100 Fixed assets Accept 5 180 652 5 190 700 Mi Fixed deposit (504 000 — 201 600) 302 400 V4 CURRENT ASSETS (826 200 x 2.5) 2 065 500 VM Inventories (757 800 ¥ — 25 200 v) 732 600 M1 Trade and other receivables 177 300 M* Cash and cash equivalents ((954 000V + 201 600”) 1155 600 4 TOTAL ASSETS (cera equty and ates) 7 558 600 EQUITY AND LIABILITIES SHAREHOLDERS’ EQUITY (700 000 x 880”) 6 160 000 4 Ordinary share capital (operation) | 5 250 000 Retained income 910 000 v NON-CURRENT LIABILITIES 572 400 Loan : Canara Bank (709 200 v— 136 800v) 572 400 CURRENT LIABILITIES 826 200 Trade and other payables balancing figure 122 400 Shareholders for dividends (700 000 x 0,81) 567 000 VM Current portion of loan (see long-term loan above) 136 800 TOTAL EQUITY AND LIABILITIES ——(operationone partcomect) | 7 558 600 27 TOTAL MARKS 55 Copyright reserved Please turn over

Rawintogded from Stanmorephysics.com NMM/March/2023 Grade: 12 (Marking guideline) QUESTION 2: 2.1 | CONCEPTS 2.1.1.| Current asset “ 2.1.20) @perating activity v 2.1.3—-Cash Flow Statement ¥ 3 2.2. DIGITAL GIANTS LTD 2.2.1. | Calculate: Debt-equity ratio WORKINGS ANSWER 0,2:1M 2 450 000 Y : 10 387 600 ¥ q (7 280 000 + 3 107 600) one mark 3 2.2.2. | Calculate: Net asset value per share WORKINGS ANSWER 1 298,5 cents 10 387 600 Y x 100 cents* 800 000 ¥ (700 000 + 120 000 — 20 000) one mark aoe tar; Slice cr 3 2.2.3. | Calculate: Dividend pay-out rate WORKINGS ANSWER 77 two marks OR 22% 45 ¥+ 32 ¥ x 100 one mark one mark 350 ¥ 1 (369 000 + 262 400) OR: 0,45 + 0,32 631 400 x 100 3,50 2.870 000 4 2.2.4. | Calculate: Return on average shareholders' equity (ROSHE) WORKINGS ANSWER 33,2% 2 870 000 ” x 100* t 1/2 ¥ (10 387 600 + 6 910 000) ¥ 1 17 297 600 8 648 800 4 Copyright reserved Please turn over

Rawintogded from Stanmorepbysics.com 2.3.1. 2.3.2. 2.3.3. 2.4.1, 2.4.2. 2.4.3. Grade: 12 (Marking guideline) NMM/March/2023 For the Cash Flow Statement calculate: Change in Inventory WORKINGS ANSWER Inflow/Outflow 391 200 — 585 700 (194 500) vv Outflow “” Forthe/Cash Flow Statement calculate: Change in Receivables WORKINGS ANSWER Inflow/Outflow 418 000 — 390 000 (28 000) vv Outflow ~ For the Cash Flow Statement calculate: Change in Payables WORKINGS ANSWER Inflow/Outflow 520 000 + 16 000 176 800 V4 Inflow” 536 000 — 359 200 Calculate: Taxation paid WORKINGS ANSWER 1 085 000 Y — 124 000 Y — 354 000 ¥ 607 000 4 one part correct OR one mark one mark —_ one mark —1 085 000 + 124 000 + 354 000 A Calculate: Dividends paid WORKINGS ANSWER (820 000 x 0,45) two marks 579 000 MI 210 000 “+ 369 000 vv one part correct OR one mark — one mark — one mark 210 000 + 631 400 — 262 400 see 2.2.3 4 Acceptledger format or brackets as workings Calculate: Proceeds from sale of fixed assets WORKINGS ANSWER v v v v 588 000 8 865 000 — 1 360 000 + 785 000 — 8 878 000 one part correct OR one mark — onemark = one mark —_ one mark 8 878 000 + 1 360 000 — 785 000 — 8 865 000 5 Accept ledger format, brackets as workings or fixed asset note format Copyright reserved Please turn over

2.4.4. 2.5 Rawintogded from Stanmorepkysics.com NMM/March/2023 Grade: 12 (Marking guideline) Calculate: Funds used for the repurchase of shares WORKINGS ANSWER one mark 273 000 20000xR13,65 OR 182000 + 91000 one part correct v v 20000x9,10 20000 x 4,55 2 Calculate the net change in cash and cash equivalents. Net change in cash and cash equivalents 342 000 i* Cash and cash equivalents at the beginning 222 000 (28 000 Y— 250 000) ( ) Cash and cash equivalents at the end 120 000 ri TOTAL MARKS 45 Copyright reserved Please turn over