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
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Accounting /P1 2 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
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Accounting /P1 3 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)
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Accounting /P1 4 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)
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Accounting /P1 5 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
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Accounting /P1 6 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
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Accounting /P1 7 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.
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Accounting /P1 8 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
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Accounting /P1 9 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
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Accounting /P1 10 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
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Accounting /P1 11 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
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Accounting /P1 12 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
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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
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