Name:
NATIONAL
SENIOR CERTIFICATE
GRADE 12
JUNE 2024
ACCOUNTING P1
ANSWER BOOK
MAX. MARKS MODERATED MARKS
QUESTION
MARKS OBTAINED School District Province
1 50
2 45
3 40
4 15
150
This answer book consists of 10 pages.
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2 ACCOUNTING P1 (ANSWER BOOK) (EC/JUNE 2024)
QUESTION 1
1.1 1.1.1
1.1.2
1.1.3
1.1.4 4
1.2.1 Calculate: The value of closing stock
WORKINGS ANSWER
1.2.2 Calculate the correct net profit after tax for the year ended
29 February 2024. Indicate ‘+’ for increase and ‘–’ for decrease at each
adjusted amount.
No. WORKINGS ANSWER
Incorrect Net Profit before tax 3 609 320
Income tax
Correct Net Profit after tax 14
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(EC/JUNE 2024) ACCOUNTING P1 (ANSWER BOOK) 3
1.2.3 LIYABONA LTD
STATEMENT OF FINANCIAL POSITION ON 29 FEBRUARY 2024
ASSETS
NON-CURRENT ASSETS
Fixed assets
Financial assets
CURRENT ASSETS
Inventories
(1 350 000
Trade and other receivables
(889 500
Cash and cash equivalents
(704 249
TOTAL ASSETS
EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Ordinary share capital
Retained income
NON-CURRENT LIABILITIES
Loan: Naties Bank
CURRENT LIABILITIES
Trade and other payables
(843 750
TOTAL EQUITY AND LIABILITIES
29
TOTAL MARKS 50
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4 ACCOUNTING P1 (ANSWER BOOK) (EC/JUNE 2024)
QUESTION 2
2.1 2.1.1
2.1.2
2.1.3
3
2.2 MIMOSOA LTD
2.2.1 Cash Flow Statement for the year ended 30 September 2023
CASH EFFECTS OF OPERATING ACTIVITIES
Cash generated from operations 2 229 940
Interest paid (195 750)
Taxation paid
Dividends paid
CASH EFFECTS OF INVESTING ACTIVITIES
CASH FLOWS OF FINANCING ACTIVITIES
NET CHANGE IN CASH AND CASH EQUIVALENTS
Cash (balance at the beginning of the year)
Cash (balance at the end of the year)
25
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(EC/JUNE 2024) ACCOUNTING P1 (ANSWER BOOK) 5
2.2.2 RETAINED INCOME NOTE
Balance on 1 October 2022 914 020
Ordinary share dividends
Balance on 30 September 2023 8
2.2.3 The directors issued more shares to improve the cash flow. Thandi
Manning, a shareholder, was against the decision and has raised her
concerns at the AGM.
Provide a reason for Thandi’s opinion.
2.2.4 Calculate: Debt-equity ratio
WORKINGS ANSWER
3
Calculate: Acid test ratio
WORKINGS ANSWER
TOTAL MARKS 45
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6 ACCOUNTING P1 (ANSWER BOOK) (EC/JUNE 2024)
QUESTION 3
3.1 Purchase of shares:
Explain why directors should be interested in the price of their
companies’ shares on the JSE.
2
Calculate the number of additional shares in Mabhabs Ltd that Tiger was
able to buy on the JSE in 2023.
3
Comment on the price that Tiger paid for the shares in each company and
give TWO reasons why he might have been satisfied to pay the price.
3.2 Dividends, earnings and returns:
Explain your opinion on which company has the better dividend pay-out
policy. Give comparative figures.
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(EC/JUNE 2024) ACCOUNTING P1 (ANSWER BOOK) 7
Compare and comment on the % return on equity earned by each
company.
4
Tiger feels that the earnings per share (EPS) of Landa Ltd is much better
than that of Mabhabs Ltd. Explain why he feels this way.
3.3 Mabhabs Ltd was negatively affected more than Landa Ltd by the poor
economy.
(a) Explain TWO decisions taken by the directors of Mabhabs Ltd in response
to the state of the economy, and how these decisions will affect the
company in future.
Decision Effect on the company
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8 ACCOUNTING P1 (ANSWER BOOK) (EC/JUNE 2024)
(b) Explain TWO decisions taken by the directors of Landa Ltd that affect risk
and gearing. Quote and comment on TWO financial indicators.
TOTAL MARKS 40
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(EC/JUNE 2024) ACCOUNTING P1 (ANSWER BOOK) 9
QUESTION 4
4.1 Provide TWO consequences of neglecting the expectations of the
stakeholders by the company.
4.2 Choose the audit opinion from COLUMN B that describes the audit report in
COLUMN A. Write only the letter (A–C) next to the question numbers
(4.2.1–4.2.3) in the ANSWER BOOK.
4.2.1
4.2.2
4.2.3
3
4.3 (a) Which type of audit report will encourage shareholders to buy shares
in a company?
1
(b) Explain why it is important for an independent auditor to be a member
of a professional body.
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10 ACCOUNTING P1 (ANSWER BOOK) (EC/JUNE 2024)
4.4 Explain the role of the remunerations committee. Give THREE points.
TOTAL MARKS 15
TOTAL: 150
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