Name:

NATIONAL
SENIOR CERTIFICATE

GRADE 11

NOVEMBER 2019

ACCOUNTING P2
ANSWER BOOK

MAXIMUM MARKS MODERATED

QUESTION
MARKS OBTAINED MARKS
1 35

2 45

3 50

4 20

150

*IACABE2*

This answer book consists of 11 pages.

2 ACCOUNTING P2 (EC/NOVEMBER 2019)

QUESTION 1: BANK RECONCILIATION AND CREDITORS RECONCILIATION

1.1.1 List TWO reasons for preparing the Bank Reconciliation Statement as
an internal control process.

1.1.2 State the adjustment that would be made to the figures on the financial
statements on 30 June 2019, end of financial year in respect of the
post-dated cheques issued. Refer to the Bank Reconciliation
Statement for June 2019. Include actual figures in your answer.

1.1.3 ITEM CRJ CPJ NO ENTRY

Item 1 X
Item 2
Item 3 c
Item 4
Item 5
Item 6
Item 7
Item 8
Item 9 9

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3 ACCOUNTING P2 (EC/NOVEMBER 2019)

1.1.4 Bank Reconciliation Statement on 31 July 2019

Debit Credit

1.1.5 In August 2019 the internal auditor discovered that the outstanding
deposit of R20 500 on the Bank Reconciliation Statement on
31 July 2019 appeared as R5 500 on the Bank Statement (Item 3).
The amount on the Bank Statement is correct. List ONE concern
that you have as internal auditor. Provide ONE suitable control
measure to prevent this from happening in future. Explain fully.

CONCERN CONTROL MEASURE

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4 ACCOUNTING P2 (EC/NOVEMBER 2019)

1.2.1 Why should the balance of the Creditors’ Control account

correspond with the total of the Creditors’ List?

1.2.2 Calculate the correct balances of the Creditors’ Control account

and the Creditors’ List.

Creditors’ Creditors’ List

Control
(a) Incorrect balance/total 49 560 36 410

(b)

(c)

(d)

(e)

Balance/Total
8

35

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5 ACCOUNTING P2 (EC/NOVEMBER 2019)

QUESTION 2: MANUFACTURING

2.1 Match the description from COLUMN B to the concept in COLUMN

A. Write only the letter (A–E) next to the question number (2.1.1–
2.1.4) in the ANSWER BOOK.

2.1.1
2.1.2
2.1.3
2.1.4
4
2.2 Calculate the Direct material cost

4
Calculate the correct Factory Overhead Cost.

FACTORY OVERHEAD COST:

Incorrect Factory Overhead Cost 350 000

Factory Overhead Cost for the Year

8

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6 ACCOUNTING P2 (EC/NOVEMBER 2019)

2.3 GENERAL LEDGER OF 4’ OCEAN TRADERS

WORK-IN-PROCESS STOCK ACCOUNT

10

2.4 Calculate the following:

2.4.1 Selling price per unit:

2.4.2 Cost of sales:

2.4.3 Variable costs per unit

2.4.4 Break-even point

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7 ACCOUNTING P2 (EC/NOVEMBER 2019)

2.5 4’ Ocean Traders anticipates that demand will increase in the next
financial year to 600 000 units. They aim to increase the number of
units produced to meet this demand. They expect fixed costs to
remain unchanged.
2.5.1 Explain what you understand by the term “break-even point”.

2
2.5.2 Explain the effect that the above decision will have on the fixed cost per
unit and the break-even point.
FIXED COST PER UNIT:

BREAK-EVEN POINT:

45

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8 ACCOUNTING P2 (EC/NOVEMBER 2019)

QUESTION 3: CASH BUDGETS AND FIXED ASSETS

3.1.1 Explain why a business needs to prepare a Cash Budget every year.

3.1.2 Calculate the expected receipts from debtors for November 2019.

3.1.3 Calculate the figures indicated by A–E in the Cash Budget.

A
B
C
D
E 5

3.1.4 The rent income increased by 8% from 1 November 2019. Calculate the
rent income figure for November 2019.

3.1.5 In your opinion, is EmmaLee’s capital contribution in November 2019

sufficient to support this business venture? Provide ONE reason with
figures to support your answer.

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9 ACCOUNTING P2 (EC/NOVEMBER 2019)

3.1.6 Calculate the percentage increase granted to the employees from

1 November 2019.

In your opinion, will the employees be satisfied with this increase?

Briefly explain.

3.1.7 As the internal auditor you discovered that the actual motor vehicle
expenses for October 2019 were R5 420. Name TWO points that you
would include in your internal auditors' report to EmmaLee.

3.1.8 Calculate the interest payable to Eastbank in December 2019.

Calculate the monthly repayments of the capital portion of the loan to

Eastbank.

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10 ACCOUNTING P2 (EC/NOVEMBER 2019)

3.2.1 ASSET DISPOSAL

2018 2018
31 31
Dec Dec

3.2.2 Note to the Balance Sheet on 28 February 2019

Land and
FIXED ASSETS Vehicles Equipment
buildings
Carrying value beginning of 330 000 435 000
year

Cost 900 000 615 000

Accumulated depreciation 0 (570 000)

Movements

Additions at cost 230 000 300 000

Disposal at carrying value 0 (72 000) 0
Depreciation 0 (64 000)

Carrying value end of year 1 580 000 500 000

Cost 1 580 000 1 076 000

Accumulated depreciation 0 (270 000) 10

50

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11 ACCOUNTING P2 (EC/NOVEMBER 2019)

QUESTION 4: FINANCIAL INDICATORS IN WORKING CAPITAL

4.1.1 Gross profit percentage on cost of sales (mark-up %)

4.1.2 Average stock turnover rate

4.1.3 Debtors Collection Period

4.2 Comment on the profitability of the business for this financial year.
Give TWO reasons why they may not have achieved their intended
mark-up of 50%.

4.3 The bookkeeper is satisfied that the business’ liquidity has improved
and there is money to manage their short term commitments.
Mention TWO indicators, with figures, that prove this.
4

20

TOTAL: 150

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