NATIONAL

SENIOR CERTIFICATE

GRADE 11

NOVEMBER 2022
ACCOUNTING P2
MARKING GUIDELINE
MARKS: 150
MARKING PRINCIPLES:
1. Unless otherwise stated in the marking guidelines, penalties for foreign items are applied only if the
candidate is not losing marks elsewhere in the question for that item (no penalty for misplaced item).
No double penalty applied.
2. Penalties for placement or poor presentation (e.g. details) are applied only if the candidate is earning
marks on the figures for that item.
3. Full marks for correct answer. If answer incorrect, mark the workings provided.
4. 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). NOTE: if figures are stipulated in the marking guideline
for components of workings, these do not carry the method mark for final answer as well.
5. 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.
6. Where indicated, part-marks may be awarded to differentiate between differing qualities of answers
from candidates.
7. This memorandum is not for public distribution; as certain items might imply incorrect treatment. The
adjustments made are due to nuances in certain questions.
8. Where penalties are applied, the marks for that section of the question cannot be a final negative.
9. Where method marks are awarded for operation, the marker must inspect the reasonableness of the
answer.
10. Operation means 'check operation'. 'One part correct' means operation and one part correct.
NOTE: check operation must be +, -, x, ÷, or per the marking guideline.
11. In calculations, do not award marks for workings if numerator and denominator are swapped – this
also applies to ratios.
12. 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 .
13. Be aware of candidates who provide valid alternatives beyond the marking guideline. Note that one
comment could contain different aspects.
14. Codes: f = foreign item; p = placement/presentation.

This marking guideline consists of 8 pages.

2 ACCOUNTING P2 (EC/NOVEMBER 2022)

QUESTION 1

1.1.1 State THREE advantages of using electronic funds transfers (EFTs).

Any THREE of:   

Safe / convenient / quick and easy / Can be done outside banking hours /
less time consuming (no queues) / lower charges / instant feedback.
3

1.1.2 Explain TWO aspects of the business environment that Beauty had to
change or adapt to implement this system and to ensure that it functions
effectively.

TWO valid points   part marks for incomplete / unclear response

• Ensure that she has an up-to date computer system.

• Internet connectivity (data)
• Training for an employee / or employ a qualified person
• New rules and procedures (internal controls).
• Delegating authority / added supervision
• New / revised documents (stationery) to record details of EFTs (in/out) 4

1.1.3 UPDATING THE CASH JOURNALS:

CASH RECEIPTS JOURNAL CASH PAYMENTS JOURNAL

DETAILS OF
DETAILS OF
AMOUNT SUNDRY AMOUNT
SUNDRY ACCOUNT
ACCOUNT
Total b/f 113 800 Total b/f 98 400
Rent income  8 200  Rates and taxes  2 180 
Bank charges 
Debtor’s control  3 320  350 
(195 + 155)
Trading stock  12 300 
Interest on overdraft  210 
Insurance  1 340 
Drawings  630 

125 320  115 410 

20

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(EC/NOVEMBER 2022) ACCOUNTING P2 3

1.2 CREDITORS RECONCILIATION

Reconciling the Creditors Ledger account with the Statement

CREDITORS LEDGER
STATEMENT FROM VUYI
Nr. ACCOUNT OF VUYI
SUPPLIERS
SUPPLIERS
Balance 41 680 26 070
A + 4 500 
B – 1 680 
C + 200  – 400 
D – 7 600 
E – 950 
F + 3 380 

TOTAL 32 600 * 32 600

13

*One part correct; must include the opening balance; can be different totals

Q1 40

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4 ACCOUNTING P2 (EC/NOVEMBER 2022)

QUESTION 2

2.1.1 Calculate:

Direct material cost

WORKINGS ANSWER

27 500 + 263 400 – 9 200 + 7 500 – 33 200 256 000 

     one part correct

Accept alternative formats of presentations, including a ledger account

6
Direct labour cost
WORKINGS ANSWER
(5 x 1 520 x 30) (420 x 48 ) (10% x 248 160)
228 000 + 20 160 + 24 816 272 976 
   one part correct

Accept alternative formats of presentations, including a ledger account.

7

2.1.2 FACTORY OVERHEAD COST

TOTAL BROUGHT FORWARD 106 760

Indirect material – 3 800 
Water and electricity
+ 4 440 
26 640  – 22 200 
Rent expense
– 32 400 
43 200  – 75 600 

TOTAL 75 000 
9

2.1.3 GENERAL LEDGER OF MAHLAPE MANUFACTURERS

WORK-IN-PROGRESS STOCK ACCOUNT
2020 2021 Finished goods stock 
Mar
1 Balance b/d 23 444 ✓ Feb 28
Balancing figure
600 000 *
2021
Feb
28 Direct material cost 256 000  Balance c/d 27 420 ✓
Direct labour cost 272 976 
Factory overhead
cost
75 000 

627 420 627 420

2021
Mar
1 Balance b/d 27 420 ✓ *one part correct

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(EC/NOVEMBER 2022) ACCOUNTING P2 5

2.2 MELINDA’S TOY SHOP

2.2.1 Calculate the break-even point for the year ended 30 June 2021.

60 000  = 1 500 units 

125  – 85 
40 two marks
4

2.2.2 Explain whether Melinda should be satisfied with the level of

production achieved for this financial year. Quote figures.

Comment on production and BEP  figures 

The business produced 2 000 units which is 500 more than the BEP /
Melinda should be satisfied because she is making a profit on 500 units.
3

2.2.3 Melinda is concerned about the control over the direct labour cost per
unit.
Explain why she may be concerned. Quote figures.

Increase in direct labour from R22 to R32 per unit  OR

DLC per unit increased by 45,5% but production increased by 33,3%.
2
Provide ONE suggestion on how she can improve the control over this
cost.

Any ONE suggestion 

Improve the monitoring / supervision

Set targets to be completed within normal time
Provide more training
1

Q2 40

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6 ACCOUNTING P2 (EC/NOVEMBER 2022)

QUESTION 3

3.1 DEBTORS COLLECTION SCHEDULE

Month Credit sales OCTOBER NOVEMBER DECEMBER
* 88 200
SEPTEMBER 490 000 196 000

OCTOBER 504 000 191 520 201 600 90 720
*183 540 *193 200
NOVEMBER 483 000
 
DECEMBER *518 000  196 840
473 340 480 760
RECEIPTS FROM DEBTORS
  9

3.2 EXTRACT: Cash Budget for the budget period ended 31 December 2021
RECEIPTS NOVEMBER DECEMBER
Cash sales 204 000 222 000 
Cash from debtors 473 340  480 760 
Rent income 9 500 10 260 
Interest on fixed deposit 0 3 200 
Loan: Rao Bank 186 000 

TOTAL RECEIPTS 712 000 833 000

PAYMENTS
Payment to creditors (for stock) 480 000 460 000 
Insurance 2 500  2 625
Other operating expenses 8 700  6 200
Drawings 7 300 3 500 
Interest on loan 1 705
Salaries and wages 52 500 56 175

TOTAL PAYMENTS 802 000 777 000

SURPLUS/DEFICIT (90 000)  56 000 

OPENING BALANCE IN BANK 123 000 33 000 
CLOSING BALANCE IN BANK 33 000  89 000  22

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 (EC/NOVEMBER 2022) ACCOUNTING P2 7

3.3.1 Calculate: Amount of the loan in December 2021

1 705  x 12  = 186 000  one part correct

11% 

4
3.3.2 Calculate: the percentage increase in salaries and wages.

3 675 two marks

56 175  – 52 500  x 100 = 7%  one part correct
52 500 ✓

3.4 Provide Shirley with TWO suggestions on how she can ensure that only
reliable people are granted credit, and TWO ways to improve collections
from debtors.

SUGGESTIONS: Any TWO suggestions   accept short statements

• Credit check to check creditworthiness.

• Check references such as places where they buy on credit
• Check employment history
• Postal and residential address
• ID document
• Bank statement 2

WAYS TO IMPROVE COLLECTIONS FROM DEBTORS

TWO valid control measures   part marks for incomplete / partial answers

• Send statements / reminders regularly, and on time

• Offer discounts or other incentives for early payments
• Charge interest on overdue accounts
• Do not allow more credit unless accounts are settled
• Encourage debtors to use EFTs or debit orders for monthly payments
4

Q3 45

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8 ACCOUNTING P2 (EC/NOVEMBER 2022)

QUESTION 4

4.1 Calculate: Total depreciation on vehicles

1 260 000 x 20% = 252 000 
340 000  x 20% x 9/12  = 51 000 
Total = 303 000  6
Calculate: Total depreciation on equipment
(115 000 – 84 200)  x 15% x 10/12  = 3 850 
(517 000 – 280 800 ) x 15% = 35 430 
Total = 39 280  7

4.2 Malusi wants to sell two of the delivery vehicles, and replace them with
a later model, bigger truck. His wife feels that this is not a good idea.
4.2.1 Provide TWO possible reasons that Malusi can use to convince his wife
that this is a good decision.
TWO reasons   part marks for partial / incomplete statements

• The vehicles are old and require a lot of money for maintenance.
• Repairs are also escalating as parts are overworked.
• Vehicles have reached it useful life (residual value / fully depreciated)
• Will not be able to get a good trade-in in the future. 4
4.2.2 Provide ONE reason in support of his wife’s feelings.
ONE Reason  part marks for partial / incomplete statements
• Economy is bad and sales are dropping / vehicle would not be productive
• Getting into debt is not good for the business
• Vehicles could be used for shorter routes 2

4.3 Identify TWO problems from the information provided. Quote figures. In
each case, provide a solution to the problem identified.
PROBLEM   SOLUTION
figure    
Drivers are getting an increase of Change contracts to commission
R3 850 or 5% yet sales have based
dropped
Repair and maintenance is a fixed Outsource the vehicles to other
amount at R76 800, even though suppliers to get more income
the vehicles are not working at full
capacity
Petrol and oil decreased by 2,25% Put a tracking device on vehicles /
but sales decreased by 15% keep mileage to discourage drivers
from misusing the vehicles 6

Q4 25
TOTAL: 150

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