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2023 Accounting Grade 11 Project - MG(2)

The document outlines the marking guidelines for the Grade 11 Accounting Term 2 project for 2023, detailing the distribution of marks across two main questions: the Statement of Comprehensive Income and Internal Control and Statement of Financial Position. It includes specific questions, marking criteria, and sample answers for various accounting concepts. The total marks for the project are 100, with adjustments noted for learners who wrote before the release of errata.

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mehreenkhan1807
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11 views4 pages

2023 Accounting Grade 11 Project - MG(2)

The document outlines the marking guidelines for the Grade 11 Accounting Term 2 project for 2023, detailing the distribution of marks across two main questions: the Statement of Comprehensive Income and Internal Control and Statement of Financial Position. It includes specific questions, marking criteria, and sample answers for various accounting concepts. The total marks for the project are 100, with adjustments noted for learners who wrote before the release of errata.

Uploaded by

mehreenkhan1807
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ACCOUNTING GRADE 11

MARKING GUIDELINES
TERM 2
PROJECT
2023

QUESTION TOPIC MARKS


1 Statement of Comprehensive Income 68

2 Internal Control and Statement of Financial 32


Position
Total 100

These marking guidelines consist of 4 pages.

NOTE: Learners who wrote before the release of errata, their question one will be marked out
of 66. The total marks would be 98 (66+32).
2

QUESTION 1

1.1.1 Define the term “legal entity”.


Allocate one mark for partially correct answer
A legal entity is a business or organization that has legal rights and
responsibilities. It is a business that can enter contracts either as a buyer or
a supplier and can sue or be sued in a court of law. 2

1.1.2 Name and explain THREE key components that should be included in the
partnership agreement.
Any three
Key components  Explanations 
Partnership’s name
The first page of the contract reflects the business name, its purpose, and
the names of partners.
Allocation of profits and losses
It is stated in the contract how the profits and losses of the business are
divided between the partners.
Ownership
All business partnership contracts should outline how the ownership of the
company is divided.
Authority
The decision-making structure must be included the partnership
agreement. It refers to powers conferred or awarded to each partner by the
provisions of the Partnership Act. Each partner should be able to make
decisions based on the size of their investment in the partnership.
Contribution
The partnership agreement sets out the amount of capital each partner has
contributed. Contributions will include capital contribution, assets, expertise
and labour.
Workload
Division of work between partners – some partners choose to divide the
tasks equally, while others assign proportionally more tasks to one partner
who perhaps has a less demanding career or a greater desire.
Compensation
The partners share the profits and the losses from the business. The
profits are distributed to the partners after they have paid all the expenses
of running a business. Some partners may receive a salary for their labour
in addition to their share of partnership profits. 6

1.1.2
GAAP PRINCIPLES
A Historical 
B Going concern  
2

2023 Accounting Grade 11 Project Marking Guidelines


3

1.2 STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 28


FEBRUARY 2023 - PRO SOUND TRADERS
Sales (2 230 000 – 11 500) ✓✓2 218 500
Cost of sales ✓ (1 125 000)
Gross profit 1 093 500
Other operating income 125 225
Discount received 1 775
Commission income (10 600 + 900) ✓✓ 11 500
Rent income (117 700✓ – 9 700✓✓)  108 000
Profit on sale of assets (41 000✓–15 000✓+1 950✓✓– 25 500✓)  1 450
Bad debts recovered ✓ 2 500
Gross operating income 1 218 725
Operating expenses  (899 000)
Discount allowed 1 700
Bank charges 6 620
Advertising 13 640
Water and electricity 77 100
Packing Material (15 200 – 2 200)  13 000
Trading Stock Deficit (1 227 000  - 6 000✓ – 1 200 000✓)  21 000
Trading stock loss (6 000 × 30%)  1 800
Bad debts (2 000 + 1 230)  ✓ 3 230
Provision for bad debts adjustment  190
Wi-Fi (42 400 + 3 200) ✓✓45 600
Insurance (4 080 ✓– 260✓✓)  3 820
Salaries and wages (440 000✓+23 400✓✓+ 2 457# + 250✓)  466 107
Depreciation (193 700 ✓ + 2 100✓+1 950✓ or 4 050 2 marks)  197 750
Sundry expense  47 443
Operating profit 319 725
Interest income (3 300+1 630)  4 930
Profit before interest expense  324 655
Interest expense (230✓✓+ 70 000✓✓)  (70 230)
Net profit for the year  254 425

58

TOTAL MARKS

68

2023 Accounting Grade 11 Project Marking Guidelines


4

QUESTION 2: INTERNAL CONTROL AND STATEMENT OF FINANCIAL POSITION

2.1 Explain ONE problem presented in the extract or information.


P Shaun is in charge of too many responsibilities,the business is at the risk
of being defrauded.  2

2.2 Suggest ONE control measure that should be implemented to solve


the problem identified.
2
Division of duties  appoint different people to do different aspects of the
job. 

2.3 CK TRADERS
STATEMENT OF FINANCIAL POSITION ON 28 FEBRUARY 2023
ASSETS
NON-CURRENT ASSETS  3 789 00
Tangible assets 3 429 000
Fixed deposit: Denlyn Bank @ 8% (440 000 – 80 000)   360 000
CURRENT ASSETS  1 014 000
Inventories  608 400
Trade and other receivables  317 600
Cash and cash equivalents (80 000+ 5 000 + 3000)  88 000
TOTAL ASSETS  4 803 000

EQUITY & LIABILITIES


Partners’ Equity 3 580 000
Capital (1000 000 +1 940 000 – 200 000  +100 000) 2 840 000
Current accounts   740 000
NON-CURRENT LIABILITIES 716 000
Loan (773 000  - 57 000)  716 000
CURRENT LIABILITIES  507 000
Trade & other payables  280 000
Short term loan  57 000
Bank overdraft 170 000
TOTAL EQUITY & LIABILITIES  4 803 000 28

TOTAL MARKS

32

2023 Accounting Grade 11 Project Marking Guidelines

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