Accounting 1 June 2024

Grade 11 P2

LYTTELTON MANOR HIGH SCHOOL

ACCOUNTING

GRADE: 11
TASK: 4.2
YEAR: 2024
MARKS: 150
TIME: 2 hours
JUNE: Paper 2

EXAMINER: MRS K.LUKHELE

MODERATOR: MR G.HAMILTON AND MRS E.GOUWS

This question paper consists of 10 pages, including this one.

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Accounting – Grade 11 P2 2 June 2024
INSTRUCTIONS AND INFORMATION
Read the following instructions carefully and follow them precisely.

1. Answer ALL the questions.

2. A special ANSWER BOOK is provided in which to answer ALL the questions.
3. Show ALL workings to earn part-marks.
4. You may use a non-programmable calculator.
5. You may use a dark pencil or blue/black ink to answer the questions.
6. Where applicable, show all calculations to ONE decimal point.
7. Write neatly and legibly.
8. If you choose to do so, you may use the financial indicator formula sheet
which is attached at the end of this question paper. Use of this formula sheet
is not compulsory.

9. Use the information in the table below as a guide when answering the question
paper. Try NOT to deviate from it.

QUESTION TOPI MARKS MINUTES

C

1 Bank Reconciliation Statement 60 50

2 Creditors Reconciliation Statement 20 15

3 Fixed assets 50 40

3 Ratios and Interpretations 20 15

TOTAL 150 120

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 Accounting – Grade 11 P2 3 June 2024

QUESTION 1: BANK RECONCILIATIONS (60 marks; 50

minutes)

1.1 Indicate whether the statements below are TRUE or FALSE. Write only
TRUE or FALSE next to the question number (1.1.1–1.1.5) in the
ANSWER BOOK.
1.1.1 A unfavourable balance on the bank account appears on the
credit side in the Ledger account.
1.1.2 Payments made using an EFT is a safe way of payment
1.1.3 Interest credited on the bank statement must be recorded in the
Cash Payment Journal.
1.1.4 Errors made by the bank are corrected in the Journals.
1.1.5 An unfavourable balance on the bank statement appears on the
debit side of the Reconciliation statement. (5)

1.2 SIX GUN STORES

The following information relates to Six Gun Stores for April 2024.
The business uses the bank statement which is received on the 26 th of
each month.
REQUIRED:

1.2.1 Complete the Cash Journals for April 2024. (34)

1.2.2 Calculate the Bank Account balance in the General Ledger of the
business on 30 April 2024. (4)
1.2.3 Prepare the Bank Reconciliation Statement on 30 April 2024. (11)
1.2.4 Explain THTEE strategies that the business can use to address the
problem of missing cash. (6)
INFORMATION:

A Extract from the Bank Reconciliation statement on 31 March 2024

.

Outstanding deposits: 19 March 2024 R33 200

24 March 2024 10 200
Outstanding EFT: No. 321 9 765
No. 322 5 678
Favourable balance as per Bank account 13 912

NOTE:
 The outstanding deposit of R33 200 and EFT 322 for R5 678
appeared on the April 2024 bank statement.
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Accounting – Grade 11 P2 4 June 2024

 The outstanding deposit of R10 200 on the Bank Reconciliation

Statement was in respect of sales. It did not appear on the
Bank Statement for April. After investigation by the business
they discover that the bookkeeper has not deposited the
money. He is not working for the business anymore. It was
decided to write-off the deposit as a loss.
 EFT 321 was correctly reflected as R7 965 on the April Bank
Statement. This was for the purchasing of trading stock.

B. Provisional totals from the Cash Journals on 30 April 2024:

 Cash Receipt Journal, R125 600
 Cash Payment Journal, R131 300

C. The following information on the April 2024 Bank Statement

received from Snap Bank did not appear in the April 2024 Cash
Journals:
 Debit orders:
 A debit order for R6 955 was wrongly reflected on the Bank
Statement. It was not a payment authorised by Six Gun Stores.
The bank will rectify the error in May.
 MNT for R5 600 for the telephone cost of the business
 A deposit from N. Naidoo, R15 400, for his monthly rent.
 Quick Insurers, R9 800 (R7 300 for the business and the rest
for partner personal vehicle.)
 An EFT payment to BC Traders, R7 900 as partial payment of
our account.
 EFT Fees, R412
 Cash handling fee, R156
 Service Fees, R252
 Interest on fixed deposit, R366.
 Credit interest on bank statement, R169
 A direct deposit of R4 790 was wrongly reflected on the
business Bank Statement. The bank will rectify the error in
June.
 A deposit from P. Patriot for R7 500 for settlement of his account
of R7 770.

E. The owner withdrew R13 500 from an ATM to pay wages on 29

April 2024, but did not inform the bookkeeper.

F. The following information in the April 2024 Cash Journals did not
appear on the Bank Statement for April 2024:
 Outstanding deposit, R12 680
 EFT 636 for R9 655.

60
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 Accounting – Grade 11 P2 5 June 2024

QUESTION 2: CREDITORS' RECONCILIATION (20 marks; 15 minutes)

2.1 Willow Traders buys goods on credit from Mienkie Stores.

REQUIRED:

2.1. Briefly explain how the preparation of a creditors’ reconciliation as an

1 internal control measure can assist the business in managing their creditors
effectively. Provide TWO points (2)

2.1. Use the table provided to indicate the changes that must be made:
2  In the Creditors' Ledger Account in the books of Willow Traders (14
In the Creditors' Reconciliation Statement on 29 February 2024 )

2.1. An investigation into the transaction on 2 February 2024 for Invoice 560
3 revealed that Sakkie Skelm (purchasing manager) ordered goods for
himself. These goods were not taken into stock.

State TWO internal control measures that the business can use to prevent
similar incidents from happening in future. (4)

INFORMATION:

A. Creditors' Ledger of Willow Traders

Mienkie Stores
DATE DETAILS FOL. DEBIT CREDIT BALANCE
2024
Feb. 01 Balance b/d 62 200
02 Invoice 520 CJ 44 200 106 400
04 Debit Note 52 CAJ 2 700 103 700
07 EFT 443 CPJ 31 350 72 350
Discount received CPJ 3 300 69 050
20 Invoice 238 CJ 21 100 90 150
23 EFT 575 CPJ 13 200 76 950
24 Invoice 599 CJ 24 000 100 950
28 EFT 580 CPJ 13 900 87 150
Discount received CPJ 1 280 85 770
29 Invoice 592 CJ 44 700 130 470

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Accounting – Grade 11 P2 6 June 2024

B. Statement of account received from Mienkie Stores

MIENKIE STORES No. 1543
211 Calla street
Parys 9 300

Debtor: Willow Traders 25 February 2024

DATE DETAILS DEBIT CREDIT BALANCE
Jan. 25 Balance 77 200
28 Receipt 110 15 000 62 200
Feb. 02 Invoice 520 49 200 111 400
04 Credit Note 9 2 700 114 100
07 Receipt 122 31 350 82 750
Discount allowed 1 650 81 100
18 Invoice 581 38 800 119 900
23 Receipt 138 13 200 106 700
24 Invoice 599 21 600 128 300
25 Delivery charges 3 600 131 900

C. An investigation revealed the following errors and omissions:

(a) Invoice 238 was for goods that Willow Traders bought from
another supplier, Mashiane Suppliers.

(b) Invoice 520 was recorded correctly on the statement of account.

(c) Invoice 581 was an error on the statement. This was for goods
supplied to another business.

(d) The discount allowed on 7 February 2024 is correct as per the

statement of account.

(e) Willow Traders omitted to deduct the trade discount allowed on

Invoice 599.

(f) Goods for R2 700 were returned by Willow Traders to Mienkie

Stores on 4 February 2024.

(g) In terms of the contract Mienkie Stores charges a delivery fee to

all its customers.

(h) The statement of account only includes transactions up to

25 February 2024.

20

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 Accounting – Grade 11 P2 7 June 2024

QUESTION 3: FIXED ASSETS AND ASSET DISPOSALS (50 marks; 40 minutes)

3.1 CONCEPTS

Choose the correct word(s) from those given in brackets. Write only the word(s)
next to the question numbers (3.1.1 to 3.1.4) in the ANSWER BOOK.
3.1.1 The contra account in the Asset disposal account when an asset is sold
on credit is the (debtors/creditors) control.
3.1.2 The (asset disposal/trading) account is where the sale of an asset is
recorded, and the profit or loss are determined.
3.1.3 All fixed assets were recorded in a (asset register/liability register).

3.1.4 (Depreciation/insurance) is written off from an asset on an annual basis. (4)

3.2 MAVISLINDE STORES

The following information relates to Mavislinde Stores. The financial year

ended on 29 February 2024. (Partners M. Mavis and L. Linde)
REQUIRED:

3.2.1 Explain why the asset register is an important document for internal
control. Provide TWO reasons. (4)
3.2.2 Prepare the asset disposal account in the General Ledger of the
business. (11)
3.2.3 L. Linde decided to buy the equipment for R2 000 without informing his
partner. Explain the consequences that partner Linde could be facing. (4)
3.2.4 Calculate the following amounts:
 The balance of Land and building on 29 February 2024. (3)
 Total deprecation on vehicles on 29 February 2024. (8)
 The depreciation on the remaining equipment on 29 February 2024. (10)

3.2.5 Mention THREE procedures that the business can apply to improve
their internal control over the vehicles. (6)

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Accounting – Grade 11 P2 8 June 2024

INFORMATION:
A. Extract from Trial Balances on 29 February:
2024 2023
Balance Sheet accounts section R R
Land and buildings ? 4 800 000
Vehicle 1 596 000 876 000
Accumulated depreciation on vehicles ? 515 400
Equipment 510 000 480 000
Accumulated depreciation on equipment ? 180 000

B. Land and buildings:

A new storeroom was built during the year for R750 000.

C. Equipment:
The depreciation rate is 20% p.a. on the diminishing-balance method.
A laptop was sold on 1 December 2023 for R2 000 cash to partner
L. Linde. New equipment was purchased on 1 February 2024. The
fixed asset register reflected the following:

Fixed asset register:

Category: Laptop
Model: Predator
Date purchased: 1 March 2021
Cost price: R36 000
Depreciation rate: 20% on diminishing-balance method
Date Depreciation Carrying value
28 February 2022 R7 200 R28 800
28 February 2023 R5 760 R23 040
1 September 2023 ? ?

D. Vehicles:
Extract from the vehicle register:
Car 1 Car 2 Car 3
Purchase date 1/6/2018 1/3/2021 1/19/2023
Purchase price R300 000 R576 000 ?
Accumulated
depreciation 1/3/2023 R285 000 R230 400
 No vehicles were sold during the year.
 A new vehicle was purchased on 1 December 2023.
 Depreciation on vehicles is calculated at 20% p.a. on the cost price
method.

50

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 Accounting – Grade 11 P2 9 June 2024

QUESTION 4: ANAYLISES AND INTERPRETATIONS (20 marks; 15 minutes)

PETTIES VEGETABLE STORES

You are provided with the following information relating to Petties Vegetable Stores for
the year ended 29 February 2024. The shelf life of the product is 12 days.

REQUIRED:

4.1 Calculate the missing financial indicators for 2024:

 Mark-up percentage (3)
 Net profit on sales (3)
 Debtors’ average collection period (5)

4.2 The business decreases the mark-up percentage. Why was this strategy
successful? Quote ONE figure. (2)

4.3 Will the partners be satisfied with their Debtors collection period. Quote a figure
and comment. (3)

4.4 The partners are concerned about the stock holding period. Show the trend and
comment on it. (4)

INFORMATION
A 2024 2023
Sales 9 900 000 8 000 000
Gross profit 3 300 000 3 000 000
Operating expenses 1 980 000 1 920 000
Net profit 1 782 000 960 000
Stock 222 000 168 000
Debtors 95 000 85 000
Credit purchases 3 600 000 3 300 000

 10% of the sales were on credit.

B Financial indicators as on 28 February:
2024 2023
% Mark-up (i) 70%
% Operating expenses on sales 20% 24%
% Net profit on sales (ii) 12%
Debtors’ collection period (iii) 39 days
Stock holding period 18 days 9 days

20

TOTAL MARKS: 150

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Accounting – Grade 11 P2 10 June 2024

GRADE 11 ACCOUNTING FINANCIAL INDICATOR 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

Total earnings by partner X 100 Net profit X 100

Partner’s average equity 1 Average owners ‘equity 1

(Current assets – Inventories) : Current

Current assets : Current liabilities
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 inventories X 365 or 12 Cost of sales

Cost of sales 1 Average inventories

Non-current liabilities: Owners’ equity Total assets: Total liabilities

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 Accounting 1 June 2024
Grade 11 P2

TASK 4.2
LYTTELTON MANOR HIGH SCHOOL

LEARNER: ________________________________________________________

GRADE 11

ACCOUNTING
JUNE 2024
ANSWER BOOK

QUESTION MARKS INITIAL MODERATOR

TOTAL 150

This answer book consists of 7 pages.

QUESTION 1
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 Accounting – Grade 11 P2 2 June 2024

1.1 Indicate whether the following statements are TRUE or FALSE.

1.1.1
1.1.2
1.1.3
1.1.4
1.1.5
5

1.2. CASH RECEIPTS JOURNAL – APRIL 2024 CRJ

1 4
Doc Day Details Bank Amount Details
31 Total 125 600 125 600

16
CASH PAYMENTS JOURNAL – April 2024
CPJ 3
Doc Day Details Bank Amount Details
31 Total 131 300 131 000

18

1.2.2 Calculate the Bank Account balance in the General Ledger of the
business on 30 April 2024.

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 Accounting – Grade 11 P2 3 June 2024

1.2.3 Prepare a Bank Reconciliation Statement for April 2024:

Debit Credit

11

1.2.4 Explain THREE strategies that the business can use to address the
problem of missing cash.

TOTAL MARKS

60

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 Accounting – Grade 11 P2 4 June 2024
QUESTION 2

2.1 Briefly explain how the preparation of a creditors’ reconciliation as an

internal control measure can assist the business in managing their
creditors effectively. Provide TWO points.

2.2 CREDITORS' RECONCILIATION

CREDITORS' RECONCILIATION
CREDITORS' LEDGER
STATEMENT
Balance 130 470 131 900
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)

14

2.3 State TWO internal control measures that the business can use to
prevent similar incidents from happening in future.

TOTAL MARKS

20

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 Accounting – Grade 11 P2 5 June 2024
QUESTION 3:

3.1 Give the correct concept in each of the cases:

3.1.1
3.1.2
3.1.3
3.1.4 4

3.2.1 Explain why the asset register is an important document for internal
control. Provide TWO reasons.

3.2.2 ASSET DISPOSAL

11

3.2.3 L Linde decided to buy the equipment for R2 000 without

informing his partner. Explain the consequences that partner
Linde be facing.

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 Accounting – Grade 11 P2 6 June 2024

3.2.4 Calculate the following amounts

CALCULATION ANSWER
The balance of Land and building on 29 February 2024.

Total depreciation on vehicles on 29 February 2024:

Car 1

Car 2

Car 3

The depreciation on the remaining equipment on

29 February 2023.

21

3.2.5 Mention THREE procedures that the business can apply to improve
their internal control over the vehicles.

6
TOTAL MARKS

50

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 Accounting – Grade 11 P2 7 June 2024

QUESTION 4

4.1.1 Calculate the following financial indicators for 2024:

Mark-up percentage
WORKINGS ANSWER

Net profit on sales

WORKINGS ANSWER

3
Debtors’ average collection period
WORKINGS ANSWER

4.2 The business decreases the mark-up percentage. Why was this strategy
successful? Quote ONE figure.

4.3 Will the partners be satisfied with their Debtors collection period. Quote
a figure and comment.

4.4 The partners are concerned about the stock holding period. Show the
trend and comment on it.

TOTAL MARKS

20

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 Accounting – Grade 11 P2 8 June 2024

ACCOUNTING
GRADE 11
EXAM TASK 4.2
JUNE 2024
MARKING GUIDELINE
TOTAL: 150 MARKS

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. Unless otherwise stated, give full marks for correct answer. If answer is incorrect, mark workings.
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 memo 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. If candidates provide more that the required number of responses, inspect all responses to give benefit
to the candidate. Penalties may be applied for foreign entries if candidates earn full marks on a question.
8. This memorandum is not for public distribution; as certain items might imply incorrect treatment. The
adjustments made are due to nuances in certain questions.
9. Where penalties are applied, the marks for that section of the question cannot be a final negative.
10. Where method marks are awarded for operation, marker must inspect reasonableness of answer.
11. Operation means 'check operation'. 'One part correct' means operation and one part correct. Note: check
operation must be +, -, x, ÷, or per memo.
12. In calculations, do not award marks for workings if numerator & denominator are swapped – this also
applies to ratios.
13. 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 .
14. Be aware of candidates who provide valid alternatives beyond the marking guideline. Note that one
comment could contain different aspects.
15. Codes: f = foreign item; p = placement/presentation.

This marking guideline consists of 7 pages.

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 Accounting – Grade 11 P2 9 June 2024
QUESTION 1

1.1 Indicate whether the following statements are TRUE or FALSE.

1.1.1 True 

1.1.2 True 

1.1.3 False 

1.1.4 False 

1.1.5 True 
5

1.2. CASH RECEIPTS JOURNAL – APRIL 2024 CRJ

1 4
Do Day Details Bank Amount Details
c
31 Total 125 600 125 600
321 Bank 1 800 1 800 Trading stock
B/S J. Jacobs 15 000 15 000 Rent income 
B/S Snap Bank 169 169 Interest - curr acc
B/S Snap Bank 366 366 Interest on fixed deposit
B/S P. Patriot 7 500 7 500 Debtors Control
16
150 434* 150 434

CASH PAYMENTS JOURNAL – April 2024

CPJ 3
Doc Day Details Bank Amount Details
31 Total 131 300 131 000
B/S Sales 10 200 10 200 Loss due to fraud 
B/S MNT 5 600 5 600 Telephone 
B/S Quick 9 800 7 300 Insurance
Insurers 2 500 Drawings
B/S BC Traders 7 900 7 900 Creditors Control 
B/S Snap Bank 820 820 Bank charges
Cash 13 500 13 500 Wages 18
179 120* 179 120
* one part correct and include opening total

1.2. Calculate the Bank Account balance in the General Ledger of the
2 business on 30 April 2024.

+ 13 912 + 150 434  – 179 120  = – 14 774 one part correct

See CRJ See CPJ

4
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 Accounting – Grade 11 P2 10 June 2024

1.2.3 Prepare a Bank Reconciliation Statement for April 2024:

Debit Credit
Dr Balance according to bank 6 464  Balancing figure

statement
Cr. Outstanding deposit 12 680
Cr Debit orders wrongly debited 6 955

Dr amount wrongly credited 4 790 

Dr Outstanding EFT – 636 9 655 
ATM withdrawal for wages 13 500 
Cr. Balance according to the 14 774
bank account See 1.2.2

34 409  34 409
11
both figures must be the same

1.2.4 Explain THREE strategies that the business can use to address the
problem of missing cash.
Any THREE strategies    award part marks for incomplete / partial answers
Be alert to other valid alternative responses. Do not accept ‘instal cameras’.

 Receiving and banking of cash should be done by different people / divide or

delegate or rotate duties to prevent mismanagement of cash that can lead to
missing money or theft. Division of duties is an incomplete answer (one
mark).
 Request SMS notifications from the bank / check bank statements (mini
statements on App) regularly – ensure correct amounts deposited.
 Outsource the transportation of cash to security companies (large amounts).
 Accompany the person in charge of depositing cash / escorted by security
guard.
 Encourage customers to pay online (EFTs) / strive towards cashless or
minimal cash handling.
 Do deposits regularly, at different times, using different routes for security
purposes / train employees on security or emergency responses.
 Alarm systems or GPS tracking on vehicles used to transport cash.
 Background checks on staff involved with cash – reliable, trustworthy.
6

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 Accounting – Grade 11 P2 11 June 2024
QUESTION 2

2.1 Briefly explain how the preparation of a creditors’ reconciliation as an

internal control measure can assist the business in managing their
creditors effectively. Provide TWO points.
Any TWO relevant control measures  

 Errors and omissions can be detected and corrected.

 Fraud can be detected and minimised.
 The correct payment can be made to creditors. 2

2.2 CREDITORS' RECONCILIATION

CREDITORS' RECONCILIATION
CREDITORS' LEDGER
STATEMENT
Balance 130 470 131 900
(a) -21 100 
(b) + 5 000 
(c) - 38 800 
(d) + 1 650 
(e) - 2 400 
(f) - 5 400 
(g) + 3 600 
(h) - 13 900 
- 1 280 
+ 44 700 

(both totals) 117 220  117 220

14

2.3 State TWO internal control measures that the business can use to
prevent similar incidents from happening in future.

Any TWO relevant control measures  

 Division of duties – Pearl must not be the only person responsible for
ordering and recording goods. Rotate duties.
 Have special order forms to be signed by two people.
 Check documents regularly against deliveries.
 Do regular/random stock counts to verify stock records. 4

TOTAL MARKS

20

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 Accounting – Grade 11 P2 12 June 2024
QUESTION 3:

3.1 Give the correct concept in each of the cases:

3.1.1 debtors 
3.1.2 asset disposal 
3.1.3 asset register 
3.1.4 Depreciation  4

3.2.1 Explain why the asset register is an important document for internal
control. Provide TWO reasons.

Any TWO reasons  

 It is a list of all fixed assets purchased.

 Check assets by physical asset count (inspection) and compare it against
the asset register.
 Check the date of purchased/ price/ purchased from whom/ depreciation
method and rate etc. 4

3.2.2 ASSET DISPOSAL

2023 1 Equip- 36 000 2022 Accumulated
Dec Sept 1 depreciation on
ment  16 416
equipment
7 200 + 5 760 one part correct
+3 456
Bank  2 000

Loss on sale of 17 584

asset 
36 000 36 000

# Can be a profit. Work according to learner calculation.

11

3.2.3 L Linde decided to buy the equipment for R2 000 without

informing his partner. Explain the consequences that partner
Linde could be facing.
Any TWO reasons  

 Unethical to do this without permission from his partner, his

partner van take legal action against him.
 Pay the difference back to the business/the loss can be set off
against his Current Account
 Must hold him accountable for the losses suffered by the
partnership.
 Open a criminal case against him. / Suspend him. 4

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Accounting – Grade 11 P2 13 June 2024

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 Accounting – Grade 11 P2 14 June 2024

3.2.4 Calculate the following amounts

CALCULATION ANSWER
The balance of Land and building on 29 February
2024.
4 800 000 + 750 000 5 550 000
3 one part correct

Total depreciation on vehicles on 29 February 2024:

Car 1
300 000 – 285 000 = 15 000
300 000 x 20/100 = 60 000 BUT = R14 999
One part correct

166 199
Car 2 one part correct
576 000 x 20/100 = R115 200 

Car 3
1 596 000 – 876 000 one part correct
720 000 x 20/100 x 3/12 = R36 000 
8
The depreciation on the remaining equipment on
29 February 2024.
Old equipment
480 000 – 36 000 = 444 000 
180 000 + 3 456 – 16 416 see 3.2.2 = 167 040 
56 492
444 000 – 167 040 = 276 960 x 20% = 55 392  one part correct

New equipment
510 000 – 444 000
66 000 x 20/100 x 1/12 = 1 100
one part correct 10 21

3.2.5 Mention THREE procedures that the business can apply to improve
their internal control over the vehicles.
Any THREE internal control measures   

 Install tracking device/GPS in all the vehicles.

 Keeping of logbooks to record kilometres travelled.
 Keeping of key-registers, in which keys must be signed in and out by
drivers.
 Proper lockable garages and alarm systems to limit theft of vehicles.
 Adequate insurance. 6
TOTAL MARKS

50

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 Accounting – Grade 11 P2 15 June 2024
QUESTION 4

4.1.1 Calculate the following financial indicators for 2024:

Mark-up percentage
WORKINGS ANSWER

3 300 000  x 100 50% 

one part correct
6 600 000  3
Net profit on sales
WORKINGS ANSWER

1 782 000  x 100 18% 

one part correct
9 900 000  3
Debtors’ average collection period
WORKINGS ANSWER
90 000 three marks
180 000 two marks
½ (95 000 + 85 000) x 365 33,2 days R
one part correct
990 000  1 5

4.2 The business decreases the mark-up percentage. Why was this strategy
successful? Quote ONE figure.
Gross profit  Figure 

The gross profit increased from R3 000 000 to R3 300 000/ by R300 000. 2

4.3 Will the partners be satisfied with their Debtors collection period. Quote
a figure and comment.
Yes  see 4.1.1
Decrease from 39 days to 33,2 days / 6 days.  3

4.4 The partners are concerned about the stock holding period. Show the
trend and comment on it.
Figures  and Explanation 

The stockholding period increase from 9 days to 18 days

Explanation
The shelf live is only 12 days/ 6 days more than the shelf live. / Risk of
expired goods/losses due to stale /obsolete stock. 4

TOTAL MARKS

20s

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