KZN Accounting Grade 12 June 2024 P2 and Memo

Downloaded f rom St anmorephysics.
com
NATIONAL
SENIOR CERTIFICATE
GRADE 12
ACCOUNTING P2
COMMON TEST
JUNE 2024
MARKS: 150
TIME: 2 Hours
This question paper consists of 13 pages including a formula sheet and

a 12-page Answer Book.
Copyright Reserved Please Turn Over

Accounting P2 2 June 2024 Common Test
NSC-Grade 12 com
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 workings in order to achieve 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. If you choose to do so, you may use the Financial Indicator Formula Sheet attached at
the end of this question paper. The use of this formula sheet is NOT compulsory.
8. Write neatly and legibly.
9. Use the information and table below as a guide when answering the question paper.
Try NOT to deviate from it.
QUESTION TOPIC MARKS MINUTES
1 Bank Reconciliation 25 20
2 Cost Accounting 45 35
Stock Valuation, Problem solving and

3 50 40
Tangible note.
Creditors Reconciliation and Debtors age
4 30
analysis
TOTAL 150 120

NSC-Grade 12 com
QUESTION 1: BANK RECONCILIATION (25 marks: 20 minutes)
1.1 BANK RECONCILIATION
OBUSA STORES
The following information relates to Obusa Stores for May 2024.
REQUIRED:
1.1.1 Calculate the correct totals in the cash journals on 31 May 2024. (10)
1.1.2 Calculate the correct balance of the bank account on 31 May 2024. (5)
1.1.3 Prepare the Bank Reconciliation Statement on 31 May 2024. (7)
1.1.4 Miss Siphokazi Makhoba is the finance clerk at Obusa Stores. She has
been responsible for all finance activities by herself since the inception
of the store. She made several mistakes and the owner has not taken
any action. As the internal auditor of Obusa Stores you are not happy
with the control of cash in this business.
• Explain ONE problem to confirm your concern. Quote figures. (2)

• Give advice on how the problem can be avoided in future. (1)
INFORMATION:
A Extract from the Bank Reconciliation Statement on 30 April 2024
Balance as per bank statement (R36 294)

Outstanding cash deposits:
Dated 15 April 2024 12 080
Dated 30 April 2024 21 640
Outstanding EFTs:
431 (dated 29 April 2024) (13 800)
435 (dated 30 April 2024) (17 900)
Balance as per bank account ?
B Provisional totals in the cash journals on 31 May 2024 before receiving

the bank statement:
• Cash Receipts Journal: R60 334

• Cash Payment Journal: R34 865

NSC-Grade 12 com
C Entries in the Cash Journals for May 2024 that do not agree with the
May Bank Statement.
JOURNAL DOCUMENT DATE DETAILS AMOUNT

CRJ Deposit slip 12 29 Sales R54 370
Deposit slip 17 30 Debtors’ 26 300
control
JOURNAL DOCUMENT DATE DETAILS AMOUNT

CPJ EFT 21 16 Ivory Ltd R1 780
EFT 26 22 Municipality 3 660
D Items on the Bank Statement dated May 2024 that do not agree
with the May Cash Journals.
Date Details Debit Credit

02 Deposit (30/04) R21 640
03 Direct transfer to JB Stores 13 800
04 Direct transfer to Atlas Co. 19 700
15 Debit order (insurance) 1 670
15 Debit order (insurance) 1 670
16 Direct deposit from Ivory Ltd 1 780
17 Deposit (15/04) 10 080
20 Internet banking fee 176
25 Interest 315
28 Service fees 475
NOTE:
• EFT 435 (Atlas Co.): Bank Statement is correct.
• A debit order for insurance was duplicated in error. The bank will
correct this in June.
• Miss Siphokazi Makhoba the finance clerk, cannot account for the
missing amount. The owner of Obusa Stores decided to write off the
amount, but further investigations will be done.
25

NSC-Grade 12 com
QUESTION 2: MANUFACTURING (45 marks; 35
minutes)
2.1 SIVUKILE WATCHES
The following information relates to the financial year ended 29 February 2024.
The business manufactures one type of watch.
REQUIRED:
2.1.1 Calculate the note for factory overhead cost for the financial year end.
Use the table provided in the Answer Book. (9)
2.1.2 Complete the Production Cost Statement on 29 February 2024. (12)
INFORMATION:
A. Stock balances:
29 Feb 2024 28 Feb 2023
Work in progress stock ? R 35 100
Factory consumable stores R 3 900 0
B. Extract of transactions for year ended 29 February 2024

(before adjustments in Information C)
Raw material issued to the factory for production R?

Consumable stores purchased for the factory 29 800
Production wages 525 000
Employer's contributions for workers in production
44 900
Rent expense for the office section 12 200
Water and electricity 54 400
Salaries: Factory foreman (including benefits) 102 400
Salaries: Sales staff (including benefits) 60 300
Insurance 33 500
Sundry expenses: Factory 47 040
Sales department 10 200
C. Additional information and adjustments:
• The following production wages was omitted from the Wages Journal for
the last week of February 2024:
Net wage due to employee R11 315
Total deductions for this employee amounts to 27% of his gross wages.
The employer pays 11% of the gross wages to the Pension Fund and
1% to the UIF.

NSC-Grade 12 com

NSC-Grade 12 com
• Rent is shared between the factory, sales, and administration in the ratio
6:3:2. Only the administration portion was recorded.
• The February 2024 water and electricity account of R5 600 must still be
paid. Note that 75% of this expense relates to the factory.
• Insurance includes an additional premium of R5 700 paid for the period

1 January 2024 to 30 June 2024. This expense is allocated between the
factory and sales department in the ratio 4: 1.
D. Prime cost for the year after adjustments amounted to R1 380 000.
E. The business produced 2 500 bags at a cost of R620 each.
2.2 FRYER MANUFACTURERS
Fryer Manufacturers is owned by John Stones. The information relates to Shesha

Air Fryer and Easy Quick Air Fryer for the year ended 30 April 2024 with
comparison figures for 2023.
REQUIRED:
2.2.1 • Calculate the break-even point for Shesha Air Fryer for 2024. (4)
• Comment on whether John should be satisfied with the break-even points

and levels of production for the past two years. Quote figures to support
your opinions. (4)
2.2.2 Identify ONE variable cost for each item, that would be of concern to John.
Quote figures. Provide ONE possible reason for the problem, in each case. (6)
2.2.3 John was concerned about the increase in the fixed cost per unit of Easy
Quick Air Fryer. What would you say to him? Provide ONE point and quote
figures to support your answer. (2)
2.2.4 John feels that he can improve the sales of Easy Quick Air Fryer. Provide
TWO suggestions on how this can be achieved. Quote figures. (4)
2.2.5 Assume that costs and workers' efficiency will remain unchanged in 2025. If
production and sales of Easy Quick Air Fryer increased by 500 units,
calculate how much additional profit she can expect. (4)

NSC-Grade 12 com
INFORMATION ON AIRFRYERS FOR THE FINANCIAL YEAR END:
SHESHA AIR FRYER EASY QUICK AIR FRYER

2024 2023 2024 2023
UNIT COST UNIT COST UNIT COST UNIT COST
R R R R
Direct Material Cost 150,00 120,00 142,00 140,00
Direct Labour Cost 102,00 98,00 160,00 102,00
Selling and Distribution Cost 52,00 50,00 35,00 35,00
VARIABLE COST PER UNIT 304,00 268,00 337,00 277,00
Factory Overhead Cost 70,00 68,00 125,00 75,00
Administration Cost 30,00 30,00 50,00 45,00
FIXED COST PER UNIT 100,00 98,00 175,00 120,00
Selling price per unit R 400,00 R 400,00 R 540,00 R 450,00
Number of units produced and sold 4 500 units 4 500 units 1 200 units 2 000 units
Break-even point ? 3 341 units 1 035 units 1 388 units
45

NSC-Grade 12 com
QUESTION 3 (50 marks; 40 minutes)
INVENTORY VALUATION, INTERNAL CONTROL AND TANGIBLE ASSETS
3.1 INVENTORY VALUATION
Nongoma Electronics uses the periodic stock system and the FIFO method to value
stock of Aphones 11. The business is owned by Harding Bulwer. He employs Mooi
Adams to run the shop for him. The financial year-end is 29 February 2024. The new
model will issued next year.
REQUIRED:
3.1.1 Calculate the value of the closing stock of the Aphones 11 on

29 February 2024. (6)
3.1.2 Calculate the cost of sales for the year ended 29 February 2024. (5)
3.1.3 Calculate how long (in days) it will take to sell the closing stock of 135
Aphones 11. Comment on your findings and give Mooi advice in this regard. (6)
3.1.4 Refer to Information D.
Provide a calculation to prove that the information given by the sales

assistant about the Aphones 11 is true. Give ONE point of advice. (7)
INFORMATION:
A Stock balances of the aphones 11:
UNIT PRICE
NUMBER OF
DATE (INCLUDING TOTAL
UNITS
CARRIAGE)
1 March 2023 75 R7 610 R570 750
28 February 2024 135 ? ?
B Purchases and returns of the Aphones 11 during the year:
Purchases:
TOTAL
NUMBER TOTAL
DATE UNIT PRICE (INCLUDING
OF UNITS CARRIAGE
CARRIAGE)
1 June 2023 130 R7 200 R14 300 R950 300
21 Aug. 2023 120 R7 000 R13 200 R853 200
15 Dec. 2023 85 R6 600 R9 350 R570 350
TOTAL 335 R36 850 R2 373 850
Returns includes carriage:
TOTAL
NUMBER TOTAL
DATE UNIT PRICE (INCLUDING
OF UNITS CARRIAGE
CARRIAGE)
10 Sep. 2023 3 R7 000 R330 ?
These returns are from the purchases of August 2023.
NSC-Grade 12 com

NSC-Grade 12 com
C Sales for the year:
260 units for R2 392 000
D Possible theft of smartphones:
Harding has been informed by a sales assistant that he suspects Mooi

of giving away Aphones 11 to her family members and friends.
3.2 INTERNAL CONTROL
BONA TRADERS
Bona Traders sells one type of camera. The owner Sthembiso. has three branches
situated in Hlathi, Tholanin and Kwamanqanda. The three branches
are managed by Sfiso, Nolwazi and Xolani respectively.
Sthembiso has obtained the annual figures/amounts from the three branches
for the financial period ending 29 February 2024.
REQUIRED:
Identify ONE problem in relation to each branch, quoting figures/amounts to

support the problem. In each case, offer the owner advice on how to solve the
problem. (9)
Note: All cameras are sold for cash.
INFORMATION
HLATHI THOLENI KWAMAQANDA
CAMERAS
(SFISO) (NOLWAZI) (XOLANI)
Cameras available for sale 1 960 1 600 1 160
Cameras sold during the year 1 560 300 1 000
Cameras returned during the year 20 20 0
Stock on 29 February 2024 340 1 280 160
R18 720 R3 600
Total cash sales R11 360 000
000 000
Cost price per camera R8 000 R8 000 R8 000
Selling price per camera R12 000 R12 000 R12 000
Advertising costs per year R40 000 R40 000 R40 000
Salary of manager per month R25 000 R25 000 R25 000

NSC-Grade 12 com
3.3 FIXED/TANGIBLE ASSETS
REQUIRED:
3.3.1 Complete the Tangible Asset Note for the year ended 29 February 2024. (17)
Buildings Vehicles Equipment

Carrying value - 1 March 2023 3 452 000 413 400 83 200
Cost 3 452 000 872 000 340 000
Accumulated depreciation 0 (458 600) (256 800)
Movement
Additions at cost (a) 0 116 000
Disposals at carrying value 0 (b) 0
Depreciation 0 (c) (e)
Carrying value – 29 February 2024 4 522 800 (d)
Cost 4 522 800
Accumulated depreciation 0
Additional information in respect of fixed assets:
• An extension to the office block was undertaken during the year.
• The business had three vehicles at the beginning of the year. The following
details appeared in the Fixed Asset Register on 1 March 2023:
Vehicle 1 Vehicle 2 Vehicle 3

Cost 240 000 352 000 280 000
Accumulated depreciation (225 000) (70 400) (163 200)
Carrying value 15 000 281 600 116 800
NOTE: Vehicle 1 is old and is reaching the end of its useful life.
Vehicle 3 was sold at its carrying value of R102 800 during the year.
• Equipment of R116 000 was purchased on 1 August 2023. No equipment

was sold.
• Depreciation policy: Vehicles: 20% on cost

Equipment: 15% on carrying value
50

NSC-Grade 12 com
QUESTION 4 (30 marks; 25 minutes)
CREDITORS’ RECONCILIATION AND DEBTORS AGE ANALYSIS
4.1 CREDITORS’ RECONCILIATION
Mathebula Traders received a statement of account from a creditor,

Ngubane Suppliers. The balance on the statement did not agree with that on
the account of Ngubane Suppliers in the Creditors Ledger of Mathebula Traders.
REQUIRED:
4.1.1 Provide THREE points for good internal control over creditors (6)
4.1.2 Complete the table in the ANSWER BOOK to show how the differences
must be treated to reconcile the Creditors Ledger Account balance with
the statement balance.
Write the amounts in the appropriate columns and indicate the increase
or decrease with a (+) or (-) with each amount.
Total the columns to show the correct balance at the end of

February 2024. (9)
INFORMATION:
Balance in the Creditors Ledger of Mathebula Traders R17 925

Balance in the statement received from Ngubane Suppliers R29 400
A comparison between the Creditors Ledger Account of Ngubane Suppliers

and the statement of account showed the following differences:
A. An invoice for R11 200 received from Ngubane Suppliers was correctly
recorded in the Creditors Ledger Account. The amount was incorrectly
recorded as R9 100 on the statement.
B. Mathebula Traders entered a discount of R875 relating to a payment of

R9 000 on the 10 February 2024. Ngubane Suppliers did not approve this
discount stating that the payment was received late.
C. The statement of account reflected returns valued at R1 190. The

Creditors Ledger Account showed R690. It was established that
Mathebula Traders miscalculated the value of the goods returned.
D. An invoice for R3 100 received from Ngubane was incorrectly recorded

as a debit note in the Creditors Ledger.
E. A direct transfer of R7 000 by Mathebula Traders was recorded in the

Cash Payment Journal on 27 February 2024. The statement of account
from Ngubane Suppliers was dated 25 February 2024.

NSC-Grade 12 com
4.2 DEBTORS AGE ANALYSIS
Mnqobi Traders sell goods for cash and on credit. The business is owned by
Njabulo Khumalo.
REQUIRED:
4.2.1 How can the preparation of a debtor’s collection schedule and

debtor’s age analysis assist Njabulo in controlling debtors? (4)
4.2.2 Mnqobi Traders have the pay slip of all their debtors. What other
information should they obtain before allowing customers to open
accounts? State TWO points with a reason in each case. (4)
4.2.3 Calculate the percentage of debtors complying with the credit terms. (3)
4.2.4 Explain TWO measures to improve collection from debtors. (4)
INFORMATION:
Debtors' age analysis on 29 February 2024:
30–60 61–90 MORE THAN

TOTAL CURRENT
DAYS DAYS 90 DAYS
300 200 36 024 24 016 156 104 84 056
The credit period is 60 days.

30

NSC-Grade 12 com
GRADE 12 ACCOUNTING FINANCIAL INDICATOR FORMULA SHEET
Gross profit X 100 Gross profit X 100

Sales 1 Cost of sales 1
Net profit before tax X 100 Net profit after tax X 100
Sales 1 Sales 1
Operating expenses X 100 Operating profit X 100

Sales 1 Sales 1
Total assets : Total liabilities Current assets : Current liabilities
(Current assets – Inventories) : Current liabilities Non-current liabilities : Shareholders’ equity
(Trade and other receivables + Cash and cash equivalents) : Current liabilities
Average trading stock X 365 Cost of sales

Cost of sales 1 Average trading stock
Average debtors X 365 Average creditors X 365

Credit sales 1 Cost of sales 1
Net profit after tax X 100
Net income after tax X 100
Number of issued shares 1
Average shareholders’ equity 1
(*See note below)
Net income after tax + Interest on loans X 100
Average Shareholders’ equity + Average non-current liabilities 1
Shareholders’ equity X 100 Dividends for the year X 100

Number of issued shares 1 Number of issued shares 1
Interim dividends X 100 Final dividends X 100

Number of issued shares 1 Number of issued shares 1
Dividends per share X 100 Dividends for the year X 100

Earnings per share 1 Net income after tax 1
Total fixed costs .
Selling price per unit – Variable costs per unit
NOTE
• In this case, if there is a change in the number of issued shares during a financial year, the
weighted-average number of shares is used in practice.

Downloaded f rom St anmorephysics. com
NATIONAL
SENIOR CERTIFICATE
GRADE 12
ACCOUNTING P2
ANSWER BOOK
COMMON TEST
JUNE 2024
Name: __________________________________________________ Grade: _______
MOD BY THE MOD BY THE MOD BY THE

QUESTION MARKS
SCHOOL CLUSTER PROVINCE
1
2
3
4
TOTAL
N.B. This answer book consists of 12 pages.

NSC – GR 12 -Answer Book
QUESTION 1: BANK RECONCILIATION
1.1.1 Cash Receipts Journal Cash Payments Journal

60 334 34 865
10
1.1.2 Calculate the correct balance of the Bank account in the ledger on
31 May 2024.
1.1.3 Prepare the Bank Reconciliation Statement on 31 May 2024.
Debit Credit

ALTERNATIVE METHOD FOR 1.1.3.
Prepare the Bank Reconciliation Statement on 31 May 2024.
1.1.4 Explain ONE problem to confirm the auditors concern and give an
advice on how the problem can be avoided. Quote figures.
Problem with Figure(s) Advice
TOTAL
MARKS
25

QUESTION 2
2.1.1 FACTORY OVERHEAD COST NOTE
Factory salary 102 400

Sundry expenses 47 040
2.1.2 Production Cost Statement for the year ended 29 February 2024.
Prime cost 1 380 000
Total manufacturing cost

Work in progress in the beginning 35 100
Work in progress at the end of the year
12

FRYER MANUFACTURERS
2.2.1 Calculate the break-even point for Shesha Air Fryer for 2024.
WORKINGS ANSWER
Comment on whether John should be satisfied with the break-

even points and levels of production for the past two years. Quote
figures to support your opinions.
2.2.2 Identify ONE variable cost for each item, that would be of concern
to John. Quote figures. Provide ONE possible reason for the
problem, in each case.
ONE VARIABLE COST WITH
REASONS
FIGURES
Shesha Air Fryer
Easy Quick Air Fryer

2.2.3 John was concerned about the increase in the fixed cost per unit
of Easy Quick Air Fryer. What would you say to him? Provide ONE
point and quote figures to support your answer.
2.2.4 John feels that he can improve the sales of Easy Quick Air Fryer.
Provide TWO suggestions on how this can be achieved.
2.2.5 Assume that costs and workers' efficiency will remain unchanged
in 2025. If production and sales of Easy Quick Air Fryer increased
by
500 units, calculate how much additional profit she can expect.
TOTAL
MARKS
45

QUESTION 3

29 February 2024.
3.1.2 Calculate the Cost of sales for the year ended 29 February 2024.
Aphones 11. Comment on your findings and give advice to Mooi in this
regard.
Calculation:
Comment Advice

3.1.4 Provide a calculation to prove that the information given by the sales
assistant about Aphones 11 is true. Give ONE point of advice.
Calculation:
One point of advice:
3.2 Identify ONE problem in relation to each branch, quoting figures/amounts

to support the problem. In each case, offer the owner advice on how to solve
the problem.
Branch Comment and figures Advice
HLATHI
(SIFISO)
THOLENI
(NOLWAZI)
MAQANDA
(XOLANI)

3.3 NO. CALCULATION ANSWER
(a)
(b)
(c)
(d)
(e)
17
TOTAL
MARKS
50

QUESTION 4
4.1.1 Provide THREE points for good internal control over creditors
4.1.2 CREDITORS LEDGER OF STATEMENT FROM NGUBANE

MATHEBULA TRADERS SUPPLIERS
17 925 29 400
A.
B.
C.
D.
E.

4.2.1 How can the preparation of a debtor’s collection schedule and

Debtor’s age analysis assist Njabulo in controlling of debtors?
Debtor’s collection schedule:
debtor’s age analysis assist:
4.2.2 Sobantu Traders have the pay slip of all their debtors. What other
accounts? State TWO points with a reason in each case.
Information to be obtained
Reason

4.2.3 Calculate the percentage of debtors complying with the credit terms.
4.2.4 Explain TWO measures to improve collection from debtors.
TOTAL
MARKS
30
TOTAL MARKS: 150

NATIONAL
SENIOR CERTIFICATE
GRADE 12
ACCOUNTING P2
MARKING GUIDELINES
COMMON TEST
JUNE 2024
MARKS: 150
MARKING PRINCIPLES:
1. Penalties for foreign items are applied only if the candidate is not losing marks elsewhere in the question
for that 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 the final figure, award one mark. Not the method mark for the
answer.
Note: if figures are stipulated in memo for components of workings, these do not carry the method for final
answer.
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 a certain question.
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 before awarding the mark.
10. Operation’ means ‘Check operation’. ‘One part correct’ means ‘Operation & one part correct’. Note: check
operation must be +,-,x,÷, or per candidates operation.
11. In awarding method marks, ensure that candidates do not get full marks for any item that is incorrect,
indicate
with a . Note: do not award marks for workings if numerator and denominator are swapped-this also
applies to ratios.
12. Be aware of candidates who provide valid alternatives beyond the marking guideline.
13. Codes: f=foreign item; p=placement.
This memorandum consists of 12 page

NSC – Marking Guidelinecom
QUESTION 1
BANK RECONCILIATION
1.1.1 Cash Receipts Journal Cash Payments Journal

60 334 34 865
(1 780 + 1 780) 3 560 ✓✓ (19 700 – 17 900) 1 800 ✓✓
315 ✓ 1 670 ✓
(12 080 – 10 080) 2 000 ✓✓
651 ✓✓
(176 one mark + 475 one mark)
64 209 40 986 10
1.1.2 Calculate the correct balance of the Bank account in the ledger on
31 May 2024.
–34 274 ✓✓ + 64 209  – 40 986  = –11 051  one part correct
See CRJ See CPJ
Accept ledger account

Check the net effect
5
1.1.3 Prepare the Bank Reconciliation Statement on 31 May 2024.

Alternative Debit Credit
Method
Balance as per bank statement R89 731 

(R89 731)
Balancing figure Could be DR/CR
Do not accept
R36 294
Outstanding deposit 54 370 54 370 ✓

Outstanding deposit 26 300 26 300 ✓
Outstanding EFT (3 660) 3 660 ✓
Correction of error by the bank 1 670 1 670 ✓
Balance as per bank account 11 051 11 051 
See 1.1.2 Do not accept
R34 274
Totals must be the same to award a part mark 93 391 * 93 391

7

1.1.4 Explain ONE problem to confirm the auditors concern and give an
advice on how the problem can be avoided. Quote figures.
Advice ✓ (advice should be in line

Problem ✓ Figure(s) ✓
with a problem)
• Shortfall in cash deposit, • Use security company to collect
R2 000/R12 080 received and deposits on daily or regular basis
documented but only R10 080 • Divide duties: person receiving the
was deposited money must not be the one
• Delay in cash deposit (15 April – depositing it / count in, count – out
17 May 2024) cash procedure (count cash at the
• EFT incorrectly recorded as beginning and end of shifts).
payment of R1 780. • Senior personnel should check
(monitor) internet banking
transactions regularly (daily)
/deposit slips that reflects daily
deposits.
• Encourage debtors to make direct 3
deposit/EFTs.
Do not accept “install cameras”
TOTAL MARKS
25

QUESTION 2
2.1.1 FACTORY OVERHEAD COST NOTE
Factory salary 102 400

Sundry expenses 47 040
Consumable stores (29 800 – 3 900) 25 900 ✓✓
Water and electricity (54 400 + 5 600) x 75% 45 000 ✓✓
Rent expense (12 200 x 6/2) 36 600 ✓✓
Insurance (33 500 – 3 800) x 4/5 23 760 ✓✓
one part correct 280 700  9
2.1.2 Production Cost Statement for the year ended 29 February 2024.
Direct material cost PC - DLC 792 740 

Direct labour cost
587 260 
525 000✓ + 44 900✓ + 15 500✓✓ + 1 860)
Prime cost 1 380 000
Factory overhead cost see 2.1.1 280 700 
Total manufacturing cost (PC + FOH) 1 660 700 
Work in progress in the beginning 35 100
1 695 800
Work in progress at the end of the year (145 800) 
Balancing figure
The total cost of production (2 500 x 620) 1 550 000 ✓✓ 12
Gross calculation : 11 315 x 73/100

• Pension fund R1 705
• UIF R155

FRYER MANUFACTURERS
2.2.1 • Calculate the break-even point for Shesha Air Fryer for 2024.
WORKINGS ANSWER
450 000 ✓
400 ✓– 304 ✓ = 4 688 /
96 two marks 4 687,50 unites
one part correct 4
• Comment on whether John should be satisfied with the break-

even points and levels of production for the past two years.
Quote figures to support your opinions.
Compulsory response:
Compare BEP to level of production for 2024 ✓✓ Figures ✓✓
The BEP is 4 688 units, and production is 4 500 units. The business
produced 188 units less than BEP/making a loss on 188 units.
Optional response: Max two marks in total (mark one optional response only)
Compare BEP 2020 to 2021 OR Production 2020 to 2021
4
Break-even increased from 3341 to 4 688 units.
Production remained constant at 4 500 units per year.
2.2.2 Identify ONE variable cost for each item, that would be of concern
to John. Quote figures. Provide ONE possible reason for the
problem, in each case.
ONE VARIABLE COST
REASONS
WITH FIGURES
Variable cost ✓ ✓ ✓ ✓
Any two different reasons
Figures ✓ ✓
Shesha Air Fryer Greater demand for material/wastage
Direct material cost in the production process/poor quality
increased from R120 per material caused mistakes/poor
unit to R150 per unit/ R30 or supervision/Pay more for better quality
If imported – exchange rate, carriages
25%
expensive. 6
Easy Quick Air Fryer Poor supervision of normal time/
Direct labour cost increased excessive overtime/disruptions in
from R102 to R160/R58 or working hours/power cuts/high
56,8% increases negotiated.

2.2.3 John was concerned about the increase in the fixed cost per unit
of Easy Quick Air Fryer. What would you say to him? Provide ONE
point and quote figures to support your answer.
Valid comment explaining economies of scale/Economy of scale ✓✓
Production decreased by 800 units (40%), but fixed costs are not
influenced by the level of production, would remain almost constant,
divided by a smaller number of units, will be much higher per unit.
2
2.2.4 John feels that he can improve the sales of Easy Quick Air Fryer.
Provide TWO suggestions on how this can be achieved.
TWO valid suggestions ✓✓ ✓✓
• he could decrease the mark-up % (or selling price)
• he can set targets for completion during normal time and try to
reduce overtime pay
• he can spend more money on advertising and sales promotion and
explore new target markets
4
2.2.5 Assume that costs and workers' efficiency will remain unchanged
in 2025. If production and sales of Easy Quick Air Fryer increased
by 500 units, calculate how much additional profit she can expect.
500✓ x R203✓✓ = R101 500 one part correct
TOTAL MARKS
45

QUESTION 3

29 February 2024.
(135–85)
50 x (7 000 + 110) ✓✓ = 355 500 
85 x (6 600 + 110) = 570 350 ✓
135 925 850  one part correct
3.1.2 Calculate the Cost of sales for the year ended 29 February 2024.
see 3.2.1
5
570 750✓+ 2 373 850✓– 21 330✓ – 925 850 = R1 997 420 
one part correct
Aphones 11. Comment on your findings and give advice to Mooi in this
regard.
135✓ x 365 ✓ = 189,5 or 190 days  one part correct

260✓
Alternative
925 850 x 365 = 169 days
1 997 420
Comment ✓ Advice ✓
It will take 6 months to sell the Mooi should consider dropping the
closing stock. price of the Aphone 11 to get rid of
stock faster (Since new models
will be introduced next year).
Stock turnover is too slow/too Consider having a sale on the

much stock on hand and the stock Aphone 11 model.
may go out of demand since a
new model will be introduced next
year.
6

3.1.4 Provide a calculation to prove that the information given by the sales
assistant about Aphones 11 is true. Give ONE point of advice.
332 two marks
75✓ + 335✓ – 3✓ – 260✓ = 147 – 135✓ = 12one part correct
Any ONE valid point ✓

• Do regular stock counts.
• Division of duties/Rotation of duties.
• Reduce stock to acceptable levels. 7
3.2 Identify ONE problem in relation to each branch, quoting figures/amounts

to support the problem. In each case, offer the owner advice on how to solve
the problem.
Branch Comment and figures Advice
     
HLATHI Theft occurring. There are 40 Improve internal control
(SIFISO) cameras missing (380 – 340)
Value of shortage of Do regular physical stock
R320 000 (8 000 x 40) takings and stock checks
THOLENI Too much stock on hand. Restrict amount of stock on
(NOLWAZI) Only 300 out of 1 600 have hand as this could lead to theft
been sold. or out of date stock.
Stock will become obsolete / Instead of paying Nolwazi a set
out of date, 1 280 left over monthly income he should pay
her on commission based on
sales.
MAQANDA R640 000 cash was stolen Improve internal control
(XOLANI) Division of duties
9

3.3 NO. CALCULATION ANSWER
(a) 4 522 800 – 3 452 000 1 070 800✓
(b) 102 800✓
(c) 116 800 – 102 800 = 14 000✓ Vehicle (3)

Depreciation
15 000 -1 = 14 999✓✓ vehicle (1) Depreciation 99 399

Operation one part correct
352 000 x 20/100 = 70 400 ✓✓vehicle (2) Depreciation
(d) 413 400✓ – 102 800 – 99 399 211 201

Check above Operation one part correct
(e) 116 000 x 15/100 x 7/12 = 10 150✓✓ new equipment

depreciation
22 630
83 200 x 15/100 = 12 480✓✓ old equipment
depreciation
Operation one part correct
17

QUESTION 4
4.1.1 Provide THREE points for good internal control over creditors
Any three valid and separate points   

Beware of alternative wording which reflects the same point.
Beware that two separate points could be in the same sentence.
• Assess the efficiency of the creditors clerk in order to prevent errors

from occurring
• Ensure that creditors are paid on time to make use of discounts
• Make full use of credit terms to assist cash flow
• Division of duties amongst members of the accounting department so
that one person serves as a check on another
• Reconcile the balance on the creditors control account with the total of
creditors' list to ensure accuracy on a monthly basis
• The statement of account of individual creditors must be reconciled
(agreed) with their accounts in the creditors ledger
• Conduct internal audits to minimise the possibility of fraud or error /
Check documents (e.g. invoices and credit notes) to ensure accuracy of
calculations and entries
• Ensure that items ordered from creditors are correctly received (i.e.
quantities, condition, price)
• Ensure that all purchases are correctly authorized (i.e. procurement
policy) 6
4.1.2 CREDITORS LEDGER OF STATEMENT FROM NGUBANE

MATHEBULA TRADERS SUPPLIERS
17 925 29 400
A. + 2 100
B. + 875
(1 190 – 690)
C. - 500
(3 100 +3 100)
D. +6 200
E. - 7 000
24 500  24 500
One figure must be correct
Both total should be same for method 9
-1 per line if the figures appear on both sides only if the transaction required so.

4.2.1 How can the preparation of a debtor’s collection schedule and Debtor’s
age analysis assist Njabulo in controlling of debtors.
Debtor’s collection schedule:
Any valid explanation  
Good explanation = 2 marks; satisfactory = 1 mark; incorrect answer = 0
marks
• Project anticipated receipts from debtors.
• Ensure that debtors keep to terms of their accounts.
• Act if the debtors do not comply with credit terms
• Compare anticipated budget with actual budgets.
debtor’s age analysis assist:
Any valid explanation  
Good explanation = 2 marks; satisfactory = 1 mark; incorrect answer = 0
marks
• Effective method of credit control.
• Action can be taken against debtors who do not comply by charging
interest/ legal action.
• Bad debts can be minimized.
• Make decision based on age analysis of the debtor(s). 4
4.2.2 Mnqobi Traders have the pay slip of all their debtors. What other
accounts? State TWO points with a reason in each case.
Do not accept pay slip of debtor
Can award two marks if information & reason is in same sentence
Information to be obtained Reason  
 
Prompt communication of statement of
Telephone numbers
account.
To be able to trace debtors not adhering to
credit terms and conditions
To avoid fictitious debtors
Proof of residence To be able to do a proper background
/ Address check on each new debtor
Constant reminders of amount owed
To ensure that statements are sent to
correct addresses
To track the debtor if other information is
Contact details of family / friend incorrect / changes
To check how the debtor is managing his
Bank statement / balance finances
Ensure that correct personal details of
Identity document customers are on record
To check that they will not sell to bad
Credit references / debtors
Credit history To check credit worthiness
Prompt communication of statements of
Email address account 4

4.2.3 Calculate the percentage of debtors complying with the credit terms.
60 040 one mark
36 024 + 24 016 OR 240 160 = 80%
300 200 300 200
= 20 %  One part correct 100% – 80% = 20%
OR 12% + 8% = 20% 3
4.2.4 Explain TWO measures to improve collection from debtors

Any TWO relevant measures  Part-marks for unclear / incomplete
answers
Possible responses for two marks: Accept alternative valid responses
• Monthly statements must be sent out/ emailed on time
• Offer higher discount for early payments.
• Add interest on overdue account.
• Do not sell to debtors exceeding the credit limit/ not up to date with
payments.
• Send SMS reminders to debtors.
• Employ service of an attorney or debt collector / sue the debtor.
• Encourage debtors to pay by debit order. 4
TOTAL MARKS
30
TOTAL MARKS: 150

KZN Accounting Grade 12 June 2024 P2 and Memo

Uploaded by

Copyright:

Available Formats

KZN Accounting Grade 12 June 2024 P2 and Memo

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

KZN Accounting Grade 12 June 2024 P2 and Memo

Uploaded by

Copyright:

Available Formats

Downloaded f rom St anmorephysics.

This question paper consists of 13 pages including a formula sheet and

Copyright Reserved Please Turn Over

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 workings in order to achieve part-marks.

4. You may use a non-programmable calculator.

6. Where applicable, show all calculations to ONE decimal point.

8. Write neatly and legibly.

QUESTION TOPIC MARKS MINUTES

Stock Valuation, Problem solving and

TOTAL 150 120

Copyright Reserved Please Turn Over

1.1 BANK RECONCILIATION

The following information relates to Obusa Stores for May 2024.

1.1.3 Prepare the Bank Reconciliation Statement on 31 May 2024. (7)

• Explain ONE problem to confirm your concern. Quote figures. (2)

A Extract from the Bank Reconciliation Statement on 30 April 2024

Balance as per bank statement (R36 294)

B Provisional totals in the cash journals on 31 May 2024 before receiving

• Cash Receipts Journal: R60 334

Copyright Reserved Please Turn Over

JOURNAL DOCUMENT DATE DETAILS AMOUNT

JOURNAL DOCUMENT DATE DETAILS AMOUNT

Date Details Debit Credit

• EFT 435 (Atlas Co.): Bank Statement is correct.

Copyright Reserved Please Turn Over

2.1 SIVUKILE WATCHES

2.1.2 Complete the Production Cost Statement on 29 February 2024. (12)

B. Extract of transactions for year ended 29 February 2024

Raw material issued to the factory for production R?

C. Additional information and adjustments:

Net wage due to employee R11 315

Copyright Reserved Please Turn Over

Copyright Reserved Please Turn Over

• Insurance includes an additional premium of R5 700 paid for the period

E. The business produced 2 500 bags at a cost of R620 each.

2.2 FRYER MANUFACTURERS

Fryer Manufacturers is owned by John Stones. The information relates to Shesha

• Comment on whether John should be satisfied with the break-even points

Copyright Reserved Please Turn Over

SHESHA AIR FRYER EASY QUICK AIR FRYER

Selling price per unit R 400,00 R 400,00 R 540,00 R 450,00

Copyright Reserved Please Turn Over

INVENTORY VALUATION, INTERNAL CONTROL AND TANGIBLE ASSETS

3.1 INVENTORY VALUATION

3.1.1 Calculate the value of the closing stock of the Aphones 11 on

3.1.4 Refer to Information D.

Provide a calculation to prove that the information given by the sales

A Stock balances of the aphones 11:

B Purchases and returns of the Aphones 11 during the year:

Copyright Reserved Please Turn Over

260 units for R2 392 000

D Possible theft of smartphones:

Harding has been informed by a sales assistant that he suspects Mooi

3.2 INTERNAL CONTROL

Identify ONE problem in relation to each branch, quoting figures/amounts to

Note: All cameras are sold for cash.

Name: ____________________________________________ Grade: _