Accounting:Gr 12 1 March 1
GRADE 12
ACCOUNTING
TASK 2
MARCH 1
MARKS: 120
MARKING GUIDELINE
MARKING PRINCIPLES
Penalties for foreign items are applied only if the candidate is not losing marks elsewhere in the question for
1.
that item (no foreign item 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 the answer is 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).
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
before awarding the mark.
10. ‘Operation’ means ‘Check operation’. ‘One part correct’ means ‘Operation & one part correct’.
Note: Check operation means must be +, –, x or ÷ as per memo, but some items can be + or – such as
provision for bad debts adjustment / sale of asset.
Note: Where appropriate, use of numerator and denominator must be correctly applied to earn marks.
11. In awarding method marks, ensure that candidates do not get full marks for any item that is incorrect at
least in part. In such cases, do not award the method mark. Indicate by way of
12. Be aware that some candidates provide valid alternatives beyond the memorandum.
13 Codes: f = foreign item; p = placement/presentation.
This memorandum consists of 5 pages.
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Accounting:Gr 12 2 March 1
QUESTION 1
1.1 CONCEPTS
1.1.1 internal
1.1.2 payables
1.1.3 liability
1.1.4 limited
4
1.2 TOODADOES LTD
1.2.1 NOTES TO THE FINANCIAL STATEMENTS ON 28 FEBRUARY 2021
ORDINARY SHARE CAPITAL
AUTHORISED
800 000 ordinary shares
ISSUED
Ordinary shares in issue on
600 000 2 550 000
1 March 2020
shares repurchased during the year (x
(60 000) (255 000)
R4,25 )
100 000 shares issued during the year 500 000
Ordinary shares in issue on 2 795 000
640 000
28 February 2021 operation
7
RETAINED INCOME
Balance at the beginning of the year 136 000
Net profit after tax 312 000
See Inc St
Shares repurchased (315 000 – 255 000 see OSC)
(60 000)
Ignore brackets
Ignore brackets
Dividends on ordinary shares (198 000)
Interim dividends paid 90 000
one part correct
Final dividends declared (540 000 x 0,2) 108 000
Balance at the end of the year Operation, one part correct 190 000
10
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Accounting:Gr 12 3 March 1
3.2.2 TOODADOES LTD
INCOME STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2021
Sales 2 700 000
Cost of sales (1 500 000)
Gross profit 3 Operation 1 200 000
Other operating income Operation 81 500
6 600 x 10 7 590 x 2
Rent Income (66 000 + 15 180 ) 81 180 *
Provision for bad debts adjustment 320
Gross operating income 7 Operation 1 281 500
Operating expenses Operation (845 100)
Consumable stores 3 150
Advertising (64 000 – 23 400 ) 40 600 *
Audit fees (18 000 + 22 000 40 000 *
Director’s fees (69 500 + 70 000 ) 139 500 *
Salaries and wages (345 000 + 3 150 ) 348 150 *
Bad debts (5 900 + 1 600) 7 500
Loss due to fire 6 000 #
Trading stock deficit 16 400 #
Depreciation 98 450
Sundry expenses 145 350
Operating profit 24 Operation 436 400
Interest income 23 600
Net profit before interest expense Operation 460 000
Interest expense (120 000 + 63 000 – 145 000) (38 000)
Net profit before tax Operation 422 000
Income tax (19 500 + 64 600 + 25 900 ) (110 000) *
Net profit after tax 10 Operation 312 000
Foreign items -1 max -2 *one part correct
#can be combined
44
TOTAL MARKS
65
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Accounting:Gr 12 4 March 1
QUESTION 2
2.1 MACKMACK LTD
(i) Calculate the additions of Buildings during the Answer
year
4 800 000 – 3 450 000 2 1 350 000
no part marks
(ii) Calculate the total depreciation on vehicles on
30 June 2021.
340 000 x 20/100 = 68 000 BUT CV = 14 999
352 000 x 20/100 = 70 400
99 399
Disposal 116 800 – 102 800 = 14 000 one part correct
(iii) Calculate the carrying value of equipment on
30 June 2020
83 200 + 116 000 – 22 630
176 570
556 000 one mark – 379 430 two marks one part correct
(440 000 + 116 000) ( 356 800 + 22 630) 4 13
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Accounting:Gr 12 5 March 1
2.2 MACKMACK LTD
CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2020
Operation
CASH FLOW FROM OPERATING ACTIVITIES 2 149 200
Cash generated from operations 3 001 860
Interest paid (96 760)
Dividends paid
170 000 + 70 000 – 40 000 or (200 000)*
– 170 000 – 70 000 + 40 000 or
70 000 one mark + 130 000 two mark
Income tax paid 7 (555 900)
Operation
CASH FLOW FROM INVESTING ACTIVITIES (1 363 200)
Purchase of fixed asset
(1 466 000) *
(1 350 000 see FA Note + 116 000 )
Proceeds from sale of fixed assets 5 102 800
Operation
CASH FLOW FROM FINANCING ACTIVITIES (246 000)
New shares issued 444 000
Repurchase of shares (360 000)
Repayment of loan (1 350 000 – 1 020 000) 6 (330 000)
Operation
Net change in cash and cash equivalents 540 000
Cash and cash equivalents beginning of year
(105 000)
– 110 000 + 5 000
Operation
Cash and cash equivalents at the end of year 4 435 000
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If a working is shown as a final answer, award working mark only if brackets correctly applied for that item
Signs may be reversed; apply consistently; mark one line only to benefit candidate
Workings may be done as T-accounts; inspect answer booklet for these workings
If workings not shown but figure is correct without brackets, award marks
TOTAL MARKS
35
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