ACCOUNTING
ANSWER BOOK
SEPTEMBER 2024
P1
PREPARATORY EXAMINATION
NATIONAL
SENIOR CERTIFICATE
GRADE 12
GRADE 10
NAME:
GRADE:
MOD BY THE MOD BY THE MOD BY THE
QUESTION MARKS
SCHOOL CLUSTER PROVINCE
1
2
3
4
TOTAL
This answer book consists of 9 pages.
Accounting P1 Answer book 2 KZN September 2024
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QUESTION 1
1.1.1 WORKINGS ANSWER
a. Calculation of additions to land and buildings:
b. Calculation of depreciation on vehicles:
Vehicle 1:
Vehicle 2:
Vehicle 3:
c. Calculation of carrying value on vehicle sold:
d. Calculation of cost price of equipment on
1 March 2023:
13
1.1.2 Calculation of profit/loss on sale of vehicle:
WORKINGS ANSWER
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Accounting P1 Answer book 3 KZN September 2024
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1.2.1 Statement of Comprehensive Income for the year ended
29 February 2024:
Sales
Cost of sales
Gross profit
Other income
Gross operating income
Operating expenses
Audit fees 61 000
Salaries and wages 1 120 000
Insurance 29 000
Directors fees 950 000
Operating profit 1 851 950
Interest income
Operating profit before interest expense
Interest expense
Net profit before tax
Income tax
Net profit after tax 33
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Accounting P1 Answer book 4 KZN September 2024
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1.2.2 EQUITY AND LIABILITIES
Ordinary shareholders’ equity
Retained income 785 000
Non-current liabilities
Current liabilities
Total equity and liabilities 16
TOTAL MARKS
65
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Accounting P1 Answer book 5 KZN September 2024
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QUESTION 2
2.1 RETAINED INCOME
Balance at beginning 386 040
Final 133 344
9
2.2.1 Dividends paid
WORKINGS ANSWER
2.2.2 Taxation paid
WORKINGS ANSWER
2.3.1 Cash flow from investing activities
Change in financial assets 20 000 7
2.3.2 Net change in cash and cash equivalents
Cash and cash equivalents at beginning
Cash and cash equivalents at end 4
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Accounting P1 Answer book 6 KZN September 2024
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2.4.1 Dividends per share
WORKINGS ANSWER
2.4.2 Debt/Equity ratio
WORKINGS ANSWER
2.4.3 % return on average capital employed
WORKINGS ANSWER
TOTAL MARKS
40
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Accounting P1 Answer book 7 KZN September 2024
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QUESTION 3
3.1 Quote and explain TWO financial indicators to show which company is
managing its expenses more efficiently and is thereby more profitable.
3.2.1 Comment on the % return on shareholders’ equity of each company
3.2.2 A shareholder feels that earnings per share (EPS) in Umzinyathi Ltd are
better than that in Ilembe Ltd. Explain by quoting one financial indicator
or calculation why you agree with him.
3.3 Comment on the degree of risk and gearing of both companies.
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Accounting P1 Answer book 8 KZN September 2024
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3.4.1 Comment on the price paid for the shares repurchased by Umzinyathi
Ltd. Provide TWO points.
3.4.2 Calculate the number of shares that Happiness purchased in Ilembe Ltd
with the money he received from Umzinyathi Ltd.
NOTE: She used R51 800 to pay for her son’s school fees.
3.4.3 Explain the effect of the shares repurchased and the new shares
purchased on the % shareholding of Happiness in each company.
Provide relevant calculations to substantiate.
TOTAL MARKS
30
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Accounting P1 Answer book 9 KZN September 2024
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QUESTION 4
4.1 4.1.1
4.1.2
4.1.3
4.1.4 4
4.2.1 What is meant by good corporate governance.
3
Why it is important to the shareholders. Provide ONE point.
4.2.2 Explain a possible reason why Msizi Khumalo says he will vote against
the proposal by White Ltd.
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Accounting P1 Answer book 10 KZN September 2024
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4.2.3 Explain why you agree with them. Provide ONE point.
2
Give the directors advice on how they should handle this. Provide ONE
point.
TOTAL MARKS
15
TOTAL MARKS: 150
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