NATIONAL

SENIOR CERTIFICATE

GRADE 12

JUNE 2021

ACCOUNTING P2
MARKING GUIDELINE
(EXEMPLAR)
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 foreign item penalty for misplaced items). 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. In calculations, do not award marks for workings if numerator and denominator are swapped – this also
applies to ratios.
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 and one part correct’.
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 marking guideline.
13. Codes: f = foreign item; p = placement/presentation.

This marking guideline consists of 10 pages.

(EC/JUNE 2021) ACCOUNTING P2 2

QUESTION 1

1.1 True or False

1.1.1 True 

1.1.2 False 
2

1.2 CREDITORS’ RECONCILIATION

1.2.1
Creditors control Creditors list
Preliminary balance/total R589 010 R585 050
A + 5 630  + 5 630 
B + 360 
C + 645  + 645 
D - 900 
(-R450; - R450) (one mark
each)
E - 167 000  - 167 000 
(-83 500; - 83 500) (one mark (-83 500; - 83 500)
each)
F + 34 000  + 34 000 
G 0  0 
H - 4 500 

Correct balance/total 457 785 * 457 785 16

* 1 work with for both totals. Doesn’t need to be the same, but opening balance/total has to
be included.

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1.3 DEBTORS ANALYSIS

1.3.1 Give TWO reasons why preparing a Debtors age analysis is a useful
tool in managing debtors.

Any TWO  
 Help to identify problematic debtors
 Identify debtors who are not adhering to credit terms
 See how collections are made
4

1.3.2 Calculate the debtors’ collection period for 2020 and comment on your
findings. Keep in mind that the debtors’ collection period for 2019 was
calculated at 45 days. Provide figures in your comments.
Discuss TWO points of advice which you can offer to the credit
manager.
Calculation:

½ (68 540 + 104 190) x 365 = 70 days  One part correct
448 320

Comment:
The debtors’ collection period deteriorated from 45 days to 70 days, which
is bad for the liquidity of the business. 

Advice:
Any TWO  
 Encourage debtors to settle their accounts within 30 days by charging
interest on accounts in arrears or by offering discounts for early
settlements.
 No more credit sales allowed for debtors if account is not up to date.
 Remind debtors of oustanding amounts by sending them SMSs/e-mails. 10

QUESTION 1:
TOTAL MARKS 32

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(EC/JUNE 2021) ACCOUNTING P2 4

QUESTION 2

2.1 MATCHING CONCEPTS

2.1.1 C 

2.1.2 B 

2.1.3 A 
2.1.4 D 
4

2.2 INVENTORY

2.2.1 Calculate the value of closing stock for rugby jerseys.

988 x 500 = 494 000 

12 x 490 = 5 880  One part correct
499 880  One part correct

2.2.2 Calculate the cost of sales for rugby jerseys.

 One part correct

528 000 + 1 358 000 – 6 000 – 499 880 = 1 380 120

2.2.3 Calculate the mark-up percentage on rugby jerseys.

2 271 200 – 1 380 120 = 891 080 (GP)

 One part correct
891 080 x 100 = 64,6%  One part correct Accept 65%
1 380 120  See 2.2.2

2.2.4 How many months will it take to sell the rugby jerseys on hand on
31 May 2020?

 See 2.2.1 
499 880 x 12 = 4,2 months  One part correct
= 1 380 120
 See 2.2.2
4

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(EC/JUNE 2021) ACCOUNTING P2 5

2.2.5 Calculate the value of closing stock for rugby balls.

 One part correct
45 000 + 1 145 000 – 2 700 + 61 140 x 120 = 184 x 120 = 22 080
(300 + 6 500) – 15

4 marks
1 248 440 x 120 = 22 080
6 785
2 marks
8

2.2.6 Calculate the number of rugby balls missing on 31 May 2020.

   One part correct

(300 + 6 500) – 15 – 6 660 – 120 = 5

2.3 FIXED ASSETS

2.3.1 Calculate the cost of the additional garage that was built.

300 000 
1

2.3.2 Calculate the balance of the Accumulated Depreciation on Equipment

account on 30 April 2020. (You don’t need to show the account.)

1 440 000 x 20% = 288 000 one mark

But carrying value is only 120 000  Dep = 119 999 
Opening balance = 1 320 000 
1 439 999  One part correct
5

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(EC/JUNE 2021) ACCOUNTING P2 6

2.3.3 Complete the Accumulated Depreciation on Vehicles account. The

account must be balanced on 30 April 2020.

Accumulated Depreciation on Vehicles

2020 Asset disposal 271 200  2019 Balance b/d 192 000 
Jan 31 May 1
(192 999 + 79 200)
2020 Balance c/d 26 000  2020 Depreciation 79 200 
Apr 30 Jan 31
2020 Depreciation 26 000 
Apr 30
297 200 297 200
2020 Balance b/d 26 000 
May 1

10

2.3.4 Complete the Asset Disposal account.

Asset Disposal
2020 Vehicles  720 000  2020 Accumulated 271 200 
Jan 31 Jan 31
deprecia-tion on
Vehicles 
Profit on sale of asset 11 200  Creditors control  460 000 

731 200 731 200

QUESTION 2:
TOTAL MARKS 58

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(EC/JUNE 2021) ACCOUNTING P2 7

QUESTION 3
3.1 True or False

3.1.1 True 
3.1.2 False 
2

3.2.1 Note for Factory overhead costs

Indirect material (8 400 + 59 400  – 13 200 ) 54 600 *

Salary: Factory foreman / Indirect labour 288 000 
Electricity (78 408 x 75%) 58 806 *
Factory maintenance 81 000 
Rent expense (216 000 x 2/4) 108 000 *
Depreciation (97 500 x 80%) 78 000 *
668 406 *
12
* 1 part must be correct; -1 Foreign items; Max. 1

3.2.2 Production cost statement on 29 February 2020.

Direct labour (1 072 400 + 47 520 + 10 724 + 1 195 444 *

64 800 )
Direct material (115 800 + 1 445 400  – 46 200  1 503 600 *
+ 57 600  – 69 000 )
Prime cost DL + DM 2 699 044 
Factory overhead costs See 3.2.1 668 406 

Total manufacturing costs PC + FOC 3 367 450 

Work-in-process (1 March 2019) 218 400
3 585 850
Work-in-process (28 February 2020) (120 600) 

Cost of production of finished goods 3 465 250 

16
* 1 part must be correct

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3.3 COST ACCOUNTING

3.3.1 Calculate the break-even point for 2020.

2 marks
2 193 510 + 990 000 = 3 183 510 = 96 470  One part correct
80 – (18 + 22 + 7) 33
3 marks

6

3.3.2 Calculate the units produced during 2020. (All products were sold.)

1 981 800 / 18 = 110 100  One part correct

OR 2 422 200 / 22 = 110 100
OR 770 700 / 7 = 110 100
2

3.3.3 Should Mickey, the owner, be concerned about the level of production
for Nail Art? Give TWO reasons, with supporting figures, to motivate your
answer.

TWO reasons   Figures  

Mark comments on 2020, according to candidate’s calculations.

No need for concern.

During 2019, 92 000 units were produced and sold and the break-even was
102 000. No profits were made.
During 2020, 110 100 (see 3.3.2) units were produced and sold and the break-
even was 96 470 (see 3.3.1). Profits were made on 13 630 units.
4

QUESTION 3:
TOTAL MARKS 42

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(EC/JUNE 2021) ACCOUNTING P2 9

QUESTION 4

4.1 CONCEPTS

4.1.1 External 
4.1.2 Shareholders 
2

4.2.1 What kind of audit report did Knights Sports Ltd receive for the financial
year ended 31 May 2020? Give ONE reason for your answer.

Unqualified 

The report states that the statements fairly represent the financial position.  2

4.2.2 Why does the Companies Act in South Africa require public companies
to be audited?

Any ONE 

To protect shareholders.
Public funds are used.
To be accountable to stakeholders eg. shareholders, SARS.
To discourage fraud.
2

4.2.3 The directors feel that the audit fees charged by the external auditors are
excessive. Explain how better internal control will have a positive effect
on fees charged by the external auditors.

Any ONE 

Internal auditors will correct mistakes made by bookkeepers.

Internal auditors will make sure all documents are in order and easy to find.
External auditors will spend less time on the auditing process.
2

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(EC/JUNE 2021) ACCOUNTING P2 10

4.3.1 To which GAAP principle was the internal auditor referring to when he
expressed his concern about this matter?

(Business) entity principle 

4.3.2 Give TWO consequences for the company should the CEO ignore the
internal auditors’ advice.

Any TWO responses  

The external auditor could classify the audit report as a qualified report
The extra expense would lead to a smaller profit and this could result in
smaller dividends for shareholders
Suspicions could be cast over the ethics of the CEO and the company
Lack of confidence in the CEO and the company
4

4.3.3 At the annual general meeting (AGM), the directors suggested that the
company should sponsor a childcare facility in the local community.
Give TWO reasons why companies would get involved in these kinds of
activities.

Any TWO responses  

Investing in the community from which it gains profits

Corporate social responsibility
Investment in the community to enhance goodwill
Create a good/positive image of the company
BEE points for development
Tax deductible
4

QUESTION 4:
TOTAL MARKS 18

TOTAL: 150

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