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NATIONAL
SENIOR CERTIFICATE

GRADE 11

NOVEMBER 2023

ACCOUNTING P2

MARKS: 150

TIME: 2 hours

This question paper consists of 13 pages, a 9-page

answer book and a financial indicator formula sheet.
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ACCOUNTING P2 (EC/NOVEMBER 2023)

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(EC/NOVEMBER 2023) ACCOUNTING P2 3

INSTRUCTIONS AND INFORMATION

Read the following instructions carefully and follow them precisely.

1. Answer ALL questions.

2. A special ANSWER BOOK is provided in which to answer ALL questions.

3. A Financial Indicator Formula Sheet is attached at the end of this question paper.

4. Show ALL workings to earn part-marks.

5. You may use a non-programmable calculator.

6. You may use a dark pencil or blue/black ink to answer questions.

7. Where applicable, show ALL calculations to ONE decimal point.

8. Write neatly and legibly.

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

QUESTION TOPIC MARKS MINUTES

1 Reconciliations 40 30

2 Cost Accounting 40 35

3 Budgeting 40 30

4 VAT and Fixed Assets 30 25

TOTAL 150 120

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ACCOUNTING P2 (EC/NOVEMBER 2023)

QUESTION 1: RECONCILIATIONS (40 marks; 30 minutes)

1.1 BANK RECONCILIATION

AQUA STORES

The information relates to August 2023. The owner, Flavo, uses the official
bank statement which is available on the 26th of each month, to complete the
monthly bank reconciliation process.

REQUIRED:

1.1.1 Update the Cash Journals by completing the tables provided in the
ANSWER BOOK. (14)

1.1.2 Calculate the correct Bank Account balance on 31 August 2023. (4)

1.1.3 Prepare the Bank Reconciliation Statement on 31 August 2023. (7)

1.1.4 Explain any TWO different internal control measures that Flavo can
implement, based on a problem you identified in the information
provided. List the problem identified and the possible internal control
measures in the table provided in the ANSWER BOOK. (3)

INFORMATION:

A. Extract from the Bank Reconciliation Statement on 31 July 2023:

Outstanding deposits: Dated 17 July 2023 R 27 600
Dated 27 July 2023 21 900
Outstanding EFTs: No. 662 7 530
No. 663 11 290
Unfavourable balance as per Bank Account 7 440
NOTE:
• The deposit on the 17 July for cash sales, was reflected on the
August bank statement as R20 000. The balance must be written off,
as the cashier in charge no longer works here.

• EFT No. 662 for stationery purchased, appeared on the August bank
statement with the correct amount of R3 750.

• All other entries were correctly captured on the August bank

statement.

B. On 31 August 2023, the provisional totals in the cash journals were:

Cash Receipts Journal Cash Payments Journal
R 117 600 R 126 200

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(EC/NOVEMBER 2023) ACCOUNTING P2 5

C. Extract of the Bank Statement on 26 August 2023:

AMOUNT
DETAILS
R
Deposit: M. Shaba 9 000
Cash handling Fees 270
Debit order: BC Municipality 2 360
EFT Charges 230
Deposit S. Deley 4 160
Debit order: BC Municipality 2 360
EFT: George Garage 1 340
Koel Insurers 1 860
• The deposit from M. Shaba is for the monthly rent income.

• The debit order to BC Municipality was for rates and taxes.

Note that payment was duplicated on the statement in error. The
bank will rectify this on the next statement.

• The deposit from debtor S. Deley is in settlement of his account of

R4 500.

• The EFT to George Garage was for petrol for Flavo’s private vehicle.
He neglected to hand over the slip to the bookkeeper to record the
transaction.

• The payment to Koel Insurers is for the business insurance.

D. Entries in the August 2023 cash journals that did not appear on the
August bank statement are the following:

• Deposit on 28 August 2023, R22 750

• EFT No. 816 for R3 370
• EFT No. 817 for R9 180

E. Bank statement balance on 26 August 2023: R ?

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ACCOUNTING P2 (EC/NOVEMBER 2023)

1.2 CREDITORS RECONCILIATION

Simple Stores buys goods on credit from Nandu Suppliers. A statement of

account was received on 28 August 2023. The balance did not correspond
with the balance on the Creditors Ledger account of Nandu Suppliers.

REQUIRED:

Complete the table provided in the ANSWER BOOK, to show the effect of
each error or omission. Indicate an increase (+) or decrease (-) next to each
amount. (12)

INFORMATION:

Balance of the Creditor’s Ledger account of Nandu

R40 100
Suppliers in the books of Simple Stores
Balance as per the statement received from Nandu
R21 020
Suppliers

ERRORS AND OMISSIONS:

A. Simple Stores reflected a credit invoice of R8 800 in the Creditors

Ledger account of Nandu Suppliers. This was for goods purchased
from Nandosile Dealers.

B. An allowance of R1 740 for damaged goods returned was recorded as

an invoice in the creditor’s ledger account of Nandu Suppliers.

C. An invoice for R15 200 was incorrectly reflected as R12 500 on the
statement received from Nandu Suppliers.

D. Simple Stores recorded a 10% discount on an EFT payment of R9 600.

This did not appear on the statement. Nandu Suppliers stated that the
discount should have been 5% and will include this on the next
statement.

E. Nandu Suppliers did not deduct the 10% trade discount on a credit
invoice for goods purchased. The correct net amount of R11 160 was
recorded in the creditor’s ledger account in the books of Simple Stores.

F. An invoice for goods purchased for R6 300 on 30 August 2023 was not
on the statement from Nandu Suppliers. The statement date is
28 August 2023.

40

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(EC/NOVEMBER 2023) ACCOUNTING P2 7

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ACCOUNTING P2 (EC/NOVEMBER 2023)

QUESTION 2: COST ACCOUNTING (40 marks; 35 minutes)

2.1 WESTERN MANUFACTURERS

The business manufactures school jackets. The financial year ended on

28 February 2023.

REQUIRED:

2.1.1 Calculate the following for the financial year:

• Direct material cost (5)

• Direct labour cost (7)

2.1.2 Refer to Information D

Calculate the correct factory overhead cost by taking into account the
errors and omissions. Indicate an increase (+) or decrease (-) to the total
given. Show all workings. (8)

2.1.3 Prepare the Work-in-progress stock account in the General Ledger. (7)

INFORMATION:

A. Stock balances:

28 FEBRUARY 2023 1 MARCH 2022

R R
Raw material 62 300 56 700
Work-in-progress 47 760 71 300

B. Transactions for the year:

(i) Raw material purchased amounted to R522 000.

(ii) Damaged raw material cost R11 200 was sent back to suppliers.

C. Details of workers in production:

Number of workers 6
Normal hours worked (basic) 1 640 hours per worker
Normal time rate R40 per hour
Total overtime hours for all workers 525 hours
Overtime rate 60% more than normal time rate.
The business contributes 1% to the UIF and 9% to a pension fund on behalf
of all employees, based on their normal (or basic) wages.

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(EC/NOVEMBER 2023) ACCOUNTING P2 9

D. The bookkeeper calculated the factory overhead costs as R321 580.

The following errors and omissions were noted:

(i) The wages of the cleaner were not taken into account. The cleaner
earns R64 800 per year. 65% of his time is spent in the factory.
(ii) 70% of the rent expense must be allocated to the factory. The entire
rent expense of R126 000 was recorded in the factory overhead cost.
(iii) Water and electricity must be allocated in the ratio 5 : 2 between the
factory and the sales department. The bookkeeper however,
transferred half the water and electricity expense, R28 700, to the
factory overhead account.

2.2 NELSON’S FACTORY

Nelson John, the owner presented the following analysis of costs, sales and
production of electric heaters. The financial year ended on 30 June 2023.
The heaters are sold at a profit mark-up of 60% on cost.
REQUIRED:

2.2.1 Calculate the break-even point for the year ended 30 June 2023. (4)

2.2.2 Explain whether Nelson should be satisfied with the level of production
achieved for this financial year. Quote figures. (3)

2.2.3 Identify TWO costs that should be of concern to Nelson. Quote figures.
In EACH case, provide a possible solution to address the concern. (6)
INFORMATION:
30 June 2023 30 June 2022
TOTAL UNIT PRICE UNIT PRICE
R R R
Direct Material Cost 900 000 180,00 155,00
Direct Labour Cost 820 000 164,00 163,00
Selling and Distribution Cost 330 000 66,00 50,00
TOTAL VARIABLE COST 2 050 000 410,00
Factory Overhead Cost 475 000 95,00 113,00
Administration Cost 100 000 20,00 24,00
TOTAL FIXED COST 575 000 115,00 137,00

Selling price per unit 535,00 540,00

Units produced and sold 5 000 units 4 200 units

Break-even point ? 3 344 units

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ACCOUNTING P2 (EC/NOVEMBER 2023)

QUESTION 3: BUDGETING (40 marks; 30 minutes)

SHEPSTONE STORES
Information from the records is for the budget period ending 31 December 2023.
The business, owned by Cloe Dash, sells furniture.
REQUIRED:
3.1 Complete the Debtors Collection Schedule presented in the ANSWER BOOK. (8)
3.2 Calculate the missing amounts denoted by (i) to (vi) on the extract of the Cash
Budget for November and December 2023. (16)
3.3 Calculate the % increase in salaries of office workers and explain TWO points
why they should be satisfied with the increase they will receive in December. (6)
3.4 Cloe plans to purchase a delivery a vehicle during December 2023, and offer a
free delivery service in the new year.
3.4.1 Calculate the total cost to the business, for the purchase of this delivery
vehicle (including interest and finance charges). (4)

3.4.2 Identify TWO additional items that must be included on the budget once
the vehicle is purchased. (2)

3.4.3 Besides the possibility of increased sales, explain TWO other advantages
of the business purchasing the vehicle. (4)

INFORMATION:

A. Sales figures for the budget period:

SEPTEMBER OCTOBER NOVEMBER DECEMBER

Total Sales R665 000 R675 500 R647 500 R630 000
• Goods are sold at a profit mark-up of 75% on cost.
• Cash sales amounts to 40% of total sales.

B. Credit sales are collected according to the following trend:

• 40% in the month of sale (these debtors receive a 5% discount)

• 45% in the month following the month of sale
• 12% two months after the sales month
• 3% is written off as bad debts

C. Purchases and payment to creditors:

• Stock sold is replaced in the month of sale (a base stock is maintained).

• All purchases of trading stock are made on credit.
• Creditors are paid in the month following the month of purchase.

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(EC/NOVEMBER 2023) ACCOUNTING P2 11

D. Additional information:

• Rent income is expected to increase by 9% p.a. from 1 December 2023.

• A loan will be received on 1 November 2023.
A fixed monthly instalment will be paid at the end of each month.
Interest at 13% p.a. will also be paid at the end of each month.
• Insurance will increase by 6% p.a. from 1 December 2023.
• The owner will decrease his drawings from 1 December 2023, to R7 500
per month. 25% of this will be in the form of stock.

E. Details of the purchase of the delivery vehicle:

• A deposit of 20% of the marked price of the vehicle will be paid.
• After the dealership has calculated the total interest and finance
charges, a monthly instalment of R12 650 will be paid over 36 months.

F. Extract of the Debtors Collection Schedule:

Credit
Month OCTOBER NOVEMBER DECEMBER
sales
SEPT 399 000 179 550 47 880
OCT 405 300 154 014 * *
NOV 388 500 * 174 825
DEC * 143 640
TOTAL

G. Extract of the Cash Budget for November and December 2023:

NOV DEC
RECEIPTS R R
Cash sales (i) 252 000
Rent income 10 200 (ii)
Loan: Nerd Bank (iii)

PAYMENTS
Payments to creditors (for stock) 386 000 (iv)
Insurance (v) 3 975
Drawings 9 500 (vi)
Salaries: office workers 67 500 70 200
Salaries: managers 92 000 94 300
Delivery expenses (FastG Services) 25 900 25 200
Deposit for delivery vehicle - 76 000
Instalment: delivery vehicle - 12 650
Instalment on loan 12 000 12 000
Interest on loan 5 200 ?

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ACCOUNTING P2 (EC/NOVEMBER 2023)

QUESTION 4: VAT AND FIXED ASSETS (30 marks; 25 minutes)

4.1 VALUE ADDED TAX (VAT)

Lashes Traders is a registered VAT vendor. He stocks goods that are zero-rated
as well as goods that are subject to the standard VAT rate of 15%.
REQUIRED:
4.1.1 Provide ONE explanation why some goods are classified as zero-rated. (2)
4.1.2 Calculate the missing amount in the table provided:
AMOUNT EXCLUDING AMOUNT
VAT AMOUNT
VAT INCLUDING VAT
86 000 (i) 98 900
98 000 (ii)
(iii) 62 790
11 910 (iv) (8)

4.2 FIXED ASSETS

The information relates to SS Consultants for the financial year ended
28 February 2023. The owner, Sydney, changed the recording of equipment.
• It was decided to record the five computers separately from other equipment.
• The depreciation policy was amended on 1 March 2022, as follows:
o Computers: 25% on cost
o Other equipment: 20% on carrying value
• Three of the five computers were replaced for later models on 31 July 2022.
Note that the old computers were purchased on the same date for R17 200
each. An EFT payment for the full amount was paid on that date.
REQUIRED:
4.2.1 Provide TWO reasons why Sydney wanted to replace some assets. (4)
4.2.2 Explain why Sydney wanted to record the computers separately. (2)
4.2.3 Prepare the following accounts in the General Ledger:
• Computers (at cost) on 28 February 2023. (7)
• Asset Disposal account on 31 July 2022. (7)
Information extract from the Fixed Asset Register:

28 Feb 2023 28 Feb 2022

Computers (at cost) R 95 900 R 86 000
Accumulated depreciation on computers ? 38 700
Equipment (cost) 426 000 426 000
Accumulated depreciation on equipment ? 255 600
* Accumulated depreciation on the computers sold was R23 220 on
1 March 2022. They were sold for R3 000 each to employees. The employees
paid cash for these computers.
30

TOTAL: 150

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(EC/NOVEMBER 2023) ACCOUNTING 13

GRADE 11 ACCOUNTING FINANCIAL INDICATOR FORMULA SHEET

Gross profit 100 Gross profit 100 Net profit 100

x x x
Sales 1 Cost of sales 1 Sales 1

Operating expenses 100 Operating profit 100

x x
Sales 1 Sales 1

Total earnings by partner 100 Net profit 100

'
x x
Partner s Average equity 1 Average owners equity 1

Current assets : Current liabilities (Current assets – Inventories) : Current liabilities

(Trade and other receivables + Cash and cash equivalents) : Current liabilities

Average debtors 365 Average creditors 365

x x
Credit sales 1 Credit purchases 1

Average inventories 365 or 12 Cost of sales

x
Cost of sales 1 Average inventories

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

Total fixed costs

Selling Price per unit – Variable Costs per unit

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NAME OF LEARNER:

NAME OF SCHOOL:

NATIONAL
SENIOR CERTIFICATE

GRADE 11

NOVEMBER 2023

ACCOUNTING P2
ANSWER BOOK

MAXIMUM MARKS MODERATED

QUESTION
MARKS OBTAINED MARKS

1 40

2 40

3 40

4 30

150

This answer book consists of 9 pages.

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ACCOUNTING P2 (ANSWERBOOK) (EC/NOVEMBER 2023)

QUESTION 1: RECONCILIATIONS

1.1.1 CASH RECEIPTS JOURNAL

DETAILS OF SUNDRY ACCOUNT AMOUNT

TOTAL b/f 117 600

CASH PAYMENTS JOURNAL

DETAILS OF SUNDRY ACCOUNT AMOUNT
TOTAL b/f 126 200

1.1.2 Calculate the correct Bank Account Balance.

1.1.3 BANK RECONCILIATION STATEMENT ON 31 AUGUST 2023

DEBIT CREDIT

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P2 (ANSWERBOOK) 3

1.1.4 Explain any TWO different internal control measures that Flavo can
implement, based on a problem you identified in the information
provided.

PROBLEM IDENTIFIED TWO INTERNAL CONTROL MEASURES

1.2 CREDITORS RECONCILIATION

Reconciling the Creditors Ledger account with the Statement

CREDITOR LEDGER
STATEMENT FROM
No. ACCOUNT OF
NANDU SUPPLIERS
NANDU SUPPLIERS
Balance 40 100 21 020
A
B
C
D
E
F

TOTAL
12

Q1 40

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ACCOUNTING P2 (ANSWERBOOK) (EC/NOVEMBER 2023)

QUESTION 2: COST ACCOUNTING

2.1.1 Calculate:
Direct material cost
WORKINGS ANSWER

5
Direct labour cost
WORKINGS ANSWER

2.1.2 FACTORY OVERHEAD COST

TOTAL BROUGHT FORWARD 321 580

TOTAL
8

2.1.3 GENERAL LEDGER OF WESTERN MANUFACTURERS

WORK-IN-PROGRESS STOCK ACCOUNT

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P2 (ANSWERBOOK) 5

2.2 NELSON’S FACTORY

2.2.1 Calculate the break-even point for the year ended 30 June 2023.

2.2.2 Explain whether Nelson should be satisfied with the level of

production achieved for this financial year. Quote figures.

2.2.3 Identify TWO costs that should be of concern to Nelson. Quote figures.
In EACH case, provide a possible solution to address the concern.
COST IDENTIFIED
SOLUTION TO ADDRESS THE CONCERN
(with figures)

Q2 40

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ACCOUNTING P2 (ANSWERBOOK) (EC/NOVEMBER 2023)

QUESTION 3: BUDGETING

3.1 DEBTORS COLLECTION SCHEDULE

Month Credit sales OCTOBER NOVEMBER DECEMBER

SEPTEMBER 399 000 179 550 47 880
OCTOBER 405 300 154 014
NOVEMBER 388 500 174 825
DECEMBER 143 640

3.2 Calculate: (i) Cash sales for November 2023

WORKINGS ANSWER

2
Calculate: (ii) Rent income for December 2023
WORKINGS ANSWER

2
Calculate: (iii) Loan that will be received in November 2023
WORKINGS ANSWER

4
Calculate: (iv) Payment to creditors in December 2023
WORKINGS ANSWER

3
Calculate: (v) Insurance for November 2023
WORKINGS ANSWER

3
Calculate: (vi) Drawings in December 2023
WORKINGS ANSWER

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P2 (ANSWERBOOK) 7

3.3 Calculate: The % increase in salaries of office workers.

WORKINGS ANSWER

4
Explain TWO points why they should be satisfied with the increase they
will receive in December.

3.4.1 Calculate: total cost relating to the purchase of the vehicle

WORKINGS ANSWER

4
3.4.2 Identify TWO additional items that must be included on the budget once
the vehicle is purchased.

2
3.4.3 Besides the possibility of increased sales, explain TWO other advantages
of the business purchasing the vehicle.

Q3 40

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ACCOUNTING P2 (ANSWERBOOK) (EC/NOVEMBER 2023)

QUESTION 4: VAT AND FIXED ASSETS

4.1.1 Provide ONE explanation why some goods are classified as zero-rated.

4.1.2 VAT CALCULATIONS:

WORKINGS ANSWER
(i)

(ii)

(iii)

(iv)

4.2 FIXED ASSETS

4.2.1 Provide TWO reasons why Sydney wanted to replace some assets.

4
4.2.2 Explain why Sydney wanted to record the computers separately.

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P2 (ANSWERBOOK) 9

4.2.3 GENERAL LEDGER OF SS CONSULTANTS

COMPUTERS B8

7
ASSET DISPOSAL ACCOUNT N9

Q4 30

TOTAL: 150

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