JUNE EXAMINATION

GRADE 12
2025
MARKING GUIDELINES
ACCOUNTING
(PAPER 2)
12 pages
MARKING PRINCIPLES:
1. Unless otherwise stated in the marking guidelines, penalties for foreign items are applied only if the candidate
is not losing marks elsewhere in the question for that item (no 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. Unless otherwise stated, give full marks for correct answers. If an answer is incorrect, mark workings.
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). Note: if figures are stipulated in the marking guidelines for components of
workings, these do not carry the method mark for final the answer as well.
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. If candidates provide more than the required number of responses, inspect all responses to give benefit to the
candidate. Penalties may be applied for foreign entries if candidates earn full marks on a question
(max. –2 per Q).
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.
10. Operation means 'check operation'. 'One part correct' means operation and one part correct. Note: check
operation must be +, –, x, ÷, or per marking guidelines.
11. In calculations, do not award marks for workings if the numerator & denominator are swapped – this also
applies to ratios.
12. In awarding method marks, ensure that candidates do not get full marks for any item that is incorrect at least
in part. Indicate with a .
13. Be aware of candidates who provide valid alternatives beyond the marking guideline. Note that one comment
could contain different aspects.
14. Codes: f = foreign item; p = placement/presentation; s = superfluous item
 ACCOUNTING
MARKING GUIDELINES
(PAPER 2) GR12 0625

QUESTION 1: COST ACCOUNTING (56 marks; 45 minutes)

1.1 CONCEPTS
1.1.1 False 
1.1.2 True 
1.1.3 False  3
(Accept abbreviations T or F.)

1.2 EASY DRINK MANUFACTURERS

1.2.1 Calculate the direct material issued for the year ended 30 April 2025.
Opening Stock 38 000 

Net purchases (2 300 x 2,60)

(280 000  – 5 400  – 2 600  + 5 980 ) 277 980*

Carriage on purchases 5 548  *

(5 600 – 52) or (280 000 – 2600 x 2/100)
Custom duties (5 980 check purchases x 30%) 1 794 

Closing stock (24 222) 

Raw material issued check operation 299 100*

*one part correct 13

1.2.2
Calculate the direct labour cost for the year ended 30 April 2025.
WORKINGS ANSWER

200 x R38 x 45 342 000 

Must be
basic wage x 1%
342 000 x 1% 3 420 
(38 x 1.25)
Or (38 x 5/4)
284 x [38 + 9,50] or 284  x 47,50 
Or 284 x [38 + (38 x ¼)] 13 490 
Or 284 x [38 + (38 x 0.25)]
8
If learners only used ¼ instead of 1¼:
284 x 9,50  = 2 698 
Or 284 x [38 x ¼]
Or 284 x [38 x 0.25]

Total 358 910

Total if only used ¼ instead of 1¼ = 348 118 

2
 ACCOUNTING
MARKING GUIDELINES
(PAPER 2) GR12 0625

1.2.3 Complete the Factory Overhead Cost Note for the year ended
30 April 2025.

Indirect materials [7 400  + 36 550 – 8 150 ] x 35% 12 530 *

Indirect labour (13 000 x 13) or 156 000 + 13 000 169 000 

Water and electricity (18 954 x 7/2) 66 339 

Rent expense (66 800 – 5 600)  x 610/1 000  37 332 *

Deprecation for factory equipment 28 690 

Insurance (15 000 x 5/6) 12 500 

or 15 000 x 5/3 x 3/6
Telephone (10 000 + 1 825) 11 825 

338 216 *
*one part correct
-1F if depreciation of delivery vehicles added 17

1.3 SEGAL MANUFACTURERS

1.3.1 Complete the missing figures marked with an asterisk (*).

Costs Total Unit Cost Unit Cost

2025 2024
Direct materials R250 000 *R10  R12
Direct labour *R375 000  *R15  R11
Direct costs *R625 000  R25 R23
Factory overheads R200 000 R8 R10
Administration costs R75 000 R3 R3
Selling and distribution R100 000 R4 R2

Calculations just for clarity, not for marking *250 000 / 25 000 = 10 * 25 – 10 = 15 4
*15 x 25 000 = 375 000 *250 000 + 375 000 = 625 000
1.3.2
Calculate the unit cost of production for 2025.
WORKINGS ANSWER
[625 000 + 200 000]
825 000/25 000
R33 
OR 25 + 8 2

3
 ACCOUNTING
MARKING GUIDELINES
(PAPER 2) GR12 0625

1.3.3 Calculate the break-even point for 2025.

WORKINGS ANSWER
275 000 
[200 000 + 75 000] 8 871 units
60 – (25+4) 
Accept 8870.97 or
29 one mark 8870.9
31 two marks 5

1.3.4 Comment on the level of production and break-even point of the

company in 2025.
Comparison production with break-even (Two marks)
Figures. (Two marks)
Mark according to learners break-even calculations in 1.3.3.

Possible answers for four marks:

(Mark only one of the following answers for four marks)

 In 2025 production of 25 000 units was more than the break-even

point of 8871 units / by 16 129 units / made profit on 16 129 units /
made a profit of 16 129 x 31 = R499 999 (check learner calculation)

 In 2025 they earned profit on 16 129 units or (25 000 – 8 871),

which is more than the profit earned in 2024 of 5 440 units (18 000 –
12 560) / Making profit on 10 689 units more than in 2024.

Max two marks for the following answers:

(Mark only one of the following answers for two marks)

 In 2025 the production of 25 000 units was more than the production
of 18 000 units in 2024/ by 7 000 units.

 In 2025 the break-even point of 8871units was less than the break-
even point of 12 560 units in 2024 / by 3 689. 4

56

4
 ACCOUNTING
MARKING GUIDELINES
(PAPER 2) GR12 0625

QUESTION 2: INVENTORIES (48 marks ; 38 minutes)

2.1 2.1.1 C SIM/Specific identification 

2.1.2 A FIFO/First-In First-out 
2.1.3 B WAM / Weighted-average  3
Accept letter or name of stock valuation method or abbreviation.

2.2 MB SPORT SHOP

2.2.1 Calculate the value of the closing stock on 28 February 2025, using
the weighted average method.
WORKINGS ANSWER
 
  [-30 500 – 700]
[R420 850 + R4 302 500] + R110 250 – R31 200 x 465
[350 + 3 150 – 20 ]  1 Must be x 465
3 480 (two marks) R 641 700 

or
4 802 400 (four marks) x 465
3 480 (two marks)

or
(six marks)
1 380 x 465 7

2.2.2 Calculate the cost of sales for the year ended 28 February 2025.
WORKINGS ANSWER

4 802 400  see 2.2.1 – 641 700  see 2.2.1 R4 160 700 

2.2.3
Calculate the gross profit for the year ended 28 February 2025
WORKINGS ANSWER

See 2.2.2
5 400 000  – 4 160 700  R1 239 300  3

5
 ACCOUNTING
MARKING GUIDELINES
(PAPER 2) GR12 0625

2.2.4
Calculate the percentage mark-up achieved for the year ended
28 February 2025.
WORKINGS ANSWER

R 1 239 300  see 2.2.3 x 100 29,8% 

R 4 160 700  see 2.2.2 1 accept
29,79%
Must x 100
Do not accept
0,298
Ignore % 3

2.2.5 The owner of the business asked you to calculate the closing stock
value using the first-in first-out method.
WORKINGS ANSWER
465 units
(1 525 + 35)
(450 – 20) 430  x 1 560  = 670 800 (Three marks)
(1 475 + 35) R723 650
(465 – 430) 35  x 1 510  = 52 850 (Two marks)

*Or

(450 – 20) 430  x 1 525 = 655750 (Two marks)

(465 – 430) 35  x 1475 = 51 625 (One mark)

465 x 35   = 16 275 (Two marks)

* Mark one of the two options. 6

6
 ACCOUNTING
MARKING GUIDELINES
(PAPER 2) GR12 0625

2.2.6 The owner heard that he could adjust the profit by changing the stock
valuation method from the weighted-average method to the first-in
first-out method.

(i) Explain the difference between the stock valuation methods to the
owner.
The closing stock value is higher  when using the FIFO method, therefore
cost of sales will be less  and gross profit will be higher  as with the
weighted-average method.

or

With the weighted-average method the closing stock will be less, cost of sales
higher and the profit less than with FIFO.

or

Gross profit will be higher if using the FIFO method and gross profit will be
less when using the weighted-average method. 
If only mentioned one valuation method 2 marks. Must mention both
methods for this alternative for three marks.
(if just refer to profit, accept that they had to have stock and cost of
sales correct to know the correct trend of profit)

or

With FIFO stock valuation is done at the last purchases prices, where
weighted average stock valuation is done at an weighted average price
which can still include old/cheaper purchases prices. 3

(ii) What advice will you give the owner about changing from one stock
valuation method to another?
Any one valid reason 

 He should not do it to manipulate figures/financial information.

 He should get permission from SARS before he changes the stock
valuation method.
 Will not be able to compare different years if change methods.
 If valuation method changes, it must be mentioned as a note to the
financial statements.
2

7
 ACCOUNTING
MARKING GUIDELINES
(PAPER 2) GR12 0625

2.2.7 Calculate how long (in days) it is expected to take sell the closing
stock of 465 cricket bats.
WORKINGS ANSWER
Method mark
See 2.2.1 Only If x 365
641 700  x 365
4 160 700  1 56.3 days 
See 2.2.2 Accept 56.29

or: IF UNITS ARE USED or

465 /3 000  x 365 56.6 days 

Accept 56.58
If using FIFO instead of weighted average:

See 2.2.5
723 650  x 365 64.8 days 
4 078 750  1 Accept 64.76
[4 802 400 - 723 650]
See 2.2.1 See 2.2.5

3
2.2.8
(i) Provide a calculation to support Mango Brand’s concern about the
control of cricket bats.
WORKINGS ANSWER

350  + 3 150  – 20  – 3 000  – 465  15 units

missing 
Or
(see 2.2.1)
420 850 + [4 302 500+ 110 250]  – 31 200 
- 4 140 000 = 662 400 – 641 700  R20 700
(3 000 x 1 380)
(see 2.2.1)

Or

If used FIFO:
(see 2.2.1)
420 850 + [4 302 500+ 110 250]  – 31 200
- 4 056 100 = 746 300 – 723 650  R22 650
(Cost of sales) (see 2.2.5)

FIFO cost of sales if calculated without missing stock

420 850 + 1 413 500 + 1 315 750 + 906 000

8
 ACCOUNTING
MARKING GUIDELINES
(PAPER 2) GR12 0625

(ii) What entry would you make in the books to record this problem?
Explain.
Debit: Trading stock deficit or loss due to theft. 
Credit: Trading stock.  or Purchases

One mark for valid explanation

Missing stock will be a loss to the business / will be an expense making

the profit less. / Trading stock account will decrease due to theft/
Prudence principle followed not to overstate the profit. 3

(iii) How can Mango Brand solve this problem? Provide THREE points.
Expected responses for two marks each.   
 Count stock regularly/randomly and check against stock records.
 Order smaller quantities, but more frequently.
 Improve physical security e.g. controls at the entrance/security
cameras/ security codes on items
 Restrict access to the storeroom
 Segregation of duties ordering and receiving not the same person.
 Rotation of duties.
 Searching of employees when entering and leaving storeroom……
 Special cabinets to lock items in.

Expected responses for one mark :

Stock count/Cameras 6

48

9
 ACCOUNTING
MARKING GUIDELINES
(PAPER 2) GR12 0625

QUESTION 3: MANAGEMENT OF FIXED ASSETS (34 marks; 27 minutes)

3.1 Calculate the TOTAL depreciation on vehicles for the year ended
28 February 2025.

216 000 x 20% x 8/12 28 800

80 640 one mark

[140 000 – 59 360]  x 20% x 4/12  5 376
449 360 two marks
530 000  – 80 640  x 20% 89 872

or
710 000 260 640
(850 000 - 140 000)  – (320 000 - 59 360)  x 20%

124 048 8

3.2 Calculate the rate of depreciation used by Bellairs Ltd to depreciate

their equipment.

[11 250 x 12/6]

22 500 
150 000  x 100 = 15% 

Or [11 250 x 100/1 x 12/6] x 1/150 000 = 15%

Mark one line/option

4

10
 ACCOUNTING
MARKING GUIDELINES
(PAPER 2) GR12 0625

3.3 Complete the extract of the Fixed Asset Note for the year ended
28 February 2025 by completing all the relevant amounts indicated
by A – H.
A 216 000 
B 140 000 – (59 360 + 5 376 see 3.1) 
140 000 – 64 736 or 80 640 – 5 376
75 264 two marks
C 124 048  (see 3.1 total)
D 850 000 + 216 000 – 140 000
926 000 
E [-59 360 - 5 376]
320 000 + 124 048 – 64 736
379 312  one part correct
F 926 000 (see D) – 379 312 (see E)
546 688 (If D – E)

or
530 000 + 216 000 -75 264 – 124 048 = 546 688
G 11250 + (56 000 – 1) or 55 999  = 67 249 (three marks)
Only one mark if
-1 but carrying value wrong

H (56 000 + 150 000) – 67 249  (see G) = 138 751 Two marks

Or [710 000 – 504 000] – 67 249 = 138 751 Two marks

Or 1 + [150 000 – 11 250] = 138 751 Two marks

138 750

Mark only one line/option

14

3.4

11
 ACCOUNTING
MARKING GUIDELINES
(PAPER 2) GR12 0625

Calculate the profit or loss on the disposal of the vehicle. Give advice 4
on what should be taken into account, when deciding to sell an asset.
Calculation:

73 360 – 75 264 (see 3.3 B) = 1904 (Loss) 

Accept T-account
140 000 (59 360+5 376) 64 736
73 360
1 904

Advice:  Any valid advice

 Carrying value must be taken into account when determining the price.
 Tender procedures must be followed.
 Cost of maintenance.
 If it still meets production requirements.

3.5 The business must establish internal controls to prevent the misuse of
vehicles. You have been approached to help improve internal controls.
Give TWO internal controls that can be implemented.
Any valid answer  

 Access control / allocate vehicles to specific individuals

 Vehicles must be locked in garage when not in use / vehicles must be
kept on premises
 Physical inspection before and after used
 Keys must be locked away and signed for
 Keep logbooks/ km readings
 Tracker installed in vehicles / dashboard camera

34

12
 ACCOUNTING
MARKING GUIDELINES
(PAPER 2) GR12 0625

QUESTION 4: PROBLEM-SOLVING (12 marks; 10 minutes)

Mark relevant problem and figures if in wrong columns/award for appropriate advice,
even if problem is unclear/incorrect. Be alert to additional correct options/ figures.
PROBLEM FOR 2025 ADVICE
(with figures) One per problem identified  
Any TWO valid problems   Mark advice independently
With figures   Different problems required
 Too much stock on hand (615 units)  Increase advertising.
increased by 208 units (from 407 to  Consider discounts.
615).  Reduce mark-up %.
 Order according to
 Drop in stock turnover rate 1,9 to 0,9 / sales/orders received.
high stock not moving/higher mark-up  Reduce mark-up % to
% also contributes to this. increase sales.
 Have clearance sales.
 Price too high (MU% increased from
Golf  Regular stock-take to assess
50% to 75%/a 25% increase/price
T-shirts available stock.
increase of R90 per unit (R630 –
R540).  Replace stock according to
units sold.
 Purchasing the same number of units  Security tags on products.
(800) despite having excess stock;  Physical inspection or
contributing to stockpiling. regular stock count.
 Install cameras.
 Stock items missing or stolen (42 units  Sell online.
or 407 +800 – 550 – 615).

13
 ACCOUNTING
MARKING GUIDELINES
(PAPER 2) GR12 0625

PROBLEM ADVICE
Two valid problems   One per problem identified  
with figures  
 Decrease in units sold:  Increase advertising.
290 (2 260 – 1 970) or  Encourage use of EFTs.
302 ( 2 182 – 1880)  Request sms notification for
OR drop in sales from deposits.
436 400 – 399 500/by 36 900/  Reconcile deposits with
8,5% OR by 86 900 (436 400 – items sold/sales deposits.
349 500)  Online sales/card payments
Shirts  Cash missing or stolen R50 000 – less cash handling.
(399 500 – 349 500) OR 69 125 (if  Daily depositing/routine.
returns not included).  Effect stricter return policy.
 High returns from customers ; 78 (3,5 %  Improve quality to reduce
of sale to 90 (4,6 % of sales). returns/do not buy inferior
(cheaper) products.
 Change styles of shirt/in
fashion.
 Train personnel to give the
best possible advice to
customers.

12
Total: 150

14