Accounting P1 Nov 2021 Answer Book Eng

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CENTRE NUMBER

EXAMINATION NUMBER

NATIONAL SENIOR CERTIFICATE


ACCOUNTING P1
GRADE 12
NOVEMBER 2021

SPECIAL ANSWER BOOK

QUESTION MARKS INITIAL MOD.


1
2
3
4
TOTAL

This answer book consists of 10 pages.

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Accounting/P1 2 DBE/November 2021
NSC – Answer Book

QUESTION 1

1.1 Calculate the value of the closing stock of formal suits that was omitted
from the stock sheets on 30 June 2021.
WORKINGS ANSWER

1.2 Calculate the correct net profit after tax for the year ended 30 June 2021.
Indicate '+' for increase and '–' for decrease.

NO. WORKINGS AMOUNT


Incorrect net profit before tax 4 918 950
(i) Audit fees

(ii) Interest on loan

(iii) Rent income

(vi) Income tax

Net profit after tax


12

1.3 Retained Income Note on 30 June 2021

Balance at beginning

Balance at end 3 240 000


5

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Accounting/P1 3 DBE/November 2021
NSC – Answer Book

JIMO LTD

STATEMENT OF FINANCIAL POSITION ON 30 JUNE 2021

Figures are NOT required in shaded areas.

ASSETS
NON-CURRENT ASSETS
Fixed assets
Financial assets
CURRENT ASSETS 8 700 000

TOTAL ASSETS

EQUITY AND LIABILITIES


SHAREHOLDERS' EQUITY

Retained income 3 240 000


NON-CURRENT LIABILITIES

CURRENT LIABILITIES

Bank overdraft

TOTAL EQUITY AND LIABILITIES


33

TOTAL MARKS

55

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Accounting/P1 4 DBE/November 2021
NSC – Answer Book

QUESTION 2

2.1 Ordinary Share Capital Note on 28 February 2021

800 000 Ordinary shares at the beginning

100 000 New shares issued

Shares at the end of the year 7 395 000


6

2.2 Calculate the following financial indicators on 28 February 2021:

% operating expenses on sales


WORKINGS ANSWER

2
Dividend per share
WORKINGS ANSWER

4
% return on average shareholders' equity
WORKINGS ANSWER

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Accounting/P1 5 DBE/November 2021
NSC – Answer Book

2.3 CASH FLOW STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2021

Figures are NOT required in shaded areas.

CASH FLOW FROM OPERATING ACTIVITIES 1 180 000


Cash generated from operations
Interest paid

CASH FLOW FROM INVESTING ACTIVITIES (1 320 000)

CASH FLOW FROM FINANCING ACTIVITIES

NET CHANGE IN CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS AT BEGINNING

CASH AND CASH EQUIVALENTS AT END


18

TOTAL MARKS

35

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Accounting/P1 6 DBE/November 2021
NSC – Answer Book

QUESTION 3

3.1 3.1.1
3.1.2
3.1.3
3.1.4 4

3.2 FLEXI LTD AND BROOM LTD

3.2.1 Profitability:
Quote and explain TWO financial indicators to show which company is
managing its expenses more efficiently, and is thereby more profitable.
Quote figures and trends.

3.2.2 Dividends, earnings and returns:


Comment on the dividend pay-out policy of Flexi Ltd. Explain why this is
an irresponsible change in policy. Provide TWO points. Quote figures
and trends.

4
Comment on the % return on shareholders' equity of EACH company.
Quote figures and trends.

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Accounting/P1 7 DBE/November 2021
NSC – Answer Book

A shareholder feels that earnings per share (EPS) in Broom Ltd are
better than that in Flexi Ltd. Explain why you agree with him. Quote
figures or calculations.

3.2.3 Shareholding of Bob Yates in both companies:


Comment on the price paid for the shares repurchased by
Flexi Ltd. Provide TWO points. Quote figures.

Calculate the number of shares that Bob purchased in Broom Ltd with
the money he received from the share buyback at Flexi Ltd.
WORKINGS ANSWER

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Accounting/P1 8 DBE/November 2021
NSC – Answer Book

Explain the effect of the share repurchase on the % shareholding of Bob


Yates in EACH company. Quote figures and trends.

3.2.4 Financing strategies and gearing:


Explain the decisions taken by the directors of Broom Ltd and how
these will benefit the company. Quote figures.

4
Explain how the decisions taken by Flexi Ltd affected the risk and
gearing of the business. Quote TWO financial indicators.

TOTAL MARKS

40

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Accounting/P1 9 DBE/November 2021
NSC – Answer Book

QUESTION 4

4.1 Explain why a disclaimer audit report would be bad for a company's
reputation. Provide TWO points.

POINT 1

POINT 2
4

4.2 One of the most important decisions that shareholders have to make at
the annual general meeting (AGM) is to appoint directors to serve on the
board.
Explain why the shareholders have been given this responsibility.

2
If you were a shareholder, what factors or characteristics would you
want to find out about the directors who would get your vote? Explain
TWO points and give a reason for EACH.
EXPLANATION REASON

POINT 1

POINT 2

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Accounting/P1 10 DBE/November 2021
NSC – Answer Book

4.3 A recent news report stated that a major company, Baxco Ltd, had been
awarded a tender to supply equipment worth R20 m to a chain of private
hospitals. The report accuses the CFO (chief financial officer) of that
company of paying R2 m in cash to the CEO of the hospital group.

As a shareholder, explain what you would say at the AGM. Provide TWO
points.

4.4 Refer to the question paper for an extract from the website and
Directors' Report of a major South African company.

In your opinion, explain why this major company found it necessary to


implement this policy. Provide TWO points.

TOTAL MARKS

20

TOTAL: 150

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