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    2023 FS Prelim P1 Answer Book (1)

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    rethabilenalana00

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    2023 FS Prelim P1 Answer Book (1)

    Uploaded by

    rethabilenalana00
    8 views9 pages

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    8 views9 pages

    2023 FS Prelim P1 Answer Book (1)

    Uploaded by

    rethabilenalana00

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 9

    sapapers.co.

    za

    SCHOOL: ________________________________________________________

    LEARNER: _______________________________________________________

    PREPARATORY EXAMINATION

    GRADE 12

    ACCOUNTING P1

    SEPTEMBER 2023

    ANSWER BOOK

    QUESTION MARKS INITIAL MODERATOR

    TOTAL

    This answer book consists of 9 pages.

    Copyright reserved Please turn over


    Accounting P1 2 FS/September 2023
    Grade 12 Prep. Exam. Answer Book

    QUESTION 1

    1.1
    1.1.1
    1.1.2
    1.1.3
    1.1.4
    4

    1.2 .1 THUTHUKANI LTD


    STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED
    28 FEBRUARY 2023
    Sales
    Cost of sales (1 845 000)
    Gross profit
    Other income
    Rent income (92 736
    Bad debts recovered (3 850

    Gross operating income


    Operating expenses
    Salaries and wages (360 500
    Stationery (24 684
    Insurance (46 500
    Directors' fees (276 000
    Audit fees (24 600
    Bad debts 16 680
    Depreciation 46 000
    Operating profit
    Interest income (12 400
    Profit before interest expense
    Interest expense
    Profit before income tax
    Income tax
    Net profit for the year 422 450 41

    Copyright reserved Please turn over


    Accounting P1 3 FS/September 2023
    Grade 12 Prep. Exam. Answer Book

    1.2.2 CALCULATE
    Net trade debtors
    Trade debtors (458 650
    4

    1.2.3 RETAINED INCOME


    Balance at the beginning of the year 1 682 458
    Net profit after tax 422 450

    Dividends
    Interim 21 600

    Balance at the end of the year 8

    1.2.4 Calculate the amount for Non-current Liabilities in the


    Statement of Financial Position on 28 February 2023.

    Mortgage loan: Westside Bank

    (760 000

    60

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    Accounting P1 4 FS/September 2023
    Grade 12 Prep. Exam. Answer Book

    QUESTION 2

    2.1 (i) The acid-test ratio

    (ii) The debt/equity ratio

    (iii) The return on average shareholders' equity

    2.2 Use the given information in D (i) to confirm the value of the
    closing stock on 28 February 2023 as R1 350 000.

    Copyright reserved Please turn over


    Accounting P1 5 FS/September 2023
    Grade 12 Prep. Exam. Answer Book

    2.3 Reconciliation between profit before taxation and cash


    generated from operations

    Profit before tax


    Adjustments in respect of:

    Operating profit before changes in working


    capital
    Changes in working capital

    Cash generated from operations 13

    2.4 Calculate the amount used for the purchase of fixed assets.

    2.5 Cash flows from financing activities

    2.6 Complete the net change in Cash and Cash equivalents as it


    would appear in the Cash Flow Statement.

    Net change

    45

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    Accounting P1 6 FS/September 2023
    Grade 12 Prep. Exam. Answer Book

    QUESTION 3

    3.1
    3.1.1
    3.1.2
    3.1.3
    3.1.4
    3.1.5
    5

    3.2 Explain why the market value is so important in this regard.

    If the company issued all its unissued shares the following


    year, how much capital could it expect to raise for the
    company?

    Copyright reserved Please turn over


    Accounting P1 7 FS/September 2023
    Grade 12 Prep. Exam. Answer Book

    3.3 Rather than issue more shares, the directors are considering
    taking out additional loans. Quote TWO relevant financial
    indicators (actual ratios or percentages) to support their
    opinion.

    6
    3.4 John Davids, one of the shareholders, is currently the owner of
    400 000 shares. What will happen to his shareholding if all the
    unissued shares are issued? Show calculations to support
    your answer.

    3.5 On 1 March 2022 additional shares were issued at R3,00 each.


    Quote and explain relevant financial indicators with figures to
    show why the existing shareholders will be satisfied with this
    price.

    30

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    Accounting P1 8 FS/September 2023
    Grade 12 Prep. Exam. Answer Book

    QUESTION 4

    4.1 The board of directors wants to buy computers and IT


    systems from a certain computer company for R25 million.
    You find out the CEO’s wife is a majority shareholder in the
    computer company.

    Express your opinion on the scenario mentioned above.


    Provide ONE point.

    How should this scenario be handled by a board of directors


    or by shareholders? Provide ONE point.

    4.2 How should this scenario be handled by you as a non-


    executive director?

    4.3 External independent auditors may charge high audit fees for
    their specialized work. What do you think will be the
    consequences for the auditor if it is proven that the auditor
    was negligent in the performance of his responsibilities?
    Name TWO consequences.

    Copyright reserved Please turn over


    Accounting P1 9 FS/September 2023
    Grade 12 Prep. Exam. Answer Book

    4.4 Refer to the information regarding Carpets Galore Ltd.


    Do you think the share price of the company increased or
    dropped?

    How will shareholders react to this? Provide TWO points.

    15

    TOTAL: 150

    Copyright reserved Please turn over

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