NATIONAL

SENIOR CERTIFICATE

GRADE 11

NOVEMBER 2020

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. This memorandum is not for public distribution; as certain items might imply incorrect treatment. The
adjustments made are due to nuances in certain questions
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 memorandum.
13. Codes: f = foreign item; p = placement/presentation.

This marking guideline consists of 9 pages.

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2 ACCOUNTING P2 (EC/NOVEMBER 2020)

QUESTION 1: RECONCILIATION

1.1 Indicate whether the following statements are TRUE or FALSE. Write
only ‘true’ or ‘false’ next to the question number.
1.1.1 False 
1.1.2 True  2

1.2

Bank Reconciliation Statement on 31 July 2020:

Debit Credit
Balance as per Bank Statement 3 600 
Late deposit 15 200 
Outstanding cheques:
No 231 2 020 
No 235 1 570 
Correct error deposit 3 800 
Balancing figure 
Balance as per Bank Account 11 410

 for
18 800 both 18 800
totals
-1 Foreign item: Max. 2
8

1.3.1 Although Bramley Traders offers credit terms of 60 days, Lavender

Suppliers prefers to settle their account within 30 days during certain
months. Provide TWO points to indicate that it is not a good decision.

Any TWO points  

 Keep money as long as possible in own bank account to earn interest.
 First collect money from debtors to pay creditors.
 If no early payment discount is offered, there is no benefit
 Pay as late as possible, but avoid unnecessary interest charged.
4

1.3.2
CREDITORS’ LEDGER ACCOUNT STATEMENT FROM
OF BRAMLEY TRADERS BRAMLEY TRADERS
21 130 32 600
A 13 300 – 11 200 + 2 100 
B + 300 
C - 500 
D (3 035 + 3 035) + 6 070 
E - 7 000 one mark; -700 one mark- 7 700 
27 000 * 27 000
10
* Operation one part correct. Both figures

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(EC/NOVEMBER 2020) ACCOUNTING P2 3

1.4 VAT

1.4.1 Calculate the VAT amount payable/receivable to/from SARS.

142 800  184 680 

5 520  9 240 
2 340  252 
43 512 
Operation one part correct

OR Choose the line

184 680 – 142 800 + 9 240 – 5 520 – 2 340 + 252 = 43 512
– 184 680 + 142 800 – 9 240 + 5 520 + 2 340 – 252 = 43 512 9

1.4.2 The internal auditor discovered that two large credit sales
transactions for R598 000 during August 2020 were not recorded in
the respective journal. The owner insists that these will be
recorded during September, due to current cash flow problems.

Give ONE reason why the auditor would not be satisfied with this
explanation.

Unethical.  He should not go along with the owner's request. They

make use of the invoice basis to record VAT, so it has to be recorded
and paid.  2

TOTAL MARKS: 35

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4 ACCOUNTING P2 (EC/NOVEMBER 2020)

QUESTION 2: MANUFACTURING AND COST ACCOUNTING

2.1 MANUFACTURING

2.1.1 GENERAL LEDGER OF CHAMPION MANUFACTURERS

RAW MATERIALS STOCK
2019 2020 Creditors' control
Mar
01 Balance 107 000  Feb
29 16 000

Bank  428 900
2020 Raw Material Issued/ 
Feb
29 (250 000 + 15 400) 265 400 Work in process 
1 mark each Balancing figure
Creditors’
158 000  Balance 85 500
control 
530 400 530 400
2020
01 Balance 85 500  14
Mar

WORK-IN-PROCESS
2019 2020 Finished Goods 800 000  
Mar
01 Balance 25 800  Feb
29
Stock  Balancing figure
2020 Direct Labour
Feb
29
Cost 
214 749  Balance 86 414 
Direct Materials Cost
/Raw material stock 428 900 

Factory 
Overhead Cost 216 965 
886 414 886 414
2020 Balance 86 414  12
01
Mar

FINISHED GOODS STOCK

2019 2020 Cost of 901 000 
Mar
01 Balance 126 400  Feb 29
sales  Balancing figure
2020 Work-in-process
Feb
29
stock 
800 000  Balance 25 400 

926 400 26 400 8

2020 Balance 25 400 
01
Mar

2.1.2 Calculate the gross profit for the year.

R1 520 000  – R901 000  = R619 000  3

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(EC/NOVEMBER 2020) ACCOUNTING P2 5

2.1.3 Calculate the mark-up percentage.

619 000  100

901 000  x 1 = 68,7%
4

2.2 COST ACCOUNTING

2.2.1 Three fixed costs

Salary foreman 
Factory Rent 
Salary of the Accountant  3

2.2.2 Calculate the break-even value of Jellytot Manufacturers.

R945 000
R160 – R 115

R945 000 
R45  

= 21 000 units  4

2.2.3 In your opinion should Jellytot Manufacturers change to a cheaper

supplier? Give TWO reasons for your answer.
Yes/No 

Reason    

No
 Lose goodwill
 Poor quality of material
 Customers will go elsewhere – less profit
 Eventually cheaper quality and cheaper price
Yes
 Emphasis is on profit
 A demand can be created; then the business should be able to supply it.
5

TOTAL MARKS 53

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6 ACCOUNTING P2 (EC/NOVEMBER 2020)

QUESTION 3: BUDGETING

3.1 Explain the importance of comparing budgeted figures with actual

figures achieved for the same period.
One valid explanation 

Deviations can be determined and remedial measures will be put in place.

Establish whether the budgeting was realistic.
Identify trends of mismanagement of cash.
2

3.2 Calculate the missing amounts (indicated by a, b and c) in the Debtors'

Collection Schedule for the budgeted period March to May 2020.

a 6 048 

b 5 320 

c 15 750 
4

Calculate the budgeted total sales for March 2020.

3.3.1
10 500 x 100/20 = 52 500 

3.3.2 Calculate the amount budgeted for payments to creditors during

May 2020.
40 000
70 000  x 100/175  x 70%  = 28 000  any one part correct
OR
12 000/30 x 70 = 28 000
1 mark 1 mark 1 mark 1 w/w mark
4

3.3.3 Calculate the budgeted salaries of the shop assistants for April 2020.

102 000/12 = 8 500

8 500 x 3 = 25 500
15 300 x 9 = 137 700
25 500  + 137 700  = 163 200  any one part correct
OR
102 000 one mark + 61 200 two marks = 163 200 1 w/w mark
(102 000 X 80% X 9/12)
one mark one mark

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(EC/NOVEMBER 2020) ACCOUNTING P2 7

3.3.4 Calculate the % increase in the salary of the manager expected in

May 2020.

3 200 (1 mark)
(19 200 – 16 000) /16 000  = 20%  any one part correct
3

3.3.5 Calculate the amount of the additional loan expected to be acquired on

1 April 2020.

875  x (100 x12)  /14  = 75 000  any one part correct

OR
7 175 X 100/14 X 12 = 615 000 two marks

6 300 X 100/14 X 12 = 540 000 one mark

75 000 one w/w mark 4

3.4 An official of the local municipality has offered to recommend Peter Pan
Stationers to supply stationery to the value of R500 000. However, he
will only do this if Vuyo pays him R20 000 in cash. Give Vuyo advice in
this regard. State TWO points.

Any two suggestions  

 This is a bribe which is unethical and illegal.

 If this information is made public, it will have a negative effect on the
business in the future.
 Vuyo must tender formally to the municipality to secure the contract
through the normal processes. 4

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8 ACCOUNTING P2 (EC/NOVEMBER 2020)

3.5 Identify THREE over-payments in April 2020, apart from vehicle

expenses. Provide figures to support your answer. Provide a valid
reason for each over-payment to support Vuyo's decisions.

Over-payment with figures Valid reason

Item and figure      
1 Cash purchase of
merchandise (R28 000) was Possibly to take advantage of
significantly higher than the bulk discounts on purchases.
budgeted figure (R12 000)

2 The bonus of the manager He has retained the services

(R24 000) of a valuable employee.
3 Purchase of vehicle The difference between motor
(R180 000) vehicle expenses and delivery
expenses is R5 200 per month
6
Explain how this difference of opinion with his wife can be avoided in
future.

As they are jointly running the business, they should have specific meetings
to determine the budget jointly. Vuyo should consult his wife before
spending on unbudgeted items. 
2
State TWO other strategies that Vuyo and his wife could consider in
future to improve the results of the business.

Any two valid points:  

 Advertise monthly
 Reduce the number of shop assistants
 Reinstate deliveries to customers
 Negotiate longer credit terms with creditors 2

TOTAL MARKS: 37

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(EC/NOVEMBER 2020) ACCOUNTING P2 9

QUESTION 4: FIXED ASSETS AND INTERNAL CONTROL

4.1 What is a Fixed Assets Register?

Any valid explanation 

A Fixed Asset Register is a book in which all the assets owned by a business
is recorded. 2

4.2 Calculate the depreciation on equipment for the year.

New equipment: 90 000 x 20% x 3/12 R4 500 

Equipment sold: 60 000  – 42 000  = 18 000 x 20% x 9/12 

R2 700 

Old equipment: 555 000  – 138 000  = 417 000 x 20% R83 400 

Total: R90 600  10

4.3 Asset Disposal

2020 Equipment  60 000  2020 Acc dep on
Dec 1 Dec 1 equipment 
44 700 
(42 000  + 2 700 )
see 4.2

Profit on sale 6 700  Creditors’ control  22 000

of equipment  

66 700 66 700

10

4.4 The owner is concerned about the internal control over the fixed assets
of the business. Suggest THREE internal control measures that could
be implemented.
Three valid suggestions   

 Ensure that all fixed assets are safely stored (security)

 Ensure that proper authorisation procedures are in place
 Do regular physical checks against the fixed asset register 3

TOTAL MARKS: 25

TOTAL: 150

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