Downloaded from Stanmérepiytics.com basic education Department: Basic Education REPUBLIC OF SOUTH AFRICA SENIO! d ‘i EXAMINATIONS/ NATIONAL SEN RTIFICATE EXAMINATIONS MARKS: 150 TIME: 2 hours This question paper consists of 14 pages, a formula sheet and a 12-page answer book. coy ead Ee Posse cteacoBuwifoaded from Stannereshysics.com DBE/MayLJune 2025 INSTRUCTIONS AND INFORMATION Read the following instructions carefully and follow them precisely 1. [Answer ALL questions. A special ANSWER BOOK is provided in which to answer ALL questions. A Financial Indicator Formula Sheet is attached at the end of this question paper. ‘Show ALL workings to earn part-marks. You may use a non-programmable calculator. oy eas on You may use ad ack ink to answer questions. 7. Where applicabl jons to ONE decimal point Write neatly and le 9. Use the informatio as a guide when answering the question paper. Try NOT tod QUESTION TOPIC MARKS _| MINUTES 1 VAT and Creditors! Reconciliation 30 25 2 Cost Accounting 40 30 3 Stock Valuation | 40 30 Budgeting | 40 35 TOTAL | 150 120 Copyright reserved Please turn overroiewitoaded from Stanmerephysics.com DBE/MayXJune 2025 QUESTION 1: VAT AND CREDITORS’ RECONCILIATION —(30 marks, 25 minutes) 14 Copyright reserved VALUE-ADDED TAX (VAT) REI The: UIRED: information relates to Comfort Traders for the VAT period ended 31 January 2025. The VAT rate is 15%. The business is owned by Karen Botha. The sales of the business average R150 000 per month. REQUIRED: 4.1.1 Calculate the VATjamounts inithe table provided in the ANSWER BOOK. Indicate of E/ ‘on the amount payable to SARS. Show an incre jecrease with a '-’. An example has been complete’ (10) 44.2 Karen wants her business as a VAT vendor as she is unable to meet VAT for submissions. What advice WOUROl Karen? State ONE point. (2) INFORMATION: ‘A. Amount owed to SARS on 4 January 2025, R51 500. Transactions for January 2025: EXCLUDING | INCLUDING | __VAT NO. DETAILS VAT VAT AMOUNT (R) {R) (R) Example __| Drawings of stock 6000 6900] 900 , Merchandise @ purchased 221720 2 ‘Credit notes issued to (i) oon 12.000 |? (ii) Total sales "187 795 2 ) Bad debts written off 765 Ses id *Certain goods, with a total selling price of R21 275 (including VAT), should have been recorded as zero-rated items. Please turn overaccounhagwinioaded from Stanmorephysics.com DBE/May/June 2025 1.2 Copyright reserved ‘SCINSC Confidential CREDITORS’ RECONCILIATION Epson Traders received a statement of account from a creditor, Canon Suppliers. The balance on the statement did not agree with that on the account of Canon Suppliers in the Creditors’ Ledger of Epson Traders. REQUIRED: 4.24. Refer to Information A, B and C. Use the table provided to indicate changes to the: * Creditors’ Ledger Account in the books of Epson Traders * Statement of account received from Canon Suppliers Write the amount and indicate increase (+) or decrease (-) with each amount. r (14) 1.22 Refer tol It was disé ‘asing manager, Senzo, had signed a fictitious invoic Prime Suppliers. The banking details of his son appear . The relevant payment was processed by the financi Other than di vide: © ONE actio t him ‘+ ONE suggestion on how to prevent this problem in future (4) INFORMATION: A. Creditors’ Ledger of Epson Traders: CC ‘CANON SUPPLIERS (CL9) DATE DETAILS DEBIT | CREDIT | BALANCE 2025 [| Account rendered | _ 69.800 March _|~6_| Invoice 519 26 300 96 100 8 | Debit Note 104 1600 94 500 44 | EFT 310 45.500 49.000 Discount 7000 42.000 15 | Invoice 202 13 800 55800 | 24 | Invoice 567 20.000 75 800 25 | Invoice 594 17400 | 92800 31_| Invoice 610 i: 9000 101 900_| B. Statement of account received from Canon Suppliers: CANON SUPPLIERS Epson Traders Dated: 25 March 2025 CREDIT Please turn overactxswAIBaded from Stanmerepliysics com DBE/MayiJune 2025 C. Differences noted: (i) | Canon Suppliers correctly levied interest of R400 on the account of Epson Traders on 4 March 2028. (ii) Invoice 519 on 6 March 2025 was correct according to the statement received from Canon Suppliers. (iii) Canon Suppliers made an error in recording the return of goods on 8 March 2025. (iv) Epson Traders qualified for an early settlement discount with the payment on,14 March 2025. Canon Suppliers granted only R5 000 as p p show this on their statement next month. () _ Invol fas recorded incorrectly in the Creditors’ Ledger Suppliers on 15 March 2025. The invoice was receiv her creditor, Baron Suppliers. (vi) A trade diseatint of 10% was deducted on invoice 594. Canon ‘Supplie fror next month. (vii) Invoice 610 did not appear on the statement received from Canon Suppliers as this transaction took place after their statement date. D. Creditors’ Ledger of Epson Traders PRIME SUPPLIERS (CL24) DATE. DETAILS DEBIT | CREDIT | BALANCE 2025 | 23 | Invoice 481 |___18 000 18 000 March _| 28 | EFT 336 18. 000_| 0 Copyright reserved za Please turn overaccobiatoaded from Starynereshysics.com DBE/May/June 2025 QUESTION 2; COST ACCOUNTING (40 marks; 30 minutes) ma 22 Choose the correct word from those given in brackets. Write only the word next to the question numbers (2.1.1 to 2.1.3) in the ANSWER BOOK. 2.14 Consumable items used in the factory are regarded as (direct/indirect) material. 2.1.2 Depreciation on factory machines is classified as a (variable/fixed) cost. 24.3 Wages paid to office cleaners is regarded as _a/an (selling and distribution/administration) cost. (3x1) WOLLIES' WINTER GLOVES The business 28 February 202! The business does are sold. gloves. The financial year ended on jed by Jerry Classon. in-progress stock and all items produced REQUIRED: 2.2.4 Refer to Inform - Calculate the direct material cost for the year ended 28 February 2025. 2.2.2 Refer to Information B. Calculate the correct factory overhead cost for the year ended 28 February 2025. 2.2.3 Calculate the gross profit eamed for the year ended 28 February 2025. 2.2.4 Jerry was satisfied with the performance during the current year and plans to increase production by 30% in the next financial year. He is confident that the demand will increase due to changing weather patterns. * Comment on the level of production and the break-even points ‘comparing the results for the current financial year with his plan for the next financial year. Provide TWO points, with figures. * Calculate the increase in profits Jerry expects to eam from the year ended 28 February 2025 to the next financial year. 2.2.5 Give TWO possible reasons for the proposed increase in direct labour cost in the next financial year» Quote figures. of R304 000 for the total fixed costs. 2.2.6 Jerry has Provide 1) making his Jense items he may have considered when ie a different reason for each item identified. not be concemed about this proposed ests. Provide ONE point with figures. Copyright reserved te Please turn over (3) (4) (9) 6) 4) (5) (4) (4) (2)““86WATbaded from Stanmerentysics,com DBE/May/June 2025 INFORMATION: A. Direct material cost: COST PER TOTAL METRES METRE AMOUNT (R) {R)_ Opening stock 6.000 55. 330.000 Purchases during the year 24 000 60 440 000 | Total available for use 30 000 ? 1770 000 | Closing stock 4000 2 ? Direct materials issued for production wt 26 000 2 ? Material is re Due to good in there were no missing or stolen material. ictory using the weighted-average method. B. Factory ove The bookkeeper ca id ctory overheads as R966 360. However, he made the following errors which must be corrected: (i) (ii) (ii) (iv) Copyright reserved The entire telephone expense of R36 000 was used instead of 25% being allocated to the factory. The closing stock of factory indirect material was understated by R2 800. The bookkeeper correctly allocated the portion of the cleaner's wages to factory overheads. However, he neglected to take into account the increase of 6% p.a. effective from 1 January 2025 on the cleaner’s wages. The cleaner earns R48 000 p.a. and spends half his time in the factory. Water and electricity of R25 600 was allocated to the factory using the ratio 4 : 3: 2 for factory, sales and office respectively. This should have been shared in the ratio 5: 3: 2. al f a Please tum overAccpyaintivaded from Stanmorepfysics.com DBEMay/June 2025 C.~Actual and projected costs: PLAN FOR NEXT | 28 FEBRUARY 2025 | FINANCIAL YEAR TOTAL UNIT TOTAL | UNIT COST AMOUNT | COST AMOUNT | PER PAIR (R) | PERPAIR (R) () (R) Direct material cost 7560 000 30,00 Direct labour cost 1300 000 25,00 ‘Selling and distribution 650 000 12,50 67,50 35,10 PLAN FOR NEXT. BUARY 2028 FINANCIAL YEAR 000 pairs 8-000 pairs Selling price per R115,00 Sales 4 600 000 Copyright reserved Please turn overjential A ic DBE/May/June 2025 coopyWoaded from Stanmorephysics.com fay/lune QUESTION'3: STOCK VALUATION (40 marks; 30 minutes) HELEN'S ELECTRONICS Helen Woods owns an electronics shop that sells a variety of electronic products, The financial year ended on 28 February 2025. Records for headphones, television sets, vacuum cleaners and pressure cleaners are provided. HEADPHONES The first-in first-out (FIFO) stock valuation method is applicable. REQUIRED: 3.1 Calculate the val tock on 28 February 2025, using the FIFO method. (6) 3.2 Helen decided to cha tember 2024 after receiving advice from her sister, the store * Provide TWO points er Customers are unhappy with the quality of the headphones purchased from the new suppliers. Quote figures. (4) + What advice would you give to Helen about changing the supplier in the future? Provide ONE point. (2) INFORMATION: A. Stock balances of headphones: UNIT PRICE (including | TOTAL UNITS carriage) ®) LR) [1 March 2024 770 145 | 24 650_| 28 February 2025 [350 2 2 B. Purchases of headphones during the financial year: UNIT PRICE TOTAL UNITS (Ry ® April 2024 250 165 41 250 | June 2024 300 180) 54 000 September 2024 380 135 51 300 December 2024 320 140 44 800 [125997350] Copyright reserved Please turn over-ey8RToaded from Stanrgopepliysics,com DBE/May/June 2025 C. Carriage on purchases: Headphones are delivered to the store by Jiffy Transport at a non-refundable rate of R20 per unit. The carriage on purchases is not included in Information B. D. Returns: 80 headphones that were purchased in December 2024 were returned to the suppliers, R11 200. E, Sales: SELLING PRICE PER UNIT - (R) 1 March 2024 to 311 a 5 220 310 220 88 200 | 990217800] the specific identification stock valuation ntum and Crystal) from 1 March 2024, the beginning of the financial year. A new TV model, Limpid, was introduced on 1 December 2024 to replace the Quantum TV model. REQUIRED: 3.3 Calculate the closing stock of the television sets on 28 February 2025. (9) 3.4 Helen was not satisfied that she was selling an average of 19 Crystal TVs per month. However, she is happy that the new Limpid TVs, despite its higher selling price per unit, is selling at a quicker rate than Crystal TVs. * Calculate the cost of sales of the Limpid TVs. @) * Calculate how long (in days) it will take Helen to sell the closing stock of the Limpid TVs. (4) * Helen feels that she has made a wise decision by replacing the Quantum TVs with the Limpid TVs. Give ONE possible reason (with figures) to substantiate her opinion. (2) 3.5 Refer to information D. Explain how this will have a positive effect on her business. Provide ONE point. (2) INFORMATION: A. Opening stock: TOTAL TV MODEL Quantum 1 March 2024 cata Copyright reserved Please turn overAccopsenifloaded from Stanmerephysics.com DBE/May/June 2025 nti B. Purchases: ‘COST PRICE UNITS PER UNIT TOTAL ‘TV MODEL {R) {R) July 2024 | Crystal 186 R6 500 4209 000 1 Dec. 2024 Limpid 415 R7 200 828 000 C. Sales for the financial year ended 28 February 2025: ‘SELLING PRICE | TOTAL TV MODEL UNITS PER UNIT (R) (R) ‘Quantum 105) 5 950, 624 750 9750, 2 193 750 Crystal Limpid Total sales od et 4 10 500 ‘987 000 ag 5805 500] cal schools: ilo local high schools. D. Donation of television: Helen donated the unso VACUUM AND PRESSURE REQUIRED: 3.6 Vacuum cleaners: + Identify ONE problem with vacuum cleaners. Quote figures. * What advice would you give? State ONE point. (3) 3.7 Pressure cleaners: ‘* Explain TWO good decisions that Helen took in respect of pressure cleaners. Quote figures. * Explain how each decision improved the results on 28 February 2026. Provide ONE different point for EACH decision. ©) INFORMATION: VACUUM CLEANERS | PRESSURE CLEANERS: 28 FEB. 2025 |29 FEB. 2024|28 FEB. 2025 | 29 FEB. 2024 Gross unils sold 532 565 704 584 ‘Number of units sold for cash 280 360 398 302 Trade discount on cash sales 5% 5% 10% 5% Number of units sold on credit 230 190 270 240 Payment policy on credit sales | 90 days | 00 days | 120 days | 150 days Interest rate on credit sales 18% 18% 15% 18% Returns by customers (faul i ray 22 15 36 42 Mark-up % 50% 60% 40% 60% Copyright reserved Please turn overAccobowmloaded from Stanmorephysics.com DBE/May/June 2025 QUESTION 4: BUDGETING (40 marks; 35 minutes) Daisy MacDonald owns Canary Stores that sells school bags. The information relates to the budget period ending 31 July 2025. "NOTE: Where comments or explanations are required, you should: * Quote trends with figures REQUIRED: 4.1 Explain how the preparation of a Cash Budget serves as a management tool in assisting the business to manage its cash resources. State ONE point. 42 afit gection of this Cash Budget which will not of Comprehensive Income. 43 edule. 44 in the Cash Budget. 45 ace (in m2) being rented during July 2025. 4.6 Refer to Information H. ‘Anew competitor moved into the area during April 2025. Daisy was not aware of the competitor and did not take any action during April 2025. 4.6.1. Explain the effect of the new competitor on any TWO items in the budgeted and actual information for April 2025. Quote figures. 4.6.2 _ Identify TWO changes Daisy implemented in May 2025 in response to the new competitor. Quote figures. INFORMATION: A. Sales, purchases of stock and cost of sales: Copyright reserved * Total sales: April 2025 [__ R180 000 May 2025 R202 600 June 2025 2 | July 2025 R270 000 * 40% of sales are cash; the rest is on credit. + The mark-up is 50% on cost. . aumonthly basis. * the rest is on credit. Itis expe litors will be paid as follows: e of purchases to receive a 5% discount. after purchases. id month after purchases. Please turn over (2) (2) (9) (14) (6) (4) (4)Accounaenioaded from Stanmoréphysics.com DBE/Mayhlune 2025 C. Salaries of sales assistants: The sales assistants all eam the same monthly salary. They will get a 5% increase from 1 July 2025. The business had two assistants in June and will hire an additional assistant from 1 July at the same monthly salary as the other two assistants after the increase. D. Loan: Part of the loan will be repaid on 1 July 2026. Interest of 15% p.a. is paid at the end of each month and is not capitalised. E. Vehicle and delivery expenses: Canary Stores have beat rcingldelivery services for the past two years at a percentage of ’ The owner plans se li vehicle on 31 July 2025. The business will pay a deposit of 10 \d the balance will be paid over a period of 36 months at R6 87! F. Rent expense: The business rents 180 es at a fixed rate per m?. The rental agency informed the business of a planned increase in rent per m? as from 1 August 2025. In order to save on rent, the owner decided to reduce the m? that is being rented with effect from 1 July 2025. G. Extract from Cash Budget for June and July 2025: RECEIPTS sn 2028 AOL YZ028 Cash sales to) Collections from debtors 117 450 134 325 Interest on fixed deposit 250 250 Fixed deposit maturing 30.000 PAYMENTS: Cash purchase of stock 36 000 Payments to creditors 411 300 Salaries and wages Loan repayment Interest on loan Delivery expenses Rent expense Deposit for vehicle Advertising Sundry expenses Please turn over Copyright reservedAccodayetoaded from Stanmorephysics.com DBE/May/June 2025 H. Budgeted and actual information for April and May 2025: ‘APRIL 2025 MAY 2025 BUDGETED | ACTUAL | BUDGETED | ACTUAL Units to sell/sold 720 540 900 765 Selling price per unit R250 R250 R225 R225 Total sales R180 000 | R136 000 R202 500] R172 126 Total purchases R120 000 | R90 000 135000 | R114 750 Gross profit 60.000 | _R45 000 R67 500| R57 375 Advertising R4 500 R18225| R15 400 Commission o 4 050 R3 443 Delivery expenses R6 750 R10 125 R8 600 TOTAL: 150 Copyright reservedsccoftowloaded from Stqnmorephysics.com Gross profit x 100 GRADE 12 ACCOUNTING FINANCIAL INDICATOR FORMULA SHEET DBE/May/lune 2025 Gross profit x 100 Sales 1 Cost of sales 1 Net profit before tax x 100 Net profit after tax x 100 Sales 1 Sales 1 Operating expenses x 100 Operating profit x 100 Sales 1 Sales 1 Total assets : Total liabilities, |) Current assets : Current liabilities lon-current liabilities : Shareholders’ equity Average trading stock x 3 Cost of sales 1 (See Note 4 below) Cost of sales Average trading stock Average debtors x 365 Credit sales 1 Net income after tax ___x 100 Average shareholders’ equity 1 Average creditors x 365 Cost of sales 1 (See Note 2 below) Net income after tax _ x 100 Number of issued shares 1 (See Note 3 below) Net income before tax + Interest on loans Average shareholders’ equity + Average non-current liabilities 1 x 100 Shareholders’ equity _ x 100 Number of issued shares 1 Dividends forthe vear__ x 100 Number of issued shares 1 Interim lends __ x 100 Number of issued shares 1 Final dividends x 100 Number of issued shares Dividends per share x 100 Earnings per share 1 NOTE: 7 only if relevant to the whole year. number of shares is used in practice. Copyright reserved Dividends for the year x 100 Net income aftertax 1 Total fixed costs Selling price per unit - Variable costs per unit Trading stock at the end of a financial year may be used if required in a question. 365 days is applicable | 2. Credit purchases may be used instead of cost of sales (figures will be the same if stock is constant), 3. If there is @ change in the number of issued shares during a financial year, the weighted-averageDownloaded from Stanmdreptysics.com QUESTION MARKS INITIAL MoD. 1 2 3 4 TOTAL This answer book consists of 12 pages. ‘WO Copyright reserved Please tum over“beWiloaded from Skanmereilnysics.cam = reer urs QUESTION 11° VAT 1.1.1 | NO, WORKINGS EFFECT : Opening balance 51500 Example | 6 900 - 6 000 +900 @ | 224720 (ii) | 42.000 1.1.2 | Karen wants to deregister her business as a VAT vendor as she is unable to meet VAT deadlines for submissions. What advice would you give to Karen? State ONE point. Copyright reserved Please tum oversedonatteaded from Ségnmorephysics 6am ace in S 1.2 CREDITORS’ RECONCILIATION CREDITORS LEDGER STATEMENT OF ACCOUNT 4.24 ACCOUNT OF EPSON TRADERS FROM CANON SUPPLIERS BALANCES 101 900 88 900 @ (i) 1.2.2 [It was discovered that the purchasing manager, Senzo, had signed a fictitious invoice received from Prime Suppliers. The banking details of his son appeared on this invoice. The relevant payment was processed by the financial department. Other than dismissing Senzo, provi ONE action to be taken against him ONE suggestion on how to prevent this problem in future TOTAL MARKS ae Copyright reserved Please turn overAccousreavpeiloaded from, Stan norephysics.com DBE/May/June 2025 QUESTION 2 24° (2.44 2412 . [2.43 es 2.2 WOLLIES' WINTER GLOVES 2.2.1 | Calculate the direct material cost for the year ended 28 February 2025. WORKINGS ANSWER Poi 222 r the year ended “| 28 February 2025. Incorrect total 966 360 ee 2.2.3 | Calculate the gross profit earned for the year ended 28 February 2025. WORKINGS ANSWER Copyright reserved og |B Please tun over“BosimBaded from Stanmoreplysirs GAM neeagthre 2.2.4 [Jerry was satisfied with the performance during the current year and plans to increase production by 30% in the next financial year. He is confident that the demand will increase due to changing weather patterns. Comment on the level of production and the break-even points comparing the results for the current financial year with his plan for the next financial ear. Provide TWO points, with figures. ‘expects to earn from the year ended ar. Calculate the increase in 28 February 2025 to ANSWER 2.2.5 | Give TWO possible reasons for the proposed increase in direct labour cost in the next financial year. Quote figures. EA Copyright reserved Please tum overDownloaded from Stanmorephysics.com DBE/May/June 2025 ‘SCINSC - Answer Book Confidential 2.2.6 [Jerry has projected an Increase of R304 000 for the total fixed costs. Provide TWO possible expense items he may have considered when his projections. Give a different reason for each item identified. Explain why Jerry sho! ied about this proposed increase in the total fixed costs< TOTAL MARKS Copyright reserved ge Please turn over--eyBWHTBaded from Staamorephysics com, DBE/May/June 2025 QUESTION 3. HEADPHONES 34 3.2 Copyright reserved Calculate the value of the closing stock on 28 February 2025, using the FIFO method. WORKINGS ANSWER FA Helen decided to chang advice from her sister, # September 2024 after receiving ger. Provide TWO points quality of the headp figures. customers are unhappy with the d from the new suppliers. Quote What advice would you give to Helen about changing the supplier in the future? Provide ONE point. Please turn overaccoiwoaded from Stanmoreshysics.com DBE/May/June 2025 TELEVISION SETS 3.3 Calculate the closing stock of the television sets on 28 February 2025. [ Tw MopEL WORKINGS ANSWER Quantum il Crystal Limpid TOTAL . . 3 3.4 [Calculate the cost o ANSWER: Calculate how long (in days) it will take Helen to sell the closing stock of the Limpid TVs. WORKINGS ANSWER jade a wise decision by replacing the Quantum . Give ONE possible reason (with figures) to FA 3.5 [Explain how this will have a positive effect on her business. Provide ONE point. FA Copyright reserved ae Please turn oversonpseiifloaded fromsStanmanehandetshan DBE Mayan 2028 VACUUM AND PRESSURE CLEANERS 3.6 VACUUM CLEANERS Identify ONE problem with vacuum cleaners. Quote figures. What advice would you give? State ONE point. PROBLEM (with figures) 3.7 PRESSURE CLEANERS Explain TWO good deci cleaners. Quote figures. Explain how each d n took in respect of pressure e results on 28 February 2025. Provide ONE different po ‘ision. DECISION (with figures) IMPROVEMENT IN RESULTS Decision 4 TOTAL MARKS Copyright reserved Please turn overacchangivaded from Stanmoreptiysics com DBE/May/June 2025 QUESTION 4 Explain how the preparation of the Cash Budget serves as a management tool in assisting the business to manage its cash resources. State ONE point. 44 Identify TWO it i ion of this Cash Budget which will not appear in the Projectec of Comprehensive Income. CREDITORS' PAYMENT SCHEDULE: — i JUNE JULY 9600 16 200 85 500 JULY 144 000 111 300 5 —=———$—————— Copyright reserved Please turn overAccouftieypAloaded From, Skanmondbhysics.cem DBE/May/June 2025 4.4 CALCULATE: (i)_| Cash sales for July 2025 WORKINGS | Gi Salaries and wages for June 2025 WORKINGS (iii) (iv) Deposit for vehicle on 31 July 2025 WORKINGS ANSWER 4.5 [Calculate the reduction in the floor space (in m*) being rented during July 2025. WORKINGS Copyright reserved a Please turn over iesacRewgleaded from Stanmorephysics. DBE/May/June 2025 Roane renee cor, vane 46 Refer to Information H. 4.6.1 [Explain the effect of the new competitor on any TWO items in the budgeted and actual information for April 2025. Quote figures. 46.2 jemented in May 2025 in response to TOTAL MARKS TOTAL: 150 Copyright reserved eeDownloaded from Stanmorephysics.com ba: education Department: Basie Education REPUBLIC OF SOUTH AFRICA ae ww SENIOR CERTIFICATE EXAMINATIONS/ NATIONAL SENIOR CERTIFICATE EXAMINATIONS - Accout BING Pi oem DBE Internal moderator | ope iniernal moderator Approved loameet MVANNEER Umalusi External moderator 25 May 2025 V DELUHLAZO M SEEVNARAIN = UodippOnorrE — lusi External moderator 25 May 2025 25 May 2025 25 May 2025 12, 13, 15, 14. Copyright reserved MARKS: 150 ORNS: PRINCIPLES: 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 iter (no penalty for misplaced item). No double penalty applied. Penalties for placement or poor presentation (e.g. details) are applied only if the candidate is earning marks on the figures for that item. Unless otherwise stated, give full marks for a correct answer. If answer is incorrect, mark workings. If a pre-adjustment figure is shown as a final figure, allocate the part-mark as a working mark for that figure (not the method mark for the answer), Note: iffigures are stipulated in the marking guidelines for ‘components of workings, these do not carry the method mark for final answer as well. 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 Where indicated, part-marks may be awarded to differentiate between differing qualities of answers from candidates. 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 eatn full marks on a question (max -2 per Q), ‘These marking guidelines are not for public distribution as certain items might imply incorrect treatment. ‘The adjustments made are due to nuances in certain questions. Where penalties are applied, the marks for that section of the question cannot be a final negative. Where method marks are awarded for an operation, the marker must inspect reasonableness of the answer. “Operation’ means check operation. ‘One part correct’ means operation and one part correct. Note: ‘check operation must be +, -, x, + a8 per candidate's calculation (if valid) or per marking guidelines. In calculations, do not award marks for workings if numerator & denominator are swapped — this also applies to ratios. 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 6 Be aware of candidates who provide valid alternatives beyond the marking guidelines. Note that one ‘comment could contain different aspects. Codes: f = foreign item; p = placementipresentation. These marking guidelines consist of 10 pages. Please turn overAccdDowmmboaded from Stanmoreph sics.com DBEMMay/June 2025 ung ‘SCINSC — Marking Guidelines QUESTION 1 1.1 Statement of Comprehensive Income for the year ended 28 February 2025 Sales (12 171 200 v - 31 200 v) 12140000 M* Gross profit Cost of sales salos/1,6 OR sales x 100/160 (7.587 500) Wea Sales—CofS 6 4552 500 4 Otherincome, Service fee income 225 250 174 580 Provision for b 2030 Rent income 48 640 4777 750 Operating expenses Salaries and wages (3 307 800) 763 000 Depreciation 285 860 Audit fees 93 960 Directors fees Trading stock deficit ‘one mark one mark wo marks 49500 + 49600 + 44055 (1595 385 - 143 055 vvvv) (22 150 - 19 500 vv’) 1452330 [31.200 x 100/160) 2650 ‘Sundry expenses 710 000 Operating profit Interest income Profit before interest expense Interest expense Net profit before tax (330 000 v — 126 600 ~’) or (27 500 - 10 S80) 42 16 950 two marks Income tax Net profit after tax [897 800 x 70/30) 928200 vv 1 foreign items (max -2) i.e SFP items; -1 presentation (max -1 Prov. for bd adjust must be shown as an income. Trading stock dofcit could be shown as an income, mark as por principle 11 It trading stock deficit is shown as an income with correct workings, -1 for answer. ‘two m marks will be awarded only if the candidate has used the sales figure calculated above, Copyright reserved Please turn overAccddowmtoaded from Stanmoreph sics.com DBE/MayiJune 2025 ang ‘SCINSC — Marking Guidelines 1.2 Statement of Financial Position on 28 February 2025 EQUITY AND LIABILITIES ORDINARY SHAREHOLDERS’ EQUITY 3041500 Ordinary share capital 2 480 000 Retained income balancing Rgure (accept ave igure) 2 561500 NON-CURRENT LIABILITIES 4,000 24 1200 500 (2 172,500 vv - 972000) 4 Loan: Oracle Bank 4.200 500 CURRENT LIABILITIES 972.000 Trade and other payables ‘Audi fees Rentincome correction * (420 358 + 18 792 v + 24 320 M1 - 22 750 v) ampget Es SARS Income tax (397,800 ~ 363 100) 34700 vv Shareholders for dividends (4550 000 x 19/100) 294500 vv Bank overdraft —balancins Sau Wohelestesla ells) 75480 2 Current portion of loan 126 600 TOTAL EQUITY AND LIABILITIES 5214000 ¥ 4 foraign items (max_-2); presentation -1 (max -1) Inspect: SARS:IT and SFD may be included in TROP Note principle 11 when awarding method marks; Operation as per candidate's operation, unless otherwise specified Copyright reserved Please turn overAccddowmmboaded from Stanmorephy sics.com Guidelines QUESTION 2: 24 (i) — [(Caleutate: Carrying value of buildings on 1 March 2024 Inasr WORKINGS ANSWER 15 479 600 — 7 909 600 7570000 vv (ii) [(Calculate: Disposal of vehicle at carrying value WORKINGS ANSWER TBO 000 x [20% x 7/12] 510 000 Y= 330 000 v 24 000 vm 180 000 two marks eo oc OR 510000 ~ 351000 — ‘one mark ‘two marks one m mark Accept edger format (iii) [ Calculate: Total depreciation on equipment __ __| _ ANSWER __ New 320000 x [15% x 3/12] 12.000 vi 406 500 1 Old 2630 000 x [15% x 12/12] 394 500 vv —— anything eae I added to R320 000 oF R2 630 000, 2.2 [ Calculate: Taxation paid WORKINGS ANSWER 148 000 ¥ + 1.736.000 v + 220000 v i 2.104 000 OR — - 148 0004 736990 = 220°000 Ee ‘copes mal sf asklg as wong: Be aware of signs oversac: Ensure that anly NB Epon is masked consistent Calculate: Dividends paid I WORKINGS" ANSWER {050 O00 x 0.52) 840000 ¥ + 1-296 000 vv 2.136.000 2 OR 840 000 + [2 696 000 - 1 400 000] nore brackets cone mark two marks DBE/May/lune 2025 Accept ledger format or use of brackets as workings Copyright reserved Please turn over25 ‘SOURCE OF FUNDING NEGATIVE EFFECT ON AccdDowmmboaded from Stanmoreph sics.com DBE/May/lune ‘SC/NSC — Markirig Guidelines 2.3 Cash effects from financing activities in the Cash Flow Statement for the year ended 28 February 2025 Cash effects from financing activities 9608500 Issuing of shares 6 300 000 Shares repurchased (50 000 v x R8,50 ¥V) oR 175.000+ 250000 | jyua6t28,000) fone mark two marks Change in loan 3.733 500 TIP no detars (ax) 2.4 [ Calculate: % operating expenses on sales 7 WORKINGS 7 ANSWER 4667600 ¥ x 100 176% 26 480 000 v 1 ——— Calculate: % return on average shareholders’ equity WORKINGS ANSWER 4 464 000 x 400 238% 4 (22 556 000 + 14943000¥) 4 | 18 734500 wo marke i <9) Calculate: Dividends per share WORKINGS a ANSWER [1 296 000/4 050 000} [+ 400 000 1 4 000 000) one math) Rohingrs 6icents RBv+ Bue OR-0,32 + 0,85 Do not accept 67,4 Ensure that only one option is marked consistent > For EAGH calculation, tho x 100" does not constitu ‘one part correct: Numerator and denominator must be marked as such = Dornot award marks for any operations done to stand-alone figures. e.g. na tick anything else is added to R4 687 600. (with figures) CASH FLOW Expectations of shareholders to receive regular dividends in the future ¥ SOURCE 1 Shares Jesines, 8.008 ON Change in loan, R3 733 500 _| Loan has to be repaid with v SOURCE 2 interest. ¥ 2025 HI HM FA Copyright reserved Please turn overAccdpowmtoaded from Stanmoreph sics.com DBE/MayiJune 2025 ‘SC/NSC ~ Markirig Guidelines QUESTION 3: 34 “| Profitability ~ ‘Limited v No abbreviations Solvency 7 3.2 The liquidity position of the company has improved. Quote TWO financial indicators with figures to support this statement. Financial indicators sviveeeiglresi@nd trends VY * Current ratio improvediincreased (from 0,3 :1) to 1,6:1 /by 1,3: 1 * Acid test ratio improvediinereased (from 0,1 :1) to 0,8:1 / by 0,7 : 1 * Debtors collection period improved/decreased (from 43 days) to 36 days / by 7 days Do not accep! creditors payt 3.3. Dividend pay-out policy: Calculate the dividend pay-out rate for the year ended 28 February 2025. WORKINGS ANSWER 5 x 100 107.8% vv 1 1 ‘Accept 108% Do not accept 1.07 Explain why the directors decided to change the policy. Give ONE reason. ONE valid point vv The company wants to keep shareholders happy/increase shareholder satisfaction They are trying to influence the market price of shares by increasing dividends, Equalising dividends over several years. Not planning for future expansions The company had sufficient reserves from previous years. 3.4% shareholding and repurchase decision making: Calculate the number of new shares that Denzel purchased on 31 July 2024. _ —Wworkines ANSWER [900 000 x 45%) 4941000 ¥ = 405 000 vv {25 000 75 000) OR 495 000 456 000 + 50 000. ‘one mark fee mark 89 000 #1 on 28 Februat ANSWER 494000¥ x 400 950 000 ¥ 1 52% 2 + Numerator and denominator must be marked as such, = Do not award marks for any operations done to stand-alone figures. no ickil anything else i added to R494 000, Copyright reserved Please turn overAccddowstoaded from Stanmorephysics.com DBE/MayiJune 2025 ‘SC/NSC — Markirig Guidelines The independent auditor discovered that Denzel had made the decision to repurchase the shares from the estate of a deceased relative on 1 December 2024 without informing the board of directors. Why should the independent auditor be concerned about this? Give ONE reason. ONE valid reason v ‘art marks for Incomplete partial / undear responses * Unethical,.as Denzel is:taking advantage as the majority shareholder/This creates potential conflict offinterest Nepotism, as Denzel fhas favoured his relative's estate by paying R12 per share. This is not proceduffel; one person cannot determine buy-back prices. Shareholders may lodge a dispute, as this action could be a breach of the company’s policies, The decision was not fair and transparent. 3.5 Gearing and risk: The directors of Venus Ltd want to expand the business by opening more branches in other provinces. Explain why you would recommend that they should not borrow more money. Quote TWO financial indicators with figures. TWO financial indicators ¥ ¥ Figures andtrends ¥ ¥ Explanationy ¥ * Debtlequity ratio increased (from 0,5 : 1) to 0,8: 1/by 0,3: 1 The financial risk has increased / The company is more reliant on debt to finance its operations. The % return on average capital employed (ROTCE) decreased (from 9,5%) to 8,2% / by 1,3% points / by 13,7% The company is negatively geared / ROTCE is lower than the (12%) interest rate/using loans ineffectively. The other option of financing the proposed expansions is to issue more shares. Explain how this will benefit the company. Provide TWO points. TWO valid points vv vv art marks for incomplete! partial unclear responses The capital raised does not have to be repaid to the shareholders Improvement in the debt-equity ratio Dividends will only be declared if the company can afford to do so No interest is paid; this will improve profits. Copyright reserved Please turn overAccdDowmioaded from Stanmorephy sics.com DBE/MayiJune 2025 ‘SC/NSC — Markirig Guidelines 3.6 Share value: Explain why the shareholders should not be satisfied with the share prices of the company at the end of the financial year. Quote TWO relevant financial indicators and other related data. Financial indicators / other data YY Figures and trends“ ¥ * Net asset value per share decreased (from 1 060 cents) to 1 025 cents / by 35 cents /.by 3,3%. Market price petistiaife decfeased (from 1 030 cents) to 1000 cents / by 30 cents / by 2,9%. For FOUR marks: * Market price per share of 1000 cents is lower than the Net asset value per share of 1 025 cents 3.7 Renewal of the GFO's contract: Explain ONE reason why any company should appoint a suitably qualified person as their chief financial officer (CFO). ONE valid point vv ‘art marks for incomplete / partial /uncear responses, Develop sound financial strategies aligned with company long term goals. Ensure that the company complies with financial regulations and standards. Instil confidence in the company performance and growth. CFO's are instrumental in identifying financial risks. He / She must have the relevant knowledge (experience/skill) as the CFO makes final decisions concerning all the aspects of the company's finances. Must be informed of all policies felevant to the effective handling of the company’s finances. Apart from the “ctor, and financial indicators covered in QUESTIONS 3.2 to 3.6 quote and explain TWO financial indicators why you feel that Denzel’s contract should not be renewed. Financial indicators /etherdata v ¥ Figures and trends ¥ ¥ «Earnings penshare decreased (from 58 cents) to 51 cents / by 7 cents / by 12%. + Return on average shareholders’ equity decreased from (from 6,2%) to 4,5% | by 1,7% points / by 27,4%. + Solvenoy ratio decreased (from 2,6: 1) to 2,2:1/ by 0,4: 1 Note: Do not accept % operating expenses on sales Be aware of relevant indicators not used in Q3.2 ~ Q3.6 excluding positive trends. e.g liquidity Copyright reserved Please turn overAccddommboaded from Stanmoreph sics.com DBE/MayiJune 2025 ang SCINSC ~ Marking Guidelines QUESTION 4 444 412 Copyright reserved Identify the type of audit report that Yungs Ltd received. Unqualified V Accept ‘clean’ report Name TWO reliable types of audit evidence that VC Auditors used as the basis for their opinion. Any TWO valid andidifferenttypesey =~ source daguments (any two may be marked separately e.g. invoices /receipts) journals ledgers (signed) contracts (signed) payrolls debtors’ statements creditors’ statements bank statements EFT voucher (proof of payment) asset registers physical inspections Deeds/registration documents Explain how this audit report could have a positive influence on the company in the future. Provide TWO points. Any TWO valid points VV ¥'¥ art mars fr incomplts paral/unear responses * Shareholders have confidence in the management of the company and would want to retain their shares. * It would attract potential shareholders. * [twill make it viable for the company to raise more capital in the future. * The company may find it easier to secure financing from financial institutions/It will improve the company's image and result in an increased credit rating. * Reassures shareholders that company's financials are trustworthy, reducing perceived risk. It may increase the share price of the company on the JSE. Please turn overAccdpowmtoaded from Stanmorephysics.com DBE/MayiJune 2025 ‘SC/NSC ~ Markirig Guidelines 4.2.1 [What action would Vintage Ltd have taken against the two directors who appeared in court? Provide TWO points. Any TINO vais points “wv potas treo pl undaresonsss They could have been suspended while investigations/court case are taking place. Directors’ fees and/or directors’ benefits may not have been paid out while court case is taking place. Dismissed or declareddelinquent directors, if they are found guilty in court. They may have been required to pay back the bribes to the company, if found guilty, Vintage Lid could!éiaim back any directors! fees or benefits earned during the period that the offence occurred. 4.2.2 [Explain TWO consequences Josh, the external auditor, may face for his illegal conduct. Any TWO valid points ~~ tia ESS Ture Disciplinary action by his employerilose his licence from professional body, e.g. SAICA. Other auditing reports he signed off, may be investigated. He may lose creditabilty in his workplace. VC Auditors (employer) may sue him for loss of future income / other auditing contracts due to their damaged reputation. Vintage Ltd (client) could sue him in his personal capacity to repay the total bribe money he received/he may lose his personal possessions. If he is also charged for fraud, he may face jail time / not be able to practice as an auditor in future. Do not accept: Lose qualification: blacklisted: fired TOTAL: 150 Copyright reservedbasic education Department Basie Education REPUBLIC OF SOUTH AFRICA, SENIOR CERTIFICATE EXAMINATIONS/ NATIONAL SENIOR CERTIFICATE EXAMINATIONS Downloaded from gleegercrhysics-com ‘Approved jartereed ot eine MM SEEVNARAIN ROFFE M VANNEER Internal moderator | ope ieranal medevator Umalusi 9 June 2025) aeons Extemal moderator Extemal moderator 9 June 2025: 9 June 2025: MARKS: 150 MARKING PRINCIPLES: 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 iter (no penalty for misplaced item). No double penalty applied 2. Penalties for placement or poor presentation (0.9. details) are applied only if the candidate is earning ‘marks on the figures for that item. 3. Unless otherwise stated, give full marks for a correct answer. If answer is incorrect, mark workings. 4, Ifa pre-adjustment figure is shown as a final figure, allocate the part-mark as @ working mark 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 answer as well 5. Unless otherwise indicated, the positive or negative effect of any figure must be considered to award the mark, Ifno + 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, These marking guidelines are not for public distribution as certain items might imply incorrect treatment. The adjustments made are due to nuances in certain questions. 9. Where penalties are applied, the marks for that section of the question canriot be a final negative 40. Where method marks are awarded for an operation, the marker must inspect reasonableness of the answer. 11. ‘Operation’ means check operation. ‘One part correct’ means operation and one part correct, Note: check operation must be +, -, x, + as per candidate's calculation (if valid) or per marking guidelines. 12, Incalculations, do not award marks for workings if numerator & denominator are swapped — this also applies to ratios. 13. In awarding method marks, ensure that candidates do not get full marks for any item that is incorrect, atleast in part. Indicate with a G8. 14, Be aware of candidates who provide valid alternatives beyond the marking guidelines. Note that one ‘comment could contain different aspects. 15. Codes: f= foreign item; p = placementipresentation. These marking guidelines consist of 12 pages. Copyright reserved Please turn overAccdDommtoaded from Stanmoreph sics.com DBE/MayiJune 2025 ang SC/NSC — ME Guidelines QUESTION 1 44 VAT 14.4 1 No. WORKINGS EFFECT Opening balance 51 500 Example | 6 900-6 000 +900 10) 224 720 x 15/115 - 28920 vv (i) }42.000% 15/100 - 1800 vv (187 795 v — 21 275 v) x (198/115 186 520 7 two marks #21720) fa# ‘OR (163'300 = "18 500 ) x [15/1 oremmatk one mark) one fl 144 800 two marks | pat ancweris shown with es cee, OR 24495 -— 2775 ‘Merks only; not final mark two marks one mark =) (iv) y. - 765 VAT PAYABLE AUTRE Accept 42.635 coop! brackets for negative amounts Total must include the opening balance. 1.1.2 | Karen wants to deregister her business as a VAT vendor as she is unable to meet VAT deadlines for submissions. What advice would you give to Karen? State ONE point. Any ONE valid point vv" Partmarks for patialundear answer + Ifthe business's turnover exceeds Rim p.a., it is compulsory to be registered and submit VAT returns. + If submission deadline is not met, the business will have to pay penalties to SARS. ‘© She will not be able to claim back the VAT paid to suppliers. Karen should have a tax consultant who can remind her of tax period to file on time. Set up automated reminders through eFiling system, Copyright reserved Please turn overAccddommtoaded from Stanmoreph sics.com DBE/MayiJune 2025 ‘SCINSC - Marking Guidelines 4.2 CREDITORS' RECONCILIATION CREDITORS LEDGER | STATEMENT OF ACCOUNT 12a ACCOUNT.OF FROM CANON SUPPLIERS EPSON TRADERS BALANCES 101 900 88 900 0 +400 ¥ (i) -2700 vv aie ere a 5 Bo ay ay a #37200 Vv (ivy b 2:000 77 5.000 ¥ ) 43 800 v (vi) 241900 v7 (vil) 9 000 v J BALANCES 87 800 ZI 87 800 I" EA ‘Balances may be diferent, must include the opening balanoes +f foreign items per line provided a mark is ecored on that tne; (8, max could be -6) ‘Accept uly correct answers on wrong ines. 1.2.2 [it was discovered that the purchasing manager, Senzo, had signed a fictitious invoice received from Prime Suppliers. The banking details of his son appeared ‘on this invoice. The relevant payment was processed by the financial department. Other than dismissing ‘ONE valid point ¥ 7 Conduct a disciplinary hearing / Issue a written warning. ONE action Lay criminal charges against him to be taken Launch civil charges to pay back the money. Temporary suspend him while investigating Liable for demotion / transfer to another department. against him Conduct forensic audit to check for other possible fraud. ‘ONE valid suggestion 77 + Validation of the existence of suppliers. ONE Ensure goods received are supported by order form and suggestion a valid invoice. on how'ts Proper authorization of payments. prevent this |* Financial department should verify banking details before problem in making payment. future Regular training on ethics and consequences of misconduct. Conduct regular surprise checks or internal audits to detect fraud ear Copyright reserved Please turn overAccddowmtoaded from Stanmore EA :ph /sics.com DBE/May/June 2025 ‘SC/NSC ~ Markirig Guidelines QUESTION 2 24 [244 |indirect 24.2. | fixed v 2.1.3. | administration v 2.2___WOLLIES’ WINTER GLOVES 2.2.1 | Calculate the direct material cost for the year ended 28 February 2025. (WORKINGS ANSWER twomars 1) 770 000/30 000) 26000¥ % R5Qvv 7 1534 000 OR — (1.440000 4330000) {4 000 x59) cians 1770000 ~ 238000 ‘one mark two marks OR 1770000 x [26 000/30 000] onemark two marks 2.2.2 [Calculate the correct factory overhead cost for the year ended 2.2 | 28 February 2025. Incorrect total 966 360 Telephone - 27000 vv Indirect materials - 2800 ¥¥ Cleaners wages [48 000/2] x [6/100 x 2/12] +240 var Water and electricity “5m 2.23 Copyright reserved 940 000 Calculate the gross profit earned for the year ended Final amount must inelude the opening total 28 February 2025. 4600 000 ~ (1534000 + 876000 + 940000) 3.350 000 three marks Be alert to atorative werKings dc 93 lodger AccoUM OF Use of brackets WORKINGS ANSWER see 224 e222 4 600 000 ¥ = 1 534 000 Mi - 876 000 v ~940 000 M1 OR 1 250 000 7 ‘one part correct Please turn overAccddommtoaded from Stanmoreph sics.com DBE/MayiJune 2025 ang ‘SCINSC — Marking Guidelines 2.2.4 [Jerry was Satisfied with the performance during the current year and plans to increase production by 30% in the next financial year. He is confident that the demand will increase due to changing weather patterns. Comment on the level of production and the break-even points comparing the results for the current financial year with his plan for the next financial ear. Provide TWO points, with figures. Comparison of BEP to level of production “~ comparative figures “¥ Expected responses for marks: « He made profit on 2000 units (40 000 — 38 000) for the current financial year and expect more profit on 13 600 units (52 000 — 38 400) next financial year. + He produced 2 000 units above the BEP (current financial year) and he expects fo produce 13 600 units above the BEP (next financial year). ‘* He is anticipating an increased profit on 11 600 units, as BEP is expected to increase by 400 units (1,1%), while production is projected to increase by 12 000 units (30%). Expected response for 2 marks: Max two marks in total (mark one optional response only) Comparison of BEP to BEP and production fo production * Production will increase (from 40 000 units) to 52000 units / by 12 000 units. * BEP will increase (from 38 000 units) to 38 400 units / by 400 units. Calculate the increase in profits Jerry expects to earn from the year ended 28 February 2025 to the next financial year. WORKINGS ANSWER (43.600 x 47:5) [000 x song Av 566 000 71 646.000 vv - 80000 %v oan 2.2.5 [Give TWO possible reasons for the proposed increase in direct labour cost in the next financial year. Quote figures. Any TWO Valid)points ¥ “figures andtrend vv * DLC will increase (from R876 000) to R1 300 000 / by R424 000 / by 48%. Provision made for overtime / Production incentive bonuses set to be implemented which may be necessary to meet targets. + Unit costs will increase (from R21,90) to R25,00 / by R3,10 / by 14%. He has accommodated annual inflationary increases or salary increase or introduced improved fringe benefits. EA Copyright reserved Please turn overAccdpowmtoaded from Stanmorephy sics.com DBE/MayiJune 2025 ang ‘SCINSC — Mi Guidelines 2.2.6 Jerry has projected an increase of R304 000 for the total fixed costs. Provide TWO possible expense items he may have considered when making his projections. Provide a different reason for each item identified. EXPENSE ITEM vv REASON vo + Depreciation on factory machinery ‘Additional machinery may be required for increased production. * Indirectabour, The workload of the foreman/supervisor will increase/increase minimum wage of cleaners. + Waterand electricity” Increased usage due to overtime hours. + Indirect materials / consumable stores More units must be cleaned or maintained / Increased office cleaning or packaging materials. + Rent expenses: More rental space to accommodate the increase in production. * Insurance © Repairs and maintenance * Security ‘An increase in assets will require additional coverage. ‘An increased production will lead to regular repairs and maintenance. There will be a need of more security personnel / an improved or more advanced security system. «Administration cost Need to hire more office staff// Increased office work to manage increased production * Telephone Frequent communication with customers and suppliers. OR ‘Any ONE valid point ¥ figures v Explain why Jerry should not be concerned about this proposed increase in the total fixed costs. Provide ONE point with figures. The fixed cost per unit decreased (from R38,00) to R35,10 / by R2,90 / by 7,6% while the units produced increased. Fixed cost per unit decreased (from R38,00) to R35, 10/ by R2,90 / by 7,6% and he took advantage of economies of scale. Copyright reserved es Please turn overAccdpowmtoaded from Stanmorephysics.com DBE/MayiJune 2025 ‘SC/NSC — Markirig Guidelines QUESTION 3 HEADPHONES 3.1 [Calculate the value of the closing stock on 28 February 2025, using the FIFO method. WORKINGS ANSWER (320-80) (140+ 20) (os0—240) [185+ 20) (240v x 160%) + (110M x 185v) 38 400 17 050 55 450 ao marks cone m mark one mark Soe two batches must be added OR (33600 + 4800) + | (14850 + 2200) FA ‘ne Met one Mas one mmark one mark 3.2 [Helen decided to ehange suppliers in September 2024 after receiving advice from her sister, the store manager. Provide TWO points that show her customers are unhappy with the quality of the headphones purchased from the new suppliers. Quote figures. Any TWO relevant points = ¥ ~ Figures ¥ a 80 units were returned/R11 200 had to be refunded. Closing stock has increased (from 170 units) to 350 units / by 180 units / by 106%. 350 of the 620 (56%) units available for sale remains unsold. 310 new units sold (R68 200) compared to 680 old units sold (R149 600) / customers had negative reviews reflected on website or suggestion box, therefore sales decreased by 370 (R81 400). What advice would you give to Helen about changing the supplier in the future? Provide ONE point. Any ONE relevant point vv Ensure that the quality of the headphones is not,going to be compromised Her decision must not be influencediby familyor employees, but should be based on an informed decision by herself or her own research. Do background Ghecks on new suppliers before changing. Compare warranty of new suppliers with that from current supplier. Conduct market research to ensure new headphones-meets market demand. Evaluate product performance through customer response before buying in bulk, Copyright reserved Please turn overAccdpowmtoaded from Stanmorept sics.com DBE/MayiJune 2025 ‘SCINSC — Marking Guidelines TELEVISION SETS 3.3 3.4 3.5 Copyright reserved Calculate the closing stock of the television sets on 28 February 2025. TV MODEL WORKINGS ANSWER, | Quantum ra 166-25) 6500 x 33vv " 214 600 WZ Ry! OR 1677 000 one mark - 1462 500 two marks (468.000+1 208000) [2 1897508 5009 750) Ti 4 W200 x 2A1Vvv Limpia 181 200 * ie OR 828000 - 676800 fonemark| (987 0007 20010500] wo marks TOTAL war angetned mark for 4 shown a nal anewer | __ 365 700 Ssupetuous ety lose method on Calculate the €ostof sales of the Limpid TVs. - WaBKINGS ‘ANSWER 8280007181 2008) 676 800 1 OR 94 x 7200 OR 987 000x [7 200/10 500] cnemark orenviiek—_onemark gre mmark Calculate how long\(in days) it will take Helen to sell the closing stock of the Limpid TVs. WORKINGS: ANSWER see 33 ; 151-200 BK 90 v 676 800 20,1 days 00 34 cop are or ‘Acopt 20 2A onemmark X90 one matk 94 ona mar Helen feels that she has made a wise decision by replacing the Quantum TVs with the Limpid TVs. Give ONE possible reason (with figures) to substantiate her opinion. ‘AnyONE reason % Figures 7 * Higher profit earned per unit. (Quantum: R1 150 / Limpid: R3 300) * Higher average monthly sales. (Quantum units: 11,7 (8,8) / Limpid: 31) * Unsold stock of Quantum (18 units) had to be donated. Explain how this will have a positive effect on her business. Provide ONE point. ‘Any ONE relevant point -Y¥ * Corporate social responsibility / increased support from the community / increase customer loyalty / increase in sales. * Creates a positive image as latest technology is sold/ it will enhance brand perception. + Increase reputation as a business that cares for the community increase opportunity to gain positive publicity. Can result in tax benefits / result in lower taxable income. FA FA Please turn overAccddommtoaded from Stanmoreph sics.com ang ‘SCINSC — Mi VACUUM AND PRESSURE CLEANERS 3.6 VACUUM CLEANERS Guidelines Identify ONE problem with vacuum cleaners. Quote figures. What advice would you give? State ONE point. PROBLEM (with figures) v v ADVICE, v + Decrease of 80 units (22,2%) in cash | « sales / increase, of 40 (24,4%) units in credit sales, + Returns increased by 7 units (46,7%) | « Encourage more cash sales by increasing discounts on cash sales / Launch targeted in-store deals that favour cash transactions. Reduce current payment terms / review the process to check credit records of potential debtors / revise credit limit regularly. Supply quality goods / check the product before dispatching it to customers / Offer customers store voucher rather than full refund / Upgrade to a newer and more advanced vacuum cleaner / change the supplier 3.7 PRESSURE CLEANERS cleaners. Quote figures. Explain TWO good decisions that Helen has taken in respect of pressure Explain how each decision improved the results on 28 February 2025. Provide ONE different point for EACH decision. DECISION (with figures) vv vv Decision | -ash sales (from 5%) to 10% / points. IMPROVEMENT IN RESULTS. v v Increased the trade discount on Increase in cash sales 5% Changed the credit policy (from 150 days) to 120 days / Interest rate decreased (from 18%) to 15% Better debtors’ collection / reduce bad debts (defaulters) Decision | Decrease in mark-up % 3 | (from 60%) to 40%. Increase in total number of units sold DBE/May/lune 2025 FA Copyright reserved Please turn overAccddowmtoaded from Stanmorephysics.com DBE/MayiJune 2025 ‘SC/NSC — Markirig Guidelines QUESTION 4 Explain how the preparation of the Cash Budget serves as a management tool in assisting the business to manage its cash resources. State ONE point. ‘Any ONE valid point v/v" Partmarks for patialuncioar answer Can be used as a control measure to see if spending and receipts are going according to plan and to make necessary changes timeously. Management willsuse it,for planning cash purchases to see what they can afford and in what month to make purchases. It alsoalerts them to the need to cut down expenditure / to take out a loan / invest more eapital / apply for an overdraft facility. Indicate fraud by comparing the actual to the budgeted amounts. Identify TWO items in the payment section of this Cash Budget, which will not appear in the Projected Statement of Comprehensive Income. Any TWO items ¥ v + Loan repayment * Deposit for vehicle «Payment to creditors * Cash purchase of stock 4.3 _CREDITORS' PAYMENT SCHEDULE CREDIT MONTH | PURCHASES 96 000 APRIL 9600 Supertoous enty Lose method on total MAY 108 000 16 200 10800 vv 120000 ¥” 18000 MM SUNE | fretsnom, avd mas Ob500 Cre pucnase x 15% JULY 144 000 102600 vv Foe pat corSt— Copyright reserved Please turn overAccdawurtoaded from Stanmoreph) sics com SC/NSC — Markirig 44 45 DBE/May/June 2025 Guidelines CALCULATE: WORKINGS ANSWER (| Cash sales for July 2025 R270 000 x 40% R108 000 vv OR 144 000 x 60/80 OR 270000 - 162 000 (i)_| Salaries and wages for June 2025 “pup o 22 400 ‘oe pat comet (ii) | Repayme ‘on 4 July 2025 [3 150-2250) 900 ¥ x [100/15] v x 12 ¥ 6000 72.000 @ womans one part omeck OR 252000 - 180000 fone marc __wo mark 4 (iv) | Deposit for vehicle on 31 July 2025 Bross x TOO)" R6875¥ x 4vv R 27 500M ‘one pat comet OR 247 500 x [100/90 x 10/100] ‘vo marks ‘one mark 4 Calculate the reduction in the floor space (in m’) July 2025. being rented during WORKINGS ANSWER [59 940 - 47 95) R11 988 vv 36.m ? OF Bart correct FA Copyright reserved Please turn overAccddowsmtoaded from Stanmorephysics.com DBE/MayiJune 2025 46 4.6.1 4.6.2 ‘SC/NSC — Markirig Guidelines Refer to Information H Explain the effect of the new competitor on any TWO items in the budgeted and actual information for April 2025. Quote figures. TWO valid points“ Y figures and trend ¥ ¥ ‘* Number of units sold 540 is less than budgeted (720) / 180 (25%) below budget. * Actual sales R135 000 is less than budgeted R180 000 / R45 000 (25%) below budget, * Gross profit R45 000s less than budgeted R60 000 / R15 000 (25%) below budget. Identify TWO changes Daisy implemented in May 2025 in response to the new competitor. Quote figures. TWO valid changes ¥ ¥ ~—figures and trend ¥ ¥ Advertising increased (from 5%) to 9% Delivery expenses increased (from 4%) to 5%. Introduced commission, 2% of sales (R4 050) Decreased the selling price by 10% / (from R250) to R225 TOTAL MARKS 40 TOTAL: Copyright reserved 150