1

ACCOUNTING GAUTENG 2025 REVISION PACK- PAPER 2 ACTIVITIES

PAPER RECONCILIATIONS PAGES

June 2024 Sup NSC • Bank reconciliation

• Debtors’ reconciliation 3-4

Nov 2024 NSC • Debtors’ reconciliation

5-6
• Debtors’ age analysis
Nov 2023 NSC • Bank reconciliation
• Creditors’ reconciliation 7-8

Gauteng Prelim 2024 • Bank reconciliation

9-11
• Debtors’ reconciliation
Free state Prelim 2024 • Bank reconciliation
• Debtors’ age analysis 12-13
• Creditors’ reconciliation

PAPER VAT PAGES

Nov 2024 NSC • Effect on VAT payable to SARS 14

June 2024 NSC Sup • Calculate VAT on goods sold
14
• Calculate amount payable/ receivable
Gauteng prelim 2024 • Amount VAT payable to SARS
15
• Internal control

PAPER STOCK VALIDATION PAGES

Nov 2024 NSC • Value of one pair of sunglasses using weighted

average method 16-18
• Value of closing stock using FIFO
June 2024 NSC Sup • Calculating closing stock using specific
identification method 19-21
• Stock turnover rate
Nov 2023 NSC • Calculating closing stock using specific
identification method
22-23
• Stockholding period
• Fixed assets
Gauteng prelim 2024 • Value of closing stock using weighted average
• Internal control / Problem solving 24-25
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PAPER COST ACCOUNTING PAGES

Nov 2024 NSC • Calculating Direct Material Cost

• Calculating Direct Labour Cost
• Calculating Factory Overhead costs 26-28
• Level of production and Breakeven point
Nov 2023 NSC • Calculating Direct Material Cost
• Calculating Factory Overhead costs
• Production cost statement- from top to bottom 29-31
• Breakeven point

June 2024 NSC Sup • Calculating Factory Overhead costs

• Production cost statement- calculating cost of
finished goods stock using number of units 32-34
produced and it’s cost, bottom way up
• Analysis of manufacturing
Mpumalanga 2024 Prelim • Production cost statement- calculating cost of
finished goods stock using finish good stock
balances and cost of sales, bottom way up
• Abridged Statement of Comprehensive
Income 35-36
• Calculating number of units to be produced
to achieve the target (using the contributions)

PAPER BUDGETS PAGES

Nov 2024 NSC • Analysis of cash budget vs Projected Statement

of comprehensive income
37-39
• Creditors’ payment schedule
• Sales policy
Nov 2023 NSC • Debtors’ collection schedule
40-42
• Budgeted vs actual figures
June 2024 NSC Sup • Debtors’ collection schedule
• Cash budget calculation 43-45
• Effect of competitor
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JUNE 2024 NSC SUP: QUESTION 1

1.1 BANK RECONCILIATION

1.1.1 Calculate the correct bank account balance on 31 May 2024.

WORKINGS ANSWER
(15 000 – 10 000) (5 480 – 4 580)
9 050 – 5 000 ✓✓ + 900 ✓✓ – 310 ✓ – 1 780 ✓ + 1 060 ✓
CRJ CPJ
OR 9 050 + (900 + 1 060) – (5 000 + 310 + 1 780) 3 920 
one part correct

OR Bank Account format

9 050 5 000
900 310
1 060 1 780
Bal c/o 3 920
Be alert to alternative presentations for calculations 8

1.1.2 Bank Reconciliation Statement on 31 May 2024.

ONE-
COLUMN DEBITS CREDITS
METHOD:
21 520 
Balance as per bank statement 21 520 Balancing figure;
Could be Dr

Outstanding deposit 17 500 17 500 

Error on statement (25 000) 25 000 
Outstanding EFT No. 819 (11 880) 11 880 
Error on statement 1 780 1 780
Balance as per bank account 3 920 3 920 
See 1.1.1

40 800 40 800 6
 4

1.1.3 Explain TWO important instructions that Scot should give to Kiki to ensure
that corruption does not occur with regards to the processing of EFTs.
Any TWO control measures ✓✓ ✓✓ part marks for incomplete or unclear response

• Before issuing EFTs, Kiki must check that the bank details and amounts due
are correct by referring to appropriate documents and records of service
providers.
• She must monitor the bank transaction records (mid-term statements)
provided on the bank’s website.
• She must protect all the passwords and codes that are necessary for using
the online application and computer system.
• She must report daily to her supervisor (or Scot) on the daily transactions.
• Authorisation by supervisor (or Scot) for issuing all EFTs or for certain
transactions or payments over a specific amount. 4

1.2 EXTRACT: LIST OF DEBTORS

DEBTORS WORKINGS BALANCE

A. Judy 27 750 – 9 000  18 750 

B. Benior (400) + 9 000  8 600 
C. Oliver 19 300 + 6 000  – 800  24 500 *
*one part correct
(3 490) #
D. Fiery 2 900 – 6 390  # if deducted
and in brackets 12

TOTAL MARKS 30
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NOVEMBER 2024 NSC: DEBTORS’ RECON; AGE ANALYSIS

1.1 1.1.1 True 🗸

1.1.2 False🗸
3
1.1.3 True 🗸

1.2.1 Calculate the correct balance of the Debtors' Control on 31 August 2024.

Balance before errors and omissions R359 100

(i) + 4 500 🗸
(ii) 0
(iii) - 11 000 🗸
(iv) 0
+ 2 700 🗸🗸
(v) [+5 200 – 2 500] two marks for
Both figures; R2 700 must be +ve.

(vi) 0
Correct balance of Debtors' Control Account 355 300 
Should include R359 100 one part correct

Superfluous entry; lose method on 5

total

1.2.2 Complete the correct Debtors' List on 31 August 2024.

N. Naidoo 63 000 + 4 500 67 500 🗸🗸

S. Sibiya 69 000 + 18 000 87 000 🗸🗸

V. Esterhuizen 114 000 – 18 000 🗸 + 2 700  98 700 *

See 1.2.1(v)

J. Nyoka 95 700 – 3 450 🗸 – 3 450 🗸 88 800 *

– 6 900 two marks

W. du Plessis 11 500 + 7 500 🗸 – 5 700 🗸 13 300 *

1 800 two marks

Correct total of Debtors’ List 355 300 *

*one part correct
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1.3.1 Provide a calculation or figures to show why Timo Traders should not be
satisfied with the figures in the Debtors' Age Analysis.
WORKINGS ANSWER
[240 000 – 48 000]
OR [118 000 + 36 000 + 38 000] 80% *
one part correct
192 000 ✓✓ x 100 OR 49,2% + 15% + 15,8% Accept 10% below target
240 000 ✓ 1 Do not accept ‘R’

OR OR
[29 200 + 18 800]
48 000 two marks x 100 OR 12,2 % + 7,8% 20%
one part correct
240 000 one mark 1 Do not accept ‘R’ 4
‘x 100’ does not count as one part correct

1.3.2 Explain TWO points of advice that you will offer to the owner.
Any TWO valid point 🗸🗸 🗸🗸 Part marks for partial or unclear responses.
• Encourage customers to pay using debit order to avoid delayed payments.
• Implement automated reminder system (SMS, email and phone calls) to notify
customers of upcoming due dates, overdue accounts and payment confirmation.
• Proper screening of debtors or background check to assess debtors’ financial
status before credit is offered.
• Decrease credit limit of customers who are not adhering to credit terms / Assess
creditworthiness (credit score / credit history) regularly and adjust credit limits
accordingly.
• Offer various payment options available / payment plans to debtors not adhering to
credit terms.
• Suspend / block / freeze the accounts of debtors who fail to pay on time.
• Utilise debt collection service / hand over debtors to debt collectors / legal action.
Do not accept:
Offer discounts / charge interest 4

6
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1.1
NOVEMBER 2023 NSC BANK RECONCILIATION
1.1.1 TOTAL RECEIPTS TOTAL PAYMENTS
81 300 80 620
2 700 ✓✓ 30 000 ✓
240 ✓ 3 780 ✓
14 600 ✓ 540 ✓
(6 200 + 6 200) 12 400 ✓✓
11 000 
320 ✓
98 840  138 660 12
Bank balance in the General Ledger on 30 June 2023
WORKINGS ANSWER
(- 39 820 two method marks)
49 100✓ + 98 840  - 138 660  R9 280 
one part correct
see CRJ see CPJ 4

1.1.2 Choose only ONE template below to answer this question.

TWO COLUMN METHOD:
BANK RECONCILIATION STATEMENT ON 30 JUNE 2023
DEBIT CREDIT
Balance as per bank statement 11 240 *
Outstanding deposit 31 500 ✓
Outstanding EFTs: 974 9 700 ✓
975 13 300 ✓
ATM withdrawal for wages 11 000 
Cr incorrect amount 540 ✓
Balance as per bank account 9 280 
see 1.1.1

43 280 43 280
* balancing figure. 8
OR ONE COLUMN METHOD:
BANK RECONCILIATION STATEMENT ON 30 JUNE 2023
Balance as per bank statement 11 240 
Outstanding deposit 31 500 ✓
Outstanding EFTs: 974 (9 700) ✓
975 (13 300) ✓
ATM withdrawal for wages (11 000) 
Cr incorrect amount 540 ✓✓
Balance as per bank account 9 280 
8

7
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1.1.3 Explain TWO strategies that the business can use to address the problem
of missing cash.
Any TWO strategies ✓✓ ✓✓ award part marks for incomplete / partial answers

• Receiving and banking of cash should be done by different people /

division of duties
• Request SMS notifications from the bank
• Outsourcing the collection and transportation of cash to security
companies.
4

1.2.1 CREDITORS' RECONCILIATION

CREDITORS' CREDITORS'
NO.
CONTROL LIST
Provisional
175 940 186 350
balances
(i) - 3 600  0
(ii) 0 + 990 
(iii) 0 0
(iv) 0 - 15 000 
(v) + 1 660  + 1 660 
see creditors control

Both totals 1 mark 174 000  174 000 9

1.2.2 SEB Traders intends settling the account of Phuto Wholesalers on

31 August 2023. Calculate the amount due to them.
WORKINGS ANSWER

64 950 + 990  - 9 540  56 400 

TOTAL MARKS

40

8
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GAUTENG PRELIM 2024
1.1 BANK RECONCILIATION

CASH RECEIPTS JOURNAL CASH PAYMENTS JOURNAL

Amount Amount
R158 100 R94 790
1 800  10 000 
2 160  850 
1 770 
32 000 
9 000 

162 060 148 410 8

Bank Account balance in the General Ledger on 31 August 2024

WORKINGS ANSWER
See CRJ see CPJ

– 17 470 
+ 162 060 
– 148 410 OR 162 060 17 470 – 3 820
one part correct
13 650 two m marks c/d 3 820 148 410
Accept alternative presentations like ledger accounts 4

1.1.2 Choose only ONE template below to answer this question.

TWO-COLUMN METHOD
BANK RECONCILIATION STATEMENT ON 31 AUGUST 2024
ONE- ONE-
COLUMN COLUMN DEBIT CREDIT
METHOD METHOD
Balance as per bank 2 840
DR and CR totals
statement 2 840 (2 840) Could be  must be the same
Do not accept R34 600 Cr
Credit outstanding
(24 620) 24 620 24 620 
deposit
Debit amount
11 000 (11 000) 11 000 
incorrectly credited
Debit outstanding
14 600 (14 600) 14 600 
EFT 633
Balance as per bank
account 3 820 (3 820) Could be Dr 3 820 
see 1.1.1
Do not accept R17 470
6
28 440 28 440
-1 for poor presentation/incorrect details
If candidate presents one-column & two-column reconciliation, mark version that benefits candidate.
For the 2-Column method, candidates must place figures in the correct column to earn marks.
For the 1-Column method, candidates must present the appropriate sign i.e. positive or negative.

9
 10

1.1.3 Explain ONE reason why the Internal Auditor should be concerned
about the control of cash. Provide a solution for his concerns.
Reason  Solution 
Solution based on reason
• Rolling of cash - R10 000 / • Use the collection companies to
missing money from cash sale collect cash on a daily basis.
on 23 July 2024. • Register for SMS notification
from the bank
• Incorrect capturing of cash • Daily reconciling / enhance
received/Credit card sales supervision and increasse the
captured incorrectly R21 300. frequency of monitoring. 2

1.1.4 Provide ONE benefit of receiving payments from customers using

EFT. Provide a reason for the benefit.
Benefits  Reason 
Any valid benefit Reason based on benefit

Eliminates the need for manual

Efficiency handling of cash

Saving business money on

transaction fees / The costs
Cost effective associated with processing,
depositing and reconciling physical
payments will be saved.

Security Reduces the risk of theft/fraud.

2

Award marks for reason implied in the benefit

10
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1.2 DEBTORS' RECONCILIATION

1.2.1 CORRECTION TO THE DEBTORS’ CONTROL ACCOUNT

Provisional balance 14 500
(i) +1 300 
(ii) +250 
(iii) 0/no change
(iv) 0/no change
(v) (540) 
-1 for superfluous entry in number (iii) and/or number (iv). Max -1 15 510  4

1.2.2 DEBTORS' LIST *one part correct

A. Kunene (–1 000 + 1 600 ) 600 *

T. Naidoo (6 200 – 900) 5 300 *
X. Zulu (2 300 – 540) 1 760 *
M. Smit (7 600 + 250) 7 850 *

15 510 * 10

1.2.3 Explain why the balance on the Debtors' Control Account in the
General Ledger should be the same as the total of Debtors' List.
Valid explanation 
Debtors' Control Account is the summary of debtors' list / Debtors' control
account reflects the total amount owed by all customers to the business /
They are both recorded using the same source document, so the
information used should be the same. 2

1.2.4 Provide TWO internal control measures that the business can use to
improve the collection of money from debtors, except charging of
interest.
TWO valid points 
Send regular reminders (SMS/Email/letter) / Automated invoicing and
payment reminders.
Give discount for early payments.
Establish and communicate clear payment terms and conditions with
customers (ensure that these terms are stated on invoices).
Hand over customers to debt collectors.
Suspend the debtors account for payment before making any
purchases. 2

TOTAL MARKS

40

11
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FREE STATE PRELIM 2024: BANK RECON; DEBTORS’ AGE ANALYSIS

1.1 Indicate whether the following statements are TRUE or FALSE.

Write only 'true' or 'false' next to the question numbers (1.1.1
to 1.1.3) in the ANSWER BOOK.

1.1.1 False 
1.1.2 True 
1.1.3 False 
3

1.2 BANK RECONCILIATION

1.2.1 Bank Account balance on 31 August 2024:

– 4 600 ✓ – 370 ✓– 480 ✓ + 17 300 ✓– 3 500 ✓ = 8 350  one part correct

Be alert to alternative presentations (e.g. T-account).

Bank Reconciliation Statement on 31 August 2024:

1.2.2 DEBIT CREDIT
Balance as per Bank statement 1 970  (balancing figure one part
correct, if totals balance )
Outstanding deposit 12 340 ✓
Outstanding EFT no. 827 2 500 ✓
Incorrect debit by bank 480 ✓✓
Balance as per Bank Account See 1.2.1
8 350 
12 820 12 820
6

1.3 DEBTORS AGE ANALYSIS AND INTERNAL CONTROL

1.3.1 Calculate the percentage of total debts exceeding the credit

terms.
22 360 + 10 640
33 000  100
60 000  x 1 = 55%
one part correct
3
1.3.2 Does the business keep tight control over its debtors? Explain.
TWO valid points ✓✓  figures can be used to motivate answers
see 1.3.1
• Only 45% of the debtors are keeping to the 30 days terms/55% not.
• Mornè, Tshepo and Rahu were allowed to buy in the current month
although they owe money for 60 days/90 days. R15 500/R6600 for
60 days, R4 500 /R3140 for 90 days.
• They must pay their creditors within 30 days to qualify for an early
payment discount but only collect 45% of debtors. 4

12
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1.4.1 CREDITORS' RECONCILIATION

Creditor's Control Creditor's List

Incorrect
41 167 58 667
Balance
(– 1 400 + 1 500)
(i)
one mark one mark ✓✓
+ 100
(ii) – 500 ✓
(iii) (– 7 900 – 7 900)
one mark one mark
– 15 800 ✓✓
(iv) +792 ✓ +792 ✓
(v) + 1 100 ✓✓
(vi) – 1 800 ✓ – 1 800 ✓
41 359 * 41 359
Method mark for both totals, one part correct
-1 per line if a mark is earned on the line
12

1.4.2 Give TWO advantages in support of this suggestion.

TWO valid advantages  

• It will be much safer, having proof of payments available

immediately.
• Keeping track of payments can be done more accurately.
• Very convenient, since bank statements can be accessed from the
business and any time of the day.
• Using the banking app payments history can easily be recalled.

4
Name ONE procedure which the business will have to put into place.
ONE valid suggestion ✓✓ part mark for incomplete/unclear response

• The business needs to put internal control measures in place, e.g.

name someone to authorise all EFT payments.
• Name someone to take charge of receiving the OTPs to authorise
EFT payments.
• Ensure all creditors are listed as recipients on the banking
app/double-check the banking details of a creditor before making a
payment via EFT. 2

TOTAL MARKS

40

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NOVEMBER 2024 NSC VAT:

1.1.4
Analyse the transactions under the headings below. Indicate the effect of EACH
answer on the amount payable to SARS.
EFFECT ON
VAT VAT PAYABLE TO
NO. CALCULATIONS
AMOUNT SARS
(Increase/Decrease)
E.g. 5 200 x 15/100 R780 Increase
A. 17 250 x 15/115 2 250 🗸 Increase / + 🗸
[139 200 x 15/100] [9 200 x 15/100]
20 880 🗸 – 1 380 🗸 19 500 *
B. OR [139 200 – 9 200] *one part correct Increase / + 🗸
130 000 two marks x 15/100 If x 15/100

OR 149 500 one mark – 130 000 one mark

23 000 🗸 x [90/100 x 15/115] 🗸

one mark one mark 2 700 ☑*
C. OR 20 000 x [90/100 x 15/100] *one part correct Decrease / – 🗸
one mark one mark
OR 20 700 – 18 000

10

JUNE 2024 NSC: VAT

2.1.1 Calculate the VAT amount on the goods sold by the business.
WORKINGS ANSWER
(182 000 x 90%) two marks
(839 800 ✓ – 163 800 ✓✓) x 15% 101 400 
676 000 three marks one part correct
4

2.1.2 Calculate the amount payable to or receivable from SARS on 30 April 2024.
WORKINGS ANSWER
– 5 340 – 82 200  + 101 400  – 4 110  + 4 800 
OR 5 340 + 82 200 – 101 400 + 4 110 – 4 800
14 550 
OR VAT Control one part correct
5 340 101
82 200 400
4 110 4
Bal 800
c/o
14 550
Be alert to alternative presentations for calculations 7

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GAUTENG PRELIM 2024: VAT

3.4.1 Calculate the amount of VAT payable to SARS for the VAT period
ended 31 July 2024.
WORKINGS ANSWER
Mark one option only; inspect option that benefits the candidate.
Be alert to alternative presentation for calculations.

     
6 300 – 1 035 – 3 075 – 117 + 240 + 8 790
(9 450 – 660)
one mark one mark

OR – 6 300 + 1 035 + 3 075 + 117 – 240 – 8 790 11 103 

one part correct
OR OR
1 035 6 300 6 300 1 035
3 075* 240* 240* 3 075*
117* 8 790*# 8790*# 117*
11 103 11 103
15 330 15 330 15 330 66 255
9
*Amounts maybe be in brackets in the opposite column / (side).
Mark one option only; inspect option that benefits the candidate.
#It consist of two amounts (9 450 – 660)

3.4.2 Ali insists that the laptop must be recorded as part of Baya Trader’s
equipment, and R1 680 must be recorded as a VAT input in the
business' books.

Explain what you would say to Ali. Provide ONE point.

Any ONE point  award part marks for incomplete/unclear answer

Expected responses for two marks:

This is tax evasion / he is attempting to reduce the amount due to

SARS for VAT / it is illegal and unethical.
He will be increasing the VAT input, effectively reducing the amount
due to SARS.
He could be fined or imprisoned because it is a criminal offence.
Personal transactions and business transactions should be kept
separate (Business entity concept)/Ali should pay for this out of his
private bank account.
As the laptop is not used for business purposes, the full amount of
R12 880 should be treated as drawings.
2

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NOVEMBER 2024 NSC: STOCK VALIDATION

2.1.1 The weighted average cost of ONE pair of sunglasses

WORKINGS ANSWER
[1 719 000 + 8 781 000]
10 500 000 ✓✓
3 000 ✓✓ R3 500 ☑
one part correct
[620 + 2 380]

Numerator and denominator must be marked as such / all amounts are

stand-alone. Do not award marks for any operation done on 10 500 000
and 3 000.

2.1.2
The number of sunglasses stolen
WORKINGS ANSWER
[620 + 2 380] 110 ☑ 4
3 000 ✓ – 2 050 ✓ – 840 ✓ one part correct

2.1.3 The value of the closing stock using the first-in-first-out

(FIFO) method
WORKINGS ANSWER
[745 – 20] (840 – 725)
*725 ✓ x 4 200 ✓ + *115 ☑ x 3 750 ✓ R3 476 250 ☑ 2
one part correct
3 045 000 431 250 Both figures must be added
two marks one m. mark one mark

*For method mark; both figures must

add up to 840.

The rand value of the sunglasses stolen, using the

weighted-average stock valuation method
WORKINGS ANSWER

R385 000 ☑☑
R3 500 x 110 two m. marks or nothing. If
see 2.1.1 see 2.1.2 above amount calculated in (2.1.1 x
2.1.2) above. 5

16
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2.1.4 Explain how Nosisa could have proven Jack and Micha guilty of the theft
of the stock. Provide ONE point.
Any valid comment ✓✓ Part marks for partial or unclear responses.

• Use whistle-blower’s statement as evidence and confirm the findings.

• Compare the supplier’s invoice with order forms / delivery notes to check
for discrepancies.
• Verify stock records through physical stock count upon delivery.
• Request tracking evidence of route and compare with delivery dates.
• Check CCTV footage for unusual activities when stock is delivered. 2

What action should have been taken against Micha and Jack? Provide ONE point
for each person.
Micha (salesperson) ✓✓ Jack (supplier’s driver) ✓✓
• Conduct a fair disciplinary hearing / • Inform the owner of his involvement
Suspend Micha pending the outcome and request action be taken against
of hearing. him.
• Audit / Investigate supplier’s past • Jack should not be assigned to deal
transactions for other possible with the business anymore / Prohibit
misconduct / fraud. Jack from entering the business
• File criminal complaint against him. property.
• Deducting the money from his salary • File criminal charges against him.
/ demand repayments from Micha to • Pursue compensation from him if
recover losses. evidence confirms his involvement.
• Demote the salesperson / restrict him • Update contracts with the supplier to
from working in similar roles within include penalties for future unethical
the business. behaviour. 4
2.2.1 TROUSERS
Workings in square brackets constitute one part, cannot be separated.
Calculate the mark-up percentage achieved for trousers.
WORKINGS ANSWER
one mark
[920 – 500] [515 200 – 280 000]
420 ✓ x 100 OR 235 200 x 100 84% ☑
500 ✓ 1 280 000 1 one part correct
one mark ‘x 100’ does not count as
one part correct.
Numerator and denominator must be marked as such / all amounts are stand-alone.
Do not mix rands with units. 3

Comment on whether the mark-up percentage would benefit the business or not.
Any valid explanation 🗸🗸 Part marks for partial or unclear responses.

• Customers will not buy / pay higher price for the product.
• Price sensitive customers may choose competitors offering similar trousers for
less, leading to lower sales.
• Regular customer may be discouraged from making repeated purchases.
• A decrease in sales volume could negatively affect cash flow.
• SHP of 186 days / 6,2 months indicates lower demand which resulted in high
stock levels / slow sales can lead to stock being out of fashion. 2

17
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2.2.2 CASUAL SHIRTS

Comment on how the return of 120 casual shirts would affect the
business negatively. Provide ONE point.

Any valid explanation 🗸🗸

• High returns will make the business lose revenue / High return rate may
lead to decreased future sales (customers).
• Lead to lower sales revenue / decrease in demand / lower gross profit.
• This can negatively affect the business reputation (image).
• Preparing returned shirts for reselling at original selling price can lead to
additional cost.
2

2.2.3 FORMAL SHIRTS

Workings in square brackets constitute one part, cannot be separated.
Calculate how long (in days) it will take Mike to sell the closing stock of
the formal shirts.
WORKINGS ANSWER

125 ✓ x 120 days ✓✓ OR 121 days

855
OR 17,5 / 17,7 days ☑
one part correct
[R680 x 125] accept 18 days
85 000 one-mark x 120 days two mark OR 121 days
581 400

Numerator and denominator must be marked as such / all amounts are stand-alone.
Do not mix rands with units. 4

Comment on ONE other point that might concern Mike about the formal
shirts.
Any valid comment ✓✓
• No online sales for formal shirts / formal shirts are not currently available
for online sales.
• He is charging low mark-up % which may need to increase, risking the
loss of customer.
• They can suffer losses in profits, if suppliers increase their prices and the
business still maintains low mark-up%.
• There will be stock shortage in future as the closing stock could be sold
out quicker. 2

TOTAL MARKS
35

18
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JUNE 2024 NSC: STOCK VALIDATION

INVENTORY VALUATION

2.2 Calculate the expected cost price of one LITCHI phone in Rands per
unit.
WORKINGS ANSWER
5 488 two marks 1 012 two marks
[($280 x R17,50) ✓ x 1,12 ✓] + (303 600 ✓ ÷ 300 ✓)

R6 500
OR one part correct
1 950 000
two marks one mark
[($280 x R17,50 x 1,12) x 300 units] + R303 600
300 one mark 5

2.3 Calculate the total value of the closing stock of the CLEO and
BRUMA phones on 29 February 2024, using the specific
identification method.
MODEL WORKINGS ANSWER

CLEO (270 + 2 265 – 2 180) 2 840 000 

If x 8 000
355 ✓✓ x R8 000

BRUMA 920 x R2 500 2 300 000 ✓✓

TOTAL 5 140 000  6

 20

2.4 Calculate the average stock turnover rate for the CLEO phone for
2024.
WORKINGS ANSWER
24 416 000 x 100/140 OR 6 976 000 x 100/40 OR
2 180 x 8 000 OR 24 416 000 – 6 976 000 two marks if Units are
used
17 440 000  2 180 7,0 times 
one part correct;
. if average stock is
½ (2 160 000 ✓ + 2 840 000 ) ½ (270 + used
355)
2 500 000 two marks 312,5
6

2.5 The directors took decisions to adjust the mark-up % on the CLEO
and BRUMA phones for the 2024 financial year. Explain how these
decisions impacted on the gross profit and cash flow of the company
as well as on the stock turnover rates of each model.
CLEO BRUMA
Explanation ✓ Figures ✓ Explanation ✓ Figures ✓

The decrease in the % The increased in the %

mark-up (from 50%) to mark up (from 50%) to
40%: 70%:

• Gross profit increased • Gross profit increased

Explanation (from R5 900 000 to (from R2 540 000) to
on gross R6 976 000 / by 18,2% / R3 027 500 / by
profit & by R1 076 000. R487 500 / 19% despite
cash flow • 705 more units were the higher mark-up %.
sold • 810 units less were
• Sales revenue sold.
increased by R6 716 • Sales decreased by
000 / 37,9% contributing R267 500
to better cash flow.

Explanation ✓ Figures ✓ Explanation ✓ Figures ✓

The decrease in the % The decrease in the %

mark-up (from 50%) to mark-up (from 50%) to
40%: 70%:

Explanation • STR increased / improved • STR decreased (from

on stock- (from 4,4) to 7,0 times see 10,2) to 3,1 times.
2.2.3.
turnover • Sales decreased (from
rates • Sales increased (from 2 540 units) to 1 730
1 475) to 2 180 units units.
• This model appears to be
• Customers prefer a better
popular with customers.
quality phone if the basic
model becomes too
expensive.
8
 21

2.6 If the directors go ahead with the LITCHI phones and order a lot more
in the future and sell it at a mark-up of 40% on cost, how could this
impact on the sales of the CLEO and BRUMA phones. Explain,
quoting figures to support your opinion.

Any valid explanation ✓✓ part marks for incomplete or unclear answer

Additional figure/s or calculations ✓✓

• This would place the selling price between the Bruma (R11 200)
and the Cleo (R4 250); which could negatively affect the sales of
both models (Cleo may drop due to a cheaper alternative; Bruma
sales may drop due to a less expensive quality phone)
• The directors should be aware that they might lose out on the high
gross profit earned on the Cleo models (R3 200) against R2 600 on
the Litchi.

[The expected selling price would be R6 500 x 1,40 = R9 100]

4
 22

NOVEMBER 2023 NSC: STOCK VALIDATION AND FIXED ASSETS

4.1 4.1.1 perpetual ✓
4.1.2 weighted average ✓
4.1.3 first-in-first-out ✓ 3

4.2.1 Calculate the value of the closing stock on 28 February 2023. Use
the specific identification method.
WORKINGS ANSWER
(90 + 340 – 5) one part correct operation
Hawi: 425 – 300 = 125✓ x R3 800 = R475 000 
Yama: 495 – 430 = 65✓ x R5 410 = R351 650  R826 650 
Operation one part correct
OR

332 000 + 3 969 950 – 19 000 – 1 140 000 – 2 326 300 6

4.2.2 Calculate how long (in days) it will take to sell the closing stock of
the Hawi printers.
WORKINGS ANSWER
see 4.2.1
R475 000  x 365 days
1 140 000 ✓✓
300 x 3 800 see 4.2.1
152,1 days 
one part correct
OR
(90 + 340 – 5 – 300)
125 one mark x 365 = 152,1 days
300 two marks (see 4.2.1) 4

4.2.3 Explain whether Sipho should be concerned about the

stockholding periods of the Hawi and Yama printers. Quote
figures. Give possible reasons for the difference in the holding
periods of the two models.
✓✓✓ Hawi: Good = three marks; Satisfactory = two; Poor = one; Incorrect =
zero
✓✓✓ Yamai: Good = three marks; Satisfactory = two; Poor = one; Incorrect =
zero

Concerned:
• Hawi printers are selling slower (152 days) (See 4.2.2) than Yama
(55,2 days)/ Hawi printers not as popular with customers/some
printers returned (poor quality) / Changes in the models or
technology can affect the selling of printers within 152 days, making
the product obsolete / out-dated
• Although Yama is selling faster (55,2 days), it is more expensive
than Hawi (R7 300 vs. R 5 700) / customers demand good quality
despite high price.
Not concerned:
• Printers are durable items that can be sold in the near future /
within 152 days / longer than 152 days. 6
 23

4.3.1 Calculate the cost price of vehicles on 1 March 2022.

WORKINGS ANSWER

930 000 – 260 000 ✓ + 180 000 ✓ R850 000 

one part correct
3

Calculate the trade-in value received on the vehicle disposed of on

1 June 2022.
WORKINGS ANSWER
115 200 x 20% x 3/12]
(64 800 + 5 760)
180 000 ✓ + 5 560 ✓ – 70 560 ✓
one part correct
R115 000 
one part correct
OR
Asset disposal
180 000 one mark 70 560 one m.mark + one mark
5 560 one mark 115 000 one m.mark
5

4.3.2 Explain to the bookkeeper why his method is incorrect:

He has not realised that the asset is almost fully depreciated; therefore the
R75 000 cannot be correct as this would lead to a negative carrying value.
✓✓
Part mark for incomplete or unclear answer

Provide a calculation to support your explanation:

R37 500
(R300 000 – 262 500) – 1 = 37 499 ✓✓ No part marks
4

4.3.3 Explain TWO possible arguments that the CEO can use to support his
decision.
Any TWO valid reasons ✓✓ ✓✓ part mark for incomplete / unclear / partial answer

• The donation to a school in the community is part of the company’s

compliance to CSR (corporate social responsibility / King Code).
• It promotes the good image of the company / good publicity.
• Giving back to the community that supports the business.
• It is a tax-deductible donation.
4
 24

GAUTENG PRELIM 2024: STOCK VALIDATION

3.1 CONCEPTS
3.1.1 FIFO 
3.1.2 Perpetual 
3.1.3 Specific identification  3

3.2.1 Calculate the value of the closing stock on 29 February 2024. Use the
weighted-average method.
WORKINGS ANSWER
1 125 300 three marks
174 400 
+ 956 400 – 5 500  x 5 650
4 800 
+ 19 500 
– 100 
24 200 three marks 262 725 
one part correct
R46,50 x 5 650 must be x by 5 650
six marks

1 125 800 three marks

OR 174 400 + 956 400 – 5 000 x 5 650 OR
4 800 + 19 500 – 100
24 200 three marks 262 838
one part correct
R46,52 x 5 650 must be x by 5 650
six marks 7

3.2.2 Calculate how long (in days) it will take to sell the closing stock.
WORKINGS ANSWER
see 3.2.1 see 3.2.1
262 725 x 365 262 838 x 365 111,2 days
862 575  1 OR 862 962 one part correct
must be x by 365
[1 125 300 – 262 725 see 3.2.1] [1 125 300 – 262 838 see 3.2.1]
OR OR
one mark
5 650 x 365 111,5 days
one part correct
18 500 1 must be x by 365 3
one mark

3.2.3 The owner suspects that bars of face soap are being stolen. Provide a
calculation to confirm his suspicions.
WORKINGS ANSWER
[4 800 + 19 500 – 100]
24 200 – 18 500 – 5 650  50 units 
one part correct 4

3.2.4 Peter is thinking of employing another security guard at a monthly

salary of R6 200 to help control the stock of face soap. Explain why
this is NOT a good idea. Provide ONE point with figures.
Comparison of salary with missing stock amount  figures 

Salary of the security guard R 6 200 (per month) exceeds the cost of
missing stock R2 325 (50 x R46,50). see 3.2.3 OR R2 326 (50 x R46,52). see 3.2.3
3
 25

3.3 Provide ONE distinct problem (with figures) relating to EACH branch
corresponding solution for EACH problem.
Problem    Solution 
Figures   

• Slow sales – 600 cooler • Advertise more to

Sedibeng boxes were sold / high increase sales.
closing stock – 2 600
more than last year.

• Drawings are too high – • Owner must separate

Tshwane 15 cooler boxes taken personal and business
for personal use. finances.

• Creditors are paid within • Business must take

31 days and this will maximum permissible
lead to cash flow time to pay back
Mogale city problems. creditors.

• Debtors take too long to • Encourage debtors to

pay – 40 days. pay within credit terms. 9
 26

NOVEMBER 2024 NSC: COST ACCOUNTING

4.1 FLOWERPOTS MANUFACTURERS

Workings in square brackets constitute one part, cannot be separated.
4.1.1 Calculate the direct/raw material cost.
WORKINGS ANSWER

[4 800 x 1,4]
6 720 🗸🗸 x 1,1 🗸 x R125
7 392 three marks 924 000 ☑
if x 125
OR (6 720 two marks + 672 one mark) x R125

OR 4 800 one mark x 1,54 two marks x R125 4

4.1.2 Calculate the direct labour cost.

Direct labour budgeted for the year 1 117 200

Resigned worker 1 117 200 x 4/84

OR 159 600 x 4/12

[1 117 200 / 7] [159 600 x 8 / 12] (53 200) 🗸☑*
Ignore bracket
OR 159 600 – 106 400
OR [1 680 x 4/12] [(1 117 200 ÷ 1 680 / 7]
560 x 95

(3 x 60) 152 one mark one m. mark

Overtime 180 🗸 x 95 ☑ x 1,6 🗸 27 360
see above ☑*
OR (3 x 60 x 1,6) x 95
288 two marks one m. mark

Check operation; resigned worker (subtracted) and overtime (added);

must include R1 117 200 1 091 360 ☑*
7
*one part correct

4.1.3 Complete the Factory Overhead Cost Note

Incorrect factory overheads 1 132 700

Factory indirect labour 88 320 🗸🗸

[157 500 x 600/800] [126 000 x 400/600]

Factory rental 118 125 🗸🗸 – 84 000 🗸🗸 34 125 ☑

Should include R1 132 700 1 255 145 ☑* 8

*one part correct

 27

4.2 TIMEPIECE MANUFACTURERS

4.2.1 Comment on the level of production and break-even point on
31 August 2024.
Any valid point 🗸🗸 figures 🗸🗸
For FOUR marks:
• Produced and sold 3 640 units below the BEP 6 868 / made a loss on
3 228 units.
• Loss on 3 228 (1 845) units has improved compared to 2023 loss on
5 073 units.

For TWO marks (max):

• BEP decreased by 1 115 units / (from 7 983) to 6 868 / by 14%.
• Units produced increased by 730 units / (from 2 910) to 3 640 / by 25%.
4
4.2.2 Comment on the gross profit earned by the business and the price
charged for the watches. In your opinion, explain if Jabu's customers
found the 2024 price reasonable. Provide figures.
Comparison of GP ✓ figures ✓ comparison of SP ✓ figures ✓
• Gross profit has increased (from R960 300) to R1 237 600 / by R277 300
/ by 28,9%.
• Number of units sold increased (from 2 910) to 3 640 / by 730 units /
by 25% / Total sales increased (from R2 880 900) to R3 712 800 / by
R831 900 / by 28,9%.
• Selling price increased (from R990) to R1 020 / by R30 / by 3% which is
reasonable for the customers and is within the inflation rate.
For FOUR marks: Be aware of comments being combined.
• Price increased with 3%, 25% more units sold, and GP increased with
28,9%. 4

4.2.3 Identify the TWO main costs that would have a positive effect on the
selling price. In each case, provide a strategy that Jabu would have
implemented.
Main costs ✓ ✓ Strategies ✓ ✓
• Change to a cheaper supplier / local
Direct material cost suppliers / bulk purchase at lower price.
• Less wastage due to improved supervision /
better trained workers / technology used.
• Economies of scale, total fixed cost
Total fixed cost remained the same (R1 820 000) even
though more units were produced.
• Offer more reliable distribution systems to
Selling and distribution increase customer satisfaction.
cost • additional advertising / free delivery
contributed to increased sales 4
 28

4.2.4 Jabu wishes to increase his profit by R300 000 during the next financial
year while maintaining the costs. Calculate the price that he would have
to charge his customers in order to produce 400 extra units.
WORKINGS ANSWER

[300 000 / 400]

750 ✓✓ + 755 ✓
R1 505 ☑
OR [400 x 755] one part correct

R300 000 one mark + R302 000 one mark

400 one mark
4

TOTAL MARKS
35
 29

NOVEMBER 2023 NSC: COST ACCOUNTING

QUESTION 2

2.1 T2FIT MANUFACTURERS

2.1.1 Calculate direct material cost.

WORKINGS ANSWER
958 800/20 400
R47✓✓ x 18 900 ✓ R888 300 
one part correct
OR:
Opening stock + Purchases 958 800 one mark
Closing stock (1500 x 47) (70 500) two marks
4

2.1.2 Calculate factory overhead costs for the year.

Incorrect total 600 000

Indirect material (7 000) ✓
84 000 x 60%
Water and electricity (- 84 000 + R50 400) (33 600) ✓✓
Insurance
R90 000 90 000 x 5/8 11 250 
one part correct
45 000 - 33 750 OR 45 000✓ + 56 250✓
Correct total for factory overhead costs 570 650 
Operation 7
* ignore brackets, inspect final answer to award method mark

2.1.3 PRODUCTION COST STATEMENT FOR THE YEAR ENDED

28 FEBRUARY 2023
Direct material costs (see .2.1.1) 888 300 
Direct labour costs 408 600
Prime costs DMC + DLC 1 296 900 
Factory overhead costs (see 2.1.2) 570 650 
Total cost of production 1 867 550
Work-in-progress (end of year) (235 500) ✓
Cost of production of finished goods 1 632 050 
PC + FOHC - WIP 5
 30

2.1.4 Calculate the cost of the wastage of raw materials.

WORKINGS ANSWER
T-shirts
(18 900m /1,2m)
15 750 ✓ - 15 000 ✓
750 ✓ x 1,2m = 900m x R47
three marks R42 300 
one part correct
OR
Metres
(15 000 x 1,2)
18 900m - 18 000m = 900m x R47
one mark two marks 4

2.1.5 Mark is concerned about the increase in the cost of raw materials over the
financial year. Provide TWO strategies that Mark can use to address the problem
of wastage.
Any TWO valid strategies ✓ ✓
• Improve the training of factory workers
• Use cutting patterns / cutting technology / cutting machines
• Use material of a better quality
• Regular servicing/maintaining of machines
• Use cut-offs effectively for related products, e.g. caps, hoodies
• Pay incentives/bonuses for minimising wastage 2

2.2 LIGHTING KINGS (PTY) LTD

2.2.1 Do a calculation to confirm that the 2023 break-even point of 149 145
units for Orion bulbs is correct.
OR OR
2 982 900 ✓ 7 498 000
18,30 x 163 000 – 4 238 000
(46✓ – 26✓) 20 – 3 260 000 (163 000 x R20)
20 =0 3
 31

2.2.2 Identify and explain TWO cost items (with figures) that may have
contributed to the increase in the cost of production per unit. Provide a
reason in each case. Note that the current inflation rate is 7%.
COST (with figures) REASON
Costs   trend   Explanation  
Direct labour cost per unit Poor supervision
increased (from R6,70) to R11,20 Excessive overtime
Point 1
/ by R4,50 / by 67,2%

Factory overhead cost per unit Diseconomies of scale / drop in

increased (from R11,64) to production while FOHC remains
Point 2 R14,20 / by R2,56 / by 22,1% constant / cost increasing effect

Do not accept DMC, SDC and AC as major

points 6

2.2.3 Explain whether the new Starlet bulbs were a good idea or not. Provide
TWO points. Quote figures.
Any TWO valid points ✓✓ Comparative figures ✓✓
Part mark for incomplete or unclear answers

• More sales revenue (of R15 300 000) of Starlet exceeds the sales of Orion
bulbs (by R7802 000) by 104%
• Starlet bulbs are new technology / more popular / sold more (225 000 vs
163 000) although it is more expensive (R68 vs R46).
• More profit can be made on 102 896 units (225 000 – 122 104) than on
Orion’s 13 855 units (163 000 – 149 145)]
4

TOTAL MARKS

35
 32
JUNE 2024 NSC: COST ACCOUNTING

QUESTION 3

3.1
3.1.1 B

3.1.2 D

3.1.3 A
3

NARDO MANUFACTURERS

3.2 FACTORY OVERHEAD COST NOTE

Incorrect amount calculated by bookkeeper 258 200

Water and electricity + 28 800 ✓✓
Rent expense – 142 800 + 74 800 – 68 000 ✓*
Insurance – 48 000 + 52 500 + 4 500 ✓*

TOTAL one part correct, must include 258 200 223 500  7
*one part correct

3.3 PRODUCTION COST STATEMENT ON 29 FEBRUARY 2024

Direct material cost mark one line only
✓ ✓✓
[84 000 + 495 600] + 115 900 695 500 *
one mark two marks
[84 000 + 739 600] – 128 100
Direct labour cost PC – DMC 710 300 
Prime cost 1 405 800
Factory overhead cost 223 500 
Total manufacturing cost if FOHC added; see 3.2.1 1 629 300 
Work-in-progress (1 March 2023) 30 700
1 660 000
Work-in-progress (29 February 2024) (64 200) 
Balancing figure
Cost of production of finished goods
1 595 800 
20 200 x 79 10
*one part correct
 33

HIKING BAGS

3.4 Comment on the control over direct material cost of hiking bags. Quote
figures.
Explanation ✓ with figures and trend 

Increased (from R230) to R320 / by R90 / by 39%.

Not well controlled / well above the inflation rate of 6%.
Provide TWO reasons that may have contributed to the change in the
unit cost .
TWO reasons  

• Wastage/Theft of material in production.

• Scarcity of material caused increase in price.
• Change of supplier.
• Additional transport / storage costs 4

3.5 Explain whether the decision to increase the selling and distribution
cost of hiking bags was beneficial to the business or not. Quote
figures.

Comparative figures for SDC ✓ Comment on production or profitability (with figures) 

Selling & distribution increased (from R80) to R160 / by R80 / by 100%,

resulted in
• A very small increase in production (from 4 000 units) to 4 200 units / by
200 units / by 5%.
• An increase in BEP (from 2278 units) to 4328 units / by 2050 units /
by 90%
• A profit on 1 722 bags in 2023 against a loss on 128 bags in 2024. 3

3.6 Kyla plans to increase production of hiking bags by an additional

2 500 units over the next financial year. Assuming no change to the
current cost structure, calculate the additional net profit that she could
expect to earn in 2025.
WORKINGS ANSWER

(780 – 615)
2 500 ✓ x 165 ✓✓
412 500 – 21 120 ✓ (accept 21 000) 391 380 
*one part correct
OR
(4 200 – 4 328) x 165 = (21 120) i.e. loss
Accept the method of the difference between BEP and units produced.
5
 34
HIKING JACKETS

3.7 Comment on the fixed cost per unit of hiking jackets and explain the
major cause for the change in this unit cost.

Comment on diseconomies of scale 

The fixed cost per unit increased (from R130) to R196,50 / by R66,50 / by
51,1%
Diseconomies of scale. Total fixed cost is relatively constant, and are not
related to the level of production.

Explanation on major cause ✓✓

A decrease in production (from 6 000 units) to 4 000 units contributed to the

increase in the fixed cost per unit.

[Do not accept increase of R6 000 in fixed cost for this question.]
4

3.8 Identify the production cost of hiking jackets that should be of serious
concern to Kyla.

Direct labour cost ✓

DLC increased (from R110) to R175 / by R65 / by 59%. ✓

[Do not accept any other alternatives for this question.]

Provide TWO valid solutions to this problem.

TWO points  

• Control overtime
• Monitor / better supervision of work during normal time
• Have back-up plans for load-shedding (disruptions)
• Set targets to be completed at regular intervals
• Training workers
4

TOTAL MARKS 40
 35

MPUMALANGA PRELIM 2024: COST ACCOUNTING

QUESTION 2:

2.1 PRINGLE TRADERS

2.1.1 PRODUCTION COST STATEMENT FOR THE YEAR ENDED 30 JUNE 2024.

Direct material cost (533 000✓ – 102 000✓) R431 000 *

Direct labour cost (376 650✓+ 24 300✓ + 4 050✓+ 4 050) 409 050 *
8 100 two marks
Prime cost 840 050 *
Factory overhead cost (147 560✓+ 99 000✓✓ – 13 210✓) 233 350 *
Total manufacturing cost 1 073 400 *
Work-in-progress on 1 July 2023 NIL
1 073 400
Work-in-progress on 30 June 2024 (103 900) 
Cost of production of finished goods 969 500 *
(930 000✓ + 95 000✓ – 55 500✓) *one part correct 20

2.1.2 ABRIGDED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR

ENDED 30 JUNE 2024
Sales (930 000 x 175/100) ✓ – 60 000✓ 1 567 500 *
Cost of sales (930 000)

Gross profit 637 500

Other expenses (238 210) 
Administration cost (121 000✓ +13 210✓) 134 210 *
Selling and distribution costs (104 900✓ – 900✓✓) 104 000 *

Net profit for the year 399 290 * 12

*one part correct

2.2.1 Alex, the owner, was unable to achieve the targeted net profit of R150 000 for
the year ended 2024.
Calculate how many jackets should have been produced in order to achieve the
targeted profit.

WORKINGS ANSWER

R354 150✓ + R150 000✓

R135✓ - 85✓ 10 083 units
one part correct 5
 36

2.2.2 Despite the fact that there was a decrease in the fixed costs per unit, the
owner is still not satisfied with his control over the fixed costs.
Explain and provide calculation(s) to support his opinion.
Comment ✓ comparative figures ✓✓

The owner is not satisfied because of the increase in Fixed costs

Fixed costs in 2024 = R306 000 See 2.2.1
3
Fixed costs in 2023 = 4 500 x R59,60 = R268 200/ increased by R37 800

TOTAL MARKS 40
 37

NOVEMBER 2024 NSC: BUDGETS

3.1 PROJECTED STATEMENT OF

CASH BUDGET
COMPREHENSIVE INCOME
RECEIPT PAYMENT INCOME EXPENSE

E.g. 5 000 5 000

132 000 🗸 101 000 🗸
3.1.1 132 000 🗸
OR 31 000 two marks
(net effect)

3.1.2 34 000 🗸
3.1.3 264 600 🗸 19 600 🗸 6
-1 per line for superfluous entry (max -2); only if a mark is earned on that line.

3.2 JESARY SUPERSPARES

Workings in square brackets constitute one part, cannot be separated.
3.2.1 Calculate the credit purchases for November 2024.
WORKINGS ANSWER

172 000 two marks

103 200 🗸 x 100/60 🗸 x 100/125 🗸 137 600 ☑
one part correct

OR [103 200 x 100/125]

82 560 x 100/60
two marks one mark
4

CREDITORS' PAYMENT SCHEDULE FOR DECEMBER 2024

CREDIT
MONTH NOVEMBER DECEMBER
PURCHASES
Superfluous entry;
September 147 200 36 800 lose method on total

October 132 800 96 612 33 200 🗸

November 137 600 ☑ 100 104 ☑☑

See 3.2.1 must be x [75% x 97%]
three marks if credit purchase
not shown.

133 412 133 304 ☑*

*one part correct 5
 38

Calculate:
Workings in square brackets constitute one part, cannot be separated.
3.2.2 (i) Rent expense for December 2024
WORKINGS ANSWER
1,06
29 000 x 106
100 30 740 🗸🗸
OR two marks or nothing
(29 000 x 6%)
29 000 + 1 740
2

(ii) Interest on loan for December 2024

WORKINGS ANSWER

60 000 x [14/100 x 1/12]

3 500 🗸 – 700 🗸☑
OR
2 800 ☑
one part correct
[300 000 – 60 000]
240 000 x [14/100 x 1/12]
one mark one m. mark one mark 4

(iii) Deposit to be paid on 30 November 2024 for the new computers

installed
WORKINGS ANSWER
[9 800 x 36] [100/80 x 20/100]
352 800 🗸 x 20/80 🗸
OR [352 800 x 100/80] [9 800 x 36]
88 200 ☑
441 000 – 352 800 one part correct
one mark one mark

OR 441 000 x 20/100

one mark one mark 3

(iv) Insurance for December 2024

WORKINGS ANSWER
[4 500 x 28/100]
17 500 🗸 + 1 260 🗸
18 760 ☑
OR [4 500 x 128/100] [17 500 – 4 500] one part correct
5 760 + 13 000
one mark one mark 3

(v) Salaries for November 2024

WORKINGS ANSWER
[8 050 x 5]
143 750 🗸 x 9 🗸 OR 143 750 – 40 250
1 12,5 one mark one mark
103 500 ☑
OR [143 750 x 4/12,5] one part correct
46 000 x 9/4
one mark one mark
3
 39

3.2.3 Explain the change in the sales policy effected by Bluey in compiling his
budget for October 2024. Provide ONE point with figures.
Change in cash sale / change in credit sales 🗸🗸
Cash sales changed (from 40%) to 60% / (from R58 000) to R96 000 /
by R38 000 / by 65,5% / by 20 % points.
OR
Credit sales changed (from 60%) to 40% / (from R87 000) to R64 000 /
by R23 000 / by 26,4% / by 20 % points. 2

The actual credit sales were higher than the budgeted credit sales for
October 2024. Explain why Bluey should not be concerned. Provide TWO
points with figures.
Any valid explanation 🗸 🗸 Figures 🗸 🗸
• The number of customers grew (from 540) to 729 / by 189 / by 35%.
• Gross profit has improved (from R60 000) to R82 875/ by R22 875 /
by 38,1%.
• Total sales has improved (from R160 000) to R221 000 / by R61 000 /
by 38%.
Do not accept comparison to September figures. 4

Comment on the control over delivery expenses and packing materials

for October 2024. Quote figures.
Any valid comment (with figures) 🗸🗸 🗸🗸
Must be compared to sales.
Do not accept comparison to September figures.

• Effective control budgeted at 15% of sales;

Delivery expenses actual is 15% of sales. (100% utilised).
• Overspent by R9 150 / (from R24 000) to
R33 150 / by 38,1%, while total sales also
increased by 38,1% only / actual sales of
R221 000 exceeds the budgeted sales
(R160 000).
• Not well controlled; actual exceeded budgeted
by 33,3% / budgeted for 9% on sales and 12%
Packing material has been spent.
• Overspent by R12 120 (from R14 400) to
R26 520 / by 84,2%, while total sales
increased by 38,1% only. 4

TOTAL MARKS
40
 40

NOVEMBER 2023 NSC: BUDGETS

QUESTION 3

3.1 Identify TWO items that were incorrectly recorded in the Cash Budget.
Any TWO valid items ✓ ✓

• Discount received
• Bad debts
• Depreciation
2
Identify TWO items in the Cash Budget that would NOT appear in a
Projected Statement of Comprehensive Income.
Any TWO valid items ✓ ✓

• Cash from debtors

• Payment to creditors
2

3.2 DEBTORS' COLLECTION SCHEDULE

MONTHS CREDIT SALES NOVEMBER DECEMBER

SEPTEMBER 535 500 42 840
OCTOBER 640 500 320 250 51 240 ✓✓
NOVEMBER 651 000 247 380 325 500 ✓✓
DECEMBER 682 500 259 350 ✓✓✓

CASH FROM DEBTORS 610 470 636 090  8

one part correct
 41

3.3 Calculate:

(i) Discount allowed in November 2023

WORKINGS ANSWER

651 000 x 40% ✓ x 5%✓

OR
(651 000 x 40%)
260 400 one mark - 247 380 one mark 13 020 
OR one part correct
260 400 one mark x 5% one mark
OR
5
247 380 one mark x /95 one mark
3
(ii) Interest on savings account in December 2023
WORKINGS ANSWER

(84 000 x 4/100✓ x 1/12✓)

1 480 
1 200 ✓ + 280 two marks one part correct
4
(iii) Payments to creditors in December 2023
WORKINGS ANSWER

1 067 500✓ x 100

/175 ✓ 610 000 
one part correct
3
(iv) Rent expenses for November 2023
WORKINGS ANSWER

100 28 000 ✓✓
31 640 x /113
2
 42

3.4.1 Explain the changes that Adam made.

Any valid explanation ✓ part mark for incomplete / unclear / partial answer

He introduced a commission to sales staff (10% of sales) / decided on a fixed

salary allowance plus commission.
2
Explain why some of the salespersons regretted their decision to agree
to these changes. Quote figures or show calculations.
Comment  comparative figures 

• The fixed salary plus commission is less than the amount they earned
previously. Their budgeted salary was R165 000 but they earned R161 050
(a difference / or less by R3 950).
• They contributed to sales above budget (R325 500 / 29,9%) and 160 more
(33,3%) customers than budgeted, yet earned less. 3
Adam feels that the decision has benefitted the company, while the sales
manager, Milly, is concerned that it did not benefit the company. Provide
ONE point (with figures or calculations) to support EACH of these
opinions.
ADAM Sales is above budget by 325 500 (30%) /
Point  More customers (480 to 640) attracted to the business /
Figure 
One mark options:
May lead to improved sales in the future / good for advertising
MILLY Although sales increased, credit sales are more than budgeted by
Point  417 700 (64,2%) / 76% of total sales is on credit / low cash sales
Figure  create cash-flow problems

One mark options:

This compromises the liquidity of the business / may cause additional
admin duties / possible bad debts 4

3.4.2 Calculate the net effect of this purchase on the receipts and payments in
the Cash Budget.
WORKINGS ANSWER

7 500  + 18 750  + 12 500  – 31 640  R7 110

one part correct
5
Give ONE reason why Adam has decided to go ahead with this purchase.
Any ONE valid point  part mark for incomplete / unclear / partial answer

Capital growth / business acquires a fixed asset / long term stability of the business /
future may be secure (sustainability)
2

TOTAL MARKS

40
 43

JUNE 2024 NSC:BUDGETS

QUESTION 4
4.1 DEBTORS' COLLECTION SCHEDULE

MONTHS CREDIT SALES MAY JUNE

MARCH 712 800 171 072
APRIL 792 000 356 400 190 080 
MAY 871 200 206 910 392 040 
JUNE 950 400 950 400 x 25% x 95%
225 720 

CASH FROM DEBTORS 734 382 807 840 

one part correct 8

4.2 Calculate:
(i) Cash sales for June 2024
WORKINGS ANSWER

1 161 600 
950 400  x 55/45  one part correct

3
(ii) Payments to creditors in June 2024
WORKINGS ANSWER

(1 936 000 x 100/160)

1 210 000  x 70%  847 000 
one part correct

4
(iii) Hire of delivery vehicle expense for May 2024
WORKINGS ANSWER

34 810  x [100/118]  29 500 

one part correct

4.3 Calculate: % increase in salaries of office workers from 1 June 2024

WORKINGS ANSWER

2 480 
64 480 – 62 000 x 100
62 000  4% 
one part correct

4
 44

4.4 Explain how the competitor affected the sales and cash flow of the
business in April 2024. Provide TWO different points, with figures.

ONE valid point on actual sales compared to budget ✓✓

• Number of units sold is 52 units less than budgeted / budgeted to
POINT sell 200 units, only sold 148 units.
1
• Total sales are less than budgeted by R457 600 / budgeted for
total sales of R1 760 000, actual was R1 302 400.

ONE valid point on lower cash sales impacting cash flow ✓✓

• Credit sales is above by 35% / budgeted for 45% of total sales,
POINT actual is 70% of total sales.
2 • Cash sales is less than target by 25% / targeted cash sales was
55%, actual cash sales amounted to 30% of total sales.
4

4.5 Explain whether Dan would be satisfied with the number of units sold in
May 2024 as a result of his decision to adjust the selling price of the
product. Provide TWO points, with figures.
TWO valid points (with figures) ✓✓ ✓✓ Yes / No must be implied in the figures given.

• Reducing the mark-up (from 60%) to 35% resulted in more units

POINT being sold. Number of units sold is more than budgeted by 25
1 units / by 11,4%. Budgeted to sell 220 units, sold 245 units.
• Although total sales is less than the budgeted amount of
R1 936 000 by R116 875, it is better than the actual sales by R516
725 during April 2024.
• Maintaining the higher level of credit sales at 70% of total sales
POINT still contributes to the cash-flow problem created in April 2024.
2

4
 45

4.6 Dan is aware that not all salespersons would be satisfied with the
decisions he has taken regarding their earnings. Salesperson John was
satisfied whereas Sally was not. Provide ONE reason to support John’s
opinion and ONE reason to support Sally’s opinion. Quote figures.
Yes / No must be implied in the figures given.
REASON TO SUPPORT JOHN ONE valid point (with figure) ✓✓
Commission is budgeted at 15% of sales, they received 20% of actual sales;
They expected R24 200 per person but received R45 478 each;
They received R16 280 each in April 2024, compared to R45 478 in May 2024.
REASON TO SUPPORT SALLY ONE valid point (with figure) ✓✓
Reducing the number of salespersons from 12 to 8 persons may have
increased their workload;
Sally may have been shifted to a new job which she must still learn / she has
to settle for a fixed salary (which could be lower than the commission) / she
may have been retrenched.
4

4.7 Calculate the total loan amount including interest.

WORKINGS ANSWER

13 800 x 12 x 10
1 656 000 

4.8 The owner is unsure about purchasing or renting the property. Explain
ONE point in favour of purchasing the property and ONE point against
this proposal.

IN FAVOUR OF The owner would benefit from capital gains (due to

PURCHASING THE appreciation of the value of the property)
PROPERTY
AGAINST • Rent would be tax-deductible
PURCHASING THE • Not responsible for repairs and maintenance
PROPERTY • Avoids mortgage costs 4

TOTAL MARKS 40