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GRADE 11: ACCOUNTING P2

MID-YEAR EXAMINATION: 2023
MARKING GUIDELINE
150 MARKS; 2 HOURS
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MARKS: 150
MARKING PRINCIPLES:
1. Unless otherwise stated in the marking guideline, penalties for foreign items are applied only if the
candidate is not losing marks elsewhere in the question for that item (no penalty for misplaced item).
No double penalty applied.
2. Penalties for placement or poor presentation (e.g. details) are applied only if the candidate is earning
marks on the figures for that item.
3. Full marks for correct answer. If answer incorrect, mark the workings provided.
4. If a pre-adjustment figure is shown as a final figure, allocate the part-mark for the working for that
figure (not the method mark for the answer). Note: if figures are stipulated in memo 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. If no + or – sign or bracket is provided, assume that the figure is positive.
6. Where indicated, part-marks may be awarded to differentiate between differing qualities of answers
from candidates.
7. This memorandum is not for public distribution; as certain items might imply incorrect treatment. The
adjustments made are due to nuances in certain questions.
8. Where penalties are applied, the marks for that section of the question cannot be a final negative.
9. Where method marks are awarded for operation, the marker must inspect the reasonableness of the
answer and at least one part must be correct before awarding the mark.
10. Operation means 'check operation'. 'One part correct' means operation and one part correct. Note:
check operation must be +, -, x, ÷, or per memo.
11. In calculations, do not award marks for workings if numerator & denominator are swapped – this also
applies to ratios.
12. 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 .
13. Be aware of candidates who provide valid alternatives beyond the marking guideline.
14. Codes: f = foreign item; p = placement/presentation.

These marking guidelines consist of 8 pages.

Accounting – Grade 11 2 June 2023
June examination – Paper 2

QUESTION 1: RECONCILIATIONS

1.1 1.1.1 True 

1.1.2 True 
1.1.3 False 
1.1.4 False  4

1.2.1
CASH RECEIPTS JOURNAL CASH PAYMENTS JOURNAL
SUNDRY ACCOUNT AMOUNT SUNDRY ACCOUNT AMOUNT
TOTAL B/F 92 700 TOTAL B/F 86 300
Debtors control  6 250  Sales  6 600 
Interest income  570  Creditors control  3 150 
Bank charges 1 120 
Advertising  980 
Sales promotion 4 350 

99 520 102 500

14

1.2.2 Calculate the correct Bank Account balance in the General Ledger

(13 400 + 21 600 + 17 200) – (3 680 + 12 100)

52 200  15 780 

36 420  + 99 520  - 102 500  = 33 440 

6
Accounting – Grade 11 3 June 2023
June examination – Paper 2

1.2.3 BANK RECONCILIATION STATEMENT ON 31 MAY 2023

DEBIT CREDIT
Dr balance as per statement 71 850 
Outstanding deposit: 13 220 
10 400 
Outstanding EFTs: 4 280 
5 730 
Cr debit order duplicated on statement 980 
Dr amount wrongly credited 53 000 
Balance as per bank account 33 440 
 96
96 450
450 9

1.2.4 PROBLEM IDENTIFIED SOLUTION

   
Deposits are not being done regularly Check deposits
/ Poor internal control of cash. Arrange bank notification for all
transactions
Create rules and procedures for staff
to follow. Monitor.
The cashier has no supervision/ is in Division of duties.
charge of too many related functions. Authorisation for transactions
Regular and random audit of records.

1.3 CREDITORS RECONCILIATION

Creditors Ledger Account Statement
27 600 33 820
A - 1 000 
B + 230 
C - 1 040 
D - 4 190 
E + 4 720 
F - 5 500 
27 320  27 320  11

Q1 50

QUESTION 2
Accounting – Grade 11 4 June 2023
June examination – Paper 2

1.1 March the terms.

1.1.1 C 
1.1.2 E 
1.1.3 A 
1.1.4 D 
1.1.5 B 
5

2.2 BEACH BUILDERS

2.2.1 Calculate:
Direct material cost

56 400  + 532 900  + 32 800  – 11 600  – 62 500 

= 548 000  One part correct

Accept alternative presentations; including a ledger account.

6
Direct labour cost

5 x 1 740 x R46,00 = 400 200 *

670 x R69  = 46 230 *
400 200  x 10% = 40 020 *
(normal time wage)
Total = 486 450 *
*One part correct
8

2.2.2 FACTORY OVERHEAD COST

R
Factory indirect material 28 450 
Indirect labour 83 000 

Rent expense (265 600 x 5/8) 166 000 

Water and electricity (132 400 x 75%) 99 300 

Insurance 27 600  x 75% 20 700 

Factory sundry expenses 12 550 

410 000 
No part marks for workings 11
Accounting – Grade 11 5 June 2023
June examination – Paper 2
Accounting – Grade 11 6 June 2023
June examination – Paper 2

2.2.3.
GENERAL LEDGER OF BEACH BUILDERS
WORK-IN-PROGRESS STOCK ACCOUNT
2022 2023 Finished goods stock 
Mar
1 Balance b/d 34 700  Feb 28 1 435 500 
Balancing figure
2023
Feb
28 Direct material cost 548 000 * Balance c/d 43 650 
Direct labour cost 486 450 *
Factory overhead
cost
410 000 *
1 479 150 One part correct
1 479 150

2023 *Check transfer of amounts from above
Feb
28 Balance b/d 43 650  Amount and detail to score mark.

2.2.4 GROSS PROFIT CALCULATION 9

45 700  + 1 435 500  – 55 200 

2 495 500  - 1 426 000  = 1 069 500 

2.3 RAYMOND MANUFACTURERS

2.3.1 (a) 312 000 – 224 640 = 87 360 

(b) 374 400/12 480 = R30  3

2.3.2 Verify the break-even number of units for the financial year ended
30 June 2016 by doing a calculation

312 000  . = 12 000 
R92,50 – 66,50 

4
Accounting – Grade 11 7 June 2023
June examination – Paper 2

2.3.3 Comment on the break-even point and the level of production for both
years. Quote relevant figures in your comment.

Valid comment  quoting figures 

Comparing BEP to level of production – the business produced 12 480 units which is 480
units more than the BEP. Making low profit. Need to increase productivity to increase profits
Or
Compare production 2022 to 2023 – the business produced 680 units more than last year.
Or
BEP increased from 11 800 to 12 000 units. The business did not make a profit last year
(broke even) but managed to increase the production levels this year.
4

2.3.4 Explain ONE possible reason for the change in direct material cost per
unit.

Any valid reason  refer to calculation (b)

 20% increase is greater than inflation.

 Could be addition transport costs.
 Shortage of stock from suppliers pushed the price up (supply and demand)
 Wastage in the factory.
 Poorly trained workers.
 Stock theft in the factory
2

1.3.5 Provide ONE suggestion that the business can use to improve
productivity of the workforce in production.

ONE valid suggestion 

 Train workers to be more efficient.

 Set production targets to be completed during normal time hours
 Control overtime work.
 Provide incentives for workers to produce more, such as bonuses, gifts, free time.
2

Q2 60
Accounting – Grade 11 8 June 2023
June examination – Paper 2

QUESTION 3

3.1. Calculate the following:

1

WORKINGS ANSWER
Additions to land and buildings

4 750 000 – 3 640 000 1 111 000 

2
Cost of the new equipment purchased

820 000  + 180 000  – 780 000 

220 000 

4
Total depreciation on vehicles for the year.

870 000 x 15% = 130 500 

142 500 
240 000  x 15% x 4/12  = 12 000 
7
Carrying value of vehicles on 28 February 2023.

478 500  + 240 000  - 142 500  576 000 

3.1.2 GENERAL LEDGER OF PITT TRADERS

ASSET DISPOSAL ACCOUNT

Accumulated depreciation
2022 142 000 2022 91 872
1 Equipment  1 on equipment 
Dec  Dec (180 000 – 88 128) *
Creditors control  55 000
Balancing figure 
33 128
Loss on sale of asset 

180 000 180 000
*one part correct

9
Accounting – Grade 11 9 June 2023
June examination – Paper 2

3.1.3 Explain TWO reasons why a business would want to dispose of its
fixed assets.

TWO reasons  

 They want to up-grade their facilities

 Old equipment is outdated, no longer productive
 They are obsolete, replaced by new technology
 Cost too much to maintain the old assets
 New models would come with a maintenance plan.
4

3.2
IDENTIFY ONE PROBLEM.   
PROVIDE A VALID SOLUTION
QUOTE FIGURES   
  

MINI-BUS 1:

Is old – bought in 2015;

Replace this vehicle
Fully depreciated – has a book value of
Give this driver the new vehicle
R1
Use this vehicle for short runs
High fuel and repair cost – R585 000
72% of revenue it generates

MINI-BUS 2:

R30 000 of fare not handed in Monitor daily takings regularly

Fuel and repairs is 54,5% of revenue Collections must be done daily
Deduct the money from the driver’s
salary.
Disciplinary hearing

MINI-BUS 3:

New vehicle – only travelled 26 720km
Investigate why the low number of trips
Driver may be on leave / engaging in
fraudulent behaviour
Give this vehicle to a more
hardworking driver.
9

Q3 40