NATIONAL

SENIOR CERTIFICATE

GRADE 12
ANSWER BOOK

ACCOUNTING
PROJECT
TERM 2 SBA TASK 3

NAME OF A LEARNER:…………………………………………………………………….

NAME OF SCHOOL:…………………………………………………………………………
QUESTION MARKS MARKS INTERNAL EXTERNAL
OBTAINED MODERATION MODERATION

26
1
20
2
21
3
9
4
24
5
100
TOTAL

This Answer Book consists of 09 pages including the cover page

2033 ACCN GR 12 SBA TASK 3 AB CAPRICORN SOUTH DISTRICT

QUESTION 1 (26 Marks)

1.1 COMPANY CONCEPTS
1.1.1 Dis-chem issued shares to the public for the first time on 1 July
2005.
(a)What is the documents used by Dis-chem to offer new
shares to the public?
2

(b) What document is issued to shareholders to shareholders

after they have purchased shares.

1.1.2 Dis-chem is a public company listed on the JSE. Discuss any two
roles of the JSE.

1.1.3 Who else is interested in analyzing financial statement of Dis-

chem apart from shareholders and management. Provide two
parties.

1.1.4 Why does the companies Act require public companies like Dis-
chem to be audited by an independent auditor? Name TWO
reasons.

2
2033 ACCN GR 12 SBA TASK 3 AB CAPRICORN SOUTH DISTRICT

1.2 DIRECTOR’S REPORT

1.2.1 Explain what information should be included in the Directors
report. Explain FOUR items.

1.2.2 Explain why it is important for a company to include executive and

non - executive on the board of directors. Mention two points for
executive and non -executive directors.

Executive directors

Non-executive directors

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2033 ACCN GR 12 SBA TASK 3 AB CAPRICORN SOUTH DISTRICT

1.3 CORPORATE GOVERNANCE

1.3.1 Define the concept Corporate governance.

1.3.2 What is the role of Dis-chem shareholders in governance?

1.3.3 How will companies like Dis-chem benefit from publishing their
role in trying to help the community? Explain TWO points.

1.3.4 Explain what is meant by corporate social investment.

4
2033 ACCN GR 12 SBA TASK 3 AB CAPRICORN SOUTH DISTRICT

QUESTION 2 (20 Marks)

Refer to the statement of comprehensive income. Page 93
2.1 What was Dis-chem total revenue for 2022 financial year?
2

2.2 Why is finance cost of R285 918 000 disclosed separately on the
statement of comprehensive income. Indicate GAAP principle.
3

2.3 Calculate and Comment on the net profit as a percentage on turnover

for both years.
2022 2021

Comment:

2.4 Calculate the mark-up percentage achieved by the company in 2022

2.5 Why the Income Statement shows figures for two consecutive years
provide TWO points.

2.6 Give one reason why Income tax figure has changed. Quote figures to
support your answer.
2

2.7 Comment on the company’s management of expenses. Quote figures to

support your answer.

5
2033 ACCN GR 12 SBA TASK 3 AB CAPRICORN SOUTH DISTRICT

Question 3 .(21 Marks)

Refers to the Balance Sheet. Refer to page 93, 94 and 113
3.1 The directors are not sure whether the share price of R15 at JSE is a
fair price.

 Calculate the net assets value per share (NAV) on 28 Feb

2022 and show the formula.
2

 Comment on the market price of share price on the JSE 2

3.2 Calculate the current ratio and acid test ratio both years and
Comment on the liquidity position based on calculated financial
indicators. Quote figures.
Current ratio
2022 2021

Acid – test ratio

2022 2021
6

Comment

3.3 Calculate and comment on the Debt/equity ratio on 28 Feb 2022

4

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2033 ACCN GR 12 SBA TASK 3 AB CAPRICORN SOUTH DISTRICT

3.4 Calculate the return on average shareholders’ equity for 2022.

Explain whether the shareholders of Dis-chem should be satisfied
with their returns on investment. Quote figures.

3.5 Calculate the Total Capital Employed of Dis-chem for 2022.

Question 4 (9 Marks)
Refers to Cash Flow Statement Refer to page 95
4.1 Did the group have a net inflow or net outflow from financing
activities in 2022 and quote figure.
1

4.2 Identify TWO major decision with figures taken by directors in

2022 that contributed to your answer in 4.1 above.

4
4.3 Why did the company not pay Dividends in 2021?
The company did not pay dividends because they wanted to save
money for future expansion. 2

4.4 Comment on the Cash and cash equivalent from 2021

The net change represents the total inflow of cash during the
financial year 2

7
2033 ACCN GR 12 SBA TASK 3 AB CAPRICORN SOUTH DISTRICT

QUESTION 5 (24 Marks)

Refer to the Auditors Report. (page 89- 92)
5.1 Who is responsible for the preparation of financial statement of the
company?

5.2 Briefly explain the difference in the work done by the internal auditor
and independent auditor.

Internal auditor

independent auditor

5.3 What type of audit opinion did the company receive? Name and
explain.

5.4 The auditor’s report refers to the International Standards on

auditing(ISAs). Explain why auditors have to take ISAs into account in
expressing their opinion. Give two reasons.

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2033 ACCN GR 12 SBA TASK 3 AB CAPRICORN SOUTH DISTRICT

5.5 Outline Audit procedures performed by the auditors when evaluating

the accuracy and occurrence of the rebates and advertising
receivables.

5.6 Name two reason why independent auditor needs to belong to a

professional body like SAICA.

5.7 Explain why independent auditors referred to page 93 to 143 in the

audit report.