JOHANNESBURG CENTRAL DISTRICT
GRADE 11
ACCOUNTING PAPER 1
24 MAY 2024
MARKING GUIDELINES
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. Where penalties are applied, the marks for that section of the question cannot be a
final negative.
8. 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
a mark.
9. Operation means 'check operation'. 'One part correct' means operation and one part
correct. Note: check operation must be +, -, x, ÷, or per memo.
10. 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 .
11. Be aware of candidates who provide valid alternatives beyond the marking guideline.
12. Codes: f = foreign item; p = placement/presentation.
These marking guidelines consist of 7 pages.
ACCOUNTING GRADE 11
MARKING GUIDELINE JUNE 2024
QUESTION 1: STATEMENT OF COMPREHENSIVE INCOME
1.1 INCOME STATEMENT
1 185 630 *
(790 420)
Sales (1 200 000 -13 500- 870 )
Cost of sales (1 185 630 x 100/150)
Gross profit
sales – cost of sales
395 210
operation
171 000
Other income
Rent Income (163 100 – 7700)
10 000
155 400 *
Provision for bad debt adjustment
5 600
Profit on sale of asset
Gross operating income
GP + OI
Operating expenses
operation
566 210
(572 800)
Salaries and wages
(360 000 – 10 000 – 2500- 980 )
346 520 *
Advertising (87 000- 6 000)
81 000 *
60 000 *
Insurance (55 000 + 5000)
700
7 080 *
Loss due to theft (3 500 x 20%)
Trading stock deficit
(220 000+ 580 - 3 500- 210 000)
Consumable stores
65 000
12 500
Telephone
Operating profit/Loss
check operation
Interest income (350 000 x 10% X 12/12)
Profit before interest expense
Interest expense
Balancing figure
Net profit for the year
(6 590)
35 000
28 410 *
(15 000)
13 410
*One part correct
TOTAL
MARKS
45
2
ACCOUNTING GRADE 11
MARKING GUIDELINE JUNE 2024
3
QUESTION 2: CAPITAL AND CURRENT ACCOUNT NOTES
2.1.1. CAPITAL
Gwen
Wood
Balance at the beginning of the year
280 000
160 000
Contribution of capital during the year
100 000
Total
7
Withdrawal of capital during the year
Balance at the end of the year
380 000
160 000
540 000
2.1.2. CURRENT ACCOUNT
Gwen
Wood
Total
Appropriation of net profit
Salaries
198 000
132 000 *
Interest on capital
61 000#
24 000
21 600
Bonus
Primary distribution of profit
259 000
177 600
436 600
Final distribution of profit
170 040
113 360
283 400
Profit per income statement
429 040
290 960
Drawings during the year
(165 300)
(189 460)
Retained income / loss for the year
263 740
101 500
Balance at the beginning
22 000
(97 300)
Balance at the end
285 740
4 200
*Award part mark for amount less than R132 000
# Award part mark for R42 000 or any amount below R61 000
TOTAL
MARKS
35
28
294 140
ACCOUNTING GRADE 11
MARKING GUIDELINE JUNE 2024
4
QUESTION 3: STATEMENT OF FINANCIAL POSITION
3.1
3.1.1 C
3.1.2 D
3
3.1.3 A
3.2.1
Trade and other receivables
Debtors Control (170 000 -1 200 - 350 )
168 450
Provision for bad debts
(6 300)
Net trade debtors
162 150
Accrued income
4 000
166 150
6
ACCOUNTING GRADE 11
MARKING GUIDELINE JUNE 2024
5
3.2.2
STATEMENT OF FINANCIAL POSITION
Non -current assets
1 489 020
Fixed assets
1 369 020
Fixed deposit (40 000X 2/1)
120 000
Current Assets
995 650
Inventories (475 000 – 5 000)
470 000
Trade and other receivables
Cash and cash equivalents
(310 000 + 6 000 + 3 500 + 40 000)
166 150
359 500
TOTAL ASSETS
2 484 670
check E & L
EQUITY AND LIABILITY
Partners equity
950 000
Capital
Current Accounts
Non-current liability
1 353 000
Loan (1 430 000– 77 000)
1 353 000
Current Liabilities
Trade and other payables
(89 000 + 13 500 – 350 + 2 520 )
181 670
104 670
26
Current portion of loan
77 000
TOTAL EQUITY AND LIABILITY
2 484 670
TOTAL
MARKS
35
ACCOUNTING GRADE 11
MARKING GUIDELINE JUNE 2024
6
QUESTION 4:
ANALYSIS AND INTERPRETATION
4.1
4.1.1
4.1.2
4.1.3
Operating efficiency
Gearing
Return on equity
3
4.2.1
CALCULATION OF FINANCIAL INDICATORS FOR 2024
Gross profit as a percentage of Sales
543 750 two marks
✓1 450 000 – 906 250 ✓
1 450 0000 ✓
x 100
1
= 37,5% one part correct
4
Current ratio
252 000 : 120 000
=
3
2,1: 1 one part correct
Acid-test ratio
65 000 ✓ + 25 000 : 120 000= 0,75: 1
OR:
90 000
one part correct
accept 0,8:1
two marks
OR:
252 000 – 162 000: 120 000
one mark
one mark
4
Percentage return on average equity earned by the partnership
240 000
x 100
½ (1 680 000 + 1 560 000)
1
3 240 000 2 marks
1 620 000 3 marks
= 14,8 % accept 15% one part correct
5
Debt/Equity ratio
1 470 000:1 560 000
= 0,9: 1 one part correct
3
ACCOUNTING GRADE 11
MARKING GUIDELINE JUNE 2024
7
4.2.3 Does the business have good control over their expenses? Quote
relevant financial indicators to support your answer.
Comment figure(s)
Yes
% Operating expenses on sales decreased from 16,9% to 16% or by 0.9 basis
points or increased to 16.9% or by 5.6%.
2
4.2.4 Comment on the liquidity position of the business. Quote TWO
relevant financial indicators to support your answer
Any two indicators and trend
Explanation
•
•
•
Current ratio decreased from 2,2:1 to 2,1:1
Acid test ratio increased from 0,7:1 to 0,75:1
Debtors’ collection period improved from 36 to 34 days
The business might experience liquidity problems due to too much stock on
hand, they should sell excess stock.
6
4.2.5 The partners want to expand the business, but they need funds. Do
you think it’s advisable for them to take out an additional loan?
Quote relevant financial indicators to support your answer.
The debt equity ratio has decreased from 1,8:1 to 0,9:1
The financial risk of a business has dropped but it its high
Refer to 4.2.1
Give another option that can be taken by a business except getting a
loan from the financial institutions.
Allocate two marks allocate one mark for partial answer
• Partners can contribute extra capital
• They can admit another partner
5
TOTAL 35
MARKS
TOTAL MARKS: 150
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