2023 · june · Accounting · Grade 12

Practice paper 2 — Grade 12 Accounting (Easified, CAPS-aligned)

Notes

This paper lives in the app. Draw the situation when the question describes one. Show Given, Missing, Find, then the calculation. Use a division line for any division.

180 min · 131 Marks · 30 questions

Learn the paper in the app: notes, a marks breakdown, the formula you need, and the board working. You do not need to download it.

Sit it timed Formula sheet

Question breakdown

1 · 4 Marks · Companies: shares and financial statements
Accounting Grade 12. Draw the situation for Companies: shares and financial statements. 3000 no-par ordinary shares are issued at R5 each for cash. State the bank increase and ordinary share capital.
Formulas
Ordinary share capital=shares×issue price
No-par shares: the full cash received is share capital
Notes: Given: 3000 shares, issue price R5, no par value. Missing: bank and share capital.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Accounting Grade 12. Draw the situation for Companies: shares and financial statements. 3000 no-par ordinary shares are issued at R5 each for cash. State the bank increase and ordinary share capital.
In other words — as if you have never seen this before
Companies: shares and financial statements. Since the Companies Act 71 of 2008, new shares have no par value. The whole issue price is ordinary share capital, not a share premium.
2. What do we already know?
Given: 3000 shares, issue price R5, no par value. Missing: bank and share capital.
3. Which method — and why this one?
Companies: shares and financial statements. Since the Companies Act 71 of 2008, new shares have no par value. The whole issue price is ordinary share capital, not a share premium.
4. Step-by-step working
1. 01 / 07
  Given
  Given: 3000 shares, issue price R5, no par value. Missing: bank and share capital.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
2. 02 / 07
  Missing
  What Companies: shares and financial statements has not given you yet.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
3. 03 / 07
  Find
  Draw the situation for Companies: shares and financial statements. 3000 no-par ordinary shares are issued at R5 each for cash. State the bank increase and ordinary share capital.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
4. 04 / 07
  Calculate
  Bank increases by R15000. Ordinary share capital increases by R15000. There is no share premium.
  Ordinary share capital=shares×issue price
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  Bank increases by R15000. Ordinary share capital increases by R15000. There is no share premium.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
Bank increases by R15000. Ordinary share capital increases by R15000. There is no share premium.
Copy onto your answer sheet — in this order
Formula: Ordinary share capital = shares × issue price
Answer: Bank increases by R15000. Ordinary share capital increases by R15000. There is no share premium.
6. Check it like a marker
The cash received and ordinary share capital are the same amount.
7. A trap first-timers fall into
Do not use a par value or a share premium. The 2008 Companies Act abolished par value for new issues.
2 · 4 Marks · Cash flow statement
Accounting Grade 12. Draw the situation for Cash flow statement. Profit is R45000, depreciation is R4000 and inventory increased by R3000. A vehicle was bought for R12000 cash. Calculate cash from operations and classify the vehicle.
Formulas
Operating cash=profit+depreciation−increase in inventory
A vehicle purchase is investing, not operating
Notes: Given: profit R45000, depreciation R4000, inventory increase R3000, vehicle R12000. Missing: operating cash and the vehicle's section.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Accounting Grade 12. Draw the situation for Cash flow statement. Profit is R45000, depreciation is R4000 and inventory increased by R3000. A vehicle was bought for R12000 cash. Calculate cash from operations and classify the vehicle.
In other words — as if you have never seen this before
Cash flow statement. Cash from operations starts at profit, adds back depreciation, and subtracts an increase in inventory. Buying a vehicle is an investing outflow, not an operating expense.
2. What do we already know?
Given: profit R45000, depreciation R4000, inventory increase R3000, vehicle R12000. Missing: operating cash and the vehicle's section.
3. Which method — and why this one?
Cash flow statement. Cash from operations starts at profit, adds back depreciation, and subtracts an increase in inventory. Buying a vehicle is an investing outflow, not an operating expense.
4. Step-by-step working
1. 01 / 07
  Given
  Given: profit R45000, depreciation R4000, inventory increase R3000, vehicle R12000. Missing: operating cash and the vehicle's section.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
2. 02 / 07
  Missing
  What Cash flow statement has not given you yet.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
3. 03 / 07
  Find
  Draw the situation for Cash flow statement. Profit is R45000, depreciation is R4000 and inventory increased by R3000. A vehicle was bought for R12000 cash. Calculate cash from operations and classify the vehicle.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
4. 04 / 07
  Calculate
  Cash from operations = R45000 + R4000 − R3000 = R46000. The vehicle of R12000 is an investing outflow.
  Operating cash=profit+depreciation−increase in inventory
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  Cash from operations = R45000 + R4000 − R3000 = R46000. The vehicle of R12000 is an investing outflow.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
Cash from operations = R45000 + R4000 − R3000 = R46000. The vehicle of R12000 is an investing outflow.
Copy onto your answer sheet — in this order
Formula: Operating cash = profit + depreciation − increase in inventory
Answer: Cash from operations = R45000 + R4000 − R3000 = R46000. The vehicle of R12000 is an investing outflow.
6. Check it like a marker
Operating cash is not the same as profit, and the vehicle is not in that line.
7. A trap first-timers fall into
Do not calculate 15% VAT on the profit. This topic is the cash flow statement.
3 · 4 Marks · Reconciliations
Accounting Grade 12. Draw the situation for Reconciliations. Debtors control is R12000 and the debtors list totals R11400 because an invoice of R600 was omitted. State the corrected list total.
Formulas
Debtors control=total of the debtors list
Any difference has to be found and corrected
Notes: Given: control R12000, list R11400, omitted invoice R600. Missing: the corrected list.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Accounting Grade 12. Draw the situation for Reconciliations. Debtors control is R12000 and the debtors list totals R11400 because an invoice of R600 was omitted. State the corrected list total.
Before any working — hunt first
Given
Numbers and units already in the sentence: 12 · R12000 and · R11400 because · R600 was. Copy each one into a column. A name without a number is not given.
Missing
After you copy the given, the letter that still has no number is missing. The paper is pointing at: State the corrected list total. Circle that word — that is the missing variable.
Find
We are required to find: State the corrected list total. Write that as a symbol on the left, with a question mark, before you touch a formula.
Calculate
Write Debtors control = total of the debtors list with empty letters. Cross out every letter that already has a number. Calculate the letter that is still standing — that gives State the corrected list total.
In other words — as if you have never seen this before
Reconciliations. The debtors control account must equal the debtors list. A difference is a missing or misposted entry, not a new sale.
2. What do we already know?
Given: control R12000, list R11400, omitted invoice R600. Missing: the corrected list.
3. Which method — and why this one?
Reconciliations. The debtors control account must equal the debtors list. A difference is a missing or misposted entry, not a new sale.
4. Step-by-step working
1. 01 / 07
  Given
  Given: control R12000, list R11400, omitted invoice R600. Missing: the corrected list.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
2. 02 / 07
  Missing
  What Reconciliations has not given you yet.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
3. 03 / 07
  Find
  Draw the situation for Reconciliations. Debtors control is R12000 and the debtors list totals R11400 because an invoice of R600 was omitted. State the corrected list total.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
4. 04 / 07
  Calculate
  The list is short by R600. After the omitted invoice is entered, the list is R11400 + R600 = R12000, which matches the control account.
  Debtors control=total of the debtors list
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  The list is short by R600. After the omitted invoice is entered, the list is R11400 + R600 = R12000, which matches the control account.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
The list is short by R600. After the omitted invoice is entered, the list is R11400 + R600 = R12000, which matches the control account.
Copy onto your answer sheet — in this order
Formula: Debtors control = total of the debtors list
Answer: The list is short by R600. After the omitted invoice is entered, the list is R11400 + R600 = R12000, which matches the control account.
6. Check it like a marker
After the correction the two totals are equal.
7. A trap first-timers fall into
Do not raise a new sale for the difference. The invoice already exists. It was left off the list.
4 · 4 Marks · Companies: shares and financial statements
Accounting Grade 12. Draw the situation for VAT. Exclusive sales are R15000 and exclusive purchases are R4000. VAT is 15%. Calculate the VAT payable.
Formulas
Ordinary share capital=shares×issue price
No-par shares: the full cash received is share capital
Notes: Given: sales R15000, purchases R4000, rate 15%. Missing: output VAT, input VAT and the amount payable.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Accounting Grade 12. Draw the situation for VAT. Exclusive sales are R15000 and exclusive purchases are R4000. VAT is 15%. Calculate the VAT payable.
Before any working — hunt first
Given
Numbers and units already in the sentence: 12 · R15000 and · R4000 · 15%. Copy each one into a column. A name without a number is not given.
Missing
After you copy the given, the letter that still has no number is missing. The paper is pointing at: the VAT payable. Circle that word — that is the missing variable.
Find
We are required to find: the VAT payable. Write that as a symbol on the left, with a question mark, before you touch a formula.
Calculate
Write VAT payable = output VAT − input VAT with empty letters. Cross out every letter that already has a number. Calculate the letter that is still standing — that gives the VAT payable.
In other words — as if you have never seen this before
VAT. VAT payable is output VAT on sales minus input VAT on purchases. It is not 15% of the profit.
2. What do we already know?
Given: sales R15000, purchases R4000, rate 15%. Missing: output VAT, input VAT and the amount payable.
3. Which method — and why this one?
VAT. VAT payable is output VAT on sales minus input VAT on purchases. It is not 15% of the profit.
4. Step-by-step working
1. 01 / 07
  Given
  Given: sales R15000, purchases R4000, rate 15%. Missing: output VAT, input VAT and the amount payable.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
2. 02 / 07
  Missing
  What VAT has not given you yet.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
3. 03 / 07
  Find
  Draw the situation for VAT. Exclusive sales are R15000 and exclusive purchases are R4000. VAT is 15%. Calculate the VAT payable.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
4. 04 / 07
  Calculate
  Output VAT R2250 − input VAT R600 = VAT payable R1650.
  VAT payable=output VAT−input VAT
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  Output VAT R2250 − input VAT R600 = VAT payable R1650.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
Output VAT R2250 − input VAT R600 = VAT payable R1650.
Copy onto your answer sheet — in this order
Formula: VAT payable = output VAT − input VAT
Answer: Output VAT R2250 − input VAT R600 = VAT payable R1650.
6. Check it like a marker
VAT payable is smaller than output VAT.
7. A trap first-timers fall into
Do not charge 15% on the difference between sales and purchases and call that the only step. Show output and input separately.
5 · 4 Marks · Inventory systems
Accounting Grade 12. Draw the situation for Inventory systems. Opening stock is 10 units at R10. A purchase is 10 units at R12. Sales are 14 units. Use FIFO to find cost of sales and closing inventory.
Formulas
FIFO: oldest cost is issued first
Closing inventory is valued at the latest purchase price
Notes: Given: 10 at R10, 10 at R12, sold 14. Missing: cost of sales and closing inventory.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Accounting Grade 12. Draw the situation for Inventory systems. Opening stock is 10 units at R10. A purchase is 10 units at R12. Sales are 14 units. Use FIFO to find cost of sales and closing inventory.
Before any working — hunt first
Given
Numbers and units already in the sentence: 12 · 10 units · R10 · 10 units · R12 · 14 units. Copy each one into a column. A name without a number is not given.
Missing
After you copy the given, the letter that still has no number is missing. The paper is pointing at: cost of sales and closing inventory. Circle that word — that is the missing variable.
Find
We are required to find: cost of sales and closing inventory. Write that as a symbol on the left, with a question mark, before you touch a formula.
Calculate
Write FIFO: oldest cost is issued first with empty letters. Cross out every letter that already has a number. Calculate the letter that is still standing — that gives cost of sales and closing inventory.
In other words — as if you have never seen this before
Inventory systems. Under FIFO the oldest units are sold first. Closing inventory is what remains, at the newest cost.
2. What do we already know?
Given: 10 at R10, 10 at R12, sold 14. Missing: cost of sales and closing inventory.
3. Which method — and why this one?
Inventory systems. Under FIFO the oldest units are sold first. Closing inventory is what remains, at the newest cost.
4. Step-by-step working
1. 01 / 07
  Given
  Given: 10 at R10, 10 at R12, sold 14. Missing: cost of sales and closing inventory.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
2. 02 / 07
  Missing
  What Inventory systems has not given you yet.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
3. 03 / 07
  Find
  Draw the situation for Inventory systems. Opening stock is 10 units at R10. A purchase is 10 units at R12. Sales are 14 units. Use FIFO to find cost of sales and closing inventory.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
4. 04 / 07
  Calculate
  Cost of sales = 10 × R10 + 4 × R12 = R148. Closing inventory = 6 × R12 = R72.
  FIFO: oldest cost is issued first
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  Cost of sales = 10 × R10 + 4 × R12 = R148. Closing inventory = 6 × R12 = R72.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
Cost of sales = 10 × R10 + 4 × R12 = R148. Closing inventory = 6 × R12 = R72.
Copy onto your answer sheet — in this order
Formula: FIFO: oldest cost is issued first
Answer: Cost of sales = 10 × R10 + 4 × R12 = R148. Closing inventory = 6 × R12 = R72.
6. Check it like a marker
Closing units are the newest ones, not a mix of both prices.
7. A trap first-timers fall into
Do not average the two prices unless the question asks for weighted average.
6 · 8 Marks · Budgets
Accounting Grade 12. Draw the situation for Budgets. Opening cash is R7000, expected receipts are R26000 and expected payments are R18000. Calculate the closing cash.
Formulas
Closing cash=opening cash+receipts−payments
A cash budget for the period
Notes: Given: opening R7000, receipts R26000, payments R18000. Missing: closing cash.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Accounting Grade 12. Draw the situation for Budgets. Opening cash is R7000, expected receipts are R26000 and expected payments are R18000. Calculate the closing cash.
Before any working — hunt first
Given
Numbers and units already in the sentence: 12 · R7000 · R26000 and · R18000. Copy each one into a column. A name without a number is not given.
Missing
After you copy the given, the letter that still has no number is missing. The paper is pointing at: the closing cash. Circle that word — that is the missing variable.
Find
We are required to find: the closing cash. Write that as a symbol on the left, with a question mark, before you touch a formula.
Calculate
Write Closing cash = opening cash + receipts − payments with empty letters. Cross out every letter that already has a number. Calculate the letter that is still standing — that gives the closing cash.
In other words — as if you have never seen this before
Budgets. A cash budget forecasts closing cash from opening cash, expected receipts and expected payments. It is not a VAT invoice.
2. What do we already know?
Given: opening R7000, receipts R26000, payments R18000. Missing: closing cash.
3. Which method — and why this one?
Budgets. A cash budget forecasts closing cash from opening cash, expected receipts and expected payments. It is not a VAT invoice.
4. Step-by-step working
1. 01 / 07
  Given
  Given: opening R7000, receipts R26000, payments R18000. Missing: closing cash.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
2. 02 / 07
  Missing
  What Budgets has not given you yet.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
3. 03 / 07
  Find
  Draw the situation for Budgets. Opening cash is R7000, expected receipts are R26000 and expected payments are R18000. Calculate the closing cash.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
4. 04 / 07
  Calculate
  Closing cash=R7000+R26000−R18000=R15000.
  Closing cash=opening cash+receipts−payments
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  Closing cash=R7000+R26000−R18000=R15000.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
Closing cash=R7000+R26000−R18000=R15000.
Copy onto your answer sheet — in this order
Formula: Closing cash = opening cash + receipts − payments
Answer: Closing cash = R7000 + R26000 − R18000 = R15000.
6. Check it like a marker
Closing cash is larger than the opening cash when receipts exceed payments.
7. A trap first-timers fall into
Do not calculate 15% VAT on the receipts. This question is a cash budget.
7 · 4 Marks · Fixed assets
Accounting Grade 12. Draw the situation for Fixed assets. A vehicle cost R24000 and accumulated depreciation is R12000. It is sold for R11000. Calculate the profit or loss on disposal.
Formulas
Profit or loss=proceeds−carrying amount
Carrying amount = cost − accumulated depreciation
Notes: Given: cost R24000, accumulated depreciation R12000, proceeds R11000. Missing: carrying amount and profit or loss.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Accounting Grade 12. Draw the situation for Fixed assets. A vehicle cost R24000 and accumulated depreciation is R12000. It is sold for R11000. Calculate the profit or loss on disposal.
Before any working — hunt first
Given
Numbers and units already in the sentence: 12 · R24000 and · R12000 · R11000. Copy each one into a column. A name without a number is not given.
Missing
After you copy the given, the letter that still has no number is missing. The paper is pointing at: the profit or loss on disposal. Circle that word — that is the missing variable.
Find
We are required to find: the profit or loss on disposal. Write that as a symbol on the left, with a question mark, before you touch a formula.
Calculate
Write Profit or loss = proceeds − carrying amount with empty letters. Cross out every letter that already has a number. Calculate the letter that is still standing — that gives the profit or loss on disposal.
In other words — as if you have never seen this before
Fixed assets. On disposal, compare the cash received with the carrying amount. Carrying amount is cost minus accumulated depreciation.
2. What do we already know?
Given: cost R24000, accumulated depreciation R12000, proceeds R11000. Missing: carrying amount and profit or loss.
3. Which method — and why this one?
Fixed assets. On disposal, compare the cash received with the carrying amount. Carrying amount is cost minus accumulated depreciation.
4. Step-by-step working
1. 01 / 07
  Given
  Given: cost R24000, accumulated depreciation R12000, proceeds R11000. Missing: carrying amount and profit or loss.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
2. 02 / 07
  Missing
  What Fixed assets has not given you yet.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
3. 03 / 07
  Find
  Draw the situation for Fixed assets. A vehicle cost R24000 and accumulated depreciation is R12000. It is sold for R11000. Calculate the profit or loss on disposal.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
4. 04 / 07
  Calculate
  Carrying amount = R24000 − R12000 = R12000. Proceeds R11000 give a loss of R1000.
  Profit or loss=proceeds−carrying amount
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  Carrying amount = R24000 − R12000 = R12000. Proceeds R11000 give a loss of R1000.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
Carrying amount = R24000 − R12000 = R12000. Proceeds R11000 give a loss of R1000.
Copy onto your answer sheet — in this order
Formula: Profit or loss = proceeds − carrying amount
Answer: Carrying amount = R24000 − R12000 = R12000. Proceeds R11000 give a loss of R1000.
6. Check it like a marker
If the proceeds are below the carrying amount, the difference is a loss.
7. A trap first-timers fall into
Do not compare the selling price with the original cost and ignore depreciation.
8 · 4 Marks · Ethics and internal control
Accounting Grade 12. Use this case. The bookkeeper's bonus. A bookkeeper in Polokwane gets a bonus if profit looks higher than last year. She delays recording a R3 000 repairs bill until January. The December profit is overstated and the bonus is paid on a false figure. Matching and honesty both say the repair belongs in December. Moving the invoice is not a timing skill. It is a false statement. In sentences, say what Ethics and internal control is doing here, from the situation to the result.
Notes: A Seshego school tuck shop, with one cash box and three different people checking it, is the control in daily use.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Accounting Grade 12. Use this case. The bookkeeper's bonus. A bookkeeper in Polokwane gets a bonus if profit looks higher than last year. She delays recording a R3 000 repairs bill until January. The December profit is overstated and the bonus is paid on a false figure. Matching and honesty both say the repair belongs in December. Moving the invoice is not a timing skill. It is a false statement. In sentences, say what Ethics and internal control is doing here, from the situation to the result.
In other words — as if you have never seen this before
Ethics and internal control. Division of duties means the person who handles cash is not the same person who records it or who agrees the bank statement. Documents are numbered and checked. A senior reviews journals. Ethics adds the duty to report a shortage, refuse a kickback, and not hide a loss to protect a bonus. A control that exists only on paper, while one person does every step, does not protect the business.
2. What do we already know?
A Seshego school tuck shop, with one cash box and three different people checking it, is the control in daily use.
3. Which method — and why this one?
Ethics and internal control. Division of duties means the person who handles cash is not the same person who records it or who agrees the bank statement. Documents are numbered and checked. A senior reviews journals. Ethics adds the duty to report a shortage, refuse a kickback, and not hide a loss to protect a bonus. A control that exists only on paper, while one person does every step, does not protect the business.
4. Step-by-step working
1. 01 / 07
  What it is
  Internal control is the set of checks that protects cash and stock, and ethics is doing the honest thing when a check is missing or when a personal gain clashes with the books.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
2. 02 / 07
  How it works
  Division of duties means the person who handles cash is not the same person who records it or who agrees the bank statement. Documents are numbered and checked. A senior reviews journals. Ethics adds the duty to report a shortage, refuse a kickback, and not hide a loss to protect a bonus. A control that exists only on paper, while one person does every step, does not protect the business.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
3. 03 / 07
  Worked theory
  Worked theory. At a school tuck shop in Seshego, one learner used to take the cash, write the sales and prepare the deposit. In March the float was R400 short and the deposit slip matched the written sales, so the shortage was invisible. The teacher splits the work: one learner takes cash, another writes the sales sheet, and the teacher compares both to the bank deposit. The next shortage shows up the same day because the three records no longer come from one hand. The missing R400 was an internal-control failure, not a new kind of expense.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
4. 04 / 07
  Say it back
  Separate the hands that touch the cash, the record and the bank check, and report a shortage when you see it.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  Separate the hands that touch the cash, the record and the bank check, and report a shortage when you see it.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
Separate the hands that touch the cash, the record and the bank check, and report a shortage when you see it.
Copy onto your answer sheet — in this order
Answer: Separate the hands that touch the cash, the record and the bank check, and report a shortage when you see it.
6. Check it like a marker
The answer names the situation, what changed, and the result. It does not stop at a heading.
7. A trap first-timers fall into
A common mix-up is to treat ethics as a slogan on the wall, or as an accounting equation. A control is a split in the work that would catch a missing amount.
9 · 4 Marks · Manufacturing: production cost statement
Accounting Grade 12. Draw the situation for Manufacturing: production cost statement. Raw materials R22000 opening, R96000 purchases, R4000 carriage, R22000 closing; direct labour R64000; overheads R43000; WIP R12000 opening and R15000 closing; 2000 units finished.
Formulas
Cost of production=direct materials+direct labour+factory overheads+opening WIP−closing WIP
Prime cost = direct material cost + direct labour cost
Notes: Given: materials, labour R64000, overheads R43000, WIP R12000R15000, 2000 units. Missing: cost of production and unit cost.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Accounting Grade 12. Draw the situation for Manufacturing: production cost statement. Raw materials R22000 opening, R96000 purchases, R4000 carriage, R22000 closing; direct labour R64000; overheads R43000; WIP R12000 opening and R15000 closing; 2000 units finished.
In other words — as if you have never seen this before
Manufacturing: production cost statement. A factory's cost of production adds direct materials, direct labour and factory overheads, then adjusts for work-in-progress that is not yet finished.
2. What do we already know?
Given: materials, labour R64000, overheads R43000, WIP R12000R15000, 2000 units. Missing: cost of production and unit cost.
3. Which method — and why this one?
Manufacturing: production cost statement. A factory's cost of production adds direct materials, direct labour and factory overheads, then adjusts for work-in-progress that is not yet finished.
4. Step-by-step working
1. 01 / 07
  Given
  Given: materials, labour R64000, overheads R43000, WIP R12000R15000, 2000 units. Missing: cost of production and unit cost.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
2. 02 / 07
  Missing
  What Manufacturing: production cost statement has not given you yet.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
3. 03 / 07
  Find
  Draw the situation for Manufacturing: production cost statement. Raw materials R22000 opening, R96000 purchases, R4000 carriage, R22000 closing; direct labour R64000; overheads R43000; WIP R12000 opening and R15000 closing; 2000 units finished.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
4. 04 / 07
  Calculate
  Direct material cost R100000; prime cost R164000; cost of production of finished goods R204000; unit cost R102.00.
  Cost of production=direct materials+direct labour+factory overheads+opening WIP−closing WIP
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  Direct material cost R100000; prime cost R164000; cost of production of finished goods R204000; unit cost R102.00.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
Direct material cost R100000; prime cost R164000; cost of production of finished goods R204000; unit cost R102.00.
Copy onto your answer sheet — in this order
Formula: Cost of production = direct materials + direct labour + factory overheads + opening WIP − closing WIP
Answer: Direct material cost R100000; prime cost R164000; cost of production of finished goods R204000; unit cost R102.00.
6. Check it like a marker
Carriage on raw materials belongs in direct material cost; office and selling costs never go into the production cost statement.
7. A trap first-timers fall into
Do not add closing work-in-progress; it is subtracted because those goods are not finished yet.
10 · 4 Marks · Cash flow statement
Accounting Grade 12. Draw the situation for Cash flow statement. Profit is R30000, depreciation is R4000 and inventory increased by R3000. A vehicle was bought for R12000 cash. Calculate cash from operations and classify the vehicle.
Formulas
Operating cash=profit+depreciation−increase in inventory
A vehicle purchase is investing, not operating
Notes: Given: profit R30000, depreciation R4000, inventory increase R3000, vehicle R12000. Missing: operating cash and the vehicle's section.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Accounting Grade 12. Draw the situation for Cash flow statement. Profit is R30000, depreciation is R4000 and inventory increased by R3000. A vehicle was bought for R12000 cash. Calculate cash from operations and classify the vehicle.
In other words — as if you have never seen this before
Cash flow statement. Cash from operations starts at profit, adds back depreciation, and subtracts an increase in inventory. Buying a vehicle is an investing outflow, not an operating expense.
2. What do we already know?
Given: profit R30000, depreciation R4000, inventory increase R3000, vehicle R12000. Missing: operating cash and the vehicle's section.
3. Which method — and why this one?
Cash flow statement. Cash from operations starts at profit, adds back depreciation, and subtracts an increase in inventory. Buying a vehicle is an investing outflow, not an operating expense.
4. Step-by-step working
1. 01 / 07
  Given
  Given: profit R30000, depreciation R4000, inventory increase R3000, vehicle R12000. Missing: operating cash and the vehicle's section.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
2. 02 / 07
  Missing
  What Cash flow statement has not given you yet.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
3. 03 / 07
  Find
  Draw the situation for Cash flow statement. Profit is R30000, depreciation is R4000 and inventory increased by R3000. A vehicle was bought for R12000 cash. Calculate cash from operations and classify the vehicle.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
4. 04 / 07
  Calculate
  Cash from operations = R30000 + R4000 − R3000 = R31000. The vehicle of R12000 is an investing outflow.
  Operating cash=profit+depreciation−increase in inventory
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  Cash from operations = R30000 + R4000 − R3000 = R31000. The vehicle of R12000 is an investing outflow.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
Cash from operations = R30000 + R4000 − R3000 = R31000. The vehicle of R12000 is an investing outflow.
Copy onto your answer sheet — in this order
Formula: Operating cash = profit + depreciation − increase in inventory
Answer: Cash from operations = R30000 + R4000 − R3000 = R31000. The vehicle of R12000 is an investing outflow.
6. Check it like a marker
Operating cash is not the same as profit, and the vehicle is not in that line.
7. A trap first-timers fall into
Do not calculate 15% VAT on the profit. This topic is the cash flow statement.
11 · 8 Marks · Reconciliations
Accounting Grade 12. Draw the situation for Reconciliations. Debtors control is R13000 and the debtors list totals R12400 because an invoice of R600 was omitted. State the corrected list total.
Formulas
Debtors control=total of the debtors list
Any difference has to be found and corrected
Notes: Given: control R13000, list R12400, omitted invoice R600. Missing: the corrected list.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Accounting Grade 12. Draw the situation for Reconciliations. Debtors control is R13000 and the debtors list totals R12400 because an invoice of R600 was omitted. State the corrected list total.
Before any working — hunt first
Given
Numbers and units already in the sentence: 12 · R13000 and · R12400 because · R600 was. Copy each one into a column. A name without a number is not given.
Missing
After you copy the given, the letter that still has no number is missing. The paper is pointing at: State the corrected list total. Circle that word — that is the missing variable.
Find
We are required to find: State the corrected list total. Write that as a symbol on the left, with a question mark, before you touch a formula.
Calculate
Write Debtors control = total of the debtors list with empty letters. Cross out every letter that already has a number. Calculate the letter that is still standing — that gives State the corrected list total.
In other words — as if you have never seen this before
Reconciliations. The debtors control account must equal the debtors list. A difference is a missing or misposted entry, not a new sale.
2. What do we already know?
Given: control R13000, list R12400, omitted invoice R600. Missing: the corrected list.
3. Which method — and why this one?
Reconciliations. The debtors control account must equal the debtors list. A difference is a missing or misposted entry, not a new sale.
4. Step-by-step working
1. 01 / 07
  Given
  Given: control R13000, list R12400, omitted invoice R600. Missing: the corrected list.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
2. 02 / 07
  Missing
  What Reconciliations has not given you yet.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
3. 03 / 07
  Find
  Draw the situation for Reconciliations. Debtors control is R13000 and the debtors list totals R12400 because an invoice of R600 was omitted. State the corrected list total.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
4. 04 / 07
  Calculate
  The list is short by R600. After the omitted invoice is entered, the list is R12400 + R600 = R13000, which matches the control account.
  Debtors control=total of the debtors list
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  The list is short by R600. After the omitted invoice is entered, the list is R12400 + R600 = R13000, which matches the control account.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
The list is short by R600. After the omitted invoice is entered, the list is R12400 + R600 = R13000, which matches the control account.
Copy onto your answer sheet — in this order
Formula: Debtors control = total of the debtors list
Answer: The list is short by R600. After the omitted invoice is entered, the list is R12400 + R600 = R13000, which matches the control account.
6. Check it like a marker
After the correction the two totals are equal.
7. A trap first-timers fall into
Do not raise a new sale for the difference. The invoice already exists. It was left off the list.
12 · 4 Marks · Companies: shares and financial statements
Accounting Grade 12. Draw the situation for VAT. Exclusive sales are R20000 and exclusive purchases are R4000. VAT is 15%. Calculate the VAT payable.
Formulas
Ordinary share capital=shares×issue price
No-par shares: the full cash received is share capital
Notes: Given: sales R20000, purchases R4000, rate 15%. Missing: output VAT, input VAT and the amount payable.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Accounting Grade 12. Draw the situation for VAT. Exclusive sales are R20000 and exclusive purchases are R4000. VAT is 15%. Calculate the VAT payable.
Before any working — hunt first
Given
Numbers and units already in the sentence: 12 · R20000 and · R4000 · 15%. Copy each one into a column. A name without a number is not given.
Missing
After you copy the given, the letter that still has no number is missing. The paper is pointing at: the VAT payable. Circle that word — that is the missing variable.
Find
We are required to find: the VAT payable. Write that as a symbol on the left, with a question mark, before you touch a formula.
Calculate
Write VAT payable = output VAT − input VAT with empty letters. Cross out every letter that already has a number. Calculate the letter that is still standing — that gives the VAT payable.
In other words — as if you have never seen this before
VAT. VAT payable is output VAT on sales minus input VAT on purchases. It is not 15% of the profit.
2. What do we already know?
Given: sales R20000, purchases R4000, rate 15%. Missing: output VAT, input VAT and the amount payable.
3. Which method — and why this one?
VAT. VAT payable is output VAT on sales minus input VAT on purchases. It is not 15% of the profit.
4. Step-by-step working
1. 01 / 07
  Given
  Given: sales R20000, purchases R4000, rate 15%. Missing: output VAT, input VAT and the amount payable.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
2. 02 / 07
  Missing
  What VAT has not given you yet.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
3. 03 / 07
  Find
  Draw the situation for VAT. Exclusive sales are R20000 and exclusive purchases are R4000. VAT is 15%. Calculate the VAT payable.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
4. 04 / 07
  Calculate
  Output VAT R3000 − input VAT R600 = VAT payable R2400.
  VAT payable=output VAT−input VAT
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  Output VAT R3000 − input VAT R600 = VAT payable R2400.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
Output VAT R3000 − input VAT R600 = VAT payable R2400.
Copy onto your answer sheet — in this order
Formula: VAT payable = output VAT − input VAT
Answer: Output VAT R3000 − input VAT R600 = VAT payable R2400.
6. Check it like a marker
VAT payable is smaller than output VAT.
7. A trap first-timers fall into
Do not charge 15% on the difference between sales and purchases and call that the only step. Show output and input separately.
13 · 4 Marks · Inventory systems
Accounting Grade 12. Draw the situation for Inventory systems. Opening stock is 10 units at R10. A purchase is 10 units at R14. Sales are 14 units. Use FIFO to find cost of sales and closing inventory.
Formulas
FIFO: oldest cost is issued first
Closing inventory is valued at the latest purchase price
Notes: Given: 10 at R10, 10 at R14, sold 14. Missing: cost of sales and closing inventory.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Accounting Grade 12. Draw the situation for Inventory systems. Opening stock is 10 units at R10. A purchase is 10 units at R14. Sales are 14 units. Use FIFO to find cost of sales and closing inventory.
Before any working — hunt first
Given
Numbers and units already in the sentence: 12 · 10 units · R10 · 10 units · R14 · 14 units. Copy each one into a column. A name without a number is not given.
Missing
After you copy the given, the letter that still has no number is missing. The paper is pointing at: cost of sales and closing inventory. Circle that word — that is the missing variable.
Find
We are required to find: cost of sales and closing inventory. Write that as a symbol on the left, with a question mark, before you touch a formula.
Calculate
Write FIFO: oldest cost is issued first with empty letters. Cross out every letter that already has a number. Calculate the letter that is still standing — that gives cost of sales and closing inventory.
In other words — as if you have never seen this before
Inventory systems. Under FIFO the oldest units are sold first. Closing inventory is what remains, at the newest cost.
2. What do we already know?
Given: 10 at R10, 10 at R14, sold 14. Missing: cost of sales and closing inventory.
3. Which method — and why this one?
Inventory systems. Under FIFO the oldest units are sold first. Closing inventory is what remains, at the newest cost.
4. Step-by-step working
1. 01 / 07
  Given
  Given: 10 at R10, 10 at R14, sold 14. Missing: cost of sales and closing inventory.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
2. 02 / 07
  Missing
  What Inventory systems has not given you yet.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
3. 03 / 07
  Find
  Draw the situation for Inventory systems. Opening stock is 10 units at R10. A purchase is 10 units at R14. Sales are 14 units. Use FIFO to find cost of sales and closing inventory.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
4. 04 / 07
  Calculate
  Cost of sales = 10 × R10 + 4 × R14 = R156. Closing inventory = 6 × R14 = R84.
  FIFO: oldest cost is issued first
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  Cost of sales = 10 × R10 + 4 × R14 = R156. Closing inventory = 6 × R14 = R84.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
Cost of sales = 10 × R10 + 4 × R14 = R156. Closing inventory = 6 × R14 = R84.
Copy onto your answer sheet — in this order
Formula: FIFO: oldest cost is issued first
Answer: Cost of sales = 10 × R10 + 4 × R14 = R156. Closing inventory = 6 × R14 = R84.
6. Check it like a marker
Closing units are the newest ones, not a mix of both prices.
7. A trap first-timers fall into
Do not average the two prices unless the question asks for weighted average.
14 · 4 Marks · Budgets
Accounting Grade 12. Draw the situation for Budgets. Opening cash is R4000, expected receipts are R26000 and expected payments are R18000. Calculate the closing cash.
Formulas
Closing cash=opening cash+receipts−payments
A cash budget for the period
Notes: Given: opening R4000, receipts R26000, payments R18000. Missing: closing cash.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Accounting Grade 12. Draw the situation for Budgets. Opening cash is R4000, expected receipts are R26000 and expected payments are R18000. Calculate the closing cash.
Before any working — hunt first
Given
Numbers and units already in the sentence: 12 · R4000 · R26000 and · R18000. Copy each one into a column. A name without a number is not given.
Missing
After you copy the given, the letter that still has no number is missing. The paper is pointing at: the closing cash. Circle that word — that is the missing variable.
Find
We are required to find: the closing cash. Write that as a symbol on the left, with a question mark, before you touch a formula.
Calculate
Write Closing cash = opening cash + receipts − payments with empty letters. Cross out every letter that already has a number. Calculate the letter that is still standing — that gives the closing cash.
In other words — as if you have never seen this before
Budgets. A cash budget forecasts closing cash from opening cash, expected receipts and expected payments. It is not a VAT invoice.
2. What do we already know?
Given: opening R4000, receipts R26000, payments R18000. Missing: closing cash.
3. Which method — and why this one?
Budgets. A cash budget forecasts closing cash from opening cash, expected receipts and expected payments. It is not a VAT invoice.
4. Step-by-step working
1. 01 / 07
  Given
  Given: opening R4000, receipts R26000, payments R18000. Missing: closing cash.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
2. 02 / 07
  Missing
  What Budgets has not given you yet.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
3. 03 / 07
  Find
  Draw the situation for Budgets. Opening cash is R4000, expected receipts are R26000 and expected payments are R18000. Calculate the closing cash.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
4. 04 / 07
  Calculate
  Closing cash=R4000+R26000−R18000=R12000.
  Closing cash=opening cash+receipts−payments
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  Closing cash=R4000+R26000−R18000=R12000.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
Closing cash=R4000+R26000−R18000=R12000.
Copy onto your answer sheet — in this order
Formula: Closing cash = opening cash + receipts − payments
Answer: Closing cash = R4000 + R26000 − R18000 = R12000.
6. Check it like a marker
Closing cash is larger than the opening cash when receipts exceed payments.
7. A trap first-timers fall into
Do not calculate 15% VAT on the receipts. This question is a cash budget.
15 · 4 Marks · Fixed assets
Accounting Grade 12. Draw the situation for Fixed assets. A vehicle cost R24000 and accumulated depreciation is R10000. It is sold for R11000. Calculate the profit or loss on disposal.
Formulas
Profit or loss=proceeds−carrying amount
Carrying amount = cost − accumulated depreciation
Notes: Given: cost R24000, accumulated depreciation R10000, proceeds R11000. Missing: carrying amount and profit or loss.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Accounting Grade 12. Draw the situation for Fixed assets. A vehicle cost R24000 and accumulated depreciation is R10000. It is sold for R11000. Calculate the profit or loss on disposal.
Before any working — hunt first
Given
Numbers and units already in the sentence: 12 · R24000 and · R10000 · R11000. Copy each one into a column. A name without a number is not given.
Missing
After you copy the given, the letter that still has no number is missing. The paper is pointing at: the profit or loss on disposal. Circle that word — that is the missing variable.
Find
We are required to find: the profit or loss on disposal. Write that as a symbol on the left, with a question mark, before you touch a formula.
Calculate
Write Profit or loss = proceeds − carrying amount with empty letters. Cross out every letter that already has a number. Calculate the letter that is still standing — that gives the profit or loss on disposal.
In other words — as if you have never seen this before
Fixed assets. On disposal, compare the cash received with the carrying amount. Carrying amount is cost minus accumulated depreciation.
2. What do we already know?
Given: cost R24000, accumulated depreciation R10000, proceeds R11000. Missing: carrying amount and profit or loss.
3. Which method — and why this one?
Fixed assets. On disposal, compare the cash received with the carrying amount. Carrying amount is cost minus accumulated depreciation.
4. Step-by-step working
1. 01 / 07
  Given
  Given: cost R24000, accumulated depreciation R10000, proceeds R11000. Missing: carrying amount and profit or loss.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
2. 02 / 07
  Missing
  What Fixed assets has not given you yet.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
3. 03 / 07
  Find
  Draw the situation for Fixed assets. A vehicle cost R24000 and accumulated depreciation is R10000. It is sold for R11000. Calculate the profit or loss on disposal.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
4. 04 / 07
  Calculate
  Carrying amount = R24000 − R10000 = R14000. Proceeds R11000 give a loss of R3000.
  Profit or loss=proceeds−carrying amount
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  Carrying amount = R24000 − R10000 = R14000. Proceeds R11000 give a loss of R3000.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
Carrying amount = R24000 − R10000 = R14000. Proceeds R11000 give a loss of R3000.
Copy onto your answer sheet — in this order
Formula: Profit or loss = proceeds − carrying amount
Answer: Carrying amount = R24000 − R10000 = R14000. Proceeds R11000 give a loss of R3000.
6. Check it like a marker
If the proceeds are below the carrying amount, the difference is a loss.
7. A trap first-timers fall into
Do not compare the selling price with the original cost and ignore depreciation.
16 · 4 Marks · Ethics and internal control
Accounting Grade 12. Use this case. A supplier's gift. A buyer at a wholesaler in Germiston is offered R1 000 to choose one supplier's rice even though another quote is R2 cheaper a bag. Taking the money is a conflict of interest. The ethical step is to refuse and to record both quotes. The cheaper rice is the one the business should buy. A private gift that changes the order is not a discount. In sentences, say what Ethics and internal control is doing here, from the situation to the result.
Notes: A Seshego school tuck shop, with one cash box and three different people checking it, is the control in daily use.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Accounting Grade 12. Use this case. A supplier's gift. A buyer at a wholesaler in Germiston is offered R1 000 to choose one supplier's rice even though another quote is R2 cheaper a bag. Taking the money is a conflict of interest. The ethical step is to refuse and to record both quotes. The cheaper rice is the one the business should buy. A private gift that changes the order is not a discount. In sentences, say what Ethics and internal control is doing here, from the situation to the result.
In other words — as if you have never seen this before
Ethics and internal control. Division of duties means the person who handles cash is not the same person who records it or who agrees the bank statement. Documents are numbered and checked. A senior reviews journals. Ethics adds the duty to report a shortage, refuse a kickback, and not hide a loss to protect a bonus. A control that exists only on paper, while one person does every step, does not protect the business.
2. What do we already know?
A Seshego school tuck shop, with one cash box and three different people checking it, is the control in daily use.
3. Which method — and why this one?
Ethics and internal control. Division of duties means the person who handles cash is not the same person who records it or who agrees the bank statement. Documents are numbered and checked. A senior reviews journals. Ethics adds the duty to report a shortage, refuse a kickback, and not hide a loss to protect a bonus. A control that exists only on paper, while one person does every step, does not protect the business.
4. Step-by-step working
1. 01 / 07
  What it is
  Internal control is the set of checks that protects cash and stock, and ethics is doing the honest thing when a check is missing or when a personal gain clashes with the books.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
2. 02 / 07
  How it works
  Division of duties means the person who handles cash is not the same person who records it or who agrees the bank statement. Documents are numbered and checked. A senior reviews journals. Ethics adds the duty to report a shortage, refuse a kickback, and not hide a loss to protect a bonus. A control that exists only on paper, while one person does every step, does not protect the business.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
3. 03 / 07
  Worked theory
  Worked theory. At a school tuck shop in Seshego, one learner used to take the cash, write the sales and prepare the deposit. In March the float was R400 short and the deposit slip matched the written sales, so the shortage was invisible. The teacher splits the work: one learner takes cash, another writes the sales sheet, and the teacher compares both to the bank deposit. The next shortage shows up the same day because the three records no longer come from one hand. The missing R400 was an internal-control failure, not a new kind of expense.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
4. 04 / 07
  Say it back
  Separate the hands that touch the cash, the record and the bank check, and report a shortage when you see it.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  Separate the hands that touch the cash, the record and the bank check, and report a shortage when you see it.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
Separate the hands that touch the cash, the record and the bank check, and report a shortage when you see it.
Copy onto your answer sheet — in this order
Answer: Separate the hands that touch the cash, the record and the bank check, and report a shortage when you see it.
6. Check it like a marker
The answer names the situation, what changed, and the result. It does not stop at a heading.
7. A trap first-timers fall into
A common mix-up is to treat ethics as a slogan on the wall, or as an accounting equation. A control is a split in the work that would catch a missing amount.
17 · 8 Marks · Manufacturing: production cost statement
Accounting Grade 12. Draw the situation for Manufacturing: production cost statement. Raw materials R22000 opening, R96000 purchases, R4000 carriage, R22000 closing; direct labour R64000; overheads R44000; WIP R12000 opening and R15000 closing; 2000 units finished.
Formulas
Cost of production=direct materials+direct labour+factory overheads+opening WIP−closing WIP
Prime cost = direct material cost + direct labour cost
Notes: Given: materials, labour R64000, overheads R44000, WIP R12000R15000, 2000 units. Missing: cost of production and unit cost.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Accounting Grade 12. Draw the situation for Manufacturing: production cost statement. Raw materials R22000 opening, R96000 purchases, R4000 carriage, R22000 closing; direct labour R64000; overheads R44000; WIP R12000 opening and R15000 closing; 2000 units finished.
In other words — as if you have never seen this before
Manufacturing: production cost statement. A factory's cost of production adds direct materials, direct labour and factory overheads, then adjusts for work-in-progress that is not yet finished.
2. What do we already know?
Given: materials, labour R64000, overheads R44000, WIP R12000R15000, 2000 units. Missing: cost of production and unit cost.
3. Which method — and why this one?
Manufacturing: production cost statement. A factory's cost of production adds direct materials, direct labour and factory overheads, then adjusts for work-in-progress that is not yet finished.
4. Step-by-step working
1. 01 / 07
  Given
  Given: materials, labour R64000, overheads R44000, WIP R12000R15000, 2000 units. Missing: cost of production and unit cost.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
2. 02 / 07
  Missing
  What Manufacturing: production cost statement has not given you yet.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
3. 03 / 07
  Find
  Draw the situation for Manufacturing: production cost statement. Raw materials R22000 opening, R96000 purchases, R4000 carriage, R22000 closing; direct labour R64000; overheads R44000; WIP R12000 opening and R15000 closing; 2000 units finished.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
4. 04 / 07
  Calculate
  Direct material cost R100000; prime cost R164000; cost of production of finished goods R205000; unit cost R102.50.
  Cost of production=direct materials+direct labour+factory overheads+opening WIP−closing WIP
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  Direct material cost R100000; prime cost R164000; cost of production of finished goods R205000; unit cost R102.50.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
Direct material cost R100000; prime cost R164000; cost of production of finished goods R205000; unit cost R102.50.
Copy onto your answer sheet — in this order
Formula: Cost of production = direct materials + direct labour + factory overheads + opening WIP − closing WIP
Answer: Direct material cost R100000; prime cost R164000; cost of production of finished goods R205000; unit cost R102.50.
6. Check it like a marker
Carriage on raw materials belongs in direct material cost; office and selling costs never go into the production cost statement.
7. A trap first-timers fall into
Do not add closing work-in-progress; it is subtracted because those goods are not finished yet.
18 · 4 Marks · Cash flow statement
Accounting Grade 12. Draw the situation for Cash flow statement. Profit is R35000, depreciation is R4000 and inventory increased by R3000. A vehicle was bought for R12000 cash. Calculate cash from operations and classify the vehicle.
Formulas
Operating cash=profit+depreciation−increase in inventory
A vehicle purchase is investing, not operating
Notes: Given: profit R35000, depreciation R4000, inventory increase R3000, vehicle R12000. Missing: operating cash and the vehicle's section.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Accounting Grade 12. Draw the situation for Cash flow statement. Profit is R35000, depreciation is R4000 and inventory increased by R3000. A vehicle was bought for R12000 cash. Calculate cash from operations and classify the vehicle.
In other words — as if you have never seen this before
Cash flow statement. Cash from operations starts at profit, adds back depreciation, and subtracts an increase in inventory. Buying a vehicle is an investing outflow, not an operating expense.
2. What do we already know?
Given: profit R35000, depreciation R4000, inventory increase R3000, vehicle R12000. Missing: operating cash and the vehicle's section.
3. Which method — and why this one?
Cash flow statement. Cash from operations starts at profit, adds back depreciation, and subtracts an increase in inventory. Buying a vehicle is an investing outflow, not an operating expense.
4. Step-by-step working
1. 01 / 07
  Given
  Given: profit R35000, depreciation R4000, inventory increase R3000, vehicle R12000. Missing: operating cash and the vehicle's section.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
2. 02 / 07
  Missing
  What Cash flow statement has not given you yet.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
3. 03 / 07
  Find
  Draw the situation for Cash flow statement. Profit is R35000, depreciation is R4000 and inventory increased by R3000. A vehicle was bought for R12000 cash. Calculate cash from operations and classify the vehicle.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
4. 04 / 07
  Calculate
  Cash from operations = R35000 + R4000 − R3000 = R36000. The vehicle of R12000 is an investing outflow.
  Operating cash=profit+depreciation−increase in inventory
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  Cash from operations = R35000 + R4000 − R3000 = R36000. The vehicle of R12000 is an investing outflow.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
Cash from operations = R35000 + R4000 − R3000 = R36000. The vehicle of R12000 is an investing outflow.
Copy onto your answer sheet — in this order
Formula: Operating cash = profit + depreciation − increase in inventory
Answer: Cash from operations = R35000 + R4000 − R3000 = R36000. The vehicle of R12000 is an investing outflow.
6. Check it like a marker
Operating cash is not the same as profit, and the vehicle is not in that line.
7. A trap first-timers fall into
Do not calculate 15% VAT on the profit. This topic is the cash flow statement.
19 · 4 Marks · Reconciliations
Accounting Grade 12. Draw the situation for Reconciliations. Debtors control is R14000 and the debtors list totals R13400 because an invoice of R600 was omitted. State the corrected list total.
Formulas
Debtors control=total of the debtors list
Any difference has to be found and corrected
Notes: Given: control R14000, list R13400, omitted invoice R600. Missing: the corrected list.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Accounting Grade 12. Draw the situation for Reconciliations. Debtors control is R14000 and the debtors list totals R13400 because an invoice of R600 was omitted. State the corrected list total.
Before any working — hunt first
Given
Numbers and units already in the sentence: 12 · R14000 and · R13400 because · R600 was. Copy each one into a column. A name without a number is not given.
Missing
After you copy the given, the letter that still has no number is missing. The paper is pointing at: State the corrected list total. Circle that word — that is the missing variable.
Find
We are required to find: State the corrected list total. Write that as a symbol on the left, with a question mark, before you touch a formula.
Calculate
Write Debtors control = total of the debtors list with empty letters. Cross out every letter that already has a number. Calculate the letter that is still standing — that gives State the corrected list total.
In other words — as if you have never seen this before
Reconciliations. The debtors control account must equal the debtors list. A difference is a missing or misposted entry, not a new sale.
2. What do we already know?
Given: control R14000, list R13400, omitted invoice R600. Missing: the corrected list.
3. Which method — and why this one?
Reconciliations. The debtors control account must equal the debtors list. A difference is a missing or misposted entry, not a new sale.
4. Step-by-step working
1. 01 / 07
  Given
  Given: control R14000, list R13400, omitted invoice R600. Missing: the corrected list.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
2. 02 / 07
  Missing
  What Reconciliations has not given you yet.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
3. 03 / 07
  Find
  Draw the situation for Reconciliations. Debtors control is R14000 and the debtors list totals R13400 because an invoice of R600 was omitted. State the corrected list total.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
4. 04 / 07
  Calculate
  The list is short by R600. After the omitted invoice is entered, the list is R13400 + R600 = R14000, which matches the control account.
  Debtors control=total of the debtors list
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  The list is short by R600. After the omitted invoice is entered, the list is R13400 + R600 = R14000, which matches the control account.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
The list is short by R600. After the omitted invoice is entered, the list is R13400 + R600 = R14000, which matches the control account.
Copy onto your answer sheet — in this order
Formula: Debtors control = total of the debtors list
Answer: The list is short by R600. After the omitted invoice is entered, the list is R13400 + R600 = R14000, which matches the control account.
6. Check it like a marker
After the correction the two totals are equal.
7. A trap first-timers fall into
Do not raise a new sale for the difference. The invoice already exists. It was left off the list.
20 · 4 Marks · Companies: shares and financial statements
Accounting Grade 12. Draw the situation for VAT. Exclusive sales are R25000 and exclusive purchases are R4000. VAT is 15%. Calculate the VAT payable.
Formulas
Ordinary share capital=shares×issue price
No-par shares: the full cash received is share capital
Notes: Given: sales R25000, purchases R4000, rate 15%. Missing: output VAT, input VAT and the amount payable.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Accounting Grade 12. Draw the situation for VAT. Exclusive sales are R25000 and exclusive purchases are R4000. VAT is 15%. Calculate the VAT payable.
Before any working — hunt first
Given
Numbers and units already in the sentence: 12 · R25000 and · R4000 · 15%. Copy each one into a column. A name without a number is not given.
Missing
After you copy the given, the letter that still has no number is missing. The paper is pointing at: the VAT payable. Circle that word — that is the missing variable.
Find
We are required to find: the VAT payable. Write that as a symbol on the left, with a question mark, before you touch a formula.
Calculate
Write VAT payable = output VAT − input VAT with empty letters. Cross out every letter that already has a number. Calculate the letter that is still standing — that gives the VAT payable.
In other words — as if you have never seen this before
VAT. VAT payable is output VAT on sales minus input VAT on purchases. It is not 15% of the profit.
2. What do we already know?
Given: sales R25000, purchases R4000, rate 15%. Missing: output VAT, input VAT and the amount payable.
3. Which method — and why this one?
VAT. VAT payable is output VAT on sales minus input VAT on purchases. It is not 15% of the profit.
4. Step-by-step working
1. 01 / 07
  Given
  Given: sales R25000, purchases R4000, rate 15%. Missing: output VAT, input VAT and the amount payable.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
2. 02 / 07
  Missing
  What VAT has not given you yet.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
3. 03 / 07
  Find
  Draw the situation for VAT. Exclusive sales are R25000 and exclusive purchases are R4000. VAT is 15%. Calculate the VAT payable.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
4. 04 / 07
  Calculate
  Output VAT R3750 − input VAT R600 = VAT payable R3150.
  VAT payable=output VAT−input VAT
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  Output VAT R3750 − input VAT R600 = VAT payable R3150.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
Output VAT R3750 − input VAT R600 = VAT payable R3150.
Copy onto your answer sheet — in this order
Formula: VAT payable = output VAT − input VAT
Answer: Output VAT R3750 − input VAT R600 = VAT payable R3150.
6. Check it like a marker
VAT payable is smaller than output VAT.
7. A trap first-timers fall into
Do not charge 15% on the difference between sales and purchases and call that the only step. Show output and input separately.
21 · 8 Marks · Budgets
Accounting Grade 12. Draw the situation for Budgets. Opening cash is R5000, expected receipts are R26000 and expected payments are R18000. Calculate the closing cash.
Formulas
Closing cash=opening cash+receipts−payments
A cash budget for the period
Notes: Given: opening R5000, receipts R26000, payments R18000. Missing: closing cash.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Accounting Grade 12. Draw the situation for Budgets. Opening cash is R5000, expected receipts are R26000 and expected payments are R18000. Calculate the closing cash.
Before any working — hunt first
Given
Numbers and units already in the sentence: 12 · R5000 · R26000 and · R18000. Copy each one into a column. A name without a number is not given.
Missing
After you copy the given, the letter that still has no number is missing. The paper is pointing at: the closing cash. Circle that word — that is the missing variable.
Find
We are required to find: the closing cash. Write that as a symbol on the left, with a question mark, before you touch a formula.
Calculate
Write Closing cash = opening cash + receipts − payments with empty letters. Cross out every letter that already has a number. Calculate the letter that is still standing — that gives the closing cash.
In other words — as if you have never seen this before
Budgets. A cash budget forecasts closing cash from opening cash, expected receipts and expected payments. It is not a VAT invoice.
2. What do we already know?
Given: opening R5000, receipts R26000, payments R18000. Missing: closing cash.
3. Which method — and why this one?
Budgets. A cash budget forecasts closing cash from opening cash, expected receipts and expected payments. It is not a VAT invoice.
4. Step-by-step working
1. 01 / 07
  Given
  Given: opening R5000, receipts R26000, payments R18000. Missing: closing cash.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
2. 02 / 07
  Missing
  What Budgets has not given you yet.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
3. 03 / 07
  Find
  Draw the situation for Budgets. Opening cash is R5000, expected receipts are R26000 and expected payments are R18000. Calculate the closing cash.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
4. 04 / 07
  Calculate
  Closing cash=R5000+R26000−R18000=R13000.
  Closing cash=opening cash+receipts−payments
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  Closing cash=R5000+R26000−R18000=R13000.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
Closing cash=R5000+R26000−R18000=R13000.
Copy onto your answer sheet — in this order
Formula: Closing cash = opening cash + receipts − payments
Answer: Closing cash = R5000 + R26000 − R18000 = R13000.
6. Check it like a marker
Closing cash is larger than the opening cash when receipts exceed payments.
7. A trap first-timers fall into
Do not calculate 15% VAT on the receipts. This question is a cash budget.
22 · 4 Marks · Fixed assets
Accounting Grade 12. Draw the situation for Fixed assets. A vehicle cost R24000 and accumulated depreciation is R8000. It is sold for R11000. Calculate the profit or loss on disposal.
Formulas
Profit or loss=proceeds−carrying amount
Carrying amount = cost − accumulated depreciation
Notes: Given: cost R24000, accumulated depreciation R8000, proceeds R11000. Missing: carrying amount and profit or loss.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Accounting Grade 12. Draw the situation for Fixed assets. A vehicle cost R24000 and accumulated depreciation is R8000. It is sold for R11000. Calculate the profit or loss on disposal.
Before any working — hunt first
Given
Numbers and units already in the sentence: 12 · R24000 and · R8000 · R11000. Copy each one into a column. A name without a number is not given.
Missing
After you copy the given, the letter that still has no number is missing. The paper is pointing at: the profit or loss on disposal. Circle that word — that is the missing variable.
Find
We are required to find: the profit or loss on disposal. Write that as a symbol on the left, with a question mark, before you touch a formula.
Calculate
Write Profit or loss = proceeds − carrying amount with empty letters. Cross out every letter that already has a number. Calculate the letter that is still standing — that gives the profit or loss on disposal.
In other words — as if you have never seen this before
Fixed assets. On disposal, compare the cash received with the carrying amount. Carrying amount is cost minus accumulated depreciation.
2. What do we already know?
Given: cost R24000, accumulated depreciation R8000, proceeds R11000. Missing: carrying amount and profit or loss.
3. Which method — and why this one?
Fixed assets. On disposal, compare the cash received with the carrying amount. Carrying amount is cost minus accumulated depreciation.
4. Step-by-step working
1. 01 / 07
  Given
  Given: cost R24000, accumulated depreciation R8000, proceeds R11000. Missing: carrying amount and profit or loss.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
2. 02 / 07
  Missing
  What Fixed assets has not given you yet.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
3. 03 / 07
  Find
  Draw the situation for Fixed assets. A vehicle cost R24000 and accumulated depreciation is R8000. It is sold for R11000. Calculate the profit or loss on disposal.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
4. 04 / 07
  Calculate
  Carrying amount = R24000 − R8000 = R16000. Proceeds R11000 give a loss of R5000.
  Profit or loss=proceeds−carrying amount
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  Carrying amount = R24000 − R8000 = R16000. Proceeds R11000 give a loss of R5000.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
Carrying amount = R24000 − R8000 = R16000. Proceeds R11000 give a loss of R5000.
Copy onto your answer sheet — in this order
Formula: Profit or loss = proceeds − carrying amount
Answer: Carrying amount = R24000 − R8000 = R16000. Proceeds R11000 give a loss of R5000.
6. Check it like a marker
If the proceeds are below the carrying amount, the difference is a loss.
7. A trap first-timers fall into
Do not compare the selling price with the original cost and ignore depreciation.
23 · 4 Marks · Manufacturing: production cost statement
Accounting Grade 12. Draw the situation for Manufacturing: production cost statement. Raw materials R22000 opening, R96000 purchases, R4000 carriage, R22000 closing; direct labour R64000; overheads R41000; WIP R12000 opening and R15000 closing; 2000 units finished.
Formulas
Cost of production=direct materials+direct labour+factory overheads+opening WIP−closing WIP
Prime cost = direct material cost + direct labour cost
Notes: Given: materials, labour R64000, overheads R41000, WIP R12000R15000, 2000 units. Missing: cost of production and unit cost.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Accounting Grade 12. Draw the situation for Manufacturing: production cost statement. Raw materials R22000 opening, R96000 purchases, R4000 carriage, R22000 closing; direct labour R64000; overheads R41000; WIP R12000 opening and R15000 closing; 2000 units finished.
In other words — as if you have never seen this before
Manufacturing: production cost statement. A factory's cost of production adds direct materials, direct labour and factory overheads, then adjusts for work-in-progress that is not yet finished.
2. What do we already know?
Given: materials, labour R64000, overheads R41000, WIP R12000R15000, 2000 units. Missing: cost of production and unit cost.
3. Which method — and why this one?
Manufacturing: production cost statement. A factory's cost of production adds direct materials, direct labour and factory overheads, then adjusts for work-in-progress that is not yet finished.
4. Step-by-step working
1. 01 / 07
  Given
  Given: materials, labour R64000, overheads R41000, WIP R12000R15000, 2000 units. Missing: cost of production and unit cost.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
2. 02 / 07
  Missing
  What Manufacturing: production cost statement has not given you yet.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
3. 03 / 07
  Find
  Draw the situation for Manufacturing: production cost statement. Raw materials R22000 opening, R96000 purchases, R4000 carriage, R22000 closing; direct labour R64000; overheads R41000; WIP R12000 opening and R15000 closing; 2000 units finished.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
4. 04 / 07
  Calculate
  Direct material cost R100000; prime cost R164000; cost of production of finished goods R202000; unit cost R101.00.
  Cost of production=direct materials+direct labour+factory overheads+opening WIP−closing WIP
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  Direct material cost R100000; prime cost R164000; cost of production of finished goods R202000; unit cost R101.00.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
Direct material cost R100000; prime cost R164000; cost of production of finished goods R202000; unit cost R101.00.
Copy onto your answer sheet — in this order
Formula: Cost of production = direct materials + direct labour + factory overheads + opening WIP − closing WIP
Answer: Direct material cost R100000; prime cost R164000; cost of production of finished goods R202000; unit cost R101.00.
6. Check it like a marker
Carriage on raw materials belongs in direct material cost; office and selling costs never go into the production cost statement.
7. A trap first-timers fall into
Do not add closing work-in-progress; it is subtracted because those goods are not finished yet.
24 · 4 Marks · Cash flow statement
Accounting Grade 12. Draw the situation for Cash flow statement. Profit is R40000, depreciation is R4000 and inventory increased by R3000. A vehicle was bought for R12000 cash. Calculate cash from operations and classify the vehicle.
Formulas
Operating cash=profit+depreciation−increase in inventory
A vehicle purchase is investing, not operating
Notes: Given: profit R40000, depreciation R4000, inventory increase R3000, vehicle R12000. Missing: operating cash and the vehicle's section.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Accounting Grade 12. Draw the situation for Cash flow statement. Profit is R40000, depreciation is R4000 and inventory increased by R3000. A vehicle was bought for R12000 cash. Calculate cash from operations and classify the vehicle.
In other words — as if you have never seen this before
Cash flow statement. Cash from operations starts at profit, adds back depreciation, and subtracts an increase in inventory. Buying a vehicle is an investing outflow, not an operating expense.
2. What do we already know?
Given: profit R40000, depreciation R4000, inventory increase R3000, vehicle R12000. Missing: operating cash and the vehicle's section.
3. Which method — and why this one?
Cash flow statement. Cash from operations starts at profit, adds back depreciation, and subtracts an increase in inventory. Buying a vehicle is an investing outflow, not an operating expense.
4. Step-by-step working
1. 01 / 07
  Given
  Given: profit R40000, depreciation R4000, inventory increase R3000, vehicle R12000. Missing: operating cash and the vehicle's section.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
2. 02 / 07
  Missing
  What Cash flow statement has not given you yet.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
3. 03 / 07
  Find
  Draw the situation for Cash flow statement. Profit is R40000, depreciation is R4000 and inventory increased by R3000. A vehicle was bought for R12000 cash. Calculate cash from operations and classify the vehicle.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
4. 04 / 07
  Calculate
  Cash from operations = R40000 + R4000 − R3000 = R41000. The vehicle of R12000 is an investing outflow.
  Operating cash=profit+depreciation−increase in inventory
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  Cash from operations = R40000 + R4000 − R3000 = R41000. The vehicle of R12000 is an investing outflow.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
Cash from operations = R40000 + R4000 − R3000 = R41000. The vehicle of R12000 is an investing outflow.
Copy onto your answer sheet — in this order
Formula: Operating cash = profit + depreciation − increase in inventory
Answer: Cash from operations = R40000 + R4000 − R3000 = R41000. The vehicle of R12000 is an investing outflow.
6. Check it like a marker
Operating cash is not the same as profit, and the vehicle is not in that line.
7. A trap first-timers fall into
Do not calculate 15% VAT on the profit. This topic is the cash flow statement.
25 · 8 Marks · Reconciliations
Accounting Grade 12. Draw the situation for Reconciliations. Debtors control is R15000 and the debtors list totals R14400 because an invoice of R600 was omitted. State the corrected list total.
Formulas
Debtors control=total of the debtors list
Any difference has to be found and corrected
Notes: Given: control R15000, list R14400, omitted invoice R600. Missing: the corrected list.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Accounting Grade 12. Draw the situation for Reconciliations. Debtors control is R15000 and the debtors list totals R14400 because an invoice of R600 was omitted. State the corrected list total.
Before any working — hunt first
Given
Numbers and units already in the sentence: 12 · R15000 and · R14400 because · R600 was. Copy each one into a column. A name without a number is not given.
Missing
After you copy the given, the letter that still has no number is missing. The paper is pointing at: State the corrected list total. Circle that word — that is the missing variable.
Find
We are required to find: State the corrected list total. Write that as a symbol on the left, with a question mark, before you touch a formula.
Calculate
Write Debtors control = total of the debtors list with empty letters. Cross out every letter that already has a number. Calculate the letter that is still standing — that gives State the corrected list total.
In other words — as if you have never seen this before
Reconciliations. The debtors control account must equal the debtors list. A difference is a missing or misposted entry, not a new sale.
2. What do we already know?
Given: control R15000, list R14400, omitted invoice R600. Missing: the corrected list.
3. Which method — and why this one?
Reconciliations. The debtors control account must equal the debtors list. A difference is a missing or misposted entry, not a new sale.
4. Step-by-step working
1. 01 / 07
  Given
  Given: control R15000, list R14400, omitted invoice R600. Missing: the corrected list.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
2. 02 / 07
  Missing
  What Reconciliations has not given you yet.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
3. 03 / 07
  Find
  Draw the situation for Reconciliations. Debtors control is R15000 and the debtors list totals R14400 because an invoice of R600 was omitted. State the corrected list total.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
4. 04 / 07
  Calculate
  The list is short by R600. After the omitted invoice is entered, the list is R14400 + R600 = R15000, which matches the control account.
  Debtors control=total of the debtors list
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  The list is short by R600. After the omitted invoice is entered, the list is R14400 + R600 = R15000, which matches the control account.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
The list is short by R600. After the omitted invoice is entered, the list is R14400 + R600 = R15000, which matches the control account.
Copy onto your answer sheet — in this order
Formula: Debtors control = total of the debtors list
Answer: The list is short by R600. After the omitted invoice is entered, the list is R14400 + R600 = R15000, which matches the control account.
6. Check it like a marker
After the correction the two totals are equal.
7. A trap first-timers fall into
Do not raise a new sale for the difference. The invoice already exists. It was left off the list.
26 · 3 Marks · Companies: shares and financial statements
Draw the situation for Companies: shares and financial statements. 3000 no-par ordinary shares are issued at R5 each for cash. State the bank increase and ordinary share capital.
Formulas
Ordinary share capital=shares×issue price
No-par shares: the full cash received is share capital
Notes: Given: 3000 shares, issue price R5, no par value. Missing: bank and share capital.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Draw the situation for Companies: shares and financial statements. 3000 no-par ordinary shares are issued at R5 each for cash. State the bank increase and ordinary share capital.
In other words — as if you have never seen this before
Since the Companies Act 71 of 2008, new shares have no par value. The whole issue price is ordinary share capital, not a share premium.
2. What do we already know?
Given: 3000 shares, issue price R5, no par value. Missing: bank and share capital.
3. Which method — and why this one?
Since the Companies Act 71 of 2008, new shares have no par value. The whole issue price is ordinary share capital, not a share premium.
4. Step-by-step working
1. 01 / 07
  Step A — Read the question twice
  Slow down. Circle the word that names the unknown. Underline every number and its unit. Do not grab a formula yet — first decide what the paper is actually asking.
  Why this step: If you can say the method in a sentence, you will pick the right formula. First-timers skip this and grab the first equation they remember.
2. 02 / 07
  Step B — Write the given in a column
  Given: 3000 shares, issue price R5, no par value. Missing: bank and share capital.
  Why this step: A column with units stops you mixing cm with m, or minutes with seconds. Markers can also see you started correctly.
3. 03 / 07
  Step C — Name the method in words
  Since the Companies Act 71 of 2008, new shares have no par value. The whole issue price is ordinary share capital, not a share premium.
  Why this step: If you can say the method in a sentence, you will pick the right formula. First-timers skip this and grab the first equation they remember.
4. 04 / 07
  Working
  Since the Companies Act 71 of 2008, new shares have no par value. The whole issue price is ordinary share capital, not a share premium. The cash received and ordinary share capital are the same amount.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  Bank increases by R15000. Ordinary share capital increases by R15000. There is no share premium.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
Bank increases by R15000. Ordinary share capital increases by R15000. There is no share premium.
Copy onto your answer sheet — in this order
Answer: Bank increases by R15000. Ordinary share capital increases by R15000. There is no share premium.
6. Check it like a marker
The cash received and ordinary share capital are the same amount.
7. A trap first-timers fall into
Do not use a par value or a share premium. The 2008 Companies Act abolished par value for new issues.
27 · 2 Marks · Fixed assets
On disposal, compare the cash received with the carrying amount. Carrying amount is cost minus accumulated depreciation. Which line belongs to Fixed assets?
Formulas
Profit or loss=proceeds−carrying amount
Carrying amount = cost − accumulated depreciation
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: On disposal, compare the cash received with the carrying amount. Carrying amount is cost minus accumulated depreciation. Which line belongs to Fixed assets?
Before any working — hunt first
Given
Numbers and units already in the sentence: no numbers yet — only a name, a diagram, or a worded unknown. Copy each one into a column. A name without a number is not given.
Missing
After you copy the given, the letter that still has no number is missing. The paper is pointing at: Which line belongs to Fixed assets. Circle that word — that is the missing variable.
Find
We are required to find: Which line belongs to Fixed assets. Write that as a symbol on the left, with a question mark, before you touch a formula.
Calculate
What we need to calculate: Do not compare the selling price with the original cost and ignore depreciation. Then substitute the given, one line at a time, to get Which line belongs to Fixed assets.
In other words — as if you have never seen this before
Do not compare the selling price with the original cost and ignore depreciation.
2. What do we already know?
Copy these onto the left of your page, one per line, with units: every number and its unit in the sentence. Mixing cm with m, or minutes with seconds, loses a method mark.
3. Which method — and why this one?
Do not compare the selling price with the original cost and ignore depreciation.
4. Step-by-step working
1. 01 / 08
  Step A — Read the question twice
  Slow down. Circle the word that names the unknown. Underline every number and its unit. Do not grab a formula yet — first decide what the paper is actually asking.
  Why this step: If you can say the method in a sentence, you will pick the right formula. First-timers skip this and grab the first equation they remember.
2. 02 / 08
  Step A2 — Hunt: Given, Missing, Find, Calculate
  Given: Numbers and units already in the sentence: no numbers yet — only a name, a diagram, or a worded unknown. Copy each one into a column. A name without a number is not given. Missing: After you copy the given, the letter that still has no number is missing. The paper is pointing at: Which line belongs to Fixed assets. Circle that word — that is the missing variable. Find: We are required to find: Which line belongs to Fixed assets. Write that as a symbol on the left, with a question mark, before you touch a formula. Calculate: What we need to calculate: Do not compare the selling price with the original cost and ignore depreciation. Then substitute the given, one line at a time, to get Which line belongs to Fixed assets.
  Why this step: Do not name the letters yet. First hunt: what already has a number (Given), what has no number (Missing), the word the paper wants (Find), and which formula still contains the missing letter (Calculate).
3. 03 / 08
  Step B — Write the given in a column
  Copy these onto the left of your page, one per line, with units: every number and its unit in the sentence. Mixing cm with m, or minutes with seconds, loses a method mark.
  Why this step: A column with units stops you mixing cm with m, or minutes with seconds. Markers can also see you started correctly.
4. 04 / 08
  Step C — Name the method in words
  Do not compare the selling price with the original cost and ignore depreciation.
  Why this step: If you can say the method in a sentence, you will pick the right formula. First-timers skip this and grab the first equation they remember.
5. 05 / 08
  Working
  Do not compare the selling price with the original cost and ignore depreciation.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
6. 06 / 08
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
7. 07 / 08
  Step F — Box the answer with its unit
  Do not compare the selling price with the original cost and ignore depreciation.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
8. 08 / 08
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
Do not compare the selling price with the original cost and ignore depreciation.
Copy onto your answer sheet — in this order
Answer: Do not compare the selling price with the original cost and ignore depreciation.
6. Check it like a marker
Does your answer appear as one of the options? Do the units match what was asked (m, N, J, °)? If you put the number back into the original equation, does it still hold? Estimate: is the size sensible?
7. A trap first-timers fall into
First-timers often grab the first formula they remember, mix units (cm with m, minutes with seconds), or drop a minus sign. Write the formula in words first: “this equals that, because…”
28 · 2 Marks · Companies: shares and financial statements
Since the Companies Act 71 of 2008, new shares have no par value. The whole issue price is ordinary share capital, not a share premium. What is the point of Companies: shares and financial statements?
Formulas
Ordinary share capital=shares×issue price
No-par shares: the full cash received is share capital
Notes: Since the Companies Act 71 of 2008, new shares have no par value. The whole issue price is ordinary share capital, not a share premium.
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Since the Companies Act 71 of 2008, new shares have no par value. The whole issue price is ordinary share capital, not a share premium. What is the point of Companies: shares and financial statements?
In other words — as if you have never seen this before
Since the Companies Act 71 of 2008, new shares have no par value. The whole issue price is ordinary share capital, not a share premium.
2. What do we already know?
Since the Companies Act 71 of 2008, new shares have no par value. The whole issue price is ordinary share capital, not a share premium.
3. Which method — and why this one?
Since the Companies Act 71 of 2008, new shares have no par value. The whole issue price is ordinary share capital, not a share premium.
4. Step-by-step working
1. 01 / 07
  Step A — Read the question twice
  Slow down. Circle the word that names the unknown. Underline every number and its unit. Do not grab a formula yet — first decide what the paper is actually asking.
  Why this step: If you can say the method in a sentence, you will pick the right formula. First-timers skip this and grab the first equation they remember.
2. 02 / 07
  Step B — Write the given in a column
  Since the Companies Act 71 of 2008, new shares have no par value. The whole issue price is ordinary share capital, not a share premium.
  Why this step: A column with units stops you mixing cm with m, or minutes with seconds. Markers can also see you started correctly.
3. 03 / 07
  Step C — Name the method in words
  Since the Companies Act 71 of 2008, new shares have no par value. The whole issue price is ordinary share capital, not a share premium.
  Why this step: If you can say the method in a sentence, you will pick the right formula. First-timers skip this and grab the first equation they remember.
4. 04 / 07
  Working
  Since the Companies Act 71 of 2008, new shares have no par value. The whole issue price is ordinary share capital, not a share premium.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  Since the Companies Act 71 of 2008, new shares have no par value. The whole issue price is ordinary share capital, not a share premium.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
Since the Companies Act 71 of 2008, new shares have no par value. The whole issue price is ordinary share capital, not a share premium.
Copy onto your answer sheet — in this order
Answer: Since the Companies Act 71 of 2008, new shares have no par value. The whole issue price is ordinary share capital, not a share premium.
6. Check it like a marker
Does your answer appear as one of the options? Do the units match what was asked (m, N, J, °)? If you put the number back into the original equation, does it still hold? Estimate: is the size sensible?
7. A trap first-timers fall into
First-timers often grab the first formula they remember, mix units (cm with m, minutes with seconds), or drop a minus sign. Write the formula in words first: “this equals that, because…”
29 · 2 Marks · Manufacturing: production cost statement
A factory's cost of production adds direct materials, direct labour and factory overheads, then adjusts for work-in-progress that is not yet finished. Which line belongs to Manufacturing: production cost statement?
Formulas
Cost of production=direct materials+direct labour+factory overheads+opening WIP−closing WIP
Prime cost = direct material cost + direct labour cost
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: A factory's cost of production adds direct materials, direct labour and factory overheads, then adjusts for work-in-progress that is not yet finished. Which line belongs to Manufacturing: production cost statement?
In other words — as if you have never seen this before
Do not add closing work-in-progress; it is subtracted because those goods are not finished yet.
2. What do we already know?
Copy these onto the left of your page, one per line, with units: every number and its unit in the sentence. Mixing cm with m, or minutes with seconds, loses a method mark.
3. Which method — and why this one?
Do not add closing work-in-progress; it is subtracted because those goods are not finished yet.
4. Step-by-step working
1. 01 / 07
  Step A — Read the question twice
  Slow down. Circle the word that names the unknown. Underline every number and its unit. Do not grab a formula yet — first decide what the paper is actually asking.
  Why this step: If you can say the method in a sentence, you will pick the right formula. First-timers skip this and grab the first equation they remember.
2. 02 / 07
  Step B — Write the given in a column
  Copy these onto the left of your page, one per line, with units: every number and its unit in the sentence. Mixing cm with m, or minutes with seconds, loses a method mark.
  Why this step: A column with units stops you mixing cm with m, or minutes with seconds. Markers can also see you started correctly.
3. 03 / 07
  Step C — Name the method in words
  Do not add closing work-in-progress; it is subtracted because those goods are not finished yet.
  Why this step: If you can say the method in a sentence, you will pick the right formula. First-timers skip this and grab the first equation they remember.
4. 04 / 07
  Working
  Do not add closing work-in-progress; it is subtracted because those goods are not finished yet.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  Do not add closing work-in-progress; it is subtracted because those goods are not finished yet.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
Do not add closing work-in-progress; it is subtracted because those goods are not finished yet.
Copy onto your answer sheet — in this order
Answer: Do not add closing work-in-progress; it is subtracted because those goods are not finished yet.
6. Check it like a marker
Does your answer appear as one of the options? Do the units match what was asked (m, N, J, °)? If you put the number back into the original equation, does it still hold? Estimate: is the size sensible?
7. A trap first-timers fall into
First-timers often grab the first formula they remember, mix units (cm with m, minutes with seconds), or drop a minus sign. Write the formula in words first: “this equals that, because…”
30 · 2 Marks · Cash flow statement
Cash from operations starts at profit, adds back depreciation, and subtracts an increase in inventory. Buying a vehicle is an investing outflow, not an operating expense. Which line belongs to Cash flow statement?
Formulas
Operating cash=profit+depreciation−increase in inventory
A vehicle purchase is investing, not operating
How we got there
Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.
Explain in another language · 11
1. What is the question asking?
Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Cash from operations starts at profit, adds back depreciation, and subtracts an increase in inventory. Buying a vehicle is an investing outflow, not an operating expense. Which line belongs to Cash flow statement?
In other words — as if you have never seen this before
Do not calculate 15% VAT on the profit. This topic is the cash flow statement.
2. What do we already know?
Copy these onto the left of your page, one per line, with units: every number and its unit in the sentence. Mixing cm with m, or minutes with seconds, loses a method mark.
3. Which method — and why this one?
Do not calculate 15% VAT on the profit. This topic is the cash flow statement.
4. Step-by-step working
1. 01 / 07
  Step A — Read the question twice
  Slow down. Circle the word that names the unknown. Underline every number and its unit. Do not grab a formula yet — first decide what the paper is actually asking.
  Why this step: If you can say the method in a sentence, you will pick the right formula. First-timers skip this and grab the first equation they remember.
2. 02 / 07
  Step B — Write the given in a column
  Copy these onto the left of your page, one per line, with units: every number and its unit in the sentence. Mixing cm with m, or minutes with seconds, loses a method mark.
  Why this step: A column with units stops you mixing cm with m, or minutes with seconds. Markers can also see you started correctly.
3. 03 / 07
  Step C — Name the method in words
  Do not calculate 15% VAT on the profit. This topic is the cash flow statement.
  Why this step: If you can say the method in a sentence, you will pick the right formula. First-timers skip this and grab the first equation they remember.
4. 04 / 07
  Working
  Do not calculate 15% VAT on the profit. This topic is the cash flow statement.
  Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.
5. 05 / 07
  Step G — Sense-check the size
  Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.
  Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.
6. 06 / 07
  Step F — Box the answer with its unit
  Do not calculate 15% VAT on the profit. This topic is the cash flow statement.
  Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.
7. 07 / 07
  Step H — What the marker is looking for
  On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.
  Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.
5. The answer
Do not calculate 15% VAT on the profit. This topic is the cash flow statement.
Copy onto your answer sheet — in this order
Answer: Do not calculate 15% VAT on the profit. This topic is the cash flow statement.
6. Check it like a marker
Does your answer appear as one of the options? Do the units match what was asked (m, N, J, °)? If you put the number back into the original equation, does it still hold? Estimate: is the size sensible?
7. A trap first-timers fall into
First-timers often grab the first formula they remember, mix units (cm with m, minutes with seconds), or drop a minus sign. Write the formula in words first: “this equals that, because…”