Matric · South Africa · Predicted papers

Matric Accounting

2 papers300 marks4 h

What we predict comes up

From the syllabus weighting and how the papers are usually set. The papers below follow it.

Company financial statements18%The Income Statement and Balance Sheet notes after adjustments are the biggest Paper 1 question, often 50 to 60 marks.
Cash flow statement and indicators13%Cash Flow Statement workings (tax, dividends, fixed assets) with liquidity and return indicators, about 35 to 45 marks.
VAT and debtors and creditors reconciliations12%VAT calculations with an ethics item, and a creditors or debtors reconciliation, together about 30 to 40 marks.
Cost accounting12%Manufacturing cost statements, unit cost and break-even analysis are a fixture of Paper 2 at about 35 to 45 marks.

Paper 1: Financial accounting

2 h · 150 marks · Calculator allowed

120:00

Answer ALL the questions.
Show workings in order to earn part-marks.
You may use a non-programmable calculator.
Where a figure is asked for, give it in Rand (R) unless the question asks for cents, a percentage or a ratio.
In the mark schemes, ✓ is one mark and ☑ is a method mark, awarded for the correct operation when at least one part of the working is correct.
Use the time allocation as a guide: Question 1 (30 marks) 24 minutes; Question 2 (55 marks) 44 minutes; Question 3 (40 marks) 32 minutes; Question 4 (25 marks) 20 minutes.

Answer or mark a question and your score adds up here.

Answer all the questions150 marks

130 marks

FIXED ASSETS AND AUDIT REPORT

(1.1)Give the correct term for each description:
1.1.1 The cost of a fixed asset less its accumulated depreciation
1.1.2 The concept that assets are recorded at the price paid for them
1.1.3 The report in which an independent auditor gives an opinion on whether the financial statements are fairly presented[3]

(1.2.1)Kgosi Ltd's financial year ends on 28 February 2026. The fixed asset balances on 1 March 2025 and the transactions for the year are given in the table and information below.

Information:
(a) A new vehicle was bought on 1 September 2025 for R 380 000.
(b) An old vehicle was sold for cash on 31 December 2025 for R 96 000. Its cost was R 300 000 and its accumulated depreciation on 1 March 2025 was R 168 000.
(c) Vehicles are depreciated at 20% p.a. on cost.
(d) Equipment is depreciated at 15% p.a. on the diminishing balance method. There were no changes to equipment during the year.
(e) An extension to the buildings costing R 650 000 was completed during the year. Land and buildings are not depreciated.

Calculate the depreciation on the vehicle sold for the current year.[2]

Kgosi Ltd: fixed assets on 1 March 2025
Asset	Cost (R)	Accumulated depreciation (R)
Land and buildings	4 800 000	0
Vehicles	1 260 000	486 000
Equipment	540 000	212 400

(1.2.2)Calculate the profit or loss on the sale of the vehicle. State whether it is a profit or a loss.[4]

(1.2.3)Calculate the total depreciation on vehicles for the year.[4]

(1.2.4)Calculate the depreciation on equipment for the year.[2]

(1.2.5)Calculate the carrying value of vehicles on 28 February 2026.[4]

(1.2.6)Calculate the total carrying value of fixed assets to be shown on the Balance Sheet on 28 February 2026.[2]

(1.3.1)Read the extract, written for this practice paper, from the independent auditor's report on the financial statements of Kgosi Ltd:

"In our opinion, except for the possible effects of the matter described in the Basis for qualified opinion paragraph, the financial statements present fairly, in all material respects, the financial position of Kgosi Ltd at 28 February 2026. Basis for qualified opinion: we were unable to verify inventory of R 1 340 000 held at the company's Polokwane depot, because the stock records for the depot were lost when its computer system failed and no backup was kept."

Name the type of audit opinion given.[1]

(1.3.2)Explain why the shareholders should be concerned about this report.[2]

(1.3.3)Who appoints the independent auditor of a public company?[1]

(1.3.4)Explain why it is important that the auditor is independent of the directors.[2]

(1.3.5)Suggest ONE action the directors should take so that this problem does not happen again, and state ONE possible consequence for the directors if it is not corrected.[3]

255 marks

FINANCIAL STATEMENTS: THANDEKA TRADERS LTD
The financial year ends on 28 February 2026. The table is an extract from the pre-adjustment trial balance on that date.

Adjustments and additional information:
(a) Goods sold on credit on 27 February 2026 for R 24 000 were not recorded. The business sells at a mark-up of 60% on cost.
(b) Rent income includes R 15 500 received for March 2026.
(c) Audit fees of R 24 000 are still owed.
(d) Insurance includes R 9 600 paid for the three months March to May 2026.
(e) Interest on the loan of R 7 400 for February 2026 has not been recorded or paid.
(f) A debtor's account of R 2 400 must be written off as irrecoverable.
(g) Income tax for the year is 27% of the net profit before tax.
(h) Shares: on 1 March 2025 there were 1 200 000 ordinary shares in issue (authorised: 2 000 000 shares). On 1 December 2025 the company repurchased 80 000 shares from a retiring director at R 4.60 per share. The amount was paid; the ordinary share capital in the trial balance is still the balance before this repurchase.
(i) An interim dividend of 12 cents per share was paid on 30 September 2025. A final dividend of 18 cents per share was declared on 28 February 2026 on all shares in issue on that date.
(j) Trade creditors amount to R 284 000. R 96 000 of the loan will be repaid in the next financial year.

Thandeka Traders Ltd: pre-adjustment trial balance extract on 28 February 2026
Account	Debit (R)	Credit (R)
Ordinary share capital		4 680 000
Retained income (1 March 2025)		1 236 000
Loan: Ubuntu Bank		820 000
SARS: income tax (provisional payments)	172 000
Sales		8 640 000
Cost of sales	5 400 000
Rent income		186 000
Interest income		14 200
Salaries and wages	1 248 000
Directors' fees	864 000
Audit fees	96 000
Sundry expenses	141 000
Bad debts	18 600
Advertising	63 500
Insurance	54 000
Depreciation	172 400
Interest on loan	82 000
Ordinary share dividends (interim)	144 000

(2.1)Prepare the Income Statement for the year ended 28 February 2026, and give the net profit after tax.[22]

(2.2)Prepare the Ordinary share capital note on the Balance Sheet, and give the issued share capital on 28 February 2026.[6]

(2.3)Prepare the Retained income note on the Balance Sheet, and give the retained income on 28 February 2026.[9]

(2.4)Calculate the amount owed to (or by) SARS for income tax on 28 February 2026.[3]

(2.5)Calculate the total current liabilities on the Balance Sheet on 28 February 2026.[8]

(2.6)Calculate the total shareholders' equity on 28 February 2026.[3]

(2.7)The directors paid R 4.60 per share for the shares repurchased. Give TWO reasons why a company may buy back its own shares, and comment on the price paid.[4]

340 marks

CASH FLOW STATEMENT AND FINANCIAL INDICATORS: LWAZI LTD
The financial year ends on 28 February 2026.

Information:
(a) Net profit before tax was R 1 120 000. Income tax for the year was R 302 400.
(b) Depreciation was R 186 000 and interest expense was R 98 000 (all paid).
(c) Fixed assets with a carrying value of R 52 000 were sold at carrying value for cash.
(d) 100 000 new shares were issued on 1 March 2025 at R 3.60 each. There were 800 000 shares in issue before this.
(e) An interim dividend of 15 cents per share was paid. A final dividend of 20 cents per share was declared at year end.
(f) Trade and other payables exclude amounts owed to SARS and to shareholders.

Lwazi Ltd: extract from the Balance Sheet on 28 February
Item	2026 (R)	2025 (R)
Fixed assets (carrying value)	4 296 000	3 840 000
Fixed deposit	180 000	300 000
Inventories	642 000	588 000
Trade and other receivables	418 000	451 000
SARS: income tax	14 600 (receivable)	21 000 (payable)
Cash and cash equivalents	210 000	(48 000) overdraft
Ordinary share capital	2 760 000	2 400 000
Retained income	1 542 600	1 040 000
Loan: Mzansi Bank (total)	640 000	900 000
of which current portion of loan	80 000	0
Trade and other payables	376 000	352 000
Shareholders for dividends	180 000	156 000

(3.1)Calculate the income tax paid.[4]

(3.2)Calculate the dividends paid.[4]

(3.3)Calculate the fixed assets purchased.[4]

(3.4)Calculate the net cash from operating activities. Show the cash generated from operations.[6]

(3.5)Complete the investing and financing sections of the Cash Flow Statement and calculate the net change in cash and cash equivalents. Show that it agrees with the Balance Sheet.[8]

(3.6.1)Calculate the acid-test ratio on 28 February 2026.[3]

(3.6.2)Calculate the return on average shareholders' equity (ROSHE) for 2026, as a percentage to one decimal place.[4]

(3.6.3)Calculate the earnings per share (EPS) in cents.[3]

(3.7)In 2025 the current ratio was 1.8 : 1 and the acid-test ratio was 0.8 : 1. In 2026 the current ratio is 2.0 : 1. Comment on the liquidity of Lwazi Ltd. Quote financial indicators.[4]

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Not included: The real papers come with a separate answer book of printed templates (ledger accounts, statements and notes); here each template is asked for as a set of calculations with a worked layout in the answer.