Financial statements

This topic covers the Statement of Comprehensive Income, the Statement of Financial Position and the Cash Flow Statement of a company, built from balances and adjustments. The 6 questions here are worth 56 marks in the November 2024 Paper 1 set. Of the 56 marks, 38 are for the correct final answer and 18 for method and working. Show the calculation behind each figure.

The 2024 Diagnostic Report says candidates worked back to a gross amount with the wrong fraction: 35 over 100 instead of 35 over 65 for salary deductions, and tax worked from the top instead of 28 over 72 or 100 over 72. Bad debts were not adjusted before the provision was worked out, and the new provision was not compared with the opening one. In the cash flow statement, outflows were shown without brackets, the opening SARS credit was ignored in tax paid, and last year’s final dividend was left out of dividends paid.

Where marks are lost: in our words, from Department of Basic Education, NSC 2024 Diagnostic Report, Part 1 (Book 1).