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CAC710S- COMPUTERIZED ACCOUNTING 301- 2ND OPP- JUNE 2023 |
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nAm I BIA un IVERSITY
OFSCIEnCE Ano TECHn OLOGY
FACULTY OF COMMERCE, HUMAN SCIENCESAND EDUCATION
DEPARTMENT: ACCOUNTING, ECONOMICS AND FINANCE
QUALIFICATION: Bachelor of Accounting/ Bachelor of Accounting Chartered
QUALIFICATION CODE: 07BOAC/07BACC
LEVEL: 7
COURSE: Computerised Accounting 301
COURSE CODE: CAC710S
DATE: July 2023
SESSION: Practical
DURATION: 3 Hours
MARKS: 106 Available. MAX: 100
SECOND OPPORTUNITY EXAMINATION QUESTION PAPER
EXAMINER(S) Y. Elago & E. Kangootui
MODERATOR: E. Milijala
INSTRUCTIONS
1. This exam paper is made up of three questions.
2. Make sure that your student number appears on all reports. (Computer printed)
3. It is the student's responsibility to ensure that all reports are handed in.
4. Use of internet or any communication devices is strictly prohibited.
5. Questions relating to this examination may be raised in the initial 30 minutes after
the start of the paper. Thereafter, candidates must use their initiative to deal with
any perceived error or ambiguities & any assumption made by the candidate
should be clearly stated.
6. Round of all calculations to the nearest two decimal place.
THIS QUESTION PAPER CONSISTS OF 8 PAGES (Excluding this front page)
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You are required to create a new company on the "C" drive, using the following
information.
Company Name
: Student Number
Postal Address
: P/Bag 5338
: Windhoek
Bankers
: Capitec Ltd
Tax Processing (customers & suppliers) 15% (assume all amounts are exclusive, unless
otherwise stated)
Supplier Processing
: No GRN, No Purchase and Sales orders
Question 1
(46 Marks)
Background:
You are offered a position as the accountant of Timber Store (Pty) Ltd (VAT Vendor),
established a few years back by Mrs Verony, with a financial reporting date of 31 May each
year. The store sells furniture to residents in Divundu and around the country. During the
current financial period the owner made a resolution to migrate from the old accounting
system to a newly acquired system (Sage Pastel Partner V19). The company sells on a cash and
credit basis. To encourage cash sales, a 2.5% cash discount is allowed to all customers.
CUSTOMERS
Code
HO00l
FAI002
JO003
Name
Hope
Faith
Joy
Postal address
P/Bag 1
PO Box 2
PO Box 3
Credit limit
N$40 000
N$ 60 000
N$80 000
Contact person
Nangula
Frieda
Kapandu
Category
Credit
Credit
Credit
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Code
Name
Postal address
Credit limit
Contact
SUPPLIERS
WO0l
FU02
Wood cc
Furniture cc
PO Box 4
PO Box 5
N$100 000
N$ 40 000
Penny
Tuna
FI03
Fitting cc
PO Box 6
N$80 450
Jacky
INVENTORY
Inventory Item
Selling Price Quantity on
N$
hand
Wooden Shelves 18 000
15
Executive Chairs 28 500
-
Varnished tables
19 500
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It is the company's policy to sell all inventory at a 20% mark-up. The company uses the
periodic inventory system to account for inventory.
A list of account balances was extracted by the assistant accountant from the old system.
The owner of the firm requested you to process opening balances of the firm for the new
accounting program as at 1stJune 2021.
Accounts balances as at ist June 2021:
Property, Plant & Equipment
Accounts payables
Accounts receivables
Operating expenses
Notes
1
2
3
4
2
N$
828 000
88 600
79 300
116 210
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Cash and cash equivalents
Other account balances
10 % Mortgage Loan -FNB
Value of furniture on hand
Income from furniture
Purchase of furniture
Notes to opening balances.
1. Property, Plant & Equipment
Toyota bakkie & Dyna Lorry
Warehouse block
Trademark
Woodwork Machinery
Office furniture
2. Accounts receivables
Hope (HO0l)
Faith (FA02)
Joy (JO03)
3. Accounts payables
Wood cc (WO0l)
Furniture cc (FU02)
Fitting cc (FI03)
4. Operating expenses
Employees cost
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3
91330
48 210
100 000
64930
350 860
169 000
828 000
250 000
350 000
48 000
75 000
105 000
79 300
34 100 Dr
47 800 Cr
?????
88600
19 470 Cr
?????
54 580 Dr
116 210
45 000
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Rent
Interest paid on loan
Insurance
Office stationery
19 800
15 000
26 850
9 560
5. Cash and cash equivalent
Capitec Ltd
8% Fixed deposit
91330
53 410
37 920
6. Other accounts balance
Prior year's profit
Allowance for doubtful debts
Loan to Mrs Verony
48 210
28 710
19 500
15 800
Owner's Equity & Share Capital
Authorised share capital of Timber (Pty) Ltd is 600 000 ordinary shares of N$2.30 per
share. Total value of unissued shares capital is MUR 575 000 000.
NB: exchange rate as at that date shows N$1.00 = MUR940
The number of shares must be rounded to the whole number.
Property, Plant and Equipment are depreciated using the straight-line method:
Intangible assets are not depreciated.
Non- current assets
Warehouse block
Motor Vehicle
Trademark
Woodwork Machinery
Office furniture
Date acquired
1 August 2020
30 September 2020
31 March 2021
1 February 2021
30 April 2020
Residual value
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N$ 20 000
N$ 15 000
N$ 10 000
N$ 18 000
Useful life
20 years
5 years
5 years
5 years
5 years
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Required:
1. Name and Explain any Three Advantages of Computerised Accounting.
(Make sure you are provided with the answer sheet for this Question)
2. You are required to process opening balances of Timber (Pty) Ltd accounts, including
accumulated depreciation for all non-current assets, as at 1st June 2021 {Period one).
Assume all the above accounts have a normal balance for that element.
3. Update all batches and move on to the next question.
YOU ARE NOT REQUIRED TO PRINT ANY REPORT AT THIS STAGE
Question 2
1 Supplier Processing
{20 Marks)
The business bought and processed all the inventory items from all the suppliers as
follows:
1.1 Wood cc - Bought 8 wooden shelves & 9 executive chairs. 5% trade discount received
on wooden Shelves.
1.2 Furniture cc - Bought 22 varnished tables & 6 executive chairs. invoice cash
discount of 2.5% received.
1.3 Fitting cc - Returned 6 damaged wooden shelves.
2 Customer Processing
2.1 Hope
2.2 Faith
2.3 Hope
2.4 Faith
- Sold 12 varnished tables, 3 executive chairs & 4 wooden Shelves,
1.5% invoice cash discount granted.
- Sold 2 executive chairs & 2 wooden shelves.
- Returned 3 damaged varnished tables and which was eventually
returned to the supplier immediately due to a manufacture defect.
- Sold an executive chair and a wooden shelf.
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Some clients requested their furniture to be varnished. Twenty-three different furniture
items were varnished at a rate of N$40 per hour and it took 18 min per item and received
cash.
Required:
Process the above transactions in period 2, July 2021, update all batches and move on to
the next question.
YOU ARE NOT REQUIRED TO PRINT ANY REPORT AT THIS STAGE
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Question 3
(50 Marks)
The following transaction have not yet been processed.
1. Debenture worth, N$45 850, was purchased on 1 January 2022 from Trustco Namibia.
The interest rate is 8.5% per annum.
2. Received N$8 000 from a debtor: Eros Primary School (ER04)whose account had been
written off as irrecoverable.
3. Timber (Pty) Ltd sublet part of its basement parking area to Easy Car Wash, with a
rental income of N$4 000 per month receivable on the pt of each month. Rent for the
current year has not been received.
4. One of the company's loyal customer, Faith was declared as insolvent on 1st of August
2020, the company managed to receive a Photo copier valued at N$ 13 740 (useful life
of 5 years) from the debtor's assets and the remaining balance was expensed.
5. A vehicle worth N$69 000, VAT inclusive was purchased on pt Oct 2021 on credit from
lndongo Toyota (INDOOl).No entries in respect of this vehicle, have been considered.
6. A sales invoice to Toivo Enterprises with a value of N$8 500 was not recorded in the
books of Timber (Pty) Ltd
7. Interest on the bank overdraft amounted to N$105, not yet paid.
8. Cash drawings by Mrs Verony N$2 170 were treated as cash purchase in error.
9. A payment of N$2 350 to a supplier Furniture cc was incorrectly processed on supplier
Fitting cc's account.
10. The board Chairman was given inventory at the sales value of N$25 000.00 as part of
his remuneration. All inventory items sold based on a 20% mark-up.
11. Inventory with a sales value of N$10 000.00 was used for end of year staff party.
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12. The company auditors discovered an amount of N$15 400 for audit fees incorrectly
debited to discount received account.
13. The Receiver of Revenue determined the company income tax for the year was N$48
000, payable next month.
14. The allowance for irrecoverable debts was set at N$15 000 at year-end.
15. Provide the necessary adjustment for interest on financial assets and financial
liabilities in the financial period and depreciation on all non-current assets at year-
end.
Required: Process the above transactions in period 12, May 2021, update all batches
and print out the following reports:
1. A detailed ledger for Timber Stores (Pty) Ltd.
(View - General ledger - Transaction - Detailed ledger)
• Period 1 - period 12
2. Print out the following detailed ledgers.
• Customers: View - Customers - Detailed ledger - By customer
• Suppliers: View - Suppliers - Detailed ledger - By supplier
• Period: 1- Period 12
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of FinalAssessment-------------------------
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