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IHA520S - INTRODUCTION TO HOSP AND TOURISM ACCOUNTING - 2ND OPP - JAN 2020 |
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NAMIBIA UNIVERSITY
OF SCIENCE AND TECHNOLOGY
FACULTY OF MANAGEMENT SCIENCES
DEPARTMENT OF ACCOUNTING. ECONOMICS & FINANCE
QUALIFICATIONS: BACHELOR OF HOSPITALITY, BACHELOR OF TOURISM AND
BACHELOR OF NATURE
QUALIFICATION CODE: 07BOH
LEVEL: 5
COURSE: INTRODUCTION TO HOSPITALITY AND COURSE CODE: IHA520S
TOURISM ACCOUNTING
DATE: JANUARY 2020
SESSION: THEORY + APPLICATION
DURATION: 3 HOURS
MARKS: 100
EXAMINER
2ND OPPORTUNITY EXAMINATION QUESTION PAPER
Kuhepa Tjondu
MODERATOR:
Mr. E. Mushonga
INSTRUCTIONS
_ Answer ALL questions in blue or black ink only
. Write clearly and neatly.
. Start each question on a new page and number the answers
clearly.
No programmable calculators are allowed.
Questions relating to the paper 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.
_ The names of people and businesses used throughout this exam
paper do not reflect reality and are purely coincidental.
. Show all workings!
THIS QUESTION PAPER CONSISTS OF 5 PAGES (Excluding the front page)
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Question 1
(40 marks)
You are provided with the following information for transactions that took place in the
business of Naruses Air Conditioners, a business that install, buy, and sell air conditioners.
Transactions are for December 2018:
1. Mr Kandjii, the owner, banked N$50 000 into the bank account of the business, being
additional contribution.
2. Mr Kandjii bought a vehicle that he intends using in his business, total amount for the
vehicle cost is N$28 000, he paid N$5 000 by cheque and the remaining amount was
still due to Auto House where he bought the vehicle.
3. Installed 2 air conditioner and received N$2 000 by cheque for each service done.
4. The employees of Naruses Air Conditioners were paid their monthly salaries of N$8
000 using an electronic funds transfer (EFT) directly from the business bank account.
5. Repaired a client's air conditioner and received a cheque of N$3 500.
6. Installed 5 air conditioners for a total amount of N$12 000 to Mr Kake’s house on
account.
7. Received a telephone bill from Telecom and settled it on the same day with a cheque
of N$650.
8. Mr Kandjii made a payment of N$7 000 by cheque on the outstanding account
balance of Auto house.
9. Bought four new air conditioners to be installed at a client premises next week and
paid a cheque of N$8 000.
10. One air conditioner which was bought was returned back to the supplier because it
was not working properly, this was valued at N$2 000.
Required:
a) Show the effect of the above transactions on the accounting equation. Present your
answer in the format shown below. Clearly indicate increases with a (+) and decreases with
a (-). Marks will also be awarded for identifying the name of the relevant account.
(24 mark)
Example:
Assets
Bank
1.
+ 50 000
=
Equity
Capital
=
+50 000
+
Liabilities
+
0
b) Name and explain 3 types of business entities.
c) Name and define the 5 elements of financial statements.
(6 marks)
(10 marks)
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Question 2
(60 marks)
Revolution (Pty) Ltd is a clothing retail store located in Windhoek.
You have been asked by the Financial Director of Revolution (Pty) Ltd to prepare the Statement of
Profit or Loss and the Statement of Financial Position for the 2018 financial year.
Revolution (Pty) Ltd Trial Balance as at 31 December 2018
Motor Vehicles at Cost
Accumulated depreciation: Motor Vehicles
Store equipment at Cost
Accumulated depreciation: Store equipment
Closing inventory— 31.12.2018
Trade and other receivables
Allowance for credit losses
Bank
Capital
Long term borrowings
Trade payables
Short term borrowings (Current portion of long-term borrowings)
Sales
Sales returns
Purchases
Opening inventory — 01.01.2018
Salaries and Wages
Office Rental
Credit losses
Interest expenses
Interest income
DR
N$
150,000
100,824
46,655
68,387
2,833
21,500
148,016
52,666
64,650
35,000
1,400
8,233
700,164}
CR
N$
15,000
20,165
2,888
130,480
49,308
60,000
33,024
388,077
1,222
700,164
Additional information (Assume that information below has not been accounted for unless
otherwise stated):
1. Revolution purchased two assets on 1 January 2017:
e Motor Vehicle at a cost of N$150 000
e Store equipment at a cost of N$100,824.
The company depreciates its motor vehicle at 10% p.a using the straight-line method and store
equipment at 20% p.a using the reducing balance method. The purchase of the two assets
have been accounted for, however the accountant has not passed the depreciation journals for
the current year.
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2. On1 January 2018, the bookkeeper paid an amount of N$35,000 as rental expense. Monthly
rental is N$2,500.
The accountant entered the transaction as follows:
DR —- Office Rental N$35,000
CR — Bank
N$35,000
3. The company recruited Hip Hip Advertising CC to assist with year-end promotions, Hip Hip’s
services cost the company N$8,500. This amount is yet to be settled at year end.
4. Acustomer NUST (Pty) Ltd purchased white T-Shirts from the company on 31 October 2018
in the amount of N$5,600. NUST (Pty) Ltd made an Electronic Funds Transfer (EFT) payment
of N$5,600 on the same day, Revolution (Pty) Ltd will only deliver the T-Shirts on 1 January
2019.
5. The entity did not pay 2 employees their December 2018 salaries, the employees each earn
N$6,500 per month.
Required:
(a) Prepare the adjusted trial balance of Revolution (Pty) Ltd as at 31 December 2018.
(38 marks)
(b) Prepare the Statement of Profit or Loss for the reporting period ended 31 December 2018.
(14 marks)
(c) Prepare only the Equity and Liabilities section of the Statement of Financial Position as at
31 December 2018.
(8marks)