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BAC1100-BUSINESS ACCOUNTING-2ND OPP-JULY 2022 |
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nAm I BIA un IVERS ITY
OF SCIEnCE Ano TECHnOLOGY
FACULTYOF COMMERCE, HUMAN SCIENCESAND EDUCATION
DEPARTMENTOF ACCOUNTING, ECONOMICSAND FINANCE
QUALIFICATION:VARIOUS PROGRAMMES
QUALIFICATION CODE: VARIOUS
LEVEL:5
COURSECODE: BACll00
COURSENAME: BUSINESSACCOUNTING 1A
SESSION:JULY 2022
DURATION: 3 HOURS
PAPER:THEORYAND CALCULATIONS
MARKS: 100
SECONDOPPORTUNITYEXAMINATION QUESTIONPAPER
EXAMINERS
Kangala, H., Neliwa, N., Hainghumbi, H., Sheehama, K.G.H., Namwandi, H.
and Odada, L.
MODERATOR Andrew, Y
INSTRUCTIONS
• Answer ALLthe questions in blue or black ink only. STRICTLYNO PENCIL
• Start each question on a new page, number the answers correctly and clearly.
• Show all your workings/calculations and round off only final answers to two decimal
places
• 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 and any assumptions made by the candidate should be
clearly stated.
PERMISSIBLEMATERIALS
• Silent, non-programmable calculators
THIS QUESTION PAPERCONSISTSOF _6_ PAGES{Excluding this front page)
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QUESTION 1
[20 MARKS]
During the month of February 2017, the following transactions took place:
1 The owner contributed a delivery van for R80 000 to the business as his capital contribution.
2 The business was granted a loan from the Savings Bank for R50 000.
3 Purchased trading inventory for R22 000 on credit from XYZSuppliers.
4 Sold stock for R1 800 to credit customers. The cost price is R1 440.
5 Paid RS000 to XYZSuppliers.
Required:
Record the above transactions on the accounting equation. Thefirst one has been done for you as
an example
No
ASSETS=
I I I Bank Vehicles
Debtors
Inventory
1
I +80 000 I
I
OWNERS EQUITY+
I Capital Income/Expenses
+80 oooI
LIABILITIES
I Creditors Loan
I
QUESTION 2
[20 MARKS]
The following summarized balance sheets and income statements have been obtained for analysis.
Balance sheet as at 30 June 2022
Assets
Non-current assets- Net plant and equipment
Current assets
Inventory
Accounts receivable
Cash
Total current assets
Total assets
2022
N$'000
19167
4 906
2 510
906
8 322
27489
2021
N$'000
15164
4 608
2 405
815
7 828
22 992
Equity and liabilities
Share capital
Retained profit
Total equity
Non-current liabilities - Long-term borrowings
Current liabilities
Trade and other payables
Short-term borrowings
Total current liabilities
Total equity and liabilities
10000
10 209
20209
4960
1480
840
2 320
27489
10000
6 367
16 367
4 817
1088
720
1808
22 992
Income statement for the year ended 30 June 2022
2022
N$'000
2021
N$'000
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Sales
Cost of sales
Depreciation
Profit Before Interest and Tax
Interest paid
Net profit before tax
Taxes
Net profit after tax
Dividends
Additions to retained profits
33 500
18 970
1980
12 550
486
12 064
4 222
7 842
4000
3 842
2
29150
16 290
1650
11210
463
10 747
3 761
6 986
4000
2 986
REQUIRED
Calculate the following ratios for 2019 and 2020. Use a 365-day year.
a) Current ratio
b) Quick/Acid Test ratio
c) Debtors' collection period
d) Creditors settlement period
e) Gross Profit Margin
TOTAL MARKS
MARKS
4
4
4
4
4
20
QUESTION 3
[15 MARKS]
The following list of account balances was taken from the records of Sitapata Store Traders as at 28
February 2022.
N$
Drawings
2 647
Capital
49 000
Loan- Nedbank
9 000
Furniture @cost price
14600
Accumulated depreciation on furniture
2 680
Motor vehicles @cost price
34500
Accumulated depreciation on motor vehicle
7 360
Accounts receivables
6435
Provision for bad debts
290
Inventory (1 March 2019)
20 230
Bank (Dr)
18907
Sales
102 359
Sales returns
3 624
Purchases
49 085
Freight on purchases
6485
Packaging material
1894
Bad debts
214
Salaries
7 555
Rent expense
3 619
Telephone
894
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Additional information not yet taken into account:
a) According to the inventory count records, the inventory on hand amounts to N$18 320 and
packaging material N$762 on 28 February.
b) The owner paid-in advance N$300 on the telephone account for the next month as he was
going to be out of town.
c) The owner took inventory amounting to N$345 for his own use.
d) An account for freight amounting to N$175 was received late and not yet paid at year end.
e) Depreciation must be provided at 10% for furniture and 15% for motor vehicles using
straight line method for both asset groups.
f) A debtor with an outstanding debt of N$95 must be written off.
g) Net profit for the current financial period is N$21 581.
Required:
Prepare the statement of financial position of Sitapata Store Traders as at 28 February 2022
QUESTION4
[30 MARKS]
On 1 February 2022, H Carter commenced business as an estate agency, known as HCAgency. During
February, he concludes the following transactions:
1. Carter transfers office equipment that he owns and that is valued at N$1 000, to the business.
2. Carter invests N$5 000 by cheque in the business. On the same day, the business invests N$1
200 in a fixed deposit account.
3. The agency pays rental of N$1 200 by cheque for the office premises from where it operates.
4. Purchase stationery from Durban Printers for N$700 on credit.
5. Complete a transaction for a client and receives a commission of N$3 500 by cheque for the
service.
6. Pay salaries and wages by cheque N$900.
7. Complete a transaction for Azed Builders on account and invoice them for commission of N$1
500.
8. H Carter withdraws N$S00 for his own use.
9. Azed Builders made a payment of N$800 on the outstanding account.
10. Paid the account of Durban Printer in full and received a discount of 10%.
Required:
Recordthe above transactions in the general ledger of HCAgency in the form of a T-account; balance-
off all the accounts as at 28 February 2022.
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QUESTION 5
[15 MARKS]
Forquestions 1 -15, just write the answer only (the correct letter chosen) in your answer sheet. Do
not copy the full answer
1. Posting the cash book transactions in bookkeeping means:
a) Making the first entry of double entry transaction
b) Entering items in a cash book
c) Entering amounts from the cash book into ledger account
d) None of the above
2. Sales Invoices are first entered in which book of first entry:
a) The Cash Book
b) The Purchases Journal
c) The Sales Account
d) The Salesjournal
3. The source document used for banking money into a bank account is:
a) A Cheque book
b) A deposit slip
c) A cash book
d) A general ledger.
4. A .......... is a document issued by a commercial bank to its customers, showing all the
transactions that have taken place on the customer's account during a particular period.
a) Bank Statement
b) Credit Note
c) Mortgage Letter
d) Invoice
5. Given a purchase invoice showing 5 items of N$ 80 each, less trade discount of 25 % and cash
discount of 5 %, if paid within the credit period, how much will the customer pay?
a) N$ 285
b) N$ 280
c) N$ 260
d) N$300
6. Where will credit notes issued by the selling entity be recorded in the selling entities books?
a) Sales Account
b) Returns inward Account
c) Sales Returns Journal
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d) Returns outwards Journal
7. A summary of all transactions to individual accounts can be found in the:
a) General Ledger
b) Nominal Ledger
c) Creditors Ledger
d) Debtors Ledger
8. The ....... is a document that is used as an acknowledgement of receipt of cash by an entity.
a) Credit note
b) Cash Invoice
c) Purchases invoice
d) Cash Receipt
9. The ......... is a process or sequence in which accounting information is recorded and processed
from the time a transaction takes places to the time that the financial statements are
prepared.
a) Accounting Equation
b) Accounting Cycle
c) General Ledger
d) Adjusting Entries
10. The Accounting Cycle begins with the .............
a) Books of original entry
b) Transactions
c) Records
d) Entries
11. The fundamental Accounting Assumptions are:
a) Going concern, conservation, Accrual
b) Going concern, materiality, consistency
c) Going concern, Accrual, consistency
d) Going concern, entity, periodicity.
12. What does double entry bookkeeping mean?
a) Keeping the basic record of business transactions
b) Providing this record to the business management
c) The process of recording data relating to accounting transactions in the accounting
books
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d) A system where each transaction is entered twice, once on the debit side and once
on the credit side.
13. The basic purpose of preparing a trial balance is:
a) to find out profit of the business
b) to show financial position of the business
c) to test arithmetical accuracy of the ledger
d) to calculate net purchases of the business
14. A trial balance after considering the effect of adjusting entries is known as:
a) Financial trial balance
b) Adjusted trial balance
c) Unadjusted trial balance
d) Normal trial balance
15. Which of the following errors will not be detected by trial balance?
a) Debit part is overstated but credit part is correctly recorded
b) Debit part is correctly recorded but credit part is overstated
c) Both debit and credit parts are overstated by the same amount
d) Debit part is correctly recorded but credit part is understated
END OF EXAMINATION QUESTION PAPER
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