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IHA512S-INTRO TO HOSP TOURISM ACCOUNTING-1ST OPP-JUNE 2022 |
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nAmlBIA UnlVERSITY
OF SCIEnCE Ano TECHnOLOGY
FACULTYOF COMMERCEH, UMANSCIENCESAND EDUCATION
ACCOUNTING, ECONOMICS AND FINANCE
QUALIFICATION CODE: 07BHOM & 07BOTM
COURSE CODE: IHA521S
DATE: JUNE 2022
LEVEL: 6
COURSE NAME: INTRODUCTION TO
HOSPITALITY& TOURISM ACCOUNTING
MODE: FULL TIME
DURATION: 3 HOURS
MARKS: 100
EXAMINER
MODERATOR
FIRST OPPORTUNITY EXAMINATION PAPER (REPLACEMENT}
K.G.H. Sheehama
L. Odada
INSTRUCTIONS
l. Answer ALL the questions.
2. Write clearly and neatly.
3. Number the answers clearly.
PERMISSIBLE MATERIALS
l. Examination paper
2. Examination script
THIS QUESTION PAPER CONSISTS OF 7 PAGES (INCLUDING THIS FRONT PAGE)
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QUESTION 1
[SOMARKS]
For question 1 (1-25), write ONLY the letter that, in your opinion, represents the correct
answer in your answer sheet/book provided and not on the question paper.
1. Bob purchases goods from a supplier which cost N$20 000. He gets a cash discount of
10%. What is the amount that Bob will pay to a supplier?
A N$20 000
B. N$18 000
C. N$19 000
D. N$10 000
2. Bob purchases goods from a supplier which cost N$20 000. The supplier gives a cash
discount of 5%. What is the amount of discount Bob should be allowed?
A. N$3 000
B. N$2 000
C. N$5 000
D. N$1000
3. When an owner contributes an asset into the business, it is called .....
A. Drawings
B. Income
C. Owner's equity
D. Sales
4. If opening inventory is N$120 000, cost of goods purchased is N$380 000, and
closing inventory is N$100 000, what is cost of goods sold under a periodic system?
A. N$500 000
B. N$400 000
C. N$450 000
D. N$550 000
5. Goods were purchased from James. He was immediately paid by electronic funds transfer.
Which account is credited?
A. Sales a/c
B. James a/c
C. Bank a/c
D. Purchases a/c
6. Goods were purchased from James. He was immediately paid by electronic funds
transfer. Which account is debited?
A. Purchases a/c
B. Jack a/c
C. Bank a/c
D. Sales a/c
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7. Which of the following transactions is recorded in the cash payment journal?
A. receipt of customer payments
B. purchases of equipment for cash
C. borrowing money from a bank
D. sale of equipment for cash
8. The following financial statement encompasses drawings, owner's equity, liabilities and
assets.
A. Statement of financial position
B. Statement of cashflow
C. Statement of profit or loss
D. Statement of information
9. Which of the following is not considered as a financial statement?
A. Statement offinancial position
B. Statement of cashflow
C. Statement of profit or loss
D. Statement of trial balance
10. Which financial statement reports the performance of a business?
A. Statement of fin anciaI position
B. Statement of profit or loss
C. Statement of changes in owner's equity
D. Statement of information
The following applies to questions 11 to 13
Vuyo Ltd statement of financial position at 31 May 2017
Current assets:
474 000
Inventory
79 000
Account receivables
395 000
Non-current assets (net book value)
491000
Total assets
965 000
Current liabilities (account payables)
395 000
Owner's equity
475 000
Net profit
95 000
Total Liabilities and capital
965 000
11. Return on owner's equity ratio is...........
A. 30%
B. 25%
C. 15%
D. 20%
12. Current ratio is.....
A. 1.2
B. 1.5
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C. 1.1
D. 1.4
13. Quick/acid test ratio is.....
A. 1
B. 2
C. 1.5
D. 2.5
14. At the end of year 2021, a business made payment of water and electricity bills of
N$20 000. How will this be recorded in the statement of profit or loss in 2021?
A. as an income
B. as an asset
C. as an accrual
D. as an expense
15. At the end of year 2021, a business borrowed N$20 000 from the bank.
How will this be recorded in the statement of financial position in 2021?
A. as an income
B. as liability
C. as an expense
D. as an asset
16. Liabilities can be described as
A. Account payables claim on total assets
B. creditorship claim on total assets
C. third parties claim on total assets less capital/owner's equity
D. government claims on total assets
17.What accounting transaction would result in the following double entry being posted?
Dr Vehicle
Cr Bank
A. The purchases of goods by EFT
B. The receipt of cash from a credit customer
C. The purchases of vehicle by EFT
D. The banking of cash
18. Gross loss will result if:
A. Operating expenses are less than net income.
B. Sales revenues are less than operating expenses.
C. Sales revenues are less than cost of goods sold.
D. Operating expenses a re greater than cost of goods sold.
19. Which of the following transactions would have no impact on owner's equity/capital?
A. Net profit
B. Bank-overdraft
C. Net loss
D. Drawings
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20. In which section of the statement of financial should prepaid expense classified?
A. current liabilities
B. investments
C. Current assets
D. expired assets
21. Difference between sales and sales returns is called:
A. net profit
B. gross profit
C. total sales
D. net sales
22. Difference between gross profit and total expenses is called:
A. net sales
B. gross profit
C. net profit
D. gross loss
23. Depreciation is......
A. an expense
B. an asset
C. an income
D. a cash
24. Failure to record the receipt of cash for goods already sold will result in:
A. an overstatement of assets
B. an understatement of assets
C. an overstatement of liabilities
D. an understatement of liabilities
25. Which of the following statements is false?
A. to increase bank, credit the account
B. to increase revenue, credit the account
C. to decrease a liability, debit the account
D. to increase a liability, credit the account
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QUESTION 2
[10 MARKS]
Insert the missing word/s in each gap marked (a) - (j) in the following table.
(Please answer on the answer sheet provided)
Journal
(a)
(c)
Purchases Journal
Sales Journal
(g)
Sales returns Journal
Petty cash Journal
Cash receipt Journal
Transaction
Receipt of money
Payment of bank charges
(e)
Goods sold on credit
Return of goods to account payables
(h)
(i)
Cash deposited by customer
Source Document
(b)
(d)
Invoice
(f)
debit notes
Credit notes
Petty cash vouchers-original
(j)
QUESTION 3
[20 MARKS]
Nandi has decided to set up her own music retail business on 1 May 2022. Here is summary
of the transactions in the first week of the business.
'22
May 1 Nandi opened a business bank account and deposited N$30 000.
2 Bought goods for resale costing N$7 200 on credit from Zuma Co.
3 Purchased a till machine for N$3 500 paying by electronic funds transfer.
4 Sold goods for N$10 000 on credit to Yonela
5 Nandi went to the bank and drew N$1 200 in cash for use in the business.
6 Yonela returned N$2 000 of goods to Nandi.
7 Nandi settled her account with Zuma Co. with debit card and was allowed a discount of 15%.
8 Yonela settled her account with debit card and she claimed a discount of 10%.
9 At the end of the week Nandi took N$400 cash from the till machine for his personal expenses.
REQUIRED:
Enter the above transactions in appropriate Nandi's ledger or 'T' accounts and balance off all
the accounts.
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QUESTION4
The trial balance of Vuyo as at 31 December 2021 is show below:
Debit Credit
N$
N$
Bad debts
210
Buildings
150 000
Depreciation (1 January 2021): Buildings
3 552
Creditors
15 000
Debtors
16 290
Capital
35 400
Drawings
9 790
Bank
2 010
Purchases
45 482
Rent
7 050
Sales
180 000
Inventory at 1 January 2021
20100
Wages and salaries
22 040
235 962 235 962
[20 MARKS]
Additional information:
1. Inventory (stock) held in the business at 31 December 2021 was valued at
N22 000.
2. At 31 December 2021 Vuyo owed N$460 rent used but not yet billed to
him.
3. At 31 December 2021there was additional specific bad debt of N$290. This
was to be written off.
4. Wages and salaries of N$2 040 was prepaid for January 2022.
5. Depreciation was charged for the year on the buildings at rate of 20% on
cost.
REQUIRED:
Prepare a statement of profit or loss of Tito for the year ending 31 December 2021.
END OF EXAMINATION QUESTIONPAPER
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