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CAC710S-COMPUTERIZED ACCOUNTING-2ND OPP-JULY 2022 |
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nAmlBIA UnlVERSITY
OF SCIEn CE Ano TECHn OLOGY
FACULTY OF COMMERCE, HUMAN SCIENCESAND EDUCATION
DEPARTMENT: ACCOUNTING, ECONOMICS AND FINANCE
QUALIFICATION : Bachelor of Accounting/ Bachelor of Accounting (Chartered Accountancy)
QUALIFICATION CODE: 07BOAC/07BACC
LEVEL: 7
COURSE: Computerised Accounting 301
COURSE CODE: CAC710S
DATE: July 2022
SESSION: Morning
DURATION: 3 Hours
MARKS: 100
EXAMINER(S)
MODERATOR:
SECOND OPPORTUNITY EXAMINATION QUESTION PAPER
Y. Elago and E. Kangootui
E. Milijala
THIS QUESTION PAPER CONSISTS OF 6 PAGES
(Excluding this front page)
INSTRUCTIONS
1. This assessment paper is made up of three questions which are related.
2. Read the whole question paper before you start.
3. Make sure that your student number appears on the reports. (Computer
printout).
4. It is your responsibility to see that all the reports are handed in.
5. Use of internet or any communication devices during the assessment is prohibited.
6. Questions relating to this paper may be raised within the first 30 minutes of the
assessment. Thereafter, candidates must use their initiative to deal with any
perceived errors or ambiguities and any assumption made by the candidate should
be written and submitted together with the reports.
7. Round off all calculated amounts to two decimal places.
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QUESTION 1
(25 Marks)
Background Information:
You are hired as the financial accountant of Quickest Service (Pty) Ltd which the family
established it a year ago. Their main business is selling various accessories. The company uses
a periodic inventory system, a VAT registered vendor and process its amounts exclusive of
15% VAT, unless otherwise stated. Its records are based on an integrated method and it does
not process the following documents; quotations, sales orders, purchase orders and goods
received notes. Its financial year starts on 1st January, bank with Bank WHK and keeps a petty
cash account with an imprest amount of N$3 000. It use the balance forward processing
method and prints its documents on plain single paper. All non-current assets were bought at
inception date and brought into use immediately, unless otherwise stated. The company uses
the cost model to account for property, plant and equipment.
The directors of the firm requested you to capture opening balances for the company's current
financial period that begins on 1st Jan 2021.
The following is a trial balance which was taken from the books of Quickest Service (Pty) Ltd
as at 31st Dec 2020
Ordinary share capital (nominal)
Motor vehicles at cost
Equipment at cost
Fixed deposit: ABSA Bank Ltd
Inventory: Merchandise
Accounts receivables control (see note 1)
Bank
Petty cash
Cash float
Accounts payables control (see note 2)
Long-term borrowings: Bean Ltd
Allowance for credit losses (provisions for bad debts)
Credit losses (bad debts)
Packaging materials
Advertisements
Rent income
Settlement discount received
Interest on investment
Credit losses recovered
Accumulated Profits or Losses
Balance {N$}'000
165.8
50
11
50
9.8
5.2
6.9
2.8
0.9
9.55
25
0.30
0.55
4.7
2
15.6
0.65
5
0.12
???
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Notes:
1. Accounts Receivable Balance
Account Holder
All Cars CC
Account Number
CAR00l
Amount (N$)'000
1.32
Mr Mills
Mountain Motors CC
UNESCO
Mr. Pohanda Haufiku
MIL00l
MOU00l
UNEl000
POHl00
?
0.78
2.1
(0.25)
2. Accounts payable
Name
Assegaai Chemicals
Barco Limited
Cleaning Supplier CC
WAM Cleaning Equipment
Account Number
ASS00l
BAR00l
CLEO0l
WAM00l
Amount (N$)'OOO
2.55
1.1
6
?
3. Property consists of a piece of land and a building.
• The original cost of the land was N$200 000 while the building was built N$190 500
and was ready for use on 1 Jan 2020. Building is subjected to a depreciation charge of
ten percent per annum.
• The environmental regulations of the City of Windhoek require that the business be
dismantled after ten years. It is estimated that this will cost the company an amount
of N$30 000. The discount rate applicable is 10%.
Required:
Capture opening balances for Quickest Service (Pty) Ltd, including accumulated
depreciation for non-current assets as at 1 Jan 2021 (Period one).
Update all batches, no report to be printed at this stage!!!
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QUESTION 2
Period 2 Transactions
(25 Marks)
Create the following Inventory items:
Code
BUC00l
COS00l
CAR00l
POLO0l
CHA00l
DAS00l
ENG00l
TYR00l
BRU00l
Item
Bucket
Car Cosmetic Kit
Car Shampoo
Car Polish Kit
Chamois & Car Wash
Dashboard Shine
Engine degreaser
Tyre Shine
Scrubbing Brush
Cost Price (N$)
60
45
180
300
40
400
200
90
120
The pricing policy of the company is to achieve a twenty percent mark-up on all inventory
items.
The following transactions took place during Feb 2021:
1. Invoice number 103 received from Assegaai Chemicals for 8 x Car Polish Kits. Price
per unit, N$400.
5. Bought from Barco Limited 20 x Buckets for N$80 each, Invoice number BL09
8. Receive invoice number W89 from WAM for the following:
100 x Scrubbing brushes @ N$120 each;
100 x Tyre Shine @ N$90 each;
90 x Car Cosmetic Kits @ N$45 each; and
A 5% discount applies to all the items.
12. Bought from Cleaning Supplies a Vacuum Cleaner for a price of N$3 000
Invoice number CS890 was received.
15. Receive invoice WAM 678 from WAM for:
10 x Engine degreaser@ N$200 each;
10 x Car Shampoo @ N$180 each;
10 x Chamois & Car wash @ N$40 each;
10 x Dashboard Shine@ N$400 each; and
A 2.5% discount applies to Car shampoo.
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The following transactions also took place during Feb 2021:
2. Send an invoice to All Cars CCfor four Car Polish Kits
9. Sold on cash the following items:
10 x Scrubbing brushes @N$200 each; and
10 x Tyre Shine @ N$190 each.
10. Sold the following to Mr Mills
5 x Engine degreaser allowing a discount of 3.5% and 4 x Car Shampoo
20. The buckets bought from Barco Ltd were damaged. These were returned to the supplier
the same day and receive a Debit note INV400
21. Two bottles containing Car Shampoo bought from WAM were leaking. They were
returned and receive doc number 456
25. Three of the Tyre Shine which were sold were returned.
27. Two of the Engine degreaser was returned to the business and we eventually returned
them to the supplier.
Required:
Create inventory items, process suppliers and customers' transactions accordingly for the
month of Feb 2021.
Update all batches1 no report to be printed at this stage!!!
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Question 3
(SO Marks)
The following year-end adjustments must still be taken into account:
(a) Packaging material on hand at 31 December 2021, N$980.
(b) The long-term borrowing was entered into on 1 October 2019. According to the agreement,
interest will be payable bi-annually at a rate of 18% per annum.
(c) Advertisements include an amount of N$400 paid for January 2022.
(d) Rent income includes an amount in respect of January 2022. No increase in rental fee for the
past 2 years.
(e) Interest on the fixed deposit has not yet been received for the last two months of the financial
year. Interest is calculated at a rate of 12% per annum. The deposit is classified as long-term
financial asset.
(f) Insurance includes an amount of N$750 paid for the period 31 December 2021 to 31 January
2022.
(g) The telephone account of N$165 for December 2021 was not yet paid.
(h) Depreciation must be provided for as follows:
• Vehicles: 20% per annum on the diminished balance.
• Plant: 25% per annum on cost with no residual value.
• Equipment: 10% per annum on the diminished balance.
Equipment with a cost of N$2 000 was purchased on 1 July 2021
(i) Quickest Service (Pty) Ltd acquired a plant for N$100 000 on 1 January 2021 and transferred
the payment immediately. Quickest Service (Pty) Ltd has a legal obligation to dismantle the
plant at the end of its 4 year useful life. The dismantling will cost N$20 000.The current
average cost of capital is 9.5%. No entries were recorded in the books.
(j) The account of Loose-Ends Ltd, a debtor owing the entity N$2000, must be written off as
irrecoverable.
(k) It was determined that the allowance of credit losses account should amount to N$250 at 31
December 2021.
(I) Income tax for the year is estimated to be N$30 000.
(m)Settlement discount granted and received are set off against revenue and cost of sales
respectively.
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Required:
Processthe above transactions in period 12, update all batches, and print out the following
reports:
1. A detailed ledger of Quickest Service (Pty) Ltd for the year ended 31st Dec 2021
{View - General ledger - Transaction - Detailed ledger)
• Account start 1000 -Account end 9990
• Sub account start 000 - Sub account end 999
• Period 1- period 12
2. Suppliers and customer's detailed ledgers.
• Customers: View - Customers - Detailed ledger - By customers
• Suppliers: View - Suppliers - Detailed ledger - By suppliers
• Period: 1- Period 12
====================End of 2nd Opportunity Examination==============
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