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CAC710S- COMPUTERISED ACCOUNTING 301- 1ST OPP- NOV 2023 |
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nAmlBIA unlVERSITY
OF SCIEnCE Ano TECHnOLOGY
FACULTY OF COMMERCE, HUMAN SCIENCES AND EDUCATION
DEPARTMENT: ECONOMICS, ACCOUNTING AND FINANCE
QUALIFICATION: Bachelor of Accounting/ Bachelor of Accounting Chartered
QUALIFICATION CODE: 07BOAC/07BACC
LEVEL: 7
COURSE: Computerised Accounting 301
COURSE CODE: CAC71 OS
DATE:November2023
SESSION: Practical
DURATION: 3 Hours
MARKS: 100
FIRST OPPORTUNITY EXAMINATION QUESTION PAPER
EXAMINER(S) E Kangootui, Y Elago & H Namwandi
MODERATOR: E. Milijala
INSTRUCTIONS
1. This exam paper is consists of one question.
2. Make sure that your student number appears on all reports. (Computer
printouts)
3. It is student's responsibility to ensure that all reports are handed in directly to
the invigilators.
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 places
f'\\
THIS QUESTION PAPE~ CONSISTS OF _7_ PAGES (Excluding this front page)
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You received the following e-mail:
From:
To:
Date:
jthamba@QoQ.com.na
accountant@QoQ.com.na
1st September 2022
Subject: Transactions Processing
Dear Accountant
I hope this e-mail finds you well. Kindly allow me to convey my gratitude on your recent
appointment as the accountant. We are truly delighted to have you. Congratulations!
Without wasting time, I am happy to assign to you your first task, using your
computerised accounting knowledge.
Create a new company on the "C" drive, using the following information.
Company Name
Financial Year
Processing Method
Printing
Tax Processing
: Student Number
:1st September 2022 to 31st August 2023
:Balance Forward
:Plain Paper
: 15 % VAT Standard (exclusive)
Mr.Thamba started this business few years back in Karibib, called Quality over
Quantity (QoQ) (Pty) Ltd, which provide professional accounting services. All Non-
Current assets value is based on 1st September 2020 invoices at the business
inception date.
He also opened a current account at Bank Windhoek, and the bank account no. is
0527903514, the balance at the beginning of the year is $120 300. He has a $500
000-overdraft facility arrangement with his bank. He also has a Petty cash box, which
will be assigned to you, with the imprest amount of $10 000.
I have prepared and attached the following documents that you need to critically
evaluate and process them accordingly:
ANNEXURE A.
ANNEXURE 8.
ANNEXURE C.
ANNEXURE D.
May you please submit the required in Annexure D, management to make informed
decision of our business, within the next 3 hours. Thanking you in advance for your
hard work.
Best wishes
Prof Good Faith
Finance director
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ANNEXURE A.
(35 marks)
Quality over Quantity (Pty) Ltd list of account balances as of 31st August 2022
Ordinary share capital (5 500 000 share)
4% Preference share capital (2 000 000 shares)
Retained earnings - 1 September 2022
Accounts payable
Accounts receivables
Sales
Cost of sales
Income from subsidiary
Computer Equipment
Vehicles
Office Equipment
Furniture & Fittings
Finance cost
Accumulated depreciation
Share issue costs - ordinary shares
Unpaid Income
Allowance for irrecoverable debts
Unpaid Income tax expense
Cash Float
5% Lonq term loan
6.5% Debenture purchased
Telephone
Salaries and waqes
Water and electricity
Notes
1
1
2
3
4
Dr (N$)
70 000
13 246 285
1825450
120 300
950 200
863 550
477 205
1 855 350
842 369
1 395 020
102 500
250 000
110 000
160 545
170 400
Cr (N$)
110 000 000
30 000 000
10 500 000
60 000
20 378 900
1632500
2 877 225
58 905
500 000
Notes:
1. Accounts payable
Obakeng Motor Group (OMG100)
XYZ Stationers (XYZ200)
Office World (OFF300)
Accounts receivable
MPHO (MPH100)
Denges (DEN200)
N$
60 000
25 600 Dr
18 100 Dr
?????
70 000
?????
84 500 Cr
2. Income from subsidiary:
Dividends
Management fees
1 257 500
375 000
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3. Finance costs:
Finance costs on bank loan
Finance costs on overdraft
447 000
30 205
4. Profit before tax:
Profit before tax is shown after, amongst others the following items, which are additional
to the income and expenses presented as separate line items, had been taken into
account:
N$
Income:
Insurance claim proceeds on stolen PPE item
288 500
Expenses:
Depreciation - Computer Equipment
1 436 613
Depreciation - Vehicles
71 930
Depreciation - Office Equipment
719 306
Depreciation - Furniture
649 376
Rent expense
520 000
Additional Information
All non-current assets were bought at inception date, with a residual value equal to
10% of cost and brought into use immediately. The company use the cost model and
depreciate assets using the reducing balance method.
DESCRIPTION
GL CODE
REPORT
CATEGORY
FINANCIAL
CATEGORY
4%
Non-Redeemable
Preference Shares
5130/000
Balance Sheet
Share Capital
General Reserves
5120/000
Balance Sheet
Share Capital
Share Issue Cost
5110/000
Balance Sheet
Share Capital
You are required to create the following general ledger accounts before processing
the opening balances listed above in ANNEXURE A
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ANNEXURE B.
(20 Marks)
Quantity over Quality received and issued the following invoices during period two
October 2022.
Service price list
Service items
Risk & Assurance
Taxation
Management
Bookkeeping
Code
RIS100
TAX100
MAN100
BOO100
Rate per hour (N$)
625
145
465
310
Obakeng Motors Group (OMG100) INVOICE No. 1025
P. 0. Box 96437
Date: 1 October 2022
Windhoek
Tell: 061 - 400 125
TO: Quality over Quality
Physical address:
P. 0. Box 234
No. 125 Shop Centre
Windhoek
Strom Street
Tell: 061 250 340
Quantity Description
Discount Unit Price (N$) Total
2
Ford Ranger 4WD
10
310 000
???
SUBTOTAL
???
VAT@15%
???
TOTAL DUE
???
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.I
XYZ STATIONERS (XYZ200)
INVOICE No. 254
P. 0. Box 564
Date: 9 October 2022
Windhoek
Tell: 061 - 300 123
TO: Quality over Quality
Physical address:
P. 0. Box 234
No. 125 Shop Centre
Windhoek
Strom Street
Tell: 061 250 340
Quantity Description
Discount Unit Price (N$) Total
10
Big pen (black)
2
5.85
???
2
Calculator
0.5
450
???
3
Printer Cartridges
2.5
2 500
???
Items more than N$2 000 are capitalised
SUBTOTAL
???
VAT@15%
???
TOTAL DUE ???
Quality over Quality
P. 0. Box 234
Windhoek
TO: MPHO (MPH100)
P. 0. Box 233
Tel: 061 203 205
Quantity Description
325 min Management
435 min Risk & Assurance
555 min Bookkeeping
Physical address:
No. 125 Shop Centre
Strom Street
INVOICE No. 1025
Date: 11 October 2022
Discount Unit Price (N$) Total
1
???
???
2
???
???
3
???
???
SUBTOTAL
???
VAT@15%
???
TOTAL DUE
???
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ANNEXURE C.
(45 Marks)
Mr. Thamba provided you with the following year - end adjustments which are not
yet recorded, and they should be process in period 12.
1) Authorized shares:
According to the memorandum of incorporation, Quality over Quantity (Pty) Ltd has an
authorised share capital of 10 000 000 ordinary shares and 3 500 000 4% preference
shares.
Issued shares:
Beginning balance and details on shares from prior year as of 1st September 2022, the
number of issued shares are 5 500 000 ordinary shares and 2 000 000 preference
shares respectively. On 1st June 2023 an additional 1 000 000 ordinary shares were
issued for R25 per share and this was not accounted for. The offer closed on 15 July
2023 and all the shares were paid and subscribed for. The shares were allotted on 1st
August 2023. Share issue costs of R230 000 (incl. VAT) were incurred for the ordinary
shares and paid for.
2) After complying with all the requirements of the Companies Act of 2008, the
directors declared an ordinary dividend of 7c per share on 31st August 2023.
3) Total amount for water & electricity paid during the year-end was from 1 Sept
2022 to 30 June 2023.
4) According to the lease agreement signed between Quality over Quantity and
Ducay Property, rental fee per month is N$ 40 000.
5) A review of the accounts receivables indicates that accounts receivable of R178
500 pertaining to Vanish Ltd will not be recovered as the company is not
traceable. The financial director has authorized the write off this receivable.
Furthermore, a detailed review of the remaining accounts receivables indicates
that the allowance for doubtful debts should be increased to R95 800.
6) On the 1stof June 2023 one of the company's Ford Ranger 4WD was involved
in an accident. The bakkie was traded in and replaced by a new Toyota bakkie,
with a cost of N$ 92 500 (useful life of 1O years) by one of the company
suppliers Obakeng. The trade in amount was agreed to be N$ 33 000, While
the remaining balance was agreed to be paid on account starting next year.
7) Stationery count at year end revealed theft worth of $250 which should be
written off.
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8) The company purchased Case Ware software application with a life span of 10
years from Chengeta (Ch?00) on the 31st April 2023 on account. It was
delivered on the same day at the firm premises incurring $800 for transport.
Quality over Quantity received an invoice from Chengeta totalling N$ 25 340
which is made up of the following items:
i. Actual invoice amount for the software is N$22 500.
ii. Installation cost done at the firm premises is N$1 300.
iii. Training cost to the employee N$750.
iv. Lunch provided during training N$ 790.
9) Income tax for the year was determined to be N$50 640 by the receiver of
revenue, payable in the next month.
10)The company auditors discover an amount of N$ 21 200 for accounting
expenses incorrectly entered on the credit side of the customers allowance
account.
11) Non-current assets are depreciated on 15 % reducing balance method. Provide
depreciation on all non-current assets owned by the company at year and
account for interest on financial instruments for the year. Intangible assets are
not depreciated.
ANNEXURE D.
Requirements
1. You are required to process the opening balances under Annexure A. for the
various accounts including accumulated depreciation for non - current
assets on 1st September 2022 (Period one)
2. Process customers and supplier documents under Annexure B. (Period two)
3. Process the year -end adjustments under Annexure C. (Period twelve)
4. Update all batches, print out the following reports:
A Detailed ledger:
(View - General ledger - Transaction - Detailed ledger)
• Period 1 - period 12
B. Customer & Supplier detailed ledger:
• Customers: View - Customers - Detailed ledger - By customer
• Suppliers: View - Suppliers - Detailed ledger - By supplier
• Period: 1 - Period 12
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of Examination----------------------------
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