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IHA521S-INTRODUCATION TO HOSPITALITY AND TOURISM ACCOUNTING - JULY 2024 |
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nAmI BIA un IVERSITY
0 F SCIEn CE An D TECHn OLOGY
FACULTY OF COMMERCE, HUMAN SCIENCESAND EDUCATION
DEPARTMENT OF ECONOMICS, ACCOUNTING AND FINANCE
QUALIFICATION CODE: 07BHOM & 07BOTM LEVEL:6
COURSE CODE: IHA521S
COURSE NAME: INTRODUCTION TO HOSPITALITY
& TOURISM ACCOUNTING
SESSION: JULY 2024
PAPER: THEORY AND CALCULATIONS
DURATION: 3 HOURS
MARKS: 70
EXAMINER
SECOND OPPORTUNITY EXAMINATION QUESTION PAPER
Sheehama, K.G.H.
MODERATOR Odada, L.
INSTRUCTIONS
• Answer ALL four (4) questions in blue or black ink only. NO PENCIL.
• Start each question on a new page, number the answers correctly and clearly.
• Write clearly, and neatly showing all your workings/assumptions.
• Work with at least four (4) decimal places in all your calculations and only round
off only final answers to two (2) decimal places.
• Questions relating to this examination may be raised in the initial 30 minutes after
the start of the examination. Thereafter, candidates must use their initiative to deal
with any perceived errors or ambiguities and any assumptions made by the
candidate should be clearly stated.
PERMISSIBLE MATERIALS
• Silent, non-programmable calculators
THIS QUESTION PAPER CONSISTS OF _6_ PAGES (including this front page)
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QUESTION1
[10 Marks]
The following information has been extracted from the books of account of Xolisa for the
year to 31 May 2024:
Xolisa statement of profit or loss for the year to 31 May 2024.
Sales (all credit)
Less: Cost of sales
Opening inventory
Credit purchases
Closing inventory
Gross profit
Administrative expenses
Selling and advertising expenses
Net profit
250 000
(175 000)
22 500
200 000
47 500
75 000
(15 000)
(12 500)
47 500
Xolisa statement of financial position at 31 May 2024
Non - current assets (net book value)
325 000
Current assets:
Inventory (stock)
Trade receivables
Total assets
157 500
47 500
110 000
482 500
Capital
Net profit
Current Liabilities (Trade payables)
Total Liabilities and capital
285 000
47 500
150 000
482 500
REQUIRED:
Calculate the following accounting ratios and choose the letter that represents the best
answer; and write down the answer in the answer sheet provided.
1.1 Gross profit ratio is:
A. 20%
8. 30%
C. 40%
D. 50%
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1.2 Current ratio is:
A. 1
B. 1.25
C. 1.05
D. 1.15
1.3 Acid test ratio is:
A. 7.33
B. 0.73
C. 3.73
D. 0.07
1.4 Stock (inventory) turnover ratio is:
A. 3 times
B. 4 times
C. 2 times
D. 5 times
1.5 Accounts receivables/Debtors collection period ratio is:
A. 160 days
B. 106 days
C. 162 days
D. 161 days
QUESTION 2
[8 Marks]
a) Explain the term 'entity concept'
(2 mark)
b) Describe any three significant differences between financial accounting and
Management accounting.
(6 marks)
QUESTION 3
[25 Marks]
Mr Tura-Music has decided to set up her own music retail business on 1 May 2024. Here is
summary of the transactions in the first month of the business.
2024
May 1 Mr Tura-Music opened a business bank account and deposited N$30 ODO
3 Bought inventory of goods for resale costing N$7 200 on credit from Mrs Paula Co.
5 Purchased a cash register (till machine) for N$3 600 paying by electronic funds transfer (EFT).
10 Sold goods for N$10 000 on credit to Lela
20 Lela returned N$500 of goods to Shandi.
27 Mr Tura-Music settled her account with Mrs Paula Co. by electronic funds transfer (EFT);
and was allowed a discount of 15%.
28 Lela settled her account paying with debit card and she claimed a discount of 10%.
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REQUIREMENT:
a) Record the above transactions in appropriately-named ledger accounts of Mr Tura
Music. Balance the ledger accounts, showing balances carried down and brought
down at the end of the week.
(17 marks)
b) Prepare Shandi's trial balance as at end ofthe week.
(8 marks)
QUESTION 4
[27 Marks]
Henelao business has been in the business for some years. The following is the trial balance
of her wholesale clothing business as at 31 October 2023.
Debit
N$
Credit
N$
Inventory (stock) as at 1 November 2022
40000
Sales
700 000
Purchases
480 000
Miscellaneous expenses
17000
Wages and salaries
90000
Office expenses
58000
Drawings
20 600
Equipment at cost
Accumulated depreciation at 1 November 2022-
Equipment
84000
32 000
Vehicle at cost
48 000
Accumulated depreciation atl November 2022 - Vehicle
8000
Capital
170 000
Bank
9 400
Trade debtors
Trade creditors
122 000
55 000
Provision for bad and doubtful debts at 1 November 2022
4000
969 000
969 000
Additional information:
1. Inventory (stock) held in the business at 31 October 2023 is valued at N52 000.
2. At 31 October 2023 Henelao business owes N$3 000 for electricity used but not yet
billed to her.
3. At 31 October 2023 there was a specific bad debt of N$2 000. This was to be written
off.
4. At 31 October 2023 Henelao business wishes to maintain the provision for doubtful
debts equal to 5% of outstanding trade debtors balance.
5. Salaries of N$4 000 included in the wages and salaries of N$90 000 is prepaid salaries
November 2023.
6. Depreciations are to be charged for the year on the vehicle at rate of 20% on reduced
balance and on the equipment at rate of 10 % on cost
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REQUIREMENT:
a) Prepare Henelao business statement of Profit or Loss for the year ended
31 October 2023.
(16 marks)
b) Prepare statement offinancial position as at 31 October 2023 for Henelao
business.
(11 marks)
END OF EXAMINATION QUESTION PAPER
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