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BAC1100S-BUSINESS ACCOUNTING 1A-2ND OPP- JULY2024 |
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n Am I BI A u n IVER s ITY
OF SCIEnCE Ano TECHn OLOGY
FACULTYOF COMMERCE, HUMAN SCIENCESAND EDUCATION
DEPARTMENT OF ECONOMICS, ACCOUNTING AND FINANCE
COURSE CODE: BACll00S
SESSION: JULY/AUGUST2024
COURSE NAME: BUSINESSACCOUNTING lA
PAPER: THEORYAND CALCULATIONS
DURATION: 2 HOURS
MARKS: 80
SECOND OPPORTUNITY EXAMINATION QUESTION PAPER
EXAMINER
MRS Z. VAN DERWALT
MODERATOR:
MRS Y.ANDREW
INSTRUCTIONS
1. Answer ALL the questions on the answer sheet
2. Read all the questions carefully before answering.
3. All questions count for one mark unless otherwise indicated
4. The examination paper consists of 52 questions
5. The use of a non-programmable calculator is allowed
6. There is only one correct option, the shading of more than one
option will be marked as incorrect
7. Make sure to shade your student number correctly
THIS QUESTION PAPER CONSISTS OF 17 PAGES (Including this front page)
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Example of a completed examination answer sheet
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Background Information
This question paper is based on a trader, "JEANS CC", with a financial year end of 30 April.
JEANS CC is registered for VAT on the invoice basis, in terms of the Namibian Valued Added
Tax Act. VAT,where applicable, is included in their prices.
JEANS CC is situated in Windhoek and sells clothing to the local market. Sales are done on
a cash basis and on credit to pre-approved customers. JEANS CC buys clothing on credit
from suppliers and, to a lesser extent, using an electronic transfer option.
Although all the questions are based on the JEANS CC's transactions, the questions, unless
otherwise stated, are unrelated. Therefore, please read the instructions for each question.
The question paper is divided into different sections; each section focuses on a specific
topic/aspect.
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General Accounting Theory (6 Marks)
1. JEANS CC's Financial Accounting information ....
a. should be incomplete in order to confuse competitors
b. Should be prepared differently for each company or business
c. Provides creditors guarantees about the future
d. Summarizes what has already occurred
e. None of the above
2. Which of the following is a fundamental characteristic of financial statements:
a. Relevance
b. Comparability
c. Timeliness
d. Verifiability
e. None of the above
3. The Prudence concepts
a. Provides that all significant information must be included in the financial
statements, while items which are not significant need not be shown
separately in the financial statement.
b. Provides that income and expenses are recognized and recorded in the
correct time period.
c. Provides that accountants should be conservative in the preparation of
financial statements and should take care not to overstate assets or income
and not to understate liabilities and expenses.
d. Is a collection of rules and procedures and guidelines for accountants to
follow when recording and reporting financial information?
e. None of the above
4. The Concept "Timeliness" means:
a. To prepare the financial statements within a month after the financial year
end.
b. To have information available to decision makers in time for them to be
capable of influencing the decisions.
c. Only items related to the financial year should be included in the financial
statements.
d. Transactions and events should be recognized in the financial period in which
they occur and not when cash or cash equivalents are received or paid.
e. None of the above
5. The enhancing qualitative characteristics of financial statements include
a. Understandability and faithful representation
b. Relevance and faithful representation
c. Relevance and timeliness
d. Comparability and understandability
e. None of the above
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6. Which of the following statements is true about the accounting equation?
a. The accounting equation represents that the sources in a business are not
equal to the resources of that business.
b. The accounting equation represents that the resources are allocated to the
business at a cost price.
c. The accounting equation represents that the sources in a business are equal
to the resources of that business.
d. The accounting shows that transactions are in balance.
e. None of the above
The Accounting Equation (10 Marks)
Question 7 - 11: You are required to select the option which explains the effect on the
accounting equation for JEANS CC. Each question counts for two marks. One mark is
awarded for partially correct answers.
7. The member of JEANS CC made a capital contribution of N$200,000, which was
deposited in the business's bank account.
a. Owners' equity will decrease by N$200,000, and assets will increase by
N$200,000
b. Owners' equity will increase by N$200,000, and assets will increase by
N$200,000
c. Owners' equity will decrease by N$200,000, and liabilities will decrease by
N$200,000
d. Assets will decrease by N$200,000, and liabilities will decrease by N$200,000.
e. None of the above options is correct.
8. JEANS CC paid their employees their monthly salaries. The payment was made
via N$70,000.
a. Owners' equity will increase by N$70,000, and assets will decrease by
N$70,000
b. Owners' equity will increase by N$70,000, and assets will increase by
N$70,000
c. Owners' equity will decrease by N$70,000, and assets will decrease by
N$70,000
d. Assets will increase by N$70,000, and liabilities will increase by N$70,000
e. None of the above options is correct.
9. JEANS CC bought clothing items on credit from a local supplier, N$14,000.
a. Liabilities will decrease by N$14,000, and assets will decrease by N$14,000
b. Liabilities will decrease by N$11,000, and assets will decrease by N$11,000
c. Assets will increase by N$10,000, and liabilities will increase by N$10,000
d. Owners' equity will decrease by N$14,000, and liabilities will increase by
N$14,000
e. None of the above options is correct.
10. JEANS CC paid the supplier, N$10,000.
a. Liabilities will decrease by N$10,000, and assets will decrease by N$10,000
b. Owners' equity will decrease by N$10,000, and liabilities will increase by
N$10,000
c. Liabilities will increase by N$10,000, and owners' equity will increase by
N$10,000
d. Assets will increase by N$10,000, and liabilities will increase by N$10,000
e. None of the above options is ~orrect.
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11. The member of JEANS CC needed cash to pay for an overseas holiday and
withdrew N$10,000 from the bank account.
a. Owners' equity will increase by N$10,000, and liabilities will decrease by
N$10,000.
b. Liabilities will decrease by N$10,000, and assets will decrease by N$10,000
c. Owners' equity will decrease by N$10,000, and assets will decrease by
N$10,000
d. Assets will increase by N$10,000, and liabilities will increase by N$10,000
e. None of the above options is correct.
Value Added Tax (9 Marks)
(These questions do not relate to JEANS CC)
12. Which one of the following is not zero-rated VAT supply?
a. Motor oil
b. Fuel purchased by a service station
c. Goods exported to Angola
d. Mahangu sales
e. None of the above.
13. Which one of the following is not a taxable VAT supply?
a. Bank Charges charged by Bank Windhoek.
b. Spur burger to a South African passport holder
c. A fishing rod bought to do some fishing in Angola
d. Renting a flat for residential purpose.
e. None of the above
14. Which one of the following forms of transport is a zero-rated taxable supply?
a. Travelling with the school bus to Katima Mulilo
b. Travelling with a bus to Zambia
c. Travelling with a shuttle to Swakopmund
d. Travelling by a car owned by a tour operator to a lodge in Tsumeb.
e. None of the above
15. Waltons sold 20 x boxes of crayons to a local school in aid of their preschool
program. The price, excluding VAT, per box of crayons is N$350. How much is
the VAT on the total purchase, and how much will the school pay for the goods?
(2 marks)
a. VAT is zero, and the total price is N$7,000.
b. VAT is N$913, and the total price is N$7,000.
c. VAT is N$1,050, and the total price is N$8,050.
d. The items are exempt from VAT
e. None of the above.
16. Mr. Farmer bought new tyres for his vehicle on 1 April 2024 and received an
invoice for N$9,000 (VAT included). He paid the invoice on 19 April 2024. On
which day will VAT be accounted for, and how much VAT will be accounted for
(2 marks)
a. 19 April 2024, N$1,350
b. 1 April 2024, N$1173.91
c. No VAT will be accounted for as credit sales are not subject to VAT
d. No VAT will be accounted for as tyres are an exempt supply.
e. None of the above
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17. Mrs Smart bought motor oil from the local service station and paid N$800,
excluding VAT. How much is the VAT on the total purchase, and the total
purchase price including VAT (2 marks)
a. Zero-rated VAT and the total price including VAT is N$800.
b. N$117 VAT, and the price excluding VAT is N$683.
c. VAT is exempted, and the price excluding VAT is N$800
d. N$120 VAT and the price including VAT is N920
e. None of the above
Source documents and journals (3 marks)
JEANS CC entered into various transactions during April 2024. You are required to
identify the correct journal (book of first entry) in which you will enter the specific
transaction, numbered questions 18-20.
18. JEANS CC purchased an office desk from Waltons and paid via EFT.
a. Cash Book
b. Sales Journal
c. Sales Returns Journal
d. Purchases Journal
e. Purchases Return Journal
19. JEANS CC bought clothing items, which they intend to resell, on credit from
CLOTHING.COM.
a. Sales Journal
b. Sales Returns Journal
c. Cash Book
d. Purchases Journal
e. Purchases Return Journal
20. JEANS CC returned five phones to CLOTHING.COM. JEANS CC received a
credit. The supplier is registered for VAT.
a. Cash Book
b. Sales Journal
c. Sales Returns Journal
d. Purchases Journal
e. Purchases Return Journal
Books of First Entry and VAT -Application (5 marks)
The following information relates to questions 21 - 25.
All amounts, where applicable, include VAT at 15%. You are required to, carefully consider the
different options of "books of first entry" entries and choose the correct option.
21. The member of JEANS CC made a capital contribution and deposited it in the
bank account, N$200,000
Option a:
Cash Payment Journal -April 2024 CPJ1
Date Doc Details Fol Bank
N$
VAT Suppliers Purchases Sundries Details
N$
N$
Capital
200,000 0
200,000 Member
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Option b:
Date Doc
Cash Payment Journal -April 2024 CPJ1
Details Fol Bank VAT Suppliers Purchases
N$
N$
N$
Sundries
Details
Capital
200,000 26,087
173,913 Capital
Option c:
Cash Receipt Journal -April 2024 CPJ1
Date Doc Details Fol Bank VAT Suppliers Purchases Sundries Details
Capital
230,000 30,000
200,000 Capital
Option d:
Cash Receipt Journal -April 2024 CPJ1
Date Doc Details Fol Bank VAT Suppliers Purchases Sundries Details
Capital
200,000 0
Option e: None of the above options are correct.
200,000 Capital
22. JEANS CC sold goods on credit to Big Daddy, N$3,450.
Option a:
Sales Journal April 2024. SRJ1
Date Doc Accounts
Fol Total
Sales
VAT
Receivable
Big Daddy
3450.00 3000.00 450.00
Option b:
Date Doc
Sales Journal April 2024. SRJ1
Accounts
Receivable
Fol Total
Sales
Big Daddy
3000.00 2608.70
VAT
391.30
Option c:
Date Doc
Cash Receipt Journal April 2024. CPJ1
Details
Fol Bank N$ VAT
Big Daddy
3000
391.30
Sales
2608.70
Suppliers
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Option d:
Date Doc
Cash Receipt Journal April 2024. CPJ1
Details
Fol Bank N$ VAT
Big Daddy
15,000
1956.52
Sales
13043.48
Suppliers
Option e: None of the above options are correct
23. Big Daddy returned clothing amounting to N$1,000.
Option a:
Sales Journal April 2024. SJ1
Date Doc Accounts
Fol Total
Sales
VAT
Receivable
Sundries Details
N$
Big Daddy
1000
869.57
130.43
Option b:
Date Doc
Details
Cash Receipt Journal April 2024. CRJ1
Fol Bank VAT
N$
Purchases
Returns
Big Daddy
1000 130.43
869.57
Sales N$
Option c
Date Doc
Sales Return Journal April 2024. SRJ1
Accounts Fol Total
Receivable
N$
Big Daddy
1000
Sales
Returns
N$
869.57
VAT
130.43
Sundries
N$
Details
Option d:
Date Doc
Purchases Return Journal April 2024. PRJ1
Accounts
Payable
Fol Total
N$
Big Daddy
1,150
Purchases VAT
Returns
N$
1000
150
Sundries
N$
Details
Option e: None of the options are correct.
24. Big Daddy paid their account N$2,000
Option a:
Cash Payment Journal April 2024. (CPJ1)
Date Doc Details
Fol Bank N$ VAT
Purchases
Big Daddy
2,300
300
Suppliers
2000
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Option b:
Date Doc
Cash Payment Journal April 2024. (CPJ1)
Details
Fol Bank N$ VAT
Purchases
Big Daddy
2000
Suppliers
2000
Option c:
Date Doc
Details
Cash Receipt Journal April 2024 (CRJ1)
Fol Bank VAT
N$
Customers
Big Daddy
2000
Sales N$
2000
Option d:
Date Doc
Details
Cash Receipt Journal April 2024 (CRJ1)
Fol Bank VAT
N$
Customers
Big Daddy
2000
2000
Option e: None of the above options are correct.
Sales N$
25. JEANS CC paid their telephone bill from MTC Namibia, N$3,450
Option a:
Cash Payment Journal -April 2024 CPJ1
Date Doc Details Fol Bank VAT Suppliers Purchases Sundries
N$
N$
N$
Details
MTC
Namibia
3,450 450
3,000
Telephone
Option b:
Date Doc
Cash Payment Journal -April 2024 CPJ1
Details
Fol Bank VAT Suppliers Purchases
N$
N$
N$
Sundries
Details
MTC
Namibia
3,450
3450
Telephone
Option c:
Date Doc
Cash Payment Journal -April 2024 CPJ1
Details Fol Bank VAT Suppliers Purchases
N$
N$
N$
Sundries
Details
Telecom
3,450 450
3000
Telephone
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Option d:
Date Doc Details
Cash Receipt Journal -April 2024 CRJ1
Fol Bank VAT Suppliers Purchases
N$
N$
N$
Sundries
Details
Telecom
3,450
3000
Telephone
Option e: none of the options are correct
General ledger application (15 Marks)
This information relates to Questions 26, 27 and 28. You are given the following totals
of the books of first entry for JEANS CC. In addition, the following accounts had
opening balances as of 1st April 2024.
• The bank had a positive balance of N$39,000
• Suppliers, N$18,900
• Customers: N$10,000
• Value Added Tax: N$4,000 credit
Purchases Journal
• Total for Suppliers: N$19,205
• Total for Purchases: N$15,000
• Total for Stationery: N$1,700
• Total for VAT: N$2,505
Purchases Return Journal
• Total for Suppliers: N$17,825
• Total for Purchases: N$15,500
• Total for VAT: N$2,325
Sales Journal
• Total for customers: N$9,200
• Total for Sales: N$8,000
• Total for VAT: N$1,200
Cash Receipt Journal
• Bank: N$19,850
• Customers: N$7 ,200
• Sales: N$11,000
• VAT: N$1,650
Cash Payment Journal
• Bank: N$22,350
• Suppliers: N$12,000
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• Purchases: N$4,000
• Rent paid: N$5,000
• VAT: N$1350.00
26. You are required to use the information provided and show the VAT account for
the month of April 2024 (6 Marks)
Option a:
Value-Added Tax
30 April Suppliers
Bank
PJ1 2,325
CRJ1 1,650
1 April Balance
30
Suppliers
bid 4,000
PJ1 2,505
Customers SJ1 1,200
Bank
1,350
Balance
clo 5,175
7,855
7,855
Option b:
30 April Suppliers
Bank
Balance
Value-Added Tax
PJ1 2,505
CPJ1 1,350
1 April
30
Balance
Suppliers
clo 5,320
9,175
Customers
Bank
bid 4,000
PRJ1 2,325
SJ1 1,200
CRJ1 1,650
9,175
Option c:
30 April Purchases
Bank
Balance
Value-Added Tax
PJ1 2,505
CPJ1 1,650
1 April Balance
Customers
clo 2,695
Bank
6,850
bid 4,000
SJ1 1,200
CRJ1 1,650
6,850
Option d:
30 April Suppliers
Bank
Value-Added Tax
PJ1 2,325
CPJ1 1,650
30 April Suooliers
Suppliers
Balance
clo 3,550
7,525
Customers
Option e: None of the above options are correct
bid 4,000
PRJ1 2,325
SJ1 1,200
7,525
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27. You are required to use the information provided and show the "Suppliers"
account for the month of April 2024 (5 marks)
Option a
Suppliers
30 April
Purchases
Returns
and VAT
Bank
Balance
PRJ1 17,825
CPJ1 12,000
clo 8,280
38,105
1 April Balance
bid 18,900
30
Purchases and PJ1 19,205
VAT
38,105
Option b
30 April
Purchases
Returns
and VAT
Bank
Profit/loss
PRJ1
Suppliers
17,825 1 April
CPJ1 12,000
30
8,280
38,105
Balance
bid
Purchases and PJ1
VAT
18,900
19,205
38,105
Option c
Suppliers
30 April Purchases PJ1 19,205
and VAT
Profit/Loss
29,520
1 April Balance
bid 18,900
30
Purchases and PJ1 17,825
VAT
Bank
CPJ1 12,000
48,725
48,725
Option d
Suppliers
30 April Purchases PRJ1 17,825 30
Returns
and VAT
Bank
CPJ1 12,000
29,825
Option e: None of the above options are correct
Purchases and PJ1
VAT
Profit/Loss
19,205
10,620
29,825
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28. You are required to use the information provided and show the "Bank" account
for the month, indicating the closing balance as of the end of April 2024 (4 marks)
Option a
Bank
1 April
Balance c/o 39,000
Total
bid 19,850
receipts
58,850
30 April Total payments CPJ1 22,350
Profit/Loss
36,500
58,850
Option b
Bank
1 April
Balance c/o 39,000
Total
bid 19,850
receipts
58,850
30 April Total payments CPJ1 22,350
Balance
clo 36,500
58,850
Option c
1 April
Balance
Total
payments
Bank
clo 39,000
CPJ1 22,350
30 April Total receipts
Balance
61,350
CRJ1 19,850
clo 41,500
61,350
Option d
1 April
Balance
(1)
Total
payments
clo 39,000
CPJ1 22,350
61,350
Bank
30 April Total receipts
Profit/Loss
CRJ1 19,850
41,500
61,350
Option e: None of the above.
Trial Balance (4 Marks)
29. When the debit balance is equal to the credit balance in the trial balance, it
means
a. Account balances are correct
b. Mathematically Capital+Liabilities=Assets
c. No mistake in recording transactions
d. No mistake in posting entries to ledger accounts
e. None of the above
30. A trial balance prepared after taking into account the effect of adjusting entries
is known as:
a. Financial trial balance
b. Adjusted trial balance
c. Post-adjusted trial balance
d. Normal trial balance
e. None of the above
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31. What records or books are used when preparing a trial balance
a. Specialised Journals
b. Balance Sheet
c. Ledger Accounts
d. General Journal
e. None of the above
32. Which of the following errors in the journal entry will not be detected by trial
balance:
a. The debit entry is overstated, but the credit entry is correctly recorded
b. The debit entry is correctly recorded, but the credit entry is overstated
c. Both the debit and credit entries are overstated by the same amount
d. The debit entry is correctly recorded, but the credit entry is understated
e. None of the above
Year-end adjustments (21 Marks)
You are provided with a list of balances for JEANS CC as on 30 April 2024.
Capital
162,300
Drawings
24,000
Motor vehicles at cost
220,000
Accumulated depreciation: Motor
88,000
Vehicles
Inventory (1/5/2023)
50,000
Customers
35,000
Suppliers
42,000
Bank Overdraft
35,000
6% Investment at Capricorn (2022)
140,000
Sales
500,000
Interest received on investment
6,200
Purchases
210,000
Salaries and Wages
156,000
Telephone
11,280
Insurance
14,500
Stationery
1,720
Advertising
3,500
Rent Received
42,000
Credit losses
2,400
Notes:
• A further debt of N$3,000 has to be written off.
• The telephone account for April 2024 is still outstanding, N$1,200
• The rent received relates to a storeroom that is leased to Mr. B. Mr. B went on
an overseas trip and paid the rent for May and June 2024. The rent received
was constant throughout the year.
• Depreciation on motor vehicles is charged at 20% of the cost. No residual value
is applicable.
• The office administrator went on maternity leave. JEANS CC paid her salary
for May 2024 on 20th April 2024. Mary, the office administrator, is the only
employee, and she receives the same amount every month.
• Inventory as per inventory count on year-end is presented as N$35,000.
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33. The cost of Sales will be calculated as (3 marks)
a. N$200,000
b. N$225,000
C. N$146,200
d. N$96,200
e. None of the above is correct
34. The total credit losses for the year are (2 marks)
a. N$5,400
b. N$2,400
C. N$3,000
d. N$600
e. None of the above is correct
35. The interest receivable on the investment will have the following effect on the
financial statements (2 marks)
a. Total income is N$8,400, and an accrued income of N$2,200 is raised
b. Total income is N$8,400, and an accrued income of N$8,400 is raised
c. The total expense is N$8,400, and an accrued expense of N$2,200 is raised
d. Total income is N$7,200, and an accrued income of N$2,600 is raised
e. None of the above is correct
36. The adjustment relating to the telephone expense will have the following effect
on the financial statements (2 marks)
a. The total expense is N$11,280, and an accrued expense of N$1,200 is raised
b. The total expense is N$12,480, and a prepaid expense of N$1,200 is raised
c. Total expense is N$11,280
d. Total expense is N$12,480, and an accrued expense of N$1,200 is raised
e. None of the above is correct.
37. The adjustment relating to rent received will have the following effect on the
financial statements (2 marks)
a. The total income is N$36,000, and an asset of N$6,000 will be raised
b. The total income is N$36,000, and a liability of N$6,000 will be raised
c. Total income is N$39,000, and an income received in advance of N$6,000 will
be raised
d. Total income is N$33,000, and a liability of N$3000 will be raised.
e. None of the above is correct.
38. The following statement is correct regarding the motor vehicles as at the end of
the book year (3 marks)
a. The depreciation charge on motor vehicles for 2024 is N$44,000, the
accumulated depreciation after the adjustment is N$44,000, and the net book
value is N$176,000
b. The depreciation charge on motor vehicles for 2024 is N$26,400, the
accumulated depreciation after the adjustment is N$114,400, and the net book
value is N$79,200.
c. The depreciation charge on motor vehicles for 2024 is N$44,000, the
accumulated depreciation after the adjustment is N$132,000, and the net book
value is N$88,000
d. The depreciation charge on motor vehicles for 2024 is N$26,400, the
accumulated depreciation after the adjustment is N$88,000, and the net book
value is N$132,000
e. None of the above
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39. Calculate the gross profit for the year under review, assuming a cost of sales of
N$290,000
a. N$790,000
b. N$210,000
c. N$300,000
d. N$320,000
e. None of the above
40. Which one of the following options, showing different accounts, will be shown
in the Current Asset Section:
a. Cash, Bank, Accrued Income
b. Cash, Bank Overdraft, Income received in Advance
c. Income Received in Advance, Prepaid Expenses, Depreciation
d. Accrued Expenses, interest paid, Bank Overdraft
e. None of the above
41. Which one of the following options, showing different accounts, will be shown
in the Current Liabilities Section:
a. Cash, Bank Overdraft, Income Received in Advance
b. Bank Overdraft, Accrued Income, Bad debts
c. Customers, Accrued Expenses, Short-term Loans
d. Suppliers, Short-term Loans, Income Received in Advance
e. None of the above
42. Which one of the options below, showing different accounts, will appear in the
Statement of Financial Position?
a. Suppliers, Debtors, Sales
b. Inventory, Bonds, Interest paid on bonds
c. Bank Overdraft, Cash, Motor Vehicles, Accrued Expenses
d. Inventory, Purchases, Suppliers
e. None of the above options is correct
43. Which one of the options below, showing different accounts, will appear in the
Statement of Profit or Loss?
a. Bank, Cash, Motor Vehicles, Sales
b. Purchases, Interest paid on Bonds, Sales Returns
c. Sales, Purchases, Investments
d. Sales, Purchases, Loans
e. None of the above options is correct
44. Accumulated depreciation will be shown in the following financial statement:
a. Statement of Profit or Loss
b. Statement of Financial Position
c. Cashflow Statement
d. Statement of changes in equity
e. None of the above is correct
45. Which one of the following statements is correct?
a. Annual depreciation charges will be more when an asset has no residual value.
b. An asset's cost price less depreciation will be shown as the book value.
c. The reducing depreciation is a recognised method for calculating depreciation.
d. The book value of an asset after its useful life will be zero.
e. None of the above
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Bank reconciliation (6 marks)
The following questions assume that the bank reconciliation commences with the
closing balance on the bank statement.
46. On the bank statement, cash deposited is shown as a?
a. Credit entry
b. Debit entry
c. Expense
d. Profit
e. None of the above is correct
47. Which of the following items on a bank reconciliation would NOT require an
adjusting entry on the company's books?
a. Outstanding deposits
b. Bank charges
c. An error by the bank
d. Interest Received
e. None of the above
48. Which of the following statements is incorrect?
a. A credit balance in the bank statement indicates more deposits than
withdrawals.
b. Bank charges increase a debit balance on the bank statement
c. A bank reconciliation is not part of the bank statement
d. The business prepares a bank statement
e. None of the above
49. The Cash Book debit balance is equivalent to?
a. Credit Balance as per bank statement
b. Overdraft as per Cash Book
c. Overdraft as per bank statement
d. Debit balance as per the bank statement
e. None of the above is correct
50. A deposit that appears in the cashbook but is still not on the bank statement will
be recorded as follows:
a. Debit the bank account
b. Credit the bank account
c. On the debit column of the bank reconciliation
d. On the credit column of the bank reconciliation.
e. None of the above
51. A payment received from a debtor appears on the bank statement but not in the
cashbook. The following entry should be made:
a. Debit the bank account
b. Credit the bank account
c. On the debit column of the bank reconciliation
d. On the credit column of the bank reconciliation
e. None of the above
General Bonus Mark
52. Please give us your opinion on the approach followed in this module.
a. I did not like the online classes and prefer entirely face-to-face classes 9without
any videos and recordings)
b. I prefer fully online classes with all videos and recordings.
c. I have no opinion.
End of the examination paper
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