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FAC511S-FINANCIAL ACCOUNTING Financial Accounting 101-2ND OPP-DEC 2025 |
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nAmlBIA UnlVERSITY
OF SCIEnCE Ano TECHnOLOGY
FACULTY OF COMMERCE, HUMAN SCIENCES AND EDUCATION
DEPARTMENT OF ECONOMICS, ACCOUNTING AND FINANCE
QUALIFICATION: BACHELOR OF LOGISTICS AND SUPPLY CHAIN MANAGEMENT AND
BACHELOR OF MARKETING
QUALIFICATION CODE: 07BLSC AND
07MARB
LEVEL: 5
COURSE: FINANCIAL ACCOUNTING 101
COURSE CODE : FACSllS
SESSION: NOVEMBER 2025
PAPER: THEORY & CALCULATIONS
DURATION: 3 Hours
MARKS: 100
SECOND OPPORTUNITY EXAMINATION QUESTION PAPER
EXAMINERS:
MODERATOR:
Ms H Kangala
Mr C Mahindi
INSTRUCTIONS TO CANDIDATES
1. Answer all questions in blue or black ink.
2. Round off all amounts to the nearest Namibian Dollar, where applicable.
3. A non-programmable calculator is perm issible.
4. Show all your workings (where applicable).
This question paper is made up of 6 Pages (Excluding the front page)
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Question 1
30 Marks
PART A
20 Marks
Answer the following questions by writing the question number and correct letter next to it.
The questions all carry 2 Marks each.
1. Volkano CC acquired their equipment at a total cost of N$56 000, 2 years ago. Accumulated
depreciation of the equipment at the end of the prior year amounted to N$25 000.
Depreciation is calculated at 10%, using the diminishing balance method. How much is the
accumulated depreciation at the end of the current year?
A. N$27 900.
B. N$28 100.
C. N$40 824.
D. N$15 176.
E. None of the above
2. Chelsea FC has a 30 June 2024 financial year; the entity purchased a machinery for
N$200,000 on 31 January 2024. The entity depreciates the machinery using a straight-line
method at 20% per annum. Provide the journal entry to account for the depreciation
charge?
A. Dr - Machinery; Cr - Depreciation.
B. Dr - Depreciation; Cr - Machinery.
C. Dr - Accumulated depreciation; Cr- Depreciation.
D. Dr - Depreciation; Cr - Accumulated depreciation.
E. None of the above
3. Nigel Ltd, recovered N$8,000 from a debtor that was written off as irrecoverable in the
prior financial year, the correct way to account for this transaction is:
A. Dr - Credit losses recovered; Cr - Bank.
B. Dr - Accounts receivable; Cr- Bank.
C. Dr - Bank; Cr - Accounts receivable.
D. Dr - Bank; Cr - Credit losses recovered.
E. None of the above
4. In which statement will the rent received be recorded?
A. Statement of profit or loss and other comprehensive income.
B. Statement of financial position.
C. Statement of Cash outflow.
D. Statement of Changes in Equity
E. None of the above
5. Which of the following formulas represents the accounting equation?
A. Income - Expenses= Profit.
B. Owner's equity= Assets - Liabilities.
C. Assets= Owner's equity - Liabilities.
D. Liabilities= Assets+ Owner's equity.
E. None of the above
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6. What is the main purpose of financial accounting?
A. Organize financial information.
B. Provide useful, financial information to users.
C. Keep track of Company expenses.
D. Minimize company taxes.
E. None of the above
7. A company purchased a motor vehicle costing N$200,000 by paying N$S0,000 cash and
the balance on credit. Which is the correct effect on the accounting equation?
A. Assets increase by N$200,000; Assets decrease by N$S0,000; Liabilities increase by
N$150,000
B. Assets increase by N$150,000; Equity increases by N$S0,000; Liabilities decrease
by N$150,000
C. Assets increase by N$200,000; liabilities increase by N$200,000
D. Assets increase by N$50,000; Assets decrease by N$200,000; liabilities increase by
N$150,000
E. None of the above
8. When balancing an asset ledger account, if the debit side exceeds the credit side, the
account will show:
A. A debit balance brought down
B. A credit balance brought down
C. A Profit or Loss balance
D. A Suspense account balance
E. No balance
F. None of the above
9. A company prepares a trial balance before adjusting entries. Which of the following
transactions would typically require an adjustment?
A. Depreciation of machinery
B. Cash sale of goods
C. Collection of accounts receivable
D. Cash payment of rent
E. None of the above
10. Which of the following errors will not be detected by the trial balance?
A. Posting only one side of a transaction
B. Complete omission of a transaction
C. Recording unequal debit and credit amounts
D. A transposition error at ledger level
E. None of the above
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PARTB
10 Marks
Match the description in Column A of the table below to the correct term or phrase in Column
B. In your answer book, just write the number of the description in Column A to the matching
Letter in Column B.
Please Note: The question has more items in Column B than in Column A. This means you
will have some items without a matching number.
Column A
1. The assumption that the business will
continue to operate in the future.
2. The source document for a cash payment.
3. Owner invests cash into the business.
4. Periodic Inventory system entry.
5. The trial balance is prepared to...
6. A liabil ity account.
7. Entry for goods bought for resale .
8. Entry for goods sold on credit.
9. Purpose of the general ledger.
10. Obligations from past events, expected to
result in outflow of economic benefit.
Column B
A. Classify and summarize transactions into
accounts
B. Debit Purchases, Credit Bank
C. Accounts Payable
D. Test the equality of debits and credits
E. Debit Debtors, Credit Sales
F. Going Concern
G. Accounts receivable
H. Liabilities
I. Purchases
J. Receipt
K. Capital
L. Inventory
M. Assets
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Question 2
37 Marks
Ms. Etosha has been operating as a dealer in home appliances, Etosha Homes. The following
balances were extracted from her books on 31 March 2024, the end of her financial year:
Account
Capital
Sales
Purchases
Returns inwards
Returns outwards
Carriage inwards
Consumable expenses
Salaries and wages
Advertising
Discount allowed
Discount received
Rent
Rates
Insurance
Stationery
Water and Electricity
Repairs and maintenance
Credit losses written off
Allowance for credit losses
Bank
Telephone
Account Receivables
Accounts Payables
Delivery van - at cost
Accumulated depreciation - delivery van {31 March 2024)
Drawings
Inventory at 1 April 2023
N$
105,000
345,600
187,950
8,720
14,320
9,460
7,210
32,430
12,980
3,110
2,740
22,000
7,600
9,400
3,920
14,850
6,430
3,300
1,200
6,780
2,140
38,500
28,200
160,000
64,000
24,600
20,700
Additional Information as at 31 March 2024:
1. Closing inventory was valued at N$ 23,600.
2. Insurance includes a pre-paid portion of N$ 1,400.
3. Rent is charged at N$2,000 per month.
4. Further credit losses of N$ 1,000 are to be written off.
5. The allowance for credit losses is to be adjusted to 5% of outstanding receivables.
6. A physical stock count at year-end revealed left over stationery worth N$920.
7. Depreciation is to be provided on the delivery van at 10% per annum on cost.
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Required:
a) Prepare the necessary journal entries for the adjustments. Narrations are not
required.
(15 marks)
b) Prepare the Statement of Profit or Loss for the year ended 31 March 2024 (show
workings clearly).
(22 marks)
Question 3
9 Marks
Answer the following questions:
a) Mr. Chris is the owner and operator of Chris Enterprise, a motivational consulting
business. At the end of the last accounting period on December 31, 2024, Chris
Enterprise has assets of N$880,000 and liabilities of N$312,000.
Required: Use the accounting equation to calculate the balance of Owner's Equity for Chris
Enterprise as at 31 December 2024.
(2 Marks)
b) ABC Ltd purchased a delivery van for N$200,000. The company expects to use it for 5
years. The purchase was partly financed by a bank loan of N$120,000. In the same year,
ABC Ltd earned N$500,000 in sales revenue and paid salaries of N$150,000 to its
employees.
Required: Using the definitions of the elements of financial statements, discuss whether the
purchase of the delivery van should be classified as an asset or an expense. Give reasons to
defend your answer.
(5 marks)
c) List and give one characteristic of one main form of business ownership. (2 Marks)
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Question 4
24 Marks
The following journals relate to the activities of Epandulo Trading for the month of February
2025.
Epandulo Trading
Date
02/03/2025
02/05/2025
02/09/2025
02/11/2025
15/02/2025
19/02/2025
21/02/2025
24/02/2025
26/02/2025
28/02/2025
Required:
General Journal for the month of February 2025
Details
DR (N$)
Purchases
24,000.00
Bank
Cash Purchases
Delivery Vehicles
20,000.00
Capital
Owner contributed vehicle
Purchases
19,000.00
Accounts Payable: Boardwalk
Credit purchases
Accounts Receivable : Muchless
42,000 .00
Sales
Credit sales
Purchases
18,000.00
Bank
Cash Purchases
Sales returns
4,800.00
Accounts Receivable: Muchless
Sales returns
Bank
70,000.00
Sales
Cash sales
Accounts Payable: Boardwalk
2,500.00
Purchases returns
Purchases returned
Purchases
27,000.00
Accounts Payable : Boardwalk
Credit purchases
Purchases
33,000.00
Bank
cash purchases
Accounts Receivable: Muchless
24,000.00
Sales
Credit sales
Prepare the following general ledger accounts for the month of February 2025:
CR (N$}
24,000.00
20,000.00
19,000.00
42,000.00
18,000.00
4,800.00
70,000.00
2,500.00
27,000.00
33,000 .00
24,000.00
Bank Account Ledger, Accounts Receivable: Muchless Ledger, Accounts Payable:
Boardwalk Ledger, Purchases Ledger and Sales Ledger
(24 Marks)
End of Question Paper
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