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BAC611C-BUSINESS ACCOUNTING 2A-2ND OPP- DEC 2025 |
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nAmlBIA
U nlVE RS ITV
OF SC IEnCE An □
TECHnOLOGY
HP-65B
HAROLD PUPKEWITZ
Graduate School of Business
FACULTY OF COMMERCE, HUMAN SCIENCES AND EDUCATION
CENTER FOR ENTERPRISE DEVELOPMENT (CED}
QUALIFICATION: DIPLOMA IN BUSINESS PROCESS MANAGEMENT
QUALIFICATION CODE: 06DBPM LEVEL: 6
COURSE CODE: BAC611C
COURSE NAME: BUSINESS ACCOUNTING 2A
SESSION: NOVEMBER 2025
PAPER: THEORY AND CALCULATIONS {PAPER 2)
DURATION: 3 HOURS
MARKS: 100
SECOND OPPORTUNITY EXAMINATION QUESTION PAPER
EXAMINER
Lameck Odada
MODERATOR Gerhardt Sheehama
INSTRUCTIONS
1. This question paper is made up of four (4) questions.
2. Answer ALL the questions in blue or black ink only. NO pencil
3. Start each question on a new page in your answer booklet and show all workings.
4. Work with whole numbers in all your calculations and round off only final answers to
two (2) decimal places unless otherwise stated.
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 ambiguity & any assumption made by the candidate should be
clearly stated.
PERMISSIBLE MATERIALS
Silent, non-programmable calculators
THIS QUESTION PAPER CONSISTS OF 6 PAGES (excluding this front page)
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QUESTION 1
[20 MARKS]
For questions 1.1 - 1.10, write the answer only (the correct letter chosen) in your answer
sheet/answer book and not on the question paper.
1.1 The journal entry for credit sales of goods to accounts receivable is:
a) sales Dr. & Accounts Receivable Cr.
b) accounts Receivable Dr. & Sales Cr.
c) cash Dr. & Sales Cr.
d) sales Dr. & Accounts Payable Cr.
1.2 The cash discount (also known as purchase discount or sale discount) is given to
customers for:
a) early payments
b) the bulk purchases
c) frequent purchases
d) good business relations
1.3 The accounts receivable that cannot be collected because of their bankruptcy or another
reason are termed:
a) collectible accounts
b) bad customers
c) doubtful accounts
d) uncollectible accounts
1.4 Accounts receivables are reported in the statement of financial position:
a) at face value
b) at gross value
c) at net realizable value
d) at net credit sales value
1.5 A soundly developed conceptual framework of concepts and objectives should
a) increase financial statement users' understanding of and confidence in financial
reporting .
b) enhance comparability among companies' financial statements.
c) allow new and emerging practical problems to be more quickly solved.
d) all the above
1.6 The underlying theme of the conceptual framework is
a) decision usefulness.
b) understandability.
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c) reliability.
d) comparability.
1.7 Which of the following is not among the ingredients of the fundamental quality of
faithful representation?
a) freedom from error.
b) neutrality.
c) materiality.
d) completeness.
1.8 Enhancing qualities of accounting information include:
a) comparability and verifiability.
b) relevance and consistency.
c) comparability and materiality.
d) relevance and faithful representation .
1.9 Enhancing qualities of accounting information include all of the following except:
a) comparability.
b) understandability.
c) neutrality.
d) timeliness.
1.10 An ingredient of relevance is:
a) freedom from error.
b) neutrality.
c) comparability .
d) materiality.
[10 x 2 marks = 20 marks]
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QUESTION 2
[32 MARKS]
Visagie and Shitaleni are in partnership. They share profits and losses in the ratio of 60:40,
respectively. The following is their trial balance as at 30 September 2025.
BuildinQs (cost N$105 000)
Fixtures at cost
Provision for depreciation :
Accounts receivables
Accounts payable
Cash at the bank
Inventory at 30 September 2025
Sales
Purchases
Carriage outwards
Discounts allowed
Loan interest:
Office expenses
Salaries and waqes
Bad debts
Allowance for doubtful debts
Loan from P Prince
Capitals:
Current accounts:
Drawings:
Fixtures
P Prince
VisaQie
Shitaleni
Visaqie
Shitaleni
Visagie
Shitaleni
Dr (N$)
80,000
4,100
30,700
3,065
31,370
105,000
1,705
310
1,950
2,380
28,905
816
15,900
14,100
320,301
Cr (N$)
2,100
13,295
181,556
700
32,500
50,000
37,500
2,050
600
320,301
Additional information
Inventory, 30 September 2025, N$37, 105
Expenses to be accrued:
Office expenses N$108 and wages N$360
Partnership salary: N$15,000 to Julitha. Not
yet entered
Interest on capital account balances at 5%
Reduce provision of doubtful debts to N$625
Depreciation:
Fixtures 15% on a reducing balance basis
and buildinQs N$2 500
Interest on drawings:
Visaqie N$450 and Shitaleni N$300
REQUIREMENT:
a) Prepare the partnership statement of profit/loss
b) Prepare the partnership profit/loss appropriation account
MARKS
20
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QUESTION 3
[20 MARKS]
Diesel-Electric (DE) is one of the biggest suppliers of automotive products in Namibia. They
offer a vast range of services such as automotive air conditioning, auto workshop, battery
testing & recharging , Bosch service training , automotive computer diagnostics, and much more.
With branches in Windhoek, Otjiwarongo, Tsumeb, Oshakati, Swakopmund, and Walvis Bay
they provide services in most parts of Namibia. Below is the abridged statement of financial
position of DE for the year ended 28 February 2025.
Non-current assets
Buildings
Fixtures
Motor vehicles
Current assets
Inventory
Receivables
Bank
Total assets
Equity:
Capital
Additional capital
Profit for the year
Less: Drawinqs
Liabilities
Creditors
Bank Overdraft
Loans
Total equity and liabilities
2024
500,000
200 ,000
547 ,000
841 ,000
597,000
15,000
2,700,000
1,610 ,000
250,000
790 ,000
-780 ,000
1,870,000
204,000
126,000
500,000
2,700,000
2023
500,000
180,000
289 ,000
300,000
486,000
345,000
2,100,000
1,550 ,000
680,000
-620,000
1,610,000
290 ,000
-
200 ,000
2,100,000
• Fixtures bought in 2024 cost N$40 000 and a motor veh icle was also bought for exactly
N$400 000.
REQUIREMENT
MARKS
a) Draw up the statement of cash flows of Diesel Electric for the year ended 28 13
February 2024 using the indirect method.
b) Highlight any three (3) uses of a statement of cash flows
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c) Explain any two (2) limitations of a cash flow statement
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QUESTION 4
[28 MARKS]
Established on 29 October 1920, Namibia Breweries Limited (NBL) is one of the leading
beverage manufacturing companies in Namibia and , by extension, in the entire Southern African
region. Today, NBL leads the domestic beer market and has a significant share of the premium
beer category in South Africa. You have been provided with the financial statements of NBL for
the year ended 30 June 2025.
Statement of financial position as at 30 June 2023
2024
2023
N$'000
N$'000
ASSETS
Non-current assets- Net plant and equipment
19 167
15 164
Current assets
Inventory
4 906
4 608
Accounts receivable
2 510
2 405
Cash
906
815
Total current assets
8 322
7 828
TOTAL ASSETS
27 489
22 992
EQUITY AND LIABILITIES
Share capital
10 000
10 000
Retained profit
10 209
6 367
Total equity
20 209
16 367
Non-current liabilities
Long-term borrowings
4 960
4 817
Current liabilities
Trade and other payables
1 480
1 088
Short-term borrowings
840
720
Total current liabilities
2 320
1 808
TOTAL EQUITY AND LIABILITIES
27 489
22 992
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Statement of profit or loss for the year ended 30 June 2025
Revenue
Cost of sales
Depreciation
Profit Before Interest and Tax
Interest paid
Net profit before tax
Taxes
Net profit after tax
Dividends
Additions to retained profits
2024
N$'000
33 500
18 970
1 980
12 550
486
12 064
4 222
7 842
4 000
3 842
2023
N$'000
29150
16 290
1 650
11 210
463
10 747
3 761
6 986
4 000
2 986
REQUIREMENT: assume a 365-day year, compute the following ratios for 2023 MARKS
and 2024 and also comment on whether the ratio has improved or deteriorated.
a) Current ratio
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b) Quick/Acid test ratio
4
c) Debtors' collection period
4
d) Creditors settlement period
4
e) Gross profit margin
4
f) Return on Equity (ROE)
4
g) Explain any two (2) limitations of ratio analysis
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END OF EXAMINATION QUESTION PAPER
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