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BAI620S - BUSINESS ACCOUNTING FOR INFORMATICS - 2ND OPP SUPL |
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n Am IBIA u n IVERsITY
OFSCIEnCEAno TECHnOLOGY
FACULTY OF COMMERCE, HUMAN SCIENCES AND EDUCATION
DEPARTMENT OF ACCOUNTING, ECONOMICS AND FINANCE
QUALIFICATION : Bachelor of Informatics
QUALIFICATION CODE: 07 BAIF
COURSE CODE: BAl620S
LEVEL: 5
COURSE NAME: BUSINESS ACCOUNTING FOR
INFORMATICS
SESSION: January 2023
PAPER: THEORY AND CALCULATIONS
DURATION: 3 HOURS
MARKS: 100 marks
SECOND OPPORTUNITY EXAMINATION - QUESTION PAPER
EXAMINER(S) Ms M E Cloete
MODERATOR Ms Y Andrew
INSTRUCTIONS
1. This paper consists of FIE pages. If your paper does not contain all the pages, please
put up your hand so that a replacement paper can be handed to you.
2. Answer ALL questions in blue or black ink only.
3. Write clearly and neatly.
4. Number each answer clearly.
5. No programmable calculators are allowed.
6. Show all workings clearly.
7. Round numbers to the nearest whole number.
8. Questions relating to the paper 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.
9. Delete all open spaces on your answer sheets with pen. Pages on your answer sheet
that contain pencil or tippex will be marked as such and will not be eligible for a remark.
10. Read questions carefully, if you need to provide explanations, you should always use
full sentences, refrain from simply naming facts.
11. Any resemblance to any people, places, organisations or anything are purely
coincidental.
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QUESTION 1
(22 MARKS)
a) Explain the difference between external auditors and internal auditors.
(4 marks)
b) List and explain the differences between Management Accounting and Financial
Accounting. Provide your answer in a comparative format.
(12 Marks)
c) Explain the following accounting concepts:
• Periodicity concept
• Materiality concept
• Going concern concept
(3 marks)
d) Define the various source documents below:
• Quotation
• Purchase order
• Credit note
(3 marks)
QUESTION 2
(57 Marks)
Riley (Pty) Ltd is a company that has a 31 December 2022 year end. Riley, the owner of the entity,
started her business in 2017 and has been successfully been running her business since. As you
have been looking for a vacation job during your university break, Riley offered to hire you as a
temporary accountant and assist her with her records.
However, after having a look at the accounting records, you came across the following errors:
1. Sales made on credit to a customer of N$5 000 was recorded as N$500 in the
receivables account. The amount of sales is correct.
2. The rent expenses was undercast by N$800.
3. The sales account was debited with an amount of N$300, instead of credited with
N$300.
4. Goods purchased on credit was not recorded in the payables account, to the value of
N$4000. It was posted correctly to the inventory account.
5. The salaries and wages balance was not taken into account at all.
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6. There are 365 days in the year for the company.
7. All sales and purchases made are on credit.
8. Ignore VAT for the entire question.
Land and Buildings
Inventory
Rent
Interest received
Trade payables
Trade receivables
Sales
Cost of sales
Electricity
Capital
Loan
Vehicles
Drawings
Bank
Ni
100 000
17 600
3 500
200
11 000
9 000
53 000
22 000
15 500
24 500
95 000
28 000
13 000
25 000
a) Prepare the trial balance for the entity as at 31 December 2022, after factoring in the
various adjustments.
(20 marks)
b) Prepare the statement of profit and loss for the entity for the period ended 31 December
2022.
(9 marks)
c) Prepare the statement of financial position for the entity as at 31 December 2022.
(18 marks)
d) Using the financial statements provided below, calculate the following ratios:
Statement of Com~rehensive Income of Rolande for the ~eriod ending 31
December 2021.
Sales
Cost of sales
Gross Profit
Insurance
Depreciation
Profit for the year
769 200
(453 000)
316 200
(63 900)
(21 200)
231 100
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Statement of Financial Position for Rolande as at 31 December 2021
Assets
Non current Assets
470 000
Equipment
320 000
Land
150 000
Current Assets
Inventory
Trade receivables
Total Assets
7 700
50 000
57 700
527 700
EQuity and Liabilities
Eouitv
Capital
Net profit
90 500
231 100
321 600
Non Current Liabilities
Loan
187 200
187 200
Current Liabilities
Trade payables
Bank overdraft
Total Liabilities
10 900
8 000
18 900
206 100
Total Equity and liabilities
527 700
• Current ratio
• Net profit margin
• Return on assets
• Creditors payment period
• Debtors turnover period
(2 marks)
(2 marks)
(2 marks)
(2 marks)
(2 marks)
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Question 3
a) Provide 4 examples of items that are zero rated for VAT purposes.
(21 Marks)
(4 Marks)
b) Rolande Trading, is a sole trader, that specializes in the supply and provision of gardening
equipment and services for households and corporates. Rolande Trading is a registered
VAT vendor, and you have been provided with the following transactions for the month of
November 2022:
1. The entity performed gardening services for a customer (who is not a registered
VAT vendor) for the amount of N$5300 (excluding VAT). The customer paid cash.
2. The owner decided to have a party for the staff as they had been working really
hard. The total value of the supplies is N$3400 including VAT, purchased from
Party World (a VAT vendor).
3. The entity purchased gardening equipment from MegaBuild Pupkewitz, for
N$6700 (including VAT). Megabuild is a registered VAT vendor.
4. Paid salaries and wages to employees for N$18 000.
Required:
i. Prepare the journal entries for all the above transactions.
(10 marks)
ii. Prepare the VAT control account in the general ledger for the above
transactions, including the closing off of the account and carrying over.
(6 marks)
iii. State whether VAT is a receivable or payable and what the amount is.
(1 mark)
END OF QUESTION PAPER!
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nAmlBIA
Unl\\/ERSITY
OF SCIEnce A-TIO
TECHnOLOGY
2022-10-19
HOOA: CCOUNTING,
ECONOMIACNSDANAI\\ICE