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CAC710S - COMPUTERIZED ACCOUNTING - 2ND OPP - JAN 2020 |
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NAMIBIA UNIVERSITY
OF SCIENCE AND TECHNOLOGY
FACULTY OF MANAGEMENT SCIENCES
DEPARTMENT: ACCOUNTING, ECONOMICS AND FINANCE
QUALIFICATION :
BACHELOR OF ACCOUNTING
QUALIFICATION CODE: 07BOAC/07BACC
LEVEL: 7
COURSE: COMPUTERISED ACCOUNTING 301
COURSE CODE: CAC710S
DATE: JAN/FEB 2020
DURATION: 3 Hours
SESSION: MORNING/AFTERNOON
MARKS: 100
2"? OPPORTUNITY/SUPPLEMENTARY EXAMINATION QUESTION PAPER
EXAMINER(S) | E KANGOOTUI & Y ELAGO
MODERATOR: | C.W. MILLER
THIS QUESTION PAPER CONSISTS OF 6 PAGES
(Excluding this front page)
INSTRUCTIONS
This examination is made up of three (3) questions which are related.
Make sure that your student number appears on the reports. (Computer printout)
It is your responsibility to see that all the reports are handed in.
The use of internet or any communication device is prohibited.
Questions relating to this 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.
6. Round off all workingS to two decimal places
PERMISSIBLE MATERIALS
1. Examination question paper
2. Examination answer script
3. Non-programmable calculator
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You are required to create a new company on the “C” drive, using the following
information
Company name
: Student number
Financial year
Date format
: 1st September 2018 - 31 August 2019
: 01/09/2018
Processing method
: Balance forward
Charts of accounts
: Computer retail & manufacturing
Bankers
: Barclays Bank
Printing
: Plain paper
Tax processing
: VAT 15% (Exclusive)
Processing
: No GRN, no purchase orders and no sales
orders
Background:
Ms. Belly started up a business a few years back in Gobabis called Easy Computer dot com
(Pty) Ltd dealing in buying and selling of new and second hand computer equipment. The
business keeps a periodic inventory system. She provided you with the following list of account
balances as at 1 September 2018. All non-current assets owned were bought on 1
September 2017.
QUESTION 1
(35 Marks)
List of account balances as at 1 September 2018: N$
Revenue
- Computer equipment
650 450
- Antivirus & operating system programs 520 700
- Repair of computers
300 230
Cost of sales
- Antivirus & operating system programs 174 500
- Computer equipment
328 670
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Operating costs
Rent expense
18 500
- Insurance
12 540
- Marketing cost
- Employees remuneration
22 100
82 000
- Heating & lighting
25 350
- Loss on disposal of non-currents assets 13 000
Non-current assets
- HP Note books
85 000
- Furniture
- Vehicles
Cash & cash equivalents
60 500
135 000
- Bank (balance as per cash book: Dr) 80 220
- 5% fixed deposit
Accounts receivable
50 800
- Taller (TAL100)
13 700
- Sussy (SUS200)
- Ruhajo (RUH300)
24 400
18 480
Accounts payable
- FVK Software (FVK100)
16 840
- Vehopi Virus (VEH200)
31 230
Other accounts
- Accumulated deficit
29 250
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Share capital
Authorised ordinary share capital of Easy Computer dot com (Pty) Ltd is N$2 560 000 ordinary
shares atN$3.20 per share. Total number of unissued shares is 380 000. All shares were issued
at par value.
Non-current assets depreciation policy:
e All non-current assets owned by Easy Computer dot com are depreciated using the
straight line method.
e All non-current assets have a life span of 5 years and a residual value equal to 10% of
cost.
e The company uses the cost model to account for all non-current assets.
Inventory Item
Monitors LCD
PC Boxes
Anti-virus programs
External hard drives
Item Code | Selling prices | Quantity
(N$)
on hand
MLCD100
7 000
20
PCB200
9 500
-
AVP300
2 500
15
EXHD400
1 800
12
All inventory items are sold at a 33.33% mark-up
Required:
Capture the opening balances for Easy Computer dot com Pty accounts, including
accumulated depreciation for all non-current assets, as at 1 September 2018 (Period
one)
UPDATE YOUR TRANSACTIONS BEFORE PROCEEDING TO THE NEXT QUESTION
NO REPORTS ARE REQUIRED AT THIS STAGE
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QUESTION 3
(20 Marks)
Process the following transactions during July 2019 in the current account cashbooks;
Receipts during July 2019
Date
Details
Amount (N$)
2
8.5% Debentures issued
700 000
6
Cash Sales
25 500
Payments during July 2019:
Date | Payee
Reason
1
Cash
Yearly business journals
5
lway
Internet
8
Waltons
Stationary
g
Armed response
Security
10
Cash
Salary for cleaner
10
Santam
Insurance for the building
11
Mr Pieters
Unknown
11
Pub (Pty) Ltd
50% subsidiary ownership
12
Cash
School trip her child
14
BP Eros
Monthly car wash
15
Swartz & Angula CC | Compiling statutory returns
15
Hilton Hotel
Staff year-end function
15
Sara Scoot
Drawing up a business plan
26
Big Belt
Casual labour
28
NCCI
Membership fees
29
Pick & Pay
Coffee and tea-office use
Amount (N$)
1 000
200
800
250
1 000
1 250
260
60 000
1 000
400
3 000
2 500
3 000
800
1 000
300
UPDATE YOUR TRANSACTIONS BEFORE PROCEEDING TO THE NEXT QUESTION
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QUESTION 4
(45 Marks)
Easy Computer dot com’s year- end adjustments to be processed in period 12
Ms. Belly provided you with the following year-end adjustments not yet recorded in the firm’s
books.
Due to various debtors who don’t pay their accounts on time, the directors of the company
decided to make provision for debtors who they think will not pay, this amount was
estimated to be N$12 410 for the current year.
Total amount for heating & lighting per month is estimated to be N$2 535.
One of the company’s debtors (Ruhajo) disputed the balance owed at the beginning of
the financial year. It was discovered that the amount was for another debtor by the name
of Rejo (REJ001) and it was wrongly posted against Ruhajo’s account.
Income tax was estimated to be N$36 540 for the year.
One of the company’s good customers, Rejo was declared insolvent at 31 Aug 2019, the
company managed to receive a multi task fax machine valued at N$17 450 (useful life of
5 years) from the debtor’s assets and the remaining balance was expensed.
VI.
The directors of the company declared a dividend on all outstanding shares at N$0.15
per share.
VII.
Total amount paid for rent expense covers 1 September 2018 to 30 September 2019
respectively.
VIII.
The company donated one of its anti-virus programs to a charitable organisation in
compliance with all requirements.
The company’s auditor discovered an invoice of N$14 890 for the current year’s audit was
not captured.
Provide depreciation on all non-current assets owned by the company to date; total
amount should be charged to administration cost.
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Xl.
Account for any interest payable or interest receivable for the current year.
Required:
Process the above transactions, update and print out the following reports:
1. A detailed ledger for Easy Computer dot com (Pty) Ltd.
(View — General ledger — Transaction — Detailed ledger)
e Period 1 — period 12
2. Print out the following detailed ledgers.
e Customers: View — Customers — Detailed ledger — By customer
e Suppliers: View — Suppliers — Detailed ledger — By supplier
e Period: 1 — Period 12
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