 |
BAC1100-BUSINESS ACCOUNTING 1A-2ND OPP-DEC 2025 |
|
|
1 Pages 1-10 |
▲back to top |
|
|
1.1 Page 1 |
▲back to top |
nAmlBIA UnlVERSITY
OF SCIEnCE Ano TECHnOLOGY
FACULTY OF COMMERCE, HUMAN SCIENCES AND EDUCATION
DEPARTMENT OF ECONOMICS, ACCOUNTING AND FINANCE
COURSE CODE: BACll00S
COURSE NAME: BUSINESS ACCOUNTING lA
SESSION: OCTOBER/ NOVEMBER 2025
PAPER: THEORY AND CALCULATIONS
DURATION: 2 HOURS
MARKS: 80
SUPPLEMENTARY EXAMINATION
EXAMINER
MR B. PETRUS
MODERATOR: MRS Y. VANWYK
INSTRUCTIONS
1. Answer ALL the questions on the answer sheet
2. The paper consists of 48 Questions
3. Read all the questions carefully before answering.
4. All questions count for one mark unless otherwise indicated
5. There is only one correct option, the shading of more than one option
will be marked as incorrect
6. Make sure to shade your student number correctly
THIS QUESTION PAPER CONSISTS OF 14 PAGES {Including this front page)
|
|
1.2 Page 2 |
▲back to top |
Section A: Accounting Theory and equation (11 Marks)
1. Why would employees be interested in the company's financial status?
a. It indicates a possible increase in their pay checks.
b. It affects employees' sense of job security.
c. It guarantees the company will invest more in employee benefits.
d. It indicates how productive their work has been.
2. Djokovic is the Chief Financial Officer for lnfoTech Inc. Murray is the Chief Lending
Officer at the Bank where lnfoTech has a large bank loan. Which statement is true for
both Djokovic and Murray, in connection with the accounting information for
lnfoTech?
a. Both are external users
b. Djokovic is an internal user and Murray is an external user
c. Both are internal users
d. Murray is an internal user and Djokovic is an external user
3. Which of the following persons can be an owner of a close corporation?
a. Silver Works {Pty) Ttd
b. Jack and Jill CC
c. Gold Rush Ltd
d. An individual
4. Which principle dictates that all data should be captured in such a way that the
debit/credit principle is applied?
a. Matching principle
b. Periodicity principle
c. Duality principle
d. Prudence principle
5. The concept "understandability" refers to:
a. Information should be understandable to all users, even though this may be a
challenge, as financial information may be complex.
b. Information should be understandable by most users, based on the
assumption that users are familiar with accounting
c. Information should be understandable, as it is used for further planning.
d. None of the above options.
6. The Prudence concepts means:
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 that income and expenses are recognized and recorded in the
correct time period
2
|
|
1.3 Page 3 |
▲back to top |
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
7. The accounting equation can be presented as:
a. Assets= Liabilities - Owner's Equity
b. Liabilities= Assets+ Owners' Equity
c. Assets = Liabilities+ Owners' Equity
d. Owner's Equity= Assets+ Liabilities
8. 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 sources in a business are equal
to the resources of that business
c. The accounting equation represents that the resources are allocated to the
business at cost price
d. None of the above
9. The owner's equity of a sole trader will change as a result of:
a. A credit customer paying by cheque
b. Raw materials being purchased on credit
c. Non-current assets being purchased on credit
d. Personal petrol being paid for out of the business's petty cash
10. A sole trader purchases furniture on credit. Which elements of the accounting
equation will change due to the transaction?
a. Assets and liabilities
b. Assets and capital
c. Capital and liabilities
d. Assets only
11. A sole trader borrows N$10,000 to the bank. Which elements of the accounting
equation will change due to this transaction? (2 marks)
a. Assets and liabilities
b. Assets and capital
c. Capital and liabilities
d. Assets only
3
|
|
1.4 Page 4 |
▲back to top |
Section B: Source Documents and Journals (8 marks)
12. A credit sale is made to a customer, which accounting document is issued to the
customer, and in what journal do you record the transaction (2 marks)
a. Invoice recorded in the sales journal
b. Goods received note recorded in the general journal
c. Credit Note recorded in the general journal
d. Cash Receipt recorded in the cashbook
13. Goods are ordered from a supplier. What accounting document is prepared?
a. Invoice
b. Sales order
c. Goods received note
d. Purchase order
14. The following transaction took place. Which source document was issued and in
which journal is the transaction recorded? "Purchased goods from Alex Starts on
credit" (2 marks)
a. Original invoice and cashbook
b. Duplicate invoice and cashbook
c. Duplicate invoice and purchase journal
d. Original invoice and purchase journal
15. The Sales Journal is also known as the?
a. Debtors Ledger
b. Return Inward Book
c. Sales Day Book
d. General Journal
16. Matthew is the delivery person for Nam Logistics. He delivered items to Jeffrey.
The parties need to sign which document?
a. Purchase Order
b. Goods Received Note
c. Invoice
d. Credit Note
17. What is common about source documents?
a. The bookkeeper's name, the amount, a transaction date, a reference number
b. A transaction date, the amount, a description of the transaction, the document
number
c. The amount, the names of both businesses, a date, a description of the
transaction
d. None of the above
4
|
|
1.5 Page 5 |
▲back to top |
Section C: General Ledger (13 Marks)
This information relates to Questions 18 to 20. You are given the following totals of the
books of first entry for JEANS CC. Additionally, the following ·accounts had opening balances
as of April 1, 2025.
• 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
• Purchases: N$4,000
• Rent paid: N$5,000
• VAT: N$1350.00
5
|
|
1.6 Page 6 |
▲back to top |
18. You are required to use the information provided and show the VAT account for the
month of April 2025 {6 Marks)
Option a:
Value-Added Tax
30 April Suppliers
PJl 2,325
1 April Balance
b/d 4,000
Bank
CRJl 1,650
30
Suppliers
PJl 2,505
Customers SJl 1,200
Bank
1,350
Balance
c/o 5,175
7,855
7,855
Option b:
Value-Added Tax
30 April Suppliers
PJl 2,505
1 April Balance
b/d 4,000
Bank
CPJl 1,350
30
Suppliers
PRJl 2,325
Balance
c/o 5,320
Customers
SJl 1,200
Bank
CRJl 1,650
9,175
9,175
Option c:
Value-Added Tax
30 April Purchases
PJl 2,505
1 April Balance
b/d 4,000
Bank
CPJl 1,650
Customers
SJl 1,200
Balance
c/o 2,695
Bank
CRJl 1,650
6,850
6,850
Option d:
Value-Added Tax
30 April Suppliers
PJl 2,325
30 April Suppliers
b/d 4,000
Bank
CPJl 1,650
Suppliers
PRJl 2,325
Balance
c/o 3,550
Customers
SJl 1,200
7,525
7,525
6
|
|
1.7 Page 7 |
▲back to top |
Option e: None of the above options is correct
19. 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 2025 (4 marks)
Option a
Bank
1/4 Balance
c/o 39,000
30/4 Total payments
CPJl 22,350
Total receipts
b/d 19,850
Profit/Loss
36,500
58,850
58,850
Option b
Bank
1/4 Balance
c/o 39,000
30/4 Total payments
CPJl 22,350
Total receipts
b/d 19,850
Balance
c/o 36,500
58,850
58,850
Option c
Bank
1/4 Balance
c/o 39,000 30/4 Total receipts
CRJl 19,850
Total payments CPJl 22,350
Balance
c/o 41,500
61,350
61,350
Option d
Bank
1/4 Balance
c/o 39,000
30 April Total receipts CRJl 19,850
Total payments CPJl 22,350
Profit/Loss
41,500
61,350
61,350
Option e: None of the above.
20. You are required to use the information provided and show the "Purchases" account
for the month, indicating the closing balance as of the end of April 2025 (3 marks)
Option a
Purchases
1 April Bank
CPJl 4,000
30 April P/L
GLS 19,000
Suppliers
PJl 15,000
7
|
|
1.8 Page 8 |
▲back to top |
Option b
1 April Bank
Suppliers
Option c
lApril Bank
Suppliers
Option d.
1 April Cash
Creditors
119,000
Purchases
CPJl 15,000
30 April P/L
PJl 14,000
19,000
Purchases
CPJl 4,000
30 April Balance
PJl 15,000
19,000
Purchases
CPJl 4,000
30 April P/L
PJl 15,000
19,000
119,000
GLS 19,000
19,000
c/o 19,000
19,000
GLS 19,000
19,000
Section D: Accounting Equation (4 marks)
21. The member of JEANS CC made a capital contribution of N$200,000, which was
deposited in the business's bank account. (2marks)
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.
22. JEANS CC paid their employees their monthly salaries. The payment was made via
N$70,000. (2 marks)
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
8
|
|
1.9 Page 9 |
▲back to top |
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.
Section E: Trial Balance {7 marks)
23. What is the need for companies to draft a trial balance?
a. To calculate the status of the financial orders
b. To tally the balance of cash and the bank
c. For calculating profit and loss
d. For checking the accuracy of the ledgers arithmetically
e. None of the above
24. Which of the following is used for checking the arithmetical accuracy of the
account books?
a. Ledger
b. Trial balance
c. Journal
d. All of these
e. None of these
25. Which records are used to draft a trial balance?
a. Journals
b. Ledgers
c. Statement of Profit or Loss
d. Statement of Financial Position
e. None of the above
26. Which of the following accounts is a debit?
a. Purchase returns
b. Purchase
C. Discounts Received
d. Owner equity
e. None of the above
27. Which of the following accounts increases on the debit side?
a. Sales Returns
b. Discounts Received
C. Purchases Returns
d. Owner equity
e. None of the above
9
|
|
1.10 Page 10 |
▲back to top |
28. Which of the following accounts have a credit balance?
a. Sales Returns
b. Creditors
c. Fuel and Oil
d. Motor vehicles
e. None of the above
29. Which one of the following accounts will be presented in the Statement of
Financial Position?
a. Rent received
b. Stationery used
C. Bank Overdraft
d. Salaries and Wages
e. None of the above
Section E: Bank Reconciliation (9 marks)
The following questions assume that the bank reconciliation commences with the closing
balance on the bank statement.
30. On the bank statement, cash deposited is shown as a?
a. Debit_entry
b. Credit entry
c. Expense
d. Profit
31. A debit order for insurance for N$450 appears on the bank statement, but not in the
cash book. This transaction will be recorded on the (2 marks):
a. Debit side of the bank account
b. The credit side of the bank account
c. Credit column of the bank reconciliation
d. Debit column of the bank reconciliation
32. The bank deducted N$100 from the bank statement. This deduction was an error
and should be deducted from another bank client (2 marks)
a. N$100 will be recorded on the debit side of the bank account
b. N$100 will be recorded on the credit side of the bank account
c. N$100 will be recorded on the debit column of the bank reconciliation
d. N$100 will be recorded on the credit column of the bank reconciliation
33. A deposit of N$4,000 appears on the bank statement, but it is not reflected in the
bank account. The following entry will be done (2 marks)
a. N$4,000 will be recorded on the debit side of the bank account
b. N$4,000 will be recorded on the credit side of the bank account
c. N$4,000 will be recorded on the debit column of the bank reconciliation
10
|
|
2 Pages 11-20 |
▲back to top |
|
|
2.1 Page 11 |
▲back to top |
d. N$4,000 will be recorded on the credit column of the bank reconciliation
34. Which of the following items on a bank reconciliation would require an adjusting
entry on the company's books?
a. An error by the bank
b. Outstanding deposits
c. Bank charges
d. None of the above
35. The Cash Book debit balance is equivalent to?
a. Credit Balance as per the bank statement
b. Overdraft as per Cash Book
c. Overdraft as per the bank statement
d. None of the above
Section G: The effect of VAT on the accounting records (10 marks)
36. What is the VAT rate on school fees?
a. 10%
b. 12%
c. 15%
d. 0%
37. Assuming VAT is inclusive, what will be the VAT on sales of N$100,000? (2 marks)
a. N$100,000 x 15%
b. N$100,000 x 15/115
C. N$100,000 X 115/15
d. None of the above is correct
38. VAT on N$10,000 interest received from the bank will be calculated as? (2 marks)
a. N$10,000 x 15%
b. N$10,000 x 15/115
C. N$10,000 X 100/115
d. None of the above
39. Assuming the business sells goods for N$ 15,000 and purchases for N$ 34,500.
Calculate the VAT net effect. VAT is inclusive in this scenario (2 marks)
a. N$2,543 liability
b. N$2,925 income
c. N$2,925 expense
d. N$2,543 asset
40. Assuming the business sells goods for N$27,000 and purchases for N$13,000.
Calculate the VAT net effect. VAT is exclusive in this scenario (2 marks)
a. N$2,100 expense
b. N$2,100 liability
c. N$2,100 asset
11
|
|
2.2 Page 12 |
▲back to top |
d. N$2,100 expense
41. Value Added Tax charged on goods sold, will have the following effect?
a. Give rise to an asset
b. Give rise to a liability
c. Recorded as an expense
d. Recorded as income
Section H: Year-end adjustments and Financial Statements (19 Marks)
List of balances of ABC Traders as on 30th September 2025
Capital
250,000
Drawings
40,000
Land and Buildings at cost
220,000
Vehicles at cost
90,000
Accumulated depreciation: Vehicles
18,000
Inventory (1/10/2024)
50,000
Accounts Receivable
45,000
Allowance for credit losses
3,000
Accounts Payable
40,000
Bank
25,000
15% Mortgage bond on the land and
120,000
buildings
Sales
367,000
Purchases
210,000
Salaries and wages
90,000
Telephone
1,280
Insurance
4,500
Stationery
720
Advertising
3,500
Rent Received
33,000
Credit losses
1,400
Notes:
• A debtor which owes N$2000 is insolvent and the account is written off.
• The allowance for credit losses should be adjusted to 10% of the total
outstanding debtors.
• The interest on the bond has not been accounted for. The bond was registered
in 2009.
• The telephone account of N$400 is still outstanding.
• Rent received for September 2025 is still outstanding.
• Depreciation on motor vehicles is charged at 20% of cost. No residual value is
applicable .
12
|
|
2.3 Page 13 |
▲back to top |
• Inventory as per the inventory count on year-end is presented as N$38000.
42. What is the cost of sales? (2 marks)
a. N$220,000
b. N$157,000
c. N$200,000
d. None of the above options
43. The following is true regarding the depreciation on motor vehicles (3 marks)
a. The current depreciation is N$18,000, the accumulated depreciation as on 30th
September 2025 is N$36,000 and the net book value as on 30th September
2025 is N$72,000
b. The current depreciation is N$9,000, the accumulated depreciation as on 30th
September 2025 is N$18,000 and the net book value as on 30th September
2025 is N$72,000
c. The current depreciation is N$9,000, the accumulated depreciation as on 30th
September 2025 is N$18,000 and the net book value as on 30th September
2025 is N$54,000
d. The current depreciation is N$18,000, the accumulated depreciation as 30th
September 2025 is N$36,000 and the net book value as on 30th September
2025 is N$54,000
44. The allowance for credit losses for the 2025 book year is calculated as (3 marks)
a. N$1,300
b. N$2,225
c. -N$775
d. N$775
45. The following entries relate to the telephone account (3 marks)
a. Accrued expenses of N$400, total telephone expense of N$1,280
b. Accrued expenses of N$400, total telephone expense of N$1,600
c. Accrued expenses of N$400, total telephone expense of N$400
d. None of the above is correct
46. The following entries relate to the interest payable account (2 marks)
a. Accrued expenses of N$21,600 and a profit and loss effect of -N$21,600
b. Prepaid expenses of N$21,600 and a profit and loss effect of N$21,600
c. Accrued expenses of N$18,000 and a profit and loss effect of-N$18,000
d. Prepaid expenses of N$18,000 and a profit and loss effect of N$18,000
47. The total current liabilities will be shown as (3 marks)
a. N$58,400
b. N$61,800
c. N$61,600
d. N$40,400
13
|
|
2.4 Page 14 |
▲back to top |
48. The accounts receivable will be shown as (3 marks)
a. N$45,000
b. N$43,000
c. N$42,275
d. N$42,775
THE END OF THE EXAMINATION PAPER
14
|
|
2.5 Page 15 |
▲back to top |
Name
Student Number
■
■
....____ _______.I ,..____I_ ______.
Mode of Study/centre
II
□
I
■
■
u
w■ 2cz;c~C0@(D 22
Cl
<{
30(~(0(0(0 23
a
CX)
~
Q.
Q.
0
~
"'O
(!)
C
N
-a.
N 6cz;®C0@(0 26 0(~)Cs>@C:D 46 0®©@©
<(
u..-i
<(
cc
7 G_)C])(0@(D 27 c~®Cs>~)(D 47 0®©@©
8<Z)®C0(0(~) 28 c~(Dc0C0(D 48 0®©@©
9
{;)
\\.J
rs\\
\\.::J
r<:c:~.J\\
r,.c__;)\\
(_iS\\J
29
(A'\\ fs1 rc1 ro1 (E.l
'....J \\ _, \\._::/ ,::,,- '--'
■
■
■
■
----------
r~ 11
rr:., 0 (-~A,,.r -B·\\, 1.... ;. ~ - E,
\\.J \\::,,' \\.::_/ \\. ' •.::./
31
r:-, r;;·, (~-, (~ ,,..-;.-,
0) \\.2) ,.£) ".!V \\~)
rs\\ rc> 0.> 12
(i.1 1s1 (c'; (o1 (E1
\\ __ ,I \\.::_/ \\ .:Y '-~/ ,._.I
32
,._.I \\,::.,) r,.e_·,) ,.=.,.! (' ~E.\\I
13 33 /Al (s1 (7') (o') (El
\\.J \\::,,' ,_::,,, \\.::,/ , ._.I
(\\ ;_'.,/
(\\ ~s )\\
re\\
\\_)
r\\':o'.,\\I
(E\\
,._J
Student Nr
I
i
I
I
I
I
I
■
■
■
■