 |
IHA512S-INTRO TO HOSP AND TOURISM ACCOUNTING-1ST OPP-JUNE 2022 |
|
|
1 Page 1 |
▲back to top |
nAmlBIA UnlVERSITY
OF SCIEnCE Ano TECHnOLOGY
FACULTYOFCOMMERCEH, UMANSCIENCESAND EDUCATION
ACCOUNTING, ECONOMICSAND FINANCE
QUALIFICATION CODE:07BHOM
& 07BOTM
COURSECODE: IHA521S
DATE:JUNE 2022
LEVEL:6
COURSENAME: Introduction to Hospitality & Tourism
Accounting
MODE: FULLTIME
DURATION: 3 HOURS
MARKS: 100
EXAMINER
MODERATOR
FIRSTOPPORTUNITYEXAMINATION PAPER
K.G.H. Sheehama
L. Odada
INSTRUCTIONS
1. Answer ALL the questions.
2. Write clearly and neatly.
3. Number the answers clearly.
PERMISSIBLEMATERIALS
1. Examination paper
2. Examination script
THIS QUESTION PAPERCONSISTSOF 8 PAGES(INCLUDING THIS FRONTPAGE)
|
|
2 Page 2 |
▲back to top |
QUESTION 1
(40 MARKS)
Answer this question ON the Answer Sheet on Page 8 of this question paper.
In each of the following questions, ON THE ATTACHED ANSWER SHEET, only
draw a cross over the letter that, in your opinion, represents the correct answer:
1. Bob purchases goods with debit card, with a list price of N$15 000. The supplier gives a
cash discount of 5%. What is the amount that Bob will credit to his business bank
account?
A N$15 000
B. N$14 250
C. N$10 000
D. N$10 500
2. Bob purchases goods with debit card, with a list price of N$15 000. The supplier gives a
cash discount of 5%. What is the amount of discount Bob should be allowed?
A. N$550
B. N$750
C. N$500
D. N$700
3. When an owner takes out money from the business for personal use, it is called .....
A. Capital
B. Owner's equity
C. Drawings
D. Sales
4. Motor vehicle purchased on credit from K Logan. Which account is debited?
A. Purchase returns a/c
B. Motor vehicle a/c
C. Purchase a/c
D. Accounts payable a/c
5. Goods were sold to Jack. He immediately paid by electronic funds transfer. Which account
is debited?
A. Sales a/c
B. Jack a/c
C. Bank a/c
D. Purchases a/c
6. Goods were sold to Jack. He immediately paid by electronic funds transfer. Which account
is credited?
A. Sales a/c
B. Jack a/c
C. Bank a/c
D. Purchases a/c
2
|
|
3 Page 3 |
▲back to top |
7. Which of the following transactions is not recorded in the cash receipts journal?
A. receipt of customer payments
B. expensing prepaid rent
C. borrowing money from a bank
D. sale of equipment for cash
8. The following financial statement encompasses expenses, revenues, net profit, or net
loss.
A. Statement of profit or loss
B. Statement of cashflow
C. Statement of financial position
D. Statement of information
9. Which of the following is considered as a financial statement?
A. Statement of drawings
B. Statement of cash payment
C. Statement of trial balance
D. Statement of financial position
10. Which financial statement reports assets, liabilities, and capital?
A. Statement of profit or loss
B. Statement of financial position
C. Statement of changes in owner's equity
D. Statement of information
The following applies to questions 11 to 13
Bono Ltd Statement of profit or lossfor the year ended 31 March 2022
Sales (all credit)
500 000
Less:Cost of sales
350 000
Opening inventory
45 000
Credit purchases
400 000
Closing inventory
(95 000)
Gross profit
150 000
Administrative expenses
30000
Selling and advertising expenses
Net profit
I
25 000
95 000
11. Cost of sales ratio is...........
A. 30%
B. 50%
C. 100%
D. 70%
12. Gross profit ratio is.....
A. 30%
B. 50%
C. 100%
D. 70%
3
|
|
4 Page 4 |
▲back to top |
13. Net profit ratio is.....
A. 18%
B. 19%
C. 10%
D. 20%
14. At the end of year 2021, a business made prepaid water and electricity bills of N$20 000.
How will this be recorded in the statement of financial position in 2021?
A. as an income
B. as an expense
C. as an accrual
D. as an asset
15. At the end of year 2021, a business owed water and electricity bills of N$20 000.
How will this be recorded in the statement of financial position in 2021?
A. as an income
B. as liability
C. as an expense
D. as an asset
16. Capital can be described as
A. Account receivable claim on total assets
B. creditorship claim on total assets
C. ownership claim on total assets less liabilities
D. government claims on total assets
17.What accounting transaction would result in the following double entry being posted?
Dr Purchases
Cr Bank
A. The purchases of vehicle by EFT
B. The receipt of cash from a credit customer
C. The goods for resale bought by with debit card
D. The banking of cash
18. Gross profit will result if:
A. Operating expenses are less than net income.
B. Sales revenues are greater than operating expenses.
C. Sales revenues are greater than cost of goods sold.
D. Operating expenses are greater than cost of goods sold.
19. Separate accounting entity means
A. the owner is responsible for the debts of the business.
B. the owner's affairs are separate from those of the business.
C. the business keeps separate records from those of the taxation department.
D. each department in the business keeps its own separate accounting records.
20. In which section of the statement of financial should prepaid income be classified?
A. current assets
B. investments
4
|
|
5 Page 5 |
▲back to top |
C. current liabilities
D. expired assets
21. Difference between sales and cost of sales is called:
A. net sales
B. gross profit
C. cost of goods sold
D. net profit
22. A sum of cost of sales and gross profit is called:
A. net loss
B. net profit
C. sales
D. gross loss
23. lftotal liabilities decreased by N$4 000, then
A. Assets must have decreased by N$4 000.
B. Owner's equity must have decreased by N$4 000.
C. Assets must have increased by N$4 000 and owner's equity must have decreased
by N$4 000.
D. Assets and owner's equity each increased by N$2 000.
24. If total assets decreased by N$5 000, then
A. assets must have decreased by N$5 000.
B. owner's equity must have decreased by N$5 000.
C. assets must have increased by N$5 000 and owner's equity must have decreased
by N$5 000.
D. assets and owner's equity each increased by N$2 500.
25. Which of the following statements is true?
A. to increase bank, debit the account
B. to increase revenue, debit the account
C. to decrease a liability, credit the account
D. to increase a liability, debit the account
QUESTION 2
(10 MARKS)
State whether the followings are True or False.
1. Accounting principle is a general law or rule followed in the preparation of financial
statements.
2. Since the life of the business is assumed to be indefinite, the financial statement of
the business should be prepared only when it goes into liquidation.
3. The entity concept considers the business and the proprietor as distinct from each
other.
4. The comparison ofthe results of one accounting period with that in the past is
possible when the convention of consistency is adhered to by the business.
5. It is on the basis of going concern concept that the assets are always valued at
market value.
5
|
|
6 Page 6 |
▲back to top |
QUESTION 3
(20 MARKS)
Mr. Skade started a business as a retailer of groceries on the 1 January 2022. The following is
a summary of the transactions that took place in the first month of trading:
January 1 Mr. Skade opened a business bank account and deposited N$300 000
into this account.
2 He purchased groceries worth N$25 000 from Stop and Shop cc and paid by
electronic funds transfer.
3 Paid rent for the month with debit card amounting to N$10 000.
6 Sold goods on credit to Tura-Groceries amounting to N$5 500.
12 Bought groceries on credit from African Food cc amounting to N$22 500.
15 Purchased a delivery vehicle and paid N$150 000 by electronic funds transfer.
25 Tura-Groceries settled his account with Mr. Skade by with debit card and he
claimed a settlement discount of 10%.
30 Mr Skade settled his account with African Food cc by with debit card and he
claimed a settlement discount of 5%.
REQUIRED:
Enter the above transactions in appropriate Mona's ledger or 'T' accounts and balance off all
the accounts.
(20)
QUESTION 4
(20 MARKS)
The following trial balance has been extracted from the ledger of Tito, a sole trader:
Trial balance as at 31 December 2021:
Debit
N$
Credit
N$
Bank overdraft
42 000
Accumulated depreciation-Furniture
11000
Capital
139 300
Buildings
164 000
Vehicles
52 000
Furniture
39 000
Purchases returns
21000
Accounts payables
19 000
Accumulated depreciation-vehicles
25 000
Interest income
14000
Wages and salaries
332 000
Carriage inwards
Long term Loan from K Steyn
3 000
so000
Purchases
203 000
Rent expense
10000
Sales
552 000
bad debts
7 000
Inventories 1 January 2021
63 300
873 300
873 300
6
|
|
7 Page 7 |
▲back to top |
You obtain the following additional information, which was not taken into account when
preparing the above trial balance:
1. On 31 December 2021 there was bank overdraft interest of N$5 000 not yet paid..
2. Inventory (stock) held in the business at 31 December 2021 was valued at N28 300.
3. An amount of N$120 000 for wages and salaries was prepaid for the month of
January 2022.
4. During the year there was additional specific bad debt of N$10 000. This was to be
written off.
5. On 31 December 2021 there was additional interest received of N$1300.
6. Rent expense amounting to N$2 000 per annum was not paid.
7. Depreciation must be provided for 2015 as follows:
• Furniture: 10% per annum on the straight-line method
• Vehicles: 20% per annum on the diminishing/reduced balance
REQUIRED:
Prepare a statement of profit or loss of Tito for the year ending 31 December 2021.
(20 marks)
7
|
|
8 Page 8 |
▲back to top |
|
|
9 Page 9 |
▲back to top |
IBUSINESS ACCOUNTING IA (BACll00)
I QUESTION 1: ANSWER SHEET I STUDENT NUMBER:
JUNE 2022
1
A
B
C
D
2
A
B
C
D
3
A
B
C
D
4
A
B
C
D
5
A
B
C
D
6
A
7
A
8
A
9
A
10
A
B
C
D
B
C
D
B
C
D
B
C
D
B
C
D
11
A
12
A
13
A
14
A
15
A
B
C
D
B
C
D
B
C
D
B
C
D
B
C
D
16
A
17
A
18
A
19
A
20
A
B
C
D
B
C
D
B
C
D
B
C
D
B
C
D
8