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ITA412S-INTRODUCATION TO ACCOUNTING -2ND OPP-DEC 2025 |
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nAmlBIA UnlVERSITY
OF SCIEnCE An □ TECHn0L0GY
FACULTY OF COMMERCE, HUMAN SCIENCES AND EDUCATION
DEPARTMENT OF ECONOMIC, ACCOUNTING AND FINANCE
QUALIFICATION: BRIDGING PROGRAMME
QUALIFICATION CODE: 04NBR
LEVEL: 4
COURSE CODE: ITA 4125
COURSE NAME: INTRODUCTION TO
ACCOUNTING
SESSION: DECEMBER 2025
DURATION: 3 HOURS
PAPER: THEORY AND CALCULATIONS
MARKS: 100
SECOND OPPORTUNITY EXAMINATION QUESTION PAPER
EXAMINER(S) Dr. D.R. MUZIRA; Ms YANSY CARIDAD ODIO LOPEZ; Mrs LINDSAY JAHS
MODERATOR: Mr. KUHEPA TJONDU
INSTRUCTIONS
1. Answer all questions.
2. Read all the questions carefully before answering.
3. Make sure your name and surname, question number and the
date appears on the answer script.
4. Please ensure that your writing is legible, neat and presentable.
THIS QUESTION PAPER CONSISTS OF 5 PAGES (Including this front page)
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Question 1
40 Marks
The following trial balance was taken from the records of Teen Traders as at 28
February 2025.
N$
Drawings
2 647
Capital
49 000
Loan - Nedbank
9 000
Furniture
14 600
Accumulated depreciation on furniture
2 680
Motor vehicles
34 500
Accumulated depreciation on motor vehicle
7 360
Accounts receivables
6 435
Provision for bad debts
290
Inventory (1 March 2024)
20 230
Bank (Dr)
18 907
Sales
102 359
Sales returns
3 624
Purchases
49 085
Freight on purchases
6 485
Packaging material
1894
Bad debts
214
Salaries
7 555
Rent expense
3 619
Telephone
894
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Additional information not yet taken into account:
a) According to the inventory count records, the inventory on hand amounts to
N$18 320 and packaging material N$762 on 28 February.
b) The owner paid-in advance N$300 on the telephone account for the next month
as he was going to be out of town.
c) The owner took inventory amounting to N$345 for his own use.
d) An account for freight amounting to N$175 was received late and not yet paid
at year end.
e) Depreciation must be provided at 10% for furniture and 15% for motor vehicles
using straight line method for both asset groups.
f) A debtor with an outstanding debt of N$95 must be written off.
Required:
a) Prepare the statement of profit or loss for Teen Traders for the year ended 28
February 2025.
(25)
b) Prepare the statement of financial position of Teen Traders as at 28 February
2025.
(15 )
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QUESTION 2:
Queen Limited manufactures and retails office products.
Statements of profit or loss for the year ended 30 June
Revenue
Cost of Sales
Gross profit
Operating expenses
Profit from operations
Finance costs
Profits before tax
Tax
Profit for the year
Statements of financial position as at 30 June
Non-current assets
Current assets
Inventory
Receivables
Bank
Share capital
Share premium
Revaluation reserve
Retained earnings
Non-current liabilities
Current liabilities
Payables
Overdraft
Tax
(30 marks)
2025
$000
1,391,820
(1 ,050,825)
2024
$000
1,159,850
(753,450)
340,995 406,400
(161,450) (170,950)
179,545
(10,000)
235,450
(14,000)
169,545
(50,800)
221,450
(66,300)
118,745 155,150
2025
$000
509,590
2024
$000
341,400
109,400
419 ,455
88,760
206,550
95,400
1,038,445 732,110
100,000
20 ,000
50,000
376 ,165
100,000
20,000
287,420
546,165 407,420
61,600
83,100
295,480
80,200
55,000
179,590
62,000
1,038,445 732,110
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Required:
a) Calculate the following ratios for the company for the year ended 30 June 2025:
(20)
i. Gross profit margin
ii. Operating (net) profit margin
iii. Return on capital employed
iv. Inventory days
v. Receivable days
vi. Payable days
vii. Current ratio
viii. Quick ratio
ix. Gearing ratio
x. Interest cover
b) Comment on the performance and position of the company basing on the ratios
calculated above.
(5)
c) State five weaknesses of ratio analysis as a way of evaluating a company's
performance.
(5)
Question 3
30 Marks
a) State the five elements of the financial statement.
(5)
b) Name any five source documents in accounting.
(5)
c) Name five users of accounting information and explain why they are interested
in the information.
(10)
d) State and explain any five errors that can not be revealed by the trial balance
(10)
THE END
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