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FAC511S-FINANCIAL ACCOUNTING 101-2ND OPP-JULY 2025 |
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nAmlBIA unlVERSITY
OF SCIEn CE Ano TECHn OLOGY
FACULTY OF COMMERCE, HUMAN SCIENCES AND EDUCATION
DEPARTMENT OF ECONOMICS, ACCOUNTING & FINANCE
QUALIFICATION: BACHELOR OF ACCOUNTING
QUALIFICATION CODE: 07BGAC LEVEL: 6
COURSE CODE: FAC511S
COURSE NAME: FINANCIALACCOUNTING101
SESSION: JULY2025
DURATION: 3 HOURS
PAPER: THEORYAND CALCULATIONS
MARKS: 100
SECOND OPPORTUNITY EXAMINATION QUESTION PAPER
EXAMINERS
Namwandi H, Kangala H, Akwenye N, Hainghumbi H, and Odio Y
MODERATOR Mahindi C
INSTRUCTIONS
• Answer ALL the questions in blue or black ink only. NO PENCIL.
• Start each question on a new page, number the answers correctly and clearly.
• Write clearly, and neatly showing all your workings/assumptions.
• Work with at least four (4) decimal places in all your calculations and only round off final
answers to two (2) decimal places.
• Questions relating to this examination may be raised in the initial 30 minutes after the
start of the examination. Thereafter, candidates must use their initiative to deal with any
perceived errors or ambiguities and any assumptions made by the candidate should be
clearly stated.
PERMISSIBLE MATERIALS
• Silent, non-programmable calculators
THIS QUESTION PAPER CONSISTS OF _9_ PAGES (including this front page)
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Question 1
20 Marks
Multiple choice questions
Each of the following questions has only one correct answer. On your answer sheet,
write the letter which, in your opinion, represents the correct answer.
1.1 Which one of the following statements is incorrect?
(a) Borrowing money from the bank is an external event.
(b) Accounting information is primarily used by external parties.
(c) Economic activities translated into financial terms are called "data".
(d) Accounting is a means by which information, regarding business activities, is
transmitted to the management and others.
(e) None of the above
1.2 Prepaid expenses require an adjustment to be made to the double entry accounts as
follows:
(a) Credit relevant expense account with prepayment before balancing off account; debit
statement of profit or loss and comprehensive income.
(b) Debit relevant expense account with prepayment before balancing off account; credit
prepayment to same account after balancing off.
(c) Debit relevant expense account with prepayment before balancing off account; credit
statement of profit or loss and comprehensive income.
(d) Credit relevant expense account with prepayment before balancing off account; debit
prepayment to same account after balancing off.
(e) None of the above.
1.3 Flotana Enterprises make use of control accounts. Which one of the following alternative
will cause the trial balance not to balance?
(a) The discount column in the cash payment journal was debited to the "discount
allowed account" in the ledger.
(b) A credit purchase invoice was correctly entered as N$325 in the purchases journal,
but the amount was incorrectly posted as N$235 to the personal account of the
payable.
(c) The bank overdraft appears as a credit balance in the trial balance.
(d) A credit sales invoice of N$1 090 was incorrectly entered as N$190 in the sales
journal and posted as such to the personal account of the receivable.
(e) None of the above.
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1.4 The following account appeared in the ledger of Taku-Tau at 28 February 2024, the end
of their financial year.
Date
2024
Feb 1
Details
Accrued income
RENT RECIVED
Amount
Date
2024
300
Feb 28
Feb 28
Details
Bank
Accrued income
Amount
3 300
600
Which one of the following amounts represents the rent received to be shown as an income
for the current financial year according to the accrual principle?
(a) N$3 300
(b) N$3 000
(c) N$3 900
(d) N$3 600
(e) None of the above
1.5 You are the accountant of Vetjan and Marjan (Pty) Ltd. The following information for
March 2025 was obtained from the records before any adjustments were made:
Total credit sales for the month
N$40 000
Cash receipts from receivables
N$24 000
Settlement Discount allowed in respect of receipts receivables
N$750
Additional information:
i. The sales journal has been overcast by N$1 000.
ii. The cash sales for the month amounted to N$9 000.
iii. The debtors control account reflected a debit balance of N$30 500 on 1 March 2025.
iv. The card of a creditor with a debit balance was transferred to the debtor's ledger.
This person will in future be a debtor, N$1 000.
Which of the following alternatives represents the correct balance of the receivables control
account at 31 March 2025?
(a) N$35 750
(b) N$36 750
(c) N$38 250
(d) N$38 750
(e) None of the above
1.6 Nokokule construction sold a machine, originally costing N$500, to Alpha Limited for
N$750 on credit.
Which of the following alternative correctly reflects the influence of the above transaction on
the accounting equation of Nokukule construction?
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Assets
Equity
(a)
- N$750
+ N$750
(b)
- N$750
-
+ N$750
(c)
+ N$750
+ N$500
(d)
+ N$750
-
-N$500
(e)
None of the above
Liabilities
-
-
+ N$250
+N$250
1.7 Ori 1 December 2023 ABC Construction received an amount of N$2 400 representing
fee received for services to be rendered on a monthly basis during the six months 1 January
2024 to June 2024.
On 1 January 2024 ABC Construction had to make an advance payment of payment N$600
in respect of rent for the period 1 January 2024 to 31 March 2024. The latter payment was
necessary to enable ABC Construction to render the above-mentioned services.
Which one of the following amounts represents the net profit/loss of ABC Construction,
resulting from the above, for the period ended 28 February 2024, the end of the financial
year? (The matching as well as the accrual principles are to form the basis for your
calculations.)
(a) N$400 profit
(b) N$800 profit
(c) N$1 800 profit
(d) N$600 profit
(e) None of the above
1.8 The following information was taken from the accounting records of Open Accounts
Traders at 28 February 2024 before the any adjustments or closing entries had been made:
Trade receivables
N$40 150
Allowance for credit losses (balance at 1 March 2023)
N$1 800
Credit losses written off during the year
N$550
Additional information:
The allowance for credit losses is to be adjusted to 5% of net receivables. In addition to the
above, N$150 must still be written off as credit losses.
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Which one of the following alternatives represents the amounts in respect of credit losses
written off and allowance for credit losses to be disclosed in the statement of profit or loss of
Open Accounts Traders for the year ended 28 February 2024?
Credit losses written off
Allowance for credit losses
(a) N$550
(b) N$900
(c) N$150
(d) N$700
(e) None of the above
N$2 000
N$200
N$1 800
N$200
1.9 The following transactions were extracted from the account of Tatekulu Ngwala (a
creditor) of Awe Awe Store, for October 2023. 31 October (closing balance is N$350), 8
October (credit purchase is N$500), 20 October (payment by EFT is N$400), 25 October
(purchase return is N$200). The opening balance of Tatekulu Ngwala's account as at 1
October 2023 would be?
(a) Dr N$ 950
(b) Cr N$ 950
(c) Dr N$ 550
(d) Cr N$ 750
(e) None of the above
1.10 Given the following information for Solo Enterprises:
29 February 2023
28 February 2024
N$
N$
Creditors
3 000
2 000
Inventory
2 000
1 500
Equipment at cost price
4 000
4 000
Accumulated depreciation
1 000
1 100
Cash
500
400
Capital
?
?
No withdrawals or additional capital contributions were made by the owners during the year
ended 28 February 2024.
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Which one of the following amounts represent the net income/loss of Solo Enterprises for the
year ended 28 February 2024?
(a) N$500 net loss
(b) N$300 net income
(c) N$500 net income
(d) N$300 net loss
(e) None of the above
Question 2
(40 Marks)
The following list of accounts balance was taken from the books of Wallelepo-Nawa
Enterprises.
Wallelepo - Nawa Enterprises
List of balances as at 31 March 2025
Land and building
7% long term investment
Equipment
Accumulated depreciation: equipment
Inventory as at 1 April 2024
Receivables
Payables
VAT refund receivable
Bank and cash
Allowance for credit losses as at 1 April 2024
Rent expense
Sales
Purchases
Sales returns
Purchases returns
Distribution and advertising
Insurance
Wages and salaries
4% long term bank loan
Interest on long-term loan paid
N$
100 000
25 600
101 110
31 415
24 810
71,050
55 885
5 160
7 820
5 625
15 000
406 170
196 450
4 150
3 750
7 320
11 250
90 470
91 250
1 760
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Credit losses
Drawings
Capital
1 120
5 290
74 265
The following information, which has not been accounted for above, is also available:
1. Each of the above balances is a normal balance.
2. The inventory count as at 31 March 2025 showed closing inventory valued at N$21
195.
3. The annual rental for the business premises amounts to N$20 000 per annum.
4. Insurance has been paid until 30 June 2025.
5. A receivable owing N$2 000 has recently been downgraded by ratings agencies and is
experiencing severe cash-flow problems; as a result, Wallelepo- Nawa has
decided to write off this receivables account as irrecoverable. The allowance
for credit losses should be maintained at 6% of outstanding receivables.
6. The interest on the long-term investment has not yet been received.
7. Depreciation is to be provided
for as follows: Land & Building
(Not depreciated)
Equipment 15% reducing balance method
(Depreciation should be calculated to the nearest whole number).
Required:
(a) Prepare the Statement of Profit or Loss of Wallelepo-Nawa for the year ended 31
March 2025.
(20 Marks)
(b) Prepare the Statement of Financial Position Wallelepo-Nawa as at 31 March 2025.
(20 Marks)
Question 3
(20 Marks)
Part A
(14 Marks)
Patch Retailer had the following transactions during April 2025:
1. Received an EFT for N$1 200 from J Boden whose debt of N$1 800 was written off
as a credit losses for four months ago.
2. The account of D Crouse, a receivable whose account of N$4 000 has been in
arrears for three months, is charged with interest at a rate of 18% per annum.
3. The owner took inventory for his private use, N$800.
4. Paid N$200 out of the bank account on behalf of B Cloete, being transport cost on
goods delivered to him.
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5. Stationery was issued from trading inventory for use in the office, N$150. This
transaction has not yet been entered in the books.
6. Trading inventory not according to order is returned to the supplier (A & B
Wholesalers), N$900. This inventory was bought on account.
NB: The organization use a periodic inventory system.
Required:
Record the above transactions in a worksheet as shown below to show the effect on the
accounting equation and the source document for each transaction.
Date Assets
Equity
Liabilities
Source
document
1 June + N$10 000 Vehicle
-
+
N$10000 Debit note
Creditors
Part B
(6 Marks)
You are provided the following information extracted from the books of Haricool Air Conditioner
in the month of April 2025; a VAT vendor registered business.
1. Mr Sitapata bought a delivery vehicle that he intends using in his business, total
amount for the vehicle cost is N$380 000, he paid N$20 000 via EFT and the
remaining amount was still due to Auto House where he bought the vehicle.
2. The employees of Haricool Air Conditioners were paid their monthly salaries of N$50
000 using an electronic transfer fund (EFT) directly from the business bank account.
3. Repaired a client's air conditioner and received money via bank transfer for N$13
500.
4. Bought four new air conditioners from a non-registered VAT vendor to be installed at
a client premises next week and paid via EFT, N$28 000.
All amounts are inclusive of VAT, were applicable.
Round off all amounts to two decimal places.
Required:
Enter the above transactions in the general journal of Haricool Air Conditioner in the month
of April 2025
(6 marks)
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Question 4
(20 Marks)
Zanex CC was incorporated on 1 March 2022. On this date, the close corporation purchased
three (3) machines for N$20 000 each and office furniture for N$15 000.
On 31 May 2022, members decided to purchase a new delivery truck for N$600 000, a new
motor vehicle for N$40 000, and a second delivery van for N$20 000. All these purchases
were made on account from Auto House. On 31 January 2023, members decided to sell the
motor vehicle to WW Motors for N$40 000. The money for the sales was transferred via EFT
on 28 February 2023.
It is the corporation's policy to write off depreciation on furniture and equipment at 20% per
annum on the cost and all vehicles at 15% per annum using the reducing balance method.
The financial year end on 28 February.
Ignore VAT.
Required:
Make _useof,the information given above to draw up the following ledger accounts for the year
ended 28 February 2023 (the accounts must be properly balanced and closed off).
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(a) Vehicles
(b) Furniture and equipment
(c). Accumulated depreciation- vehicles
(d) Accumulated depreciation- equipment
(e) Depreciation
(f) Asset disposal
(3 Marks)
(3 Marks)
(6 Marks)
(1 Mark)
(3 Marks)
(4 Marks)
THE END
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