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BAC611C-BUSINESS ACCOUNTING 2A- 2ND OPP-JAN 2025 |
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nAmlBIA
UntVERSITY
OF SCIEnCEAno
TECHnOLOGY
HAROLDPUPKEWITZ
GraduateSchoolof Business
FACULTY OF COMMERCE, HUMAN SCIENCESAND EDUCATION
HAROLD PUPKEWITZGRADUATESCHOOLOF BUSINESS
QUALIFICATION:DIPLOMA IN BUSINESSPROCESSMANAGEMENT
QUALIFICATIONCODE:06DBPM LEVEL:6
COURSECODE: BAC611C
COURSENAME: BUSINESSACCOUNTING2A
SESSION:JANUARY2025
PAPER:PAPER2
DURATION: 3 HOURS
MARKS: 100
EXAMINER
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FIRST OPPORTUNITY EXAMINATION QUESTION PAPER
Lameck Odada
MODERATOR Gerhardt Sheehama
INSTRUCTIONS
1. This question paper comprises four (4) questions.
2. Answer ALLthe questions in blue or black ink only. NO pencil
3. Start each question on a new page in your answer booklet and show all workings.
4. Work with four (4) decimal places in all your calculations and only round off only final
answers to two (2) decimal places unless otherwise stated.
5. Questions relating to this examination 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.
PERMISSIBLEMATERIALS
Silent, non-programmable calculators
THIS QUESTION PAPERCONSISTSOF 7 PAGES(including this front page)
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QUESTION 1
[20 MARKS]
For questions 1.1 -1.10, write the answer only (the correct letter chosen) in your answer
book and not on the question paper.
1.1 The journal entry for credit sales of goods to accounts receivable is:
a) sales Dr. & Accounts Receivable Cr.
b) accounts Receivable Dr. & Sales Cr.
c) cash Dr. & Sales Cr.
d) sales Dr. & Accounts Payable Cr.
1.2 The cash discount (also known as purchase discount or sale discount) is given to
customers for:
a) early payments
b) the bulk purchases
c) frequent purchases
d) good business relations
1.3 The accounts receivable that cannot be collected because of their bankruptcy or another
reason are termed:
a) collectible accounts
b) bad customers
c) doubtful accounts
d) uncollectible accounts
1.4 Accounts receivables are reported in the statement of financial position:
a) at face value
b) at gross value
c) at net realizable value
d) at net credit sales value
1.5 A soundly developed conceptual framework of concepts and objectives should
a) increase financial statement users' understanding of and confidence in financial
reporting.
b) enhance comparability among companies' financial statements.
c) allow new and emerging practical problems to be more quickly solved.
d) all the above
1.6 The underlying theme of the conceptual framework is
a) decision usefulness.
b) understandability.
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c) reliability.
d) comparability.
1.7 Which of the following is not among the ingredients of the fundamental quality of
faithful representation?
a) freedom from error.
b) neutrality.
c) materiality.
d) completeness.
1.8 Enhancing qualities of accounting information include:
a) comparability and verifiability.
b) relevance and consistency.
c) comparability and materiality.
d) relevance and faithful representation.
1.9. Enhancing qualities of accounting information include all of the following except:
a) comparability.
b) understandability.
c) neutrality.
d) timeliness.
1.10. An ingredient of relevance is:
a) freedom from error.
b) neutrality.
c) comparability.
d) materiality.
[10 X 2 = 20]
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QUESTION 2
[32 MARKS]
Julitha and Ashlynne are in partnership. They share profits and losses in the ratio of 60:40,
respectively. The following is their trial balance as at 30 September 2024.
Buildinqs (cost N$105 000)
Fixtures at cost
Provision for depreciation:
Accounts receivables
Accounts payable
Cash at bank
Inventory at 30 September 2021
Sales
Purchases
Carriaqe outwards
Discounts allowed
Loan interest:
Office expenses
Salaries and wages
Bad debts
Allowance for doubtful debts
Loan from P Prince
Capitals:
Current accounts:
Drawinqs:
Fixtures
P Prince
Julitha
Ashlvnne
Julitha
Ashlynne
Julitha
Ashlynne
Dr (N$)
80,000
4,100
30,700
3,065
31,370
105,000
1,705
310
1,950
2,380
28,905
816
15,900
14,100
320,301
Cr (N$)
2,100
13,295
181,556
700
32,500
50,000
37,500
2,050
600
320,301
Additional information
• Inventory, 30 September 2024, N$37 105
• Expenses to be accrued: Office expenses N$108; wages N$360
• Depreciation fixtures 15% on a reducing balance basis; buildings N$2 500
• Reduce provision of doubtful debts to N$ 625
• Partnership salary: N$15 000 to Julitha. Not yet entered
• Interest on drawings: Frame N$450; French N$300
• Interest on capital account balances at 5%
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REQUIREMENT:
a··, Prepare the partnership statement of profit or loss for the year ended 30
September 2024
b' Prepare the partnership profit and loss appropriation account for the year
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ending 30 September 2024
MARKS
20
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QUESTION 3
[20 MARKS]
Diesel-Electric (DE) is one of Namibia's biggest suppliers of automotive products. They offer a
vast range of services such as automotive air conditioning, auto workshop, battery testing &
recharging, Bosch service training, automotive computer diagnostics, and much more. With
branches in Windhoek, Otjiwarongo, Tsumeb, Oshakati, Swakopmund, and Walvis Bay, they
provide services in most parts of Namibia. Below is the abridged statement of the financial position
of DE for the year ended 28 February 2024.
2024
2023
Non-current assets
Buildinas
500,000
500,000
Fixtures
200,000
180,000
Motor vehicles
547,000
289,000
Current assets
lnventorv
841,000
300,000
Receivables
597,000
486,000
Bank
15,000
345,000
Total assets
2,700,000
2,100,000
Equity:
Capital
1,610,000
1,550,000
Additional capital
250,000
Profit for the vear
790,000
680,000
Less: DrawinQs
-780,000
-620,000
1,870,000
1,610,000
Liabilities
Creditors
204,000
290,000
Bank Overdraft
126,000
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Loans
500,000
200,000
Total equity and liabilities
2,700,000
2,100,000
• Fixtures bought in 2024 cost N$40 000 and a motor vehicle was also bought for exactly
N$400 000.
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REQUIREMENT
MARKS
a) Draw up the statement of cash flows of Diesel Electric for the year ended 28 13
February 2024 using the indirect method.
b) Highlight any three (3) uses of a statement of cash flows
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c) Explain any two (2) limitations of a cash flow statement
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QUESTION 4
[28 MARKS]
Established on 29 October 1920, Namibia Breweries Limited (NBL) is one of Namibia's leading
beverage manufacturing companies and, indeed, in Southern Africa. Today, NBL leads the
domestic beer market and has a significant share of the premium beer category in South Africa.
You have been provided with the financial statements of NBL for the year ended 30 June 2022.
Statement of financial position as at 30 June 2024
ASSETS
Non-current assets- Net plant and equipment
Current assets
Inventory
Accounts receivable
Cash
Total current assets
TOTAL ASSETS
EQUITY AND LIABILITIES
Share capital
Retained profit
Total equity
Non-current liabilities
Long-term borrowings
Current liabilities
Trade and other payables
Short-term borrowings
Total current liabilities
TOTAL EQUITY AND LIABILITIES
2024
N$'000
19167
4 906
2 510
906
8 322
27 489
10 000
10 209
20 209
4 960
1 480
840
2 320
27 489
2023
N$'000
15 164
4 608
2 405
815
7 828
22 992
10 000
6 367
16 367
4 817
1 088
720
1 808
22 992
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Statement of profit or loss for the year ended 30 June 2024
Revenue
Cost of sales
Depreciation
Profit Before Interest and Tax
Interest paid
Net profit before tax
Taxes
Net profit after tax
Dividends
Additions to retained profits
2024
N$'000
33 500
18 970
1 980
12 550
486
12 064
4 222
7 842
4 000
3 842
2023
N$'000
29 150
16 290
1 650
11 210
463
10 747
3 761
6 986
4 000
2 986
REQUIREMENT: assume a 365-day year, compute the following ratios for 2023 and MARKS
2024, and comment on whether the ratio has improved or deteriorated.
a) Current ratio
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b) Quick/Acid test ratio
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c) Debtors' collection period
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d) Creditors settlement period
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e) Gross profit margin
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f) Return on Equity (ROE)
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g) Explain any two (2) limitations of ratio analysis
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END OF EXAMINATION QUESTION PAPER
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