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BAC1100-BUSISNESS ACCOUNTING 1A-1ST OPP-JUNE 2025 |
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nAml BIA unlVERSITY
OFSCIEnCEAno TECHnOLOGY
FACULTY OF COMMERCE, HUMAN SCIENCESAND EDUCATION
DEPARTMENT OF ECONOMICS, ACCOUNTING AND FINANCE
COURSE CODE: BACll00S
COURSE NAME: BUSINESSACCOUNTING lA
SESSION: JUNE/ JULY 2025
PAPER: THEORY AND CALCULATIONS
DURATION: 2 HOURS
MARKS: 80
FIRST OPPORTUNITY EXAMINATION PAPER
EXAMINER
DR Z. VAN DER WALT
MODERATOR: MRS Y. ANDREW
INSTRUCTIONS
1. Answer ALL the questions on the answer sheet
2. Read all the questions carefully before answering.
3. All questions count for one mark unless otherwise indicated
4. The examination paper consists of 53 questions
5. The use of a non-programmable calculator is allowed
6. There is only one correct option, the shading of more than one
option will be marked as incorrect
7. Make sure to shade your student number correctly
THIS QUESTION PAPER CONSISTS OF 14 PAGES (Including this front page)
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Accounting Theory and Equation (14 Marks)
1. Trump is the Chief Financial Officer for World Trade (Pty) Ltd. Musk is the Chief
Lending Officer at Bank Windhoek, where World Trade (Pty) Ltd has a large bank loan.
Which statement is true for both Trump and Musk concerning the accounting
information for World Trade (Pty)?
a. Both are external users
b. Trump is an internal user, and Musk is an external user
c. Both are internal users
d. Murray is an internal user and Djokovic is an external user
e. None of the above
2. Which of the following persons can be an owner of a close corporation?
a. Trump (Pty) Ltd
b. Trump and Musk CC
c. Black Diamonds Ltd
d. Barron Trump
e. None of the above
3. The definition of accounting includes the following aspects. Which one of the
following options is incorrect?
a. Identify
b. Recording
c. Journalising
d. Measuring
e. None of the above
4. 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. Most users should understand information based on the assumption that they are
familiar with accounting.
c. Information should be understandable, as it is used for further planning.
d. Information should be understandable by the accounting staff of an entity.
e. None of the above options.
5. The Prudence concept means:
a. All significant information must be included in the financial statements, while items
that are not significant need not be shown separately in the financial statement.
b. Provides that income and expenses are recognised and recorded in the correct time
period
c. Provides that accountants should be conservative in preparing 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, procedures and guidelines for accountants to follow when
recording and reporting financial information
e. None of the above
6. 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
e. None of the above
7. Which of the following are the key responsibilities of an external auditor?
a. To ensure the company makes a profit
b. To oversee the day-to-day operations of a business
c. To verify the accounting records
d. To do the bookkeeping of the business
e. None of the above
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8. The owner's equity of a sole trader will change as a result of:
a. A credit customer is paying by cheque
b. Raw materials being purchased on credit
c. Non-current assets being purchased on credit
d. Petrol expenses incurred
e. None of the above
9. A sole trader purchases furniture on credit. What is the effect on the
accounting equation?
a. Assets and liabilities increase
b. Assets increase and equity decrease
c. Equity increases and liabilities decrease
d. Assets only increase
e. None of the above
10. A business borrows N$10,000 from the bank.
a. Assets and liabilities decrease
b. Assets increase and equity decrease
c. Equity increases and liabilities decrease
d. Assets and liabilities increase
e. None of the above
11. A sole trader increased the business' number of motor vehicles by adding his
own car to the fleet. Which elements of the accounting equation will change
due to this transaction?
a. Assets only increase
b. Equity increases and liabilities decrease
c. Assets increase and equity increase
d. Assets decrease, and liabilities decrease
e. None of the above
12. A sole trader borrows N$10,000 from the bank. Which elements of the
accounting equation will change due to this transaction?
a. Assets and equity increase
b. Assets increase, and liabilities increase
c. Assets only increase
d. Assets decrease, and liabilities increase
e. None of the above
13. The purchase of machinery for cash has the following effect on the accounting
equation?
a. Increases total assets
b. Decreases total assets
c. Keeps total assets unchanged
d. Increases assets and liabilities
e. None of the above
14. The business paid Paratus for wifi used. How will this transaction influence the
accounting equation?
a. Decrease in owners' equity and increase in assets
b. Decrease in liabilities and decrease in assets
c. Decrease in owners' equity and decrease in assets
d. Increase in liabilities and decrease in owners' equity
e. None of the above
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Theory on source documents and journals (10 marks)
15. 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. A duplicate invoice is given to the customer, and the transaction is entered in the
cash payment journal.
b. A original invoice is given to the customer, and the transaction is entered in the
cash receipt journal.
c. An original invoice is given to the customer, and the transaction is entered in the
sales journal
d. Duplicate credit note is given to the customer and the transaction is entered in the
cash receipt journal
e. None of the above
16. Goods are ordered from a supplier. What accounting document has been
prepared?
a. Invoice
b. Sales order
c. Goods received note
d. Purchase order
e. None of the above
17. The following transaction took place. Which source document was issued, and
in which journal was the transaction recorded? "Purchased goods from Mudge
CC on credit" (2 marks)
a. Our business received the original invoice, and the transaction was entered in the
purchases journal
b. Our business received the duplicate invoice, and the transaction was entered in the
purchases journal
c. Our business received the original credit note, and the transaction was entered in
the sales journal
d. Our business received the original invoice, and the transaction was entered in the
cash payment journal
e. None of the above
18. The Sales Journal, is also known as the?
a. Debtors Ledger
b. Return Inward Book
c. Sales Day Book
d. General Journal
e. None of the above
19. The following source document is applicable when the wholesaler sells
goods to our business. Choose the correct option.
a. The wholesaler issued a goods received note.
b. Our business issued an invoice.
c. Our business received the original invoice.
d. Our 0usiness issued goods received note.
e. None of the above
20. What is common about source documents?
a. The amount, transaction date, reference number, mode of delivery
b. Transaction date, amount, description of the transaction, the document number
c. The amount, the names of both businesses, a date, a description of the
transaction
d. A transaction and delivery date, the amount, a description of the transaction, the
document number
e. None of the above
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21. The following transaction took place. Which source document was applicable,
and in which journal was the transaction recorded? "Sold goods for cash" (2
marks)
a. The purchaser received a duplicate cash receipt, and the transaction was entered
into the sales journal.
b. The purchaser received the original cash receipt, and the transaction was
entered into the cash receipt journal.
c. The seller retained a duplicate invoice, and the transaction was entered into the
cash receipt journal
d. The seller retained an original credit note, and the transaction was entered into
the cash receipt journal
e. None of the above
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General Ledger (13 Marks)
22. The following totals were extracted from the sales journal of ABC Traders for
March 2025. The business is registered for Value Added Tax.
• Debtors: N$80,000
• Sales: N$56,000
• VAT: N$8,000
Choose the correct posting of the sales journal to the ledger accounts (3 marks)
Option a
Sales
Date Details
Fol Amount Date Details
Fol Amount
31/3 Debtors
SJ1 56,000
Debtors
Date Details
Fol Amount
Date
Details Fol Amount
31/3 Sales & SJ1 80,000
VAT
VAT
Details
Fol Amount Date Details
Fol Amount
Date
31/3 Debtors
SJ1 8,000
Option br--:,-------,--,---------.----=---,-----.--------S-a,.1e_s_---.--,.,.--------,r--:----:-.------------,
Date Details
Fol Amount Date Details
Fol Amount
31/3 Debtors
SJ1 80,000
Debtors
Date Details
Fol Amount Date Details
Fol Amount
31/3 Sales
SJ1 56,000
VAT
Details
Fol Amount
Date Details
Fol Amount
Date
31/3 Debtors
SJ1 8,000
Option c
Sales
,...,....D-a-te-----.-D-e-ta-i-ls----,-F=-o...,.I---.-A,-m_o_u_n_t---.-D-a_t_e-,-D_e_t_a:--:-ils------.--F=o---,l-----,--A-m
Date Details
Details
Date
31/3 Debtors
SJ1 80,000
Debtors
Fol Amount Date Details
Fol Amount
31/3 Sales & SJ1 64,000
VAT
VAT
Fol Amount Date Details
Fol Amount
31/3 Sales
SJ1 56,000
Option d~-~-------.--~
Date Details
___ S_a,.le_s_---.------.---.--------,
Fol Amount Date Details
Fol Amount
31/3 Debtors
SJ1 80,000
Debtors
Date Details
Fol Amount
Date Details Fol Amount
31/3 Sales and VAT SJ1 80,000
VAT
Details
Fol Amount Date Details
Fol Amount
Date
31/3 Sales
SJ1 8,000
Option e - None of the above is correct
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23. The following totals were extracted from ABC Traders' March 2025 cash payment
journal. The business is registered for Value Added Tax.
Creditors
VAT
Rent paid
50,000
10,650
11,000
Purchases 60,000
Bank
131,650
Choose the correct posting of the sales journal to the ledger accounts (5 marks)
Option a
Purchases
Date Details
Fol Amount Date Details
Fol Amount
1/3 Bank
CPJ1 60,000
Creditors
Date Details
Fol Amount Date Details
Fol Amount
1/3 Bank
CPJ1 50,000
VAT
Details
Fol Amount Date Details
Fol Amount
Date
31/3 Bank
CPJ1 10,650
Bank
Date Details
Fol Amount Date Details
Fol Amount
31/3 Total
CP 131,650
payments
J1
Rent Paid
Details
Fol Amount Date Details
Fol Amount
Date
31/3 Bank
CPJ1 11,000
Option b
Date Details
31/3 Bank
Date Details
31/3 Bank
Details
Date
31/3 Bank
Date Details
Details
Date
31/3 Bank
Purchases
Fol Amount Date
CPJ1 60,000
Creditors
Fol Amount Date
CPJ1 50,000
VAT
Fol Amount Date
Details
Details
Details
CPJ1 10,650
Bank
Fol Amount Date Details
31/3 Total
payments
Rent Paid
Fol Amount Date Details
CPJ1 11,000
Fol Amount
Fol Amount
Fol Amount
Fol Amount
CPJ1 131,650
Fol Amount
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Option c
Date Details
Date Details
31/3 Bank
Details
Date
31/3
Date Details
Details
Date
31/3 Bank
Purchases
Fol Amount Date Details
31/3 Bank
Creditors
Fol Amount Date Details
CPJ1 50,000
VAT
Fol Amount Date Details
31/3 Bank
Bank
Fol Amount Date Details
1/3 Total
payments
Rent Paid
Fol Amount Date Details
CPJ1 11,000
Fol Amount
CPJ1 60,000
Fol Amount
Fol Amount
CPJ1 10,650
Fol Amount
CPJ1 131,650
Fol Amount
Option d
Date Details
31/3 Bank
Date Details
Details
Date
31/3 Cash
Date Details
Details
Date
31/3 Bank
Option e - None of the above
Purchases
Fol Amount Date Details
CPJ1 60,000
Creditors
Fol Amount Date Details
31/3 Bank
VAT
Fol Amount Date Details
CPJ1 10,650
Bank
Fol Amount Date Details
31/3 Totalde osits
Rent Paid
Fol Amount Date Details
CPJ1 11,000
Fol Amount
Fol Amount
CPJ1 50,000
Fol Amount
Fol Amount
CPJ1 131,650
Fol Amount
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24. The salaries and wages account is shown below. Carefully consider the year end
closing of the account and choose the correct option. You can assume that the
amounts posted from the journals are correct
0 tion a
Date Details
3113 Bank
Salaries and wa es
Fol Amount Date Details
CB1 50,000 3113 Profit/Loss
Fol Amount
GL 50,000
Details
Bank
Salaries and wa es
Fol Amount Date Details
CB1 50,000 3113 Balance bid
Fol Amount
GL 50,000
0 tion c
Date Details
3113 Balance bid
0 tion d
Date Details
3113 Profit/loss
Salaries and wa es
Fol Amount Date Details
50,000 3113 Bank
Salaries and wa es
Fol Amount Date Details
GL 50,000 3113 Bank
Fol Amount
CB 50,000
Fol Amount
CB 50,000
25. A Debtor's account is shown below. Which of the following options are correct?
You can assume that the amounts posted from the journals are correct (4 marks)
0,pf,on a
Debtors
Date Details
Fol Amount Date Details
Fol Amount
3113 Sales
SJ1 50,000 3113 Sales Returns SRJ1 10,000
Balance bid
10,000
Bank
CB 30,000
50,000
50,000
0Ip rIOn b
114 Balance clo
D e bt ors
10,000
Date Details
Fol Amount Date Details
Fol Amount
3113 Sales Returns SRJ1 10,000 3113 Sales
SJ1 50,000
Balance bid
70,000
Bank
CB 30,000
80,000
80,000
o1pr,on c
114 Balance c/o
D e bt ors
70,000
Date Details
Fol Amount Date Details
Fol Amount
3113 Sales
SJ1 50,000 31/3 Sales Returns SRJ1 10,000
Bank
CB 30,000
Balance bid
10,000
50,000
50,000
1/4 Balance clo
10,000
0Ipf·Ion d
De btors
Date Details
Fol Amount Date Details
Fol Amount
3113 Sales
SJ1 50,000 31/3 Sales Returns SRJ1 10,000
Bank
CB 30,000
Balance b/d
10,000
50,000
50,000
1/4 Balance c/o
10,000
Option e. None of the above
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Trial Balance (8 marks)
26. The essential purpose of preparing a trial balance is:
a. To calculate the equity
b. To show the financial position of the business
c. To show the profit of the business
d. To calculate the net purchases of the business
e. None of the above
27. Which of the following is correct about an agreed trial balance:
a. Both debit and credit aspects of each transaction have been recorded
b. The books are arithmetically correct
c. The debit and credit columns are correctly summed
d. All of the above
e. None of the above
28. A trial balance prepared after taking into account the effect of adjusting entries
is known as:
a. Financial trial balance
b. Adjusted trial balance
c. Post-adjusted trial balance
d. Normal trial balance
e. None of the above
29. Which of the following is placed in the credit column of the trial balance
a. Purchases
b. Rent expense
c. Furniture
d. Sales
e. None of the above
30. Which of the following is placed in the debit column of the trial balance
a. Capital
b. Accounts payable
c. Salaries and wages
d. Loans
e. None of the above
31. What records or books are used when preparing a trial balance
a. Specialised Journals
b. LedgerAccoun~
c. Balance Sheet
d. General Journal
e. None of the above
32. When is a trial balance typically prepared?
a. At the end of an accounting period
b. At the end of a year
c. Frequently during the year
d. At the end of a month
e. None of the above
33. Which of the following is placed in the debit column of the trial balance
a. Capital
b. Loans
c. Creditors
d. Drawings
e. None of the above
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Bank Reconciliation (7 marks)
The following questions assume that the bank reconciliation commences with the
closing balance on the bank statement.
34. On the bank statement, cash paid is shown as a?
a. Credit entry
b. Expense
c. Profit
d. Debit entry
e. None of the above
35. In the cashbook, cash received is shown as a?
a. Debit entry
b. Credit entry
c. Income
d. Expenses
e. None of the above
36. Interest received of N$450 appears on the bank statement but not in the cash
book. This transaction will be recorded on the:
a. Credit side of the bank account
b. Debit side of the bank account
c. Credit column of the bank reconciliation
d. Debit column of the bank reconciliation
e. None of the above is correct
37. The bank deducted N$100 from the bank statement. This deduction was an error
and should be deducted from another bank client. The error will be corrected as
follows:
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
e. None of the above is correct
38. A payment of N$4000 appears in the business's cashbook, but not on the bank
statement. The following entry will be done:
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
d. N$4,000 will be recorded on the credit column of the bank reconciliation
e. None of the above
39. Which of the following items on a bank reconciliation would require an adjusting
entry on the company's cashbook?
a. An error by the bank
b. Bank charges
c. Outstanding deposits
d. None of the above
e. All of the above
40. What is the Cash Book debit balance equivalent to?
a. Credit Balance as per bank statement
b. Overdraft as per bank statement
c. Overdraft as per cashbook
d. None of the above
e. All of the above
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Value Added Tax (VAT) Theory (7 Marks)
41. Which one of the following is a zero-rated VAT supply?
a. Motor oil sold to a Namibian customer
b. Salaries paid to employees
c. Direct exports to Zimbabwe
d. Indirect exports to Botswana
e. None of the above.
42. Which one of the following is not a taxable VAT supply?
a. Transport by taxi from the campus to Katutura Hospital.
b. Bank Charges
c. Spur burger to a South African passport holder
d. A pair of jeans brought from Ackermans.
e. None of the above
43. Which one of the following forms of transport is a zero-rated taxable supply?
a. Travelling with the Inter Cape bus to Katima Mulilo
b. Travelling with Fly Namibia to Johannesburg
c. Travelling with a shuttle to Keetmanshoop
d. Travelling by bus to Rehoboth
e. None of the above
44. VAT on N$10,000 interest received from the bank will be calculated as?
a. N$10,000 x 15%
b. N$10,000x15/115
c. Interest received is a zero-rated supply
d. Interest received is exempted from VAT
e. None of the above
45. Assuming the business sells goods for N$7,000 and purchases for N$3,000.
Calculate the VAT net effect. VAT is exclusive in this scenario (2 marks)
a. N$600 expense
b. N$600 liability
c. N$522 asset
d. N$522 expense
e. None of the above
46. 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 an income
e. None of the above
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Year-end adjustments and Financial Statements (21 Marks)
L'1stof baIances of ABC Traders as on 28th Februarv 2025
Capital
750,000
Drawings
120,000
Land and Buildings at cost
660,000
Vehicles at cost
270,000
Accumulated depreciation: Vehicles
54,000
Inventory (1/3 2024)
150,000
Accounts Receivable
162,000
Accounts Payable
120,000
Bank
75,000
18% Mortgage bond on the land and buildings
360,000
Sales
1,101,000
Purchases
630,000
Salaries and wages
270,000
Telephone
9,660
Insurance
13,500
Stationery
2,160
Advertising
10,500
Rent Received
99,000
Notes:
• A debtor owes N$1,500 is insolvent, and the account is written off.
• The interest on the bond has not been accounted for. The bond was registered
in 2009.
• The telephone account of N$900 is still outstanding
• The rent received for February 2025 is still outstanding.
• Using the straight-line method, depreciation on motor vehicles is charged at
10% of the cost. No residual value is applicable.
• Inventory as per the inventory count on year-end is presented as N$120,000.
47. Cost of sales will be calculated as? (3 marks)
a. N$660,000
b. N$780,000
c. N$200,000
d. None of the above options
48. Assume a gross profit of N$500,000, calculate the gross income (3 marks)
a. 500,000
b. 599,000
C. 509,QQQ
d. 608,000
e. None of the above
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49. The following is true regarding the depreciation on motor vehicles (3 marks)
a. The current depreciation is N$27,000, the accumulated depreciation as of 28th
February 2025 is N$81,000, and the net book value as of 28th February 2025
is N$189,000.
b. The current depreciation is N$9,000, the accumulated depreciation as on 28th
February 2025 is N$18,000 and the net book value as on 28th February 2025
is N$72,000
c. The current depreciation is N$27,000, the accumulated depreciation as on 28th
February 2025 is N$27,000 and the net book value as on 28th February 2025
is N$63,000
d. The current depreciation is N$27,000, the accumulated depreciation as on 28th
February 2025 is N$81,000 and the net book value as on 28th February 2025
is N$216,000
50. The following entries relate to the telephone account (2 marks)
·- a. Accrued expenses of N$900, total telephone expense of N$9,660
.b. Accru~d ·expenses of N$900, total telephone expense of N$10,560
· c. Accn,1.edexpenses bf N$900, total telephone expense of N$8,760
d. A prepaid expense of N$900, total telephone expense of N$9,660
e. None of above is correct
51. The following entries relafe to the interest payable account (2 marks)
a., Accrued expenses.of N$64,800 and a profit and loss effect of -N$64,800
. . 1b. ·Prepaid expenses bf N$64,800 and a profit and loss effect of N$64,800
'' • • 1 c.' ··Accrued 'expenses of N$108,800 and a profit and loss effect of N$108,800
d. Prepaid expenses of N$108,800 and a profit and loss effect of -N$108,800
52. The total current liabilities will be shown as (3 marks)
a. N$120,000
b. N$64,800
c. N$185, 700
d. N$40,200
53. The total current assets will be shown as (5 marks)
a. N$357,000
b. N$162,000
c. N$237,000
d. N$1500
e. None of the above
THE END OF EXAMINATION PAPER
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