2013 BAC1100 Test 1

POLYTECHNIC OF NAMIBIA
SCHOOL OF ECONOMICS AND FINANCE
DEPARTMENT OF ACCOUNTING
-------------------------------------------------------------------------------------------------------------
PROGRAM: VARIOUS
COURSE: BUSINESS ACCOUNTING 1A
-------------------------------------------------------------------------------------------------------------
DATE: 23 March 2013 (TEST 1)
DURATION: 1.5 HOURS
MARKS: 40
-------------------------------------------------------------------------------------------------------------
INSTRUCTIONS
1. Answer ALL the questions.

2. Start each question on a NEW PAGE.
3. Show ALL workings
-------------------------------------------------------------------------------------------------------------
EXAMINER: Mr Kamotho D. and Mr Sheehama G.
MODERATOR: Ms Kangootui E., Ms Stellmacher Z., Mr Dreyer W., Mr Mutonga S.

and Mr Mushonga E.
This paper consists of 4 pages excluding this cover page
0
QUESTION 1 (10 marks)
Answer this question ON the Answer Sheet on Page 4 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:
1.1 One of the following statements is true
A Assets = Capital + Drawings
B Assets Liability = Capital - Income
C Assets Capital = Current assets
D Assets + Liability = Owners equity
E Assets Liability = Owners equity
1.2 Credit entries in the ledger accounts will:

1.3
A Increase both assets and liability
B Increase both income and expense
C Decrease both assets and liability
D Decrease both assets and drawings
E Decrease assets and increase expense
1.4 One of the following statements is not true

A The sales journal is also called debtors journal.
B The sales journal is a book of prime entry of credit sales.
C The sales journal is a book of original entry of cash sales.
D The sales journal is not a source document.
E The sales journal is not cash receipt journal.
The following details refer to Questions 1.4 and 1.5:

Total assets amount is N$120 000
Total liabilities are three quarter ( ) of owners equity/capital.
1.4 What is the amount of total liabilities?

A N$96 000
B N$90 000
C N$24 000
D N$15 000
E N$10 000
1.5 What is the amount of owners equity/capital?

A N$96 000
B N$90 000
C N$24 000
D N$15 000
E N$10 000
1
1.6 Bob uses his business account to pay for his monthly personal rent bills.
State the accounting principle or concept that was not adhered to
A Matching concept
B Prudence
C Accounting entity
D Accounting period
E Going concern
1.7 A piece of land bought in year 2010 for N$110 000 was recorded at that price even
though it was valued at N$200 000. Which accounting principle or concept is adhered to
A Matching concept
B Monetary unit
C Accounting entity
D Historical cost
E Going concern
1.8 Inventory is valued at the lower of cost. This is an example of:
A Matching concept
B Monetary unit
C Accounting entity
D Historical cost
E Prudence
1.9 Financial accounting
A has its primary emphasis on the future

B provides data for internal use by managers of a business
C A branch of management accounting
D Concerned with the provision of information to help managers
make decisions
E is required by regulatory bodies
1.10 Motor vehicle purchased on credit from Toyota cc. Which account is debited?
A Purchase returns a/c

B Motor vehicle a/c
C Purchase a/c
D Creditor a/c
E Toyota cc a/c
2
The following transactions took place during the month of March in the books of account of Ms
Kaka, a sole trader:
2013
March 1 Ms Kaka opened a business bank account and deposited a cheque of
N$150 000
6 She purchased a motor vehicle for N$120 000 on credit from Mayo Vehicle CC.
10 She bought goods on credit from Pau for N$5 000.
11 She sold goods on credit to Sono for N$3 000.
21 Sono paid Ms Kaka N$1 000 for the goods bought on credit and claimed a
discount 5% for early payment.
25 Ms Kaka settled her account with Pau by cheque and was given a settlement
discount of 10%.
Required:
1. Identify the journal and source document used by Ms Kaka to record each of the above
transactions.
e.g. Journal Source document

1 March Sales journal Receipt
2. State what accounts would be debited and credited to record the above
transactions.
1. Identify four (4) external users of accounting information. State the interest they will
have in the accounting records. (8)
2. Explain what you understand by the following fundamental accounting concepts:
a. Periodicity concept (2)
b. Going concern concept (2)
c. Consistency concept (2)
3
END OF TEST QUESTION PAPER.
BUSINESS ACCOUNTING 1B (BAC1100) March 2013
LECTURER: STUDENT NUMBER:
1.1 A B C D E
1.2 A B C D E
1.3 A B C D E
1.4 A B C D E
1.5 A B C D E
1.6 A B C D E
1.7 A B C D E
1.8 A B C D E
1.9 A B C D E
1.10 A B C D E
Total marks
4
MEMO
BUSINESS ACCOUNTING 1A (BAC1100) March 2013
LECTURER: STUDENT NUMBER:
1.1 A B C D (1)
1.2 A B C E (1)
1.3 A B D E (1)
1.4 A B C D E (0)
1.5 A B C B E (0)
1.6 A B B E (1)
1.7 A B C E (1)
1.8 A B C D (1)
1.9 A B C D (1)
1.10 A C D E (1)
8/8 x 10 = 10 marks
5
1. = (8 marks)
Date Journal Source document/s
Cash receipt Narration, Deposit

1 March General Journal slip, bank statement
6 March General Journal Invoice
10 March Purchases Invoice- original
11 March Sales Journal Invoice- duplicate
Cash receipt Journal Deposit slip, bank

21 March General Journal statement, receipt
Deposit slip, bank

Cash payment Journal statement, Cheque
25 March General journal counterfoil, receipt
2. = (8 marks)
Date Debit Credit
1 March Bank Capital
6 March Motor vehicle Mayo Vehicle CC
10 March Purchases Paul
11 March Sono Sales
Bank/cash Sono
21 March Discount allowed Sono
6
Paul Bank
25 March Paul Discount received
1. Any four of the following but not limited; ( 8 marks)
Bank: to ensure that they are repaid amounts due.

Suppliers/creditors: to check that they will be paid amounts due.
Customers: to check that they will be supplied with orders made.
Government: to confirm the amount of taxes due.
Local community: to provide jobs in the local area.
Competitors: to compare the performance of the business against.
Potential investors: to check whether the business is worth investing in.
2. Any statement that makes sense. ( 6 marks) (2 marks each)
a. Periodicity Assumes that a business activities can be divided up and reported in

defined period, for example, annual, quarterly and monthly financial
statements
b. Going Concern
Assumes, unless there is evidence to the contrary, that a company is
not going broke. This has important implications for the valuation of
assets and liabilities.
c. Consistency Transactions and valuation methods are treated the same way from
year to year, or period to period. Users of accounts can, therefore,
make more meaningful comparisons of financial performance from
year to year. Where accounting policies are changed, companies are
required to disclose this fact and explain the impact of any change.

2013 BAC1100 Test 1

Uploaded by

Copyright:

Available Formats

2013 BAC1100 Test 1

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

2013 BAC1100 Test 1

Uploaded by

Copyright:

Available Formats

POLYTECHNIC OF NAMIBIA

SCHOOL OF ECONOMICS AND FINANCE

COURSE: BUSINESS ACCOUNTING 1A

DATE: 23 March 2013 (TEST 1)

DURATION: 1.5 HOURS

1. Answer ALL the questions.

MODERATOR: Ms Kangootui E., Ms Stellmacher Z., Mr Dreyer W., Mr Mutonga S.

This paper consists of 4 pages excluding this cover page

1.2 Credit entries in the ledger accounts will:

1.4 One of the following statements is not true

The following details refer to Questions 1.4 and 1.5:

1.4 What is the amount of total liabilities?

1.5 What is the amount of owners equity/capital?

1.8 Inventory is valued at the lower of cost. This is an example of:

1.9 Financial accounting

A has its primary emphasis on the future

A Purchase returns a/c

March 1 Ms Kaka opened a business bank account and deposited a cheque of

10 She bought goods on credit from Pau for N$5 000.

11 She sold goods on credit to Sono for N$3 000.

e.g. Journal Source document

QUESTION 3 (14 marks)

a. Periodicity concept (2)

b. Going concern concept (2)

c. Consistency concept (2)

BUSINESS ACCOUNTING 1B (BAC1100) March 2013

LECTURER: STUDENT NUMBER:

LECTURER: STUDENT NUMBER:

QUESTION 1 (10 marks)

Date Journal Source document/s

Cash receipt Narration, Deposit

6 March General Journal Invoice

10 March Purchases Invoice- original

11 March Sales Journal Invoice- duplicate

Cash receipt Journal Deposit slip, bank

Deposit slip, bank

Date Debit Credit

1 March Bank Capital

6 March Motor vehicle Mayo Vehicle CC

10 March Purchases Paul

11 March Sono Sales

1. Any four of the following but not limited; ( 8 marks)

Bank: to ensure that they are repaid amounts due.

2. Any statement that makes sense. ( 6 marks) (2 marks each)

a. Periodicity Assumes that a business activities can be divided up and reported in

You might also like