FACULTY OF MANAGEMENT SCIENCES

DEPARTMENT: ACCOUNTING, ECONOMICS AND FINANCE

QUALIFICATION : Bachelor of Accounting

QUALIFICATION CODE: 07BOAC/07BACC LEVEL: 7

COURSE: Computerised Accounting 301 COURSE CODE: CAC710S

DATE: July 2020 SESSION: Evening

DURATION: 3 Hours 30min (including submission) MARKS: 100

FINAL ASSESSMENT QUESTION PAPER

EXAMINER(S) Y Elago & E Kangootui

MODERATOR: C. Mahindi

THIS TEST PAPER CONSISTS OF 7 PAGES

(Excluding this front page)

INSTRUCTIONS
1. This assessment paper is made up of three questions which are related.
2. Make sure that your student number appears on the reports. (Computer printout)
3. It is your responsibility to see that all the reports are handed in.
4. Use of internet or any communication devices is prohibited.
5. Round off all calculated amounts to two decimal places
6. Bank statement is attached on page 7 as “Annexure A”
Question 1 (15 Marks)

Ester resigned from her employment on 31st December 2017. She started a Television repair center
Kangonga Television (Pty) Ltd in Windhoek on 1st March 2018. She purchased all non-current assets
and applied for a cheque account at Capitec Ltd that same day. Payment of smaller expenses will be
affected through petty cash with an imprest amount of N$4000. The centre began by selling only to cash
customers and purchasing on cash. However, the business extended into selling television sets and
accessories and also buys and sells on credit. She uses the balance forward method of processing.
Kangonga television is registered with inland of revenue for VAT (Value Added Tax) purposes. VAT
processing (customers & suppliers) 15%, assume all amounts are exclusive, unless otherwise stated

A year later she purchased an accounting package and requested your assistance in capturing the
transactions on the system as at that date.

She will purchase from the following two suppliers on credit.

HIFI Corp Ltd Incredible

connection (Pty)
Ltd

Code HI001 IN001

Contact name Lydia Theo

Credit Limit N$ 50 000 N$ 40 000

Some of the following creditworthy customers will be buying on credit in the future. Customers will still
be able to buy on a cash basis. To encourage cash sales, a 3% cash discount will be allowed.

Customer Jousy Nangolo Albert Tjaveondja Haufiku Pashukeni

Code JOU001 ALB001 HAU001

Contact name Jousy Albert Haufiku

Credit Limit N$ 10 000 N$ 15 000 N$ 20 000

Postal Address 2908, Windhoek 2907, Khomasdal 200, Katutura

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Trial balance as at 1st March 2019 for Kangonga Television (Pty) Ltd.

Directors sitting allowance 4 000

Shelves & Cabinets @ Cost 100 000

HP Laptops @ Cost 50 000

Motor Vehicle @ Cost 110 000

Cash 20 000

Bank (Debit Balance as per Cashbook) 32 000

Loan to Mr kondwa (Shareholder) 70 000

Accounting fees 4 500

Interest on loan: Mr Kondwa 8 000

Motor Vehicle full service kit 6 000

Rent expense 40 000

Employee remuneration 35 000

Revenue 686 500

Haufiku Pashukeni 3 000

HIFI Corp Ltd 2 500

Power costs 9 000

Franchise charges 8 000

Photocopy charges 3 000

Retained Earnings/(Loss) ???

Shares: Authorised share capital consist of 355 000 Shares of N$ 2.50 per value. Unissued share
capital equals 70 000 shares.

The company uses the cost model to account for all non-current assets. The assets have a residual
value equivalent to 10% of the cost. All non-current assets are expected to be in use over a period of
five years and are depreciated using the straight-line methods.

Required: You are required to capture the above opening balances of the various accounts including
accumulated depreciation for non-current assets as at 1 March 2019 (Period one), update al batches
and move on to the next question

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Question 2 (40 Marks)

Payments effected during the 12th month

DATE Description Payment No. AMOUNT N$

01 Rent for the month EFT 001 1,500.00

01 Novel ford - ford figo 4 EFT 002 60 000.00

05 Municipality Bill EFT 003 4,888.00

09 NATIS EFT 004 699.00

11 Juice & Biscuits for Clients CASH 150.00

12 Sanlam Policy EFT005 4,650.00

12 Mweb EFT 006 1 300.75

13 Namibia Chamber of Commerce & EFT 007 2400.50

Industry (NCCI)
16 Repairs office Toilets EFT 008 14 064.00

17 Account payment – HI001 EFT 009 2499.25

20 Repaint Main building CASH 4,400.00

21 Nam Post mails EFT 010 3,000.00

22 Multi Choice Namibia EFT 011 2,500.00

23 Taurus Cleaning Services EFT 012 5,600.00

25 Petty cash EFT 013 4 000.00

27 Year End Function EFT 014 6,000.00

Receipts effected during the 12th month

DATE Description Payment No. AMOUNT N$

10 Cash sale REC 001 85 700.00

16 HAU001Payment (EFT 207) REC 002 29 560.00

19 Cash sale REC 003 93 500.00

20 5% Debenture (EFT 202) REC 004 200 000.00

28 Motor Vehicle Disposal (EFT) (see note REC 005 44 000.00

below)
Note:

The original cost of that Motor Vehicle was N$65 000

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Required:

2.1 Process the above transactions in the appropriate cashbooks in period 12. (30 Marks)
2.2 Process the bank reconciliation for period 12 (10 Marks)
2.3 Update all batches and move on to the next question

(Bank statement on the last page7)

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Question 3 (45 Marks)

Additional information:

a) Stationery bought form Waltons for N$600 was incorrectly debited to the telephone account.

b) Ester’s private telephone bill was paid from the business’s cheque account and debited to the
telephone account, N$350.

c) Kangonga television (Pty) Ltd signed a lease contract for the premises on 26th February 2019.
The lease contract provides for a monthly rental of N$2 500.

d) Bought 5 Television (TV202) from Incredible connection Ltd, and 8 decoders (DD205) from HIFI
(Pty) Ltd worth N$50 000 and N$20 000 respectively on credit and a 5% settlement discount will
be granted upon payment.

Inventory items are sold @ a gross profit margin of 20%

e) Sold 2 TV’s and 4 decoders to Jousy Nangolo with a 7% discount on the decoders.

f) Receiver of revenue determined the income tax as N$45 000 which was settled immediately.

g) Allowance for irrecoverable debts was pegged at N$5 500, by the directors.

h) On 31 August 2019, one of the firm’s HP Notebook with a cost price of N$25 000, was stolen at
the firm’s premises after working hours. This computer was replaced by a new Lenovo
Notebook with a cost price of N$20 000 cash. The insurance company compensated the firm
with an amount of N$10 500 (EFT110).

i) The directors of the company declared dividend on all outstanding shares at N$0.20 per share.

j) The auditors discovered an amount of $23 000 for commission received was incorrectly
recorded on the debit side of discount received account.

k) A machine with a life span of 5 years was bought from a company Home Corp (HOM600) on 1
Sept 2019 on account and was delivered on the same date at the firm’s premises. Kangonga
Television (Pty) received an invoice from Samsung totaling N$ 130 000 which made up for the
following items:

I. Actual invoice amount for the machine N$ 94 500

II. Installation cost of machine done at the firm premises N$ 11 500

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 III. Testing cost of the machine was N$ 20 000

IV. Entertainment cost of the specialist who installed the machine N$ 5 000
Kangonga Television (Pty) Ltd has a legal obligation to dismantle the machine at the end
of its useful life. The dismantling will cost N$40 000 at the end of 5 years. The current
average cost of capital is 12%. No entries were recorded in the books.

l) Jousy Nangolo returned a faulty decoder which was then returned to the supplier.

m) Depreciation for the current year is yet to be provided for and account for any other necessary
year-end adjustments which relates to the above information
Required:

Process the above transactions in period 12, update all batches, and print out the following reports:

1. Print out a detailed ledger for Kangonga Television for the year ended 29 February 2020
(View – General ledger – Transaction – Detailed ledger)
 Account start 1000 – Account end 9990
 Sub account start 000 – Sub account end 999
 Period 1 – period 12

2. Print out suppliers and customer’s detailed ledgers.

 Customers: View – Customers – Detailed ledger – By customers
 Suppliers: View – Suppliers – Detailed ledger – By suppliers
 Period: 1 – Period 12

====================End of final assessment=========================

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 Annexure A (Bank Statement)

Bank Statement for February 2020

Date Ref. Details Debits Credits Balance
N$ N$ N$
1 BS1 Opening Bal 21,000.00 21,000.00

1 BS2 Interest on debit balance 100.00 - 20,900.00

2 EFT001 Rent 1,500.00 19,400.00

6 BS03 Bank charges 3.80 19,396.20

10 EFT003 Muni bill 4888 14,508.20

11 Rec 001 Cash deposit 85700.00 100,208.20

13 EFT005 Sanlam 4,650 95,558.20

13 EFT006 MWEB 1,300.75 94,257.45

18 EFT002 NOVEL FORD 60,000.00 34,257.45

18 EFT007 NCCI 2,400.50 31,856.95

21 Rec003 Deposit 93,500.00 125,356.95

23 EFT011 Multi choice 2,500.00 122,856.95

23 Rec 004 Deposit 200,000.00 322,856.95

27 EFT012 TAURUS 5,600.00 317,256.95

27 BS3 Direct deposit 15,000.00 332,256.95

28 BS4 Stop order: Kauta & Basson Attorneys 1,001.00 331,255.95

28 BS5 Service fees 687.42 330,568.53

28 BS6 Duty on Dr entries 121.45 330,447.08

28 BS7 Cash deposit fees 147.86 330,299.22

28 BS8 Int. on Cr balance 42.00 330,341.22

01-Mar Rec 002 Deposit 29,560.00 359,901.22