l'lrl'fliblfi UNIVERSITY

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1 2 l'lrl'fliblfi UNIVERSITY OF SClEl lce arm TECHNOLOGY FACULTY OF MANAGEMENT SCIENCES DEPARTMENT: ACCOUNTING, ECONOMICS AND FINANCE QUALIFICATION: Bachelor of Accounting QUALIFICATION CODE: OYBOAC LEVEL: 7 COURSE: Computerised Accounting 301 DATE: November 2017 COURSE CODE: CAC7108 SESSION: Morning DURATION: 3 Hours MARKS: 100 1St OPPORTUNITY EXAMINATION QUESTION PAPER EXAMINER(S) MODERATOR: E KANGOOTUI & Y ELAGO cw, MILLER THIS QUESTION PAPER CONSISTS OF 8 PAGES (Excluding this front page) INSTRUCTIONS This examination is made up of three (3) questions which are all related..u PSDNT Make sure that your student number appears on the reports. (Computer printout) it is your responsibility to see that all the reports are handed in. The use of internet or any communication device is prohibited. Questions relating to this paper 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. 6. Round off all amounts to the nearest whole number or N$1 PERMISSIBLE MATERIALS 1. Examination question paper 2. Examination answer script 3. Nonprogrammable calculator

2 current Background: You are appointed as the new assistant accountant for Morukutu Primary School (MPS). It was established a few years back by the Government of the Republic of Namibia located far east in the Omaheke region. The school uses a periodic inventory system and processes its transactions exclusive of VAT. lts records are based on an integrated method and it does not process the following documents; quotations, sales orders, purchase orders and goods received notes. lts financial year starts on 1 January, it banks with FNB Namibia and also keeps a petty cash account with an imprest amount of N$ It uses the balance forward processing method and prints its documents on plain single paper. The school board requested you to capture opening balances for the new financial period that begins on Jan Question 1 (30 Marks) Non Note assets 1 Trade and other receivables 2 Trade and other payables 3 N$ Total school revenue Total school cost 5 Cash and cash equivalent 6 Prior year deficit Notes: 1. The non current assets balance are made up of the following accounts: \'\\\\\\\\ School ground Class rooms, offices & hostel School bus School swings Apple laptops for the laboratory School desk & chairs (classes) School desk & chairs (offices) School fax machine & copy machine School TV s (LED flat screen) N$ N$ N$ N$ N$ N$ N$ N$ N$50 000

3 5 5 Noncurrent assets Date acquired Residual value Useful life School ground 1 August 2015 N$ Class rooms, offices & hostel 1 August 2015 N$ years School bus 1 June 2015 N$ years Lab Apple laptops 1 January 2015 N$ years School desks & chairs 31 October 2015 N$ years School fax & copy machine 31 October 2015 years School TV s 31 December 2015 years School swings 1 August 2015 School depreciation policy: Noncurrent assets owned by the school are depreciated using the straightline method except, the School bus. Depreciation is calculated on assets in existence at the end of each year, using the basis of month s ownership. School ground, school swings, classrooms, offices and hostel are not depreciated. School bus is depreciated on kilometre s travelled. Total kilometres travelled up to date are and total kilometre expected to be travelled by the bus is The list of unpaid tuitions consisted of credit customers and other receivables which are: ~/ Sisande (SI100) N$ Cr \/ Juluwa (JU200) N$ / Zeepi (ZE300) N$ / Value for office stationery on hand N$ / Value for school textbooks, writing books, chalks, dusters & uniforms are N$ The school managed to keep records of the following list of accounts payables: / Etuna Enterprice (ET400) N$ / Denu Distributors (DE500) N$ / Business Connexion (BU600) N$ \/ Total amounts for unpaid insurance N$20 970

4 4. Morukutu Primary School generated its revenue from various activities which are made up of the following: \/ Learner s total tuition fees N$ \/ Sales of books, pen & pencils N$ \/ School kiosk sales N$ \/ School uniform sales N$ / Fun clay bazaar sales N$ The school incurs operating costs on a daily basis. These are made up us follows: / Employees remuneration : School Teachers N$ School secretary, cleaners & driver N$ Librarians N$ \/ School lighting and heating N$ \/ Stationery: School secretary N$4 140 School teachers N$2 100 information on vacancies N$700 \/ The Namibian Newspaper: / Certificate cost & money given to best students N$1 500 J School bus diesel N$ / Telephone costs incurred by communication department N$900 / Outing costs (Etosha Park) N$ \/ Oil & grease school swings N$350 / Loss on sales often desks N$1 900 \/ Teachers flipcharts N$ Total cash and cash equivalent for Morukutu Primary School: were as follows: / Petty cash N$4 500 / Bank (debit balance as per bank statement) N$ / 5% Fixed deposit (FNB) N$ The government allocated N$1.2 million and the school managed to secure N$3.5 million donation to fund its extra grade 0 class. Requirements: You are required to capture opening balance for the school accounts including accumulated depreciation for noncurrent assets as at 1 January No report is required at this stage

5 QUESTION 2 (40 Marks) Process the following transactions during December 2016 in the current account cashbook; Upon examination of the cashbook and the bank statement, the following were discovered: 1) Cheque no.100 of $ from Sisande recorded as receipts in the cashbook was later dishonoured by the bank. 2) Bank charges of $178 had not been recorded in the cashbook; 3) The school has an approved overdraft level of $20,000 from the bank. The bank statement contains a penalty of $200 for exceeding the approved overdraft level. This has not been recorded in the cash book; 4) A cheque of $4000 to replenish the petty cash, was cashed at the bank but omitted from the cash book; 5) Cash fees receipts of $4,700 were posted as cash payments of $7,400 in the main cashbook; 6) On 17th December F. Campbell (school principal) filled in a deposit slip for $610 to her personal bank account. This was captured to the business bank account in error by the cashier as tuck shop fees 7) Standing orders of $770 for fertilizers had not been posted to the cash book; 8) The following cheques, drawn on the bank account, captured in our records had not been presented to the bank for payment as at 31 December 2016: Cheque Number Date Cheque was written Account N$ No: June 2016 Library expense 925 No: November 2016 Equipment hire 1,025 No: December 2016 Bus fuel & oil 5,240 No: December 2016 Teaching aids 2,120 You are required to: a) Prepare the adjusted cashbook for the month of December b) Prepare a statement on 31 December 2016, reconciling the adjusted statement balance. cashbook with the bank (Bank Statement on Pages 78)

6 QUESTION 3 (30 Marks) You are required to process the yearend adjustments provided to you (Period 12). / A computer server with a life span of 10 years was bought from a company called Orion Computer (OR440) on the 1St May 2016 on credit and was delivered on the same date at the firm s premises. The school received an invoice from Orion Computer totalling N$ which is made up of the following items: 1. Computer server N$ Software programs installed on the computer server N$ Installation cost of the server done at the firm s premises N$ Testing cost of the computer server N$ Training cost given to employees on how to use the server N$ / Juluwa complained about 20% of his outstanding amount; his reasoning bought items worth of that amount. After further investigations, amount was in fact a credit sales to House & Home (HOU300). was that he never it was discovered that the invoice \/ Depreciation of noncurrent assets should be charged as follows: the bus has travelled km for the current year and 80% of depreciation should be allocated to capital expenditure costs and 20% to cost of sales. All other noncurrent assets should be allocated to cost of sales. / The balance amount outstanding on Zeepi s account could not be recovered anymore debtor was declared insolvent on 29 July 2016, the firm managed (deposited in the current account of the firm on the same day) and the remaining written off as an expense. as the to recover N$5 000 in cash amount was

7 General Period Transaction Customers Account Sub Detailed Detailed Detailed By Requirements: Process all above transactions, update and print out the following reports. 1. Print out a detailed ledger for Morukutu Primary school. (View ledger 0 Account start Sub account start 000. Period 1 period 12 ledger) end 9990 account end Print out supplier and customer s detailed ledgers. 0 Customers: View ledger ledger. Suppliers: View Suppliers By suppliers 0 Period: 1 12 customers

8 coffee insurance FNB Bank Statements 31 December 2016 Date Transaction Details Amount Balance N$ 01Dec16 Opening Balance (180,670.00) (180,670.00) 01Dec16 Interest Charge (10,288.00) (190,958.00) 01Dec16 Accounting Fees (1,500.00) (192,458.00) 02Dec16 Written off debt , (42,458.00) 03Dec16 Advertising & Promotions (450.00) (42,908.00) 05Dec16 Taurus Cleaning Services (2,500.00) (45,408.00) 07Dec1 6 Repairs to toilets (3,000.00) (48,408.00) 09Dec1 6 Rates & taxes (6,000.00) (54,408.00) 11Dec16 Nampost mails (90.00) (54,498.00) 12Dec1 6 Service fee (178.00) (54,676.00) 13Dec1 6 Inter house comp. sports field rental (4,500.00) (59,176.00) 15Dec16 Salaries & wages for gardener (2,500.00) (61,676.00) 17Dec16 Account payment (BU600) (102,490.00) (164,166.00) 19Dec16 Municipality bills for office (2,400.00) (166,566.00) 19Dec16 Government grand allocations 700, , Dec16 Shoprite & sugar (700.00) 532, Dec16 Waltons Stationery account for Nov 2016 (53,900.00) 478, Dec16 Telecom (1,000.00) 477, Venture Capital investment By Dev Bank 24Dec16 of Namibia 2,000, ,477, Dec16 Insurance (2,999.90) 2,474, Dec16 Cash deposit fees (231.00) 2,474, Dec16 IWAY (543.00) 2,474, Dec16 Windhoek High School 2,475, ,949, Dec1 6 Motor vehicle & licence (2,000.00) 4,947,420.10

9 tour scheduled refreshments Maths 30Dec1 6 Waltons Stationery sets (7,890.00) 4,939, Ritters Toyota vehicle 31Dec16 servicing (1,498.00) 4,938, Dec16 Petty cash reimbursement (4, ,934, Dec16 Ruby team (3,900.00) 4,930, Dec16 Khomas High School 3,006, ,936, Dec16 School bazaar (7,890.00) 7,928, Dec18 Tuck shop expenses (5,000.00; 7,923, Jan17 Eros Primary School 1,697, ,621, Jan1 7 Repairs for office toilets (5,0001m 9,616, Jan17 Meatco (2,927,450.00) 6,689, ================================= End of Examination =====================