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BUSINESS ACCOUNTING II
BA260US
Assignment 1 [Sem 2; 2023] : Due Date 29 September 2023
Work to be done in Pairs (Groups of Two)
Allocation per question/Rubric:
Identification and correct naming of a T-Account
Recording entry in correct T-Account
Listing effect of transaction entries on accounting equation
(1 mark each)
(1 mark each)
(1 mark each)
Draw T-Accounts and record the transactions below. After each T-Account record, reflect
the effect of the transaction on the accounting equation.
1. Owner injected the following start-up capital into her new business.
1. Owner’s savings 900,000
2. Loan from bank 600,000
Accountant was instructed to maintain a capital reserve of 300,000 until instructed
otherwise.
2. Your company bought a truck valued at N$400,000 on account from Novel Ford and
paid a down deposit of N$ N$50,000.
3. You are financial accountant at NamConstruct, a construction company. Your company
has been contracted to construct four (4) blocks of flats at a quote of N$500,000 per block.
It is end of NamConstruct financial year and you are closing the books of NamConstruct
for the year. You company has completed one (1) and has handed the certificates of
completion to the client. Upon receiving the certificates of completion, the client made an
EFT for N$750,000. Work is yet to commence on the remaining three (3) blocks.
4. You are accountant for City Sands & Bricks Construction (CSBC). Your firm has been
contracted to supply 110,000 cubic metres of sand at N$500 per cubic metres to Namibia
Construction Company (NCC). You are closing your books of accounts for the first month
since the operationalization of the deal and CSBC has so far supplied 800 cubic metres.
NCC paid 50% for the deal upon both parties appending signature to the contract.
5. Bravo Motors is a Windhoek based car dealer (sells cars). During the financial year
2022 Bravo Motors bought 60 cars from Toyota Singapore for N$100,000 each, CIF. The
60 cars have been delivered to Bravo Motors and an EFT of N$50m has been processed
in favour of Toyota Singapore (who maintain an account at Nedbank Namibia).
6. Three day ago your firm received computers valued at 120,000 from Orion Computers
Ltd. The computers cost 10,000 each. You have recorded the transaction in your books
after fully settling the purchase price with by EFT. While installing the computers your
systems admin discovers that four computers are freezing due to a manufacturing
technical fault. The four computers have been returned to Orion, who, unfortunately, have
indicated that have no computers of same specifications to replace faulty machines.
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Instead, Orion have requested that they supply the four computers after 6 months at a
lesser price of N$8,000.
Example of What is Expected in this Assignment
0. Your company bought furniture valued at N$100,000 on account from Nictus Ltd. and
paid a down deposit of N$ N$15,000. The N$15,000 was paid N$10,000 by EFT and
N$5,000 in cash.
Bank A/C
Furniture & Fittings A/C
Furniture & Fit. 10,000
Bank
Cash
10,000
5,000
Cash A/C
Furniture & Fit. 5,000
The effect of the transaction on the accounting equation:
Assets
=
Bank
(10,000)
Cash
(5,000)
Liabilities
Nictus Ltd.
+
Owner’s Capital
85,000
Furniture & Fit. 100,000
Assignment 2 [Sem 2; 2023] : Due Date - 5 October 2023
Windhoek CompTech, a dealer in Lenovo laptops, started the year 2023 (on January 1)
with an inventory stock of 20 laptops which it purchased for N$1,500. The transactions
for the first quarter of 2023 are tabulated below:
Month
January
February
March
Purchases
Quantity
Price/Bottle
30
N$1,500
45
N$1,700
50
N$1,750
Additional Information:
• Shop tender salary is N$5,000 per month
• Water and electricity bill is N$800 per month
Quantity
40
35
45
Sales
Price/Bottle
N$4,500
N$5,100
N$5,250
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•
Telephones expenses is N$250 per month
Required:
Prepare the Windhoek CompTech Income Statement for the trading period 1 January to
31 March 2023 employing the following inventory cost accounting methods:
a. FIFO
b. LIFO
c. WAC
(32 marks)
(33 marks)
(35 marks)
[TOTAL: 100 MARKS]
Assignment 3 [Sem 2; 2023] : Due Date - 12 October 2023
Windhoek Engineers Pty Ltd.
Trial Balance as at 31 December 2022
Inventory of raw materials as at 01 January 2022
Inventory of finished goods as at 01 January 2022
Work in progress as at 01 January 2022
Wages (Direct N$180,000; factory indirect N$145,000)
Royalties
Carriage inwards (on raw materials)
Purchase of raw materials
Productive machinery (cost N$280,000)
Administration computers (cost N$20,000)
General factory expenses
Lighting
Factory power
Administration salaries
Sales rep’s salaries
Commission on sales
Rent
Insurance
General administration expenses
Bank charges
Discounts allowed
Carriage outwards
Sales
Trade receivables and trade payables
Bank
Cash
Drawings
Capital as at 01 January 2022
N$
21,000
38,900
13,500
325,000
7,000
3,500
370,000
230,000
12,000
31,000
7,500
13,700
44,000
30,000
11,500
12,000
4,200
13,400
2,300
4,800
5,900
142,300
16,800
1,500
60,000
1,421,800
N$
1,000,000
64,000
357,800
1,421,800
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Notes at 31 December 2022:
1. Inventory of raw materials N$24,000; inventory of finished goods N$40,000; work in
progress N$15,000.
2. Lighting, rent and insurance are to be apportioned: factory 5/6, administration 1/6.
3. Depreciation on productive and administration computers at 10% per annum on cost
Required:
Prepare the Windhoek Engineers Pty Ltd. Manufacturing, Trading and Profit and Loss
Accounts for the year ended 31 December 2022.
[100 MARKS]