___________________________________________________
SCHOOL OF EDUCATION
BACHELOR OF IN SECONDARY EDUCATION
SUBJECT: EDUCATION ACCOUNTING 1
ASSIGNMENT 4
DUE DATE 13 October 2024
REQUIREMENTS AND INSTRUCTIONS:
1. This assignment is an individual
2. Answer all the questions.
3. No late assignment will be accepted unless there is a valid reason with a proof.
4.
There must be a table of content, introduction, conclusion and reference list.
5. Font size: 12, Font type: Times New Roman.
6. Citation is needed and APA Referencing style should be used.
7. Student’ name and number as well as College logo should be clear on the cover
page
LECTURER: MR ISAK U. UZERA. Email:uzerauaenena@gmail.com
TOTAL MARKS 50
Question 1
The following balances appear in the books of Okatjandja Wheel is a distributor of
specialised machinery owned by Liyerenge Fillipus for a business on 31 December
2018:
$
Cash balance
360
Balance at bank in favour of business
7 540
Debtors ledger control account
17 650
Creditors ledger control account
9 740
During the month of January 2019 the following transactions occur:
Jan 2 Received cheque from Debtor Alex
1 540
Allowed discount Debtor Alex
10
Received cheque from Debtor Ben
770
Allowed discount Debtor Ben
10
Paid by cheque- Creditor Elvis
470
Paid by cheque Creditor Flimon
2 640
Paid by cash – Creditor Gift
100
10
Paid cash – Salaries
250
18
Received – Cash sales
490
22
Received cheque from Debtor Chillan after deducting
22
contra account $ 500
2 500
Drew cash from bank
1 000
Paid wages out of cash
1 230
Paid petty cashier out of cash
250
Paid by cheque creditor Hanese
970
23
Received cheque Debtor Demo
80
31
Received cash – sales
570
Banked cash
350
Credit sales during month were
6 940
Returns and allowances to customers were
140
Bad debts written off were
100
Purchases during month were
Credits for packages returned to creditor were
4 960
150
Required to prepare:
(a) Write up cash book with (four) 4 Column’s Discounts, Creditors, Debtors,
Cash and Bank.
(15 Marks)
(b)
(i) Purchases Ledger Control Account
(ii) Sales Ledger Control Account.
(5 Marks)
(5 Marks)
[Total 25 Marks]
Question 2
Otjimbingwe Dealer is one of good retail shops in Omatako constituency. The
busines financial year ends 31 January.an you have been provided with the following
information:
For the year ended 31 January 2020
N$
N$
Sales:
Cash
31 000
Credit
74 000
105 000
Purchases: Cash
25 000
Credit
93 000
118 000
At 30 September 2019
Stock
93 000
Debtors
25 200
Creditors
14 200
Bank Overdraft
12 800
The business decided to compare their liquidity position on 31 January 2020 with
the market (industries) which was recorded at 31 December 2019 to see their
performance.
REQUIRED
a) Complete and comment on the following table to show the ratios for
Otjimbingwe dealer for the year ended 31 January 2020. Calculations should
be correct to two decimal places for (i) and (ii) and should be rounded up to
the next whole day for (iii) and (iv), for each of the following ratios comment
on the performance of the business in comparison to industry by 31 January
2020.
Example: Place the ratios you have calculated into the box as below.
Ratios
The industries ratio 31
December 2019
i)
Current Ratio
2.39 : 1
ii)
Quick Ratio
1.06 : 1
iii)
Collection period for Debtors
34 Days
iv)
Payment period for Creditors
26 Days
(i)
(ii)
(iii)
(iv)
Current Ratio
Quick Ratio
Collection Period for Debtors
Payment period for Creditors
(5 Marks)
(5 Marks)
(5 Marks)
(5 Marks)
REQUIRED
Otjimbingwe dealer is also interested in comparing their results with those of
another business and has obtained the financial statement of some other
businesses in the same town.
b) Explain three factors which a business should bear in mind when attempting
to compare their results with the other business?
(5 Marks)
[Total: 25 marks]
END OF THE ASSIGNMENT