QUESTION 1
(BANK RECONCILIATION)
The following information is available after the Cash Book of Windhoek Stores was
compared with their Bank Statement at 28 February 2010.
Information

The Cash Book showed an overdraft of N$10 100.

The Bank Statement showed a debit balance of N$10 568.

The deposit of N$7 654 does not appear on the Bank Statement.

Cheques not yet presented for payment:
Nr. 511
N$805
Nr. 516
N$690

The bank recorded the following in the current bank account of Windhoek
Stores:
Credit card levy
N$150
Service fee
N$243
Interest on overdraft
N$163

A cheque for N$260 received from P. Peters was dishonoured by the bank.
Discount allowed on this cheque was N$30.

A payment by a debtor, D. Sunshine, for N$3 000 appears in the Bank
Statement and not in the Cash Book.

The Bank Statement showed a debit order for N$693 in favour of Deadsure
for an insurance premium.

T. Strong, a tenant, deposited his monthly rent directly into the bank account,
N$4 200.
You are required to:
1.1
1.2
Make supplementary entries in Cash Book of Windhoek Stores on
28 February 2010.
(17)
Draw up the Bank Reconciliation Statement on 28 February 2010.
(8)
MEMORANDUM: QUESTION 1
CASH BOOK OF WINDHOEK STORES – FEBRUARY 2010
CB2
DOC DAY DETAILS
BANK
DOC DAY DETAILS
B/S 28
D. SUNSHINE
3 000
28
BALANCE


B/D
B/S
RENT INCOME
4 200
B/S
BANK CHARGES

(150+243)
B/S
BALANCE
4 409
B/S
INTEREST ON
 C/D
OVERDRAFT
B/S
INSURANCE
B/S
P. PETER (R/D)
11 609
MARCH 2009

CB3
1
BALANCE
BANK
10 100
393
163
693
260
11 609
4 409
BANK RECONCILIATION STATEMENT AS AT 28 FEBRUARY 2010.
CREDIT BALANCE ACCORDING TO CASH BOOK
LESS: UNPRESENTED CHEQUES:
NO 511
516
805

690
1 495
2914
7 654
ADD: OUTSTANDING DEPOSIT
DEBIT BALANCE ACCORDING TO BANK STATEMENT
4409



10568
QUESTION 2
(TRIAL BALANCE)
The following balances were taken from the books of John’s General Stores on
31 December 2010.
N$
12 000
105 400
6 000
13 000
9 600
70 000
1 800
68 500
3 500
8 800
?
Stock (1 January 2010)
Sales
Bank (dr)
Debtors
Rent Income
Equipment
Returns Outwards
Purchases
Insurance
Creditors
Capital
Required: Prepare a Trial Balance for John’s General Stores as at
31 December 2010.
(12)
MEMORANDUM: QUESTION 2
Trial Balance of John’s General Stores as at 31
fol
BALANCE SHEET SECTION
CAPITAL
STOCK
BANK
DEBTORS
EQUIPMENT
CREDITORS
NOMINAL ACCOUNTS
SALES
RENT INCOME
RETURNS OUTWARDS
PURCHASES
INSURANCE
No totals or Capital calculation – 0. (List) Sections left out – 2.
December 2010
Debit
Credit
N$
NS
47 400
12 000
6 000
13 000
70 000
8 800
105 400
9 600
1 800
68 500
3 500
173 000
173 000
(WAGES JOURNAL)
QUESTION 3
Required: Use the following information and draw up the Wages Journal of USA
Traders for the week ending 21 March 2010. Close off the Wages
Journal and post it to the given accounts in the General Ledger.
A normal working week is 40 hours.
Employees Hours
worked
S Knowall
P Nobody
52
48
Rate
normal
time
N$40
N$30
Rate
overtime
1½times
normal
time rate
PAYE
15 % of
Gross
wage
Deductions
Pension
Social
Security
9% of
N$21
Normal
N$14
wage
(31)
MEMORANDUM: QUESTION 3
Wages Journal of USA Traders for the week ending 21 March 2010
Details
Normal Time
Overtime
Gross
WJ
Pension
PAYE
wages
Hours
Rate
Amount
Hours
Rate
Social
Total
Net Wages
Security
Deductions
Amount
S Knowall
40
40
1 600
12 60
720
2 320
144
348
21
513
1 807
P Nobody
40
30
1 200
8 45
360
1 560
108
234
14
356
1 204
1 080
3 880
252
582
35
869
3 011
GL7
GL6

2 800
GL5
General Ledger of USA Traders
Dr
Creditors for Wages
GL5
Cr
2010
MAR
21
WAGES
Pension Fund
WJ
3 011
GL6
2010
MAR
Wages
2010
MAR
21
GROSS
WAGES
WJ

3 880
21
WAGES
WJ
GL7
252
(ACCOUNTING EQUATION)
QUESTION 4
Analyse the given transactions on the answer sheet. Show an increase with a (+), a
decrease with a (-) and no effect with (0). Give the amount concerned in each case.
TRANSACTIONS:
1.
2.
3.
4.
Goods sold on credit to A. Anna, N$600.
A Anna returned damaged goods, N$250, issued credit note.
Purchased stock on credit, N$7 000 from ABC Traders.
The owner, B. Bennie, provide a vehicle as part of his capital contribution,
N$280 000.
5. Tax deducted from employees in the Wages Journal for the month was
N$2 500. Sent a cheque to the Receiver of Revenue(PAYE) for the amount
deducted.
6. Purchased stationery, N$300, paid from Petty Cash.
7. Interest on fixed deposit received and deposited into the bank account,
N$400.
(28)
MEMORANDUM: QUESTION 4
EFFECT ON
O’E
L
+600
0
1
ACCOUNT DEBITED
A ANNA
ACCOUNT CREDITED
SALES
A
+600
2
RETURNS INWARDS
A ANNA
-250
-250
0
3
PURCHASES
ABC TRADERS
0
-7 000
+7 000
4
VEHICLES
CAPITAL
+280 000
+280 000 0
5
RECEIVER OF REVENUE
6

(PAYE)
BANK
-500
0
-500
STATIONERY
PETTY CASH
-300
-300
0
+400
+400
0
INTEREST ON FIXED
7
BANK
DEPOSIT
QUESTION 5
(RATIO’S)
The following amounts were taken from the books of Tsumeb Stores on 30 July 2010.
Sales
Cost of Sales
Other Income
Expenses
Fixed Assets
Investments
Current Assets (including stock)
Current Liabilities
Stock
Long-term Liabilities
Opening Capital
N$
250 000
175 000
5 000
30 000
150 000
15 000
30 900
9 000
8 000
60 000
126 900
Calculate to two decimal places:
5.1
Mark-up
[3]
5.2
Margin
[2]
5.3
Solvency
[6]
5.4
Quick ratio
[4]
5.5
ROCE
[4]
MEMORANDUM: QUESTION 5
5.1
Mark-up
[3]
GP% of Cost of Sales =
75 000
175 000
x 100%
= 42,86%
5.2
Margin
[2]
GP% of Sales =
75 000
250 000
x 100%
= 30%
5.3
Solvency
Solvency = Total Assets : Total Liabilities
= (150 000 + 15 000 + 30 900) : (60 000 + 9 000) 
= 195 900 : 69 000
= 2.84 : 1
[6]
5.4
Quick ratio
[4]
(Current assets – stock) : Current liabilities
=
(30 900 – 8000) : 9000
=
22 900 : 9 000
=
5.5
2.54 : 1
ROCE
[4]
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡
𝑂𝑝𝑒𝑛𝑖𝑛𝑔 𝑐𝑎𝑝𝑖𝑡𝑎𝑙 𝑥 100%
=
50 000
= 39.40%
126 900 𝑥 100%