SCHOOL NAME:……………………………………………………………..

Grade 11:…

CANDIDATE NAME: ……………………………………………………………

MINISTRY OF EDUCATION, ARTS AND CULTURE

KHOMAS REGIONAL COUNCIL
DIRECTORATE OF EDUCATION, ARTS & CULTURE
NAMIBIA SENIOR SECONDARY CERTIFICATE

ACCOUNTING ORDINARY LEVEL 4345/1

PAPER 1 GRADE 11 2 hours

Marks 100 APRIL 2020

Additional materials: Non-programmable calculator

INSTRUCTIONS AND INFORMATION TO CANDIDATES

 Candidates answer on the Question Paper in the spaces provided.

 Write your Candidate Name in the space at the top of this page and
on all separate answer sheets used. For Examiners’ use
 Write in dark blue or black pen.
 You may use a soft pencil for any rough work, diagrams or graphs. 1 [24]
 Do not use correction fluid.
2 [16]
 Answer all questions.
 The number of marks is given in brackets [ ] at the end of 3 [19]
each question or part question.
 Where layouts are to be completed, you may not need all 4 [16]
the lines for your answer.
 The businesses mentioned in this question paper are 5 [25]
entirely fictitious. Total [100]

MARKER

MODERATOR

This document consists of twelve printed pages.

Question 1
(a) State one example of a current liability.
____________________________________________________________________[1]

(b) Explain the term assets.

____________________________________________________________________[1]

(c) Name the principle that records both aspects of a business transaction.
_____________________________________________________________________[1]

(d) Explain what is meant by the term creditor.

_____________________________________________________________________[1]

(e) Which two class of accounts have debit balances in a trial balance?
_____________________________________________________________________
_____________________________________________________________________[2]

(f) Name one subsidiary book which serves as a book of first entry, as well as a ledger
account.
_____________________________________________________________________[1]

(g) State one reason why trade discount may be allowed.

____________________________________________________________________[1]

(h) Explain what is meant by cash discount.

____________________________________________________________________[1]

(i) State the ledger account to which the total of the discount column on the debit side of the
cash book is posted.
_____________________________________________________________________[1]

(j) State two purposes for which the General Journal may be used.
____________________________________________________________________
____________________________________________________________________ [2]

(k) State the accounting equation.

____________________________________________________________________ [1]

(l) What is the result when the expenses of a business exceed its gross profit?
_____________________________________________________________________ [1]

Khomas Regional Examination: 4345/01 April 2020 Page 2 of 12

(m) Complete the table to indicate which subsidiary book is used to obtain information for
the following items in a Debtors’ Control account.

Item Subsidiary book

Discount allowed (i)

Bad debts (ii)

Goods returned by debtors (iii)

[3]

(n) Explain the imprest system of petty cash.

____________________________________________________________________
____________________________________________________________________
____________________________________________________________________ [2]

(o) Ondura Trading’s financial year ends on 31 December. On 1 January 2019

rent received accrued amounted to N$3 600. Rent received during the year ended
31 December 2019 amounted to N$13 500, including N$1 500 for 2020.

Calculate, showing your workings, the rent received which will appear in the Profit
and Loss Account for the year ended 31 December 2019.

____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________ [3]

(p) Name two examples of capital receipts.

____________________________________________________________________
____________________________________________________________________ [2]

[24]

Khomas Regional Examination: 4345/01 April 2020 Page 3 of 12

Question 2

Tsumkwe Stationers maintains a Debtors Journal.

(a) List two reasons why it is useful to prepare this subsidiary book.
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________[2]

The transactions of Tsumkwe Stationers for July 2019 included the following:

July 2019
1 Bought pens and pencils form Grootfontein Wholesalers, N$260, on credit.
5 Purchased photocopy paper on credit from Minolta Dealers, N$180.
Received a 5% trade discount.
9 Returned faulty pens, N$65, to Grootfontein Wholesalers.
10 Bought a computer for office use on credit from AZ Computers, N$9 999.
17 Purchased newspapers and magazines on credit from Minolta Dealers, N$100.
23 A third of the photocopy paper bought from Minolta Dealers was returned.

(b) Write up the following subsidiary books for July 2019.

(i) The Creditors Journal

(ii) The Creditors Returns Journal

The journals should be closed off at the end of the month.

Tsumkwe Stationers
Creditors Journal as at 31 July 2019
Doc. No. Date Details Fol Amount (N$)

[5]

Khomas Regional Examination: 4345/01 April 2020 Page 4 of 12

 Tsumkwe Stationers
Creditors Returns Journal as at 31 July 2019
Doc. No. Date Details Fol Amount (N$)

[4]
(c) Use your answer in (b) and write up the following ledger accounts for July 2019 in the
books of Tsumkwe Stationers.

(i) Minolta Dealers account

__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
________________________________________________________________________[3]

(ii) Purchases account

__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
________________________________________________________________________[1]

(iii) Purchases Returns account

__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
________________________________________________________________________[1]
[16]

Khomas Regional Examination: 4345/01 April 2020 Page 5 of 12

Question 3

At the end of August 2019 an inexperienced bookkeeper prepared the following Trial Balance
for Angula Traders.

Debit (N$) Credit (N$)

Equipment 48 000
Purchases 50 000
Sales 100 000
Creditors 2 500
Debtors 7 000
General Expenses 3 000
Salaries and wages 21 000
Bank overdraft 810
Cash in hand 390
Drawings 9 000
Stock 1 September 2009 13 000
Provision for depreciation of equipment 12 000
Capital (balancing figure) 57 300
162 000 162 000

In addition to the obvious errors in the Trial Balance, the accountant also discovered the
following errors:

1. The purchases of equipment, N$550, had been included in the purchases account.
2. Sales of goods, N$210, to Thando had been debited in error to Thanda’s account.
3. N$110 cash paid for wages had not been recorded.
4. An EFT payment to a creditor for N$200 had been credited to the creditor’s account and
debited to the bank account.
5. The sales account had been undercast by N$1 000 and the purchases account had been
undercast by the same amount.

(a) State the type of error which was made in each case.
1. ______________________________________________________________
2. ______________________________________________________________
3. ______________________________________________________________
4. ______________________________________________________________
5. ______________________________________________________________[5]

Khomas Regional Examination: 4345/01 April 2020 Page 6 of 12

(b) Draw up the Trial Balance as it would appear after the correction of errors, showing
the correct Capital account balance.

Angula Traders
Trial Balance as at 31 August 2019
Debit (N$) Credit (N$)

[14]

[19]

Khomas Regional Examination: 4345/01 April 2020 Page 7 of 12

Question 4

Vehonga is a sole trader. He started his business in April 2019 and has only a limited
knowledge of accounting.

(a) (i) Explain what is meant by the term bank reconciliation.

__________________________________________________________________________
__________________________________________________________________________
________________________________________________________________________[1]

(ii) Explain two reasons why it would be advisable for Vehonga to prepare a
Bank Reconciliation Statement at the end of each month.

__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
________________________________________________________________________[2]

(b) State three items which may appear in a Bank Statement but will not appear in the
Cash Book.

__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
________________________________________________________________________[3]

Vehonga’s Cash Book for June 2019 showed the following entries.
Cash Book (bank columns only)

N$ N$
2019 2019
June 1 Balance b/d 2 800 June 5 AB Wholesale 600
12 P.Pof 800 8 Drawings 520
18 B. Bock 1 00 21 H. Ham 400
0
28 Rent Received 420 30 Balance c/d 3 500
5 02 5 020
0
July 1 Balance b/d 3 500

Khomas Regional Examination: 4345/01 April 2020 Page 8 of 12

On 3 July Vehonga received the following Bank Statement for the month of June 2019.

Debit Credit Balance

2019 N$ N$ N$
June 1 Balance 2 800 cr.
5 EFT 600 2 200 cr.
8 EFT 520 1 680 cr.
12 Deposit 800 2 480 cr.
18 Deposit 1 000 3 480 cr.

(c) Prepare Vehonga’s Bank Reconciliation Statement as at 30 June 2019.

Bank Reconciliation Statement as at 30 June 2019

__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
________________________________________________________________________[8]

(d) Vehonga decided to prepare a Statement of Financial Position at 30 June 2019 at the end
of his first three months of trading.

(i) What amount should be entered for bank?

_________________________________________________________________ [1]

(ii) Under what heading should the bank balance appear in the Statement of Financial
position?
_________________________________________________________________ [1]

Khomas Regional Examination: 4345/01 April 2020 Page 9 of 12

 [16]
Question 5
Bean and Bag are in partnership. Their partnership included the following terms.
1. Interest on capital is allowed at 5% per annum.
2. Interest on drawings at the rate of 10% is charged on the total annual drawings.
3. Bag is to receive a salary of N$90 000 per annum.
4. Profits and losses are to be shared in proportion to the balances of their capital accounts
on the last day of the financial period.

a) State four benefits of a partnership business over a sole trading business.

__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
________________________________________________________________________[4]

On 1 October 2018 the balances on the partners’ capital and current accounts were as
follows.

Capital account Current account

N$ N$
Bean 750 000 2 450 (debit)
Bag 250 000 1 500 (credit)

Bean increased his capital to N$1 000 000 on 1 July 2019.

During the year ended 30 September 2019 the partners made the following drawings.

Bean N$26 400

Bag N$13 600

The net profit of the partnership for the year ended 30 September 2019 was N$244 000.

Khomas Regional Examination: 4345/01 April 2020 Page 10 of 12

b) Prepare the Appropriation account for the partnership for the year ended
30 September 2019.

Profit and Loss Appropriation Account of Bean and Bag for the year ended
30 September 2019.
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
[11]

Khomas Regional Examination: 4345/01 April 2020 Page 11 of 12

c) Prepare the partners’ current accounts for the year ended 30 September 2019.
Current accounts
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
_______________________________________________________________________[10]
[25]

[TOTAL: 100]

Khomas Regional Examination: 4345/01 April 2020 Page 12 of 12