FACULTY OF COMMERCE,

MANAGEMENT & LAW

DISTANCE MODE ASSIGNMENT
LETTER

Old Curriculum
Academic Year 2024
Semester (1)
[AFE3691 Financial Accounting 1A]

A MUST, TO READ THE ENTIRE

DOCUMENT

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ACCOUNTING, ECONOMIC & MANAGEMENT

SCIENCES

ASSIGNMENT ADMINISTRATION
CORE CALENDAR FOR DISTANCE AND ONLINE COURSES – 2024
SEMESTER 1
MONTH DATES ACTIVITIES Schools

February Creation of Moodle courses for Distance and Online mode

5 February Orientation

12 February Semester 1 Lectures Commences

March 25-28 March 2023 Compulsory Virtual Vacation School All Schools

April FIRST ASSESSMENT: 1st SEMESTER MODULES

2 April Due date: 01st Assessment of 01 Semester Modules Only School of Accounting, School of Business
3-5 April Grace Period for assessment submission/ completion Management, Governance & Economics
School of Law

MAKE-UP/ COMPENSATORY ASSESSMENT 1: 1st SEMESTER MODULES

April
17 April Make-up assessment due date: 1st Assessment School of Accounting, School of Business
– Only applicable if you score 1-39% in Assignment 1. Management, Governance & Economics
Take note that a new assessment (test or assignment) is School of Law
to be submitted.

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SECOND ASSESSMENT: 1st SEMESTER MODULES

19 April Due date: 02nd Assessment of 01 Semester Modules Only School of Accounting, School of Business
20-22 April Grace Period for assessment submission/ completion Management, Governance & Economics
April School of Law

MAKE-UP/ COMPENSATORY ASSESSMENT 2: 1st SEMESTER MODULES

7 May Make-up assessment due date: 2nd Assessment School of Accounting, School of Business
– Only applicable if you score 1-39% in Assignment 2. Management, Governance & Economics
Take note that a new assessment (test or assignment) is School of Law
to be submitted.
Year Modules
30 April Due date: Year modules Assignment 1 School of Accounting, School of Business
1-3 May Management, Governance & Economics
Grace Period: Year module Assignment 1
May School of Law
17 May Make-up/ Compensatory assessment due date: 1st
Assessment Year Modules
– Only applicable if you score 1-39% in Assignment 1.
Take note that a new assessment (test or assignment) is
July to be submitted.
29 July Due date: Year modules Assignment 2 School of Accounting, School of Business
30 July – 1 August Grace Period: Year module Assignment 2 Management, Governance & Economics
August School of Law
19 August Make-up/ Compensatory assessment due date: 2nd
Assessment Year Modules
– Only applicable if you score 1-39% in Assignment 2.
Take note that a new assessment (test or assignment) is
to be submitted.
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2 September Due date: Year modules Assignment 3 School of Accounting, School of Business
Management, Governance & Economics
September 3-5 September Grace Period: Year module Assignment 3 School of Law
20 September Make-up/ Compensatory assessment due date: 3rd
Assessment Year Modules
– Only applicable if you score 1-39% in Assignment 3.
Take note that a new assessment (test or assignment) is
to be submitted.
15 May 2024 Lectures end for First Semester

21 May 2024 Release of CA Marks All Schools

22 May 2024 Semester 1 First opportunity Examinations
11 June 2024 Semester 1 Second opportunity Examinations

For modules that will have online tests, all information shall be communicated well in advance. Kindly take note that some modules might
have 3 to 4 assessments. E.g.
2 assignments and 1 to 2 online tests. All necessary information will be shared timely.
Good luck!

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2024 Distance Mode Assignments

[AFE3691 Financial Accounting 1A]
Dear Student,

Welcome to the University of Namibia. We are confident that your studies and hard work will be
rewarded with success. We kindly advise that you obtain all the relevant information and booklets
available for distance students from your Moodle platform (including the 2023 Student Information
Letter, Online Assignment Submission Guide and other documents). These documents will
provide guidance on how to approach your studies and will guide you through your study materials as
well as providing useful administrative information in submitting assignments.

1. Study materials
Your study guide is essentially your “teacher/lecturer”. However, in addition, you are required to visit
the library to consult prescribed books and recommended readings that are indicated in the study guide
as well as browse the Internet in general. You are also responsible to purchase any prescribed
textbooks required for your respective courses/modules. Furthermore, you are strongly advised to
follow the guidelines in the Online Assignment Submission Guide available on Moodle.

2. Collaborative Learning
Unam avails all your modules through Moodle, enabling you to interact with your fellow students online
through forum discussions and chats. You can use the same platform to engage with your lecturers and
tutors regarding academic support. Please take advantage of Moodle to avoid isolation and strengthen
your interaction with colleagues, ask for help, and share/receive resources to aid your learning process.
See below how to access forum discussions on Moodle:

Figure 1: Forums in courses

3. Submission of assignments
It is very important to complete and submit a clean, clear and well-argued assignment for marking. Make
sure that you have understood the questions in order to answer them correctly. It is your responsibility
to make sure that every page of the completed assignment is correctly numbered before submitting
your assignment.
As from 2017, ALL assignments are submitted through the Moodle Learning Management
System. This is an online platform where you will access all your modules and related information such
as course outlines, course notes and other learning materials that your lecturer/tutor may choose to
share with you. Moodle is accessible here: http://elearning.unam.edu.na. You should complete and
submit all assignments on or before the given due date in the assignment letter if you wish to obtain
your CA marks and qualify for examinations. UNAM always updates its assignment covers on an annual
and semester basis. Please ensure that you have used the latest assignment cover. The latest
assignment cover is availed on each course on Moodle.
A user guide is available on how to submit your assignment in each module on the Distance Education
Common Space and you can access it on the Online Support system. Pay close attention to the
following key points listed at the beginning of the guide on:

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3.1 How you would know when you have successfully submitted your
assignment: that is when the submission status shows “Submitted for grading”

Figure 2: Assignment submission status

MAKE SURE THE SYSTEM GIVES YOU A CONFIRMATION OF SUBMISSION by the

submission status shown as "Submitted for grading" when done. If that status is NOT
displayed when done, IT DOES NOT COUNT AS A SUBMISSION.

3.2 Errors to avoid when submitting your assignment (committing these errors may
result in you failing to submit your assignments and therefore potentially failing your
course)

a. You are submitting on the correct Module/Course

b. You have selected and uploaded the correct Assignment document from your
computer
c. You are submitting the correct Assignment number for the respective activity (i.e.
Assignment 1, 2, etc.)

3.3 How to check the assessment feedback when your assignment has been graded.

4. Due Dates
All assignment due dates for 2022 are published on second page of this assignment letter. With the
shift from manual to online assignment submission since 2017, due dates are automated and non-
negotiable. This means that you would be required to submit your assignments ON or BEFORE the
due date set on your assignment (before 11h55 PM). After the date has passed (i.e. 12h00AM of the
next day) the assignment submission will be disabled, and you would no longer be able to submit
your assignment. Please note that assignment submissions will be open long before the due dates.
Please note that your assignment due dates are on page 2 of this Tutorial Letter. Use this assignment
due dates to set up your calendar tool on your mobile phone or computer to set reminders for yourself
and manage your time. Another way to keep pace with due dates, is by regularly visiting your Timeline
of each of your courses on Moodle on the Course Overview. Also download the Moodle mobile app to
access Moodle on your mobile phone or tablet and have access to notifications about due dates at your
fingertips from Google Play Store for Android or Apple App Store for IOS.

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5. Submission of Assignments
Due to challenges with Internet connectivity and speed, large files may take too long to upload, which
is a big risk if you wait until the last minute to submit your assignments. You are therefore strongly
advised NOT to wait until the final hours of the due dates to submit your assignments to avoid
disappointments. You are also advised to ensure that you are in an area with good Internet connectivity
when submitting your assignments. Timely submission of all assignments on or before the given due
date is crucial for the timely grading and processing of your CA marks and determining admission to
exams.
Take note that assignments should never be submitted directly by email or hard copy to
individual tutors or any other staff members of the University of Namibia.

6. Medical and death are the only reasons accepted for the late submission of assignments.
Late submission of assignments will only be approved 7 days (including public holidays and
weekends) after the due date of an assignment. Valid documentary proof must be attached as part of
the assignment before any late submission will be considered. Late submission without valid
documentary proof attached to the assignment will be returned unmarked and may not be resubmitted
for marking. Travelling and attendance of workshops, job related activities and conferences may
not be used as an excuse for the late submission of assignments. All late submission request must be
forwarded to the Student support coordinator for approval.

7. Academic Support
One every Moodle course there is an embedded Academic Support section with materials to assist you
with your writing process (see Figure 3 below). Go through the videos in order to enhance your writing
process and submit better quality assignments.

Figure 3: Academic Support tutorials

8. Grace Period
A grace period refers to three (3) additional days added after your assignment due
date. The purpose of this grace period is to provide each student with time to verify
and or to make amendments to assignments already submitted. These changes may
include correcting errors like submitting a file to a wrong module or on a wrong
assignment; submitting a wrong file; losing internet connectivity, etc. An example
would be that a student attempting to submit an assignment and they lose internet
connection would still be able to try again the day after at a different place or when the
connection has been restored.

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9. Plagiarism Control
It has been observed that some students copy information from the Internet and paste
into their assignments without acknowledging the sources of the information. This is
called plagiarism. A copy of the Policy on Academic Integrity has been provided to you
on every course on Moodle. Please note that plagiarism which includes copying and
pasting information from the Internet would not be tolerated, shall result in your
assignments declared null and void and graded as a “0”. All assignments submitted
through Moodle would be checked for plagiarism using plagiarism detection software.
You are therefore strongly urged to acknowledge EVERY source that you use for your
assignment by using the appropriate citations and references following the referencing
style prescribed by your lecturers (APA Referencing guides are available freely
online). Find one here: http://www.uofa.edu/docs/apa-documentation.pdf

Any assignment found with high similarity scores or with evidence of clear attempts to
cheat such as submitting an assignment that is not your own would result in a zero (0)
grade.

10. Vacation schools

Attending vacation school is COMPULSORY and the vacation school timetable will be made
available through the UNAM Moodle

11. My UNAM Portal and Moodle

We recommend that you regularly (at least twice a week) access your “My UNAM
Portal” (http://my.unam.edu.na) for your registration status and information, and
Moodle (https://elearning.unam.edu.na ) for your learning and assessment
information.

Also visit the Distance Education Common Space on Moodle where you can find all
necessary information and user manuals related to your distance mode studies and
also engage with other students studying on distance mode. See additional
information under Section 11 below.

12. Online Support (Ticketing) System

An online support system is provided where you can report some of the issues that you may experience
regarding your studies. This system is easily accessible from the Moodle LMS system.

Figure 4: Online ticketing system

You can also make use of the Online Support (Ticketing System) for queries to be responded to by
the responsible person within 48 hours. We recommend you use this system for Help Topics or issues
listed on the system rather than email or telephone calls.
13. Online information, Tutorials and Distance Education Common Space
Information and Tutorials are provided in each course on the Moodle Learning
Management System which you should first familiarise yourself once you first access
your courses.

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Figure 5: Info-Tutorials on Moodle

Indicated in Figure 4 above, the Distance Student Orientation provides video tutorials on various
activities you would perform such as submitting your assignments, converting your documents into pdf
format, changing your email address, how to check your results when assignments have been graded
and so on.
Updates and information with regard to your studies and related events would be shared in the Distance
Education Common Space which you can access from any course as shown in screenshot below. All
students studying on distance mode are linked this the space where you can collaborate or discuss
general issues.

Figure 6: Distance Education Common Space

You will also find the Student Information Letter, your Vacation School Timetable and User Guides in
the Distance Education Common Space.

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14. Staff Contact Information
If you study conscientiously, your efforts will be rewarded. Should you need any assistance or
clarification on the module contents, you can reach the relevant staff members at the contact details as
given below:

Tutor:
For Module/Subject content related matters, TBA
Assignments marks and CA marks queries
Student Support Coordinator:
Assignment due dates, Availability of assignments, Ms. Anna-Marie Murere 0612063729 [email protected]
Unmarked assignments, Vacation schools
Faculty officers: Ms Nelago 0612063987 [email protected]
Admissions Ms T Nuuyoma 0612063609 [email protected]
Registration Ms G Van Wyk 0612063084 [email protected]
Appeals Ms. A Nelumbu (SP) 063 220 2039 [email protected]
Addition of Modules Ms. S Shapumba (HP) 064 502 6508 [email protected]
Cancellations of Modules Mr. I Mundumbu (RP) 066 268 6078 [email protected]
Graduation Ms. R Chata (KP) 066 262 6071 [email protected]
Ms A Felix (PO) 065- 2323042 [email protected]

Examination Officers: Desley Goses (WHK) 061-2064881 [email protected]

For Exam marks and exam timetable, exam Stephanie Nehoja (WHK) 061-2063715 [email protected]
related matters
All exam officers at respective
campuses assist students of those
campuses

eLearning Administrator: Mr Owen Lisulo 0612063381 [email protected]

Moodle related queries (technical problems), Mr Shaka Maikhudumu 0612063000 [email protected]

linking of Modules, etc.
https://elearning.unam.edu.na/sup
Please create an online ticket for any assistance port/open.php

Computer Centre/ IT Helpdesk 061 2063014

Log In/Passwords To reset passwords & for [email protected]
Team 061 2063041
Logging onto Moodle and Portal

NOTE: For additional information consult the Prospectus and UNAM General Information and
Regulations Prospectus.

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Serious offence not tolerated at all
Note well: Plagiarism
Plagiarism is “the wrongful appropriation or purloining, and publication as one’s own, of the ideas, or the
expression of the ideas of another” (OED). All published and unpublished material, whether in manuscript, printed
or electronic form, is covered under this description.
The Proctors’ Disciplinary Regulations concerning conduct in examinations (see Part 19.4. and 19.5, p. 52) state
that ‘No candidate shall present for an examination as his or her own work any part of the substance of another
person’s work. In any written work (whether thesis, dissertation, essay, coursework, or written examination, or
assignment) passages quoted or closely paraphrased from another person’s work must be identified as quotations
or paraphrases, and the source of the quoted or paraphrased material must be clearly acknowledged.’ In all written
work students must be vigilant in citing the work they have referred to or quoted from (please see further Appendix
D). Examples of plagiarism and detailed advice as to how to avoid it are given on
http://www.admin.ox.ac.uk/edc/goodpractice/: you are strongly advised to consult this website.
It has been observed that some students merely download information from the Internet, copy verbatim from other
printed sources (including the Study Guide, employ other people to do their assignments for them, or plagiarise
each other’s assignments (either directly, that is, word-to-word, or through a re-arrangement of words or
paragraphs in order to deceive the tutor or marker).
These practices constitute very serious academic offences of academic dishonesty, alternatively, intellectual fraud,
which attract very serious and heavy penalties. Students must desist from such practices. Such students may score
very high marks but invariably perform very poorly in examinations. It is in the interest of such students to
endeavour to exercise their own intellectual faculties, do their own research, and personally do the set assignments.

No hardcopies are allowed, all assignment are to be uploaded through Moodle.

✓ Assignments should be submitted in PDF – only. Kindly save your assignments in PDF format
✓ Make sure that you submit one assignment as one file/document. Do not create and upload
several folders; do not zip the documents. Have 1 one document/file for 1 (ONE) entire
assignment.
✓ Assignments for modules with formulas can be handwritten, scanned in one document and
uploaded on Moodle accordingly.
✓ Make sure you submit a document that is readable and virus free.
✓ Make sure you upload the right file with the relevant assignment content.
✓ After submitting your assignment on Moodle do verify on the file you uploaded. Always try
to submit your assignment few days before the due date, this allows you to double-check
all the nitty-gritties.
NO LATE SUBMISSIONS WILL BE TOLERATED. NO LATE submission due to not adhering to the
above advises or guidance WILL BE ACCEPTED nor ENTERTAINED.

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Assignment 1

Question 1 (30 Marks)

Martin Moodley and Leigh Lawrence are in partnership business, sharing profits and losses in the ratio
3:2. Their statement of financial position at 30 June 2022 was as follows:

MARTIN MOODLEY AND LEIGH LAWRENCE

STATEMENT OF FINANCIAL POSITION as at 30 June 2022

ASSETS
Non-current assets 129 000
Land and buildings at carrying amount 90 000
Equipment at carrying amount 24 000
Motor vehicles at carrying amount 15 000

Current assets 225 000

Inventory 120 000
Accounts receivable 60 000
Cash at bank 45 000

354 000
EQUITY AND LIABILITIES
Equity
Capital accounts 285 000
Martin Moodley 177 000
Leigh Lawrence 108 000

Current Liabilities
Accounts payable 69 000
354 000

On 01 July 2022, Ruby is admitted to the partnership on the following conditions:

1. Ruby is to pay N$90 000 for a quarter share of the business which Moodley and Lawrence give
up equally.
2. Land and buildings are valued at N$120 000.
3. Equipment is valued at N$33 000.
4. The cashflow from accounts receivable is expected to be N$57 000.
5. Inventory has a net realisable value of N$111 000.

YOU ARE REQUIRED TO:

1. Calculate the new profit-sharing ratio after the admission of Ruby. (3 marks)
2. Calculate the amount of goodwill recognised when the new partner was admitted. (7 marks)
3. Prepare the journal entries to record the admission of Ruby into the partnership. (8 marks)
4. Prepare the statement of financial position for Moodley, Lawrence and Ruby as at 01 July 2022.
(12 marks)

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Question 2 (20 Marks)

Malthus Limited was incorporated on 1 March 2010 with an authorised share capital of 5 000 000
ordinary shares of N$10 each with an issued capital of 2 000 000 ordinary shares.

Relevant balance as at 1 March 2022: N$

• Ordinary share capital: 20 000 000
• Retained earnings: 4 556 256
• Share premium: 3 300 000
• Bank: 568 137

On 1 April 2022, the directors approved a capitalisation issue of 1 shares for every 5 ordinary shares
held at par. This was done so that there was a minimum impact on retained earnings.

On 10 May 2022, 1 000 000 of the shares were offered to the public at a premium of N$2.50 per share.
The full Public issue is underwritten by Finesse Limited for a 2.5% underwriter’s commission. The
closing date for the share application was 30 June 2022.

The public subscribed for 950 000 shares and the full amounts were received on or before the closing
date. All the shares were allotted on 20 July 2022.

Share issue expenses of N$7 500 were paid and all transactions with the underwriter were concluded
by 31 July 2022. All expenses regarding the share issue must be written off against the Share Premium
Account.

On 28 February 2023:
i. Profit for the period amounted N$950 650. Tax assessed on the business amounted to N$256
893.
ii. Land valued at N$650 000 was revalued to N$1 000 000.

The directors proposed:

i. To write of the share issue expenses and use share premium account for this purpose.
ii. To transfer N$500 000 to general reserve.
iii. An ordinary shares dividend of 35 cents per share to be paid on 1 March 2023.

REQUIRED:
1. Record the transactions for the period in the General Journal of Malthus Limited. Journal
narrations are not required. (20 marks)

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Question 3 (25 Marks)
Delta Limited is a company listed on the Namibian Stock exchange; It is undergoing internal
restructuring of its operations and needs to raise capital for this purpose. This can be done by issuing
equity shares, preference shares and/or debentures to the public. The company has 31 March as the
year end.

Authorised capital:
• Ordinary equity shares 20 000 000 with par value of N$2.50 per share.
• 15% Preference shares 2 000 000 with par value of N$2 per share.
Issued capital:
• Ordinary equity shares 8 000 000
• 15% Preference shares Nil
Some of the balances on 01 April 2022 were as follows:
• Retained earnings: N$5 556 080
• Share premium: N$2 400 000
• Preliminary expenses: N$ 25 500

The transaction during the period:

On 1 May 2022 the directors of Delta Limited decided to issue 4 500 000 shares of the remaining
authorised shares. InnerCore Underwriters guaranteed the issue in return for 2.5% underwriting
commission. These shares would be offered at N$3 per share.

On 31 July 2022, the closing date for the application, N$15 000 000 had been received from applicants
for ordinary shares. The maximum number of shares was duly allotted on 31 August 2022 and
InnerCore underwriters was paid. The accounting policy of the business is to maximize distributable
reserves whenever it writes off preliminary and related other expenditure. Flotations cost amounting
N$18 500 were paid.
An issue of 300 000, 15% preference shares was made and all the shares were taken up immediately
on 31 August 2022 at par. This was the first issue of this class of shares with dividend payable annually
on 28 February every year, if declared. This issue was however, not underwritten as the subscribers
were institutional investors who had declared interest to take the shares.

On 15 September 2022 Delta Limited’s board of directors decided to distribute profits. It was proposed
that to offer ordinary shareholders a dividend of N$0.15 per share including new shareholders. This
was paid on 30 September 2022.

Delta made a profit of N$6 750 255 for the year ended 31 March 2023 before taking into account any
of the information provided above. The directors decided to write off the preliminary and flotation
expenses.

YOU ARE REQUIRED TO:

1. Journalise the above transactions. Narrations are not required. (20 marks)
2. Prepare an extract of statement of changes in equity showing retained earnings column only.
(5 marks)

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Question 4 (25 Marks)

African Stars, Chula Chula and UNAM FC were in partnership selling soccer gear and
accessories. They shared profits and losses in the ratio 3:5:2. On 01 January 2022, they decided
to dissolve the partnership as Chula Chula was personally insolvent. The partnership’s post-
closing trial balance at that date was.

POST-CLOSING TRIAL BALANCE AS AT 01 JANUARY 2022

Details Debit Credit

Capital:
African Stars 19 000
Chula Chula 6 000
UNAM FC 10 000
Current accounts:
African Stars 1 000
UNAM FC 2 000
Loan UNAM FC 2 000
8% Mortgage bond 6 000
Accounts payable 8 800
Goodwill (at cost) 12 000
Land and Buildings (at cost) 18 000
Equipment (at cost) 4 000
Accumulated depreciation: Equipment 1 600
Inventory 10 050
Accounts receivable 6 500
Allowance for bad debts 500
Bank 6 350

56 900 56 900

The realisation transactions are summarised as follows:

1. African Stars agreed to take over the land and buildings for N$20 000 and assume liability for
the mortgage bond.
2. The equipment and accounts receivable were disposed of for N$7 400 cash.
3. Inventory was sold by public auction for N$6 350.
4. Paid auctioneer’s fee of N$100.
5. As the tangible assets have been disposed of separately, the goodwill has no value.
6. Paid payables N$8 400 in full settlement of their claims.
7. Divided the loss on realisation amongst the partners.
8. Paid UNAM FC N$2 000 for his loan.
9. Divided Chula Chula’s deficiency amongst African Stars and UNAM FC in the ratio 5:3 (applying
the rule in Garner vs Murray).
10. Distributed the remaining cash to the partners.

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YOU ARE REQUIRED TO:
1. Assuming that the partnership makes use of a realisation account, record the appropriate
entries for dissolving the partnership by preparing the following ledger accounts:
• Bank account (5 marks)
• Land and building account (2.5 marks)
• Realisation account (5 marks)
• Partners’ capital accounts in columnar format (12.5 marks)

NB: All accounts should be properly balanced and closed off.

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Assignment 2

Question 1 (30 Marks)

Partner Lea has a 2/3 share in a partnership. Her capital is N$420 000 and from the year profits she is
entitled to an interest of 8% per annum on her capital, as well as bonus of 20% of profit before interest
and other distributions to partners are considered.

Partner Diana with a capital of N$264 000 is entitled to 7.5% interest per annum on her capital as well
as a salary of N$21 600 per annum. Diana’s salary was included in the general salaries account.

Lea and Diana withdrew cash of N$1 020 and N$600 respectively per month. Interest on drawings for
the year amounted to N$1 800 and N$1 080 for Lea and Diana, respectively.

Debit balances on current at 30 June 2022 were:

1. Lea N$4 800

2. Diana N$1 200

These accounts are subject to interest at 12% per annum on opening balances.

• Interest on the N$36 000 loan from partner Lea is calculated at 9% per annum.
• The profits for the year ended 31 December 2022, before the above items were provided for,
amounted to N$139 600.

REQUIRED:

1. Prepare the appropriation account for the year ended 31 December 2022. (Round off to the
nearest Namibian Dollar N$). (15 marks)
2. Prepare the current accounts, in columnar format, of the partnership as at 31 December 2022
properly balanced and closed off. (15 marks)

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Question 2 (20 Marks)

The following information pertains to Wood-Venture Traders CC:

N$

Land and buildings at cost 210 000

Equipment at cost 165 000
Investment at fair value 125 000
Trading inventory 140 500
Long-term loan: Omega Bank 60 000
Allowance for credit losses 3 000
Accumulated depreciation: Equipment 62 320
Accrued expenses 6 800
Prepaid expenses 3 500
Bank (Overdraft) (01 March 2022) 24 420
Accounts receivable 50 290
Accounts Payable 16 180
Profit or loss (profit before tax) 174 380
Income tax (Dr) 70 420
Member’s contribution: Arnold Katoima (01 Mar 2022) 140 000
Member's contribution: Peter Haikera (01 Mar 2022) 210 000
Retained earnings (01 March 2022) 56 600
Asset replacement reserve 82 000
Loan from Arnold Katoima 70 000
Distribution to members 80 000
Loan to Peter Haikera (01 March 2022) 50 000

Additional information:

1. The depreciation on equipment for the year amounted to N$41 250.

2. There were no disposals of or additions to the land and buildings and equipment during the
year.
3. On 01 July 2022 the members contributed additional funds as follows Arnold Katoima N$10
000 and Peter Haikera N$40 000. These funds were deposited into the business bank account.
4. The loan from Arnold Katoima is unsecured and the first instalment of N$15 000 must be paid
on 28 February 2023. During the year, this loan was increased by an additional N$30 000 to
improve the liquidity position of the business.
5. The actual normal income tax for the year amounted to N$50 570 and must still be recorded.
6. A further distribution of N$40 000 must be made to the members, this was entry had been
omitted.
7. The long-term loan from Omega Bank was obtained on 01 March 2022 at 15% interest per
annum and is secured by a first mortgage over land and buildings. The capital amount of the
loan must be repaid on 28 February 2029.
8. The loan to Peter Haikera is payable on demand. On 01 August he managed to repay N$10 000.
9. An additional N$8 000 is to be transferred to asset replacement reserve.

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 FACULTY OF COMMERCE, MANAGEMENT AND LAW

OLD CURRICULUM MODULES

REQUIRED:

1. Prepare the statement of changes in members’ interest and net investments of Wood-Venture
Traders CC for the year ended 28 February 2022. (15 marks)
2. Journalise transactions numbered: 4,5,6 and 9. Where applicable close any account, narrations
are not necessary. (5 marks)

Question 3 (25 Marks)

The following information appeared in the accounting records of GLASSWARE Ltd, a manufacturing
entity, at 28 February 2022, the end of the financial year.

Extract from the trial balance as at 28 February 2022:

N$

Inventory on hand 1 March 2021

Raw materials 160 650
Work-in-progress 229 500
Finished products 469 200
Raw material purchased (including N$52 326 indirect material) 511 326
Raw materials issued to production ?
Air freight paid on raw material purchased in Nigeria 163 200
Indirect materials additionally issued to production 6 426
Insurance expenses (including N$8 415 for office insurance) 30 294
Depreciation (10:3 ratio applicable for manufacturing equipment and office 39 780
Furniture respectively)
Rent expenses (60% of the rent was paid for the factory premises) 84 150
Wages and salaries paid 336 600
Water and electricity (N$272 646 included for the factory water& electricity) 321 453
Sales during the year 1 530 000

Additional information:

1. Inventory is valued on the FIFO (First-in-First-out) method.

2. Inventory on hand- 28 February 2022: N$
Raw materials 387 090
Work-in-progress 535 041
Finished products 532 440
3. Products are transferred to the sales department at cost plus 15%.
4. 30% of salaries and wages represent indirect labour cost of which N$39 780 was paid to the
factory supervisor. The rest of the salaries and wages relate to direct labourers.
5. All indirect materials issued were used in the production process. The raw material account in
the general ledger contains both the receipt and issue of direct and indirect material.
6. At 1 March 2021, the allowance for the unrealised profit in finished products inventory
amounted to N$61 200.
7. The remainder of the insurance expense relates to the insurance on the factory equipment.

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 FACULTY OF COMMERCE, MANAGEMENT AND LAW

OLD CURRICULUM MODULES

REQUIRED:

Prepare the following accounts, properly balanced and closed off, in the general ledger of
GLASSWARE Ltd for the year ending 28 February 2022:

1. Raw materials (5 marks)

2. Factory overheads (5 marks)
3. Work-in-progress (5 marks)
4. Finished goods inventory (5 marks)
5. Allowance for unrealised profit (5 marks)

Question 4 (25 Marks)

“NEW ERA Ltd” manufacturers steel cabinets. They want to know what the cost was to produce one
cabinet during the year 31 December 2022. The following information is available for the year ended
31 December 2022.

N$

Indirect material used 17 000

Raw material purchased 180 000
Raw material returned 8 000
Sales 580 000
Rent 35 000
Indirect labour 21 000
Freight on direct material 6 000
Direct labour 55 000
Freight on sales 3 000
Telephone 7 500
Packing of finished products 6 500
Interest received 8 000
Advertising 19 900
Insurance 44 000
Depreciation- Factory 17 000

Additional information
1. 75% of insurance, telephone and rent was for the factory.
2. Number of units produced: 10 000 units.
3. Finished product are transferred to the sales department at cost plus 25%.

Inventory balances: 01-01-2022 31-12-2022

N$ N$
Finished products 22 000 18 000
Raw material 29 000 31 000
Work in progress 9 000 11 000

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 FACULTY OF COMMERCE, MANAGEMENT AND LAW

OLD CURRICULUM MODULES

YOU ARE REQUIRED TO:

1. Compile a manufacturing cost statement for the year ended 31 December 2022. (20 marks)
2. Calculate the manufacturing cost per unit. (2 marks)
3. Calculate the unrealised profit in closing inventory as at 31 December 2022. (3 marks)

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