MINISTRY OF EDUCATION, ARTS AND CULTURE

KHOMAS REGIONAL COUNCIL

DIRECTORATE OF EDUCATION, ARTS & CULTURE
NAMIBIA SENIOR SECONDARY CERTIFICATE

ACCOUNTING ORDINARY LEVEL 4345/2

PAPER 2 GRADE 11 2 hours 30 minutes

MARKING SCHEME APRIL 2020

Additional materials: Non-programmable calculator

This document consists of ten printed pages.

Question 1
 (a)
(i) Gunter account
DR CR
DATE DAY DETAILS FOL AMOUNT DATE DAY DETAILS FOL AMOUNT
2017 1 Balance b/d 700  2018 30 Cash 350 
July June
Bad debts 350 
700 700

[3]
(ii) Bad Debts account
DR CR
DATE DAY DETAILS FOL AMOUNT DATE DAY DETAILS FOL AMOUNT
2018 30 Gunter 350  2018 30 Profit and 350
June June Loss
350 350

[2]
(iii) Bad Debts Recovered account
DR CR
DATE DAY DETAILS FOL AMOUNT DATE DAY DETAILS FOL AMOUNT
2019 30 Profit and 350 2019 15 Cash 350
June Loss Feb
350 350

[2]

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 (b) Provision for Doubtful Debts account
DR CR
DATE DAY DETAILS FOL AMOUNT DATE DAY DETAILS FOL AMOUNT
2018 30 Profit and 16  2017 1 Balance b/d 128
June Loss July 
Balance c/d 112
128 128

2019 30 Balance c/d 160 2018 1 Balance b/d 112

June July 
2019 30 Profit and 48
June Loss
160 160

2019 1 Balance b/d 160

Jul 

[5]
(c)

- Prudence – Maintaining a provision ensures that the net profit is not overstated
by increasing expenses in the Profit and Loss Account.

- Matching – Maintaining a provision ensures that the part of the credit sales
which is not received as possible bad debts, is matched as a provision for that
period.

[4]
(d)
 Consider individual debtors accounts and decide which ones are likely to
become bad debts.
 Consider an ageing schedule as the longer the debt is outstanding the more
likely it is to become a bad debt.
 Using the past bad debts as an estimate of future bad debts
[4]
[20]

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Question 2

a) DC Enterprises
Income Statement for the year ended 28 February 2019

Sales (180 000 – 2 500) 177 500 

Less: Cost of Sales 77 080
Opening inventory 10 200
Add: Purchases 75 000 
Add: Carriage Inwards 680 
85 880
Less: Closing inventory 8 800 
Gross Profit 100 420 ()o/f
Add other Income 12 000
Rent received (10 000 + 2 000) 12 000 
Gross Income 112 420
Less Expenses 43 216 ()o/f
Bad debts (520 + 300) 820 
Carriage outwards 580 
Interest on loan (1 250 + 6 250) 7 500
Stationery (4 400 – 600) 3 800 
Provision for doubtful debts [(17 500-300) x 8%] 1 376 
Depreciation (20 500 + 8 640) 29 140 
Net Profit 69 204 

[22]

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 b) DC Enterprises
Statement of Financial Position as at 28 February 2019

Capital Employed
Owner’s Equity 213 834
Capital 144 630 
Add: Net Profit 69 204()o/f

Long –Term Liabilities 50 000

Loan: Bank Windhoek 50 000
263 834

Employment of Capital
Non-current Assets Cost Price Provision for Book Value
depreciation
Equipment 72 000  13 640  58 360()o/f
Vehicles 220 000  35 500  184 500()o/f
292 000 49 140 242 860

Working Capital 20 974()o/f

Current Assets 27 224
Inventory 8 800
Prepaid expenses 600
Debtors (17 500 – 300) = 17
200
Less Provision for doubtful debts 1 15 824
376 OR (c/f) 
Accrued Income 2 000

Less Current Liabilities 6 250

Accrued expenses 6 250
263 834

[18]
[40]

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 Question 3

(a) Depreciation is the decrease in the value of non-current assets over their useful
life. [1]

(b) (i) Equipment account

DR CR
DATE DAY DETAILS FOL AMOUNT DATE DAY DETAILS FOL AMOUNT
2019 Balance b/d 15 000  2019 31 Balance c/d 16 000
Jan 1 Dec
Jul 1 Bank/Cash 1 000 
16 000 16 000

2020 Balance b/d 16 000

Jan 1
[2]
(ii) Provision for depreciation on equipment account
DR CR
DATE DAY DETAILS FOL AMOUNT DATE DAY DETAILS FOL AMOUNT
2019 31 Balance c/d 4 250  2019 Balance b/d 3 000
Dec Jan 1
Dec 31 Depreciation 1 250
(1200+50)
4 250 4 250

2020 Balance b/d 4 250

Jan 1
[5]

(c)
- Owner: The owner needs to assess whether his/her investment in the business made
a profit or a loss.
- Employees: Employees are interested in the financial affairs to ensure their job
security, salary payment and possible bonuses upon excessive profits by the business.
- Banks and other financial institutions: To assess whether the business will be able
to repay loans.
- Potential investors: To assess the business progress in order to see whether their
investment will be worthwhile.
- The government(Receiver of Revenue): To calculate the taxes to be paid by the
business, i.e. VAT and taxes on profits.

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 - Customers and suppliers: To assess the business solvency before entering a trading
relationship.
- The local community: To assess business effects on the community, i.e. redundancy,
closing down of factories, inflation, employment opportunities, pollution, etc.
- Competitors: To measure own performance against the business performance.
- Economic analysts: To establish trends through analysis of particular businesses to
determine Gross Domestic Product.
- Members of the general public: To assess information regarding environmental,
ecological and other attitudes published in annual reports.
[6]
[14]

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Question 4

(a) 1. Proof of the arithmetical accuracy of entries in the ledgers

2. Provide immediate totals of debtors and creditors for inclusion in trial
balance.
3. Enable the draft of final accounts to be prepared quickly.
4. Assist in locating errors when a trial balance does not agree.
5. Trace and detect fraud
(Any two) [2]
(b)

(i) Debtors control account

DATE DAY DETAILS FOL AMOUNT DATE DAY DETAILS FOL AMOUNT
2019 1 Balance b/d 6 200  2019 31 Sales DRJ 160 
Jan Jan returns
31 Sales DJ 8 640  Bank/ CB 3 800 
Cash
Discount CB 100
allowed
Bad debts GJ 35
Balance c/d 10 745
14 480 14 480

2019 1 Balance b/d 10 745 

Feb
[7]
(ii) Creditors control account
DATE DAY DETAILS FOL AMOUNT DATE DAY DETAILS FOL AMOUNT
2019 31 Purchases CRJ 86 2019 1 Balance b/d 4 300 
Jan returns Jan
Bank CB 2 190  31 Purchases CJ 3 220
Discount CB 65 Cash CB 30
received
Balance c/d 5 234 Interest GJ 25
paid
7 575 7 575

2019 1 Balance b/d 5 234

Feb
[8]

NB: The learner loses a mark for the first entry on each side (after balance b/d when
applicable) for using a wrong date (i.e. 30 instead of 31) or completely not writing the
date.
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(c)
 The debtors overpaid
 When discount allowed to a debtor was omitted
 The invoice was incorrect and the overcharged amount was reversed after
payment was received from a debtor
 The debtor returned goods after the account was already settled
[Any three] [3]

[20]

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Question 5

a)

Transaction Capital Revenue

expenditure expenditure
Purchase of photocopier 

Interest on loan to purchase the 

photocopier

Purchase of a computer programme to link 

photocopier to computer network

Maintenance contract of the photocopier 

Cost of wages for installing the 

photocopier

Cost of ink for the photocopier 

[6]

[TOTAL: 100]

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