GABORONE UNIVERSITY COLLEGE OF LAW AND PROFESSIONAL STUDIES

DIPLOMA IN MARKETING

LEVEL 1 SEMESTER 1

MID-SEMESTER EXAMINATION

MARCH /APRIL 2023

(FINANCIAL ACCOUNTING)

TIME: 3 HOURS

TOTAL MARKS:100

INSTRUCTIONS TO THE CANDIDATES

 Answer any FOUR Questions
 Clearly number each question appropriately
 Take note of marks allocated to each subsection of a question
 All queries should be directed to the invigilator
 You can answer questions in any order
 Candidates caught cheating will be disqualified.
Q1

1.1. Distinguish between accounting and book-keeping (4)

1.2. State five reasons why a business should keep proper accounting records (5)
1.3. Identify four users of accounting information and give two reason each while they need the
information. (12)
1.4. State four problems a business would experience if it fails to keep proper accounting records
(4)

Q2.Explain

i. “ Double Entry System”. (5)

ii. An account (4)
iii. Ledger (4)
iv. “Debit” (2)
v. “Credit” (4)
vi. State the accounting equation (2)
vii. Use the information below to calculate the assets, liabilities and capital of F Fox
Traders

Land P 280 000, premises P400 000, inventory P30 000, creditors P20 000, loan P300
000 (4)

Q3
3.1 From the information below, draw up the statement of financial position (balance
sheet) of Bongoman Traders as at 31 March 2022.
P
Premises 300 000
Plant and machinery 120 000
Fixtures and fittings 19 000
Inventory 12 000
Trade receivables (debtors) 13 000
Bank overdraft 80 000
Trade payables (debtors) 30 000
Loan 100 000
Capital ?
15
marks

Show the effects of the transactions on the respective accounts in the table below.

Transaction Assets Capital Liability

1. Owner put P 300 000 in
 the bank account of the
business
2. Bought furniture P12 000
by cheque
3. Took P200 inventory for
business use
4. Bought stationery P3000
from XYZ Stationery
Supplies 0n credit
5. Sold inventory P500 to
Lame on credit

2x5=10 marks

Q4

4.1 Enter the following transactions in the appropriate ledger accounts

2022

September 01 Bought motor van P 230 000 by cheque

05 Sold goods P3400 to Mpho on credit

16 Bought inventory P 8000 from B Bat on credit

19 Owner took P300 inventory for own use

22 Paid P2000 cash into the bank account

23 Paid rent P600 by cheque

24 Sold office furniture P2000 to Ben on credit

28 Mpho paid her account after deducting 3% cash discount by cheque

29 Owner took P350 inventory (stock) for personal use

= 19 marks

4.2. Explain

i. Statement of financial position (3)

ii. “Purchases” (3)

Total 100 Marks