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Subjeet: . Fraeiice Frtanagem*rtt aizd Admi*isiratis* ecid Praeiieal

Ee eF"keepfu g en sl A eeo ur? ds.

Datc: 09 E*ptcmber 2022

Time: 17h30:201130

Venue: University ef Narnihia- Frtain Campus

Total Marks: 'i00

Examincr: Mr. Tanswell Davics

Moderator: [i4s Susan L.lvl.K Kaapehi

Iffsltrgqflorus:
* Write legibly
u Write yaur eandideie number on eaeh eESwer sci'ipt *sed

* Answer all the questions and rnark !t elearly

Humber all your pages

'
n Students may use calculators

" Pleasc use a ruler vrhen drawing up your Books of aeeounting

n Students are nst allcvred to answer in red ink or peneil

Page 1 of 5
'1. :'"i=:=',,ir:i= rii,i-::S:; F*,'eaeh [iUe=ii0il, r;l'li-r05e ine cr:ii'eci insi,rei ii'r",rri ihe ripiiOi'r::
=-=.;'.:.::,;::
piciriced anel inL"iicaie ihe eori"cet ai-rs"..iei"'rrom cithei l-\, B, e ci D. {5)

iai whai type ciar:ei:t:tti is ieni reeei'reci?

A CLin"ent Assei
B E;<pense
e lncome
D Liabiliilr

(b) Fiom the foilorving accounts - which accor:nt forms pait of ihe Owner's equity?

A Bank aceouni
B Drawings
C ereditors
D Debtors

(e) ln which Book of First errtry woulci irou i-ecord the folloi..ring transaction" "The owner of the
bustness purchase Office furniture on cretiit to the ttalue of i'!$ 68 000."?

A Petty Cash Book

B Business Cash Book
C Fees Journal
D General Journal

(d) What is the total value of an item, inclusive of VAT, if the item costs N$ 920 e;<cluding VAT?

A '1508
B 1BO5
c 1085
D 1O5B

(e) Which section of the tegal Practitioner's Act 1995 deals with trust investments?

A Section 26
B Section 28
C Section 32
D Section 29

Page 2 of 5
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'-r;','i:;:':l;r:;l-:;ii:.:i'i.ili iiLr:;jr-,1=::.
iart:, :'iti :': ;-i'=

ii:i Baci dei:ts ;rr= defiriecl Lts ";aiiot iits ,ri'iiieii +ii thai :,, f.ri';irie.'r: riu+: iicr ;'..1"'eci ti.,
. ---:. - L^.-^ - -!-i-r^,"
I SUelve llUlrl C Uts:JILil.

qc) all e;lpsnses are reeoi"c;ee! 0n the D*olit sioe of ihe Eirsiness []ank Acr:oi,i:i in the
General Ledger"
(d) Ihe Triai Balanee shar,rs ihe fiit;iiict;l iesuli 0i ;r r:trsiiies;.

ie) i-rravrrings increases thre'ralt:e Lri 0"'rner'c eqL:it1i,

{i1 Trursi cieeiitors foi"ms pari of the liai:ilities of a business.

(g) The value of liabiliiies is equal io ihe 'ralue of assets egqqd ihe vaiue sf 6w66;'s ssr:ihr
(h) Trust monies ma;r ps iransfeiiec into ihe business bank account of the ousiness.

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-,.! !Ui', :! :-1,,==i ;,.,u+iici,Sl
=;-i

(a) List three (3) Fi>reej asset accol:nts. (3)

(b) For how long should a law flrm reiain his/her accounting recoids in terms of ihe rules of
the taui society? (1)
(c) \a/hat is the pLrrpose of preBaiing an lncome Statement anci Balance Sheet for youi
business? (2)
(d) List the 6 basic steps in the Aceounting Circle, in the correct orcier. (6)

(e) Briefly deflne the following concepts: (4)

(i) Depreciation
(ii) Source Document
(iii) Petty Cash
(iv) Capital

(f)Which legislation regulates VAT in Namibia? (1)

(g) What is the purpose of a loan account in the General ledger? (1)
(h) Briefly explain ',vhy an expense account would increase (on the debit side) and an asset
acccunt would decrease (on the credit side) in the General teciger? (2)

4. Mention 7 (scven) flnancial acti,rities / ti'ansactions/ flnancial actions that are prohibited in
respect of the practice of accounting in tauv Firms. (7)

5. Briefly discuss the courts' view/ position regarding ihe non-compliance with trust accounting
provisions in the law in the case of Malan v Law Soeiefli, Narthern Province {2AA9l 1 All SA
f33 (SeA)? (The brief facts, issue, and the decision is required). (10)

Page 3 of 5
 .-
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:ji:lij.r-..-- t-.;" .. , ,t;"

;jc.;-.-.J.a r- 6 " /11 r1.l

u=I*ii!;i '."'' l-j/ _ .. . :'J+;.

Business eash Booli Balainee (ef : n!$ 15 000 (unfavourable)

TrL:si eash Book fl:.ll::l:c (Dr): nl$ 200 000

]-he Trusi e i"editors Balances as et 0't iv12t1 2022 are as follows: (Please note ihat ihe Trusi e ash Book
balance amount e s ari 0i iviay 2022 is !i,ie i-uSlVE of ihe Trust e reditors Balances):

" Lombaari 35 000

= Alfeus '15
000
u Ntelamo 25 000
= Grobbela:; 1B 000

GAY ]'i1ii:JSAETiGE"J DETA.IL=

1. Client Ntelarno instructs Max to transfer, from the trust eeeount, an amount of itl$ 25 000 in

i'espect cf an invoice payable bir her for legal sertrices lendered.

2. A elieni Uandia deposits an amount of N$ 600 000 into Max's trust accouni for the purchase of
a certain prope(y in future.
3. C!ient .,1.',rr,.,i";:ii makes payment in respect of an invoice issued to him for seivices rendered
in the amount of N$ 60 000,
4. N4ax withCr::r,::; N$ 2000 from the bank aecount for Petty Cash.
5. fuIax pays fcr i;,rsuranee in the amount of N$ 2500.
6. Max charqcs clis*t.Lukas an amount of N$ 6500 for legal seruices rendered.
7. lriax pays irr statronary from Petty* e ash in the amount of N$ 800.
8. Max pays fcr disbursements in respect of your e iient Lombaai'd's divorce matter in the amount
of N$ Bsl0
9. [1rtsx vvit\''ir::rr,,q I'l$ '1000 from the Bank account for your o$Jn personal use.
10. Max pui'ci::s: a company vehicle with a totalValue of N$ 500 000 on credit at M&Z Moiors. A
deposit p'\,rilcnt is not required
'1'1. Ir4ax pa;,: irr di:;bursements in respectof your elient Ameya's criminal matters in the amount
of N$ 3C"n
liax rc:rr"i'-c ir'rr in the amount of N$ 5000 for renting out one of your offices.
12.
13. Ma;< nLir:lrsl':i;iee furniture in the amount N$ 15000.

Page 4 of 5
=:E=15=-.t:
': \'=+ +:; . , ', ;.;: i,; i=eeie ii-c* EL,3;i i:"Ari-i=.3ii;=il*r ,ir :h= rgtfi:i::ii;g *e"-.i;"" :,f FfSi Ef:ili
ut nFew
e6 EE!+n ' ''*1"/s. Picase n*te " F€L1 PRGVI=EGru f"-r VeT sEtcuEd be :*a#+i!!!ti!. Ycir =rc
also ru* I i;.,'-:ir*ri ie baEanec +ff y+i-:r Bocks +f FErst enEry. i17!
{Flees* :.:.-"'..: ihe Beaks ef Firsi eniry ier'nplates atiae!:cd ts iE:ic qu€cii*Er paFer tCI l.ccord
thc tie'i 'i ;nsi ,
Z. Wiih r*i+r+;':ei: ic ##m=eaefions !-lE e*+vc, *:dieate v*hctherthe aeeeirnts, higi:lightce! ir
BOt* " 6":ii! fia,vs a DEEET or CREDIT entry !n ehe Gemeral Eedger uascd ort the naiure ef
ths r*:.": rii""s iraftsaetions. OnEy iftgieate either "dcbit" cf, "ef,cdit" in vour answer book"
{1 3}

i?t-t i*!=.-t:':?

eonsider the Ti'i.r,i Belarice heEew and prcparc the Eneome Statei?remt and Ealar:cc Eheei fer fu4ax

Attorneys:

L?i; 214 000

I-a* ,.,r'lr,-y 152 100
'
rqrpi,ir* 26730
Oli;c':r:i.rrnriure 30 000
Tri;:;r : irlx Account 4 420
Bu:; r ,,.;:; b;:lk acgount 55 027
Dc,btr;r"s 8 140
Trus:i (,rcdilors 4 420
Bos1r,'r Limited (crediior) 705
o.:,, :. i.Li,{rr., 270
Fc r:s 66 420
Stl,,ii:r;:rv 705
Tr:'i'i lrne 530
Ui, . ,' : ,: r:ctricity 1 700
5 323
Rr:1, :r.r:eivrxJ 600
ln:-: ,cc 1 2A0
286 1 45 286 145

IfdSIRUCIiC.

1. Prepare f ftr' r' ;-.'-';;:n $tatement fsr Max Attorneys using the information in the Trial Balanee (8)
2. Prepare th+ , ''*nce $heet for Max Attorneys using the information in the Trial Balance (12)

***-*THE Er.lD*=-**-

Page 5 of 5