CUACM117 Assignments and Tests: Chinhoyi University of Technology PDF

CHINHOYI UNIVERSITY OF TECHNOLOGY SCHOOL OF ENTREPRENEURSHIP AND BUSINESS SCIENCES DEPARTMENT OF ACCOUNTING SCIENCES AND FINANCE BSc (HONS) IN ACCOUNTANCY ASSIGNMENTS AND TESTS COURSE: FINANCIAL AND MANAGEMENT ACCOUNTING FOR BUSINESS COD...

CHINHOYI UNIVERSITY OF TECHNOLOGY SCHOOL OF ENTREPRENEURSHIP AND BUSINESS SCIENCES DEPARTMENT OF ACCOUNTING SCIENCES AND FINANCE BSc (HONS) IN ACCOUNTANCY ASSIGNMENTS AND TESTS COURSE: FINANCIAL AND MANAGEMENT ACCOUNTING FOR BUSINESS CODE: CUACM117 DATE: AUGUST - DECEMBER 2024, PHASE 3 1  ASSIGNMENTS (DUE DATE: OCTOBER 2024) ASSIGNMENT QUESTION 1 a) Mutare Border Timbers Ltd is a forestry based company operating in the Eastern Highlands of Zimbabwe. Since its inception in the year 2019, Mutare Border Timbers Ltd had not engaged a management accountant; only a financial accountant and their assistants were employed. From a workshop held by the Chartered Institute of Management Accountants (CIMA), the farm owner now wants to employ both a financial accountant and a management accountant. Although the farm owner had taken heed of the recommendations of CIMA, the farmer manager is not sure of the distinction between the roles and responsibilities of management accountants and financial accountants, and thus fears duplication of effort. The farm manager believes there is no material difference between the two and employing both may cause confusion. He argues an accountant is an accountant; so financial accountants can handle all accounting related issues in the company. Required: Write a memorandum to the farm manager clearly distinguishing and explaining the roles and responsibilities of a management accountant and a financial accountant. In your discussion suggest possible reasons why many companies do not have management accountants (16 Marks) 2 b) Jembajemba is an inexperienced financial accounts clerk employed by Watsomba and has prepared the following trial balance for the financial year 2023 Trial balance for Watsomba for the year ended 31 December 2023 Dr. (ZiG) Cr. (ZiG) Premises 80 000 Plant and machinery 65 000 Office furniture 15 000 Provision for depreciation: Plant and 35 000 machinery 10 000 Office furniture Inventory at 1 January 2023 6 000 Inventory at 31 December 2023 7 200 Trade receivables 5 500 Trade payables 2 700 Purchases 51 000 Carriage inwards 1 200 Carriage outwards 2 100 Sales 90 000 3 Returns inwards 2 600 Returns outwards 1 400 Provision for credit losses 500 Distribution expenses 20 800 Administration expenses 15 400 Discount received 2 000 Discount allowed 2 000 Drawings 12 600 Capital 133 400 306 600 250 600 Required: Prepare a corrected trial balance of Watsomba for the period to 31 December 2023 (9 Marks) [TOTAL: 25 MARKS] 4 ASSIGNMENT QUESTION 2 A friend of yours, who has decided to study Bachelor of Engineering (Honours) in Mechatronics at Chinhoyi University of Technology, comes to you for some assistance in understanding accounting. He asks you the following questions: i) “You have decided to study for the Bachelor of Science (Honours) in Supply Chain Management at Chinhoyi University of Technology and during this Semester in Phase 3 you are doing the module Financial and Management Accounting for Business (CUACM117). Can you define accounting for me?” (4 Marks) ii) “Financial statements appear to contain a large amount of information. Who uses this information and what are their information needs?” (12 Marks) iii) “What is the objective providing financial accounting information? I simply rely on tips from others when deciding which shares to buy.” (4 Marks) iv) “I want to start a small business entity assembling computers. Is there a difference between my relationship to the business entity as a sole proprietor or a limited company? I am really buffled!” (5 Marks) Required: 5 Answer the questions posed by your friend [TOTAL: 25 MARKS] TESTS (DUE DATE: OCTOBER 2024) TEST QUESTION 1 The following was extracted from the books of Chirangamapenzi, a sole trader on 31 December 2023. Chirangamapenzi imports her goods from Zambia for resale. Trial balance for Chirangamapenzi as at 31 December 2023 Dr. Cr. (ZiG) (ZiG) Purchases 210 600 Sales 336 860 Drawings 37 480 6 Customs duty 500 Capital 70 000 Bank loan 2 355 Inventory, 1 January 2023 18 854 Trade receivables 7 680 Trade payables 10 587 Value Added Tax payable 2 980 Flight charges 1 950 Returns outwards 2 078 Discount received 1 432 Wages and salaries 61 682 Motor vehicle expenses 2 042 Rent and rates 17 590 Heating and lighting 3 682 General expenses 4 210 Credit losses written off 174 Land and buildings 4 000 Motor vehicles at cost 12 000 Provision for depreciation on motor vehicles 7 000 Shop fittings 12 000 7 Provision for depreciation on shop fittings 4 000 Allowance for credit losses 300 Bank 43 148 Total 437 592 437 592 Additional information as at 31 December 2023 1. Inventory was valued at ZiG10 000. 2. Depreciate motor vehicles at 20% using straight line method and shop fittings 25% using reducing balance method. 3. General expenses prepaid are ZiG190. 4. Rent and rates owing amount to ZiG50. 5. Allowance for credit losses are to be increased by ZiG100. 6. The flight charges and customs duty were paid for imported goods from Zambia. Required: Prepare for Chirangamapenzi a) Statement of profit or loss and other comprehensive income for the year ended 31 December 2023 (10 Marks) b) Statement of changes in equity for the year ended 31 December 2023 (5 Marks) c) Statement of financial position as at 31 December 2023 (10 Marks) [TOTAL: 25 MARKS] TEST QUESTION 2 8 a) The following relates to Bongozozo Ltd, a manufacturing concern that sells its products to oversea markets: ZiG Wages and salaries: Factory (70% is directly in manufacturing) 220 000 Salaries of sales staff 8 000 Commission on sales staff 1 400 Salaries on administration staff 72 000 Travelling expenses: Factory workers not directly in production 100 Sales staff 2 900 Administration staff 200 Haulage cost on raw materials 4 000 Carriage on goods sold 7 800 Depreciation: Factory machinery 3 800 Accounting and office machinery 2 000 Motor vehicles: Sales staff cars 3 800 Administration cars 1 600 Sales display equipment 300 Royalties per unit of production 1 600 9 Canteen costs for Bongozozo Ltd (2/3 work in the workshop) 6 000 Raw materials: Inventory at beginning of period 120 000 Inventory at end of period 160 000 Purchases 400 000 Other factory indirect expenses 58 000 Interest on loans and overdraft 3 800 Other administration expenses 42 000 Other distribution expenses 65 000 Required: Using a cost analysis sheet (statement of cost), calculate Bongozozo Ltd’s i. Prime cost (4 Marks) ii. Total factory overheads (4 Marks) iii. Total production cost (2 Marks) iv. Total cost, classifying your non-production costs into administration, distribution and finance costs (3 Marks) b) Describe the characteristics of a good managerial accounting system and explain the use of cost accounting as a part of management accounting to a company of your choice (12 Marks) [TOTAL: 25 MARKS] 10