Botswana Open University Commerce & Accounting Mock Exam 2017 PDF

MOCK EXAMINATION 2017 COMMERCE AND ACCOUNTING TIME: 1 HR 15MIN Marks: 50 INSTRUCTIONS 1. Answer ALL questions. 2. All answers must be written in the spaces provided. Name: _________________________________ Centre: ___________________...

MOCK EXAMINATION 2017 COMMERCE AND ACCOUNTING TIME: 1 HR 15MIN Marks: 50 INSTRUCTIONS 1. Answer ALL questions. 2. All answers must be written in the spaces provided. Name: _________________________________ Centre: ___________________ For Tutor’s use Sections Marks Scored A B Total Marks 1  BOTSWANA COLLEGE OF DISTANCE AND OPEN LEARNING MOCK EXAMINATION 2017 COMMERCE AND ACCOUNTING PAPER 1 TIME: 1 HR Marks: 50 INSTRUCTIONS 1. Answer ALL questions. 2. All answers must be written in the spaces provided. Name: _________________________________ Centre: ___________________ For Tutor’s use Sections Marks Scored A B Total Marks 2 SECTION A ( 25 Marks ) 1. State any two types of large scale retailers in Botswana. _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ ___________________ ( 2 ) 2. ( a ) What is meant by discount? _______________________________________________________________ _______________________________________________________________ _________ ( 1 ) ( b ) Give one feature of lay-bye. _______________________________________________________________ _______________________________________________________________ _________ ( 1 ) 3. Mr Aya grows sorghum in his farm. He produces sorghum and sugar cane for his own consumption. ( a ) Which type of production is Mr Aya involved in? _____________________________________________________________________ ( 1 ) ( b ) Give two advantages that Mr Aya obtains from sorghum. _____________________________________________________________________________________________ _____________________________________________________________________________________________ _____________________________________________________________________________________________ _____________________________________________________________________________________________ _________ ( 2 ) 4. Explain why it is necessary for one to consider competition as a factor in a market research. _____________________________________________________________________________________________ _____________________________________________________________________________________________ _____________________________________________________________________________________________ _______________________ ( 2 ) 5. Ginah bought a fridge which was labeled “frost free”. After a month the fridge started to accumulate frost which was not easy to remove. She went back to the shop demanding a refund, but the shop owner was not willing to assist her. State two consumer rights that were violated in the sale of the fridge to Ginah. 3 _____________________________________________________________________________________________ _____________________________________________________________________________________________ _____________________________________________________________________________________________ __________________________ ( 2 ) 6. State one way in which a buyer uses information from a receipt. _____________________________________________________________________________________________ ________________________________________________________ ( 1 ) 7. Amanda submitted a business plan to the Youth Development Fund for funding. State two ways in which the Fund would use Amanda’s business plan. _____________________________________________________________________________________________ _____________________________________________________________________________________________ _____________________________________________________________________________________________ _____________________________________________________________________________________________ __________ ( 2 ) 8. State any two duties of a marketing manager. _____________________________________________________________________________________________ _____________________________________________________________________________________________ _____________________________________________________________________________________________ __________________________ ( 2 ) 9. Dudu uses recycled paper to produce toilet paper. State any two benefits that Dudu might enjoy as a result of using recycled paper. _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________ ( 2 ) 10. State one effect of polluting the physical environment. _________________________________________________________________________ ( 1 ) 11. What is the role of Central bank in Botswana? Give one 4 _____________________________________________________________________________________________ __________________________________________________________ ( 1 ) 12. State any two reasons for paying by cheque. _____________________________________________________________________________________________ _____________________________________________________________________________________________ __________________________________________ ( 2 ) 13. Give any two parties that appears in a cheque _____________________________________________________________________________________________ __________________________________________________________ ( 2 ) SECTION B ( 25 Marks ) 14. Tsitsi has got only P5000-00 in his current account. He wants to purchase a computer for his business costing P8000-00 only. He intend to borrow the balance from his banker. ( a ) Which term is used to describe the balance that Tsitsi needs to borrow from his banker? _________________________________________________________________________ ( 1 ) ( b ) Calculate the amount of money he would have to borrow in order to acquire the computer. P ________________ ( 2 ) 15. State two reasons why a business needs to acquire start-up capital. _____________________________________________________________________________________________ _____________________________________________________________________________________________ ____________________________________________ ( 2 ) 16. ( a ) State any circumstance under which a business may have to deal with returns inwards. _____________________________________________________________________________________________ ___________________________________________________________ ( 1 ) ( b ) How are returns inwards treated in a Trading Account? _____________________________________________________________________________________________ ___________________________________________________________ ( 1 ) 17. The balances of assets and liabilities below were extracted from the books of Agreement 5 ( Pty ) Ltd. P Building 125 000 Machinery 37 500 Stock 11 000 Debtors 7 500 Overdraft 6 000 Bank loan 9 000 Cash 1 500 Calculate the working capital. Show your working. P______________________ ( 2 ) 18. Neo gave Gaone a cheque and Gaone banked it but for which Neo has proved not to have enough funds to meet it. ( a ) What is the term that describe the cheque given to Gaone? ________________________________________________________________________ ( 1 ) ( b ) How is the cheque going to be treated in Bank reconciliation statement? ________________________________________________________________________ ( 1 ) 19. What will be transaction if the owner take goods from the business for own use? _____________________________________________________________________________________________ __________________________________________________________ ( 1 ) 20. If a cashier is given a cash float of P700-00 and P541-00 was spent in the period. Calculate the amount to be reimbursed at the end of the period. P _________________ ( 2 ) 21. If a sale invoice shows 12 items of P250-00 each, less trade discount of 20% and cash discount of 5%. ( a ) Calculate the amount to be paid, if the payment is made within the credit period. P__________________ ( 2 )``` ( b ) State one advantage of offering a trade discount. 6 _____________________________________________________________________________________________ ____________________________________________________ ( 1 ) 22. Explain why carriage inwards is charged to the Trading account. _____________________________________________________________________________________________ _____________________________________________________________________________________________ _______________________________________ ( 2 ) ________________________________________________________________________ ( 1 ) 23. In which books of account is Customers’ personal accounts found? 24. (a ) Under which heading will a car be classified in a Balance sheet? _______________________________________________________________________ ( 1 ) ( b ) State two reasons why it will be classified as such. _____________________________________________________________________________________________ _____________________________________________________________________________________________ __________________________________________ ( 2 ) 25. ( a ) How will the current assets be arranged in the Balance Sheet in a descending order? ________________________________________________________________________ ( 1 ) ( b ) Define contra entry _____________________________________________________________________________________________ _____________________________________________________________________________________________ _____________________________________________________________________________________________ _________________________________________________________________________________________(1) 7