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.

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_____________________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________________
__________________________ ( 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.

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_____________________________________________________________________________________________
_____________________________________________________________________________________________
__________________________ ( 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.
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_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________ ( 2 )

10. State one effect of polluting the physical environment.

_________________________________________________________________________ ( 1 )

11. What is the role of Central bank in Botswana? Give one

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_____________________________________________________________________________________________
__________________________________________________________ ( 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

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( 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.

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_____________________________________________________________________________________________
____________________________________________________ ( 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

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_____________________________________________________________________________________________
_________________________________________________________________________________________(1)