Page 8 of 11 FACULTY OF ECONOMIC & MANAGEMENT SCIENCES SEMESTER 2 Center for Open, Distance and eLearning (CODEL) Subject: Local Government Accounting 1 (PFG2472) Assignment 1 Tutor: Anna C Kawana Question 1 You have just complete your Diploma in Accounting. You hear your colleagues arguing about the difference between Accounts Payable and Accounts receivables. Required: 1. 1 Assist them with clear examples in explaining the difference between the two Accounts. (10 marks) 1.2 Below are financials for a new Local Authority in Kunene Region, and it made the following transactions: a) Accounts payable of N$100,000 at the beginning of the year. b) During the same year, they made credit purchases amounting to N$ 65,000. c) The Council paid N$50,000 on credit purchases. Required: Use the above transactions and T-account to determine the balance of Accounts Payable for the Council. (10 marks) Question 2 Owners' equity (OE) represents the capital available for distribution to shareholders. Owners' equity consists of capital and drawing accounts. The Government just approved Omutse - Gwonime with a Village Council Status At the end of that year, the Village Council made N$35,000 of profit, Ministry contributed N$10,000 of equipment, and the Council took out N$ 2,000 in cash. Calculate the Village Council's owner's equity for the year ended March 2018 and give reason for your answers. (10 marks) Page 9 of 11