THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL OF TANZANIA

FORM TWO NATIONAL ASSESSMENT

BOOK KEEPING

Time: 2:30 Hours Year: 2024

Instructions

1. This paper consists of Sections A, B and C with a total of nine (9) questions.
2. Answer all questions in the spaces provided.
3. Section A carries fifteen (15) marks, Section B forty (40) marks and Section C carries forty five (45) marks.
4. All writing must be in blue or black ink.
5. Non programmable calculators may be used.
6. Communication devices and any unauthorized materials are not allowed in the examination room.
7. Write your Assessment Number at the top right hand corner of every page.

SECTION A (15 Marks)

Answer all questions in this section.

1. For each of the items (i) – (x), choose the correct answer from among the given alternatives and write its letter in the box provided.

(i) Which of the following best describes the term posting?

1. Making the entry in the journal.
2. Making the first entry of a double entry.
3. Making the second entry of a double entry.
4. Making the entry in the cash book.

(ii) Which action should be taken by the business firm when goods are returned to the supplier?

1. To issue a credit note
2. To issue a debit note
3. To issue a purchases invoice
4. To issue a receipt

(iii) Mwansasu started business on 1^st January 2021 with TZS 10,000,000 in cash. What is the double entry for recording this transaction?

1. Dr Cash account; Cr Capital account.
2. Dr Capital account; Cr Cash account.
3. Dr Mwansasu account; Cr Cash account.
4. Dr Cash account; Cr Mwansasu account.

(iv) Which one of the following errors can cause the disagreement of the trial balance?

1. Errors of complete reversal of entry
2. Compensation errors
3. Wrong posting
4. Errors of original entry

(v) Mr. Ngesa's sales for the year was TZS 9,000,000, returns inwards TZS 1,000,000 and carriage outwards 500,000. How much was the net sales for the year?

1. TZS 10,000,000
2. TZS 8,000,000
3. TZS 8,500,000
4. TZS 9,500,000

(vi) Mr. Baraka issued a sales invoice to Newman for TZS 800,000 offering 10% trade discount and 5% cash discount. How much would be paid by Newman?

1. TZS 760,000
2. TZS 800,000
3. TZS 680,000
4. TZS 684,000

(vii) Mrs. Yamisha, a sole proprietor paid TZS 20,000 for a bus fare on 30^th September 2021. Which column of the petty cashbook should be used to record this expenditure?

1. Postage expenses
2. Cleaning expenses
3. Stationery expenses
4. Travelling expenses

(viii) Mr. Kate, a sole proprietor maintains his office petty cash book on the imprest system. Asha, a petty cashier received a float of TZS 10,000,000. During the month, she paid bus fare TZS 350,000, postage TZS 250,000 and fuel TZS 100,000. How much would be reimbursed to Asha at the end of the month to maintain the float at its original amount?

1. TZS 1,000,000
2. TZS 700,000
3. TZS 300,000
4. TZS 1,700,000

(ix) The debit column of the Trial Balance of Kamugisha is greater than the credit column. Which combination of errors might have caused this difference in the trial balance totals?

1. Commission and omission
2. Omission and compensating
3. Incomplete entry and casting
4. Compensating and transposition

(x) The cash book showed a debit balance of TZS 1,200,000. Credit transfer of TZS 500,000 and standing order of TZS 300,000 are reflected on the bank statement. What would be the adjusted cash book balance?

1. TZS 2,000,000
2. TZS 400,000
3. TZS 1,000,000
4. TZS 1,400,000

SECTION B (40 Marks)

Answer all questions in this section.

2. Match the descriptions of the terms used in government accounting in Column A with their corresponding names in Column B by writing the letter of the correct response below the item number in the table provided.

Answers

3. Differentiate credit note from debit note. Give five points.

4. Complete the following Bank Statement of Mr. Bashange for the month of January 2022 by writing the amount represented by each of the items (i) – (x) beside the item number in the table provided.

Bank Statement for the Month of January 2022

Answers

5. Analyze the transactions made by Mr. Mnzava by showing the accounts involved and indicate whether the account will be affected by an increase or decrease in its balance. Transaction (i) has been done as an example.

6. For each of the items (i) – (v), show how the error would be corrected by writing the name of the account to be debited with its amount and the name of the account to be credited with the amount in the Column of Account with Amount.

SECTION C (45 Marks)

Answer all questions in this section.

7. The following information has been extracted from the accounting records of Mr & Mrs Mwakila for the year ended 31^st December 2021:

Using the information provided, prepare Mr & Mrs Mwakila's Income Statement for the year ending 31^st December 2021 and the Statement of Financial Position as at 31^st December 2021.

8. Ujamaa Business Venture maintains their Petty Cash Book with analysis columns for postage, stationery, office expenses, travelling expenses and ledger accounts. The float is reimbursed on the first day of the month. The Venture had the following transactions for the Month of September, 2022:

Record the transactions for September, 2022 in Ujamaa Business Venture's Petty Cash Book, balance of the book on 30^th September 2022 and reimburse the amount spent in September on 1^st October, 2022.

9. Jimmy Jeremy extracted a Trial Balance from his accounting records on 30^th September 2022. Unfortunately, the trial balance failed to balance and the difference was placed to a suspense account pending further investigation. Later on the following errors were discovered:

(i) Credit sale of TZS 15,000 to Lillian has not been entered in the accounts.

(ii) A payment by cheque for TZS 12,500 to L. Price Ltd, a creditor has been recorded in the account of H. Prince.

(iii) The cost of a new delivery van, TZS 1,000,000 has been entered to vehicle expenses account.

(iv) Postages of TZS 5,500, paid by cheque have been entered on the wrong sides of both accounts.

(v) The totals of the purchases day book and the purchases returns day book have been under cast by TZS 10,000.

(vi) A payment for TZS 89,000 from Linda E., a debtor has been entered in the accounts as TZS 98,000.

(vii) A cheque payment of TZS 127,500 for office expenses has been entered in the cash book but no entry has been made in the office expenses account.

(viii) A payment for photocopying of TZS 130,500 by cheque has been correctly entered in the cash book, but is shown as TZS 117,000 in the photocopying account.

(ix) The sales returns day book has been over cast by TZS 15,000.

(x) Commission received of TZS 37,500 has been entered twice in the account.

Prepare Journal Entries to correct the errors.