THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL OF TANZANIA

CERTIFICATE OF SECONDARY EDUCATION EXAMINATION

062 BOOK KEEPING

(For Both School and Private Candidates)

Time: 3 Hour 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 sections A, B and C.
3. Section A carries fifteen (15) marks, section B carries forty (40) marks and C carries forty five (45) marks.
4. Non-programmable calculators may be used.
5. Communication devices and any unauthorized materials are not allowed in the examination room.
6. Write your Examination Number on every page of your answer booklet(s).

SECTION A (15 Marks)

Answer all questions in this section.

1. For each of the items (i) - (x), choose the correct answer from the given alternatives and write its letter beside the item number in the answer booklet provided.

(i) Given opening capital of TZS 500,000, closing capital of TZS 1,800,000, and drawings for the year of TZS 200,000; how much would be the profit or loss for the year?

1. Loss for the year is TZS 1,000,000
2. Loss for the year is TZS 2,100,000
3. Profit for the year is TZS 2,500,000
4. Loss for the year is TZS 1,100,000
5. Profit for the year is TZS 1,500,000

(ii) Which accounts balances would appear on the debit column of the Trial Balance?

1. Accounts payable and Accounts receivable
2. Accounts receivable and Interest paid
3. Rent received and Accounts payable
4. Bank overdraft and Account receivable
5. Interest received and Bank Overdraft

(iii) Which item would not be considered in the process of preparing Receipts and Payments account for the religious organization?

1. Cheques paid during the year
2. Subscriptions received
3. Surplus
4. Bank balance
5. Receipt from sale of asset

(iv) Ms. Akilimali started business with cash from her savings of TZS 1,000,000, equipment valued TZS 200,000, motor van valued TZS 2,000,000 and a loan from Faraja SACCOs TZS 300,000. How much would be Ms. Akilimali’s capital?

1. TZS 1,200,000
2. TZS 3,500,000
3. TZS 2,900,000
4. TZS 2,200,000
5. TZS 3,200,000

(v) What is the recommended method of apportioning expenses in accounting for departmental stores?

1. To allocate expenses in proportion to sales
2. To charge against each department its uncontrollable costs
3. To charge equally to each department
4. To allocate expenses in proportion to purchases
5. To charge against each department its controllable costs

(vi) If the Book Keeper debited the repair cost for office equipment of TZS 50,000 to office equipment account, what would be the effect on income statement?

1. Net profit would be understated
2. Net profit would be overstated
3. Net profit would not be affected
4. Assets would be understated
5. Both gross profit and net profit would be overstated

(vii) Which items would you record on the credit side of the Sales Ledger Control Account?

(i) Bad debts
(ii) Returns outwards
(iii) Provision for bad debts
(iv) Returns inwards

1. (i) and (ii)
2. (i) and (iii)
3. (ii) and (iii)
4. (iii) and (iv)
5. (i) and (iv)

(viii) A retailer is offered credit terms of 2% on invoice price when payment is made within 10 days, otherwise the debt is to be paid in full within 30 days (i.e. 2/10, n/30). Which kind of discount is reflected in this business arrangement?

1. Trade discount
2. Cash discount
3. Bank discount
4. Retail discount
5. Production discount

(ix) Which one are the primary objectives of hiring external auditor annually?

(i) To detect errors and fraud
(ii) To prove true and fair view of business state of affairs
(iii) To be assisted to improve accounting system
(iv) To confirm if proper books of accounts are being kept

1. (i) and (ii)
2. (i) and (iii)
3. (ii) and (iii)
4. (ii) and (iv)
5. (iii) and (iv)

(x) Your school bought a combine harvester machine for TZS 20,000,000. It is to be depreciated at a rate of 25% per annum on diminishing balance. What would be the remaining book value of the machine after 2 years?

1. TZS 10,000,000
2. TZS 15,000,000
3. TZS 5,000,000
4. TZS 16,250,000
5. TZS 11,250,000