FORM THREE BKEEPING ANNUAL EXAMS

PRESIDENT'S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

FORM THREE ANNUAL EXAMINATION

062 BOOK KEEPING

TIME: 3:00 Hours November, 2025

INSTRUCTIONS

  • Answer all question in section A, B, and C.
  • Show your working clearly

SECTION A: 

Answer all questions in this section

1. Choose the correct answer and write its letter in the box provided.

i. Who is a Paymaster General (PMG) of The United Republic of Tanzania?

  1. The shadow minister of the ministry of planning and finance.
  2. Controller and Auditor General (CAG).
  3. The minister of the ministry planning and finance.
  4. The permanent secretary of the ministry of planning and finance.
  5. The permanent secretary

ii. When a petty cash book is kept there will be;

  1. More entries will be made in the cash book.
  2. More entries made in the general ledger
  3. Fewer entries made in the general ledger
  4. The same number of entries in the general ledger
  5. No entries made at all in the general ledger for items paid by petty cash.

iii. When the final accounts are prepared, the Bad Debts Account is closed by a transfer to the;

  1. Balance Sheet. 
  2. Profit and Loss Account. 
  3. Cash flow statement. Debts Account
  4. Trading Account.
  5. Provision for Doubtful

iv. Overlooking an item of stock costing TZS. 1,000 (selling price TZS. 1,500) during the yearend stocktaking would result in:

  1. Overstating Gross Profit by TZS. 1,500.
  2. Overstating Current Assets by TZS. 1,500.
  3. Understating Gross Profit by TZS. 1,000.
  4. Overstating Gross Profit by TZS. 1,000.
  5. Overstating net profit by TZS. 1,500

v. The total of the ‘Discounts Allowed’ column in the Cash Book is posted to;

  1. The debit side of cash account.
  2. The debit of the Discounts Allowed account
  3. The debit of the Discounts Received account.
  4. The credit of the Discounts Allowed account. 
  5. The credit of the Discounts Received account

vi. CHEQUE which is not accepted for payment by the bank due to insufficient fund in the drawer’s bank account is known as;

  1. Staled CHEQUE. 
  2. Un-credited CHEQUE. 
  3. Dirty CHEQUE.
  4. Un-presented CHEQUE.
  5. Dishonored CHEQUE

vii. Which of the following is a revenue expenditure associated with a motor vehicle? 

  1. Motor vehicles account
  2. Carriage inwards costs of a motor vehicle
  3. Motor vehicles running costs
  4. Import duties for a new motor vehicle
  5. Wages to a driver who brought a motor vehicle to the business

viii. Company paid in advance TZS. 48,000 for two years insurance which started on 1st May 2016 and recorded the whole amount as an asset. The adjusting entry on fiscal year ended 31st December 2016 of that year is;

  1. Debit insurance expenses; credit prepaid insurance TZS. 12,000.
  2. Debit insurance expenses; credit prepaid insurance TZS. 8,000.
  3. Debit prepaid insurance expenses; credit insurance expenses TZS. 16,000.
  4. Debit insurance expenses; credit prepaid insurance TZS. 16,000.
  5. Debit insurance expenses; credit cash book TZS. 16,000.

ix. What should happen if the balance on a Suspense Account is of a material amount?

  1. Should be written off to the balance sheet.
  2. Carry forward the balance to the next period.
  3. Find the error(s) before publishing the final accounts.
  4. Write it off to Profit and Loss Account.
  5. Write-off the amount through profit or loss.

x. Basic rule of double-entry bookkeeping is;

  1. Every debit entry must be matched by another debit entry.
  2. Debit the giver and credit the receiver.
  3. Every credit entry must be matched by another credit entry.
  4. Debt the receiver and credit the giver.
  5. Every transaction to be recorded twice.

2. Match the items in Column A with the responses in Column B by writing the letter of the correct response in the answer sheets provided.

Column A

 Column B
  1. A section used to determine net profit or loss.
  2. A statement used to show cash in and out of the business.
  3. A statement used to prepare financial statements at the end of an accounting period. 
  4. A statement which proves an accounting equation.
  5. A section for determination of gross profit or loss
  1. Trial balance. 
  2. Statement of cash flows. 
  3. Trading section. 
  4. Profit and loss section. 
  5. Balance sheet. 
  6. Statement of changes in equity. 
  7. Bank reconciliation statements 
  8. Notes to financial statements.

SECTION B: 

Answer all question in this section

3. Mtumba confused when his cash book and bank statement balance disagree on 31 December 2007 the following are details found which lead to that problem

  • Cash at bank as per bank column of the cash book 16,000/=
  • Unpresented cheques 3,500 /=
  • Cheques received and paid into the bank, but not yet entered on the bank statement 3,950 /= Bank charges 1,350/=
  • Credit transfers entered as banked on the bank statement but not entered in the cash book 3,700/=
  • Cash at bank as per bank statement 17,900

Prepare the bank reconciliation statement as at 31st December 2024

4. Nunda Kimti his trial balances total amount did not match. You as expert of bookkeeping correct the errors below by showing the entry on journal (narration not necessary)

  1. Extra capital of Tshs. 5,000 paid into the bank had been credited to Sales account.
  2. Goods taken for own use Tshs 72,000/= had been debited to Sundry Expenses.
  3. Private rent Tshs 2,300/= had been debited to the Rent account.
  4. A purchase of goods from D Pine Tshs 3,990/= had been entered in the books as Tshs 4,790/=

5. Kiumbe Katoto made the payment of different activities on behalf of his Accountant.. as commerce student help Mr. Katoto to arrange that payment in the types of the as shown in the table below.


 BUSINESS EVENTS TYPE OF EXPENDITURE
I Electricity costs of using machinery
II The cost of acquiring patent rights.
III Painting outside of new building
IV A motor vehicle bought for re-sale by a motor dealer.
V Twelve dozen sets of cutlery, purchased by a cateringfirm for a new dining-room.
VI Cost of hiring refrigeration plant in a butcher’s shop.
VII The cost of installing a new machine.
VIII Repairs to a fritterers’ van.
IX Break-down van purchased by a garage
X Petrol costs for van

6. Mr. Mpita his stock was stolen on 1 June 2001. The last time that a stock-taking had been done was on 31 December 2000, the last balance sheet date, when stock was valued at cost at Tshs.20,000/=. Purchases from then until 1 June 2001 amounted to Tshs 138,000/= and sales in that period were Tshs.165,500/=. The gross profit of his business often is 15 percent of sales . As his friends help him to determine the cost of goods stolen.

SECTION C: Answer all questions on this section

7. Sikitu Ltd provides for depreciation of its machinery at 20% per annum on cost; it charges for a full year in the year of purchase but no provision is made in the year of sale/disposal.

Financial statements are prepared annually to 31 December.

2001

  • January 1 Bought machine ‘A’ Tshs 10,000 July 1 Bought machine ‘B’ Tshs 6,000.

2002

  • March 31 Bought machine ‘C’ Tshs 8,000

2003

  • October 7 Sold machine ‘A’ – proceeds Tshs 5,500
  • November 5 Bought machine ‘D’ Tshs 12,000

2004

  • February 4 Sold machine ‘B’ – proceedsTshs3,000
  • February 6 Bought machine ‘B’ Tshs 9,000
  • October 11 Exchanged machine ‘D’ for a motor vehicle valued atTshs7,000 

Prepare

  1. The accumulated provision for depreciation on machinery account, for the period 1st January2001 to 31st December 2004
  2. The disposal of machinery accounts showing the profit/loss on sale for each year.

8. From the following figures, compile account receivable ledger and account payable ledger control accounts for the month, and ascertain what the net balances of the respective ledgers should be on 31 January 2010.

Balances on 1 January 2010 Tshs

  • Debtors ledger – Dr 139,386
  • Debtors ledger–Cr 735 
  • Creditors ledger – Dr 4,416
  • Creditors ledger –Cr 76,395

Total for the month to 31 January 2010

  • Purchases 229,422
  • Sales 378,072
  • Purchase returns 6,462
  • Sales returns 11,000
  • Debtors accounts settled by contra accounts with creditors 1,365
  • Bad debt written off 3,759
  • Discounts and allowances to customers 2,238
  • Cash received from customers 350,392
  • Cash discount received 5,826
  • Cash paid to creditors 211,428
  • Cash paid to customers 156

9. The following trial balance was extracted from the books of Free Dodo Shop at the close of business on 28 February 2012.

 

Dr  Tshs

Cr  Tshs 
Purchases and sales 371,200 628,660
Cash at bank 16,400
Cash in hand 324
Capital account 1 March 2011
45,600
Drawings 68,400
Office furniture 11,600
Rent 13,600
Wages and salaries 125,600
Discounts 3,280 640
Debtors and creditors 49,264 20,980
Inventories  1 March 2011 16,480
Provision for doubtful debts 1 March 2011
1,620
Delivery van 15,000
Van running costs 2,480
Bad debts written off 2,920

697,500 697,500

Other information

  1. Inventories 28 February 2012 Tshs 9,600.
  2. Wages and salaries accrued at 28 February 2012 Tshs 13600.
  3. Rent prepaid at 28 February 2012 Tshs 920.
  4. Van running costs owing at 28 February 2012 Tshs 288.
  5. Increase the provision for doubtful debts by Tshs 364.
  6. Provide for depreciation as follows: Office furniture Tshs 1520; Delivery van Tshs 5,000.

Required:

  • Prepare the income statement for the year ending 28 February 2012 together with a statement of financial position as on 28 February 2012.

FORM THREE BKEEPING EXAM SERIES 251  

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FORM THREE BKEEPING EXAM SERIES 251  

THE PRESIDENT’S OFFICE MINISTRY OF EDUCATION, REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

COMPETENCY BASED SECONDARY EXAMINATION SERIES

BOOK KEEPING FORM THREE

Time: 2:30 Hours November, 2022

Instructions

  1. This paper consists of sections A, B and C with a total ofnine (9) questions.
  2. Answer all questions in sections A and B and two (2) questions from section C.
  3. Section A carries twenty (20) marks, section B forty (40) marks and section C carries forty (40) marks.
  4. All writings should be in blue or black ink pen and all drawings should be in pencil.
  5. Non programmable calculators may be used.
  6. Cellular phones, programmable calculators and any unauthorized materials are not allowed in the examination room.

SECTION A (20 Marks)

Answer all questions in this section

  1. For each of the items (i) – (xv), choose the correct answer from among the given alternatives and write its letter besides the item number in the answer booklet provided:
  1. How could a purchases of a non- current assets by cheques affect the statement of financial postion?
  1. By decreasing non-current assets account and decreasing bank account
  2. By increasing bank account and decreasing asset account
  3. By increasing non-current asset account and decreasing cash account
  4. By increasing cash account and decreasing asset account
  5. By increasing non-current asset account and decreasing bank account
  1. Which of the following errors would be disclosed by the Trial Balance?
  1. Credit sales of TZS 20,000/= entered in the books as TZS 2,000/=
  2. Cheque for TZS 65,000/= from R.James entered in R.James as TZS 59,000/=
  3. Cash sales TZS 100,000 were completely omitted in the books
  4. Selling expenses TZS 5,000 had been debited to sales Account.
  5. A purchase of goods worth TZS 2,500/= omitted from the books
  1. Which of the following depreciation methods uses the reduced value to compute the depreciation of non-current assets?


  1. Straight line method
  2. Sum of the years’ digit methods
  3. Diminishing balance method
  4. Unit of output method
  5. Revaluation method


  1. At the beginning of Accounting year, a club had TZS 14,000/= as non-current Assets, TZS 5,000/= as current Assets and TZS 5,000/= as liabilities. What would be its opening Accumulated fund?


  1. TZS 4,000/=
  2. TZS 14,000/=
  3. TZS 12,000/=
  4. TZS 24,000/=
  5. TZS 10,000/=


  1. Form three students were arguing on which primary and basic objective of preparing a trial balance is. Which of the following uses is the basic purpose of preparing a trial balance?
  1. A trial balance is used for internal control as back up document
  2. A trial balance is used as a tool for preparing financial statements
  3. A trial balance is used to check arithmetical accuracy of double entry
  4. A trial balance is used to present a list of balances at one place
  5. A trial balance is used to determine profit or loss of a business
  1. Which of the following are the examples of revenue expenditure?
  1. Purchases of goods and payment for electricity bill in cash
  2. Repair of van and petrol costs for van
  3. Buying machinery and paying for installation costs
  4. Electricity costs of using machinery and buying van
  5. Wages paid to the worker who operates a machinery
  1. Money contributed by individuals under non-profit marking organization is known as:


  1. Capital introduced
  2. Capital owed
  3. Capital employed
  4. Working capital
  5. Accumulated fund


  1. A firm bought a machine for TZS 16,000/=. It is expected to be used for 5 years then sold for TZS 1,000/=. What is the annual amount of depreciation if the straight-line method is used?


  1. TZS 3,200/=
  2. TZS 3,100/=
  3. TZS 3,750/=
  4. TZS 3,000/=
  5. TZS 6,000/=


  1. When business entity paid rent of TZS 800,000/=. The payment was recorded in the books as follows. Debit: “Bank” TZS 800,000/= and Credit: Rent TZS 800,000/=. What entries will be posted to rectify this error?
  1. Debit “Bank” TZS 800,000/= and credit “Rent” TZS 800,000/=
  2. Credit “Rent” TZS 800,000/= and credit “Bank” TZS 800,00/=
  3. Debit “Bank” TZS 800,000/= and Credit “Rent” TZS 1,600,000/=
  4. Debit “Rent” TZS 1,600,000/= and credit “Bank” TZS 1,600,000/=
  5. Debit “Bank” TZS 1,600,000/= and credit “Rent” TZS 1,600,000/=
  1. Baraka wants to start up a business dealing with Clothing Wholesale Store, but he does not have enough capital to commence his business. The following can be used as the sources of capital for his business EXCEPT:
  1. Money borrowed from bank
  2. Money saved for business start up
  3. Money saved for building a private house
  4. Cash received from the sales of shares
  5. Cash received from the sale of his private car
  1. Government expenditures on items from which the government attains no value are called.


  1. Development expenditure.
  2. Recurrent expenditure.
  3. Capital expenditure.
  4. Revenue expenditure
  5. Nugatory expenditure.


  1. A business owned by Esther had an opening and closing capital balances of TZS 57,000/= and TZS 64,300/= respectively. The drawings during the same year amounted to TZS 11,800/=. What was the amount of profit made by her business during that year?


  1. TZS 19,100/=
  2. TZS 16,600/=
  3. TZS 5,000/=
  4. TZS 19,600/=
  5. TZS 18,600/=


  1. Mtumzima Art Creators is a registered company dealing with production and supply of the artistic works. During October 2022, it Purchased machinery for cash costing TZS 35,000,000/=. What will be a double entry for this transaction?
  1. Debit Cash account, Credit Machinery account
  2. Debit Purchases account, Credit Machinery
  3. Debit machinery account, Credit Cash account
  4. Debit Purchases account , Credit cash account
  5. Debit purchases account, Credit machinery account
  1. What is the effect of TZS 500,000/= being added to Purchases instead of being added to a non-current asset?
  1. Net profit would be understated
  2. Net profit would be overstated
  3. Both Gross profit and Net profit would be understated
  4. Net profit would not be affected
  5. Gross profit would be affected
  1. Depreciation can be described as the
  1. Amount spent to buy a non-current asset.
  2. Salvage value of a non-current asset.
  3. Cost of the non-current asset consumed during its period.
  4. Amount of money spent replacing non-current asset.
  5. Cost of old assets plus new purchased.
  1. If the Assets of the business amounted to TZS 85,000/= and Owner’s Capital is TZS 60,000/= How much is the Liabilities of the business?


  1. TZS. 45,000/=
  2. TZS. 145,000/=
  3. TZS.25,000/=
  4. TZS.85,000/=
  5. TZS 60,000/=


  1. For each of the items (i) – (v), match the descriptions of correction of errors terms in Column A with their corresponding names in Column B by writing the letter of the correct response beside the item number in the answer sheet:

COLUMN A

COLUMN B
  1. Where a transaction is entered in the wrong personal account
  2. Where an item is entered in the wrong class of account
  3. Where an entry is made in the wrong side of account
  4. Where a transaction is completely not recorded in the books
  5. Where the transaction is entered with the incorrect figure

A. Error of complete reversal entries

B. Error of compensating

C. Error of commission

D. Error of principle

E. Error of original entry

F. Error of omission

G. Transposition error

SECTION B (40 Marks)

Answer all questions in this section

  1. Briefly describe the meaning of the following terms as used in book keeping:


  1. Accrued expenses
  2. Book keeping
  3. Credit transaction
  4. Carriage outwards
  5. Net profit
  1. Upendo is a business woman who owns a Jewels shop in Arusha. She is also a customer of CRDB bank. Upendo prefers to settle her debts using cheques. In the last month, she wrote a cheque to Onesmo, her creditor, for which the bank refused to settle it. In five points outline the reasons for this to happen.
  2. On 31st December 2017, the cash book balance of ShedrackTraders was TZS 25,370/= where the bank statement showed a credit balance of TZS 25, 670/=. In comparing these two balances, the following were discovered;
  1. Cheques not yet presented for payment TZS 12,340/=
  2. Cheques paid into the bank but not yet credited by the bank account TZS 12,160/=
  3. Items shown in the bank statement but not yet entered in the cash book were as follows:
  1. Bank charges TZS 240/=
  2. Standing order TZS 460/=
  3. Dividends collected by the bank TZS 820/=

Required:

  1. Bring the cash book to date to show the correct cash book balance.
  2. Prepare a bank reconciliation statement starting with the adjusted cash book balance.
  1. Rule a petty cash book under the following headings: - Postage, stationery, Petrol, entertainment and ledger.

2020 TZS

March 12 Petty cashier received cash from main cashier…………………. 15,000

14. Paid postage………………………………………….. 500

16. Paid entertainment…………………………………… 3,000

18. Paid petrol…………………………………………….. 1,200

20. Paid B. Robert, a creditor……………………………… 4,000

25. Paid for stationery…………………………………… 1,700

29. The cashier reimbursed the petty cashier the amount spent in the period.

SECTION C (40 Marks)

Answer two (2) questions from this section.

  1. Mtumzima Transport Company with the financial year ending on 31st December, bought two motor vans on 1st January 2011, No 1 for TZS 18,000,000 and No 2 for TZS 15,000,000. It also buys another van, No. 3 on 1st July 2012, for TZS 19,000,000 and another No 4 on 1st October, 2013 for TZS 17,200,000 the van No 1 was sold for TZS 6,290,000 on 30th September 2014. It is a company’s policy to charge depreciation at 15% per annum using a straight line method for each month of ownership basis.

Required: Prepare for the year ended 31st December, 2011, 2012, 2013 and 2014.

  1. Motor van account
  2. Accumulated Provision for depreciation account
  3. Motor van disposal account


  1. The following trial balance has been extracted from the ledger of Julius, a sole trader.

Trial balance as at 31st May, 2022

S/N

Name of account

DR

CR

1

Purchases and sales

82,350

138,078

2

Carriage

5,144

3

Drawings

7,800

4

Rent, rates and insurance

6,622

5

Postage and stationery

3,001

6

Advertising

1,330

7

Salaries and wages

26,420

8

Bad debts

877

9

Allowance for doubtful debts

130

10

Accounts receivables and payables

12,120

6,471

11

Cash in hand

177

12

Cash at bank

1,002

13

Inventory as at 1.6.2021

11,927

14

Equipment (at cost)

58,000

15

Accumulated depreciation on equipment

19,000

16

Capital

53,091

The following additional information as at 31st May, 2022 is available:

  1. Rent is accrued by TZS 210/=
  2. Rates have been prepaid by TZS 880/=
  3. TZS 2,211 of carriage represent carriage on purchases
  4. Equipment is to be depreciated at 15% p.aon cost.
  5. The allowance for doubtful debts to be increased by TZS 40/=
  6. Inventory at the close of business has been valued at TZS 13,551/=

Required:

Prepare Julius’s Income statement for the year ending 31st May, 2022 and a Statement of financial position as at that date.

  1. The following information is available from the books for Abigail Wholesale Store on 1st September, 2021:

Balances in purchases ledger TZS 120,000 (CR)

Balances in sales ledger TZS 7,100 (CR)

Balances in purchases ledger TZS 4,800 (DR)

Balances in sales ledger TZS 163,100 (DR)

During September 2021:

Sales 140,000

Purchases 88,000

Returns inwards from debtors 55,000

Returns outwards from creditors 7,300

Receipts from debtors 91,300

Payments to creditors 76,700

Discount allowed 4,000

Discount received 2,200

Bad debts written off 3,800

Provision for bad debts increased by 600

Debtorscheque dishonored 7,500

Interest charged to debtors on overdue accounts 500

Sales ledger debit transferred to purchases Ledger 9,600

Notes:

  1. 10% sales and discount allowed relate cash transactions
  2. 5% of the goods bought during the month were destroyed by fire, the insurance company had agreed to pay adequate claim.

You are required to prepare:

  1. A sales ledger control account
  2. A purchases ledger control account


FORM THREE BKEEPING EXAM SERIES 106  

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FORM THREE BKEEPING EXAM SERIES 106  

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