PRIME MINISTER’S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

FORM FOUR SECONDARY TERMINAL EXAMINATION

062 BOOK KEEPING

(For both school and private candidates)

Time: 3: 00 Hours

Instructions

1. This paper consists of sections A, B and C with a total of nine (9) questions.
2. Answer all questions.
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. Cellular phones and any unauthorized materials are not allowed in the examination room.
7. Write your examination number on every page of your answer booklet(s) or sheet(s) provided.

SECTION A: (15 Marks)

Answer all questions

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

i.  Tshs 500 cash taken from the cash till and banked is entered

1. Debit cash column Tshs. 500: Credit bank column Tshs. 500
2. Debit bank column Tshs. 500: Credit cash column Tshs. 500
3. Debit bank column Tshs. 500: Credit bank column Tshs. 500
4. Debit cash column Tshs. 500: Credit cash column Tshs. 500
5. Debit bank column Tshs. 500

ii.  The capital in the business at start of the year was Tshs. 120,000. At the end of the year was Tshs. 142,000. Drawing was Tshs. 1,000 per month. What was the net profit for the year?

1. Tshs. 21,000
2. TShs. 35,000
3. TShs. 22,000
4. TShs. 34,000
5. TShs. 23,000

iii.  If a non-trading organization operates a bar for profit purpose which of the following would determine if that activity made a profit or loss

1. Receipts and payments account
2. Subscription account
3. Income statement
4. receipts and expenditure statement
5. Statement of financial position

iv.  A business has the cost of goods sold worth TShs.150,000 and the mark-up of 40%. Calculate the amount of sales for the business

1. TShs. 210,000
2. TShs. 90,000
3. TShs. 102,000
4. Tshs. 150,000
5. TShs 60,000

v.  When comparing the performance of individual departments, which of the following statement should be compiled?

1. Department account
2. Statement of financial position
3. Departmental current account
4. Departmental income statement
5. departmental income and expenditure

vi.  Kulwa and Dotto share profits and losses in the ratio 3:2. Their partnership recorded net profit of Tshs 1,400, interest on capital Tshs 420, partner’s salaries Tshs 100 and drawings TShs 280. Determine Dotto's share of the profit

1. 840
2. 650
3. 506
4. 464
5. 560

vii.  When customer return goods previous sold to him, the shopkeeper will use a document called

1. Credit note
2. Order note
3. Invoice
4. Debit note
5. Purchases order

viii.  The following are the source of documents

1. Cheque, invoice, cheque paid
2. Invoice, cash receipts, debit note
3. Sales, credit note, cheque
4. Credit note, debit note, cash
5. purchases, cash, cheque paid

ix.  Which of the following is not correct about the petty cashbook?

1. It reduce the number of entries in the nominal ledger
2. The cash spent every month is fixed
3. Cash spent is reimbursed every end of period
4. Petty cashier receives cash from chief cashier
5. Cash spent is reimbursed at the end of the year

x.  In government accounting a term family is referred to

1. Mother, wife and children
2. All relatives
3. Wife and children
4. Father, wife and children
5. Mother, father, wife and children

2.  For each of the items (i) – (v), match the descriptions of the items 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 sheets provided:

SECTION B: (40 Marks)

Answer all questions from this section

3.  Mashaka who owned a retailer business, is not aware of accounting concepts and principles, explain to him the following concepts so that he can understand and apply in his business

1. Money measurement concept
2. Business entity concept
3. Historical cost concept 
4. Dual aspect concept
5. Going concern concept

4.  Maige company Traders failed to prepare correct trial balance as seen below. You as a student who is expected to sit for National Examination this year 2024. Assist Maige Co. Traders to prepare correct trial balance basing to accounting principles and concepts.

5.  The following transactions were obtained from the books Mchonga Motor cycle spare parts for the month of September 2016.

• 2^nd Sold the following to Zuberi on credit 20 tyres @ TShs 30,000 and 6 boxes of oil @ TShs 10,000, less 20% discount
• 8^th Sold on credit to Mussa 16 boxes of bulbs @ TShs 10,000 and 10 side mirrors @ TShs 12,000 less 15% discount
• 19^th Credit to A. MpiliTShs 24,000 
• 25^th Sold on credit to Mazengo 7 used motorcycles @ TShs 100,000 and 14 boxes of rubber @ TShs 15,000 less 25% discount 
• 28^th sold on credit spare parts to Josky TShs 30,000

Required

Enter the above transactions in the sales Journal

6.  You are well experienced and good book keeper, identify five (5) challenges facing the government accounting system in Tanzania.

SECTION C (40 Marks)

7.  From the following transaction prepare the suspense Account and pass the Journal entries to rectify the following errors. Assuming that at the end of the trading period it was discovered that there was a difference of TShs 35,670 which was debited to the suspense account

1. TShs 17,500 paid in cash for new electronic typewriter had been charged to office expenses account.
2. Drawing amounting worth TShs 12,500 by cheque were completely omitted from the books.
3.  A purchase of goods from M. Batanga for TShs 25,000 were credited to the account of M. Batanga.
4. Sales of goods worth TShs 9,600 made to Meshack Co. Ltd account was correctly entered in the sales day book, but was posted to Meshack Co. Ltd account as TShs 10,600 while total sales of the month were over casted by TShs 1,000.

5.  Goods purchased from Calorine Maguu & Sons for TShs 15,050 recorded in the purchase’s day book from the invoice as TShs 15,500 and posted to the purchases account and Calorine Maguu & Sons in the ledger accordingly.
6.  A cash purchases of tools TShs 12,300 from Goodone hardware a supplier were entered in the cash book only.
7.  A page in the purchases book was overacted by TShs 12,000.
8.  The sales account was under casted by TShs 4,000.
9. The petty cash book balance of TShs 7,100 were omitted from the trial balance.
10.  N.Cheupe was credited with TShs 7,740 instead of TShs 7,470.
11.  A sale of TShs 14,000 was incorrectly credited to K. Haonga a debtor
12.  A payment of TShs 9,200 made for carriage on purchases was posted to carriage inwards account.
13. A cash discount of TShs 2,000 allowed to a debtor was correctly posted to his Account but was credited to discount received account.

8.  From the following particular extracted from the book of trader. Prepare total accounts receivable and total accounts payable for the year ended 30^th November 2022.

• Balance on 1^st January 2022

• According to the Audited Financial Statement for the previous year accounts receivable and accounts payable as at 1^st December 2021 were TShs 26,555 and 43,450 respectively.

9. Naweza Company Limited own a manufacturing industry which had the following record for the year ended at 31^st December 2021

Inventory (stock) at 1st January 2021 Tzs 

Direct materials . . . . . . . . . 10,000

Work in progress . . . . . . . . 38,000

Finished goods . . . . . . . 40,000

Purchases (Direct materials) . . . . . . 140,000

Carriage inwards . . . . . 24,000

Direct wages . . . . . . . . . 222,000

Direct expenses (patent royalties) . . . . . . . . 46,000

Indirect matereials . . . . . . . 45,000

Indirect labour . . . . . . . 72,000

Rent: Factory . . . . . . 100,000

Office . . . . . . . . 90,000

Total payment to suppliers. . . . . . . 503,970

Discount Allowed (all to credit customers). . . . 5,520

Discount received (all from credit suppliers). . . . . . . 3,510

Refund given to cash customers . . . . 5,070

Heating, lighting and power: Factory . . . . . . 45,000

Office . . . . . . . . 35,000

Sales . . . . . 1,300,000

Administration salaries and wages . . . . . 175,000

• Additional Information

a) Inventory (stock) at 31^st December 2021 was as follows

• Direct materials TShs 18,000
• Work in progress TShs 20,000 Finished goods TShs 60,000

b) Depreciation is to be provided on noncurrent assets as follows;

• Factory building TShs 20,000
• Factory machinery TShs 36,000 Office equipment TShs 24,000

c) Factory profit is to be calculated at 15% on the cost of production

You are required to prepare;

1. Statement of manufacturing cost for the year ended 31st December 2021 
2. Income statement for the year ended 31st December 2021

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

FORM FOUR BOOK KEEPING EXAMINATION MAY

Time 3:00 Hours MAY 2020 

Instructions

1. This paper consists of sections A, B and C with a total of seven (7)questions.

2. Answer allquestions.

3. Calculators, cellular phones and any unauthorised materials are notallowed in the examination room.

4. Write your Examination Number on every page of your answer booklet(s).

SECTION A (20 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 beside the item number in the answer booklet provided.

(i) A credit balance of sh. 20,000 on the cash column of the cash book would mean that

1. the business owner has Tsh. 20,000 cash in hand.
2. the bookkeeper has drawn Tsh. 20,000 in his cash book.
3. the shop keeper lost Tshs. 20,000 from the business.
4. the shop keeper sold goods on credit for Tsh. 20,000.
5. the business owner spent Tsh. 20,000 more than he/she has received.

(ii) Sales invoices are first entered in the

1. cash book
2. purchases journal
3. sales account
4. sales journal
5. purchases account.

(iii) 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. Buying van and petrol costs for van

(iv) Which of the following is treated as current assets in the preparation of statement of financial position?

1. Unearned revenue
2. Accrued expenses
3. Accrued revenue
4. Depreciation expenses
5. Accumulated depreciation

(v) The total of the Returns Outwards Journal is transferred to the

1. credit side of the returns outwards account
2. debit side of the returns outwards account
3.  credit side of the returns outwards book
4. debit side of the purchases returns book
5. debit side of the sales returns book.

( vi) If current account is maintained then the partners’ share of profit must be

1. debited to partners’ capital accounts
2. credited to partners’ capital accounts
3. credited to profit and loss appropriation account
4. debited to partners’ current accounts
5. credited to partners’ current accounts.

(vii) The value of closing inventories is found by

1. adding opening stock to purchases
2. deducting purchases from opening stock
3. looking in the stock account
4. doing a stock taking
5. adding closing stock to sales account.

(vii) Depreciation can be described as the

1. amount spent to buy a non­current asset
2. salvage value of a non­current asset
3. cost of the non­current asset consumed during its period
4. amount of money spent replacing non­current asset
5. cost of old assets plus new assets purchased.

(ix) If it is required to maintain fluctuating capitals then the partners’ share of profits must be

1. debited to partners’ capital account
2. credited to partners’ capital account
3. debited to partners’ current account
4. credited to partners’ current account
5. credited to partners’ appropriation account.

(x) Which of the following is NOT an asset?

1. Buildings
2. Loan from K Hamis
3. Accounts receivable
4. Cash balance
5. Inventories.

2.  Match the items in Column A with the responses in Column B by writing the letter of the correct response beside the item number in your answer booklet.

  SECTION B (20 Marks)

Answer all questions in this section.

3. (a) State five advantages of using books of original entry.

(b) Briefly explain five types of errors which do not affect the agreement of a trial balance.

4. (a) Identify the accounts in which entries should be made to record each of the following transactions:

(b) Identify five errors that may be revealed by a Trial Balance.

SECTION C (60 Marks)

Answer all questions in this section.

5. (a) (i) Prepaid rent at the beginning of the period was sh. 40,000 and sh. 20,000 was not paid last year. During the year payments of sh. 320,000 was made with respect to rent. It was established that at the end of the period prepaid rent should be sh. 60,000. Without using T­account compute the amount of rent expenses to be transferred to profit and loss account.

(ii) Accrued wages at the beginning of the month was sh. 240,000. At the end of the month sh. 690,000 was transferred to profit and loss account and sh. 10,000 was prepaid. Sh. 320,000 of wages was accrued but not yet paid during the month. Without using T­account compute the amount of wages paid during the year.

(b) Outline five importance of a profit and loss account.

6. (a) Majura and Majuni enter a joint venture to share profits or losses equally resulting from dealings in second­hand digital TVs. Both parties take an active role in the business, each recording his own transactions. They have no joint banking account or separate set of books.

2011

July 1 Majura buys four TVs for a total of sh. 110,000.

3 Majura pays for repairs sh. 84,000.

4 Majuni pays office rent sh. 30,000 and advertising expenses sh. 9,000.

6 Majuni pays for packaging materials sh. 3,400.

7 Majuni buys for a TV in excellent condition for sh. 60,000.

31 Majura sells the five TVs to various customers, the sales being completed on this data and totalling sh. 310,000.

Show the relevant accounts in the books of both joint ventures.

7. On 31st December, 2008 the bank column of Tengeneza’s cash book showed a debit balance of sh. 15,000. The monthly bank statement written up to 31st December, 2008 showed a credit balance of sh. 29,500.

On checking the cash book with the bank statement it was discovered that the following transactions had not been entered in the cash book:

Dividends of sh. 2,400 had been paid directly to the bank.

A credit transfer ­ TRA and Customs VAT refund of sh. 2,600 had been collected by the bank.

Bank charges sh. 300.

A direct debit of sh. 700 for the Charity subscription had been paid by the bank.

A standing order of sh. 2,000 for Tengeneza’s loan repayment had been paid by the bank. Tengeneza’s deposit account balance of sh. 14,000 was transferred into his bank current account.

A further check revealed the following items:

Two cheques drawn in favour of Tamale sh. 2,500 and Fadiga sh. 2,900 had been entered in the cash book but had not been presented for payment.

Cash and cheques amounting to sh. 6,90 had been paid into the bank on 31st December, 2008 but were not credited by the bank until 2nd January, 2009.

(i) Bring the cash book (bank column) up to date, starting with the debit balance of sh. 15,000, and then balance the bank account.

(ii) Prepare a bank reconciliation statement as at 31st December, 2008.