THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL CERTIFICATE OF SECONDARY EDUCATION EXAMINATION

062                                                           BOOK KEEPING

(For Both School and Private Candidates)

Time: 3 Hours                                                                                   Friday, 07​^th​November 2014 p.m.

Instructions

1.                   This paper consists of sections A, B and C.

2.                   Answer ​all​ questions.

3.                   Calculators and cellular phones are ​not ​allowed 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 your answer booklet.

(i)                 Which of the following will happen if sh. 7,500 was added to rent instead of being added to fixed assets?

A                   Gross profit would not be affected

B                   Gross profit would be affected

C                   Gross and net profits would be affected

D                   Net profits would not be affected

E                    Neither gross profit nor net profit would be affected.

(ii)               In the trading account, the sales returns should be

A                   added to cost of goods sold

B                   deducted from purchases

C                   deducted from sales

D                   added to sales

E                    added to purchases.

(iii)             When income statements are prepared, the bad debts account is closed by a transfer to the

A                   balance sheet

B                   profit and loss account

C                   trading account

D                   creditors account

E                    debtors account.

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

A                   debited to partners’ capital accounts

B                   credited to partners’ capital accounts

C                   credited to profit and loss appropriation account

D                   debited to partners’ current accounts

E                    credited to partners’ current accounts.

(v)                The value of closing inventories is found by

           A                   adding opening stock to purchases

B                   deducting purchases from opening stock

C                   looking in the stock account

D                   doing a stock taking

E                    adding closing stock to sales account.

(vi)              Which of these statements is incorrect?

            A               Profit is another word for capital.

B                Loss decreases capital.

C                Profit increases capital.

D                Drawings decreases capital.

E                    Profit is added to the capital.

(vii)      A bank reconciliation statement is a statement

            A Sent by the bank when the account is overdrawn

B                   drawn to verify cash book balance with the bank statement balance

C                   drawn up by the bank to verify the cash book

D                   sent by the bank to the customers when errors are made

E                    sent by the bank customers to the friends.

(viii)          What is meant by the term revenue expenditure?

           A         The extra capital paid by the proprietor.

B                   Money spent on non­current assets or adding value to them.

C                   The cost of running the business on day to day basis.

D                   Money spent on selling non­current assets.

E                    Cost of painting fixed asste.

(ix)              The recommended method of departmental account is to

           A            allocate expenses in proportion sales

B                   charge against each department its controllable costs

C                   allocate expenses in proportion to purchases

D                   charge against each department its uncontrollable costs

E                    allocate expenses in equal proportion.

(x)                If the two totals of a trial balance do not agree, the difference must be entered in 

A                   a real account

B                   the trading account

C                   a nominal account

D                   the capital account

E                    a suspense account.

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)        Give five distinctions between ​receipts and payments​ and​ income and expenditure accounts​.

(b)                Highlight five importance of the balance sheet.

4.         (a)        A landlord charges his tenant an annual rent per annum. He accrues for rent owing at the end of each year and also adjusts for rent received in advance.

Entries made by the landlord:

On 1^st​​ January, 2002, tenant owed sh. 180,000 for the year 2001.

In December 2001, tenant paid sh. 400,000 for the year 2002.

During the year 2002 landlord received cash for rent sh. 1,600,000.

At close of 31st December, 2002, accrued rent was sh. 110,000 tenants had not paid and unearned rent revenue was sh. 30,000.

Ascertain the amount to be transferred to profit and loss account for the year ended 31st December, 2002 without using rent received account.

(b)                Outline four essentials of a bill of exchange

(c)                State five limitations of single entry system.

SECTION C (60 Marks)

                             Answer all​ questions in this section.​

5.          M/S Majuto is a sole trader. He extracted the following list of balances from the books of his business on 31^st​​ March, 2011:

                                                                                                                                          Dr                                           Cr

This additional information is available at 31​^st​ March, 2011:

(i)                 Stock was valued at sh. 201,000.

(ii)               Salaries and wages accrued sh. 4,900.

(iii)             Rent and rates prepaid sh. 7,900.

(iv)              An additional sh. 2,700 is to be written off as bad debts, and the provision for doubtful debts is to be adjusted to 2% of debtors after writing off bad debts.

(v)                Goods taken by Majuto for his private use during the year amounted at cost to sh. 3,700. No record of this has yet been made in the books.

(vi)              Depreciation is to be written off as follows: motor van sh. 20,000, office equipment at 15% using the straight line method.

Prepare a trading and profit and loss account for the year ended 31​^st​ March, 2011 as well as a balance sheet as at that date.

6.                   (a)        A trader known as Bushiri does not keep proper books of accounts.  However, he provides the following particulars:

Additional information:

●        During the year 2011, Bushiri introduced sh. 60,000 as additional capital and withdrew sh. 40,000 as drawings.

●        Write off depreciation on furniture at 10% and on equipment at 5%.

Prepare statements of affairs at the end of years 2010 and 2011 as well as statement of profit or loss for the year ended 31​^st​ December, 2011.

                (b)        Summary of receipts and payments of Majimatitu Medical Aid Society for the year ended

31^st​​ December, 2011 are as follows:

Opening cash balance in hand sh. 80,000, subscriptions sh. 500,000.  Donation sh. 150,000.  Interest on investments @ 9% per annum sh. 90,000.  Payments for medicine supply sh. 300,000.  Honorarium to Doctors sh. 100,000.  Salaries sh. 280,000.  Sundry expenses sh. 10,000.  Equipment purchase sh. 150,000.  Charity show expenses sh. 15,000.  Charity shows collections sh. 125,000.

Prepare receipts and payments account as well as subscription account for the year ended 31^st​​ December, 2011.

7.                   A businessman with his financial year end on 31​^st. December bought two vans on 1​            ​^st​ January,

2001, No 1 for sh. 800,000 and No 2 for sh. 500,000.  It also buys another van, No 3, on July

2003are sold, No 2 for sh. 229,000 on 30 for sh. 900,000 and another, No 4, on ^th​​ September, 2004, and No 2 for scrap for sh. 5,000 on 301​^st​ October, 2003 for sh. 720,000.  The first two vans​th  

June, 2005.

Depreciation is on the straight line basis, 20 per cent per annum, ignoring scrap value in this particular case when calculating depreciation per annum.

Show van account, accumulated provision for depreciation account as well as van disposal account for the years ended 31^st​​ December, 2001, 2002, 2003, 2004 and 2005.

www.learninghubtz.co.tz 

THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL CERTIFICATE OF SECONDARY EDUCATION EXAMINATION

062                                                           BOOK KEEPING

(For Both School and Private Candidates)

Time: 3 Hours                                                                                   Friday, 08​^th​November 2013 p.m.

Instructions

1.                   This paper consists of sections A, B and C.

2.                   Answer ​all​ questions.

3.                   Calculators and cellular phones are ​not ​allowed 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.

(i)                 Which of the following should be charged in the Profit and Loss Account?

A       Royalty.    

B       Work in progress.        

C       Direct materials.

                        D       Office rent.       

                       E        Carriage on raw materials.

(ii)               Manufacturing account is used to calculate

  A       production costs paid in the year    

  B          total cost of goods produced     

  C          production costs of goods completed   

  D         gross profit cost of goods sold

E prime cost of goods manufactured.

(iii)             When there is no partnership agreement then profits and losses must be shared

A       in the same proportion as capitals

B       equally to all partners

C       equally after adjusting for interest on capital

D       equally after adjusting for interest on drawings

E        equal proportion minus interest on drawings.

(iv)              What is meant by gross profit?

A       Excess of sales over cost of goods sold.

B       Sales after deducting purchases.

C       Sales plus closing minus purchases.

D       Excess of cost of goods sold over sales.

E        Excess of income over expenditure.

(v)                Customers’ personal accounts are found in

A       the private ledger   

B       general ledger  

C       purchase ledger

                        D       nominal ledger          

                        E      sales ledger.

(vi)              Which of the following should be entered in the Journal?

A       Payment for cash purchases.

B          Fixtures bought on credit.        

                        C        Credit sale of goods.                 

                        D       Sales of surplus machinery.

                        E        Credit purchase of goods.

(vii)            If drawing account is ​not​ maintained, interest on drawing must be

  A       credit to drawing account  

  B      debited to drawing account

                          C    debited to capital account      

                         D      credited to current account

                         E    debited to current account.

(viii)          An allowance for doubtful debts is created

A       when debtors become bankrupt       

B          when there is a need to do so

C          when debtors cease to be in business    

 D         to provide possible bad debts

E  to write­off bad debts during the period.

(ix)              Depreciation can be described as the

            A       amount spent to buy a non­current asset

B       salvage value of a non­current asset

C       cost of the non­current asset consumed during its period

D       amount of money spent replacing non­current asset

E        cost of old assets plus new assets purchased.

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

A       debited to partners’ capital account

B       credited to partners’ capital account

C       debited to partners’ current account

D       credited to partners’ current account

E        credited to partners’ appropriation account.

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.

SECTION B (20 Marks)

Answer ​all​ questions in this section.

3.         (a)        Give seven distinctions between Provision and Reserve.

(b)                List three purposes of a cash book.

4.        (a)        King Majuto is employed by a firm on salary commission basis. His monthly salary is sh.

150,000. He is entitled for commission as follows:

On first sales of sh. 1,000,000 ­ 2%

On the next sales of sh. 2,000,000 ­ 5%

On the balance of sales ­ 10%

King Majuto sold goods worth sh. 6,000,000 for the month of April 2011. Calculate King Majuto’s total income for the month of April 2011.

(b)        The following information was extracted from the final accounts of Majani Mapana’s business on 31^st​ ​ July, 2012.

Calculate the following financial ratios:

(i)                 Margin

(ii)               Mark­up

(iii)             Return on capital

(iv)              Working capital ratio

(v)                Rate of stock turnover.

(c)      Indicate the accounts to be debited or credited from the following transactions.

SECTION C (60 Marks)

Answer ​all​ questions in this section.

5.           J. Kazimoto is the proprietor of a shop selling paintings and ornaments. For the purposes of this financial statements, he wishes the business to be divided into two departments:

Department A Paintings

Department B Ornaments

The following balances have been extracted from his nominal ledger at 31​^st​ August, 2010.

                                                                                                                    Dr                    Cr

You are required to prepare J. Kazimoto’s departmental income statement for the year ending 31​^st August 2010, apportioning the costs, where necessary, to show the net profit or loss of each department.

The appointment should be made by using the methods as shown: Area ­ Fire insurance, lighting and heating, repairs, telephone, cleaning air conditioning; Turnover ­ General office salaries,

Accountancy, general office expenses, rent and rates, administration expenses.

6.         Heri Majaliwa is a sole trader who keeps records of his cash and bank transactions. His transactions for the month of March were as follows:

           March        1         Cash in hand sh. 10,000 cash at bank sh. 567,200

                             4          Heri received a cheque for sh. 124,600 from W. Wanguvu which was paid  directly into the bank. This represented sales.

                            6          Paid wages in cash sh. 3,900.

                            8          Sold goods for cash sh. 15,20

                          10         Received cheque from G. Dasuna for sh. 31,500, in full settlement of a debt of  sh. 34,400; this was paid directly into the bank.

                         11          Paid sundry expenses in cash sh. 7,300.

                         14        Purchased goods by cheque for sh. 80,000.

                         18        Paid J. Samaki a cheque of sh. 18,500 in full settlement of a debt of sh. 20,100.

23                Withdrew sh. 4,500 from the bank for office purposes.

24                Paid wages in cash sh. 3,900.

                             26        Sold goods for cash sh. 9,400.

                             28        Paid salaries by cheque sh. 23,000.

                            31        Retained cash amounting to sh. 15,000 and paid the remainder into the bank.

You are required to enter above transactions within T ­ accounts and bring down the balances.

7.         (a)        From the following transactions prepare the suspense account and pass journal entries to rectify the following errors assuming the existence of suspense account.

(i)                 A cash sale of old furniture sh. 150,000 had been passed through the sales account.

(ii)               Payment of rent sh. 34,000 was debited to the personal account of the landlord.

(iii)             Goods ought from Makala amounting to sh. 275,000 were posted to the credit of his account as sh. 257,000.

(iv)              Sales day book was overcast by sh. 100,000.

(v)                While carrying forward total of one page of the purchases book to the next page, the amount of sh. 647,500 was written as sh. 617,500.

(vi)              Purchases returns to G. Donge worth sh. 155,000 were not recorded in purchases returns book, but the account of G. Donge was duly debited for the amount.

(vii)            Drawings of goods by proprietor costing sh. 15,000 were not recorded in the books of account.

The suspense account had a debit balance of sh. 16,000 prior to the above adjustments.

(b)        From the following particulars extracted from the books of a trader under the single entry system, you are required to find out figures for credit sales, credit purchases by showing the total debtors account, total creditors account as well as bills receivable account.

www.learninghubtz.co.tz 

THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL CERTIFICATE OF SECONDARY EDUCATION EXAMINATION

062                                                           BOOK KEEPING

(For Both School and Private Candidates)

Time: 3 Hours                                                                                       Friday, 12​^th​October 2012 p.m.

Instructions

1.                   This paper consists of sections A, B and C.

2.                   Answer ​all​ questions.

3.                   Calculators are ​not ​allowed in the examination room.

4.                   Cellular phones are ​not allowed in the examination room.​       

5.                   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.

(i)        A statement showing assets, liabilities and capital of a business undertakings in a particular trading period is called a

A       trial balance

B          ledger  

C          balance sheet

                        D   sales day book              

                        E   cash book.

(ii)        Which of the following is the main book of account?

        A       The cash book       

        B       The Journal       

                                C      The petty cash book                             

                                D     The Ledger

                                E      The Journal Proper.

(iii)      The correct method of calculating cost of goods sold is

A       closing stock  + purchases ­ opening stock

B       opening stock + closing stock ­ purchases

C       closing stock + purchases + opening stock

D       opening stock ­ purchases + closing stock

E        opening stock + purchases ­ closing stock.

(iv)      Which of the following statement describes non­current assets?

A       Items bought to be used in the business.

B       Items which will not wear out quickly.

C       Expensive items bought for the business.

D       Items having a long life and bought for resale.

E        Items having a long life and not bought for resale.

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

A       Buildings

B       Loan from K Hamis

C       Accounts receivable

D       Cash balance

E        Inventories.

(vi)      The credit entry for net profit is done in the 

         A     trading account      

         B     drawings account         

                                C      profit and loss account         

                                D      capital account

                                E      income and expenditure account.

(vii)     The total of the purchases journal is entered in the 

A       debit side of purchases day book

B       credit side of the purchases account

C       debit side of the purchases account

D       debit side of the sales account

E        credit side of the sales.

(viii)   Which of the following expression is correct?

A       Assets ­ capital = liabilities

B       Liabilities ­ capital = assets

C       Liabilities = assets = capital

D       Assets + liabilities = capital

E        Capital + assets = liabilities

(ix)     The cost of putting goods into a saleable condition should be charged to

A       trading account

B       sales account

C       profit and loss account

D       receipt and payment account

E        income and expenditure account

(x)      Which of the following describes the meaning of purchases?

A       Goods bought for cash

B       Goods bought on credit

C       Goods bought for resale

D       Goods bought and paid for

E        Goods bought and stored.

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.

SECTION B (20 Marks)

Answer ​all​ questions in this section.

3.        (a)        Define the following terms:

(i)                 Credit transactions

(ii)               Supplementary Appropriation

(iii)             Balance sheet

(iv)              Subsidiary books

(v)                Trial balance.

(b)                List the procedures for balancing off an account.

4.         (a)        Electricity and advertising paid in the year amounted to sh. 300,000. The following information was also provided.

   2010                                        Accrued electricity           Prepaid advertising Jan. 1

                                                        Sh. 25,000                            Sh. 19,000                             Dec. 31                                                    Sh. 40,000                            Sh. 24,000

You are required to compute the amount to be charged to Profit and Loss account without opening accounts.

(b)        Mr. Janguo wants to start a business, but before commencement he needs to learn book keeping. Outline five objectives for him to study the subject.

SECTION C (60 Marks)

Answer ​all​ questions in this section.

5.         In January 1999: Peter and Patel entered into a joint venture for the purchase and sale of goods sharing profit and losses equally. The settlements between the partners were made in cash.

The following transactions took place:

01^st​ ​ May 1999: Peter bought goods for sh. 30,000/= and paid sh. 560/= for sundry expenses in   connection with the purchase.

            10 th May 1999: Patel sold goods costing sh. 20,000/= or sh. 29,000/=, incurring  sh. 200/= as  selling expenses.

           15 th May 1999: Storage expenses were paid by the partners, Patel sh. 1,500/= and Peter sh. 500/=.

           20 th May 1999: Peter sold goods costing sh. 5,000/= for sh. 10,000/= incurring selling expenses of sh. 100/=.

           25 th May 1999: Sh. 1,000/= advertising expenses were paid by the partners. Peter paid sh. 700/= and Patel paid sh. 300/=

          30 th May 1999: The unsold goods were taken by Peter at cost.

Required:

(a)                Write up the personal accounts of the partners as they would be in the books of each partner.

(b)                Draw up the memorandum joint venture account.

6.          The Necessary Noise Sports Club had the following assets and liabilities on 31^st​ ​ December of the

The following summary of the club’s receipts and payments was prepared by its treasurer for 2007:

CASH SUMMARY

Additional information:

(a)                Sports ground was acquired several years ago on a 100 year lease for sh. 50,000.

(b)                The old sports kit sold during the year had a book value of sh. 1,500.

(c)                Write down furniture by sh. 300 and uniforms by sh. 3,500.

Required:

(i)                 Prepare CLub’s Income and Expenditure Account for 2007 (all workings should be shown clearly)

(ii)               Prepare a Balance Sheet as at 31​^st​ December 2007.

7.        (a)        When extracting the trial balance of M. Magwanda & Co Ltd. as at 31​^st​ December, 2000, it was observed that the total debits exceeded the total credits by sh. 476,000.00

Investigations revealed the following errors:

(i)    Sales had been overcast by shs. 30,000.00.

(ii)   Returns outwards account had not been credited with an amount of shs. 122,640.00.

(iii)    A payment by a debtor of shs. 300,000.00 by a direct bank transfer had not been entered in the debtors account.

(iv)     Cash purchases of shs. 4,640.00 had been recorded in the cash book only.

(v)     Shs. 44,000.00 received from a debtor had been debited to his account.

Required:

(a)                Show the necessary journal entries to correct the errors.

(b)                Show the suspense account after taking into account the errors in (a) above.

(c)        Suppose the company made a net loss of shs. 500,000.00 due to errors in (a) above, what would be the correct net profit or loss after the correction of the errors?

(b)        A company depreciates its plant at the rate of 25 percent per annum, straight line method, for each month of ownership. From the following details draw up the plant account and provision for depreciation account for each of the years 2004, 2005, 2006 and 2007 and plant disposal account.

Transactions made during the year were as follows:­

                                2004       Bought plant costing sh. 260,000 on 1 January.

                                              Bought plant costing sh. 210,000 on 1 October.

2006              Bought plant costing sh. 280,000 on 1 September.

2007              Sold plant which had been bought for sh. 260,000 on 1​^st​ January, 2004 for the sum of sh. 81,000 on 31st​ _{​ August, 2007.}

www.learninghubtz.co.tz 

THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL CERTIFICATE OF SECONDARY EDUCATION EXAMINATION

062                                                          BOOK KEEPING

(For Both School and Private Candidates)

Time: 3 Hours                                                                                        Friday, 7​ ​  ^th October 2011 p.m.

Instructions

1.                   This paper consists of sections A, B and C.

2.                   Answer ​all​ the questions.

3.                   Calculators are ​not ​allowed in the examination room.

4.                   Cellular phones are ​not allowed in the examination room.​       

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

This paper consists of 6 printed pages.

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.

(i)                 If opening capital is 412,500/=, closing capital is 283,750/= and drawings is 82,500/=, then:

A       loss for the year is 46,250/=

B          profit for the year is 46,250/=

                        C    loss for the year is 211,250/=                

                        D   profit for the year is 211,250/=

                        E   profit for the year is 128,750/=.

(ii)               A receipt and payment account is used to

            A       calculate the gross profit

B       calculate the net profit        

C       show the opening and closing cash balances

D       show the surplus of income over expenditure

E        show accrued and pre­paid expenses.

(iii)             The correct method of calculating cost of goods sold is

A       closing stock  + purchases ­ opening stock

B       opening stock + closing stock ­ purchases

C       closing stock + purchases + opening stock

D       opening stock ­ purchases + closing stock

E        opening stock + purchases ­ closing stock.

(iv)              If we take goods for personal use we should debit

            A       drawings account, credit purchases account

B       purchases account, credit drawings account

C       drawings account, credit stock account

D       sales account, credit stock account

E        supplier, credit owners.

(v)                A cheque paid by the business owner that is in possession of payee but not yet deposited with the bank is called

A       standing order        

B       dishonoured cheque

                       C        unpaid cheque                            

                       D       unpresented cheque

                       E       drawer’s cheque.

(vi)              Given a cash float of 200,000/=, if 146,000/= is spent in the period, how much will be reimbursed at the end of that period?

A         200,000/=  

B          52,000/=         

C          54,000/=

                        D         346,000/=                    

                        E        146,000/=.

(vii)            If trial balance totals do not agree, the difference must be entered in

A       the profit and loss account 

B        a suspense account

                        C       nominal account                                

                       D      the capital account

                        E      the cash account.

(viii)          Given the cost of goods sold is 320,000/= and margin of 20%, then the sales figure is

A           413,280/=  

B          256,000/=       

C          430,500/=

                       D            400,000/=         

                       E            328,000/=.

(ix)              Discount received is

A       deducted when we receive cash

B       given by us when we sell goods on credit

C       deducted by us when we pay our account

D       not recorded at all

E        given by us to customers.

(x)                When Mussa makes out a cheque for 50,000/= and sends it to Joseph, then Mussa is known as

A          the payee   

B          the banker       

C          the drawee

                       D         the creditor    

                       E         the drawer.

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.

SECTION B (20 Marks)

Answer ​all​ questions from this section.

3.         (a)        A book keeper prepared a Trial Balance on 31/03/2003 which showed a difference of sh. 140 (Excess credit). The difference was placed to suspense account. The following errors were subsequently located:

■    A sale of goods to Bizimungu for sh. 600 had been posted to the wrong side of his account.

■    A credit purchase of goods for sh. 1,640 from Ramson had been posted to the personal account as sh. 640.

■    A cash sale of old furniture for sh. 1,500 had been passed through the sales account.

                              ■   The discount received account had been under cast by sh. 60.

                              ■   Payment of rent sh. 3,400 was debited to the personal account of the landlord.

Pass journal entries to rectify the errors and prepare the suspense account.

            (b)        (i)        What is meant by bank reconciliation statement?

                        (ii)       From the following particulars, draw up a bank reconciliation statement: ­

                 31st​^st​ ^​ December 2005 Cash book balance at bank sh. 12390

                 31 st December 2005 Bank statement balance at bank sh. 11520​

                       ■    Cheques issued and entered in teh cash book but not presented for payment sh. 2520

                   ■    Cheques received and paid into bank but not yet credited by bank sh. 3240

                   ■    Bank charges sh. 150

4.                   Briefly explain the following terms;

(a)                Creditors

(b)                Business entity concept

(c)                Trading account

(d)                Depreciation

(e)                Accrual concept.

SECTION C (60 Marks)

Answer ​all​ questions in this section.

5.          Following is the Receipts and Payments Account of Chilindima Social Club for the year ended December 31​^st​ 2007:

Which the additional information given below, prepare the Income and Expenditure Account, Subscription Account for the year ended 31​^st​ December 2007 and the Balance sheet as at that date.

                                                                    December 31​^st​ 2006           December 31​^st​ 2007

(h)                Book value of furniture sold during 2007 was sh. 3,500.

(i)                 Charge depreciation on furniture at 10 percent per annum on the closing balance.

6.          (a)        A machine was bought for sh. 900,000. It was expected to be useful for 3 years. You are required to calculate depreciation expenses for three years of its use. Use the sum of years’ digits method for your calculations. Prepare provision for depreciation and machine accounts for the three years.

(b)        Show how the following transactions will be recorded in the capital accounts of the partners Tenga and Natengile when their capitals are fluctuating:

7.         Mother Teressa Charitable Association does not maintain her books in the double entry system. From the following information, prepare Trading, Profit or Loss Account and Balance Sheet as at

March 31^st​ ​ 2003.

Creditors as at 31.3.2002 include Sh 15,000 for purchase of Air conditioner.

www.learninghubtz.co.tz 

THE UNITED REPUBLIC OF TANZANIA NATIONAL EXAMINATIONS COUNCIL CERTIFICATE OF SECONDARY EDUCATION EXAMINATION

062                                                           BOOK KEEPING

(For Both School and Private Candidates)

Time: 3 Hours                                                                                         Friday, 8​^th​October 2010 p.m.

Instructions

1.                   This paper consists of sections A, B and C.

2.                   Answer ​all​ the questions.

3.                   Calculators are ​not ​allowed in the examination room.

4.                   Cellular phones are ​not allowed in the examination room.​       

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

This paper consists of 8 printed pages.

SECTION A (20 Marks)

Answer ​all​ questions in this section.

1.                   (i)         Which of the following is not a factor that may cause capital to change?

A       Additional investment

B       Profits

C       Drawings

D       Purchases

E        Losses.

(ii)               The sum of fixed assets and working capital of a business is called

A       capital owned

B       capital employed   

C       circulating capital

D       working capital

E        borrowed capital.

(iii)             The trial balance totals should agree because

A       it is extracted at the year end

B       for every debit there must be a corresponding credit

C       it is a list of balances

D       errors in balancing the ledger accounts are found out

E        it is an account.

(iv)              When John writes a cheque and sends it to James then James is 

A       drawer

B       drawee

C       payer

D       payee

E        receiver.

(v)                A credit balance of 500,000/= in the cash column of the cash book means

A       we have spent more than we have received

B       we have spent less than we have received

C       the bookkeeper has stolen 500,000/=

D       we have 500,000/= cash in hand

E        the bookkeeper has made a mistake.

(vi)              At the end of the financial year, bad debts account is closed by a transfer to the

A       profit and loss account

B       balance sheet

C       trading account

D       account of expected bad debts

E        allowance for doubtful debts account.

(vii)            Credit notes issued by a firm will be entered in its

A       purchases returns account

B       sales returns account

C       sales account

D       sales returns journal

E        purchases returns journal.

(viii)          Discounts allowed are

A       deducted by the business when it pays cash

B       deducted by the business when it receives cash

C       given by the business when it sells goods on credit

D       received by the business when it buys in bulk

E        given to those who buy larger quantities from the business.

(ix)              Which among the following is not a source document?

A       Remittance advice notes

B       Payment vouchers

C       Cash sales slip

D       Sales journal

E        Debit notes.

(x)                A cheque issued but not yet passed through the banking system is called:

A       postdated cheque

B       dishonoured cheque

C       stale cheque

D       unpresented cheque

E        uncredited cheque.

2.                   Match the responses in ​List B​ with the statements in ​List A​ by writing the letter of the correct response beside the item number.

SECTION B (20 Marks)

Answer ​all​ questions from this section.

3.                   Write short notes on the following terms:

(a)                Nugatory expenditure

(b)                Virement

(c)                Collector of revenue

(d)                Civil contingency fund

(e)                Paymaster general (PMG)

4.        On 1^st​ ​ of January, 2000 Masantula started up a new business. During the year ended 31​^st December, 2000 the following debtors were found to be bad and were written off on the dates indicated below;

                                                                                                   Shs.

                                                         10.03.2000 Shelukindo                88,000

                                                         30.05.2000 Shemaombe               51,200

                                                         31.08.2000 Shekidele                    9,600

On 31^st​ ​ December, 2000, the schedule of debtors amounted to shs. 5,480,000 and after an examination it was decided to make a provision for doubtful debts of shs. 176,000.

Prepare the:

(a)                Bad debts account.

(b)                Provision for bad debts account.

(c)                Balance sheet extracts showing how debtors are displayed as on 31​^st​ December, 2000.

SECTION C (60 Marks)

Answer ​all​ questions in this section.

5.           On 5​^th​ March 2004, A. Mwakyusa of Mbeya consigned 1,000 units of goods to C. Omari of Zanzibar, the cost price of which was sh. 800,000. A. Mwakyusa paid the following expenses:

                Carriage                        sh. 200,000                                            

                Marine insurance           sh.   80,000

                Freight                          sh.   90,000

On 30​^th​ June, 2004 C. Omari sent an account sales to A. Mwakyusa, showing that 600 units were sold for sh. 1,200,000 and he incurred the following expenses:

Required:

Record the above transactions in the books of the consignor, showing the calculations of the unsold stock.

6.         Mvumi Consumers Cooperative shop has three departments (Butter and eggs, Poultry and beef, and Bottled goods). The members desired to know the performance of each department for the financial year ending 31^st​ ​ December, 1983.

From the following list of balances you are required to prepare a Departmental Trading and Profit and Loss account in columnar form.

NOTE: With the exception of the following, expenses are to be apportioned equally amongst the departments.

(a)                Delivery expenses, proportionate to sales.

(b)                Commission, 2% of sales.

(c)                Salaries and wages, and Insurance, in the proportional of 6:5:4 respectively.

(d)                Discount received, 1.5% of purchases.

(e)                Other expenses like depreciation, rent and rates, advertising, as well as administration and general expenses should be allocated equally in all

                                                departments.                          

7.         The following is a Trial Balance extracted from the books of a sole proprietor, S.M. Nondo, as at

31^st​ ​ December 1999.

S. M. NONDO

Balance sheet as at 31​^st​ December 1999

The following additional information is provided:

(a)                Make a Provision for depreciation of plant and machinery at 10% p.a. and fixtures and fittings at 15% p.a.

(b)                Increase the provision for bad debts to an amount equal to 4% of sundry debtors.

(c)                Prepaid insurance amounts to 500/=.

(d)                Rates accrued 400/=.

(e)                Closing stock was 60,000/=.

(f)                 During the year Mr. S.M. Nondo took goods worth 2,000/= for his personal use.

Required:

Prepare trading and profit and loss account for the year ending 31​^st​ December, 1999 and a balance sheet as at that date.

www.learninghubtz.co.tz