TANZANIA HEADS OF ISLAMIC SCHOOLS COUNCIL
FORM FOUR INTER ISLAMIC MOCK EXAMINATION
062 BOOK KEEPING
(For Both School and Private Candidates)
Time: 3 Hours Tuesday, 13th September 2022 a.m.
Instructions
SECTION A (20 Marks)
Answer all questions in this section
1. For each of the items (i) – (xv) choose the correct answer from the alternatives and write its letter beside the item number in the answer booklet(s) provided.
(i) Muzuli is considering selling goods on credit to Mulunji but before the exchange, Muzuli was looking for Mulunji’s financial statements. Why does Muzuli look for Mulunji’s financial statement?
(ii) An insurance account shows an amount paid during the year TZS 200,000/= and prepayment at the end of the year TZS 40,000/=. Which amount appears in the insurance account to record the transfer to the Income statement?
(iii) You are to buy an existing business which has assets valued at: Building TZS 50,000/- motor vehicle TZS 15,000/- fixture TZS 5,000/- and Inventory TZS 40,000/-
You are to pay TZS 140,000/- for the business. This means that:
(iv) Naomi a sole trader owns business premises near Ubungo Plaza. Which among the following expenditures she has to consider as revenue expenditure on premises?
(v) Given figures showing: Sales 8200/= opening inventory 1300/=, closing inventory 900/= purchases 6400/= carriage on purchase 200/= the cost of goods sold figure is:
(vi) Majumba pays his trade creditor by cheque. How does this affect a statement of financial position?
(vii) All statements below are true about Kazukamwe’s business whose records are incomplete except:
(viii) Given a desired cash float of TZS 200,000 if TZS 146,000 is spent in the period, how much will be reimbursed at the end of period?
(ix) Given a purchases invoice showing five items of TZS 8000 each. Less trade discount of 25 percent and cash discount of 5 percent. If paid within the credit period. Your cheque would be made out for:
(x) What type of error is committed when an invoice of TZS 86,000/= is entered in the purchases journal as TZS 68,000/=?
(xi) A book keeper has just finished compiling a trial balance whose debits and credit columns have not agreed. Which of the following would provide a temporary shelter for the difference?
(xii) Given a factory raw material used amounted 4000/= manufacturing wages 1200/= and other direct expenses 400/= what would be the prime cost of the goods produced?
(xiii) Jamal sent to Jamila 10 gallons of cooking oil on consignment basis, one gallon costing 25000/=. Jamila will be considered as:
(xiv) Credit purchases of goods from Masha amounted 50,000/=. How would be recorded in the books.
(xv) An authority granted by the Minister of Finance and planning to transfer approved funds from one vote to another.
2. Match the explanation of types of Audit in Column A with the correct type of Audit in Column B by writing the letter of the correct response beside the item number in the answer booklet(s) provided.
COLUMN A | COLUMN B |
(i) An independent examination of the statement of financial position to verify its items. (ii) Aims at detecting potential problems in the organization that affect its performance. (iii) An independent examination of financial statements as required by stakeholder such as owners or any other parties. (iv) An examination of procedures of an organization for reliability and accuracy. (v) An audit that is conducted during the financial year as per the client’s requirement. |
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SECTION B (40 Marks)
Answer all questions in this section
3. Mr. Bungoma, an English language teacher at Kibohehe Secondary School seems to use the terms book-keeping and accounting interchangeably. Give four (4) points to explain to him on how you would help him on his problem.
4. Wakishua started business last week and bought goods from various suppliers. He is now planning to return some goods to some of his suppliers. What may be the possible reasons for this situation? (5 points)
5. The following details were extracted from the books of Munene sole trader for the month ended 31 March 2021:
Debit balances on the sales ledger at 1st March | TZS 632,000/= | |
Credit balance on the sale ledger at 1st March | TZS 11,000/= | |
Sales on credit for month | TZS 519,000/= | |
Sales returns | TZS 7,000/= | |
Cash received from debtors | TZS 467,000/= | |
Discount allowed | TZS 21,000/= | |
Refunds to customer (by cheque) | TZS 3,000/= | |
Sales ledger items settled by contra | TZS 7,000/= | |
Balance extracted for the 31st March | Debit | TZS 644,000/= |
Credit | TZS 3,000/= |
Required:
From above information construct respective ledger and show the balances for next month.
6. The following is a summary of a cash book as presented by Shebila Co Ltd for the month of October
Cash book (Bank Column)
| TZS |
| TZS |
Receipts | 14690 | Balance b/d | 7610 |
Balance c/d | 5540 | Payment | 12620 |
| 20230 | | 20230 |
All receipts are banked and all payments are made by cheque. On investigation we discover the following:
(a) Bank charges of TZS 1360 entered on the bank statement have not been posted in the cash book.
(b) Cheque drawn amounting to TZS 2670 had not been posted and presented to the bank for payment.
(c) Cheque received totaling TZS 7620 had been entered in the cash book but not credited in the bank statement until 3rd November.
(d) A cheque for TZS 220 for sundries expenses had been entered in the cash book as receipt instead of payment.
(e) A cheque received from Kipangala for TZS 800/= had been returned by the bank and marked, “no funds available”
(f) A standing order for a business rates installment of TZS 1500/= on 30th October had not been entered in the cash book.
(g) All dividends received are credited directly to the bank account. During the month of October amount totaling TZS 420/= were credited by the bank but no entries were made in the cash book and also credit transfer of TZS 200/=.
(h) A cheque drawn for TZS 660/= for stationery had been incorrectly entered in the cash book as TZS 600/=.
(i) The balance brought forward in the cash book should have been TZS 7110/= not TZS 7610/=.
Required:
(i) Write updated cash book.
(ii) Prepare a bank reconciliation statement for the month of 31st October.
SECTION C (40 Marks)
Answer only two (2) questions in this section
7. (a) The financial year of Sheila Co. Ltd ended on 31 December 2016. At 1st Jan 2016 she had in use equipment with a total accumulated cost of TZS 135,620/= which had been depreciated by a total of TZS 81,374/=.
During the year ended 31 December 2016 Sheila Co. Ltd purchased new equipment costing for TZS 47,800 and sold off equipment which had originally cost 36,000/= and which had been depreciated by TZS 28,224/= for TZS 5700/=.
Sheila Co. Ltd is to depreciate its equipment at rate of 40% p.a. using the diminishing balance method.
A full year depreciation is provided for all equipment in use at the end of the year.
Required:
Show the following leger accounts for the year ended 31st December 2016
(i) The equipment account
(ii) The provision for depreciation on equipment
(iii) Equipment disposal a/c.
(b) From the following particulars relating to Taifa Jogging Club, prepare a receipt and payments account for the year ended 31st March 2015.
Opening cash balance | 820,000 |
Sales of old sports material | 120,000 |
Donations received for building | 460,000 |
Subscription | 900,000 |
Sales of refreshment | 10,000 |
Entrance fees received | 100,000 |
Salaries paid | 36,750 |
Tournament expenses | 28,250 |
Furniture purchased | 7,000 |
New sport materials bought | 12,000 |
Office expenses | 85,000 |
Purchase of refreshment | 18,000 |
Rent | 150,000 |
Expenses for maintenance of playground | 556,000 |
8. The following trial balance was extracted from the book of Kibamba Enterprises on June 30th 2020.
| DR. | CR. |
Drawing/capital | 800 | 5000 |
Machinery | 2600 | - |
Debtor/Creditor | 1500 | 3100 |
Cash at bank | 4200 | - |
Carriage on purchase | 600 | - |
Carriage on sales | 400 | - |
Discounts | 500 | 900 |
Returns | 700 | 500 |
Insurance | 1600 | - |
Medical expenses | 1800 | - |
Taxes | 1300 | - |
Rent | 2100 | - |
Stock 30.5.2019 Dept H | 900 | |
Stock 30.5.2019 Dept I | 600 | |
Furniture | 1400 | |
Purchase/sales Dept. H | 7800 | 11200 |
Purchase/sales Dept.I | 9200 | 14,600 |
Mortgage loan | - | 2700 |
38,000 | 38,000 |
NOTE:
(a) - Stock 30/6/2020 Dept H -1100
- Stock 30/6/2020 Dept I - 900
(b) During the year goods costing 1200 were transferred from Dept. H.
(c) Medical expenses are outstanding by 200/=.
(d) Expenses and incomes should be apportioned to departments on the following basis:
(i) Rent – according to floor space.
(ii) Medical expenses - number of employees.
(iii) Rest - equally.
Required:
Prepare department income statement for the year ended 30th June 2020 and statement of financial position as on that date.
9. Kaka and Dada both are famous sellers of dates. They decide to put their talents and skills to mutual commercial advantages during the Ramadhan. They therefore entered a joint venture to sell dates and share profit and losses equally after allowing 10% commission on sales made by each individual before a certain divisible profit and losses. The transactions for the joint venture were summarized as follow:
Kaka | Dada | |
Dates bought for sales | 600,000 | 500,000 |
Transport paid | 13,000 | 13,750 |
Dates sold for cash | 919,800 | 841,800 |
Advertising | 2,900 | 3,200 |
Additional information:
(i) There were no Accrual in respect of expenses and income.
(ii) Kaka failed to sell some of the dates and took them at agreed value of TZS 150,000/=.
Requried: Prepare
(a) A joint venture account in books of both parties.
(b) The memorandum joint venture a/c.
LEARNINGHUBTZ.CO.TZFORM FOUR BKEEPING REGIONAL SERIES-82 YEAR-2022
THE UNITED REPUBLIC OF TANZANIA PRESIDENT’S OFFICE, REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT
MWANZA REGION JOINT EXAMINATION (BUTIMBA, NYEGEZI AND MKUYUNI WARDS)
FORM FOUR PRE - MOCK EXAMINATION-2021
033/1 BOOK-KEEPING
Time: 3 Hours MAY, 2021
Instructions
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 beside the item number in the answer sheet provided
(i) If sales is 20,000 and profit make up is 25%, determine the amount of cost price
(ii) Which book of prime entry records the sale or purchase of non-current Assets?
(iii) If cash sale amount to Tshs 100,000/= paid direct into the bank account, the correct double entry will be to
(iv) How much is to be reimbursed if a petty cashier has spent Tsh.189,00/=while his cash float is Tsh.200,000/=
(v) Working capital is a term meaning.
(vi) Natasha and Ndengwe share profits and losses in the ratio 3:2. Their partnership recorded net profits of shs. 1,400, interest on capital shs. 420, partners’ salaries shs. 100 and drawings shs. 280, Determine Ndengwe’s share of the profits.
(vii) From the following categories of errors, identify the category of errors which affect only one account
(viii) In the business of C. Sangster, who owns a clothing store, which of the following is the capital expenditure?
(ix) Manufacturing account is used to calculate:
(x) Depreciation can be described as the : _______
(xi) A bank reconciliation statement is a statement:
(xii) If two totals of trial balance do not agree, the difference must be entered in:
(xiii) The accounting equation is expressed in the financial statement called:
(xiv) If we take goods for own use, we should
(xv) if a partnership maintains a fixed capital account, then the partner’s share of profits is:
2. For each of the items (i)-( v) match the narrations of bank reconciliation 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 sheet provided
COLUMN A | COLUMN B |
(i) these are payments made by a firm or person through cheque but they are not yet sent by customers to the bank to effect those payments. (ii) These are payments received by a firm or person by cheque but they are not yet passed through the banking system. (iii) These are fees deducted by the bank for different services made on the current account. (iv) These are payments made by the customer firm direct to the bank account of supplier firm. (v) These are payments directed by the account holder to be made by the bank on his behalf. |
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SECTION B (40 MARKS)
Answer all questions in this section.
3. In 1991 Mr. Chipepeto bought a motor car for the cost value of sh.8, 000,000/= with the aim of assisting him in business. But three years later he decided to dispose it for a book value of sh.6,700,000/=
4. The DSM Rotary club, has provided you with the following information:-
As at 31st December | 2000 | 2001 |
Subscription in arrears | 6400 | 8800 |
Subscription in advance | 1200 | 3400 |
Subscription during the year | - | 20,200 |
Insurance expenses owing (in arrears) | 3700 | 2700 |
Insurance expenses prepaid (in advance) | 4400 | 5200 |
Insurance paid during the year | - | 16,800 |
Required: Prepare A Subscription account and Insurance account, clearly showing amounts to be transferred to income and expenditure accounts for year 2001.
5. Define the following terms
6. (a) Mr Kyamba wants to start a business, but before commencement he needs to learn book keeping. Outline five objectives for him to study book keeping.
(b) Briefly explain three types of a cash book.
SECTION C (40 MARKS)
Answer two questions only from this section.
7. Panguso& company limited own a manufacturing industry which had the following records for the year ended at 31st December 2007.
You are required to prepare
8. XY 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 year of sale/disposal.
Financial statements are prepared annually to 31th December.2015
Prepare;
9. The financial of the GGM trading company ended on 30th November 2014. You have been asked to prepare a total amount receivable and total amount payable for the draft final amounts. You are able to obtain the following information for the financial year the book of original entry.
Sales
Purchase
Total receipts from customers 600,570
Total payment to suppliers 503,970
Discount allowed to credit customer 5,520
Discount received from credit suppliers 3,510
Refund given to cash customers 5,070
Balance in sales ledger setoff against balance in the purchase ledger 700
Bad debt written off 780
Increase in the allowance for doubtful debts 900
Credit note issued to credit customers 4,140
Credit note received from credit suppliers 1,480
According to the audited financial statement for the previous year account receivable and account payable as to 1st December 2013 were 26,550 and 43,450 respectively
Required;
Draw up the relevant total accounts entering end of year total for account receivable and account payable.
LEARNINGHUBTZ.CO.TZFORM FOUR BKEEPING REGIONAL SERIES-64 YEAR-2021